1. DEPARTMENT OF ARTS AND CULTURE
5/20/2019
PACOFS OVERVIEW
DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 05/10/2017

2. OUTLINE OF THE PRESENTATION
Alignment with DAC
Ministers 10 point plan
Performance Review
Governance Status
Income and Expenditure Trends
Three year statement of Financial Statement
Analysis of Cash and Cash Equivalents
Audit Outcome
Challenges and Interventions

3. ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2016/17
Goal 1: A transformed, coherent and development-focused Sector – driving greater policy and planning coherence in the Sector towards the achievement of sectorial development outcomes.
To drive integrated and joint outcomes– based planning, monitoring and evaluation across Sector
To identify, develop and implement strategies to contribute to the New Growth Path
Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth
To facilitate an enabling and coherent policy, legislative and regulatory environment for the ACH Sector
Goal 2: Nation building through effective social cohesion programme implementation – leading nation building and societal transformation through effective social cohesion programmes and a focus on multilingualism
To intensify the contribution to and co-ordination of Outcome 14 towards transforming of SA into a multilingual, non-racial, prosperous and non-sexist society
To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment
To create platforms for artistic expression in music, dance, theatre, poetry, opera and comedy
To create platforms for local artists to perform and become known
To intensify support to Programmes that contribute to social cohesion and nation building
To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns

4. ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2016/17
Goal 2: Nation building through effective social cohesion programme implementation – leading nation building and societal transformation through effective social cohesion programmes and a focus on multilingualism
To promote national symbols and constitutional values in schools through provision of national symbols toolkits.
To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment
To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns
To promote use official languages, promote a culture of reading and writing across society, and promote respect for oral knowledge and histories

5. ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2016/17
Goal 3: A productive, diverse and inclusive ACH Sector – protecting, preserving, promoting and developing arts, culture and heritage, and advancing the socio-economic inclusivity and contribution of the Sector
To promote and develop Cultural and Creative Industries
Creating an environment where the arts could gain exposure to existing genres, being creative in developing new creative ideas and promoting a holistic experience to the sector
Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth
To develop, promote and maintain multilingual infrastructure and technology that promote access to and increase participation in ACH at local, continental, regional and international level.
Opening markets and access and maintaining a positive image and good relations arts, culture, heritage and language locally, continentally, regionally and internationally.
To ensure development and maintenance of ACH infrastructure that can support local, regional, national and international ACH offerings as well as increase participation in, and access to ACH

6. ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2016/17
Goal 4: Sound governance, modernised systems and processes, and a sustainable ACH Sector – sound governance and the modernising of the ACH Sector to ensure the effective utilisation and leveraging of ACH resources for the benefit of all South Africans.
To ensure compliance and sound governance
To provide and maintain high quality support services to the Council and the department pertaining to sound financial management, human resource management, information technology, cleaning, transport and security administration.
1. To promote an environment of efficient and effective governance and reporting 2. To ensure sound financial management of all PACOFS revenue sources and safeguard the assets of the Project 3. To maintain a culture and practice of compliance with legislation and policies 4. To contribute to the achievement and development of PACOFS as a high performing organisation 5. Ensure a secure and reliable information technology environment 6. Ensure the effective identification and mitigation of risks across all functions
To drive sound financial management and controls across Sector
To implement sound governance to enable delivery of the DAC mandate
To strengthen and modernise records management and archives Management systems

7. ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective
Entity strategic objectives and how it links to DAC objective
Key outputs/deliverables per objective for 2016/17
Goal 5: A professional and capacitated ACH Sector – building the skills and capacity of the Sector to ensure its ongoing development and responsiveness.
To build human resource capability and promote culture of high performance
To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience
1. To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS 2. To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities 3. To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels
To increase and sustain number of ACH practitioners and pool of human resource capacity required by Sector

8. MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN
Strategic Outcome (What we wish to achieve)
Strategic Objectives
PACOFS ALIGNMENT
Nation Building and Social Cohesion
Improve social interaction
To create platforms for artistic expression in music, dance, theatre, poetry, opera and comedy
To create platforms for local artists to perform and become known
To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns
To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment
Focus on Africa
 n/a
n/a
Liberation Heritage Route
Create a legacy of information
To ensure that PACOFS complies and excels with the Heritage requirements on digitization and retaining of information on resources 
To identify information that should be retained and implement the national guidelines on the digitization as heritage resources
Promotion of languages

