1. NFVF ANNUAL REPORT 2016/17 PRESENTATION

2. Table of Contents The Enabling Legislation
Mandate, Goals, Vision and Mission.
Strategic Overview
Governance matters
Executive Management
Financial Position
Financial Performance
Revenue and Expenditure (performance against budget)
Non- financial Performance
Audit Outcomes 2

3. Enabling Legislation
National Film and Video Foundation Act 73 of 1997 as amended by the Cultural Laws Amendment Act 36 of 2001.
NFVF is a Schedule 3A Public Entity in terms of the PFMA. 3

4. Mandate Section 3 of the NFVF Act sets out the mandate as follows:
To promote and develop the film and video industry
To provide and encourage the provision of, opportunities for persons, especially from disadvantaged communities, to get involved in the film and video industry
To encourage the development and distribution of local film and video products
To support the nurturing and development of and access to the film and video industry
To address historical imbalances in the infrastructure and distribution of skills and resources in the film and video industry 4

5. Vision: Mission: Vision & Mission
To be a leader towards a sustainable audio-visual content* industry that represents the nation’s aspirations and celebrates our diversity.
Mission:
To collaborate with all stakeholders to enable the development and promotion of a transformed and thriving South African audio-visual content industry.
* Audio-visual = All film (content transmitted through various platforms, e.g cinema, television, online, and other digital means), television, etc. excluding Music Videos, Reality TV, adult content, etc. 5

6. Unique Value Proposition
Leader
Enabler
Development funding
Training
Leveraging production funding
Facilitating international productions
Global exposure and positioning 6

7. Strategic Overview Strategic Outcome Oriented Goals
Increase number of people trained in the industry, particularly in areas of scarce skills
Develop appropriate policy interventions for the South African film industry
Increase number of South African films produced and PDI’s producing them
Promote the South African Film Industry locally and internationally
Fulfil statutory and governance obligations of the NFVF as set out in relevant legislation 7

8. Governance Accounting Authority
In terms of section 6 of the Act, the NFVF functions under the guidance of a Council, appointed by the Minister of Arts and Culture. The Council bears primary responsibility for discharging the statutory mandate of the NFVF as set out in the Act. The Chief Executive Officer, management and staff exist to support the Council in executing its responsibilities.
The role of the Council is to:
carry out its statutory mandate under the Act;
define and ensure compliance with the values and objectives of the NFVF;
establish policies and plans to achieve those objectives;
approve each year’s strategic and annual performance plan, budget and annual financial statements prior to publication. 8

9. Governance Audit Committee The Audit Committee has:
reviewed and discussed the audited annual financial statements of the NFVF to be included in the annual report, with the Auditor-General and the Accounting Officer;
reviewed the Auditor-General’s management letter and management’s response thereto;
reviewed changes in accounting policies and practices
reviewed any significant adjustments resulting from the audit
The committee is satisfied that the financial statements comply, in all material respects, with the requirements of the PFMA, 1999, as amended, and South African Statements of Generally Recognised Accounting Practice (GRAP). 9

10. Executive Management 10 NFVF Council CEO Ms Zama Mkosi Son
Head: Production & Development Ms Joy Mawela
Head: Policy & Research Ms Aifheli Makhwanya
Head: Marketing & Communications Mr Peter Kwele
Head: HR &Centralised Services Ms Matlhodi Ngwenya
Chief Financial Officer Ms Karen
Son
NFVF Council
CEO
Ms Zama Mkosi 10

11. Annual Financial Statements
Statement of Financial Position
Assets March March 2016
R’ R’000
Non Current Assets
Current Assets
Total Assets
Liabilities
Non Current Liabilities
Current Liabilities
Total Liabilities
Net Assets
Accumulated surplus
Total Net assets and Liabilities 11

12. Annual Financial Statements
Statement of Financial Performance
Revenue
Actual Budget Variance
R'000 R'000 R'000
DAC – annual allocation
DAC – other projects
Partnerships
Recoupments
Other
Investment income
Total Revenue 12

