2013/14 2 ND QUARTER EXPENDITURE AND PERFORMANCE REVIEW REPORT Sibusiso Xaba Director-General: Arts and Culture

2013/14 2ND QUARTER EXPENDITURE AND

PERFORMANCE REVIEW REPORT

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

2

PERFORMANCE OVERVIEW

3

Comparison of First Quarter and Second Quarter 2013-14 FY

4

Performance per Programme

5

SUMMARY OF BUDGET VS EXPENDITURE

6

Summary of total Budget and Expenditure per Programme

Programme Main Appropriation

2013/14

ExpenditureSeptember

2013

Total Available

%Spent

R’000 R’000 R’000

Administration 234,017 133,913 100,104 57%

Performing Arts 629,699 276,896 352,803 44%

National Language Services 123,692 75,216 48,476 61%

Cultural Development 221,896 115,126 106,770 52%

Heritage Promotion 867,379 336,506 530,873 39%

National Archives and Library Services

838,094 415,057 423,037 50%

Grand Total 2,914,777 1,352,713 1,562,064 46%7

Summary of Budget and Expenditure per Economic Classification

Programme 2011/12 2012/13 2013/14 2014/15Economic Classification Main

Appropriation2013/14


2013

Total Available

%Spent

R’000 R’000 R’000

Compensation 196,364 92,187 104,177 47%

Goods & Services (include Payments for Financial Assets)

469,733 193,177 276,556 41%

Conditional Grant 597,786 306,578 291,208 51%

Departmental Agencies & Accounts

1,026,394 534,152 492,242 52%

Capital Works 509,512 134,406 375,106 26%

Non Profit Org 13,581 6,785 6,796 50%

Households 94,428 84,323 10,105 89%

Capital Assets 6,979 1,105 5,874 16%

Grand Total 2,914,777 1,352,713 1,562,064 46% 8

Comparison of Budget vs Expenditure between second quarter of 2012/13 and 2013/14

9

TRANSFER PAYMENTS AND DEPARTMENTAL BUDGET VS EXPENDITURE

10

Departmental Expenditure Report

Main Appropriation

2013/14


2013

Total Available

%Spent

R’000 R’000 R’000

Compensation 196,364 92,187 104,177 47%

Goods and Services 469,733 193,177 276,556 41%

Transfers to Households 94,428 84,323 10,105 89%

Capital Assets 6,979 1,105 5,874 16%

Total 767,504 370,792 396,712 48%

11

Transfer Payments Expenditure Report

Main Appropriation

2013/14


2013

Total Available

%Spent

R’000 R’000 R’000

Conditional Grant 597,786 306,578 291,208 51%Agencies & Accounts (subsidies) 1,026,394 534,152 492,242 52%

Capital Works 509,512 134,406 375,106 26%

Non-Profit Institutions 13,581 6,785 6,796 50%

Total 2,147,273 981,921 1,165,352 46%

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EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC

CLASSIFICATION

13

Compensation of Employees

The expenditure on Compensation of Employees as at 30 September 2013 is R92 million (47%)

A total of 34 posts have been advertised since March 2013 (in

three phases) and a total of 23 posts have been filled to date. The other posts are in process of being filled

In addition, a total of 23 Interns were appointed in August 2013 Performance incentives for 2012/13 have not yet been processed -

will be finalised in the 3rd quarter

14

Goods and Services

• An amount of R193 million (41%) spent as at 30 September 2013. The reasons for under

spending is as follows:

(i) MGE funds allocated under Goods and Services. A virement approval has

been requested from Treasury to shift funds to Transfer to Households.

Treasury requested the Department

to provide the MGE various work stream plans in order for Treasury to

process the request

(ii) The claims are not received in time from DPW to process the Office

Accommodation transactions

done 15

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 quarterly based on their business plans

• An amount of R307 million (51%) has been transferred as at

30 September 2013

• The detail of spending per province is as follows:

16

Provinces and Municipalities(Conditional Grant on Community Libraries)

Per Province:Conditional

Grant

MainAppro-

priation 2013/14

Actual transfer

by National

Provincial actual payments

AvailableAmount (National)

% Transferred of National allocation

% Actual

payments of total

available

R’000 R’000 R’000 R’000Eastern Cape 72,492 31,500 33,069 40,992 43,5% 45,6%Free State 62,918 26,416 21,547 36,502 42,0% 34,2%Gauteng 63,470 35,970 22,189 27,500 56,7% 35,0%

KwaZulu-Natal 63,145 41,211 32,227 21,934 65,3% 51,0%

Limpopo 56,528 27,561 13,275 28,967 48,8% 23,5%Mpumalanga 72,521 34,859 28,956 37,662 48,1% 39,9%Northern Cape 75,596 43,966 34,525 31,630 58,2% 45,7%North West 64,058 30,705 23,070 33,353 47,9% 36,0%Western Cape 67,058 34,390 29,578 32,668 51,3% 44,1%

