1. FILM AND PUBLICATION BOARD’S PRESENTATION TO PC: HOME AFFAIRS ANNUAL REPORT 2011/12 11 October 2012 1

2. OUR MANDATE 2 Derived from Film and Publications Act 65 of 1996 as amended in 2004 and 2009. FPB is mandated to regulate the: creation, production and distribution of films, games and certain publications

3. PRINCIPLES CENTRAL TO FPB REGULATION 3 Protection of children from early exposure to adult material and use in child pornography productions – child pornography punishable by law Provide consumer advice on media content – ‘we inform, you choose’ Provide designated areas for distribution of adult material (pornography)

4. MEDIA DISTRIBUTION CHANNELS REGULATED BY FPB 4 FPB INTERNET SERVICE PROVIDERS CERTAIN PUBLICATIONS CINEMA & DVD MOBILE CONTENT WASPA

5. VISION AND MISSION VISION – A credible and visible content regulator that protects consumers. MISSION – To ensure efficient and effective consumer protection through regulation of media content, while empowering, especially children through robust information sharing. 5

6. MISSION To ensure efficient and effective protection of children against exposure to undesirable media and entertainment content through but not limited to; Enforcement and monitoring of industry, ensuring that there is adherence to classifications imposed by FPB both by industry and society in general Classification of content, in alignment with societal norms and values Empowering the public through robust information sharing and education to make informed viewing reading and entertainment decisions Facilitating the reporting of child pornography and the punishment of perpetrators 6

7. ACHIEVEMENTS Unqualified audit opinion Achieved 90% of overall Annual Plan targets Outreach and awareness – 200 000 direct reach Classification Guidelines review – qualitative and quantitative research Relocation of FPB head office from Houghton to Centurion Recruitment, appointment, and training of new pool of classifiers Prudent financial management 7

8. CHALLENGES Limited IT capacity and ageing IT infrastructure Pending outcome of the Media Court challenge to FPB legislation Legislative limitations – penalties etc High Vacancy rate due to migration of FPB Structure to new Turn Around Structure Ensure effective operations during the relocation process – limited disturbance to FPB activity Limited capacity to regulate new media platforms (i.e) VoD, Game applications etc. 8

9. STRATEGIC OBJECTIVES 9 1. Enhance, integrate and implement a Constitutionally sound regulatory framework 2. Develop and maintain organisational capacity and capability 3. Form and maintain national and international partnerships, and co-ordinate initiatives that support the business of FPB 4. Position the FPB as a visible and credible professionally run organisation

10. SO 1: ENHANCE, INTERGRATE AND IMPLEMENT A CONSITUTIONALLY SOUND REGULATORY FRAMEWORK 10

11. KEY PROGRAMMES Registrations and compliance of distributors Classifiers training and empowerment programme Recruitment of a representative pool of Classifiers Partnership in regulation Convergence of norms and values Environmental scanning and industry trend analysis Digitisation and records management Legislation and Trends review programme 11

12. 1. Registrations and compliance of distributors TargetPerformance ResultsComments 2000 unregistered/ non compliant distributors on the approved database Partially achieved70.3% of target met. Target not met due to staff shortages in OPS division 95% of material submitted classified Achieved 6000 registered distributors visited, 2000 unregistered distributors visited Partially achieved77% of visitation targets achieved. Staff shortages in OPS division 40% conversion of unregistered distributors to new registrations or closures Partially AchievedIndustry resistance to convert to new registrations. Unregistered distributors closed when they fail to register 12

13. Registration and compliance of distributors cont... TargetPerformance ResultsComments Establish an online distributor registration and classification submission AchievedSystem testing in progress, full implementation in Q2 of 12/13 13

14. 2. Law Enforcement and Effectiveness TargetPerformance Results Comments 100% Compliance with SAFACT MoU standard operating procedures Achieved 300 joint raids and 350 cases opened Achieved and exceeded Effective partnerships with law enforcement agencies and industry assisted in exceeding targets 500 Law enforcement officers trained Achieved 14

15. Representative Classifiers Program TargetPerformance ResultsComment Appointment of new Classifiers Achieved 100% active pool of Classifiers Achieved Development of accredited Classifiers training programme Partially AchievedPoor response in tender requests to develop material. FPB appointed a team of experts to develop manual instead. Development and implementation of a classifiers internship programme Partially AchievedInternship policy approved late in the year. An advert issued in financial year for appointment. Interns commence in Oct 2012. 15

16. Partnership in regulations programme TargetPerformance ResultsComments Develop first draft of content regulation framework and circulate to stakeholders Partially AchievedDraft in place, industry consultation in progress and to be concluded in Q2 of 12/13 16

17. Convergence of norms and values TargetPerformance ResultsComment Development of new Classification Guidelines, Gazetting and implementation Partially achievedDraft guidelines developed and gazetted for public input. Target not met due to extension of due date for public inputs to allow further inputs. 65% of those surveyed converge with FPB ratings Achieved 17

18. Public Dialogue and Trends Analysis TargetPerformance ResultsComments 100% of trends analysis completed and presented by target date Not AchievedLimited research capacity to conduct analysis. Programme to be implemented in 12/13 FY Roll out of public dialogues as per approved communications plan Achieved 18

19. Electronic storage and accessibility of records and data TargetPerformance ResultsComments 20% of identified classes of classification and registration of data and records stored electronically Not AchievedECM system developed and implemented in Q1 12/13 FY. Feasibility study for digitisation of classification and monitoring records in progress. No records have been converted as yet. 60% compliance and classification databases accessible to monitors from offsite locations Achieved 19

20. Legislation and Trends Review Programme TargetPerformance ResultsComments Annual gap analysis on legislative shortcomings from print and electronic media Achieved Annual gap analysis report on legislative shortcomings from FPB framework Achieved 20

21. SO 2: DEVELOP AND MAINTAIN ORGANISATIONAL CAPACITY AND CAPABILITY 21

22. KEY PROGRAMMES 1.HR Management and Improvement 2.Staff performance management 3.Supply Chain management 4.Organisational performance and program management 5.Organisational Compliance program 6.Informational Technology Enhancement and Relevance program 22

23. 23 HR Management and Improvement Programme TargetPerformance ResultsComment 40% of milestones achieved against the HR improvement strategic plan AchievedNone 40% of milestones achieved against the succession planning framework AchievedFilling of posts below management put on hold pending the migration to the new structure. All posts to be filled by Q2 in 12/ 13 100% of staff members managed in line with FPB performance management policy Partially achievedAssessments for the last quarter of the year are done in the first quarter of the next financial

24. 24 HR Management and Improvement cont..... TargetPerformance ResultsComments Staff absenteeism maintained within 2% of days worked Achieved Annual staff satisfaction survey conducted Achieved 40% of milestones achieved against the coaching and mentoring plan Not achievedDelays due to delayed implementation of the turnaround strategy. To be implemented in Q2 in 12/ 13

25. 25 Staff Performance Management TargetPerformance ResultsComment 90% participation in the performance incentive scheme Achieved 100% of budgeted revenue collected fees Partially achieved76% of projected revenue from classification fees was collected as a result of a decline in number of material submitted for classification 0% over expenditurePartially achieved9% under expenditure; mainly due to delayed IT projects and vacancies 0% variance on OpexPartially achieved25% variance on Opex

26. 26 Staff Performance Management Cont.... TargetPerformance ResultsComments 0% Variance on CapexPartially Achieved4% variance on capex 100% Compliance with PFMA Achieved 0% Unauthorised irregular and fruitless expenditure Not achievedUnauthorised and fruitless expenditure incurred in the current financial year Unqualified audit opinion AchievedUnqualified audit opinion received

27. 27 Organisational Performance and Programme Management TargetPerformance ResultsComment Unqualified audit opinion on the annual FPB performance report for the 2010/ 11 Approved annual performance information management report Achieved Organisational strategic planning (update and review of current strategy) Achieved 100% implementation of strategy in compliance with FPB program and project management methodology Partially achieved90% implementation; monitoring compliance matrix an ongoing activity and matrix updated with relevant legislation on a quarterly basis

28. 28 Organisational Compliance Programme TargetPerformance Results Comment 80% compliance with organisational compliance matrix Achieved Compliance with SCM Procedures 50% Affirmative Procurement of total value Achieved

29. 29 IT enhancement and Relevance Programme TargetPerformance ResultsComments 60% IT Governance structure implemented and functioning within the FPB Corporate governance structure Achieved 100% implementation of IT enhancement and relevance programme Partially achieved75% implementation of IT strategy milestones for 2011/ 12; target not achieved due to vacancies at IT. All positions have since been filled in within the unit.

