1. Acting Director-General Department of Arts and Culture
Briefing to the Portfolio Committee on the 2009/10 Annual Report of the Department of Arts and Culture
Ms Veliswa Baduza
Acting Director-General
Department of Arts and Culture
3 November 2010

2. Extract from President Zuma’s State of the Nation Address on 3 June 2009
“Since 1994 we have sought to create a united cohesive society out of our fragmented past. We are called upon to continue this mission of promoting unity in diversity and to develop a shared value system, based on the spirit of community solidarity and a caring society.
Our shared value system should encourage us to become active citizens in the renewal of our country. We must build a common national identity and patriotism”.

3. Extract from the Minister’s Budget Vote Speech, 19 June 2009
“Through all these initiatives and our work in arts,
culture and heritage we aim to create a country where
opportunities exist for all our people to expand their
imagination and to use their creativity to create a better
life for all.”

4. Table of Contents Purpose of presentation General Information
Programme Performance (highlights)
Report of the Audit Committee
Annual Financial Statements (AFS)
Human Resource Management 2

5. Purpose of the presentation
To brief the Portfolio Committee of Arts and Culture on the overall performance of the Department during the 2009/10 financial period.
To provide an overview of the activities in response to the constitutional and legislative mandate re. policies, programmes and corporate plans.
To solicit the Portfolio Committee’s inputs on the strategic interventions that may be required to fulfill the constitutional and legislative mandate in order to achieve the vision and mission of the department.

6. Constitutional Mandate and Vision of the DAC
The mandate of the department is derived from the Constitution of
the Republic of South Africa, including from the Preamble and
Founding Provisions.
Vision:
To develop and preserve South African culture to
ensure social cohesion and nation building.

7. Mission of the DAC
Develop and promote arts and culture in South Africa and mainstream its role in social development.
Develop and promote the official languages of South Africa and enhance the linguistic diversity of the country.
Improve economic and other development opportunities for South African arts and culture nationally and globally through mutually beneficial partnerships, thereby ensuring the sustainability of the sector.
Develop and monitor the implementation of policy, legislation and strategic direction for the identification, conservation and promotion of cultural heritage.
Guide, sustain and develop the archival, heraldic and information resources of the nation to empower citizens through full and open access to these resource.

8. Legislative mandate and programmes
The constitutional and legislative mandate of the DAC is broad – covering a
range of institutions and legislation which serves as a starting point for the
formulation of policies, plans and required systems for the proper execution of
the department’s strategy on a daily basis.
DAC Programmes:
Programme 1: Administration (Corporate Services)
Programme 2: Arts and Culture in Society
Programme 3: National Language Services
Programme 4: Cultural Development and International Co-operation
Programme 5: Heritage Promotion
Programme 6: National Archives, Records, Libraries and Heraldic Services

9. Programme 1 Performance: Administration (Corporate Services)
Strategic Objective:
To provide overall management and centralized support services to departmental
core programmes in order to create an enabling environment for the achievement
of departmental objectives.
Service delivery achievements:
Social Cohesion Colloquium convened in Durban on 29 & 30 October Post Colloquium consultation done with the private sector and NGOs.
Survey on promotion of identity and social cohesion was done in KZN. The findings were presented at the Social Cohesion Colloquium.
Organisational structure: approved by the Minister of Public Service and Administration in February The HR Plan is 85% completed.
Women in senior management: an increase of 2%.
Management of Information Communication Technology (ICT) has improved. 80% of security systems installed, Master system plan 100% completed.
Unqualified Audit Report received during the reporting period.
Most financial management policies were developed and implemented.
Verification of assets was conducted by 31 March 2010, errors were noted.

10. Programme 1 Performance: Administration….cont.
Service delivery achievements:
Four (4) izimbizo (North West, Free State, Eastern Cape, Mpumalanga) and one dialogue (Minister Consultation in Gauteng) conducted.
Improved management of Public Entities: 84% of entities received unqualified Audit reports (i.e. 21/25).
The Cultural Laws Third Amendment Bill was revised following final consultations as requested by the Minister. The Community Libraries Bill was finalised for submission to Cabinet.
Twenty Seven (27) planned audits were executed.
Building inspection was done and Certificate of Compliance with electrical installation received.
76 out of 154 immovable assets have been assessed and 49% of the buildings have been valuated.

