1. OVERVIEW THE NATIONAL FILM AND VIDEO FOUNDATION
DEPARTMENT OF ARTS AND CULTURE
9/12/2019
OVERVIEW THE NATIONAL FILM AND VIDEO FOUNDATION
DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 09 OCTOBER 2018

2. OUTLINE OF THE PRESENTATION
Enabling Legislation
Alignment with DAC Goals
Status of Governance
Performance Overview
Performance Trends
Income and Expenditure Trends
Three Year Statement of Financial Position
Analysis of Cash and Cash Equivalents
Audit Outcomes
Challenges and Interventions

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.
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. ALIGNMENT WITH 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
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
An increase in the volume of South African films produced particularly by PDI’s
66 Development projects funded
38 production projects funded
5 Slates:
Women
Youth
Fiction
Documentary
Animation

5. ALIGNMENT WITH 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
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
Audience Development for SA Films and Content
7 Festival Grants awarded to National Festivals

6. ALIGNMENT WITH 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
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
Opening markets and access and maintaining a positive image and good relations,
arts, culture, heritage and language locally, continentally,
regionally and
internationally
Local activations and promotional events
12 Festival Activations
Fund 80 Filmmakers to attend Markets and Film Festivals

7. ALIGNMENT WITH 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
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
Opening markets and access and maintaining a positive image and good relations
arts, culture, heritage and language locally, continentally,
regionally and
internationally
International activations and promotional events
Attend and activate at 7 International Festivals and 4 Strategic Markets to promote SA Film Content

8. ALIGNMENT WITH 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
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
Opening markets and access, and maintaining a positive image and good relations
arts, culture, heritage and language locally, continentally,
regionally and
internationally
Certification of National Films
3 Co-production activations

9. ALIGNMENT WITH 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
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 implement sound governance to enable delivery of the DAC
mandate
Corporate Services
Performance Management System
Human Resources Development
Labour and Compliance
Payroll administration

10. ALIGNMENT WITH 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
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 drive sound financial management and controls across Sector
Entity Management
Quarterly reporting to Council, DAC and Treasury
Unqualified audit report
Risk register
Internal Audit
function

11. ALIGNMENT WITH 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
Goal 5: a professional and capacitated ACH Sector – building the skills and capacity of the Sector to ensure its ongoing development and responsiveness.
To increase and
sustain number of
ACH practitioners
and pool of
human resource
capacity required
by Sector
Internship Programme
Place 25 interns per annum

12. ALIGNMENT WITH 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
Goal 5: a professional and capacitated ACH Sector – building the skills and capacity of the Sector to ensure its ongoing development and responsiveness.
To increase and
sustain number of
ACH practitioners
and pool of
human resource
capacity required
by Sector
Skills Development
66 bursaries
3 Training initiatives funded
1 Sediba Programmes

13. ALIGNMENT WITH 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
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
Skills Development
10 Students to participate in Mentorship programmes
2 Schools programmes

14. STATUS OF GOVERNANCE NFVF 2015/16 2016/17 2017/18
Number of Council members 13
Number of Council meetings 9 7 8
Number of Council committee meetings
Attendance rate of Council meetings
90%
99%
98%
Number of Audit Committee meetings 4
Number of Management meetings 12 6
Number of Staff meetings 3

16. PERFORMANCE TRENDS 2015/16 2016/17 2017/18 97% 98% 3% 2% Achieved 92%
Not achieved 8% 3% 2%
REASON FOR NON ACHIEVEMENT 2017/18
3 Policy manuals were due to be approved by the Council at the end of 2017/18. This was not achieved. The entity embarked on an Organisation Design process and resolved to complete the process first before approval of policy manuals.
This target will be prioritized in the 2018/19 financial year.

17. THREE YEAR INCOME AND EXPENDITURE TRENDS
NFVF
2015/16
2016/17
2017/18
R’000
Income
Government Grant
Other Income
5 388
35 191
16 935
Expenditure
Surplus / (Deficit)
1 750
(4 339)
(6 345)

18. THREE YEAR STATEMENT OF FINANCIAL POSITION
DEPARTMENT OF ARTS AND CULTURE
9/12/2019
THREE YEAR STATEMENT OF FINANCIAL POSITION
NFVF
2015/16
2016/17
2017/18
R’000
Current Assets
86 834
74 962
70 723
Non-Current Assets
6 401
8 126
9 198
Total Assets
93 235
83 088
79 921
Current Liabilities
35 590
46 190
44 438
Non-Current Liabilities
51 421
35 012
39 943
Total Liabilities
87 011
81 202
84 381
Net Asset Value (NAV)
6 224
1 886
(4 460)

19. ANALYSIS OF CASH AND CASH EQUIVALENTS
NFVF
2015/16
2016/17
2017/18
R’000
Cash and Cash Equivalents
80 143
59 617
63 996
Add: Trade and other receivables
5 780
15 345
6 582
Less: Current Liabilities
35 590
46 190
44 438
Less: Commitments
587
3 441
4 662
Net Working Capital/Surplus Funds
49 746
25 331
21 478

20. AUDIT OUTCOMES NFVF 2015/16 2016/17 2017/18 Audit Outcome
Unqualified with no findings
Unqualified with findings

21. DETAILS OF IRREGULAR EXPENDITURE
PRESCRIPT REGULATING ACTIVITY
AMOUNT
ACTION TAKEN
Renovations; Marketing Contract; Tax clearance certificates and Budget overspending
Non-compliance with SCM prescripts
SCM Prescripts R
Disciplinary process underway
The irregular expenditure amount is made up of the opening balance from the previous financial year amounting to R (not condoned) and the expenditure identified during the year amounting to R
Disciplinary processes are underway for expenditure incurred relating to Marketing Contract.