13. Annual Financial Statements
Statement of Financial Performance
Revenue – Explanation of variances
DAC :Other projects – The NFVF has received a conditional grant for the Film Hubs Infrastructure Project.
Partnerships – These relate to agreements with other stakeholders for projects and other events, eg KZNFC for Cannes; GE Media, Ster -Kinekor ,M Net & SABC for SAFTAs, SABC & NYDA for the Youth Filmmaker Project.
Gauteng & Durban Film Office also contributed towards DISCOP.
NFVF received R from the MICT Seta for the bursary and internship partnership agreement.
Recoupments – Funds are received following films Khumba, Happiness is a four letter word, Love the one you Love & I Number Number
Other – MICT mandatory grants and sale of SAFTA tickets. 13

14. Annual Financial Statements
Statement of Financial Performance
Expenditure
Actual Budget Variance
R'000 R'000 R'000
Training & bursaries (18 199)
Development & production (5 336)
of content
Research projects (2 565)
Local & Global Positioning (14 079)
Administration ( 1 295)
Total Expenditure (41 474) 14

15. Annual Financial Statements
Statement of Financial Performance
Expenditure – Explanation of variances
Grant Expenditure: The variance was sourced from sponsorship and partnership agreements entered into with various stakeholders. R31.4million of revenue received from stakeholders.
Administration Expenditure:
Travel costs increased due to the attendance of important meetings i.e Portfolio committee meetings, MEC meetings, panel meetings & workshop travel.
The increase in applications receive directly impacted on costs relating to panellist fees, printing and courier costs.
Computer expenses increased due to software renewals, support calls & internet costs. 15

16. Non- financial performance
Training and skills development
Planned Target
2016/17
Actual Achievement
Deviation from planned target to Actual Achievement 2016/17
Comment on deviations
64 bursaries awarded p.a
166 bursaries approved by Council 
102 more than target
NFVF MICT Seta partnership provided for additional funding to fund extra bursaries
Place 20 interns p.a
80 interns placed
Overachieved by recruiting 60 additional interns
NFVF MICT Seta partnership provided for additional funding to fund extra interns
3 Training Initiatives funded p.a   
2 Sediba Programmes p.a
3 Mentorship Programmes p.a 
1 Schools Programme p.a
2 Training Companies Funded
2 Sediba Programmes
3 Mentorship Programmes
1 Schools Programme
Under Achieved by 1
N/A
Applicants did not meet the accreditation requirements * 16

17. Non- financial performance
Policy & Research
Planned Target
2016/17
Actual Achievement
Deviation from planned target to Actual Achievement 2016/17
Comment on deviations
4 Research publications per annum
4 Research Publications
N/A
3 policies approved by Council.
4 Policies
1 Additional Policy was drafted
The information manual was drafted inorder to address internal audit concerns to ensure that the NFVF has an information management policy
Certify 90% of all applications received
100%
All applications received met the requirements
There were no rejections or withdrawals on any application
3 Co-production activations p.a
4 Co-production Activations * 17

18. Non- financial performance
Production & Development of Content
Planned Target
2016/17
Actual Achievement
Deviation from planned target to Actual Achievement 2016/17
Comment on deviations
66 projects funded in development p.a.   
38 projects funded in production p.a.
1 Women filmmaker slate funded annually
80 projects funded in development
52 projects funded in production
1 Female Filmmaker slate funded
14 more than target
N/A
More projects were funded because some applicants requested less than the maximum allocation per project. * 18

19. Non- financial performance
Production & Development of Content (cont…)
Planned Target
2016/17
Actual Achievement
Deviation from planned target to Actual Achievement 2016/17
Comment on deviations
 1 First time / Youth filmmakers slate funded annually
1 fiction slate funded p.a   
1 animation slate funded p.a
1 documentary slate funded p.a
1 First time / Youth filmmakers slate funded annually
3 fiction slates funded
   
