1. SOUTH AFRICAN HERITAGE RESOURCES AGENCY
DEPARTMENT OF ARTS AND CULTURE
9/20/2017
SOUTH AFRICAN HERITAGE RESOURCES AGENCY
DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 03/10/2017
A total of 68%

2. PRESENTATION OUTLINE ALIGNMENT TO DAC GOALS PERFORMANCE OVERVIEW
THREE YEAR PERFORMANCE OVERVIEW
THREE YEAR STATEMENT OF FINANCIAL POSITION
THREE YEAR INCOME AND EXPENDITURE TRENDS
ANALYSIS OF CASH AND CASH EQUIVALENT
AUDIT OUTCOMES
GOVERNANCE
CHALLENGES AND INTERVENTIONS

3. ALIGNMENT TO DAC GOALS DAC outcome oriented goal
DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2017/18
A professional and capacitated ACH Sector
To build human resource capacity and promote excellence
Assert SAHRA’s role as a regulatory body in heritage resources management.
Number of Policies, Regulations, norms and Standards approved
A SAHRA business model approved by Council.

4. ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2017/18
An integrated and inclusive society.
To lead, coordinate and implement social cohesion programme.
Strengthen SAHRA as an agent to promote social cohesion and social upliftment through heritage resources management.
Number of heritage Sites inspected
Percentage of nominated heritage resources graded
Percentage of heritage resources re-assessed and graded
Number of heritage resources declared

5. ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2017/18
A transformed and productive ACH Sector
• To develop, protect and promote the cultural and creative sector
• To develop, preserve, protect and promote heritage
• To develop and promote official languages
• To build relationships and partnerships locally and internationally
• To provide access to information
Build SAHRA’s brand internationally and locally through public awareness
Align SAHRA’s initiatives to national socio-economic and developmental objectives through identification, conservation, protection and promotion of Heritage Resources.
Number of Publications/ Papers on the heritage resources management developed
Number of marketing programmes Implemented

6. ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2017/18
Number of Community and Stakeholder workshops/meetings to promote the significance of heritage resources
Approved CSI Policy and implementation strategy
Number of MOU’s and or Partnerships with identified Strategic Institutions

7. ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2017/18
An effective and efficient ACH Sector.
To create a coherent policy and legislative environment for the ACH
Sector
• To drive integrated outcomes-based research, planning, monitoring
and evaluation across the Sector
• To implement sound financial management and control systems
• To strengthen and modernize archives and records management
Systems.
Maximise Immovable Heritage Assets for income generation
Implement effective and efficient corporate governance systems within SAHRA
Number of projects implemented in the Property Maximization strategy
Percentage compliant invoices paid within 30 days
Unqualified Audit Report
Review of the ICT Strategy

8. PERFORMANCE OVERVIEW (2016/17 financial year)

9. THREE YEAR PERFORMANCE OVERVIEW
DEPARTMENT OF ARTS AND CULTURE
9/20/2017
THREE YEAR PERFORMANCE OVERVIEW
2014/15
2015/16
2016/17
Achieved
80%
81%
68%
Not achieved
20%
19%
32%
**a total 68% of the targets were achieved in the year under review. A substantial part of the business development that the Entity does is on behalf of the Provincial Heritage Resources Authorities (PHRAs). Thus, the effectiveness of SAHRA’s performance is compromised until the PHRAs have been capacitated and SAHRA is able to entrust them with this work.
A total of 68%

10. THREE YEAR STATEMENT OF FINANCIAL POSITION
SAHRA
2014/15
2015/16
2016/17
R’000
Current Assets
78 976
60 313
35 708
Non-Current Assets
77 502
76 791
Total Assets
Current Liabilities
8 611
6 540
8 720
Total Liabilities
16 442
14 507
16 531
Net Asset Value (NAV)
95 968

11. THREE YEAR INCOME AND EXPENDITURE TRENDS
SAHRA
2014/15
2015/16
2016/17
R’000
Income
52 459
79 080
55 552
Government Grant
46 581
73 830
51 141
Other Income
5 878
5 250
4 411
Expenditure
52 137
93 874
82 892
Surplus / (Deficit)
322
(14 794)
**(27 340)
**The deficit is attributable to significant overspending on the side of SAHRA. The entity expenditure for the 2016/17 financial year is in excess of the revenue by 48%. The major cost drivers are salaries and benefits as well as general expenses (Goods and Services).

