1. OVERVIEW NATIONAL ARTS COUNCIL
DEPARTMENT OF ARTS AND CULTURE
9/20/2017
OVERVIEW NATIONAL ARTS COUNCIL
DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 17/04/2018
A total of 68%

2. PRESENTATION OUTLINE Strategic overview Review of performance
Non-financial
Financial
Audit improvement plan
Governance
Update on the NAC Forensic Investigation
Challenges and interventions

3. DEPARTMENT OF ARTS AND CULTURE
2/23/2019
STRATEGIC OVERVIEW

4. OUTCOME ORIENTED GOALS
THE STORY LINE
Vision
A vibrant sustainable arts community that enriches lives through the creative expression of South African culture
Mission
Leverage partnerships and resources and develop, support, promote and advance the arts
OUTCOME ORIENTED GOALS
Create a vibrant inclusive and transformed Arts and Culture Sector
Achieve global recognition for our unique South African Arts and Culture
Sustainable arts capability
Increased access to the arts and market access and enrichment through arts and culture
Organisational Development
STRATEGIC OBJECTIVES
To ensure disbursements are made according to the agreed disbursement criteria
To allocate and disburse funds to support indigenous art forms, projects in targeted rural areas or provinces
To fund local and international bursaries, training and development programmes in the arts
To position and strengthen the NAC brand and increase stakeholder awareness and engagement
Implement HR Strategy
Implement ICT Governance Framework
To reduce unclaimed funds through effective oversight to a maximum of a percentage of projects and grants budgets
To allocate and disburse funds to support organisations working with people and individuals with disabilities
To support the training of community arts centre managers to ensure functionality at an acceptable level
To establish partnership with government structures and other recognised structures
Implement effective financial management
Improvement of business processes
To ensure balance allocation of project and grant funding across all disciplines and NAC strategic imperatives
To allocate and disburse funding to support women and women led organisations and youth
To identify and fund flagship projects
To establish strategic partnerships for the development of arts education
To establish partnership with relevant structures that promote nation building and social cohesion
Evaluation of the Council subcommittees and Advisory Panels 4

5. ALIGNMENT TO DAC GOALS DAC OUTCOME ORIENTED GOAL
ENTITY STRATEGIC OBJECTIVES
KEY OUTPUTS AND TARGETS FOR 2018/19
An integrated and inclusive society
To ensure disbursements are made according to the agreed criteria
funding to support indigenous art forms
funding to support projects in targeted rural areas
funding to support women and women led organisations
funding to support projects benefitting youth
A transformed and productive ACH sector
To reduce unclaimed funds through effective oversight to a maximum of a percentage of projects and grants budgets
disbursement criteria
To ensure balance allocation of project and grant funding across all disciplines and NAC strategic imperatives
Partnerships established with government structure and other relevant structures

6. ALIGNMENT TO DAC GOALS DAC OUTCOME ORIENTED GOAL
ENTITY STRATEGIC OBJECTIVES
KEY OUTPUTS AND TARGETS FOR 2018/19
An effective and efficient ACH Sector
Implement effective financial management
Improvement of business processes
Implement ICT Governance Framework
Reporting quarterly, bi-annually and annually
4 internal audits conducted
A professional and capacitated ACH Sector
To fund local and international bursaries, training and development programmes in the arts
To support the training of community arts centre managers to ensure functionality at an acceptable level
To identify and fund flagship projects
To establish strategic partnerships for the development of arts education
Implementation of mentorship programme
staff trained
Initiatives to promote employee wellness implemented
implementation of the approved training plan critical skills
Implementation of PMS annually Implement the approved structure

