PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE On ARTS

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PRESENTATION TO THE PARLIAMENTARY PORTFOLIO
COMMITTEE On ARTS CULTURE BY
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Table of Contents
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• Purpose of the Presentation
• Vision and Mission
• Key Strategic Objectives and their Performance
  Overview
• 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

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Purpose of Presentation
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• 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 Committees 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.

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Vision and Mission of PACOFS
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• Vision
• To be an ultimate professional performing arts
  destination.
• Mission
• Presentation of quality transformed
• performing arts.

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Background and overview
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• PACOFS Councils
• Council Activities Responsibilities
• Strategic Plan, Annual Performance Plan and
  Infrastructure Master Plan for 2012/13, were done
  and tabled by 31 Jan 2013.
• Signing of Share Holders Compact 2012/13 with
  the Minister of DAC - Mr. Paul Mashatile on
  02 April 2013 at Castle in Cape Town.
• Annual Report 2012/13 was submitted and tabled to
  DAC on the 28 August 2013.
• Council and Management Strategic Workshop was
  held on 17 18 October 2013.

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Key Strategic Objectives and their Performance
Overview
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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
 
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Key Strategic Objectives and their Performance
Overview cont
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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
 
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Artistic PROGRAMMES (Highlights for the year)
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• INTERNATIONAL EXCHANGE PRODUCTION
• Tsoho Dance group Zimbabwe (21 27 October
  2013)
• PARTNERSHIPS / CO-PRODUCTIONS (Sand du Plessis
  Theatre)
• 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)
• 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)

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INFRASTRUCTURE / CAPITAL PROJECTS
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• COMPLETED INFRASTRUCTURE PROJECTS
• 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
• CURRENT INFRASTRUCTURE PROJECTS
• Fire and Smoke Detection System (in progress)
• FUTURE INFRASTRUCTURE PROJECTS
• Upgrade of the Security Entrance
• Workshop Theatre Relocation of the existing
  workshop
• Mechanical Ventilation and Air-conditioning
  System for the Complex

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ACTUAL vs. budget as at 31 march 2013
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Description 2013 Actual (R000) 2013 Budget (R000) 2013 Variance (R000) Variance Explanation
Total Revenue 47 802 58 658 (10 856) Shows with low revenue and under recovery on Programme 1
Total Expenditure (58 149) (58 658) 507 We have 0.88 underspending on Expenditure
Surplus / (Deficit) for the year (10 349) - (10 349) Shows with low revenue and under recovery on Programme 1

BUDGET vs. ACTUAL (HALF YEARLY REPORT) YTD 2013/14
BUDGET vs. EXPENDITURE PER PROGRAMME ORIGINAL BUDGET HALF YEAR BUDGET HALF YEAR ACTUALS BUD vs. ACT VARIANCE HALF YEAR FORECAST FULL YEAR FORECAST VARIANCE EXPLANATION
 2013/2014 R '000 R '000 R '000 R '000 R '000 R '000 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
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REPORT OF THE AUDITOR GENERAL
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• 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.

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Emphasis of Matter BY THE AUDITOR GENERAL
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EMPHASIS OF MATTERS ACTUAL FINDINGS CORRECTION PLAN ESTIMATED DUE DATE
1. Irregular Expenditure Lack of skills and risk assessment in SCM resulted in (R23m) irregular expenditure Currently under investigation by internal audit and have appointed SCM Manager Nov 2013
2. Fruitless and Wasteful Expenditure Salary paid to employee on suspension of CEO (R2.4m). This is the issue that was not attended by previous management and council Currently under investigation by internal audit Nov 2013
3. Predetermined Objectives Lack of useful information resulted in 43 major variance could not be supported by corroborating evidence. Monthly management accounts and GL reconciliations have been implemented Implemented Since Sep 2013
4. Internal Audit Concerned about the burden on Acting CEO, while holding CFO Interview date for CEO position has been set on 14 15 Nov 2013 Nov 2013
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REPORT ON OTHER LEGAL REGULATORY REQUIREMENTS
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• Predetermined Objectives
• Material misstatements in annual financial
  statements were identified and corrected by
  management.
• Expenditure Management
• Monthly management account has been developed and
  implemented to
• monitor actual expenditure against budget
  to avoid the overspending.

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Institutional Challenges
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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.
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INFRASTRUCTURE - PICTURES OF COMPLETED PROJECTS
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CONCLUSION
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• Thank You
• All !!!