1. DEPARTMENT OF ARTS AND CULTURE
8/28/2018
DAC OVERVIEW ON THE STATE OF GOVERNANCE OF THE NATIONAL ARTS COUNCIL Presented by: Act Director-General February 2017

2. PRESENTATION OUTLINE

3. MANDATE

4. PERFORMANCE AS AT 30 SEPTEMBER 2016
National Arts Council has achieved all its 20 planned targets for the second quarter of the 2016/17 financial year.
This implies 100% achievement of targets as at 30 September 2016.

5. THREE YEAR PERFORMANCE OVERVIEW
2013/14
2014/15
2015/16
Achieved
76%
87%
100%
Not achieved
24%
13% -

6. THREE YEAR INCOME AND EXPENDITURE TRENDS
2013/14
2014/15
2015/16
R’000
Income
95,650
96,084
98,983
Government Grant
87,554
91,865
96,089
Other Income
8,096
4,219
2,894
Expenditure
(103,714)
(99,411)
(102,567)
Deficit
(8,064)
(3,327)
(3,584)

7. EXPLANATION OF DEFICIT FROM OPERATIONS
The deficit is attributable to the accounting method that is applied by the National Arts Council.
Due to the nature of the projects that are funded by the National Arts Council, the entity defrays the previous years and current year expenses from the current year allocation which results in a deficit.

8. THREE YEAR AUDIT OUTCOMES
2013/14
2014/15
2015/16
Audit Outcome
Qualified
Clean

9. STATUS OF GOVERNANCE AT NAC

10. MANAGEMENT TEAM
The National Arts Council team is operating under the guidance of the Chief Executive Officer (CEO).
The CEO is assisted by a team of five Managers who report directly to her.
The NAC has also appointed a Chief Financial Officer to administer its financial affairs .
The National Arts Council comprises of 34 employees.

11. COUNCIL
The Minister appointed the Council of the National Arts Council on 22 December 2016.
Appointment letters were sent to successful candidates. 8 out of 9 candidates accepted their appointment.
One member from the outgoing Council indicated that he is not available to serve on the new Council of the National Arts Council (for purpose of continuity).
The induction of the newly appointed Council of the National Arts Council is scheduled to take place in February 2017.

12. SELECTED GOVERNANCE STRUCTURES AND MEETINGS HELD
2014/15
2015/16
2016/17
Number of Council members 17 18
Number of Council meetings 6 2
Number of Council committee meetings 4 8 3
Attendance rate of Council meetings
90%
80%
95%
Number of Audit Committee meetings 5
Number of Management meetings
Number of Staff meetings 7

13. LEGISLATIVE CONSTRAINTS
National Arts Council Act provides for a huge number of Council members and the Council subcommittees. This is threatening the ability of the National Arts Council to sustain its governance structures.
The Act states that the grant received from the Department of Arts and Culture must be divided into the ratio of 75:25 for both disbursements and administration respectively.
The above provision implies that more money is available for disbursements and very limited funding is provided for the day to day operations of the National Arts Council.

14. OTHER ISSUES
The Department has noted a number of queries received by the National Arts Council from print media with regards to:
Allegations of maladministration pertaining to funding of Flagship projects.
Salary increment of the Chief Executive Officer and Chief Financial Officer.
A formal response on the above allegations will be furnished as requested by the Portfolio Committee.

15. DEPARTMENT OF ARTS AND CULTURE
8/28/2018
THANK YOU