SECOND QUARTER PERFORMANCE REPORT ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 24 FEBRUARY 2015

SECOND QUARTER PERFORMANCE REPORT

ACTING DIRECTOR-GENERAL: ARTS AND CULTURE

DATE: 24 FEBRUARY 2015

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PRESENTATION OUTLINE

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Performance Overview Budget and Expenditure Explanation of Expenditure per Economic Classification. Explanation of the Programme Performance on Key

Indicator

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PERFORMANCE OVERVIEW

First Quarter Second Quarter 0%

10%

20%

30%

40%

50%

60%

70%

80%

68%(73/108)72%(81/112)

32%(35/108)28%(31/112)20%(R 711,137

million)

44%(R1,551 bil-lion)

Achieved Not Achieved Expenditure

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BRANCH-SPECIFIC PERFORMANCE

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0%

10%

20%

30%

40%

50%

60%

70%

80%

73%(22/30)76%(19/25) 74%(26/35)

64%(14/22)

27%(8/30)24%(6/25)

26%(9/35)

36%(8/22)

58%(R 131,563 million)

44%(R43,766 million)

38%(R393,223 million) 45%(R983,764 million)

Achieved Not Achieved Expenditure

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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 September 2014 Available Spent

R’000 R’000 R’000

Administration 228,266 131,563 96,703 58%

Institutional Governance 99,808 43,766 56,042 44%

Arts & Culture Promotion & Development 1,032,876 393,323 639,553 38%

Heritage Promotion & Preservation 2,163,798 982,673 1,181,125 45%

Total 3,524,748 1,551,325 1,973,423 44%

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER PROGRAMME

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0

500

1,000

1,500

2,000

2,500

228100

1,033

2,164

132 44

393

983

Budget Expenditure

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER ECONOMIC CLASSIFICATION

Economic ClassificationMain

Appropriation Expenditure Total %

2014/15 30 September 2014 Available Spent

R’000 R’000 R’000 Compensation 209,910 103,690 106,220 49%Goods & Services (include Payment for Financial Assets and Interest paid on Government Pension Funds)

386,288 212,947 173,341 55%

Provinces & Municipalities 1,032,810 521,960 510,850 51%Dept Agencies & Accounts (Current) 1,111,010 577,080 533,930 52%Dept Agencies & Accounts (Capital Works) 540,083 44,638 495,445 8%Non Profit Org 190,385 63,232 127,153 33%Foreign Government Organ 3,189 2,027 1,162 64%Households 28,405 18,471 9,934 65%Higher Education Institutions 12,870 - 12,870 0%Public Corporations 2,400 - 2,400 0%Capital Assets (Include software, intangible asset & DM’s motor vehicle) 7,398 7,280 118 98%

Grand Total 3 524 748 1 551 325 1 973 423 44%

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SUMMARY TOTAL BUDGET VERSUS EXPENDITUREPER ECONOMIC CLASSIFICATION

0

200

400

600

800

1,000

1,200

210

386

1,0331,111

540

190

3 28 13 2 8104

213

522 577

45 63 2 18 0 0 7

Budget Expenditure

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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 R104 million (49%) has been incurred as at 30 September 2014.

• Appointments in the Ministry have now been finalized. The Department is awaiting claims from the Department of Water Affairs in respect of staff in the Deputy Minister’s Office (Salaries paid from date of assumption of duty to end of September 2014).

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• A total of 9 vacancies are in various stages of being filled (Includes 2 x DDG’s, 2 x CD’s, 3 Directors, 1 DD and 1 ASD). The total expenditure per annum for these positions will be R7,9 million. The implications for the current financial year will be R2,6 million (assuming that the positions will be filled by December 2014.

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• Considering the above-mentioned scenario, the Department need to inform National Treasury. A saving has to be identified to request a virement approval in order to curb the over spending of the budget.

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Goods and Services (Include Payment for financial assets and Interest paid on Government Pension Fund)

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.

• An amount of R213 million (55%) has been spent as at 30 September 2014.

• The over spending is due to the project of Flags in every school. Treasury has granted an approval of R29 million during the Adjusted Estimates of National Expenditure (AENE) process as an additional budget for the installation of Flags.

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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 R522 million (51%) has been transferred as at 30 September 2014.

• The transfers to Provinces were based on the approved business plans.