Total 597,786 306,578 238,436 291,208 51,3% 39,9%

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Departmental Agencies & Accounts (Cur 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 R534 million (52%) has been spent as at 30 September

2013. The spending include an advance payment processed for

PanSALB in the 2nd quarter instead of being processed in the 3rd

quarter. No over or under expenditure is however anticipated by

March 2014 18

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


2013. The under spending is due to DPW submitting claims late. The

expenditure will improve as Department has appointed the Project

Support team as an intervention to deal with the projects that are

still in progress 19

Non Profit Organisations

• This expenditure relates to subsidies to BASA, Blind SA and

Engelenburg Arts Collection

• The expenditure is R6,7 million (50%) as at 30 September 2013.

The expenditure is in line with the guideline percentage and

projected expenditure in the second quarter. No over or under

expenditure is however anticipated by March 2014

20

Households

• This expenditure item relates to all the financial assistance projects

that the Department fund during the financial year


2013. The increased spending is due to planned projects and

payment of outstanding Mzansi golden economy projects from

2012/13 in 2013/14

21

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 R1,105 million (16%) has been spent as at 30

September 2013

22

Capital Assets

• An amount of R4,4 million has been processed on the 30th of

September 2013 for the procurement of two sets of servers of

the National Automated Archival Information Retrieval System

(NAAIRS), DAC intranet and National Archives website.

However, the system posted the transaction to October

month

• In total an amount of R5,5 million (80%) under this line item

has been spent and will be reported in the third quarter 23

EXPLANATION OF PROGRAMME PERFORMANCE ON KEY

INDICATORS

24

SELECTED ENE INDICATORSPERFORMANCE INDICATOR

2013/14 TARGET

2ND QUARTER TARGET

PROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION

Number of arts practitioners placed in schools

160 Quarter reports received

160 arts practitioners already placed in schools. The quarter report has not been received yet. MoA's have been signed with six provinces except Northern Cape.

The first quarter report on the placement of the artists will be received on the 30 December 2013

Number of public art programmes supported

9 4 programmes implemented

The 4 programmes have not yet been implemented as anticipated. The Public Art programmes to be pursued have been identified and approved. In addition, MoAs for the programmes have been developed.

4 Public Art programmes will be completed by 30 January 2014 and others by March 2014

Number of jobs created through leveraging off partnerships, work streams of public art and touring ventures per year

1150 N/A 550 Other projects from which other jobs will be generated will be rolled out in the third and fourth quarter

Number of language practice bursaries awarded per year

280 Monitoring visits to universities

336 awards made to date- Monitoring visits to universities done: WSU- 25 July ; UJ- 31 July ; UNISA- 6 Aug; Zululand-15 Aug; Limpopo-22 Aug

UNISA registered more students as results of low registration fees as compared to other tertiary institutions

25

PERFORMANCE INDICATOR

2013/14 TARGET

2nd QUARTER TARGET


Number of flags and poles installed at schools per year

2500 900 200 flags installed in Gauteng. 2 flags were donated to Robertson in the Western Cape. To date, a total of 1000 flags have been installed.

Only one service provider was engaged in the project to deliver the 200 flags during the said quarter. The appointment of other service providers will be finalised by Oct 2013

Number of handheld flags distributed per year

100 000 20 000 Total of 45458 flags distributed

The demand for handheld flags was higher than anticipated from DAC public institutions such as Freedom Park and provinces

Number of heritage(legacy/monuments)projects supported per year

2 OR Tambo: appointment of contractor for OR Tambo Interpretative Centre

Appointment of a contractor pending the permit approval by SAHRA

Appointment dependent on the detailed designs estimates. The detailed designs should be approved by SAHRA. Permit application submitted and waiting for SAHRA to grant approval

Centenary: events plan developed and budget approved

Union Buildings: Mandela Statue − wax model completed

NONE

SELECTED ENE INDICATORS

26

PERFORMANCE INDICATOR 2013/14 TARGET

2nd QUARTER TARGET

PROGRESS VARIANCE/COMMENTS OR PROGRESS DESCRIPTION

Number of bursaries inheritage studies awardedper year

106 Call for bursary applications

Call for bursary applications published in national newspapers. The closing date was on 21 June 2013. 61 bursaries already awarded.

N/A

Number of jobs created in the Heritage sector per year

9382 2 082 2300 Better reporting methods by Project Managers, Public Works and IDC. More personnel were required to cater for higher number on the National events

Number of communitylibraries upgraded per year

40 5 2 libraries upgraded ( Mpophomeni and Ndulinde Library in KwaZulu Natal).

