1. Film and Publication Board Presentation to the Portfolio Committee on Communications 09 September 2014 1

2. Presentation Outline Vision, Mission & Values Historical Perspective Legal Framework Regulatory Tools Governance Structures FPB Management Strategic Outcomes Strategic Priority Programmes 2014-2019 FPB Successes Current Challenges Employment Equity Staff Misconduct Matters Performance Information Report Quarter 3 Revenue and Expenditure Report: 3 rd Quarter 2013-14 2

3. FPB Vision, Mission and Values VisionMissionValues “A Leading and Credible Content Classification Authority in South Africa” “Ensure efficient and effective consumer protection through regulation of media content,, while empowering the public especially children, through information sharing” Accountability Fairness Integrity Transparency Professionalism 3

4. Historical Perspective Previous Censor Board within the Department of Internal Affairs Governed by the Publications Act of 1974 to Censor undesirable content 1994 shift from Censorship to Content Classification Task Group established to draft legislation to replace Publications Act Film and Publications Act no 65 of 1996 FP Act allowed for content classification and age ratings, only child pornography and bestiality prohibited from distribution 4

5. Legislative Framework StatuteArea of Governance Constitution of the Republic of South Africa 1996 Bill of Rights, Rights of Children and child protection Film and Publications Act no. 65 of 1996 as amended Creation, possession and distribution of films, games and certain publications Makes Child Pornography punishable by law (Section 24 (c) ) Public Administration and Justice Act (PAJA) Public Administration Classification GuidelinesClassification process and age ratings 5

6. Evolution of FP Act Enacted in 1996 to establish the FPB and regulate the creation, possession and distribution of films, games and certain publications. Amended in 2009 to among others: –Insert and delete certain definitions –Establish and provide for the powers and duties of a Council –Provide for the appointment of functions of compliance officers –Provide for the compositions, functions and management of the Board –Repeal certain schedules to the Act Currently a legislative amendment process is underway to allow for better regulation of online content distribution 6

7. FPB Regulatory Tools Constitution 1996 Registration of distributors Classification Guidelines Compliance monitoring Consumer education and outreach 7 REGULATIONS FILMS AND PUBLICATIONS ACT 1996

8. Governance Structures Executive Authority Council CEO OPTICOM HR & REMCO A&RC Committee of Chairs Fincom Appeals Tribunal 8

9. FPB Management CEO Chief Operations Officer Shared Services Executive Chief Financial Officer Chief Information Officer 9

10. FPB Strategic Outcomes: 13/14 – 17/18 Strategic OutcomeDescription (SO1)Effective and visible monitoring of industry throughout the entire value chain for the protection of children and adults through information (SO2)Consumers, general members of the public and industry informed about the mandate of the FPB (SO3)Effective and efficient management of FPB Operations (SO4)Revised, effective and innovative regulation of the content distributed online, mobile and related platforms for the protection of children and adults through information SO5)Expand FPB footprint through effective partnerships and stakeholders in pursuance of our Mandate 10

11. STRATEGIC PRIORITY PROGRAMMES 2014/2019 1.Research, Compliance Monitoring & Evaluation (SO1) 2.High Visibility-High Impact Communications, Stakeholder Engagement & Consumer Education (SO2) 3.Resourcing and Financing Plans and Institutional Reform (SO3) 4.ICT, Connectivity and Digitisation Strategy (SO3) 5.Technology driven content classification (SO4) 6.Legislative review (SO4) 7.Regional, Continental and International Partnerships (SO5) 11

12. FPB Successes National, Regional, International visibility Online Regulation – Agreements with distributors in place (Altech, Apple, Google) Our classification processes and governance are more rigorous and effective due to online submission of games Financial systems are sound, we had 5 years of unqualified audit reports. Reduced the % of appeals to classified material due to improved operational efficiencies and training of Classifiers We have developed a training manual for the classifiers which will be accredited through UNISA as a formal training programme

