1. PRESENTATION TO THE PORTFOLIO COMMITTEE 25 SEPTEMBER 2015 1

2. STAFFING … Number of filled positions – 189 _ Management & professional staff – 19 – Administration and skilled staff – 145 – Auxiliary staff - 25 RaceManagement & Specialists Administration & professional Auxiliary staffTotal MaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal African2764471958559144 Asian--1---101 Coloured--1---101 Whites5517151-232043 Agency of Department of Arts & Culture 2

3. STAFFING …. 3

4. 32 Casual workers (mostly as Guides) and 30 interns, of which 26 are employed for GRAP103 project. The organisation is currently re-aligning the structure to the revised strategy. There is a possibility that the above-mentioned number of vacancies may change. Agency of Department of Arts & Culture 4 LevelPost establishmentCurrentVacancies Executive Management550 Senior Management862 Middle Management & Specialists1192 Supervisors and High Skilled564412 Lower level11310013 Very low skilled95258 Sub-total28818937 Interns and casuals0620 Total28825137

5. PRE-DETERMINED OBJECTIVES : PERFORMANCE RESULTS Out of the 58 planned performance indicators: – 37 (64%) have been achieved, of which 19 were exceeded. – 21 (36%) indicators have not been achieved. The factors that contributed to non-achievement include: – moratorium on filling vacant positions – lack of funding to build permanent exhibits, leading to DMSA receiving inadequate income from the use of its facilities. 5

6. Council Milestones under current year Review of strategy, structure and processes of the Institution Increase financial sustainability of the Institution Human Capital transformation Centralisation of the Corporate Governance Function Restoration and Maintenance Programme (RAMP) Implementation of GRAP 103 (Heritage Assets) Enhanced stakeholder relations Governance Committees functional Policy review register kept up to date Decentralisation model adopted and being implemented through delegation and Realignment project Hosted the following exhibitions: – Botswana Arts and Crafts – Steve Biko Created direct partnerships with – National Heritage Council on 60 th anniversary of the Freedom Charter dialogue – The China year in South Africa Agency of Department of Arts & Culture 13

7. …Council Milestones Performance Information Outputs for 2014/15 compared to 5 year average outputs : GRAP 103 took precedence in 2014.15 Specimens and objects curated and catalogued this year about – 33 072 Number of heritage objects preserved – 59 696 (Average -29 579) Number of research programmes conducted - 40 (Average - 38) In 2014/15 Heritage reference and library services exceeded many targets i.e. 13043 reprints data-based, 107177 slides, reels, photographs &specimen entries digitised, 28 241 library collection items inventoried & conserved and 2659 periodicals accessioned. Public Engagement Number of exhibitions constructed and/or hosted - 26 temporary – no permanent exhibitions/displays showcased – (Average - 25) Number of outreach programmes undertaken 39 (Average - 25) Number of media liaison and articles produced – 4 articles, 5 adverts and 3 interviews- due to no marketing staff – (Average -10) Number of events and festival held- 53 (Average - 41) Number of public and professional lectures hosted – 16 (Average - 4) Agency of Department of Arts & Culture 14

8. VISITOR NUMBERS 2009/20102010/20112011/201220102/20132013/20142014/2015 Local243 127196 585323 301358 904425 012466 833 International15 98411 44018 34219 68522 34517 445 TOTAL259 111208 025341 643378 589447 357484 278 8

9. 9 DNMMHDNMCHDNMNHDKMDTMCDPMDWPAMDSSMTOTAL Paying visitors - Domestic (general public etc.)24 821 1682816784850848511670521673 548 Paying visitors - International( gen public, tour groups)06210291621014400017 445 Participants/visitors engaged in educational activites presented at or by museum44046926264251459915833510054319261710 Participants involved inoutreach educational activiites0497748342328238412015410014897 Visitors at exhibition openings100450120350000705 Visitors at free commemorative days1505662387672700127913537296 Free entry (concessions)31231021312552682371321022 829 TOTAL VISITORS31 14212 79151 83623 03211 26117 30422 1018 963178 430 DMSA functions (conference centre hire and corp functions)2841077702020108114010378 Participants / visitors at private functions07378001865270 00040963279 715 Coffee Shop/ Restaurant patrons0000006931505715 750 TOTALS31 42621 24652 53823 03213 327287 30431 31724 083484 273

10. FORTH-COMING EXHIBITIONS National Orders & Symbols (February 2016) Russian Exhibition (October 2015) World War I (December 2015) Dinosaur (March 2016) Tshwane (March 2016) Ceramics (November 2015) Arts and Craft of Botswana (September ‘15 – March 2016) Agency of Department of Arts & Culture 10

11. Agency of Department of Arts & Culture 11 Income and Expenditure trends 2010/112011/122012/132013/142014/152015/162016/17 Revenue60 57761 80568 55181 57475 95578 95583 181 Expenditure79 30666 91983 60278 83983 66378 95583 181 Surplus/deficit-18 729-5 114-15 0512 735-7 70800

