2012/13 3 rd QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW Sibusiso Xaba Director-General: Arts and Culture

2012/13 3rd QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW

Sibusiso Xaba

Director-General: Arts and Culture

PRESENTATION OUTLINE

Performance Overview Budget and Expenditure Explanation of Expenditure per Economic

Classification Review of Programme Performance on Key

Indicators Risk Management

2

PERFORMANCE OVERVIEW

3

COMPARATIVE ANALYSIS OF SECOND AND THIRD QUARTER PERFORMANCES FOR

2012/13

4

SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME AND PER ECONOMIC

CLASSIFICATION

5

SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME

Programme AdjustedAppropriation2012/13

ExpenditureDecember2012

Total Available

%Spent

R’000 R’000 R’000

Administration 212,732 177,320 35,412 83%Performing Arts 641,686 508,521 133,165 79%National Language Services 112,233 96,920 15,313 86%Cultural Development 158,928 100,138 58,790 63%Heritage Promotion 745,215 520,406 224,809 70%National Archives and Library Services 801,676 577,387 224,289 72%Grand Total 2,672,470 1,980,692 691,778 74%

7

6

SUMMARY OF BUDGET VS EXPENDITURE PER ECONOMIC CLASSIFICATION

Economic Classification Adjusted Appropriation2012/13

ExpenditureDecember2012

Total Available

%Spent

R’000 R’000 R’000

Compensation 183,008 130,741 52,267 71%

Goods & Services (includes Payments for Financial Assets)

294,322 248,980 45,342 85%

Conditional Grant 564,574 459,516 105,058 81%

Agencies & Accounts 954,042 780,933 173,109 82%

Capital Works 482,950 265,042 217,908 55%

Non Profit Org 12,873 11,292 1,581 88%

Households 173,668 80,839 92,829 47%

Capital Assets 7,033 3,270 3,763 46%

Grand Total 2,672,470 1,980,692 691,778 74%7

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION

8

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION

Compensation of Employees

An amount of R131 million (71%) has been spent as at end of December 2012.

The under- expenditure is as a result of the following posts only being filled after

3rd quarter:•DDG: Heritage Promotion &Preservation ( January 2013 )

•DDG: Arts & Culture Promotion &Development (March/ April 2013)

•DDG: Group Service (April 2013)

•CFO ( April 2013)

•Dir: Internal Audit ( March 2013)

•Dir :Legal Services ( April 2013)

The selection processes for these posts took place during the 3rd

quarter

6

9

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …)

Provinces and Municipalities (Conditional Grant)

An amount of R460 million (81%) has been spent/transferred to

various Provinces as at end of December 2012

The detail of the transfer by the Department and actual spending

by Provinces is as follows:

8

10


Per Province:Conditional

Grant

Adjusted Appropriation

2012/13

Actual transfer by

National

Provincial actual payments

Available % transferred of National allocation

R’000 R’000 R’000 R’000Eastern Cape 78,058 61,785 36,979 16,273 79.2%

Free State 50,304 35,657 33,234 14,647 70.9%

Gauteng 56,452 48,290 43,901 8,162 85.5%

KwaZulu-Natal 48,619 42,519 39,799 6,100 87.5%

Limpopo 68,822 60,848 31,303 7,974 88.4%

Mpumalanga 68,822 51,200 51,966 17,622 74.4%

Northern Cape 72,395 59,890 48,761 12,505 82.7%

North West 64,973 54,929 42,852 10,044 84.5%

Western Cape 56,129 44,398 41,332 11,731 79.1%

Total 564,574 459,516 370,127 105,058 81.4%11


Departmental Agencies Transfers Cur (Subsidies)

An amount of R781 million (82%) has been spent/transferred to Heritage Institutions and Libraries as at end of December 2012. No over or under expenditure is anticipated by March 2013

12


Departmental Agencies Transfers Cap

The expenditure item relates to maintenance, upgrade and refurbishment of the Departments’ Playhouses, Museums, Libraries and Legacy Projects through DPW and IDT. An amount of R265 million (55%) has been spent as at end of December 2012The reason for under-expenditure is the delay by DPW to submit claims timeously for payment

13


Non Profit Institutions

This expenditure relates to subsidies transferred to BASA, Blind

SA and Engelenburg Arts Collections

An amount of R11 million (88%) has been spent by end of

December 2012. No over or under expenditure is anticipated by

March 2013

13

14


HouseholdsThis expenditure item relates to all the financial assistance projects that the Department funds during the financial year

An amount of R81 million (47%) has been spent by the end of December 2012

The expenditure will accelerate in the last quarter of the financial year as Treasury has granted a virement approval on the 12th December 2012 to shift funds from Goods and Services to Households for the MGE allocation

15

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION)

Capital Assets / Machinery and Equipments

This budget relates to the purchasing of machinery and equipment including the ICT equipment

An amount of R3,2 million (46%) has been spent by the end of December 2012

An expenditure to be incurred for Anti-virus software, Network monitoring software, Backup software, website project, servers and storage for NAAIRS by ICT prior the end of the financial year

16

EXPLANATION OF PROGRAMME PERFORMANCE ON KEY

INDICATORS

17

PROGRAMME 1

OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability

INDICATOR 3rd QUARTER TARGET

PROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION

% of successfully attained targets

80% 59% of second quarter targets fully achieved and 41% targets were not achieved

Some projects were not completed as per specified time frames due to prolonged consultations, lack of participation from stakeholders etc.

Annual review of the organisational structure in line with the departmental strategy.

Implementation of the micro-structure (including matching and placement)

The micro-structure has not yet been implemented. Senior managers are still being consulted on the provision of the micro-structure as well as matching and placement of staff on the proposed structure.

Delays in finalisation of the micro-structure (engagements with managers taking longer than anticipated and incorporating DPSA inputs). As corrective action a revised project plan has been developed and was submitted to EMT - adopted.

18

PROGRAMME 1


INDICATOR 3rd QUARTER TARGET PROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION

% Vacancy Rate to approved structure.

3rd phase of advertising of vacant posts

The following posts were concluded : DDG: Arts and Culture Development and Promotion and DDG: Heritage Promotion and Preservation. Interviews for CFO and DDG: Group Services were conducted. Selection process for Director: Internal Audit was finalised and suitable candidate was identified

The CFO Office and HRM analyzed the employee compensation budget and journals were passed for payments for consultants that were initially made from the compensation budget. CD: HRM to present the status of the employee compensation budget at the strategic planning session, indicating available budget for the remainder of 2012/13 and 2013/2014.

19

PROGRAMME 1




% of Capital Works budget spent to upgrade Public Entity facilities

75% Only 54% (260 million) of R483 million of the total Capital Works budget has been processed to date.

Department of Public Works challenges on slow implementation of the Capital Works projects. Funds will be transferred from February 2013 direct to some institutions to implement the Capital Works projects.

Number of Izimbizo arranged annually

4 Izimbizo 1 Izimbizo done –Public Engagement of Deputy Minister Bonnievale

Henceforth, block the annual calendars of Minister and Deputy Minister in line with planned izimbizo by line function to ensure availability.

Number of national social cohesion summits hosted

Consult stakeholders on the recommend-ations

Achieved - The Summit Report was presented to the President in November 2012. Consultations with G& A cluster and Social Sector cluster was done. Feedback sessions to the provinces have started and are on-going

20

PROGRAMME 2: PERFORMING ARTS

OBJECTIVE: To promote arts & culture in SA and mainstream its role in social development


Number of Cultural programmes supported

Policy Framework consultative workshops (3 provinces)

Achieved - Completion and compilation of report on all provinces. Report on Performing Arts Policy Framework workshops was finalised

Community Arts Centres’ Audit Report

Receive first draft report of CACs

Appointment of Service Provider to undertake the Audit of CAC, has been finalised

Delays in the appointment of the service provider due to internal processes

Number of programmes targeting Vulnerable groups

3 Programmes implemented in collaboration with civil society

Achieved - 3 Programmes implemented in collaboration with civil society i.e. Zwakala Awards on the 26th October, National Field Band Championships, 6 October 2012, Youth Development programme through Arts (School Holiday Programme) 10 – 16 December 2012

21

PROGRAMME 3: NATIONAL LANGUAGE SERVICE

OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation.



