PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS & CULTURE BY

TABLE OF CONTENTS • • • Purpose of the Presentation Vision and Mission Key Strategic Objectives and their Performance Overview of Council Activities and Responsibilities Artistic Programmes (Highlights for the Year) Infrastructure / Capital Projects Actual vs. Budget & Budget vs. Actual Report of the Auditor General Emphasis of Matters by the Auditor General Report On Other Legal & Regulatory Requirements Institutional Challenges Conclusion PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 1

PURPOSE OF PRESENTATION • To brief the Portfolio Committee on Arts and Culture on the overall performance of PACOFS during the 2012/2013 financial period. • To provide an overview of the activities in response to the constitutional and legislative mandate, policies, programmes and corporate plans. • To solicit the Portfolio Committee’s inputs on the strategic interventions that may be required to fulfill the constitutional and legislative mandate in order to achieve the vision and mission of the PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 2

VISION AND MISSION OF PACOFS Vision To be an ultimate professional performing arts destination. Mission Presentation of quality transformed performing arts. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 3

BACKGROUND AND OVERVIEW PACOFS Councils Council Activities & Responsibilities: Ø Strategic Plan, Annual Performance Plan and Infrastructure Master Plan for 2012/13, were done and tabled by 31 Jan 2013. Ø Signing of Share Holder’s Compact 2012/13 with the Minister of DAC - Mr. Paul Mashatile on 02 April 2013 at Castle in Cape Town. Ø Annual Report 2012/13 was submitted and tabled to DAC on the 28 August 2013. Ø Council and Management Strategic Workshop was held on 17 & 18 October 2013. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 4

KEY STRATEGIC OBJECTIVES AND THEIR PERFORMANCE OVERVIEW KEY STRATEGIC OBJECTIVES Programme 1 - To provide and maintain high quality financial management Programme 2 - To develop, educate, promote and present the arts in a functional Theatre environment Programme 3 - To ensure effective and efficient electro-technical, stage and maintenance services PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 5

KEY STRATEGIC OBJECTIVES AND THEIR PERFORMANCE OVERVIEW – CONT… PACOFS - KEY STRATEGIC OBJECTIVES Programme 1 - To provide and maintain high quality financial management Programme 2 - To develop, educate, promote and present the arts in a functional Theatre environment Programme 3 - To ensure effective and efficient electro-technical, stage and maintenance services PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 6

ARTISTIC PROGRAMMES (Highlights for the year) INTERNATIONAL EXCHANGE PRODUCTION We have hosted 14 partnerships/co-productions, such as; Moscow Ballet – International (Jun 2013) Miss Free State (Apr 2013) My vrou se man se lyk se tas (May 2013) IN-HOUSE / OWN PRODUCTIONS SHOWS (Andre Huguenet theatre) Tsoho Dance group – Zimbabwe (21 – 27 October 2013) PARTNERSHIPS / CO-PRODUCTIONS (Sand du Plessis Theatre) 7 We presented 6 in-house productions; such as Tselani and the Giant, Fame the Musical and Mandela Concert. (Apr to Oct 2013) DAC TOURING VENTURE PROJECTS – PACOFS OWN PRODUCTIONS Pacofs toured local productions such as: Dark Voice Rings – Windybrow Theatre (Sept 2013) Footsteps – Market Theatre & Stable Theatre (May & Jul 2013) Madonna Excelsior - Grahamstown National Arts Festival (Jun/Jul 2013) We shall sing for the Father Land to other Theatres – Windybrow Theatre(Sept 2013) Mafukuzella Music Production – Arts Cape (May 2013) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013

INFRASTRUCTURE / CAPITAL PROJECTS COMPLETED INFRASTRUCTURE PROJECTS Ø Ø CURRENT INFRASTRUCTURE PROJECTS Ø Sand Du Plessis Theatre: New Carpet Office Renovations: Administration Block Occupational Health and Safety: Upgrading of building to accommodate Disabled Persons (Restrooms) Workshop Theatre: New Roof and Insulation Fire and Smoke Detection System (in progress) FUTURE INFRASTRUCTURE PROJECTS Ø Ø Ø Upgrade of the Security Entrance Workshop Theatre: Relocation of the existing workshop Mechanical Ventilation and Air-conditioning System for the Complex Branding of the Theatre Building as the Public entity for DAC Implementing 3 rd phase of the Infrastructure Master Plan (Depending on availability of Capital Funding from DAC) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 8

