 Legislative Framework  Corporate Governance  Performance Overview  Operational Overview  Report of The Auditor General  Budget vs Expenditure Overview  Human Resources  Conclusion PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

 Declared a Cultural Institution in terms of Section 3 of the Cultural Institutions Act (Act 118 of 1998)  Listed as a Schedule 3A National Entity in terms of the Public Finance Management Act (Act 1 of 1999) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

Vision, Mission & Value  Vision  To be a leading performing Arts and celebration destination that provides access to all, to participate and experience cultural and arts activities across the Free State.   Mission  To use the arts as an instrument to encourage social cohesion and national building, through promotion, recognition and preservation of local and national heritage.  To stimulate economic interest, participation and appreciation of art across racial barriers while soliciting international role players.   Values  PACOFS is committed to becoming a Performing Arts Centre that upholds constitutional values as well as Batho Pele Principles. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

Organizational Structure PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER PACOFS COUNCIL Audit & Risk Committee Finance Committee HR and Remuneration Committee Artistic Committee Chief Executive Officer (EXCO) Chief Artistic Director (EXCO) Chief Financial Officer (EXCO) Internal Audit

Strategic Goals/objectives PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE SEPTEMBER

 Operational / Governance Achievements:  Established relationship with Free State Province (DSACR) Good relationship brought some of MACUFE activities to PACOFS In Lesedi FM Jazz Joint = 19 productions In Andre Huguenet = 9 production In Studio 1 = has been used as Green Room In Studio 2 = 31 productions Orchestra Rehearsal room = 15 Film shows Free State Boxing Festival 2015 – Live broadcasting by SABC 2 & 9 Radio Stations  Calm / stabilised employee restless  Brought spirit of work commitment to staff  Financial Achievements - deficit reduction:  R10,349  2014 – R 6,393  2015 – R 3,205  Artistic / Business Development  A Distant Drum  First Stages  The Triumph  Development Programme  Two music school and 1 drama and Seven community group link to festival PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

 Predetermine Objective:  Programme 2:Artistic  2013/14 Reliability of reported performance information Overall, 48% of the targets were not reliable because I was unable to obtain sufficient appropriate audit evidence for 37% of the targets. In addition, 11% of the targets were not valid, accurate and complete when compared to the source information or evidence provided. Usefulness of reported performance information A total of 29% of the reported indicators and targets were not consistent with those in the approved annual performance plan.  2014/15 Reliability of reported performance information Significantly important targets were not reliable when compared to the source information or evidence provided. Usefulness of reported performance information Insufficient reasons for variances between planned and actual achievements reported in the annual performance report were given for 100% of the targets PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

14 Indicators2010/112011/122012/132013/142014/15 Number of audiences attending productions Number of productions staged per year Number of festivals staged per year Number of prospective artists trained 20 12

 Predetermine Objective:  Programme 3:Technical services  2013/14 Reliability of reported performance information I was unable to obtain the information and explanations I considered necessary to satisfy myself as to the reliability of the reported performance information. Usefulness of reported performance information A total of 29% of the reported indicators and targets were not consistent with those in the approved annual performance plan.  2014/15 Reliability of reported performance information Significantly important targets were not reliable when compared to the source information or evidence provided. Usefulness of reported performance information Insufficient reasons for variances between planned and actual achievements reported in the annual performance report were given for 100% of the targets PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

15 ChallengesPossible SolutionsAlready made Interventions Lack of effective Leadership based on a culture of honesty, ethical business practices and good governance, protecting and enhancing the best interest of the entity The appointment of CFO Council is looking into the situation Lack of reporting skills in managementTraining on key skillsSkills development assessment Production Funding/Grants (In-House Shows)Identify new revenue streams Part of Turnaround Strategy 2015/16 Theatre / Stage Truck (Outreach Programmes) Business relationship Engagement has been established with DSACR - province Lack of commitment from management Implement performance management Part of Turnaround Strategy 2015/16 Institutional Challenges

 Opinion by the Auditor General  2010/11 - Qualified opinion with matter of emphasis  2011/12 - Qualified opinion with matter of emphasis  2012/13 - Unqualified Audit Opinion with matter of emphasis  2013/14 - Unqualified Audit Opinion with matter of emphasis  2014/15 - Unqualified Audit Opinion with matter of emphasis  Emphasis of Matter  Irregular Expenditure  Financial sustainability  Compliance with Legislation  Late submission of unaudited financial statements to AG  Lack of Audit Committee functionality  Lack of internal audit functionality PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER

1. The vacancies at the finance department, including the CFO, Marketing Manager positions, impacted significantly on the performance of the entity 2.Lack of Human Resources policies have increase instability in the entity 3.Poor performance of Human Resource department has a great impact on staff well being 4.Lack of Performance contracts, Personal Development Plan and skills audit has negative impact on the performance of the entity PACOFS PRESENTATION TO THE COUNCIL MEMBERS 30 SEPTEMBER

27 PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

Thank You All !!! PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER