FPB ANNUAL REPORT PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE OF HOME AFFAIRS

ABOUT THE FPB 10/4/20152

MANDATE 10/4/2015 Provide consumer advice that will enable adults to make informed viewing, reading, and gaming choices Make punishable the use of children in pornography or exposure thereto Protection of children from disturbing and harmful materials and from premature exposure to adult experiences 3

Media distribution channels regulated by FPB 10/4/2015 FPB INTERNET SERVICE PROVIDERS CERTAIN PUBLICATIONS CINEMA & DVD MOBILE CONTENT WASPA 4

FPB VISION AND MISSION Vision: A credible regulator that protects consumers Mission: To ensure efficient and effective consumer protection through regulation of media content, while empowering the public, especially children through robust information sharing. 10/4/20155

FPB Values Consultation Setting service standards Increasing access Ensuring courtesy Providing information Openness and transparency Redress Value for money 10/4/20156

Achievements Gazetting and implementation of FPB Guidelines Classification of 96% of material submitted Classification Internship programme Legislative review Outreach and awareness programmes reaching more than people across all 9 provinces Convergence survey result indicate 74% convergence by Gauteng Cinema goers with FPB Classification decisions Unqualified Audit Opinion 10/4/20157

Challenges Online content regulation Legislative limitations Spear public furore led to both negative and positive spin- offs for FPB – limited public awareness on role of FPB User Generated Content (law enforcement sex video, and sex videos in schools) Constitutional Court Judgement and implications for the FP Act of 1996 as amended High staff turnover Decline in content submitted for classification – either increased non-compliance or move to online content distribution space Limited financial resources 10/4/20158

FPB STRATEGIC OBJECTIVES 10/4/20159

Strategic Outcomes 1.Effective and visible monitoring of films games and certain publications 2.Consumers, general members of the public and industry informed about the mandate of the FPB 3.Effective and efficient management of FPB Operations 10/4/201510

Strategic Outcomes 1: Effective and visible monitoring of films games and certain publications 10/4/201511

Strategic Initiatives Implement content classification and labelling Distributor identification and registration Conduct compliance inspection and industry audits Implement initiatives to ensure Cyber safety / Child online protection Develop strategic partnerships and stakeholder relations Pursue international regulatory alignment 10/4/201512

Content Classification and labelling TargetPerformance ResultsComments Implement self-regulation programs for different platforms Achievedn/a Content ClassificationAchievedn/a Develop Classification Training Manual Achievedn/a Classification Internship Program Achievedn/a Finalisation of logo registration and slogan Achievedn/a Development of labelling system Achievedn/a Approval of Classification Guidelines Achievedn/a Revamp and implementation of the penalty system Partially AchievedDelays experienced due to unavailability of key distributors. Carried over to 2013/14 10/4/201513

Distributor identification and registration TargetPerformance ResultsComments Identification of unregistered distributors: 2000 Achievedn/a ISP identificationAchievedn/a Renewals: > 1500Achievedn/a Conversions to new registrations and closures: > %0% of database (i.e. 703 conversions) Partially Achieved (54%)Reduced monitoring capacity due to implementation of new structure and staff movements. Targets adjusted for 13/14 Social networks identification and trend analysis Partially AchievedCapacity challenges due to the resignation of the online compliance monitors 10/4/201514

Conduct Compliance Inspections and Industry Audits TargetPerformance ResultsComments 6000 targeted physical platform inspections Partially Achieved (94%)Reduced monitoring capacity due to implementation of new structure 2000 adhoc physical platform inspections Partially Achieved (70%)Reduced monitoring capacity due to implementation of new structure Internet Service Providers (ISPs): 1000 Partially Achieved (60%)MoU with ICASA not concluded, resulting is limited access to ISP database 10/4/201515

Conduct Compliance Inspections and Industry Audits (...CONT) TargetPerformance ResultsComments Online: 1500Partially Achieved (90%)Online monitors appointed in the middle of the FY Social Networks > 150Achievedn/a Industry Audits: 20% of registered distributors per platform Achievedn/a Compliance Initiative per platform with law enforcement Achievedn/a 10/4/201516

