1. 2012/13 1 st QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW 12 SEPTEMBER 2012 Sibusiso Xaba Director-General: Arts and Culture

2. PRESENTATION OUTLINE Performance Overview Key Highlights Budget and Expenditure Explanation of Expenditure per Economic Classification 2

3. PERFORMANCE OVERVIEW 3

4. COMPARATIVE ANALYSIS OF FIRST QUARTER PERFORMANCE FOR 2010/11 AND 2011/12 4

5. KEY HIGHLIGHTS PRIORITY AREA: DEVELOPMENT, PRESERVATION AND PROMOTION OF ARTS, CULTURE AND HERITAGE – Strategy on social cohesion presented to the social sector cluster on May 16 and to the Governance and Administration Cluster on June 14 The draft was approved by Cabinet on the 13 June 2012 – Cooperation with NDT The Task Team to govern a work between DAC and Department of Tourism has been established. Memorandum Of Understanding ( MOU) is being finalised – National Orders Award Ceremony was hosted on the 27th of April 2012 5

6. KEY HIGHLIGHTS PRIORITY AREA: DEVELOPMENT, PRESERVATION AND PROMOTION OF ARTS, CULTURE AND HERITAGE – The DAC has partnered with National Youth Development Agency ; – 2012 Youth Month Activities – My historic Educational Tour – National Youth Day ( June 16,2012) – The DAC partnered with several institutions on projects to celebrate Africa Day, including Visual arts by artists from the SADC region The Annual Second Scramble for Africa Conference 6

7. KEY HIGHLIGHTS PRIORITY AREA: ECONOMIC DEVELOPMENT – One Design event staged. The Eco Design Initiative exhibition was staged in Malmo – Sweden in June 2012 – Held a successful Inaugural National Carnival Workshop on the 9-11 May 2012 7

8. KEY HIGHLIGHTS PRIORITY AREA: SKILLS DEVELOPMENT – The Bursary Programme – 31 students received bursaries to pursue heritage studies – The Internship- department has increased a workforce capacity by through internship programmme – Forged partnership between department and Rhodes University by launching Integrated Heritage Human Resources Management 8

9. KEY HIGHLIGHTS PRIORITY AREA: PROMOTION OF LINGUISTIC DIVERSITY – Language Planning and Development - Drafted Ministerial submission and Cabinet Memorandum to introduce SALPC Bill to Cabinet – The 14 th National Language Forum was held, discussions were around issues of terminology development, translation and editing,literature development etc. 9

10. KEY HIGHLIGHTS PRIORITY AREA: ACCESS TO INFORMATION – Community Library Bill amended and submitted to the Office of the Chief State Law Advisors. Pre-certification opinion received from State Law Advisors on 12/6/2012 – A successful National Archives Awareness week was conducted May 2012, approximately 1200 people attended including other government departments – Partnerships created with publishers who have donated over R100 000 worth of books for the organisation of National Book Week 10

11. KEY HIGHLIGHTS CROSS-CUTTING IMPERATIVES: GLOBAL POSITIONING – Minister signed the Charter on African Cultural Renaissance – Minister signed cultural agreement between South Africa and Spain – The presentation to host the regional conference on the 40th Anniversary of the World Heritage Convention was presented to the Africa Group attending the 36th session of the World Heritage Convention 11

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

13. SUMMARY OF BUDGET AND EXPENDITURE PER PROGRAMME Programme2011/122012/132013/142014/15 ProgrammeMain Appropriation 2012/13 Expenditure June 2012 Total Available % Spent R’000 Administration209,68744,911164,77621% Performing Arts639,996124,370515,62619% National Language Services 111,85033,78778,06330% Cultural Development180,41018,255162,15510% Heritage Promotion744,243169,000575,24323% National Archives and Library Services 799,471130,687668,78416% Grand Total2,685,657521,0102,164,64719%

14. SUMMARY OF BUDGET AND EXPENDITURE PER ECONOMIC CLASSIFICATION Programme2011/122012/132013/142014/15 Economic ClassificationMain Appropriation 2012/13 Expenditure June 2012 Total Available % Spent R’000 Compensation 180,03042,478137,55224% Goods & Services 398,77158,290340,48115% Conditional Grant 564,57497,971466,60317% Agencies & Accounts 952,881259,257693,62427% Capital Works 482,95042,067440,8839% Non Profit Org 12,8733,7729,10129% Households 86,96416,07570,88918% Capital Assets 6,6141,1005,51417% Grand Total2,685,657521,0102,164,64719%

15. EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION

16. COMPENSATION OF EMPLOYEES The spending as at the end of June 2012 was at 24% During the first quarter there was a high rate of officials working overtime amounting to R469 thousands. We will monitor this expenditure in order to curb any possible over expenditure

17. GOODS AND SERVICES The expenditure was at 15% as at the end of June 2012 The expenditure will improve in the second quarter as in July, the Department received claims from the DPW relating to first quarter expenses on Municipal Services, State owned and Private leases

