1 st QUARTER PERFORMANCE REPORT DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 19/08/2014

1st QUARTER PERFORMANCE REPORT

DIRECTOR-GENERAL: ARTS AND CULTURE

DATE: 19/08/2014

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PRESENTATION OUTLINE

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Performance Overview Budget and Expenditure Explanation of Expenditure per Economic

Classification Review of Programme Performance on Key

Indicators

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COMPARISON OF THE FIRST QUARTER OF 2013-14 AND 2014-15

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PERFORMANCE OVERVIEW

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BRANCH-SPECIFIC PERFORMANCE

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BUDGET AND EXPENDITURE

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER PROGRAMME

Programmes

Main

Appropriation Expenditure Total %

2014/15 30 June 2014 Available Spent

R’000 R’000 R’000

Administration 228,266 67,679 160,587 30%

Institutional Governance 99,808 20,562 79,246 21%

Arts & Culture Promotion & Development 1,032,876 199,802 833,074 19%

Heritage Promotion & Preservation 2,163,798 423,095 1,740,703 20%

Total 3,524,748 711,137 2,813,611 20%

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER PROGRAMME

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER ECONOMIC CLASSIFICATION

Economic ClassificationMain

Appropriation Expenditure Total %

2014/15 30 June 2014 Available Spent R’000 R’000 R’000 Compensation 209,910 53,019 156,891 25%Goods & Services (include Payment for Financial Assets and Interest on Land) 480,355 105,418 374,937 22%

Provinces & Municipalities 1,016,210 173,886 842,324 17%Dept Agencies & Accounts (Current) 1,103,357 311,923 791,434 28%Dept Agencies & Accounts (Capital Works) 540,083 34,679 505,404 6%Non Profit Org 121,901 16,566 105,335 14%Foreign Government Organ 3,009 - 3,009 0%Households 27,655 11,732 15,923 42%Higher Education Institutions 12,470 - 12,470 0%Public Corporations 2,400 - 2,400 0%Capital Assets 7,398 3,914 3,484 53%Grand Total 3 524 748 711,137 2,813,611 20%

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER ECONOMIC CLASSIFICATION

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EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC

CLASSIFICATION

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Economic classification

Description of the line item Reason for variance

Compensation of Employees

The line item includes remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, cost of living allowances, house allowances, bonuses, pension, medical aid etc.

• An amount of R53 million (25%) has been incurred as at 30 June 2014.

• A total of 15 posts have

been advertised since February 2014 (in two phases) and a total of 4 posts have been filled to date. The other posts are in the process of being filled.

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EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

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Economic classification


Goods and Services (Include Payment for financial asset and Interest on land)

The item includes payments for all goods and services to be used by a government unit i.e. goods or services of a current nature, excluding purchases of capital assets.

• A total amount of R105 million (22%) spent as at 30 June 2014.

• The under-expenditure is mainly due to the process towards allocating projects support for MGE projects being underway. The adjudication process is in progress and will end by the 8th of August 2014.

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EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

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Economic Classification


Provinces and Municipalities (Conditional Grant on Community Libraries)

The expenditure relates to the transfers for the Conditional grant on Community Libraries and funds are transferred to various Provinces on a quarterly basis.

• An amount of R174 million (17%) has been transferred during the first quarter of the financial year based on the business plans.

• Due to late approval of DORA, the funds were transferred to Provinces on the 17th of May 2014 which resulted in Provinces not having sufficient time to spend the funds during the 1st quarter.

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PROVINCES AND MUNICIPALITIES CONDITIONAL GRANT ON COMMUNITY LIBRARIES

Per Province: Conditional Grant

Main Appropriation

Actual transfer by

Provincial Actual

Available

Amount by

% Actual payments of total

2014/15 National payments(Nationa

l)available

R’000 R’000 R’000 R’000 Eastern Cape 109,418 20,500 14,278 88,918 13,0%Free State 119,013 25,662 10,642 93,351 8,9%Gauteng 125,608 24,596 5,167 101,012 4,1%KwaZulu-Natal 122,754 19,120 5,064 103,634 4,1%Limpopo 81,010 21,134 4,987 59,876 6,2%Mpumalanga 114,781 22,000 17,960 92,781 15,6%Northern Cape 118,396 16,800 12,029 101,596 10,2%North West 98,883 21,316 13,791 77,567 13,9%Western Cape 126,347 2,558 1,877 123,789 1,5%

Grand Total 1,016,210 173,686 85,795842,52

4 8,4%

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Economic Classification Description of the line item Reason for variance

Departmental Agencies & Accounts (Current Transfers)

This expenditure item relates to subsidies to the Departments’ Public Entities. The Performing Arts Institutions transfers are processed quarterly, Libraries and Heritage Institutions on a monthly basis.

• An amount of R312 million (28%) has been spent as at 30 June 2014.

• The percentage spent is high due to the fact that Performing Arts Institutions, PanSALB and NHC are paid quarterly, in line with their cash flow projections.

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Departmental Agencies & Accounts (Capital Works)

This expenditure item relates to maintenance, upgrade and refurbishment of the Departments’ Playhouses, Museums and Libraries as well as the construction of Legacy Projects.


• The Department realized that some of the projects included in the UAMP were not planned properly. The Infrastructure Unit was then tasked to revise the project list to include only those with realistic projections and outputs. Funds will be transferred to the entities in the 2nd quarter.

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Non Profit Institutions (NPI)

Higher Education Institutions

This expenditure relates to subsidies to BASA, Blind SA, Engelenburg Arts Collection and MGE projects.

Expenditure relates to transfer payments to tertiary institutions in a form of a bursary.

• An amount of R17 (14%) has been spent as at 30 June 2014. MGE funds will be transferred as soon as the Treasury approval has been obtained.

• No funds has been transferred to Education Institution as at 30 June 2014.

• This budget will be re-allocated to Households during the AENE as the beneficiaries of the funds are students and not Universities/Colleges.

• Funds for the Heritage Bursaries are allocated in October.

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Households This expenditure item relates to all the financial assistance projects that the Department funds during the financial year.


• A virement of R8,4m will be requested to shift funds from NPI to Households in respect of financial assistance in Programme 2 (Institutional Governance)

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Capital Assets This budget relates to the purchasing of machinery and equipment including the IT equipment as well as acquisition of a building and other fixed structures.

• An amount of R3,9 million (53%) has been incurred as at 30 June 2014.

• The high spending is due to the procurement of production environmental servers for Head Office and National Archives.

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EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

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REMARKS

• The Department has spent R711 million (20%) as at 30 June 2014. The spending is in line with the set target in the first quarter;

• All the virement requests have to be processed as soon as the Appropriations Bill has enacted by Parliament in order to accelerate spending;

• The deviations will be minimized and procurement of goods and services to be done through SCM; and

• The Capital Works projects need to be closely monitored in order to curb the under-expenditure.

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EXPLANATION OF PROGRAMME PERFORMANCE ON KEY

INDICATORS

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ENE INDICATORSPERFORMANCE

INDICATOR1ST QUARTER

TARGETPROGRESS DESCRIPTION or

VARIANCE/ COMMENTS

Number of artists placedin schools per year

Approvals and conclusion of projects and Agreements with partners/beneficiaries

Submission with business plans from all the Beneficiaries in all the nine Provinces has been generated and routed. Consultations with Beneficiaries and Provinces are in progress. Delayed virement approval to transfer funds on time

Number of cultural events supported per year

06 Cultural events supported

06 Cultural events supported as follows:•South African Music Awards •Indoni My Heritage My pride•Miami Winter Conference•Diamonds and Dorings•Maluti Arts festival •Mandela Bay Jazz Series

Number of Language Practice Bursaries

Transfer funds to participating universities.

• Funds transferred to participating universities.

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SELECTED INDICATORS

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ENE INDICATORSPERFORMANCE

INDICATOR1st

QUARTERTARGET

PROGRESS DESCRIPTION or VARIANCE/ COMMENTS

Number of flag poles installed per year

2 500 4665 flags installed in 4665 schools across all provinces

The DAC requested the service providers to finish the project by the end of the financial year

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SELECTED INDICATORS

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PROGRAMME 1: ADMINISTRATIONPERFORMANCE INDICATOR

1st QUARTER TARGET


% of people with disabilities

2% As at the 31 June 2014 the department was at 1.84% of people with disabilities

5 SMS posts have not yet been finalised up to the point of appointment.

Finalisation of the outstanding vacancies at SMS level as well as ensuring that at least 1 PwD is appointed in the second quarter

% spent against approved budget

20% An actual expenditure of R711.137 million (20%) has been spent vs a budget of R3,525 billion.

% of BBBEE procurement

70% 88% of contracts were awarded to BBBEE companies.

Number of events managed to advance the DAC strategic goals or agreed Marketing objectives ( 30)

10 events managed to advance the DAC Strategic goals or agreed Marketing objectives

11 events managed during the first quarter

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SELECTED INDICATORS

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PROGRAMME 2: INSTITUTIONAL GOVERNANCEPERFORMANCE

INDICATOR1st QUARTER

TARGETPROGRESS DESCRIPTION or

VARIANCE/ COMMENTS

Percentage of Public Entities with fully constituted and inducted councils (100%)

100% of councils fully constituted and inducted

100% of Councils fully constituted and inducted. Windybrow Theatre, National Film and Video Foundation and PANSALB Councils were appointed and inducted

Number of Institutional visits conducted and reports prepared (26 visits and reports)

6 Six institutional visits were conducted during the quarter under review. ( Iziko, Robben Island Museum, SAHRA, Msunduzi, KwaZulu-Natal Museum and Market Theatre

Number of Community conversations held (18)

3 Community conversations

The tender to appoint the service provider to conduct community conversations is being processed

The service provider will do more community conversations in September 2014

Number of Public Platforms for Social Cohesion Advocates

3 3 Platforms were hosted, inter-generational dialogue, youth dialogue and Inter-Faith Council of SA.

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SELECTED INDICATORS

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PROGRAMME 2: INSTITUTIONAL GOVERNANCEPERFORMANCE

INDICATOR1ST QUARTER

TARGETPROGRESS DESCRIPTION or VARIANCE/

COMMENTS

Number of Cultural Seasons implemented

UK and China Seasons

China Seasons: The Official opening of the SA Seasons in China was held in Beijing, China on the 29 April 2014. UK Seasons:UK Media Briefing April 2014. The Seasons in the UK started with the Aye Write, Glasgow Book Festival from 04 - 12 April 2014,

Number of development programmes for Children, Women, Persons with Disabilities and Senior Citizens implemented (5)

Concept document for the Children, Women, People with Disabilities and Senior Citizens development programmes approved

1. Concept document and contract signed for the New Production - Zwakala Africa Awards 2014 2. Concept document approved for the Lefika-La Phodiso- Art Therapy.3. Concept document developed and approved for the Women in the Arts Empowerment Workshops. 4. Contract developed and approved for the Africa Sinakho Arts - In the Blood production held in April 2014. 5. Contract developed and approved for the Mandela The Opera production held in May 2014.

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SELECTED INDICATORS

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PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT

PERFORMANCE INDICATOR

1ST QUARTER TARGET


Art bank: 1st phase of Art Bank implemented as per approved business plan

Art bank: legal requirements for the Art Bank entity

Entity report was submitted to DAC regarding entity and legal requirements on 13 June 2014

NACISA launched Partnership with educational institution finalized

Discussion with the Kennedy Center regarding training program is underway. Training proposal submitted. Partnership discussion with Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority(CATHSETA) is underway.

Number of sector organisations and skills training projects supported

Business plans received from sector organisations and skills development projectsMOUs signed

Six proposals/plans received from the Association of Independent Record Companies(AIRCO), Moshito, Downtown Music Hub, SARA, Thuthuka Jewellery and Creative Cultural Industries Federation-Interim Committee (CCIFSA-IC) received for support

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SELECTED INDICATORS

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PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENTPERFORMANCE INDICATOR

1st QUARTER TARGET


DAC Language policy developed

Consultations with DAC management and staff

Consultative workshop with DAC management and staff conducted

Number of domains for which terminology will be developed

Arts and Culture intermediate phase 873 terminologies developed;

Arts and Culture intermediate phase 873 terminologies developed

HSEMS intermediate phase 2 898 terminologies developed

HSEMS intermediate phase 2 898 terminologies developed

Mathematics senior phase 926 terminologies developed

Mathematics senior phase 926 terminologies developed

Life Orientation 1 491 terminologies developed

Life Orientation phase 1491 terminologies developed

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SELECTED INDICATORS

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PROGRAMME 4: HERITAGE PROMOTION AND PRESERVATION


1ST QUARTER TARGET


Number of National Days hosted (7)

2 The National Freedom Day (27 April) and National Youth Day (16 June) were successfully hosted

Number of Outreach projects implemented (6)

2 7 Outreach Projects were implemented during the period under reviewAnnual Archives Week, Freedom Day, Youth Day exhibitions, International Archives Day, Tatoo Indigenous music exhibition, Oral History Interviews, Bavvianspoort Public Programme

Ncome phase 2 Repaired

Appoint the Service Provider

Service provider appointed by the DPW. Ncome Phase 2 damages repaired by DPW 29

SELECTED INDICATORS

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1ST QUARTER TARGET


3 Prioritised elements of OR Tambo phase 2 started

Appoint the Contractor

The Contractor appointed in May 2014, construction has started

Sarah Bartmann Centre of Remembrance-Beginning of construction

Appointment of a contractor

Lubbe Contractor appointed in April 2014. Breaking of the Ground Ceremony held on 02 May 2014. Setting up of site and bulk earth works commencement in May 2014. 4% of buildings works complete by June 2014.

Bram Fisher house purchased

Property registration DAC has sent a letter to Independent Development Trust (IDT) instructing them to register the house under the National Heritage Council. IDT has sent a deed of ownership to NHC to complete for property registration under NHC.

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SELECTED INDICATORS

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1ST QUARTER TARGET


Number of jobs created through heritage projects

2 567 3067 jobs were created

Dr Moroka House project

Appointment of a contractor

Contractor appointed

Ingquza Hill Phase 1

Construction begins Contractor appointed and construction has commenced.

Bhambatha Stature

Stature installed Stature installed and awaiting unveilling.

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SELECTED INDICATORS

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THANK YOU

Documents

1 st QUARTER PERFORMANCE REPORT DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 19/08/2014