7. LINKS TO THE 10-DAC PRIORITIES
DAC PRIORITY AREA
ENTITY’S KEY OUTPUTS AND TARGETS FOR 2018/19
BUDGET ALLOCATION PER OUTPUT/TARGET
Nation Building and Social Cohesion and dealing with the challenges which includes racism, xenophobia, racial intolerances, hate speech and others.
Target : Partnership established with relevant structures which promotes nation building and social cohesion:
- Promote social inclusion through improving access to arts funding
- Identify and fund entities creating content for the promotion of social cohesion and nation building R
Focusing on Africa and BRICS
Target: Establish partnerships with government structures and other recognised structures.
Establish partnerships with recognised public, private and
civic structures
Namibia/SA Hosting the Africa Regional Meeting August IFACCA’s Regional Chapters bring together members from geographical regions for meetings and events that allow them to share knowledge and build intraregional networks;
Through IFACCA networks promote regional cooperation through regional workshops with
Identify and fund strategic initiatives focusing on Africa

8. LINKS TO THE 10-DAC PRIORITIES
DAC PRIORITY AREA
ENTITY’S KEY OUTPUTS AND TARGETS FOR 2018/19
BUDGET ALLOCATION PER OUTPUT/TARGET
Focusing on Africa and BRICS
Target: Establish partnerships with government structures and other recognised structures.
The NAC signed an MOU with the China Federation of
Literary and Art Circles (CFLAC);
CFLAC has 13 associations of writers and artists as well as 43
federations of literary and art circles;
The agreement was signed to promote exchanges between South Africa and China;
Improving Reporting and Compliance
Target: Implement effective financial management systems
Establish well structured policies to meet statutory requirements and uphold governance best practice to comply with applicable legislative and regulatory requirements R

9. LINKS TO THE 10-DAC PRIORITIES
DAC PRIORITY AREA
ENTITY’S KEY OUTPUTS AND TARGETS FOR 2018/19
BUDGET ALLOCATION PER OUTPUT/TARGET
Promotion of Languages
Target: Percentage of allocated funding disbursed to support indigenous art forms
- Focus on funding projects that promote literature and awareness of South African indigenous languages and art forms R
Ensuring that MGE benefits the previously disadvantaged artists
Target: Fund local and international bursaries in the arts; Fund the training and development programmes in the arts
-Nurture artistic talent through funding academic and professional arts managers and foster mentorship and coaching
- Establish partnerships with entities with a proven track record in promoting arts entrepreneurship

10. LINKS TO THE 10-DAC PRIORITIES
DAC PRIORITY AREA
ENTITY’S KEY OUTPUTS AND TARGETS FOR 2018/19
BUDGET ALLOCATION PER OUTPUT/TARGET
Community Arts Development programme
Target: Support the training of community art centre managers to ensure community arts centres function at an acceptable level
- Support the training of Community Arts Centre managers to ensure community art centres function at an acceptable level
- Fund training and development programmes in the arts R
Target: Establish a strategic partnership for the development of arts education
- Establish strategic partnerships with relevant organisations for the promotion and development of arts education R

11. INITIATIVES CONTRIBUTING TO THE NELSON MANDELA CENTENARY AND BRICS
The NAC plans to contribute to the following DAC initiatives to celebrate the Nelson Mandela Centenary:
The NAC will partner with the Gauteng Department of Sport, Arts, Culture and Recreation (DSRAC), Moving Into Dance Mophatong (MIDM) and the National Arts Council will spearhead various initiatives in celebration of Nelson Mandela Centenary be the Legacy The Programmue will include the following:
MIDM’s 1-Year Full-time Accredited, Performing Arts Training Course;
The 2nd / 3rd Year On-The-Job Training Programmes;
Enable Through Dance Disability Project;
The Provincial Workshops for Unemployed Youth, and
The Provincial and Collaborative Project

12. DEPARTMENT OF ARTS AND CULTURE
2/23/2019
REVIEW OF PERFORMANCE

13. THREE YEAR PERFORMANCE OVERVIEW
DEPARTMENT OF ARTS AND CULTURE
9/20/2017
THREE YEAR PERFORMANCE OVERVIEW
NAC
2015/16
2016/17
2017/18 ( 1st to 3RD QUARTER)
Targets achieved
100%
80%
66%
Targets not achieved 0%
20%
34%
A total of 68%