Delay in the appointment of contractors. Under budgeting in the Eastern Cape resulted in the shifting of funds meant for upgrades to new facilities. 2 Letters written to MEC's of Limpopo and North West warning them that 3rd allocation might be stopped due to under expenditure and slow performance.

Number of new community libraries built per year

16 N/A No new community libraries were anticipated to be completed in the quarter.


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PERFORMANCE INDICATOR 2013/14 TARGET 2nd QUARTER TARGET


Number of jobs createdthrough support to arts,culture and heritage events per year

9832 N/A 4 195 short terms jobs .More project had to be implemented resulting in the increase in the jobs creation

Number of touring venture projects supported per year

5 Obtain approval to implement Touring Venture i.e. obtain proposals from earmarked institutions

The submission to obtain approval to implement the Touring Venture has been drafted and is awaiting approval.

The implementation of the Touring -Venture project was crippled by the withdrawal of the R45 million by NT in 2012. Plans are underway to ensure that this is not repeated in 2013.

Number of cultural events supported per year

39 13 17 events supported internationally and locally


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PERFORMANCE AGAINST OTHER KEY APP INDICATORS

29

PROGRAMME 1OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountabilityINDICATOR 2nd QUARTER

TARGETPROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION

% of service providers paid within 30 days

100% 100% of service providers paid within 30 days

None

Audit opinion Unqualified audit opinion

Unqualified audit opinion with lesser number of findings compared to last year

None

Number of training opportunities provided

150 A total of 224 training interventions were rolled out during the 2nd quarter

Some of the training interventions that were supposed to have been implemented in the 1st quarter were only implemented in the 2nd quarter, therefore the higher number of interventions.

% of people with disabilities

1.80% 1.8% people with disabilities None

% of reported service delivery complaints internally resolved within the set parameters

70% The Presidential response rate as at 30th Sept 2013 was 95,16 %. Three cases are still pending

The three unresolved cases have been communicated to relevant programmes and will be resolved by end of 3rd quarter

% spent against approved budget

45% 46% (R1,353 million ) of budget was spent in the period under a review

Advance transfer payment to PanSALB was made before the planned payment date

30

PROGRAMME 1OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability

INDICATOR 2nd QUARTER TARGET


% Vacancy Rate (relative to approved structure)

13% Vacancy rate as on 30 September 2013 is 8.30%

Most of the posts that were advertised since April 2013 were filled in the 2nd quarter

% of capital works budget spent

50% Overall capital works expenditure is at 25% i.e. transfers payments which amount to R 128 799 023.00 (Performing Arts @ 32%; DPW Capital Works @ 16%; Property @ 50%)

Expedite spending particularly by DPW managed projects .Convene regular appraisal meeting with DPW project managers

Number of media monitoring and analysis reports generated

1 1 Media Monitoring service provider appointed (Ornico) and service rendered. The analysis part of the reports has not been completed yet.

Number of awards presented

Awards criteria approved and nominations conducted

Approval of the criteria for the Awards in November 2013 and nominations completed by 28 January 2014

31

PROGRAMME 2 OBJECTIVE: To promote arts & culture in SA and mainstream its role in social development

INDICATOR 2nd QUARTER TARGET PROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION

Number of targeted groups enrichment programmes supported

2 programmes supported Field Band Foundation Championships took place on the 28 September 2013 and Soulbent programme started in August 2013

Number of trendsetters placed in province

Quarterly reports received

Trendsetters were recruited in four provinces (KZN, NW, EC, GP) and a service provider has been appointed. Quarterly reports have not been received yet.

The Trendsetter programme will be activated by 30 October 2013

Number of provincial programmes supported though each community arts and culture forum (CACF)

Provincial programmes implemented in all provinces

Provincial programmes were not implemented in all provinces. Instead, workshops were held in all 9 provinces and 9 provincial business plans were produced

Programmes based on Business plans will be implemented by 31 December 2013

Juvenile arts access programme implemented

Consultations on the juvenile arts access programmes

Consultation meeting with Correctional Service held in July and August respectively

32

PROGRAMME 3: NATIONAL LANGUAGE SERVICEOBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation.


Number of terminologies developed per domain

ARTS AND CULTURE INT. PHASE 873 terminologies developed

ARTS AND CULTURE INT. PHASE - 873 terminologies developed as expected

Target Achieved

HSEMS INT. PHASE 2898 terminologies developed

HSEMS INT. PHASE - 2898 terminologies were developed as expected

Target Achieved

LIFE ORIENTATION INT. PHASE 1491 terminologies developed

LIFE ORIENTATION INT. PHASE - 1491 terminologies developed as expected

Target Achieved

ELECTION 700 terminologies developed

ELECTION - 2100 terminologies developed. Working meetings for Elections were held in Setswana, Sesotho & isiZulu.

