1. FILM AND PUBLICATION BOARD’S PRESENTATION TO PC: HOME AFFAIRS ANNUAL REPORT 2010/11 13 OCTOBER 2011 1

2. OUR MANDATE 2 Derived from Film and Publications Act 65 of 1996 as amended in 2004 and 2009. FPB is mandated to regulate the: creation, production and distribution of films, games and certain publications

3. PRINCIPLES CENTRAL TO FPB REGULATION 3 Protection of children from early exposure to adult material and use in child pornography productions – child pornography punishable by law Provide consumer advice on media content – ‘we inform, you choose’ Provide designated areas for distribution of adult material (pornography)

4. MEDIA DISTRIBUTION CHANNELS REGULATED BY FPB 4 FPB INTERNET SERVICE PROVIDERS CERTAIN PUBLICATIONS CINEMA & DVD MOBILE CONTENT WASPA

5. VISION AND MISSION VISION – A credible and visible content regulator that protects consumers. MISSION – To ensure efficient and effective consumer protection through regulation of media content, while empowering, especially children through robust information sharing. 5

6. Achievements Regulatory matters (classification and compliance targets met) Achieved 73% of overall Annual Plan Outreach and awareness (Campaign Against Child Pornography) New partnerships brought into the organisation Appointment of Council Increased visibility in media and communities Developed Turn Around strategy Strengthened governance, accountability and compliance Prudent financial management 6

7. Challenges A number of IT and Research targets not achieved - deferment of affected programmes to 2011/12 FY approved by Council Limited IT capacity and ageing IT infrastructure Legal challenge by Print Media 15% vacancy rate in 2010/11 FY Conclusion of Turn Around process prior to filling of positions – all vacant posts, especially at Management level were frozen 7

8. Strategic Objectives 8 1.Enhance, integrate, and implement a constitutionally sound regulatory framework 2.Develop and maintain organisational capacity and capability 3.Form and maintain national and international partnerships, and co-ordinate initiatives that support the business of FPB 4.Position FPB as a visible and credible, professionally run organisation 5.2010 Anti-child pornography campaign – SPECIAL PROJECT

9. SO 1: ENHANCE, INTEGRATE, AND IMPLEMENT A CONSTITUTIONALLY SOUND REGULATORY FRAMEWORK 9

10. Key programmes Problematic Distributors and compliance Consumer market segmentation Regulatory repositioning External ratings convergence Government Support and Dialogue 10

11. 1. Problematic Distributors and Compliance: TargetPerformance resultsComment 7094 COMPLIANCE INSPECTIONS Achieved & exceeded7857 inspections conducted 265 Raid on non- compliant stores Achieved & exceeded907 Raids conducted 306 Cases opened with SAPS Achieved & exceeded759 cases opened Closure of 36 illegal shop/ province Achieved & exceeded 230 closures 200 000 confiscationsAchieved 230 000 confiscations recorded 1500 new distributors registered Partially achieved 1387 distributors registered 11

12. TargetPerformance ResultsComment 6000 submissions for Classification Achieved and exceeded 6 371 submissions received Classify > 95% of films games and publications Achieved – 6 414 materials classified 100% of submitted materials classified Develop strategy to deal with problematic distributors and implement it Partially achievedA draft compliance monitoring strategy developed and submitted for Council approval in 2011/12 FY Tariffs ReviewAchievednew tariffs approved by Minister 12

13. TargetPerformance ResultsComment MoU with SAFACT on storage and joint operations AchievedNone Review tariff exemptionsAchievedNone Quarterly meetings with problematic distributors AchievedBollywood and Nollywood distributors prioritised Host annual Distributors Conference AchievedNone 13

14. 2. Consumer Market Segmentation TargetPerformance ResultsComment Revise and distribute Distributor’s guide in line with revised FP Act Amendments AchievedNone Revise compliance SoPs in line with new amendments AchievedNone 3. Regulatory Repositioning Programme Conduct quarterly Classification surveys AchievedNone 14

15. 4. External Ratings Convergence TargetPerformance ResultsComment Conduct customer surveys on film classifications in cinemas Achieved65% convergence Place FPB posters in cinemas AchievedNone 15