13. Inadequate empirical research and industry-specific expertise Proliferation of content on various platforms (local and international), accessible to South African citizens, especially online Increase of illegal content and user generated content (especially Child Pornography) Cyber-safety as it relates to children Inadequate regulatory tools for online content distribution (pending legislative amendments, Online Strategy implementation, ICT tools) Limited enforcement of FP Act provisions (inadequate enforcement provisions) Reduced funding sources to meet an expanding mandate (Decreased revenue generation due to shift from physical to online distribution) 13 Current Challenges

14. Employment Equity Occupational Categories MaleFemale TOTAL AfricanColouredIndian Whit e African Coloure d India n White Support Staff242113701167 Senior Management 400130008 Executive Management 300020005 TOTAL312124201180 Persons with disabilities 200000002 14

15. Staff Misconduct Matters 1.Misrepresentation of Qualifications – Gross Dishonesty: – Detected through a credential verification process – Investigated and referred to a Disciplinary Hearing – Employee found Guilty and Dismissed 2.Failure to relocate as per Contractual Obligation + Absenteeism + Misconduct at an Official FPB Function: – Investigated and referred to a Disciplinary Hearing – Dismissal Finding, employee lodged an appeal and the finding was upheld – Employee referred the matter to CCMA for arbitration – settled “ out-of-arbitration” on provision that employee receives full pension benefit. 3.Classifier’s Failure to Comply with Requirements for Content Classification at an External Viewing Venue: – Disciplinary hearing was held, finding was that the FPB was unable to provide evidence to support the allegations – Ruling – Classifier found Not Guilty of charges

16. Staff Misconduct Matters...continued 1.Theft of Material submitted to the FPB for Classifications + Accessing Viewing Facilities and Utilising Equipment and Materials without Authorisation:(2 Operations Staff) – Two employees suspended while allegations were investigated – They were charged and disciplinary hearing was held on the 05 – 22 August 2014 – Employees were found guilty on all charges and dismissed with effect from the 25 August 2014 2.Collusion with a service provider + Conflict of interest + Contravention of FPB Fraud Prevention Plan: (Senior Manager & Operations Staff) – Allegations reported to FPB from a whistle-blower – Allegations currently being investigated through forensic auditors – Outcome still to be determined 3.Non-compliance with SCM procedures and regulations as accountable FPB Official + Irregular expenditure (Executive) – Investigation report tabled with FPB Council Task Team – Responsible Executive was suspended with effect from 8 August 2014 – Charges are being formulated.

17. Performance Information Report 2013/2014 Quarter 3 17

18. SO 1 :Effective and visible regulation of films game and certain publications throughout the entire value chain to protect children and inform the public Outstanding deliverables (Milestones) Challenges and Corrective measures Overall Comment – Achievement on some of the quarterly performance targets with much emphasis improved rates on compliance and inspections Draft Regulations implementedOn going refinements to the Regulations 75% non- compliance letters issuedLack of capacity 100% non-compliant distributors referred to SAPS Lack of capacity 18

19. SO: 3 Effective and efficient management of FPB procedures Outstanding deliverablesChallenges/ Corrective measures Overall Comment : Partial Achievement of targets regarding the governance due to approval processes Implement new tariffs Awaiting approval of new Regulations. Regulation fees: 2% of total revenue generated Awaiting approval of new Regulations. Automation project (Turn Around strategy implementation) Investigation of the cancelled Vodacom APN. Delay with quotes for IS VPN service 19

20. SO4: Ensure effective and innovative regulation of the content distributed on online, mobile and related platforms to protect children and inform the general public Outstanding deliverablesChallenges/ Corrective measures Overall Comment : Partial Achievement of targets regarding the governance due to approval processes Implement training manual Lack of Internal Capacity to develop a manual 20

21. SO 1: Effective and visible monitoring of films games and certain publications throughout the entire value chain (content creators, producers and distributors of fpgs) to protect children and inform the general public Annual TargetQ3 MilestoneQ3 Performance StatusReason for variance /Percentage if Partially Achieved Implement Automated processes System processes System enhancement including FPB verification module tested internally System report compiled None Conduct OSS industry Audits Implementation Classification Governance Framework Implementation In Progress (Phased-approach) 3 Meetings held with distributors and Classifiers in Gauteng None 21

