1. 2012/13 3 rd QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW Sibusiso Xaba Director-General: Arts and Culture

2. PRESENTATION OUTLINE  Performance Overview  Budget and Expenditure  Explanation of Expenditure per Economic Classification  Review of Programme Performance on Key Indicators  Risk Management 2

3. PERFORMANCE OVERVIEW 3

4. COMPARATIVE ANALYSIS OF SECOND AND THIRD QUARTER PERFORMANCES FOR 2012/13 4

5. SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME AND PER ECONOMIC CLASSIFICATION 5

6. SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME ProgrammeAdjusted Appropriation 2012/13 Expenditure December 2012 Total Available % Spent R’000 Administration 212,732177,32035,41283% Performing Arts 641,686508,521133,16579% National Language Services 112,23396,92015,31386% Cultural Development 158,928100,13858,79063% Heritage Promotion 745,215520,406224,80970% National Archives and Library Services 801,676577,387224,28972% Grand Total 2,672,4701,980,692691,77874% 7 6

7. SUMMARY OF BUDGET VS EXPENDITURE PER ECONOMIC CLASSIFICATION Economic ClassificationAdjusted Appropriation 2012/13 Expenditure December 2012 Total Available % Spent R’000 Compensation 183,008130,74152,26771% Goods & Services (includes Payments for Financial Assets) 294,322248,98045,34285% Conditional Grant 564,574459,516105,05881% Agencies & Accounts 954,042780,933173,10982% Capital Works 482,950265,042217,90855% Non Profit Org 12,87311,2921,58188% Households 173,66880,83992,82947% Capital Assets 7,0333,2703,76346% Grand Total 2,672,4701,980,692691,77874% 7

8. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION 8

9. 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 3 rd 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 3 rd quarter 6 9

10. 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

11. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) Per Province: Conditional Grant Adjusted Appropriation 2012/13 Actual transfer by National Provincial actual payments Available% transferred of National allocation R’000 Eastern Cape78,058 61,785 36,979 16,273 79.2% Free State50,304 35,657 33,234 14,647 70.9% Gauteng56,452 48,290 43,901 8,162 85.5% KwaZulu-Natal48,619 42,519 39,799 6,100 87.5% Limpopo68,822 60,848 31,303 7,974 88.4% Mpumalanga68,822 51,200 51,966 17,622 74.4% Northern Cape72,395 59,890 48,761 12,505 82.7% North West64,973 54,929 42,852 10,044 84.5% Western Cape56,129 44,398 41,332 11,731 79.1% Total564,574 459,516 370,127 105,058 81.4% 11

12. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) 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

13. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) 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 2012  The reason for under-expenditure is the delay by DPW to submit claims timeously for payment 13

14. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) 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

15. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) Households  This 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 12 th December 2012 to shift funds from Goods and Services to Households for the MGE allocation 15

16. 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

17. EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS 17

18. PROGRAMME 1 OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/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

19. PROGRAMME 1 OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR3 rd QUARTER TARGETPROGRESSVARIANCE/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

20. PROGRAMME 1 OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION % 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 Izimbizo1 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

21. PROGRAMME 2: PERFORMING ARTS OBJECTIVE: To promote arts & culture in SA and mainstream its role in social development INDICATOR3 rd QUARTER TARGETPROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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 26 th October, National Field Band Championships, 6 October 2012, Youth Development programme through Arts (School Holiday Programme) 10 – 16 December 2012 21

22. PROGRAMME 3: NATIONAL LANGUAGE SERVICE OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

23. PROGRAMME 3: NATIONAL LANGUAGE SERVICE cont. OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. INDICATOR3 rd QUARTER TARGETPROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

24. PROGRAMME 4: CULTURAL DEVELOPMENT OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

25. PROGRAMME 4: CULTURAL DEVELOPMENT OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

26. PROGRAMME 5 OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio- economic development, social cohesion and national identity INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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 The delay was due to a need for more elaborate research than expected 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 The delay was due to a need for more elaborate research than expected 26

27. PROGRAMME 5 OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio-economic development, social cohesion and national identity INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

28. PROGRAMME 5 OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio- economic development, social cohesion and national identity INDICATOR2 ND QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

29. PROGRAMME 5 OBJECTIVE: Preserve and promote cultural heritage through the commemoration and celebration of historic and national days as well as the popularisation of national symbols INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of national symbols exhibitions and workshops held 2 workshops on national symbols held Achieved - 2 workshops on National Symbols were facilitated on the 4 th and 24 th 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

30. PROGRAMME 6 OBJECTIVE: Archives and record management INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

31. PROGRAMME 6 OBJECTIVE: Archives and record management INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Functional NAAIRS system Target according to the cost analysis provided by SITA Not AchievedTotal 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

32. PROGRAMME 6 OBJECTIVE: Archives and record management INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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 builtAchieved (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 completed EC 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

33. PROGRAMME 6 OBJECTIVE: Archives and record management INDICATOR3 rd QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 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

34. RISK MANAGEMENT REPORT FOR THE THIRD QUARTER

35. STRATEGIC RISK MITIGATION STATUS AT DEPARTMENTAL LEVEL- 3 RD QUARTER

36. 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

37. OPERATIONAL RISK MITIGATION STATUS AT DEPARTMENTAL LEVEL- 3 RD QUARTER

38. OPERATIONAL MITIGATION RESULTS AS AT 30 TH 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.

39. THANKS