16. 5. Government Support and Dialogue TargetPerformance ResultsComment Participate in govt planning committees for current programmes Commemorate national days with relevant departments Host two briefing sessions with DM Strengthen co-operation through partnerships, agreements and MoU Report to EA and Parliament as per compliance requirements AchievedNone 16

17. PARTIALLY/ NOT ACHIEVED IN SO1 Signing of MoU’s with law enforcement agencies – draft MoU’s in place but delay in obtaining signatures of officials (SAPS). 500 Law enforcement officers were however trained in the year Research deliverables put on hold due to capacity challenges within unit Appointment of Classifiers delayed due to nullification of the process Registration of the FPB logo as trademark finalised in 2011/12 FY 17

18. SO 2: DEVELOP AND MAINTAIN ORGANISATIONAL CAPACITY AND CAPABILITY 18

19. KEY PROGRAMMES 1.HR Management and Improvement 2.Staff incentives 3.Internal Communications 4.Internal policy and procedures compliance 5.Strategy and program co-ordination 6.Financial Management 7.Governance 8.Personnel Change and Management 9.Operational performance improvement 19

20. 20 2.1 HR Management and Improvement Programme TargetPerformance ResultsComment HR Policies: Remuneration Strategy Performance Management Policy S&T Policy Salary Administration Mentoring and Coaching Partially AchievedRemuneration Strategy and Council Performance policy Assess effectiveness of wellness programme And ensure staff participate in at-least 4 wellness programmes AchievedNone Coaching and mentoringAchievedExecutives and Snr Management enrolled for a coaching program

21. 21 2.2 Staff Incentive TargetPerformance ResultsComment Job evaluation and Remuneration strategy AchievedNone

22. 22 2.3 Internal Communications TargetPerformance ResultsComment Develop and implement Governance Framework for Internal Communications AchievedNone 2.4 Internal policy and procedure compliance Quarterly Compliance Reporting 3 Internal Audit Plan implementation Risk Management compliance Staff information sessions on new policies AchievedNone

23. 23 2.5 Strategy and Programme Co-ordination TargetPerformance ResultsComment FPB Strategic Plan Turn Around strategy and plan MTEF Submission Presentation to PC of Home Affairs on strategy Develop 11/12 Operational Plan Staff workshops, MANCO, EXCO Monthly reporting Development and submission of annual report AchievedNone

24. 24 2.6 Financial Management TargetPerformance ResultsComment Finance Turnaround strategy Improve financial admin and reporting Unqualified audit report Financial Compliance Governance Compliance AchievedUnqualified audit opinion received

25. 25 2.7 Governance Structures, Policies and Procedures TargetPerformance ResultsComment Induction programme for new Council Governance systems New media training for Council Council Charter Compliance matrix AchievedNone 2.8 Personnel Change Programme Council appointment Appointment of Council Committees Achieved4 Committees in place Operations HR and REMCO Audit and Risk Committee Finance

26. 26 2.9 Operational Performance Improvement TargetPerformance ResultsReasons for variance Finalise quarterly compliance templates Training of staff on compliance matrix Regular meetings of Governance structures (4 meetings / annum for each structure) AchievedNone

27. PARTIALLY /NON-ACHIEVED In Q3, HR Manager was dismissed for gross misconduct, led to delay in achievement of HR deliverables. New HR Manager appointed in 11/12 FY Organisation had a 15% vacancy rate – some positions not filled pending outcome of Turn-Around project – 80% of the vacancies at management level have since been filled. Council alerted to these challenges and affected programmes were deferred to 2011/12 FY. 27

28. SO3: FORM AND MAINTAIN NATIONAL AND INTERNATIONAL PARTNERSHIPS, AND CO- ORDINATE INITIATIVES THAT SUPPORT BUSINESS OF FPB 28

29. 3.1 Industry Transformation Awareness TargetPerformance ResultsComment Sectoral workshops with: MNSO’s, WASPA and ISPA on amendments publication industry LG Councillors and Council Officials / provinces AchievedNone INHOPE Membership (2 meetings) Study Tour to PEGI Participate in 1 regional and 2 international film festivals AchievedNone 29

30. SO 4: POSITION FPB AS A VISIBLE AND CREDIBLE, PROFFESSIONALLY RUN ORGANISATION 30

31. 4.1 Journalist and Press Engagement TargetPerformance ResultsComments Quarterly reports to media on activities of FPB Number of positive media monitoring reports Achieved1320 media items (54% increase from previous financial year) 31