Target Achieved

33

PROGRAMME 3: NATIONAL LANGUAGE SERVICE

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


Number of terminologies developed per domain

MATHS SNR. PHASE 926 terminologies developed

MATHS SNR. PHASE 926 terminologies developed as expected

Target Achieved

Number of official documents translated into and edited in all official languages

284 documents 214 documents translated/edited as per clients' specifications

Fewer request for translation of documents were received from the clients than expected

34

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


Number of programmes to support a culture of reading

NBW programme staged by 30 Sept 2013

NBW was held successfully from 2-7 September 2013

National Art Bank (NAB) established

Start process of securing space for NAB

Process has been started to secure the space for NAB through a submission for DG's approval

NaCISA established Appointment of board members completed by 30 Sept 2013

The appointment of board members for NACISA did not occur. A different approach to rolling out this initiate is being considered and as such the project plan under a review

Number of continental events participated in

2 Participated in the sixth edition of the International Symphonic Music Festival in Algeria (12-19 September 2013). The DAC also participated in the Festival for Pan African Music (FESPAM), as the country of honour, held in the Republic of Congo (13 - 21 July 2013).

Number of cultural programmes and activities supported towards servicing of agreements

4 Participated in the following activities towards servicing of bilateral agreements: SA-UK Bilateral Forum (9-10 September 2013); SA-Argentina BNC (1- 2 Aug 2013); SA-Brazil Joint Commission (29-30 July 2013); Implementation of the SA-French Season taking place in France (May- Dec 2013)

PROGRAMME 4: CULTURAL DEVELOPMENT

35

PROGRAMME 5: HERITAGEOBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio-economic development, social cohesion and national identity

INDICATOR 2nd QUARTER TARGET


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

Appointment of a service provider to conduct a cost analysis by 30 Sept 2013

The service provider to conduct a cost analysis was not appointed as planned.

The finalisation and appointment of the service provider will be done before end December 2013

National Living Heritage Policy submitted to Cabinet for approval by 30 Sept 2013

Cabinet memorandum on National Living Heritage Policy is on route for approval

Regular follow ups on the Cabinet Memorandum before the end of third quarter

National Policy on Underwater Cultural Heritage submitted to Cabinet for approval by 30 Sept 2013

Cabinet memorandum on National Policy on Underwater Cultural Heritage was submitted to the Minister for approval

Delays in approval process. Regular follow up on the Cabinet Memorandum before the end of third quarter

Number of historic events hosted

Mandela Day hosted on 18 July 2013

The Nelson Mandela Day event was held in Qunu Eastern Cape on 18 July 2013

36

PROGRAMME 5: HERITAGEOBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio-economic development, social cohesion and national identity

INDICATOR 1st QUARTER TARGET


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

National Digitisation of Heritage Resources Policy submitted to Minister for approval by 30 Sept 2013

Cabinet memorandum on National Policy on the Digitisation of Heritage Resources was submitted to Minister for approval

Target Achieved

National Heritage Human Resources Development Strategy submitted to Minister for approval

Cabinet memorandum on National Heritage Human Resources Development Strategy was submitted to Minister for approval

Target Achieved

Submission on Cultural Laws Third Amendment Bill to the Minister and Cabinet for approval by 30 Sept 2013

Project put on hold until the review of White Paper is finalised

Number of national days hosted

Heritage Day celebrated 24 September 2013

The Heritage Day was celebrated in Mdantsane on 24 September 2013

37

PROGRAMME 6: ARCHIVES AND RECORDS

OBJECTIVE: Archives and record managementINDICATOR 2nd QUARTER

TARGETPROGRESS VARIANCE/COMMENTS or PROGRESS

DESCRIPTIONNumber Oral history projects conducted

1 2 Oral History projects conducted (Training of learners on oral history related matters in the Northern Cape and in all other provinces

Number of audio-visual formats inventoried

100 1019 Videos inventoried. 203 Reels Film masters accessioned and inventoried. 749 Sound recordings inventoried. TOTAL 1979

Number of Archival outreach programmes presented

1 3 out reach programmes were rolled out i.e. in the Western Cape during August 2013; in Mpumalanga during the Women's day celebrations; and in the Eastern Cape, Mdantsane during the Heritage day)

Number of Library materials purchased by provinces

40 000 56 120 library materials were purchased in four provinces.

None

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THANK YOU

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Documents

2013/14 2 ND QUARTER EXPENDITURE AND PERFORMANCE REVIEW REPORT Sibusiso Xaba Director-General: Arts and Culture