Proportion of functional translation and editing as per clients request

Receipt, assessment and further processing of documents to be translated and/or edited

Achieved. English: 15 documents received and completed; Afrikaans: 12 documents received and completed; Foreign Languages: 84 documents received and completed. African languages: 130 documents received and completed , isiNdebele 5, SiSwati 3, isiXhosa 55 isiZulu 26, Sepedi 5, Sesotho 13, Setswana 13, Tshivenda 5, Xitsonga 5

Number of bursaries offered to undergraduate and graduate students

Progress reports received and ratified

Achieved - Reporting is done twice a year in 30 September and 31 March according to contract with universities. The first report has been received, studied and ratified on 30 September 2012 as expected. Project on target

22

PROGRAMME 3: NATIONAL LANGUAGE SERVICE cont.

OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation.


Number of terminologies developed per domain

872 terminologies developed - Arts and Culture

Achieved. 872 Arts & Culture terminologies were finalised during the period under review.

2 898 terminologies developed

Achieved. 2 898 HSEMS were finalised during the period under review.

925 terminologies developed

926 terminologies were finalised during the period under review.

1 491 terminologies developed

1 491 Life Orientation terminologies were finalised during the period under review.

700 terminologies developed

700 Elections terminologies were finalised during the period under review.

23

PROGRAMME 4: CULTURAL DEVELOPMENT

OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector



Signing of Continental Multilateral Treaty (Charter for African Cultural Renaissance)

Draft Cabinet Memorandum for ratification

The approval was obtained in October and the work was only started in December 2012

Late appointment of a service provider to develop the strategy to implement the Charter, which would be attached to the Cabinet Memorandum. Also further consultation with key stakeholders . The first draft of the Cabinet Memorandum is expected to be finalised by first week of March 2013

Implementation of the South Africa -French Seasons

Continuation of hosting the French Season Activities in SA

Achieved - French Season Activities in SA continued and were concluded in the Closing Ceremony which was held in Durban on the 17 November 2012.

24

PROGRAMME 4: CULTURAL DEVELOPMENT

OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector



Number of partnerships supported and implemented in the Cultural Industries

Implementation of the South African Literary Awards

Achieved - Project successfully implemented on the10 November 2012 in Bloemfontein

Number of institutions established and supported

Finalise the necessary process towards hosting the FEPACI Congress.

Achieved - Funds have been transferred to host the FEPACI Congress, planned for February 2013. The Provincial Departments and NFVF are attending to the issue of establishment of film commissions.

25

PROGRAMME 5

OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio-economic development, social cohesion and national identity



Number of policies/ legislative instruments developed and/or reviewed to achieve the objective

Ministerial and Cabinet approval (Digitization Policy)

Costing of Policy finalised in December 2012

The delay was due to a need for more elaborate research than expected

Finalization of the costing (Underwater Cultural Heritage Policy )

Costing of Policy finalised in December 2012


Preparation for for the 12th Board meeting of the AWHF.

The 12th Board Meeting of the African World Heritage Fund was held in December 2012


26

PROGRAMME 5




Number of agreements implemented

Convene an Interdepartmental meeting with NDT

An interdepartmental meeting with NDT was not convened

Due to some commitments in the period under a review . A meeting will be scheduled in the last quarter.

Number of heritage institutions established

(1) Site clearance 20% completed (Sarah Bartmann Centre of Remembrance )

Final budget received from the Department of Public Works

Approval of final budget by end of 4th quarter

27

PROGRAMME 5


INDICATOR 2ND QUARTER TARGET


Number of government gazette publications on standardized geographical names

One (1) Government Gazette publication by 31 December 2012

Achieved - Gazette was published on 02 November 2012

Number of national flags and flag poles installed in schools

500 National flags and flag poles installed in schools

Only 1 flag was installed for the Opening of the Steve Biko Centre in King Williams Town..

Service provider was not appointed as yet however it anticipated that service provider will be appointed before end of February 2013 to carry out the project

28

PROGRAMME 5OBJECTIVE: Preserve and promote cultural heritage through the commemoration and celebration of historic and national days as well as the popularisation of national symbols



Number of national symbols exhibitions and workshops held

2 workshops on national symbols held

Achieved - 2 workshops on National Symbols were facilitated on the 4th and 24th October 2012

Number of educational publications approved, produced and distributed

1 educational publications on national symbols approved, produced and 75 000 distributed

One publication on national symbols was approved and only 15 were produced and distributed to the Heraldry Advisory Council.

The distribution of the 100 000 booklets will be activated and completed during the month of February 2013 through a partnership with GCIS.

