1. PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE ON ARTS AND CULTURE (24 October 2012) www.statetheatre.co.za

2. CONTENT 1.Overview 2.Vital Statistics 3.Background 4.Strategic Performance Statistics 5.Operational Indicators 6.Human Resources 7.Information Technology 8.Governance and Audit Report 9.Financial Performance 10.Key Focus Areas 11.Conclusion

3. 1. OVERVIEW This presentation is intended to provide the Portfolio Committee with an overview of the performance of the South African State Theatre in 2011 – 2012 as contained in its Annual Report for the same period and includes: Background to the Annual Report Statistical Information Findings of the Audit Report Financial Performance Key Focus Areas

4. 2. VITAL STATISTICS, 2011 - 2012 BudgetR71 827 041 RevenueR25 155 498 OPEX Grant FundingR37 199 594 CAPEX GrantFundingR5 014 152 Total Employees119 Total Performance Venues6 Total Performances580 Total Attendance139 224 www.statetheatre.co.za

5. BACKGROUND 3.1 Mandate and Role 3.2 Vision, Mission and Values 3.3 Chairperson’s Report 3.4 CEO’s Report 3.5 Artistic Director’s Report 3.6 Strategic Objectives

6. 3.1 Mandate and Role Constitutional Mandate The mandate of the SA State Theatre is derived directly from the legislative mandate of the Department of Arts and Culture which in turn comes from the Constitution of the Republic of South Africa Act, 1996. Legislative Mandate As a Cultural Institution we are established under the auspices of the Department of Arts & Culture and are then bound by the Public Finance Management Act 1 of 1999 (PFMA) as well as other applicable legislation. Policy Mandate The SAST has aligned its legislative mandate to the Department of Art and Culture’s drivers, outcomes and/or outputs.

7. 3.2 Vision, Mission and Values Vision The South African State Theatre as a national flagship aspires to be a world leader in the performing arts. Mission – identify, develop and present the very best performing arts work, – provide programmes which ensure self-generated income, – provide opportunities for the development of emerging arts practitioners, – promote diversity and develop new audiences, and – develop, maintain and upgrade our unique theatre facilities. Core Values Celebration of Excellence - Opportunity and Access - Openness and Integrity - Freedom of Expression - Accountability

8. 3.3 Chairperson’s Report Financial results The South African State Theatre has managed to meet its financial objectives and increase its self-generated income with further increases projected through to 2015. Systems and controls Systems upgrades are being made and controls put in place to monitor performance and make continuous improvements. Corporate governance Strengthening of corporate governance practices continues to be a key focus of the Council and Management; both are confident that progress is being made and risks are identified and mitigated in a timely and efficient manner.

9. 3.3 Chairperson’s Report, continued Revised strategic plan 2012 – 2015 We continue to periodically review the Strategic Plan and take actions consistent with meeting our core business objectives and responding to the changing business environment. Monitoring and measurement techniques are employed to ensure compliance with regulatory bodies and enable The State Theatre to achieve its financial and strategic objectives for the 2012/13 year.

10. 3.4 CEO’s Report Our facility Mandate obligations versus economical imperatives The industry Funding Clean administration The immediate future

11. 3.5 Artistic Director’s Report Actors, Dancers, and Technicians509 Performances580 Audience Attendance139 224 Tickets Sold124 602(Used: 106 951) Complimentary Tickets Issued49 539(Used: 32 273) Total Tickets Sold & Complimentary174 141 Naledi Awards Won8

12. 3.5 Artistic Director’s Report, continued Artistic Programme Opera Drama Arena Rendezvous Momentum

13. 3.5 Artistic Director’s Report, continued Development Programme 52 Seasons Supported by National Lottery 7 Productions Momentum Theatre Venue Tshwane University Of Technology Fieldwork programme 19 Community Groups

14. 3.6 Strategic Objectives Key Objective 1StrategyOutput Actual Performance Comment/ Corrective Action Develop and Maintain Long-term Partnerships Corporate Sector Partnership Additional Funding secured to improve service delivery, building development, maintenance of facilities. Achieved2nd MOU of R300 000 to be signed National, Provincial and Local Government Partnership Partially Achieved Report submitted to DAC for the upgrading of SAST infrastructure Government PartnershipAchievedSeveral CAPEX projects in progress Embassies PartnershipPartially Achieved City of Tshwane sponsorship requested