9 Description 2013 Actual (R’ 000) 2013 Budget (R’ 000) 2013 Variance (R’ 000) Total Revenue 47 802 58 658 (10 856) Total Expenditure (58 149) (58 658) 507 Surplus / (Deficit) for the year BUDGET vs. EXPENDITURE PER PROGRAMME: (10 349) - Variance Explanation Shows with low revenue and under recovery on Programme 1 We have 0. 88% underspending on Expenditure Shows with low revenue and under recovery on Programme 1 ORIGINAL BUDGET R '000 HALF YEAR ACTUALS R '000 BUD vs. ACT VARIANCE R '000 HALF YEAR FORECAST R '000 FULL YEAR FORECAST R '000 VARIANCE EXPLANATION HALF YEAR Programme 1 / Administration 29 450 14 725 11 194 3 531 14 725 25 919 CEO Personnel Costs Programme 2 / Artistic Directorate 13 256 6 628 7 634 (1 006) 6 628 14 262 Development & Productions Programme 3 / Technical Directorate 9 867 4 933 3 915 1 018 4 933 8 848 Open Vacancies Total 52 573 26 286 22 743 3 543 26 286 49 029 Savings 3 544 2013/2014 PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013

REPORT OF THE AUDITOR GENERAL Opinion by the Auditor General Unqualified Audit Opinion, refer (Point 32) on the AG Report. Emphasis of Matter Restatement of corresponding figures Irregular Expenditure Going concern Predetermined objectives Action Plan Appointment of the CEO and Artistic Director (Interview date is the 14 – 15 Nov 2013) Financial and Supply Chain Manager positions have been filled. Strengthen internal control. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 10

EMPHASIS OF MATTER BY THE AUDITOR GENERAL EMPHASIS OF MATTERS 1. Irregular Expenditure 2. Fruitless and Wasteful Expenditure 3. Predetermined Objectives 4. Internal Audit ACTUAL FINDINGS Lack of skills and risk assessment in SCM resulted in (R 23 m) irregular expenditure 11 CORRECTION PLAN ESTIMATED DUE DATE Currently under investigation by internal audit and have appointed SCM Manager Nov 2013 Salary paid to employee on suspension Currently under of CEO (R 2. 4 m). This is the issue that investigation by Nov 2013 was not attended by previous internal audit management and council Monthly management Lack of useful information resulted in accounts and GL Implemented 43% major variance could not be reconciliations have Since Sep 2013 supported by corroborating evidence. been implemented Interview date for Concerned about the burden on Acting CEO position has CEO, while holding CFO been set on 14 – 15 Nov 2013 PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 Nov 2013

REPORT ON OTHER LEGAL & REGULATORY REQUIREMENTS Predetermined Material misstatements in annual financial statements were identified and corrected by management. Expenditure Objectives Management Monthly management account has been developed and implemented to monitor actual expenditure against budget to avoid the overspending. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 12

13 INSTITUTIONAL CHALLENGES Challenges Possible Solutions Already made Interventions Leadership (Appointment of CEO & Artistic Director) Expedition of CEO and Artistic Director Interview date already setup (14 & 15 Nov 2013) Personnel / Staff Costs (70%) Training on key skills Skills development assessment Production Funding/Grants (In-House Shows) Apply for funding from external Funders Yes, already applied Building & Maintenance Budget (Ownership) Meeting with DAC; NATIONAL & PROVINCIAL DPW Meeting with DAC Theatre / Stage Truck (Outreach Programmes) Source new/other sponsorship Request was done to DAC & NT, with no prevail. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013

INFRASTRUCTURE - PICTURES OF COMPLETED PROJECTS

CONCLUSION Thank You All !!! PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 14