22. SO 1: Effective and visible monitoring of films games and certain publications throughout the entire value chain (content creators, producers and distributors of fpgs) to protect children and inform the general public Annual TargetQ3 Milestone Q3 Performance StatusReason for variance /Percentage if Partially Achieved Classify 100% of classifiable material submitted 100% of received material classified None Classification Governance review undertaken Implementati on Classification Governance Framework Implementation In Progress (Phased-approach) Standard Operating Procedures (SOP) developed and approved Finalisation of Penalties and Exemption Committee due to delayed approval of Regulations amendments 22

23. SO 1: Effective and visible monitoring of films games and certain publications throughout the entire value chain (content creators, producers and distributors of fpgs) to protect children and inform the general public Annual TargetQ3 MilestoneQ3 Performance StatusReason for variance /Percentage if Partially Achieved Accreditation of approved Classifiers Training Program Training on new Manual Training conducted on blasphemy and prejudice Procurement process conducted and final editing in progress. Accreditation process in progress None Develop Labelling system Develop labelling system Project plan developed and approved. Project put on hold due to financial constraints. 23

24. SO 1: Effective and visible monitoring of films games and certain publications throughout the entire value chain (content creators, producers and distributors of fpgs) to protect children and inform the general public Annual TargetQ3 MilestoneQ3 Performance StatusReason for variance /Percentage if Partially Achieved Identification of Unregistered Distributors = 2000 Identification of unregistered Distributors= 400 806 Inspections to unregistered distributors done 64% of Q2 target None Identification of New Distributors 20% of Unregistered Distributors= 400 New Registrations:80 77 New Registrations 81 Closures Reported None 24

25. SO 1: Effective and visible monitoring of films games and certain publications throughout the entire value chain (content creators, producers and distributors of fpgs) to protect children and inform the general public Annual TargetQ3 MilestoneQ3 Performance Status Reason for variance /Percentage if Partially Achieved 6000 inspections of existing distributors ( 6000 targeted) 800 targeted inspections 1405 targeted inspections None Online Inspections: 1500 ISP: 1000 Social Networks: 150 Online Inspections: 300 ISP: 200 Social Networks: 30 Online Inspections: 579 ISP: 88 Social Networks: 65 Capacity reinforced to improve targets 25

26. SO 2: Consumers, general members of the public and industry informed about the mandate of the FPB Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance /Percentage if Partially Achieved Implement 13/14 Communication Plan Media Support to Public Dialogues and Outreach Programmes Media Interviews Conducted on Outreach Programmes None Implement 16 Days of activism media campaign linked to the FPB mandate Adverts placed in Media and Special Feature None Marketing Campaign on Classification Guidelines implemented Marketing campaign on the classification symbols ended in Q2. Insufficient for TV ads 26

27. SO 2: Consumers, general members of the public and industry informed about the mandate of the FPB Annual TargetQ3 MilestoneQuarter 3 Actual PerformanceReason for Variation/ Highlights Implementation of the approved outreach programme Multi-Unit Outreach Program Held Multi Unit Outreach programme held with Compliance division in Newcastle None Three Public Dialogues Held Two Public Dialogues held in Bloemfontein and East London Third Dialogue shifted to Q4 16 Days of Activism Campaign Outreach held Participated in the DWCD’s Young Women Dialogue in support of 16 Days of Activism Against Women and Children Abuse. Exhibited at the launch of the 16 days Campaign Against Women and Children Abuse. Exhibited for Johannesburg City Parks World Record Campaign event in support of the campaign. Multi Unit approach adopted with strategic partners 27

28. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual PerformanceReason for variance /Percentage if Partially Achieved Finalise migration to new structure and review it's effectiveness Review and Analysis of Turnaround structure completed. Individual Coaching Program implemented. Deferred team-based coaching program to Q4 Phase Two Change Management Project – aligned to BPM and Quality Management terms of reference developed. Implementation of Change Management Program deferred to 2014/2014 FY Office infrastructureOffice Infrastructure acquired Contract amendment approved and signed by Department of Public Works. Space Plans developed. Delay with approval from DPW and Bid Committee 28

29. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance/Highlights Implement organisational skills plan Implement approved FPB skills development plan Training Costs for the period = R46 850.00 Educational Assistant support - Program / Project Management & Administrative Management. Appointment of Compliance Interns for the 2014 Internship Program. 9 Interns appointed and 1 resigned during the year 29

30. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance /Percentage if Partially Achieved Implementation of internal communication plan Review internal communications plan reviewed Internal Communications Plan reviewed by staff None Implement 13/14 Targets ( IT Strategy Implementation) IT Strategy Implementation IT Strategy approved Service level management accepted by IT Steering Committee None 30

31. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance /Percentage if Partially Achieved Integrate FPB Systems FPB Systems integrated Enterprise Content Management has been integrated. System Integration user requirements developed. ToR integration of systems has been developed None Automation project ( Turn Around strategy implementation) Implement automation Draft Online Draft Strategy in place Online Monitoring Strategy due for approval 31

32. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance /Percentage if Partially Achieved Service Management Implementation and Review Risk Strategy and framework approved Draft Service Level Management accepted by IT Steering Committee Finalisation of the Draft SLM and presenting to approval committees Trends Analysis on Quarterly reporting Trends analysis developed Quarterly Trends report completed None Draft Risk Management Strategy in place Draft Strategic and Operational Risk Registers in place Risk Management Strategy developed Draft Risk Framework developed None 32

33. SO 3: Effective and efficient management of FPB Operations Annual TargetQ3 MilestoneQuarter 3 Actual Performance Reason for variance Update policies and procedures Policies updatedUpdate policiesNone New Strategy approved in 13/14 Review draft incorporating Executive Authority/ NT inputs Strategy approved by Executive Authority on December 2013 None 90% compliance with SCM policy SCM Compliance trends report; review SCM policy 100% SCM Compliance achieved; SCM policy reviewed. None Asset management Assets reconciliation reports All assets were reconciled to the GL on monthly basis. None Implement the Governance Framework Framework and Charters implemented Terms of Reference approved None 33

34. SO4: Ensure effective and innovative regulation of the content distributed on online, mobile and related platforms to protect children and inform the general public Annual TargetQ3 MilestoneQuarter 3Actual Performance Reason for variance /Percentage if Partially Achieved Develop Online and Mobile Content Regulation Strategy Online and Mobile Content Regulation Strategy developed Draft Strategy in place and awaiting Council approval Strategy costing still to be developed Join international body for regulation of digital content. IARC joined and framework implemented IARC joinedImplementation dependent on finalization of framework by IARC Upgrade Online and telephonic monitoring and reporting tools Quarterly Reports to INHOPE as per MOU Referred to SAPS and In Hope RMS: 52 and Online: 2 34

35. SO4: Ensure effective and innovative regulation of the content distributed on online, mobile and related platforms to protect children and inform the general public Annual TargetQ3 MilestoneQuarter 3Actual Performance Reason for variance / Roll out 10 industry workshops, 18 parent workshops focusing on online child protection 3 industry workshops, 5 parent’s workshops focusing on child protection 4 Industry workshops and 2 Parent Workshops held N/A Info Hub develop and maintain Pilot information hub Information Hub drafted and piloted with other units N/A 35

36. SO 5:Expand our footprint as the FPB through partnership and stakeholder relationships in pursuance of our mandate Annual Target Q3 MilestoneQuarter 3 Actual Performance Reason for variance/ Highlights Implement a Stakeholder Relationship Strategy Implement stakeholder relations strategy and plan Quarterly engagement with stakeholders conducted Growth in stakeholder developmen t Convene quarterly stakeholder initiatives Annual report launch held in October 2013 N/A Strategic partners initiated Impact assessment report compiled Outcomes assessed 36