18. Main Appropriation 2012/13 Expenditure June 2012 Total Available % Spent Remark R’000 Normal Departmental activities 133,37448,07685,29836% Property Mngt (Prog 1)75,2181,45473,7642% Soc Coh (Prog 1)7,0545,0721,98272% Soc Coh SAGN (Prog 5)7,668727,5961% Soc Coh Heraldry (Prog 5)7,750- MGE (Prog 2)49,9702,84747,1236%Ear-marked MGE (Prog 4)113,500490113,010Ear-marked Community Libraries: Top Slice (Prog 6)4,2372793,9587%Ear-marked Total 398,77158,290340,48115% DETAILS OF GOODS AND SERVICES BUDGET

19. CONDITIONAL GRANT TO PROVINCES The expenditure was at 17% as at the end of June 2012 Funds are transferred to relevant Provinces based on the approved quarterly needs. An amount of R98 million has been transferred for the 1 st quarter The actual spending by Provinces in the first quarter amounts to R63 million (11%) of the total grant

20. CONDITIONAL GRANT TO PROVINCES Per Province: Conditional Grant Main Appropriation 2012/13 Received by Province Provincial actual payments: June 2012 Available% Actual payments of total Main Appropriation R’000 Eastern Cape78,05818,2857,69459,77310% Free State50,3046,7136,35843,59113% Gauteng56,4522,20062354,2521% KwaZulu-Natal48,61911,5623,14537,0577% Limpopo68,82221,2648,18247,55812% Mpumalanga68,8229,00011,26059,82216% Northern Cape72,39514,98610,71057,40915% North West64,97312,56913,15152,40420% Western Cape56,1291,3931,39254,7363% Total564,57497,97262,515466,60211%

21. DEPARTMENTAL AGENCIES TRANSFERS CUR (SUBSIDIES) An amount of R259 million (27% ) had been spent as at the end of June 2012 Payments to Heritage Institutions, Libraries are effected monthly and to Arts Institutions three times a year (i.e. April, August and December). No over or under expenditure is anticipated by March 2013

22. DEPARTMENTAL AGENCIES TRANSFERS CAP (CAPITAL WORKS) An amount of R42 million (9%) was spent as at the end of June 2012 This expenditure item relates to maintenance, upgrade and refurbishment of the Department’s Museums and Libraries as well as the construction of Legacy Projects through the DPW The Department has recently received approval from the National Treasury to transfer directly to the Playhouses, National Library of SA and Iziko Museums of Cape Town an amount of R140 million for Capital Works Projects. Expenditure on this economic classification will therefore accelerate in the second quarter of the financial year

23. NON PROFIT INSTITUTIONS This expenditure relates to subsidies to BASA, Blind SA and Engelenburg Arts Collections An amount of R3,7 million (29%) was spent by the end of June 2012. This is due to the fact that BASA receives a third of its allocation in April. No over or under expenditure is anticipated by March 2013

24. HOUSEHOLDS An amount of R16 million (18%) spent by the end of June 2012 This expenditure item relates to all the financial assistance projects that the Department funds during the financial year. Treasury approval has been received to fund the final IIC projects to an amount of R8,2 million The detail of projects per Programme are as follows:

25. HOUSEHOLDS (CONT) Project Name Contract Amount R’000 1 st Tranche R’000 2 nd Tranche R’000 Balance R’000 Programme 2R’000 Buyelekhaya Music Festival500 -- Technical Equipment (Tshego)340 -- Arts Access130 -- DAC Youth Month (NYDA)500350-150 Artist in School90 -- National Arts Festival Development Programme3,0002,000-1,000 Total4,5603,410-1,150

26. HOUSEHOLDS (CONT) Project Name Contract Amount R’000 1 st Tranche R’000 2 nd Tranche R’000 Balance R’000 Programme 3R’000 Bursary (University of Limpopo)800 -- Bursary (University of SA)800 -- Bursary (University of Johannesburg)800 -- Bursary (University of Zululand)800 -- S/Ben: Leave Gratuity (Once off R47 thousand) Total3,200 --

27. HOUSEHOLDS (CONT) Project Name Contract Amount 1 st Tranche 2 nd Tranche Balance Programme 4R’000 Disney on Ice Productions5,0004,000-1,000 Elelwani Project400320-80 Africa Day Celebration2,0001,500-500 SA Chapter of U-40 Africa70 - Somafco500 - Script 2 Screen Indigineous Lang Film Development1,000800-200 Eco Design1,000700-300 Total9,9707,890-2,080

28. HOUSEHOLDS (CONT) Project Name Contract Amount 1 st Tranche 2 nd Tranche Balance Programme 5R’000 Voortrekker Monument900 -- Liberation Heritage600350-250 Bursary Heritage Professionals (University of Cape Town)420200-220 S/Ben: Leave Gratuity (Once off R13 thousand) Total1,9201,450-470

29. HOUSEHOLDS (CONT) Project Name Contract Amount 1 st Tranche 2 nd Tranche Balance Programme 6R’000 S/Ben: Leave Gratuity (Once off R65 thousand)

30. CAPITAL ASSETS (MACHINERY AND EQUIPMENT) The expenditure was at R1,1 million (17%) by the end of June 2012 This budget relates to the purchasing of machinery and equipment including the ICT equipment To stimulate the spending in this economic classification, a Commitment Register has been developed for all Programmes. This budget will be centralized to Programme 1 for monitoring purposes

31. THANK YOU