15. 3.6 Strategic Objectives, continued Key Objective 2StrategyOutput Actual Performance Comment/ Corrective Action Increase Diversity of Products Staging & Developing In- House Productions through commissioning and buying 34 In-house productions /annum 32 Productions Rendezvous Theatre Programme part of Calendar 624 Performance Days 476 Performance Days Opera and Drama Theatre closed for upgrade January & February 132 181 Audience attendance 139 224 Attended Marketing Department Restructured. New Marketing Plan to be developed. 391 Actors Employed /annum 423 Employed

16. 3.6 Strategic Objectives, continued Key Objective 3StrategyOutput Actual Performance Comment/ Corrective Action Increasing the Diversity of Our Audience Market Segmentation and Penetration Attract LSM 2-6 Community and School Audiences Partially Achieved New and Innovative Marketing Strategies to be Implemented as well Product Diversification together with Target Market Needs Analysis

17. 3.6 Strategic Objectives, continued Key Objective 4StrategyOutput Actual Performance Comment/ Corrective Action Promote Enterprise Culture Develop Human Capital Skills HOD TrainingAchieved HR Strategic plan now approved by new HR Committee to be implemented Introduce Performance Management & Appraisal Structure Achieved

18. 3.6 Strategic Objectives, continued Key Objective 5StrategyOutput Actual Performance Comment/ Corrective Action Increase Self- Generated Income Raise Sponsorship Income R8 166 350R2 249 890 Unrealistic Baseline as based on 2010 World Cup Funding. Fund Raising Committee established & will implement action plan Rental Income Kilnerton R1 195 080R1 281 686 Office Block R991 200R762 119 Tenant affordability. New tenants signed up for 2012-2013 Theatre Rental R3 565 146 R3 326 943 Scheduled maintenance in January & February impacted on rentals Function Room R99 900R128 449 Restaurants R574 658R514 408 1 Tenant vacated and another defaulted in payments Hiring D é cor & Costume R1 418 348R1 597 193 Increase Ticket Sales of In-House Productions R3 000 000R2 130 818 Marketing and Sales Strategy reviewed Parking IncomeR10 281 207R10 074 364 Increased Show Production will increase evening parking Front of House IncomeR1 502 405R1 720 192 New Pricing Strategy to be implemented

19. 3.6 Strategic Objectives, continued Key Objective 6StrategyOutput Actual Performance Comment/ Corrective Action Develop and Maintain Buildings Feasibility study for development of SAST including Kilnerton Report Implementation by December 2011 R13.21m has been approved Kilnerton on Hold for possible utilization by DAC Upgrade of Stage Equipment & Facilities Theatre fit for purposeAchieved Develop additional Parking Bays from Costume Storage area Create 70 Additional Parking Bays Study commissioned For completion 2012-2013. Additional income potential R403 200 p/a Building Maintenance 98% of Health & Safety Issues dealt with within 24 Hours Achieved All issues arising successfully resolved within 24 hours Implementation of Effective Maintenance Programme Implemented Reduction of Man-hours spent on Emergency Repairs (16) Not Achieved Old building with latent unforeseeable problems. Scheduled Maintenance Man-hours 600 1 245 Hours Old building with latent unforeseeable problems Health & Safety AuditPartially achieved Aircon Service Provider Appointment in process Minimise Production disruption No Cancellations due to Breakdowns Achieved Secure Environment for Staff and Audience Security plan developed and implemented effectively Achieved Reduce Incidents to 5 Not Achieved. 4 Theft & 10 IOD H&S Audit to be done. New Cameras to be installed

20. 3.6 Strategic Objectives, continued Key Objective 7StrategyOutput Actual Performance Comment/ Corrective Action Provide Excellent Customer Care Create Customer Satisfaction Increase SAST visibility and customer interaction Partially Achieved Implementing CRM System and creating loyalty benefits for valued customers. Customer care telephone number to be implemented. Annual Customer satisfaction survey to be implemented

21. 3.6 Strategic Objectives, continued Key Objective 8StrategyOutput Actual Performance Comment/ Corrective Action Compliance with Legislation Compliance with PFMA No qualified audit opinion or emphasis of matter 2 Audit opinions and 1 Emphasis of Matter Aggressive Action Plan to address findings in place. Control environment being addressed & improved. Performance Manager Appointed to ensure Compliance. Compliance with BCEA, LRA & EEA Minimise Labour disputesAchieved 4 cases arose during the year. 3 ruled in favor of SAST and the 4th is pending

22. 3.6 Strategic Objectives, continued Key Objective 9StrategyOutput Actual Performance Comment/ Corrective Action Develop and Train Staff Training StrategyStaff trainingPartially Achieved Strategy approved by New HR Committee and now being implemented Employee Recognition & Improved Communication Policy developmentPartially Achieved Policy approved by New HR Committee to be implemented 2012- 2013