11. Programme 2 Performance: Arts and Culture in Society
Strategic Objective:
Develop and promote arts and culture in South Africa and mainstream its role in
social development.
Service delivery achievements:
Confederations Cup: cultural programmes successfully implemented. Draft National Policy Framework for Community Arts Centres approved. National Interim Forum of Community Arts Centres established (September 2009).
International Federation of Arts Councils and Cultural Agencies (IFACCA) successfully hosted (21–25 September 2009).
Thirty (30) arts practitioners contracted and placed in eight schools in the Ehlanzeni district, Mpumalanga.
2 Bontle Beautification of Public Spaces Programme (BBPSP) implemented in the URP nodal areas, as follows:
Collaboration with Gauteng Arts and Culture Department in National Youth Service programme at Ibhongo High School (Soweto) and Lepono Primary School (Hammanskraal) and Soshanguve police station;
Bontle Beautification of Public Spaces Programme was linked to Flying the Flag in Every School Campaign (June 2009).

12. Programme 2 Performance: Arts and Culture in Society…cont.
Service delivery achievements:
Intergenerational Men’s and Women’s Dialogues were held in the Free State, Northern Cape, Mpumalanga, Limpopo, North West and KwaZulu-Natal.
Programmes, celebrating emancipation of women, were hosted:
National Women’s Day successfully hosted as a joint initiative between the Ministry for Women, Children and People with Disabilities and the KwaZulu-Natal Premier’s Office.
Intergenerational Women’s Dialogue hosted in KwaZulu-Natal in partnership with the Durban Playhouse.
International Women’s Day promoted women’s empowerment and gender equality at the SADC Women in Theatre and Dance Festival, hosted by the Southern Africa Theatre Initiative (9-13 March 2010).

13. Programme 3 Performance: National Language Services
Strategic Objective :
Develop and promote the official languages of South Africa
and enhance the linguistic diversity of the country.
Service delivery achievements:
One hundred and two (102) bursaries were awarded to students enrolling for language profession.
Web page developed for assisting provinces in developing Provincial Language Policy (PLP). Mpumalanga concluded provincial consultations on language policy and Northern Cape developed draft PLP.

14. Programme 3 Performance: National Language Services … cont’d
Translation and Editing Section
Documents in excess of 1000 were handled, varying from international cooperation agreements, legislation and general correspondence.
Human Language Technologies
First phase of the development of a multilingual telephone-based information system to support service delivery was completed. Implementation plan and budget developed for the establishment of a virtual Centre for Human Language Technologies.
Terminology Coordination Section
Developed the multilingual Soccer Terminology for the 2010
Soccer World Cup.
Terminology list disseminated electronically to soccer commentators for
SABC radio and TV, soccer fans and linguists.

15. Programme 4 Performance: Cultural Development & International Co-operation
Strategic objective :
Improve economic and other development opportunities for South African arts and culture, nationally and globally, through mutually beneficial partnerships thereby ensuring the sustainability of the sector.
Service delivery achievements:
Draft discussion document for formulation of policy framework for creative industries sector was developed.
Minister led a delegation of key music industry players and various musicians to MIDEM 2010 in France, where South Africa was chosen as Country of Honour.
New cultural agreements were signed with Jamaica, Qatar, Ghana and the Democratic Republic of Congo.

16. Programme 4 Performance: Cultural Development & International Co-operation cont’d:
SA successfully participated in the African Union’s 2nd Pan African Cultural Festival, held in Algeria for the first time in 40 years. The festival is in line with the AU’s endeavour to harmonize and coordinate cultural programmes and activities of AU countries as per the Algiers declaration agreed to during the 2nd Session of the Conference of AU Ministers of Culture.
DAC supported the Southern African Theatre Initiative to host a one-week series of events with women from SADC countries, celebrating women’s creativity in theatre and dance.