9. MINISTERS 10 POINT PLAN MINISTER 10 POINT PLAN
Strategic Outcome (What we wish to achieve)
Strategic Objectives
PACOFS ALIGNMENT
5. Arts and Cultural Development (Mzansi Golden Economy)
Stimulate local economy
Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth
Implement that vision of the Mzansi Golden Economy through giving expression to its programs to create an enabling and vibrant creative arts environment
To identify, develop and implement strategies to contribute to the New Growth Path
6. Promote Community Arts
Improve Skills level
To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS
To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities
To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels
To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience
7. Libraries
 n/a
n/a

10. MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN
Strategic Outcome (What we wish to achieve)
Strategic Objectives
PACOFS ALIGNMENT
8. Arts Education
Improve Skills level
To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS
To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities
To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels.
To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience
9. Skills audit
To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels

11. MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN
Strategic Outcome (What we wish to achieve)
Strategic Objectives
PACOFS ALIGNMENT
10. Reporting and Compliance
Create a financially viable and efficient organisation
To promote an environment of efficient and effective governance and reporting
To ensure sound financial management of all PACOFS revenue sources and safeguard the assets of the Project
To maintain a culture and practice of compliance with legislation and policies
To contribute to the achievement and development of PACOFS as a high performing organization
Ensure a secure and reliable information technology environment
Ensure the effective identification and mitigation of risks across all functions
To provide and maintain high quality support services to the Council and the department pertaining to sound financial management, human resource management, information technology, cleaning, transport and security administration.

12. Performance Overview 2016/17

13. Performance Overview 2014/15 2015/16 2016/17 Achieved 52% 39% 40%
Not achieved
48%
61%
60%

14. GOVERNANCE PACOFS 2014/15 2015/16 2016/17 Number of Council members 78
Number of Council meetings 2 6
Number of Council committee meetings 4
Attendance rate of Council meetings
75%
85%
80%
Number of Audit Committee meetings 1
Number of Management meetings 18
Number of Staff meetings 11 10

15. INCOME AND EXPENDITURE TRENDS
2014/15
2015/16
2016/17
R’000
Income
41 798
44 476
48 974
Government Grant
38 825
40 148
44 646
Own Income
2 973
4 328
Expenditure
(44 610)
(47 123)
(46 345)
Surplus/Deficit
(2 812)
(1 635)
2 629

16. THREE YEAR STATEMENT OF FINANCIAL POSITION
ITEM
2014/15
2015/16
2016/17
R’000
Current Assets
18 652
56 282
22 100
Non-current Assets
66 742
62 805
63 817
Total Assets
85 394
85 917
Current liabilities
63 351
50 427
19 136
Non-current liabilities
8 727
54 870
55 671
Total liabilities
72 078
74 807
Net Asset Value (NAV)
13 316
11 110

17. ANALYSIS OF CASH AND CASH EQUIVALENTS
ITEM
2014/15
2015/16
2016/17
R’000
Cash and Cash equivalents
16 984
18 578
53 364
Add: Trade and other receivables
278
1 792
1 158
Less: Current liabilities
(46 858)
(9 348)
(10 190)
Net Working Capital/Surplus Funds
(29 596)
9 230
44 332

18. AUDIT OUTCOME Unqualified Qualified *Adverse 2014/15 2015/16 2016/17
*The adverse opinion is due to Property, Plant and Equipment not recognized in accordance to GRAP standard; no appropriate audit evidence for repairs and maintenance and capital works still in progress and not recognized in accordance to GRAP standards.
In addition, no appropriate audit evidence for general expenses.

19. CHALLENGES & INTERVENTIONS
INTERVENTIONS BY DAC
Leadership vacuum for almost 3 years contributed to the instability at PACOFS.
The recent resignation of the CEO is being attended to.
There is currently an acting CEO at the entity. 17

20. CHALLENGES & INTERVENTIONS
INTERVENTIONS BY DAC
Labour Unions and Management are always at loggerheads.
Labour/Disciplinary Cases that take longer to conclude and have financial implications
(possible litigations)
Oversight visits by the DAC are utilised to attend to the issues of poor relations in the organisations.
A full forensic investigation into the capital expenditure of PACOFS has being conducted by the National Treasury.
A meeting was held by National Treasury with the DAC Infrastructure Development Unit and the Chairperson of the Council.
A separate presentation with full findings and recommendations will be presented. 18

21. DEPARTMENT OF ARTS AND CULTURE
5/20/2019
THANK YOU