30. SO3: FORM AND MAINTAIN NATIONAL AND INTERNATIONAL PARTNERSHIPS, AND CO- ORDINATE INITIATIVES THAT SUPPORT BUSINESS OF FPB 30

31. KEY PROGRAMMES 1.Strategic partnerships and stakeholder management programme 31

32. 3.Form and maintain national and international partnerships and co-ordinate initiatives that support business of FPB TargetPerformance ResultsComment Institutionalise stakeholder management responsibilities within the organisation Achieved Implementation of the stakeholder management strategy as contained in the repositioning strategy Partially achieved 100% of targeted MOU’s/ SLA’s? Partnerships implemented in line with approved plans Partially achieved Quarterly Reports to Executive Authority; Governance Structures and Annual to Parliament Achieved 5% increase in mandate related actions as a result of the MOU/ SLA concluded in line with approved implementation plans aligned to the signed MOU’s Achieved 32

33. SO 4: POSITION FPB AS A VISIBLE AND CREDIBLE, PROFFESSIONALLY RUN ORGANISATION 33

34. KEY PROGRAMMES Public Relations Improvement Programme Client Liaison Programme Internal Communications Programme 34

35. Public Relations Improvement Programme: TargetPerformance resultsComment Outreach and awareness initiatives implemented by May 2012 (reach > 200 000 directly) Achieved 3 Exhibitions and Activations conducted at National Days Achieved Initiatives to activate the anti child pornography campaign (Back to School and Internet Safety Month Campaigns; Child Protection Week; 16 days of Activism) Achieved 35

36. Public Relations Improvement Programme Cont...... TargetPerformance ResultsComments 100% of milestones achieved on implementation of repositioning strategy Partially achievedTarget not fully achieved due to delays with the approval of the repositioning strategy. However; 80% of the strategy achieved through stakeholder engagements; outreach and awareness initiatives. Revamped and interactive corporate website Partially achievedWebsite revamp 90% completed. To be implemented in Q1 in 12/ 13 36

37. Client Liaison Programme TargetPerformance ResultsComment An integrated call centre for the organisation Partially achieved 75% implementation delays due to IT procurement; to be completed in Q3 of the financial year. 5% improvement on customer service surveys Not AchievedNot achieved due to delayed implementation of new structure. However surveys were done and are in the process of analysis 10% improvement on time taken to resolve queries Partially achievedTarget not fully achieved; manual queries management process in place; improvements on resolution and tracking of queries to be effected through integrated call centre 37

38. Internal Communications Programme TargetPerformance results Comments Intranet fully functional Internal customer surveys (conduct two staff surveys 10% improvement on staff perceptions about improved internal relations Achieved 38

39. 6. HUMAN RESOURCES: NO OF EMPLOYEES /OCCUPATION CategoryMaleFemaleTotal ACIWACIW Execs1---2---3 Senior Management 6--131--11 Support Staff184121921148 Total254132431162 Employees with Disabilities 1-------1 39

40. ANNUAL FINANCIAL STATEMENTS AND AUDIT REPORT

41. REVENUE R65.4m received to date as grant as compared to R56.1m received in the previous financial year. R6.6m was generated from regulation fees as compared to R8.5m in the previous financial year. The regulation fees declined from the previous financial year due to a decrease in the number of materials submitted for classification. Overall income received to date is R72.9m and R65.2 received in the previous period. 41

42. EXPENDITURE Administrative staff costs of R24.8m was incurred for the current year. Classifiers fees paid for the current year R2.4m.The cost declined as result of a decrease in the number of material submitted for classification. General operating expenses of R41.8. A surplus of R3,953,966 was recorded during the year as compared to R3,486,320 recorded in the previous’ year financial year. 42

43. STATEMENT OF FINANCIAL PERFORMANCE 43 DESCRIPTION2012 12 MONTHS (RANDS) 2011 12 MONTHS (RANDS) REVENUE72,965,88665,154,745 GRANT SUBSIDY65,458,00056,187,000 REGULATION FEES6,695,6158,594,722 OTHER INCOME812,271373,023 EXPENDITURE69,031,71161,481,376 PERSONNEL EXPENDITURE27,460,652 - Admin staff24,833,46723,850,948 - Classifiers2,416,4393,609,704 OTHER OPERATING EXPENDITURE41,781,80533,569,789 (DEFICIT)/ SURPLUS3,953,9663,486,320

44. AUDIT REPORT The Film and Publication Board has again obtained an UNQUALIFIED AUDIT OPINION. One matter of emphasis was reported. The emphasis was as a result of recording a transaction in the financial year it was not incurred in. Non – compliance with PFMA was reported as a result of a VAT payment made to a service provider who was not registered for VAT. (p89 of the annual report). The amount was regarded as fruitless expenditure. No irregular expenditure was incurred during the financial year. 44

45. THANK YOU