DEPARTMENT OF ARTS AND CULTURE 5/19/2019 DITSONG MUSEUM ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 12/04/2016

PERFORMANCE OVERVIEW (as at third quarter of 2015/16)

THREE YEAR PERFORMANCE OVERVIEW 2012/13 2013/14 2014/15 Achieved 66% 73% 64% Not achieved 34% 27% 36%

INCOME AND EXPENDITURE TRENDS 2012/13 2013/14 2014/15 R’000 Income 68 551 71 556 75 954 Government Grant 61 857 63 208 67 054 Own Income 6 694 8 347 8 902 Expenditure (83 544) (67 060) (83 662) Surplus/Deficit (14 993) 4 496 (7 708)

AUDIT OUTCOMES DITSONG 2012/13 2013/14 2014/15 Audit Outcome Qualified

OUTCOMES OF THE MEETING WITH THE DAC The entity’s Chairperson was requested by the DAC to outline an action plan on resolving the qualified audit opinion. The qualification was based on these four major issues Property, Plant and Equipment Heritage Assets ( GRAP 103) Receivables from exchange transactions and Irregular expenditure The entity indicated that most of the issues that led to the qualified audit report is misrepresentations that emanated from prior year events, to which they committed to appoint a forensic audit team, The entity indicated that another measure to resolve this was the increase in the number of Audit Committee meetings to fast track the review of processes completed The Chairperson of the entity committed to resolving the challenges that are involving the opening balances or issues pertaining to the years prior to their appointment to be completed at least by October 2016 The current issues were committed to be finalized by the end of July irrespective of the term of the Council as it ends 31 July 2016 The DAC will schedule a follow up meeting with the entity

CHALLENGES FACING THE ENTITY AS OF APRIL 2016 The entity has the following challenges: GRAP 103 compliance staff retention and the budget constraints, permanent exhibitions knowledge management, Litigation prone contract management financial sustainability audit fee that the National Treasury is not subsidizing audit inconsistencies year after year Refer to slide 59 and 60 of the Ditsong presentation for details

OUTCOMES OF THE ANALYSIS OF THE ANNUAL PERFORMANCE PLAN Performance targets do not adhere to the SMART (specific, measureable, attainable, reliable and time bound) principle In dealing with the audit findings the entity mentioned GRAP 103 and did not emphasize their approach on the other 3 issues that led to the qualification, i.e. property plant and equipment, receivables from exchange transactions and irregular expenditure. In the light of the above the DAC has to arrange a follow up meeting with the entity

GOVERNANCE DITSONG MUSEUM 2012/13 2013/14 2014/15 2015/16 (to the 3rd quarter) Number of Council members 7 9 8 6 Number of Council meetings 5 2 Number of Council committee meetings 3 4 Attendance rate of Council meetings 68% 71% 67% Number of Audit Committee meetings Number of Management meetings Number of Staff meetings 1 -

DEPARTMENT OF ARTS AND CULTURE 5/19/2019 THANK YOU