12. ANALYSIS OF CASH AND CASH EQUIVALENTS
SAHRA
2014/15
2015/16
2016/17
R’000
Cash and Cash Equivalents
77 560
33 830
33 949
Add: Trade and other receivables
524
600
885
Less: Current Liabilities
(8 611)
(6 540)
(8 721)
Less: Commitments
(3 381)
(18 236)
(3 750)
Net Working Capital/Surplus Funds
66 092
9 654
**22 363
**This comprises of mainly funds received from third parties linked to specific projects. Current commitments amount to R Detailed break-down is reflected on note 4 of the 2016/17 Annual Report.

13. AUDIT OUTCOMES SAHRA 2014/15 2015/16 2016/17 Audit Outcome Unqualified
* SAHRA has reported an irregular expenditure of R49 million that relates to the contract awarded to the service provider in 2015 for the rehabilitation of Delville Wood memorial in France which was condoned by the previous council.

14. GOVERNANCE 2014/15 2015/16 2016/17 2017/18 Number of Council members11 12
Number of Council meetings 20 16 3
Number of Council committee meetings 22 9
Attendance rate of Council meetings
95%
98%
99%
Number of Audit Committee meetings 6 2
Number of Management meetings 4
Number of Staff meetings 1 .

15. CHALLENGES AND INTERVENTIONS
Details
Implications for the institution (financially or otherwise
Possible amelioration
Council: Remuneration Airfares & Bus Tickets Accommodation & Meals
SAHRA had benchmarked with other DAC Entities who are paying Council preparation fee and a fee for a meeting sitting. SAHRA does not pay for preparation fee hence the decision to pay Council fees Category S and A for the Committees.
Current Council Budget - is R1 240m, refer to the breakdown below:
Travel (R360 000),
Accommodation (R132 000),
Council fees (R600 000),
Telephone & Fax (R52 800),
Catering (R95 000).
The Council Annual Planner stipulates clearly the number of meetings to be held per year as they are aligned to the DAC key deadlines.
Historically the SAHRA Council was on Pro - Bono. In the 2012/13 financial year it was then resolved that Council must be paid for meetings. This decision was implemented without additional funds being allocated from DAC.
Currently the budget is not adequate to cover the operations of the Council. There is over-expenditure even though stringent measures have already been undertaken to reduce the number of meetings and travelling costs. The Department is considering this matter for all Councils of the DAC institutions

16. CHALLENGES AND INTERVENTIONS
Details
Implications for the institution (financially or otherwise
Possible amelioration
Council: Provincial Representatives
SAHRA Council does not have provincial representation from KwaZulu-Natal Province and the Northern Cape as provided for by the Act.
This is in contravention of the National Heritage Act which requires that Provincial MECs must appoint these representatives to the Council.
Communication and a number of reminders were sent to the two provinces but not response has been received.

17. CHALLENGES AND INTERVENTIONS
Details
Implications for the institution (financially or otherwise
Possible amelioration
Management: The CEO is on suspension
Due to ongoing investigation into allegations among others matters the implementation of a project to construct a memorial at Delvillewood in France and the rehabilitation of grave sites in South Africa, Council resolved to place the Chief Executive Officer on precautionary suspension pending the outcome of the investigation.
Stability of the entity is affected by the absence of the Accounting Officer, and the appointment of an Internal Executive in an Acting position.
To deal with instability issues in the organisation, Council further resolved to appoint one of the Board members as Interim Chief Executive Officer.
Annual Cost of Living Adjustment (COLA)
SAHRA can not afford the demands of the Unions for the COLA. Current percentage offered by SAHRA is 5,6%. Unions have declared a dispute with the employer.
A possibility of an industrial action.
SAHRA is moving to implement the 5,6% unilaterally

18. DEPARTMENT OF ARTS AND CULTURE
9/20/2017
THANK YOU
A total of 68%