37. SO 5:Expand our footprint as the FPB through partnership and stakeholder relationships in pursuance of our mandate Annual TargetQ3 MilestoneQuarter 3Actual Performance Reason for variance /Percentage if Partially Achieved Host 4 Africa/ SADC engagements on cyber safety and FPB mandate related issues Cyber safety workshop in 1 SADC/ African country Preliminary meeting held in Botswana to prepare for the 2014 Outreach Program Present papers in 3 International Seminars Develop and present 1 Seminar paper FPB attended and presented the paper at the International Safety Campaign in Cape Town 37

38. SO 5:Expand our footprint as the FPB through partnership and stakeholder relationships in pursuance of our mandate Annual TargetQ3 MilestoneQuarter 3Actual Performance Reason for variance /Highlights Participate in 2 In Hope AGM’s and related platforms INHOPE AGMFPB attended In Hope AGM in Netherlands Participate in 4 Local and International Gaming Festivals Durban International Film Festival Not applicable for this quarter. Target achieved in quarter 2 38

39. REVENUE AND EXPENDITURE REPORT: 3 RD QUARTER 2013-14 39

40. Table of Contents o Revenue o Expenditure o Budget Report o Report on Irregular Expenditure o Additional Funding Requirements

41. FPB Revenue Framework FPB Revenue Structure Grants Allocation - DHA allocation Audited Results 2011-12 R65.4mil 2012-13 R69.8mil 2013-14 R82.6mil MTEF Estimates 2014-15 R78.9mil 2015-16 R82.9mil 2016-17 R87.3mil 2017-18 R91.6mil Registration Fees - Classification Fees - Registration Fees Audited Results 2011-12 R7.1mil 2012-13 R5.7mil 2013-14 R4.4mil MTEF Estimates 2014-15 R5.0mil 2015-16 R5.5mil 2016-17 R6.1mil 2017-18 R6.5mil Other Income - Interest Income -Copies of Certificates Audited Results 2011-12 R0.394mil 2012-13 R0.168mil 2013-14 R0.032mil MTEF Estimates 2014-15 No estimates 2015-16 No estimates 2016-17 No estimates 2017-18 No estimates

42. Revenue Report for Q3 ended 31 December 2013 o Grant subsidy R 55,631,000 was received to date from the Department of Home Affairs. The Grant subsidy is being transferred in quarterly instalments of R 20,669,000 at the beginning of each quarter. o Classification fees of R 6,375,750 were collected during the first three quarters of the current financial year. To date only 30% of projected fees were collected; this is due to a decline in the material submitted for classification. o Registration fees of R 339,919 were collected during the first three quarters of the current financial year. To date only 24% of projected fees were collected. o Annual renewal fees of R 195,149 were generated. To date only 26% of projected fees were collected. This is due to an increase in number of distributors closing shop. o Interest Income amounting to R 15,848 was received to date from short-term investment made during the current financial year. o Other income collected from during the quarter related to recoveries from staff and income received for Tender purchases, at end of second quarter total amount of R 6,200 was collected. o 70 % of the overall budgeted income was actually received as at the end of the third quarter.

43. Expenditure Report for Q3 ended 31 October 2013 o SO1 – Effective and visible monitoring of industry compliance throughout the value chain for the protection of children and adults through consumer education. 50% of the budget has been spent. o SO2 - Consumers, general members of the public and industry informed about the mandate of the FPB. 78% of the budget has been spent. o SO3 – Effective and efficient management of the FPB operations. 61% of the budget has been spent. o SO4 – Effective and innovative regulation of content distributed on-line, mobile and related platforms for the protection of children and adults through consumer advice and information. 56% of the budget has been spent. o SO5 – Expand FPB footprint through partnerships and stakeholder relations in pursuance of the FPB mandate. 65% of the budget has been spent. o 54% of the Capital expenditure budget has been spent. o 61% of the administration expenditure has been spent. Overall, 59% of the expenditure budget was spent as at the end of the third quarter, these amounts include commitments.