• The actual spending per Provinces is as follows:

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SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROVINCE

Province

Division of Revenue Act, 2014 (Act No.10 of 2014)

Received by Province: Year to

date

Provincial actual payments

% Transferred of National allocation

% Actual payments of total available

R’000 R’000 R’000 Eastern Cape

109,418

53,500

34,199

48.9%

31.3%

Free State

119,013

58,037

32,534

48.8%

27.3%

Gauteng

125,608

82,456

42,882

65.6%

34.1%

KwaZulu-Natal

122,754 59,991

40,497

48.9%

33.0% Limpopo

81,010 48,862

18,692

60.3%

23.1% Mpumalanga

114,781 53,000

37,672

46.2%

32.8% Northern Cape

118,396 54,200

39,400

45.8%

33.3% North West

98,883 49,544

28,614

50.1%

28.9% Western Cape

126,347 62,167

60,507

49.2%

47.9% Total

1,016,210

521,757

334,997

51.3%

33.0%

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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.


• The high spending percentage is due to Performing Arts Institutions which are paid on a quarterly basis.

• NHC spending is high and based on their projections. The transfer is processed on a monthly basis.

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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.


• There is under spending that is realized under this economic classification. Corrective measures needs to be taken urgently by the line functions in order to improve the spending.

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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 R63 (33%) has been spent as at 30 September 2014.

• The MGE expenditure will accelerate as Treasury has granted approval to shift funds from goods and services to this economic classification.

• No funds has been transferred to Education Institutions as at 30 September 2014.

• An amount of R12,4 million has been re-classified from Higher Education Institutions to Households during the AENE process, as the beneficiaries of the bursary scheme for language and heritage sectors are the students.

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


• The high spending is due to projects which were planned to take place during the 1st and 2nd quarter of the 2014/15 financial year.

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Capital Assets (Include software, tangible assets and DM’s motor vehicle)

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.


• The high spending is due to the procurement of software licenses, the production servers for Head Office and National Archives and the purchasing of motor vehicles.

• Due to budgetary constraints under this economic classification, new purchasing requests will only be addressed in the 2015/16 financial year.

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REMARKS• The Department has spent R1,5 billion (44%) as at 30 September 2014;

• The MGE virement has been approved by Treasury to shift funds from goods and services to transfer payments (i.e. NPI’s, Provincial and Local Government, Departmental Agencies & Accounts, Higher Education Institutions and Households);

• The slow spending under Capital Works budget needs an urgent intervention from management in order to prevent under spending of the budget at year-end;

• The Adjusted Estimates of National Expenditure (AENE) process has been finalized and the Medium-Term Budget Policy Statement (MTBPS) has been tabled by Parliament on the 22nd of October 2014. An update of adjustments from the Main Appropriation to the Adjusted Estimates of National Expenditure (AENE) will be done when reporting October expenditure.

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EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS

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PERFORMANCE INDICATOR

2ND QUARTER TARGET

PROGRESS DESCRIPTION

% of people with disabilities

2% 50% women representation at SMS level and 2% PwD

% spent against approved budget

45% spending of the budget

A total amount of R1,551 billion (44%) was spent vs a budget of R3,525 billion

% of BBBEE procurement

70% of contracts awarded on BBBEE

70% of contracts awarded on BBBEE

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

10 events Managed during the reporting period i.e. Media Launch to SA/ India festival

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SELECTED INDICATORS

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2ND QUARTER TARGET PROGRESS DESCRIPTION

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

100% of councils fully constituted and inducted

62% of councils are fully constituted as at 30 September 2014

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

7 Seven visits were conducted during the second quarter namely PACOFS, Windybrow, Luthuli Museum, Msunduzi Museum, National Library, Ditsong Museum and State Theatre

Number of Community conversations held (18)

7 Community conversations 10 Community Conversations held and a launch of the program

Number of Public Platforms for Social Cohesion Advocates

3 public platforms for Social Cohesion Advocates

Five platforms for Social Cohesion advocates were hosted. Mandela Day, Woman's Day, 2 Advocates during the launch of the Community Conversations, During the Youth Dialogue in September in Mafikeng

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SELECTED INDICATORS

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PERFORMANCE INDICATOR 2ND QUARTER TARGET


Number of Cultural Seasons implemented

UK and China Seasons China Seasons: Mandela Month in Beijing China, 4-19 July. DAC sent the Soil to participate in the event. International. Book Fair, 27-31 August, DAC sent SA Writers to participate at the event. Nanning International Festival 14 to 22 September

UK Seasons: International Nelson Mandela day celebrations on the 18 -19 July 2014, participation at the Common Wealth Games: August. Edinburgh International Festival: 8-31 August 2014

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

1 development programmes held

Workshop on Women in the Arts hosted on the 29th September 2014 in Mayibuye Community Art Centre in Kimberley Northern Cape

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SELECTED INDICATORS

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PERFORMANCE INDICATOR 2ND QUARTER TARGET PROGRESS DESCRIPTION or VARIANCE/ COMMENTS