23. 3.6 Strategic Objectives, continued Key Objective 10StrategyOutput Actual Performance Comment/ Corrective Action Enhance cost efficiency within the organisation Install Software to manage Venue Hire & Planning Installation complete September 2011 Not Achieved Project abandoned due to lack of funding Performance Information Management Quarterly ReportingPartially Achieved Quarterly reporting is achieved. Performance Information Policy being developed Moonlighting PolicyNew policy by May 2011Partially AchievedPolicy amendments pending

24. 4. GENRE REPORT

25. OPERATIONAL INDICATORS 5.1 Operational Indicators 5.2 Historical Operational Indicators

26. 5.1 Operational Indicators: Revenue

27. 5.2 Operational Indicators: Expenditure

28. 5.2 Historical Indicators: Revenue

29. 5.2 Historical Indicators: Expenditure

30. HUMAN RESOURCES 6.1 Organisational Structure 6.2 Human Resources Strategy 6.3 Employment Equity Programme

31. 6.1 Organisational Structure

32. 6.2 Human Resources Strategy Minimise Industrial disputes Compliance with the Labour Law Recruitment process efficiency Customer Care Training Improve internal communications Develop a learning culture High level of skill and care in administration Awards for good practice Transformation staffing of competent individuals

33. 6.3 Employment Equity Programme PROFILE2006/20072007/20082008/20092009/20102010/20112011/2012 Occupational LevelsA.C.IW W W W W W Management213141414132 Middle Management & High Level Specialists 545556565665 Supervisors & High Skilled/Clerical 36133210319329339 9 Lower Level Skilled/Clerical427534464 5455475 Very Low Skilled407070707272 CATEGORY TOTAL8925100209320942194239623 ANNUAL TOTAL114120113115117119

34. 6.3 Employment Equity Programme, continued OCCUPATIONAL LEVELSFILLED AFRICANCOLOUREDINDIANWHITE MFMFMFMF ManagementYes21000011 Middle Management & High Level Specialists Yes15000032 Supervisors & High Level Skilled/Clerical Yes/No1613220045 Lower Level Skilled/ClericalYes/No2416340023 Very Low SkilledYes52000020 CATEGORY TOTAL483756001211 ANNUAL TOTAL8511023 119

35. 7. INFORMATION TECHNOLOGY Focus areas: Acquisition of Event and Programme Software; Acquisition of Pastel Payroll; Integration of Pastel Payroll with Pastel Evolution Accounting; Implementation of Fixed Assets Management Software to accurately manage asset values; Upgrade Server Software from Small Business 2003 to SB 2008; Standardise Windows platform and upgrade to Windows 8 when it become available; and To review the Internet Service Provider to ensure best value for money and maximise functionality.

36. 8. GOVERNANCE AND AUDIT REPORT Basis for qualified opinion 1. Trade and other payables from exchange transactions No system of control over the recording of outstanding invoices at year-end and no reasonable assurance that all outstanding invoices have been accrued or provided for. 2. Irregular expenditure Payments were made in contravention of the supply chain management requirements amounting to R1 563 712 (2011: R8 810 367). No system of control over irregular expenditure.

37. FINANCIAL PERFORMANCE 9.1 Statement of Financial Performance 9.2 Statement of Financial Position 9.3 Statement of Changes in Net Assets 9.4 Cash Flow Statement 9.5 Statement of Comparison of Actual & Budget Amounts

38. 9.1 Statement of Financial Performance

39. 9.2 Statement of Financial Position

40. 9.3 Statement of Changes in Net Assets

41. 9.4 Cash Flow Statement

42. 9.5 Statement of Comparison of Actual & Budget Amounts

43. 10. KEY FOCUS AREAS Clean Administration through the centralisation of Procurement & Implementation of Compliant Asset Management Processes & Controls Implementation of Audience Development Programme in partnership with external stakeholders Improve Income from Self-generated Productions Expand Scope of Development efforts & Introduce Partnership Approach Introduce Human Resources Grading and Performance Management System Introduce Career Development Programmes for Staff Development Introduce Compliance Management

44. 11. CONCLUSION The South African State Theatre remain and iconic institution. We are striving to consistently meet this standard in our programme content, patron entertainment experience and in our administration. Our intentions are well facilitated through “fit for purpose” operational activities. There is increased pressure on our organization to become financially sound due to imminent Department of Treasury budget restrictions. We are strategically enabling ourselves to increase and improve our income streams. This will enable us to drive key projects, aimed at improving our business holistically. We are ready for the future.