29

PROGRAMME 6

OBJECTIVE: Archives and record management



Proportion of archival records accessed and consulted

90 percent (%) of requests received to be processed within 30 days

Achieved (100%)

Achieved - 100% completed (07 requests were received and dealt with)

Number of Oral History projects conducted

Planning for Oral History project

Achieved (100%) Achieved - Oral History Schools Project with Schools in Botshabelo was concluded and presentations were done by learners at the Annual Oral History Conference in Mangaung. A follow up refresher was done with learners in Mahikeng who also presented their Oral History Projects in Mangaung. An Oral History Conference took place in Thaba Nchu from 8-11 October 2012

30

PROGRAMME 6




Functional NAAIRS system

Target according to the cost analysis provided by SITA

Not Achieved Total project status = 36 %. It was requested during the business process work sessions that SITA should do an investigation regarding ICA Atom. This impacted on the Blueprint Stage.

Number of policy frameworks (and/or briefs) developed and/or reviewed

Submit draft strategy for approval ( National Brail Strategy )

Achieved (100%)

Draft strategy circulated for further inputs and memo for approval of all policies and strategies drafted

31

PROGRAMME 6




Number of exhibitions showcased

Annual LIASA Conference, October 2012

Achieved (100%) An exhibition was done at the Annual LIASA Conference from 1 - 4 October 2012

Number of Community Libraries built

2 new Libraries built Achieved (100%) 5 new libraries completed- Qhudeni in KZN - Musina Nancefield, Vlakfontein & Molepo in LP- Mt Ayliff in Eastern Cape

Number of Community Libraries upgraded

10 existing library structures upgraded

Achieved (100%) 11 library upgrades were completedEC completed 5 (Alicedale, Alexandria, Seymour, Bushmen's & Fort Beaufort);KZN completed 1 (Loskop library);MP completed 3 (Middleburg, Ermelo & Shatale); NW completed 2 (Huhudi & Ganyesa)

32

PROGRAMME 6

•OBJECTIVE: Archives and record management





Number of Library material purchased

200 000 library material purchased

Not Achieved (100%)

60 116 Library material purchased: EC – 1072; FS - 5 733; GP - 10 407; KZN - 4 752; LP – 0; MP - 19 700; NC - 12 956; NW – 0;WC - 5 496

Waiting for invoice from the service provider. Books to be purchased have been identified. Purchase to be done before the end of the 4th quarter. Progress and reporting to be done monthly

33

RISK MANAGEMENT REPORT FOR THE THIRD QUARTER

STRATEGIC RISK MITIGATION STATUS AT DEPARTMENTAL LEVEL- 3RD QUARTER

MITIGATION RESULTS AS AT DECEMBER 2013

Social Cohesion Summit held. Summit resolutions currently rolled out.

Heraldry Council, Library Council and National Archive Council established and functional

Heraldry Act review in progress

Quarterly financial reviews by Internal Audit for progressive remedial action in place

Quarterly review of financial and non-financial information of all Public Entities currently

rolled out

Selection and placing of vacant funded executive position addressed

Strategic Development and training rolled out on target

Reputation Risk Register maintained to assess and respond media releases with adverse

impact on the Department.

Loss Control Committee, Disaster Recovery and Business Continuity Committee's functional

Departmental Back-up system for e-mail archiving in place

Transversal Contract Management reviews and monitoring progressively assessed

Legal compliance training on contractual commitments rolled out and applied

Artwork accounted for in the Departmental Asset Register

OPERATIONAL RISK MITIGATION STATUS AT DEPARTMENTAL LEVEL- 3RD QUARTER

OPERATIONAL MITIGATION RESULTS AS AT 30TH DECEMBER 2012

The PMDS assessment form has been modified and is being used for

assessment of levels 1-12

Operational Policies finalised and in place( Safety and Health, Security,

Transport & Accommodation and the Artworks policy )

A Security check-point on the ground floor(install metal detectors and x-ray

machine) established

Centralised Payment Function currently in the roll-out test phase

Human Language Technologies Projects opportunities of training and

experience, funding to 2 new projects have been approved and appointed.

Collaborations with Department of Basic Education on the translation of

picture books rolled out

The migration of the Terminology Management System ( Trados Multi-term)

is 100% complete and is available on the departmental server.

THANKS

Documents

2012/13 3 rd QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW Sibusiso Xaba Director-General: Arts and Culture