1 animation slate funded
  1 documentary slate funded p.a
N/A
2 more than target
 N/A
More than 1 slate funded because of the high quality standard of the proposals. * 19

20. Non- financial performance
Marketing and Distribution
Planned Target
2016/2017
Actual Achievement
Deviation from planned target to Actual Achievement 2016/2017
Comment on deviations
Attend & activate at 7 International Festivals p.a.
 Attend 3 New Markets for SA content p.a.
Attended 7 International Festivals p.a   
Attended 3 New Markets to promote SA content
N/A 
N/A
7 grants awarded p.a. to National Festivals
11 Grants Awarded to national Festivals
Funded 4 more than target
Funded more festivals in previously underserviced regions: eg, Inaugural Ekhuruleni Film Festival, North Coast Film Festival, Limpopo Film Festival, Black Filmmkaers Film , Monthly PE screenings & 48hr Film Project
7 Festival Activations p.a
Implemented 13 Festival activations, 2 Career Expos & 4 National Day Programmes
Activated 6 more Festivals than target, 2 Career Expos & 4 National Days
2 Career Expos (The Glen Career Expo,Durban Career Expo) & 4 National Days (Youth month, Mandela Day, Womens Day & Heritage Day)
4 Brand Activations p.a
5 Below the Line Brand Activations
1 Additional Below the Line Brand activation
Below the Line brand activation for the promotion of Mrs Right Guy’s release
SA Film and TV Awards
The planning, organising & hosting the SAFTAs event that was broadcast on SABC 2 and Mzansi Magic
Fund 50 filmmakers p.a to attend Markets & Film Festivasl
Funded 85 filmmakers to attend markets and film festivals
Funded 35 more than target
Not all applicants applied for or were granted the R29,000 funding cap & more filmmakers were invited to screen their productions as part of the “Official Programme” * 20

21. Non- financial performance
Marketing and Distribution (cont…)
Planned Target
2016/2017
Actual Achievement
Deviation from planned target to Actual Achievement 2016/2017
Comment on deviations
Quarterly engagement fora with stakeholders
NFVF held 6 quarterly engagement fora with stakeholders instead of 4
Held 2 more engagement fora with stakeholders
NFVF Overachieved due to invites/requests that were not identified fora i,e Mpumalanga Provincial Government who requested an engagement on film matters as well as SASFED who requested engagements on specific matters.
1 DAC Activation pa
1 DAC activation during Africa Month
N/A
Quarterly Communication
Implemented Quarterly Communication of NFVF programmes to external stakeholders
1 Digital Platform for SA film industry implemented
Development of the VoD Platform
10 Marketing & Distribution grants awarded p.a
12 Marketing and Distribution projects funded
Funded 2 more than target
Not all applicants applied for or were granted the maximum funding cap * 21

22. Non- financial performance
Administration and Human Resources
Planned Target
2016/2017
Actual Achievement
Deviation from planned target to Actual Achievement 2016/2017
Comment on deviations
Reporting quarterly, bi-annually and annually
Quarterly Reports submitted to DAC, National Treasury and Council
N/A
Monthly management accounts
Monthly management accounts prepared
Conduct an annual risk assessment workshop
Risk assessment workshop was conducted in Feb 2017
4 internal audits annually
5 Audits completed for the year
1 more than target AoPo * 22

23. Non- financial performance
Administration and Human Resources (cont…)
Planned Target
2016/2017
Actual Achievement
Deviation from planned target to Actual Achievement 2016/2017
Comment on deviations
Implement PMS
PMS fully implemented
N/A
6staff are trained
20 staff trained
14 additional staff members trained
More staff trained due to them requesting courses that were less than what was budgeted for hence more staff could be trained.
Compliance with legislation
Annual HR policies and procedures workshop
Implement approved structure
Annual salary increases approved by Council & implemented * 23

