1. NATIONAL HERITAGE COUNCIL
DEPARTMENT OF ARTS AND CULTURE
5/21/2018
NATIONAL HERITAGE COUNCIL
ACTING DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 15/11/2016

2. PERFORMANCE OVERVIEW

3. THREE YEAR PERFORMANCE OVERVIEW
2012/13
2013/14
2014/15
2015/16
Achieved
77%
96%
89%
88%
Not achieved
23% 4%
11%
12%

4. INCOME AND EXPENDITURE TRENDS
2013/14
2014/15
2015/16
R’000
Income
55,738
65,838
63,853
Government Grant
52,714
55,917
58,475
Own Income
3,024
9,921
5,378
Expenditure
74,984
57,934
60,033
Surplus/Deficit
(19,246)
8,004
1,820

5. AUDIT OUTCOME NHC 2012/13 2013/14 2014/15 Audit Outcome
Unqualified with findings

6. SELECTED AUDIT FINDINGS
Thirty one percent of the NHC’s performance indicators were not well defined.
Three tenders amounting to R were awarded to service providers without obtaining the necessary price quotations.
The National Heritage Council did not follow the Supply Chain Management prescripts resulting in the entity incurring Irregular Expenditure amounting to R
Financial Viability: current liabilities of the NHC are in excess of the current assets by R This may negatively affect the entity’s ability to settle its short term claims when they become due.
National Heritage Council did not make provision for Contingent Liability relating to the dismissed employee. The entity is currently challenging the decision of the Commission for Conciliation and Arbitration pertaining to reinstate the employee involved at the Labour Court.

7. GOVERNANCE STRUCTURE STATUS Council
The Council of the National Heritage Council is fully constituted as at 6 September 2016.
Management
Chief Executive Officer
Chief Financial Officer
Appointed.

8. GOVERNANCE…
NHC
2013/14
2014/15
2015/16
2016/17
Number of Council members 13 10 15
Number of Council meetings 5 6 4 2
Number of Council committee meetings 11 1
Attendance rate of Council meetings
62%
67%
75%
Number of Audit Committee meetings 7
Number of Management meetings 14
Number of Staff meetings 3

9. CHALLENGES AND INTERVETIONS
INTERVENTIONS BY DAC
Uncertainty regarding the implementation of the recommendations of the Forensic Investigation conducted by the Special Investigating Unit (SIU) on Irregular Expenditure incurred by the NHC.
The Department is receiving an independent legal opinion on the matter.
Weak Financial Position (Balance Sheet) of the NHC.
The Department brought the matter to the attention of the NHC through quarterly feedbacks. The progress on the implementation of financial controls to reduce the short term liabilities to manageable levels will be monitored in the 2016/17 financial year.
Inadequate number of Provincial Representatives on the Council of the NHC. Currently, the Northern Cape and Free State Provinces are not represented.
DAC to include the matter on the agenda of the MinMEC for discussion with a view to have all provinces represented in the Council.

10. DEPARTMENT OF ARTS AND CULTURE
5/21/2018
THANK YOU