32. 4.2 Branding Upgrade TargetPerformance ResultsComments Develop repositioning strategy Partially achieved –Draft repositioning strategy in place, awaiting approval Media Structure and Skill Programme Develop integrated Comms strategy inline with Repositioning strategy Partially achievedComponent of Repositioning strategy Media training for managers and Execs AchievedNone 32

33. 5. 2010 ANTI-CHILD PORNOGRAPHY CAMPAIGN 33

34. 5.1 2010 PROGRAMME Community Mobilization TargetPerformance Results Comments Identify rural communities to conduct anti-child pornography workshops Compliance blitz in communities Establish partnership with consumer protection groups Awareness programmes (Moral regeneration movement, religious organisations, Schools, Traditional leaders) Achieved170 000 Community members reached 26 Schools in 6 provinces Distribution of 90 070 promotional material units 36 outreach and awareness initiatives in 8 provinces Campaign Ambassadors & patron appointed 34

35. 5.2 2010 PROGRAMME Mass Media Campaign TargetPerformance ResultsReasons for variance Develop multi-media campaign targeting following platforms: SABC Radio advertorials Build in 1 soapie story line Distribute 2000 posters Partner with MDDA and reach 30 Community media outlets > 10 billboards in transit points Appoint patron and ambassadors Partially achievedLimited funds for billboards and soapie story lines. 35

36. 6. HUMAN RESOURCES: No. Of employees/ Occupation CategoryMaleFemaleTotal ACIWACIW Execs1---3---4 Senior Management 5--141--11 Support Staff19411 11147 Employees with Disabilities 1-------1 36

37. ANNUAL FINANCIAL STATEMENTS AND AUDIT REPORT

38. REVENUE R56.1m received to date as grant as compared to R39.7m received in the previous financial year. R8.6m was generated from regulation fees as compared to R7.7m in the previous financial year. Revised tariffs have been implemented from the 01 st of October 2010. Overall income received to date is R65.1m and R49.1 received in the previous period. 38

39. EXPENDITURE Administrative staff costs of R17.3m was incurred for the current year. Classifiers fees paid for the current year R3.6m. General operating expenses of R33.5m as compared to R26.5m for the previous period. The increase in operating costs was mainly due special project i.e. 2010 Anti-Child pornography awareness campaign targeted to the FIFA World Cup. A surplus of R3,664,349 was recorded during the year as compared to R2,977,995 deficit recorded in the previous’ year financial year. 39

40. 7. STATEMENT OF FINANCIAL PERFORMANCE 40 DESCRIPTION2011 12 MONTHS (RANDS) 2010 12 MONTHS (RANDS) REVENUE65,145,72549,121,984 GRANT SUBSIDY56,187,00039,797,000 REGULATION FEES8,422,9289,067,986 OTHER INCOME97,487256,998 EXPENDITURE61,481,37652,099,978 PERSONNEL EXPENDITURE27,460,65225,588,789 - Admin staff23,850,94822,635,003 - Classifiers3,609,7042,953,786 OTHER OPERATING EXPENDITURE33,569,78926,511,189 (DEFICIT)/ SURPLUS3,620,717(2,977,994)

41. AUDIT REPORT The Film and Publication Board obtained an UNQUALIFIED AUDIT OPINION. No matters of emphasis were reported by the Auditor General. Non – compliance with PFMA was reported as a result of irregular and fruitless and wasteful expenditure being incurred and reported during the financial year. (Page 98 note 25 and 26 of the annual financial statements. 41

42. FRUITLESS AND WASTEFUL EXPENDITURE – R433, 244 Fruitless expenditure of R48,738 came to the attention of the FPB. The fruitless expenditure is as a result of interest and penalties charged by SARS for late submission of the EMP201 for March 2011. R19,971 for cancellation of international flights tickets. R19,205 for incorrect printing of security paper. R345 340 provision made for penalty on non renewal of the office space rental. Necessary management action has been taken against officials responsible for this expenditure 42

43. IRREGULAR EXPENDITURE = R110, 940 R23,940 was incurred during the financial year as a result of overruns paid to a consultant. R87,000 was incurred as result of payments for security services without a signed agreement with the co-tenant. 43

44. THANK YOU