22. CHALLENGES AND INTERVENTIONS
FINDINGS FROM THE REPORT
PROGRESS ON THE INVESTIGATION REPORT
NFVF staff raised their concerns with the department on numerous allegations of mismanagement, corruption and conflict of interest by Council members.
DAC instituted a forensic investigation due to the veracity of allegations submitted by concerned NFVF staff.
The investigation was completed in March 2018 and was presented to Council for implementation of recommendations.
The following were the findings of the report:
Finding 1: Former NFVF CEO, CFO and Deputy Chairperson brought family members to the 2017 SAFTAs at the expense of the NFVF.
Progress: Letters of demand were sent to all three individuals. The NFVF has received R from the former CFO as payment. A settlement agreement is in the process of being concluded with the former CEO for R Summons to the value of R have been issued to the former Deputy Chairperson. 22

23. CHALLENGES AND INTERVENTIONS
FINDINGS FROM THE REPORT
PROGRESS ON THE INVESTIGATION REPORT
NFVF staff raised their concerns with the department on numerous allegations of mismanagement, corruption and conflict of interest by Council members.
Finding 2: Approval of overspending on office renovations to the value of R by some former NFVF Management, which resulted in unauthorised expenditure per the Public Finance Management Act (the PFMA), not adhering to process by the former CEO by splitting of work, in order to avoid a competitive bidding process. This resulted in non-compliance to the National Treasury Practice Note 8 and NFVF’s Supply Chain Management Policy.
Progress: All the implicated individuals have resigned and/or opted for voluntary retrenchment from the NFVF. The expenditure has been reported as irregular in the 2017 and 2018 Annual Financial Statements. New management is putting improved measures to ensure that strict adherence to policies is embedded in the organisation, along with controls to detect when such transgressions occur for early corrective action. 23

24. CHALLENGES AND INTERVENTIONS
FINDINGS FROM THE REPORT
PROGRESS ON THE INVESTIGATION REPORT
NFVF staff raised their concerns with the department on numerous allegations of mismanagement, corruption and conflict of interest by Council members.
Finding 3: The former CEO was found to have contravened the NFVF HR Policy in the appointment of her PA.
The Former CEO has resigned. The PA position was advertised, interviews were held and the current PA was appointed. No action has been taken against the PA as there was no wrongdoing found by the report on her part. 24

25. CHALLENGES AND INTERVENTIONS
FINDINGS FROM THE REPORT
PROGRESS ON THE INVESTIGATION REPORT
NFVF staff raised their concerns with the department on numerous allegations of mismanagement, corruption and conflict of interest by Council members.
Finding 4: Council members were found to have travelled internationally without the Minister’s approval. Furthermore, international travel relating to Council and other NFVF officials was found to be over budget by R Three specific findings were made regarding Mr Molefe, Mr Masudubele and Ms Mashiane who are current Council members.
Progress: The report did not make any recommendations relating to its findings regarding these Council members. International travel by Council members has not been undertaken without the Minister’s approval since these findings came to light.
The Chairperson informed DAC of the travel of Mr Masudubele, conflict of interest and double booking at Cannes Film Festival and the London trip which had nothing to do with NFVF core business. The Council Member has since resigned and the Council has to pursue this matter. 25

26. CHALLENGES AND INTERVENTIONS
DAC INTERVENTION
PROGRESS
An anonymous correspondence from concerned staff of the NFVF pleading once more for the Minister’s intervention on a number of issues
A formal correspondence has been forwarded to the NFVF Council to apprise the Ministry on the allegations raised.
The NFVF has committed to respond to the Ministerial correspondence as a matter of urgency. 26

27. CHALLENGES AND INTERVENTIONS
DAC INTERVENTION
PROGRESS
Correspondence from 8 of the 11 Council members requesting Minister to invoke Section 6 (6) of the NFVF Act 1997 by removing three of the Council members.
Minister convened a meeting with the Council on 20 September 2018 to resolve the issues between the Council members
The Council has committed to working together to resolve their differences and to focus on the mandate of the NFVF as a strategic national interest.
Minister tasked the Council to prepare a position paper which will inform the Ministry on how to use the film industry as a major contributor to the economy. This position paper will be presented by the Minister during the BRICS Ministers of Culture meeting which is scheduled for end of October 2018. 27

28. DEPARTMENT OF ARTS AND CULTURE
9/12/2019
THANK YOU