12. Agency of Department of Arts & Culture 12 INCOME Sources of income2010/112011/122012/132013/142014/152015/162016/17 Grant Transferred51 24254 41161 85762 75467 45269 40272 594 Trading Revenue3 4283 4193 4413 8194 5024 9505 181 Investment Income 3 4771 9651 7511 8162 2401 8001 895 Other3 4302 0101 6592 7181 7602 8033 511 TOTAL 60 57761 80568 55171 10775 95478 95583 181

13. Agency of Department of Arts & Culture 13 EXPENDITURE Sources of income2010/112011/122012/132013/142014/152015/162016/17 Compensation of employees 47 92543 85353 07951 45253 20761 98965 398 Goods and Services30 16021 73329 84026 45827 62916 96617 783 Depreciation1 2221 333683930104300 Total79 30766 91983 60278 83981 87978 95583 181

14. 2014/2015 AUDIT OUTCOME REMEDIAL PLAN Qualified audit opinion on Property, Plant and Equipment, Heritage assets, Receivables from exchange transactions Irregular expenditure Agency of Department of Arts & Culture 14

15. Material misstatementImpact R current year Impact R prior year Financial statement item Finding (Include a brief description of the misstatement as per the findings and the auditor’s report. Include the reasons for the auditee not correcting the misstatement when applicable.) Occurred in prior year (Insert Yes / No) Material misstatements not corrected Non-current assets Heritage assetsHeritage assets are not correctly valued as at year end due to the following:  Management did not determine the fair value of some of heritage assets which are regularly traded in the market.  No disclosure was made on the annual financial statement for heritage assets whose values could not be determined at initial recognition and where there is no market.  No evidence that an assessment for impairment was performed at reporting date. NoLimitationN/A Moveable assetsThe book value of moveable assets is not fairly stated due to the following:  The assets which were considered in the review of useful lives and residual values could not be physically verified for existence  Not all assets were considered for the assessment of useful lives and residual values. YesLimitationN/A 15

16. The book value of moveable assets is not fairly stated due to the following:  The assets which were considered in the review of useful lives and residual values could not be physically verified for existence  Not all assets were considered for the assessment of useful lives and residual values. YesLimitationN/A Moveable asset could not be physically verified for existence NoR1,767,466N/A Moveable assets are not recorded in the assets register NoR3,971,727N/A Current assets Limitations in verifying the fair presentation of the trade debtors balances disclosed in the financial statements due to debtors not confirming the balances with the entity. Provision for doubtful debts computation not in line with the requirements of GRAP 104 NoLimitationN/A Revenue from exchange transactions  Management is leasing state properties at values which are significantly lower than market value.  No standardised rates are charged for different museum facilities. NoLimitationN/A 16

17. CHALLENGESINTERVENTIONS Audit findings Action plan to address the findings in place Progress thereof submitted to Council and DAC on quarterly basis Standing agenda item in monthly EXCO meetings Litigation prone contract management Contracts on government properties are now handled by DAC through PWD Unfavourable contracts being given priority by council with assistance of legal practitioners Forensic audit on litigations to be conducted in October 2015 Going concern Financial sustainability programme being developed Review the current funding model Develop a pricing and costing model for services Engage DAC and Public works on ownership of assets Develop a financial sustainability strategy Revenue enhancement plan per museum and site Commercialisation plan Fund raising strategy and plan 17

18. Agency of Department of Arts & Culture 18 CHALLENGESINTERVENTIONS Inherent GRAP 103 shortcomings Development of collection strategy aligned to strategic direction of Council and DMSA Review policies in line with new strategy Manage the risks of conservation and restoration Implement GRAP103 programme supported by appropriate IT capability for inventory, digitisation and information. Staff retention Career path Framework Training and development strategy and programme incorporating RPL Framework developed Develop a Competence Framework Develop a competitive remuneration strategy and policy Develop and implement a succession plan Performance Management System Performance system review to introduce corporate and individual integrated one

19. CHALLENGESINTERVENTIONS Outdated permanent exhibitions / increase accessibility to Museums and collections Conceptualisation and redesigning of two permanent exhibitions (Tshwane and Dinosaur) Three temporary / semi permanent exhibitions (Arts and Craft of Botswana, Ceramics and National orders) to be launched soon Community based out reach programme and exhibitions Strengthen the education programme Develop an integrated marketing and communication strategy and plan National building programmes through dialogues, colloquiums, publications etc. Partner with other spheres of government Build information management capability Absorption of utility bill of various museums Funding requested from DAC to service utility bills Suspension and termination of CEO Contract New CEO appointed. Agency of Department of Arts & Culture 19

20. Agency of Department of Arts & Culture 20 CONCLUSION Council and management commit themselves to improve on the strategies to address challenges which tend to lead to audit findings.

21. THANK YOU!!! Agency of Department of Arts & Culture 21 DITSONG NATIONAL MUSUEM OF CULTURAL HISTORY