17. Programme 5 Performance: Heritage Promotion
Strategic Objective :
Develop and monitor the implementation of policy, legislation and strategic direction for identifying, conservation and promoting cultural heritage.
Service delivery achievements:
DAC and Limpopo provincial government successfully hosted National Heritage Day (24 September 2009) in the greater Sekhukhune municipality.
The design of the Sarah Bartmann Centre of Remembrance was finished.
Freedom Park Council was inaugurated by the Minister (29 June 2009).
Policy on South African Geographical Names Changes is being implemented. Seventy five (75) Geographical names were approved.
Draft National Digitization Policy completed.

18. Programme 5 Performance: Heritage Promotion cont’d
Inductions & performance workshops were held with the new National Museum & Natal Museum councils in May-June 2009
In June 2009 the 21 Member World Heritage Committee accepted the Robben Island World Heritage Site Progress Report & noted with appreciation the South African government’s support to the conservation & management of the site
Minister launched the Underwater Cultural Heritage Educational Programme with learners from 9 provinces in Simons Town on 16 October 2009
A draft national policy on living heritage, as well as another draft of the underwater cultural heritage policy, were completed. Skills audits in the heritage sector, as well as a headcount of heritage professionals, were concluded.   

19. Programme 5 Performance: Heritage Promotion …..cont’d
In February 2010 the Minister appointed the Robben Island Museum & World Heritage Site council, submitted the names to Cabinet for endorsement & the Council was inaugurated in March 2010
Transformation and standardisation of geographical names is continuing, in the period under review seventy five (75) Geographical names were approved.
Networking function to introduce the African World Heritage Fund to the diplomatic corps in South Africa hosted by the Minister on 12 November 2009
Minister signed a Memorandum of Understanding with UNESCO to include the African World Heritage Fund, based in South Africa, as a Category 2 Centre of that UN body.

20. Programme 6 Performance: National Archives, Records, Libraries and Heraldic Service
Strategic Objective:
Guide, sustain and develop the archival and information resources of South Africa to
empower citizens through full and open access to these resources.
Service delivery achievements:
Convened and supported the 6th Annual Oral History Conference in collaboration with Oral History Association of South Africa (13-16 October 2009).
Archives and Heraldry Week (18-22 May 2009): attended by 22 schools.
43 Designs and registered heraldic representations were completed by March 2010.
Seven (7) new community libraries were built. Two libraries will be completed in the new financial year. Forty three (43) libraries were upgraded nationally.
Fly the Flag campaign: Twenty one thousand and fifty (21 050) flags distributed.

21. DAC Performance: Voted Funds and Actual Expenditure
Appropriation
R’000
Adjusted appropriation R’000
Final appropriation
Actual expenditure
Over/(under) expenditure
1. Administration
-546 (0%)
2. Arts and Culture in Society
(3 %)
3. National Language Service
93 319
86 762
85 918
-844 (1%)
4. Cultural Development and International Co-operation, Investing in Culture
(21%)
5. Heritage Promotion
(29%)
6. National Archives, Records, Libraries and Heraldic Services
-2 (0%)
TOTAL
(15%)

22. Major areas of underspending
The total underspending for the Department as per the Appropriation
Statement as at the end of March 2010 amounted to R million
Capital Works budget: R351,679 million
Investing in Culture: R41,060 million
2010 FIFA World Cup: R12,883 million
Machinery and Equipment: R1,535 million
Reasons for Capital Works underspending
Cancellation of the contract to build new Archives building due to insufficient funds (R150 million)
Insufficient capacity in NDPW
Delay in approving additional funding for existing projects
Delay in approving sketch plan documents and tenders in the NDPW
Cancellation of contracts due to under performance
Projects not implemented within agreed time frames and specifications by NDPW
IIC underspending
Moratorium placed on IIC around August 2009
Forensic investigation followed
Recommendations of the investigation were executed
The SIU is doing further investigation with a view to recovering funds where financial losses were incurred
2010 FIFA World Cup
The 2010 World Cup realized a underspending of R million in the 2009/10 financial year.
Fly the Flag for Football Campaign (R3 million)
Africa Day (R1 million)
Public Viewing Areas (R6 million)
African Village (R2 million)
The delay in spending was largely due to the fact that the event was only held from June
Roll over funds were requested from the National Treasury. These were subsequently approved.
Machinery & Equipement
An amount of R1 535 million had been under utilised for the purchase of furniture and equipment.
The PFMA does not allow the use of capital assets budget for any other purpose.

23. Report of Audit Committee
Department operated on the approved Strategic Plan for 1 April March 2012.
Both the Audit Committee and Internal Audit unit were in place and fully effective. Six (6) Audit Committee meetings were held in the period under review.
Audit Committee operates in accordance with approved and written Terms of Engagement.
The Audit Committee is satisfied with the quality of the quarterly reports. Issues raised by Auditor-General were acted upon.
The Audit Committee reviewed and discussed the Annual Financial Statements with the Auditor-General and Accounting Officer and concur and accepts conclusion thereof.

24. Report of Auditor-General
Opinion
Unqualified Audit Report
Attention has been drawn to the following:
Preparation of the financial statements in accordance with modified cash basis of accounting determined by National Treasury.
Irregular expenditure of previous years.
Unaudited supplementary schedules.
Underspending of the allocated budget.
Presentation of the reported performance information (predetermined objectives).

25. Human Resource Management (HRM)
HRM plan: 90% completed;
Staff complement (March 2010): four hundred and ninety four (494);
Number of posts as per old structure: six hundred and seventy five (675);
Vacancy rate: 26.8%;
Key elements of the Employee Health and Wellness Programmes:
Management of HIV and AIDS
Loss and Trauma
Disability
Holistic Health and Wellness Programmes
Employees trained according to their Personal Development Plans
(PDPs)
HR policies: 89% were developed and/or reviewed and 68% approved.
Employment Equity report was submitted to Department of Labour in December 2009.

26. HR Statistics

30. PUBLIC ENTITIES
Audit Outcomes: 2009/10

32. Audit Reports per Public Entity
Type
Qualified
Robben Island Museum
Afrikaanse Taalmuseum
PACOFS
National Arts Council

33. Type: Emphasis Of Matter and Other
South African Heritage Resources Agency
National Museum
Freedom Park
SA Library for the Blind
National English Literary Museum
Windybrow
IZIKO Museums of Cape Town
Nelson Mandela Museum
Luthuli Museum
National Heritage Council
Ditsong Museum
State Theatre
War Museum of the Boer Republics
Playhouse
National Library

34. Type: Clean Audit Reports
Artscape
Natal Museum
NFVF
Msunduzi Museum
Market Theatre
William Humphreys Art Gallery

35. Issues most reported on
Performance Management/Strategic Planning/Predetermined Objectives
Transversal material misstatements on Annual Financial Statements

36. Improvement/Intervention Strategy
CEOs to provide Audit Outcomes Improvement Strategy by 31 October 2010 (Not only on Audit Report issues but also on Audit Management Letter issues)
Quarterly update of the Strategy
Applicable Public Entities to provide details of Fruitless and Wasteful expenditure and Irregular Expenditure by 31 October 2010 for consideration for condonement by the National Treasury
Workshop by the Department on Performance Management and compilation of Annual Financial Statements to be hosted by the Office of the Auditor General
Visits to PACOFS and Afrikaanse Taalmuseum to improve situation

37. Conclusion
The DAC will improve its services through, amongst others, the
following:
Full implementation of the approved Organizational Structure;
Enhancing corporate governance between DAC and its public entities and provincial counterparts;
Improved corporate planning, implementation, budgeting and reporting;
Development and implementation of monitoring and evaluation systems in order to distinguish between programme, policies success and failures;
Complete reduction of risks hampering the progress of department;
Development and implementation of Retention Policy.
Proper record keeping.

38. Thank You