24. Non- financial performance
Administration and Human Resources (cont…)
Planned Target
2016/2017
Actual Achievement
Deviation from planned target to Actual Achievement 2016/2017
Comment on deviations
Implement PMS
PMS fully implemented
N/A
6staff are trained
20 staff trained
14 additional staff members trained
More staff trained due to them requesting courses that were less than what was budgeted for hence more staff could be trained.
Compliance with legislation
Annual H policies and procedures workshop
Implement approved structure
Annual salary increases approved by Council & implemented * 24

25. Audit Outcomes
The NFVF achieved an unqualified opinion for the 2016/17 financial year. 25

41. Staff Issues Key issues raised by staff: Salary Levels Work load
KPA’s and Job Description
Staff Training
Retention and Succession planning
Annual leave
Staff role in internal policy development
CEO established internal Special Task Team
HR Committee oversight 41

42. Employee Concerns Addressed
DESCRIPTION
ACTION TAKEN
13TH Cheque
Payment dates and impact on tax.
Explained to staff that no tax benefit in split payment. 
Staff voted and management agreed to split payment. 
Option of advance volunteer tax payment communicated to all staff.
Payment of Bonus Amount
Split payments of bonus amounts, individual one after year end and organisational one after audit.
Rationale for one payment explained to staff.  
Pay slips amended to show bonus amount. 
2016/17 performance bonus paid out after audit.
Annual Leave
2016 December closure negative impact on staff leave and not consulted.
Staff voted for 22 December 2017 – 2 January 2018, NFVF closure. 
December closure at CEO discretion on annual basis. 
After consultation with HR Comm and Council, CEO approved staff request for December 2017 closure.
Internal adverts
Staff to be given first preference with an internal recruitment process before external.
Internal adverts and staff-first-recruitment process implemented. 42

43. Employee Concerns Addressed
DESCRIPTION
ACTION TAKEN
Allocation of Resources
Staff who need resources to perform work not provided. 
Audit of resource allocation was done by HOD’s and all qualifying staff were provided with resources. 
Policy and process of resource allocation shared with staff. 
Staff who still have resource allocation issues invited for 1:1 meetings with CEO.  
1 staff met with CEO and issue resolved.
Innovation and Collaboration
The culture of innovation and collaboration not encouraged.
CEO Proposed Innovation Comm to staff. 
Staff preferred white board for ideas. 
Board has been acquired.
Interns Management
Internship Programme not effectively managed
Staff recommendations implemented.
International Travel
System currently unfair and not aligned to work plans.
CEO presented to staff the rationale and decision making process re international travel.
CEO final decision after recommendation from MANCO.
Input into MANCO’s recommendation from the Project Management meeting including HOD’s and Managers. 43

44. Employee Concerns Addressed
DESCRIPTION
ACTION TAKEN
Premier invites and tickets
These not allocated equitably
To be centralized through HOD's.
Wellness Company
Staff would like an independent third party to counsel on issues.
Wellness service provider appointed.
Salary scales
No clarity on salary bands. 
Salaries not aligned to market.
Current salary bands information presented to staff.
NFVF giving each of the 5 below minimum staff additional increase per annum to align them over the period.
1:1 meetings held with each to explain above.
OD Service provider appointed for long term solution to – amongst other things, benchmark salaries for rest of staff and recommend compensation model. 44

45. Employee Concerns Addressed
DESCRIPTION
ACTION TAKEN
Moderation Comm
Staff feeling that process unfair and non-transparent.
Presentation done explaining rationale and process.
Communicated that staff won’t sit in at moderations committee.
MANCO undertaking to give detailed written feedback on final score.
Formula for organizational score calculation shared with staff.
Role of HR
In the event of conflict with manager, HR not helpful.
Presentation done to staff on role of HR. 45