Implement initiatives to ensure cyber safety / Online Child Protection TargetPerformance ResultsComments Online and telephonic tools for addressing cyber safety of children Achievedn/a Implementation of filtering system Partially AchievedDesktop study undertaken, study tour deferred to 2013/14 Information Hub (develop and maintain) Achievedn/a Conclusion of MoU with at least 3 organisations for Online Child protection and issues pertaining to broad FPB mandate Partially AchievedDraft MoUs developed with DoBE, DoC, ICASA – but planned collaborations implemented 10/4/201517

Develop strategic partnerships and stakeholder relations TargetPerformance ResultsComments Review Stakeholder relations strategy Achievedn/a At least 10 formalised strategic partnerships (with a rand value of R2.5 million) Achievedn/a International PartnershipsAchievedn/a Industry/ regulators / Government Partnerships Achievedn/a Civil SocietyAchievedn/a Law Enforcement Partnerships Achievedn/a 10/4/201518

Develop strategic partnerships and stakeholder relations (...CONT) TargetPerformance ResultsComments Pursue International Regulatory Alignment Benchmarking: Africa (SADC Only) – Child online protection and classification Partially AchievedDraft report produced 10/4/201519

Strategic Outcome 2: Consumers, General members of the public and industry informed about the mandate of the FPB 10/4/201520

Strategic Initiatives Implement a Public Relations Programme aimed at profiling the FPB as a visible, credible and professionally run organisation and creating brand awareness To conduct outreach and awareness programs 10/4/201521

Public Relations and Brand Profiling TargetPerformance ResultsComments Brand Repositions Strategy Approved for implementation Achievedn/a CI Manual development finalised Achievedn/a Appointment of FPB Ambassadors Achievedn/a FPB feature in reputable publication Achievedn/a FPB External newsletter published Partially achievedExternal news letter published just after the end of the financial year. Marketing Collateral and Promotional material designed and procurement finalised Achievedn/a 10/4/201522

Outreach and Awareness programs TargetPerformance ResultsComments 4 Multi-unit Outreach programs held Achievedn/a 10/4/201523

Strategic Outcome 3: Effective and efficient management of FPB Operations 10/4/201524

Strategic Initiatives Implement Turn Around support program Implement Customer Care Centre Implement Internal Communications Plan Implement HR improvement and compliance program To amend regulation fee structure Conduct industry research to enhance regulation Develop and implement organisational Compliance and Risk management Strategy Implement organisational Performance Management and reporting, including automation of processes 10/4/201525

Strategic Initiatives (cont) Implement relevant finance and supply chain management initiatives Implement IT initiatives geared towards improvement of IT value and performance IT Program Management 10/4/201526

Implement Turn-Around Support Programme TargetPerformance ResultsComments Migration to new structure (100%) Partially Achieved (88%)Delays due to outstanding staff queries and classification of roles and responsibilities. Development and implementation of facilities management program Achievedn/a Implementation of integrated FPB Remuneration Strategy and Policy Achievedn/a Implementation of an effective change management program to support implementation of TA Strategy Achievedn/a 10/4/2015 n/a 27

To implement Customer Care Centre Implementation TargetPerformance ResultsComments Customer Care Centre Implementation Partially AchievedStrategy developed and approved, call centre implementation delayed awaiting office expansion project. Carried over to 2013/14 To implement Internal Communications Project Implementation of internal Communications Plan Achievedn/a Implement HR Management improvement and compliance programme Approved HR Strategy implementation Achievedn/a 10/4/201528

Increase revenue base by 2% through exploration of new income streams and cost savings TargetPerformance ResultsComments Amend regulation fees structure Achievedn/a Regulation fees: 35% of total revenue generated Partially achievedDeclining revenue from classification fees. Conduct industry research to enhance regulation Three Year Research Plan developed Achievedn/a Conduct desktop research on filtering mechanisms that could be adopted for internet in SA Achievedn/a 10/4/201529