Number of artists placedin schools per year

MOU signed Approval for projects granted and MOUs drafted

Number of cultural events supported per year

08 Cultural Events implemented

08 Cultural Events implemented i.e Moretele Tribute concert

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SELECTED INDICATORS

Eastern Cape 1, National Arts Festival

North West 1, Taung Calabash

Gauteng 5 , Standard Bank Joy of Jazz;Moretele Tribute Concert;

Gauteng Pula Ya Rona; Moshito Music Conference;

National Book Week (Launch)

Mpumalanga 1, Mpumalanga Comes Alive

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PERFORMANCE INDICATOR 2ND QUARTER TARGET PROGRESS DESCRIPTION

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

Art bank: securing of space for the artworks

Through a pilot project and research process Oliewenhuis Art Museum in Bloemfontein have been identified as an entity to host the Art Bank

NACISA launched Cabinet Memo submitted

Curriculum development tender awarded

Funding activities initiated

ToR' s for curriculum development were done and presented to BSC, it was advised that they need to be reviewed. Subsequently incoming Minister also advised NaCISA Concept to be reviewed. The Cabinet Memo was not developed. Funding activities in terms of budget allocations to the various activities of the project has been approved

Number of sector organisations and skills training projects supported

4 projects implemented 4 projects implemented: MOSHITO in September, AIRCO project implemented, Script - to - Screen project implemented, establishment of CIFFSA supported

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SELECTED INDICATORS

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DAC Language policy developed

incorporation of comments Comments have been incorporated to the language policy

Number of domains for which terminology will be developed

Arts and Culture intermediate phase 873 terminologies developed;

Arts and Culture intermediate phase 6984 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 intermediate phase 1491 terminologies developed

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SELECTED INDICATORS

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PERFORMANCE INDICATOR 2ND QUARTERTARGET


Number of Language Practice Bursaries

Monitoring to universities

The monitoring visits were done to the Universities

Number of Language Practice Bursaries

Number of flag poles installed per year

2 500 2852 flags installed in 2852 schools across all provinces

The rate of installation has normalised due to midterm project monitoring and evaluation activities

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SELECTED INDICATORS

Eastern Cape Free State Gauteng KwaZulu Natal

Limpopo Mpumalanga Northern Cape

North West Western Cape

0

100

200

300

400

500

600

700

523

114

470

615

421

249

0

305

155

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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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Number of National Days hosted (7)

3 The Nelson Mandela Day was successfully held in Mthatha. The National Women's Day was successfully held at King Zwelithini Stadium in Umlazi, KwaZulu-Natal Province and the National Heritage Day was successfully at James Motlatsi Stadium in Orkney, North-West Province.

Number of Outreach projects implemented (6)

2 2 Outreach projects implemented : Visited rural schools in North West 24-28 August 2014 and in Eastern cape 1-6 September 2014

Ncome phase 2 Repaired Phase 2 roof repairs completed

Repairs Completed

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SELECTED INDICATORS

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3 Prioritised elements of OR Tambo phase 2 started

Construction begins (OR Tambo Homestead and Garden of Remembrance)

Construction of 2 roomed houses awaits SAHRA approval, stormwater drainage and landscaping work is underway at the homestead work on the family graves, legacy pathways, water features, landscaping and statue work at the memorial has started but is delayed.

Sarah Bartmann Centre of Remembrance-Beginning of construction

Construction begins ( Sarah Bartman)

Construction is at 12% and on track for completion in 2016

Bram Fisher house purchased

Appoint the contractor (Bram Fisher)

A change in decision - Bram Fischer house will now be registered under National Department of Public Works and not the National Heritage Council. A meeting has been arranged for 02 October 2014 between DAC and NDPW to outline a speedy house transfer processes

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SELECTED INDICATORS

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Number of jobs created through heritage projects

1384 job opportunities created

3067 jobs were created

Dr Moroka House project Construction begins (Dr Moroka House Project-Completed)

Dr Moroka house project has been cancelled. A DG submission to this effect with a formal letter to IDT is on route but not yet approved

Ingquza Hill Phase 1 Construction begins (Ingquza phase 1)

Revised budget of R27 242 330 from the initial budget of R15 000 000 has been presented for approval. The project is at 47% complete which is on track according to the work plan

Bhambatha Stature Progress Report A report has been generated to the effect is that the statue installed and awaiting confirmation from Presidency for official opening

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SELECTED INDICATORS

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THANK YOU

Documents

SECOND QUARTER PERFORMANCE REPORT ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 24 FEBRUARY 2015