46. Employee Concerns In Progress
DESCRIPTION
ACTION TAKEN
CTC
No understanding how it is composed.
Presentation made to staff explaining CTC definition.
Pay slips amended with more information re composition of CTC. 
 Presentation to staff by DAC, SARS, DPSA and National Treasury – 30/10/2017
Salary scales
No clarity on salary bands. 
Salaries not aligned to market.
Current salary bands information presented to staff.
NFVF giving each of the 5 below minimum staff additional increase per annum to align them over the period.
1:1 meetings held with each to explain above.
OD Service provider appointed for long term solution to – amongst other things, benchmark salaries for rest of staff and recommend compensation model.
OD Recommendations to December Council to be effective 1 April 2018
Performance Management System
PMS is out of date.
Details in the matrix should be in line with what is in the Performance Contract.
Review the number of Raters in relation to the levels.
How external stakeholder scores can be included.
To include a section for a narrative input vs just a point system, this to go to the Moderation Committee.
Presentation done to staff on rationale of current PMS.
Staff shown where current PMS already complies with their requests:
Matrix aligned to individuals KPA’s.
Raters aligned to position level of reporting.
Narrative included.
Communicated to staff that external stakeholders will not be part of individual PMS.
To investigate option of NFVF stakeholder survey to implement 1 April 2018. 46

47. Employee Concerns In Progress
ESS Leave System
Not accurate
IT Department reviewed the ESS system.
Challenges are a result of human element.
3 month trial period.
Communicated to staff the process and timelines for ESS input.
30 November review and 1 April 2018 if new system required and approved.
Policy Approval Process
Staff not consulted effectively
Staff inclusive policy review input framework being implemented.
Policy presentations done for staff to date.
Ongoing until March 2018 Council Policy Approval Meeting
Staff Representation
Staff representatives to sit at decision making bodies
Presentation made to staff on rationale and role clarification of the different levels of staff.
Communicated to staff that no staff rep at HR Comm.
Staff given permission to establish Employee Forum.
Project Management meeting structure established.
Standard department meeting agenda circulated.
 Employee Forum established by 30/10/2017
Succession Planning
Succession and Retention Planning and Personal Development Plan discussion
Presentation done where retention and succession policy was shared with staff.
Individual performance contracts inclusive of Personal Development Plan’s in place for each staff.
Internal preference given to staff for internal vacancies. 47

48. Employee Concerns In Progress
Confidentiality
Company and personal information being disclosed to third parties.
Presentation done on roles and responsibilities in event of breach of confidentiality.
Wellness Company appointed to attend to confidential staff issues.
External presentation on legal implications of breach of confidentiality and conflict of interest – 4 October 2017.
KPA’s
Day to day work being done over and above KPA’s.
OD Service Provider appointed.
OD Recommendations to December Council to be effective 1 April 2018
Work Load Allocation
Some teams are over stretched special projects affect work load.
 OD Recommendations to December Council to be effective 1 April 2018 48

49. Employee Concerns In Progress
Study Approval
Staff not approved to study when in interest of career growth and organisation to do so.
Policy, process and budget shared in a presentation to staff.
10 staff approved for training for 2017/18 F/Year.
NFVF allocate 2% of budget towards training.
To consider submitting request for additional staff study funding after the outcomes of the OD process – December 2017
Favouritism
Other departments being incentivised differently to others.
MANCO to adopt common approach regarding incentives and sharing of benefits to staff in compliance with NFVF Policies.
Ongoing
Staff Morale
This is low
Team Building efforts within policy and budget.
Women’s Day Event.
Spring Day and Heritage Day Celebrations.
1:1 Meetings with CEO
Wellness Service provider to facilitate team wellness workshops – 30 October 2017
Conflict of Interest
Staff wish to be allowed to do additional work and earn additional income.
Presentation done by internal and external service provider.
External presentation on legal implications of breach of confidentiality and conflict of interest – 4 October 2017.
Staff Forum
Staff granted permission to establish Employee Forum.
Staff submitted draft TOR’s for Employee Forum.
Meeting scheduled with NEHAWU to discuss recognition agreement – 15 October 2017 49

50. Ongoing Challenges Over stretched staff
Moratorium on additional positions
Flat structure = limited growth opportunities
Treasury cost cutting measures
Limited training budget
Limited salary adjustment opportunities
No team building and year end functions
DPSA standardisations of conditions of services 50