To develop and implement Organisational Compliance Matrix and risk management strategy TargetPerformance ResultsComments Annual Risk Assessment and development of risk management plan Achievedn/a Annual update and implementation of 3 year risk strategy and policies Achievedn/a Rollout of projects as per risk scorecard Achievedn/a Annual update of fraud prevention and response, implementation and reporting Achievedn/a Update of Disaster Recovery and BCP, Annual tests conducted Achievedn/a 10/4/201530

Effective Performance Management System, including automation TargetPerformance ResultsComments Annual Strategic PlanningAchievedn/a Quarterly and Annual Performance reporting Achievedn/a Complete Annual Performance Plan Achievedn/a 10/4/201531

Implement relevant Finance and Supply Chain Management Initiatives TargetPerformance ResultsComments 80% compliance with SCM policy Achievedn/a Decrease irregular, fruitless and wasteful expenditure reported to the Executive Authority Achievedn/a Accountability of all assets and quarterly physical verification Achievedn/a Unqualified Audit opinion – Fruitless expenditure reported to Executive Authority Achievedn/a 10/4/201532

Implement IT Initiatives geared towards improvement of IT value and performance TargetPerformance ResultsComments Review IT StrategyAchievedn/a Quarterly Risk ReviewAchievedn/a Identification of new policies and review old policies Achievedn/a Quarterly performance reviews Achievedn/a Quarterly service providers performance review Partially AchievedQuarterly performance reports developed, process not yet automated. Carried over 2013/2014 Quarterly network and security assessment Achievedn/a 10/4/201533

IT Program Management TargetPerformance ResultsComments Review Disaster Recovery Strategy (site) Partially AchievedStrategy developed and approved, acquiring of site in progress and carried over to 2013/14. Site acquired in the second quarter or 2013/14 and testing of the site was just completed in September Develop a training planAchievedn/a 10/4/201534

HUMAN RESOURCES: NO OF EMPLOYEES /OCCUPATION CategoryMaleFemaleTotal ACIWACIW Execs Senior Management Support Staff Total Employees with Disabilities /4/2015

ANNUAL FINANCIAL STATEMENTS AND AUDIT REPORT 10/4/201536

REVENUE 37 R69.8m was received as grant as compared to R65.4m received in the previous financial year. R5.9m was generated from regulation fees as compared to R7.5m in the previous financial year. The regulation fees declined from the previous financial year due to a decrease in the number of materials submitted for classification. Overall income received to date is R75.7m and R72.9 received in the previous financial year. 10/4/2015

EXPENDITURE 38 Administrative staff costs of R31.2m was incurred for the current year. This total include Classifiers fees expenditure of R2.8m paid during the current year. General operating expenses of R53.3m excluding non cash item like depreciation expense of R2.7m. The board recorded a deficit of R11,758,116 for the year ended 31 March 2013 as compared to surplus of R3,953,966 recorded in the previous’ financial year. 10/4/2015

STATEMENT OF FINANCIAL PERFORMANCE 39 DESCRIPTION31 March 2013 (RANDS) 31 March 2012 (RANDS) REVENUE75,731,76272,965,886 GRANT SUBSIDY69,835,00065,458,000 REGULATION FEES5,458,1066,695,615 OTHER INCOME (Gains on disposal included)438,656812,271 EXPENDITURE87,489,87869,031,711 PERSONNEL EXPENDITURE - Admin staff28,477,44024,833,467 - Classifiers2,821,8802,416,439 OTHER OPERATING EXPENDITURE56,190,55841,781,805 (DEFICIT)/ SURPLUS(11,758,116)3,953,966 10/4/2015

AUDIT REPORT 40 The Film and Publication Board has again obtained an UNQUALIFIED AUDIT OPINION. Following non-compliance issues were highlighted on the Audit Report:  Changes on the Annual Financial Statements,  Tender invitation not advertised in the Government Tender Bulletin. Irregular expenditure of R 60,000 was incurred during the currents financial year, the total amount was recovered from the affected employee. 10/4/2015

41 THANK YOU 10/4/2015