44. Q3 Expenditure Comparison Report 2012 and 2013 OPERATING AND CAPITAL EXPENDITURE 2013-14 2012-13(YTD) Q3 ACTUALS % COMMENTS STRATEGIC OUTCOME 1: EFFECTIVE AND VISIBLE REGULATION OF FILMS, GAMES AND CERTAIN PUBLICATION THROUGH THE ENTIRE VALUE CHAIN (CONTENT CREATORS, PRODUCERS AND DISTRIBUTORS OF FPG'S) TO PROTECT CHILDREN AND INFORM THE GENERAL PUBLIC R 13 988 984 16 400 961 117% 17% increase in prior year was due to classifiers training and strategic partnerships projects which were reallocated to Strategic Objective 5. STRATEGIC OUTCOME 2: CONSUMERS, GENERAL MEMBERS OF THE PUBLIC AND INDUSTRY INFORMED ABOUT THE MANDATE OF THE FPB R 9 490 348 12 032 917 127% 27% increase in prior year was due to implementation of integrated media plan. STRATEGIC OUTCOME 3: EFFECTIVE AND EFFICIENT MANAGEMENT OF FPB OPERATIONS R 15 470 713 15 608 956 101% 1% increase in prior year was due to full implementation of the turnaround strategy. STRATEGIC OUTCOME 4: EFFECTIVE AND INNOVATIVE REGULATION OF THE CONTENT DISTRIBUTED ON-LINE, MOBILE AND RELATED PLATFORMS FOR THE PROTECTION OF CHILDREN AND ADULTS THROUGH CONSUMER ADVICE INFORMATION R 4 911 643 0 0% This is a new Strategic Objective introduced in 2013-14 financial year. The aim of the strategic objective is to focus on online content management and compliance monitoring. STRATEGIC OUTCOME 5: PARTNERSHIPS AND COLLABORATIONS R 3 941 138 0 0% This is a new Strategic Objective introduced in 2013-14 financial year. The aim of the strategic objective is to expand our footprint through partnerships and stakeholder relationships. CAPEXR 3 096 811 619 699 20% Increase in current year is due to new ICT Infrastructure procured in the current financial year (i.e. backup server and software). ADMINISTRATIVE EXPENSESR 4 650 343 10 426 743 224% Increase in prior year was due to new office space and most of the budget items ( i.e. Travel and Accommodation) in administration expenditure were reallocated to Strategic Objective 3 in the current year, hence a decrease in actual expenditure to date in the current financial year. TOTAL OPERATING AND CAPITAL EXPENDITURER 55 549 980 55 089 277101%

45. Budget Report

46. Budget Report for period ended 31 December 2013

47. Report on Irregular Expenditure

48. During the third quarter it was noted that one of our service providers did not deliver services contracted upon, as a result of which, the total amount of R 1 080 000 paid to the service provider was identified as irregular expenditure. After internal investigation, it was determined that there was a breach of procurement processes and disciplinary processes are underway. Recovery processes were also instituted against the service provider. FPB has since received a written offer of settlement from the service provider.

49. ADDITIONAL FUNDING REQUIREMENTS

50. a)Organisational Capacity and Capability – R 3 800 000, this once off allocation will be used to resolve current salary disparity; the new packages will be incorporated into the baseline throughout the MTEF. b)Implementation of Communication Strategy – R 10 300 000, this additional allocation will be used to implement the revised communication strategy during the 2015-2016 financial year. The strategy will be focussing on the implementation of Media Engagement Strategy, Stakeholder Relations, Public Relations and Marketing and Community Forums and Outreaches. c)ICT Modernisation and Infrastructure Improvement – R 32 400 000, due to the current ICT challenges highlighted above, it is recommended that the FPB improve current ICT infrastructure and optimise its ICT services to meet its business requirement. The additional allocation will be distributed as follows over the MTEF period: 2015 – 2016 = R13.8m 2016 – 2017 = R9.6m 2017 – 2018 = R4.1m 2018 – 2019 = R5.3m

51. THANK YOU