14. REASONS FOR NON-ACHIEVEMENT OF TARGETS
CORRECTIVE ACTION
Increase in 2016/17unclaimed funds within the specified financial year
Implemented capacity building programmes for beneficiaries on effective reporting, compliance requirements and contract management
The training of community arts centre managers not implemented on time.
Implement the training of 7 community arts centre manager

15. THREE YEAR INCOME AND EXPENDITURE TRENDS
NAC
2014/15
2015/16
2016/17
R’000
Income
96,084
98,983
29 772
Government Grant
91,865
96,089
29 281
Other Income
4,219
2,894
491
Expenditure
(99,411)
(102,567)
(17 728)
Surplus / (Deficit)
(3,327)
(3,584)
12 044

16. THREE YEAR STATEMENT OF FINANCIAL POSITION
NAC
2015/16
2016/17
2017/18
R’000
Current Assets
45 901
40 774
31 528
Non-Current Assets
5 663
8 429
8 436
Total Assets
51 564
49 203
39 964
Current Liabilities
4 045
3 068
2 386
Non-current liabilities -
Total Liabilities
Net Asset Value (NAV)
47 519
46 135
37 578 16

17. ANALYSIS OF CASH AND CASH EQUIVALENTS
NAC
2015/16
2016/17
2017/18
R’000
Cash and Cash Equivalents
45 567
39 774
31 241
Add: Trade and other receivables
335
347
287
Less: Current Liabilities
4 045
3 068
2 386
Net Working Capital/Surplus Funds
41 857
37 053
29 142

18. AUDIT OUTCOMES 2014/15 2015/16 2016/17 Audit Outcome Qualified
Unqualified

19. AUDIT FINDINGS ACTION PLAN
ACTIVE FINDING
ACTION TAKEN
PROGRESS IN %
COMPLETION DATE
N/A

20. DETAILS OF IRREGULAR EXPENDITURE
PRESCRIPT REGULATING ACTIVITY
AMOUNT
ACTION TAKEN
N/A

21. DETAILS OF FRUITLESS AND WASTEFUL EXPENDITURE
PRESCRIPT REGULATING ACTIVITY
AMOUNT
ACTION TAKEN
Interest charged on late payment to the supplier
PFMA
R409
Disciplinary action taken against the official involved

22. DEPARTMENT OF ARTS AND CULTURE
2/23/2019
GOVERNANCE

23. COMPOSITION OF COUNCIL
NAME OF COUNCIL MEMBER
EXPERTISE
GENDER
RACE
Mr Hartley Ngoato
Legal and Governance
Male
African
Ms Jabu Gladys Dlamini
Artist activist
Female
Ms Erica Elk
Art Activist
White
Ms Nakedi Ribane
Artist, legal
Mr Edmund Mhlongo
Art activist
Ms Maleshini Naidoo
Finance and Audit
Indian

24. COMPOSITION OF COUNCIL
NAME OF COUNCIL MEMBER
EXPERTISE
GENDER
RACE
Ms Tandiwe January-Mclean
Strategic management
Female
African
Mr Pheni Cypriam Ngove
Provincial Rep
Male
Dr Same Sizakele Mdluli
Fine Artist
Mr Phumzile Moshe -Apleni
Marketing, Branding and Governance
HRH Zolani Mkiva
Poet, arts and culture
Ms Avril Louise Joffe
Policy development
White

25. COMPOSITION OF COUNCIL
NAME OF COUNCIL MEMBER
EXPERTISE
GENDER
RACE
Mr Jerry Masengana Mabuza
Art Activist
Male
African
Ms Maria Magdalena Van Der Spuy
Fund raising and marketing
Female
White
Prof Sekgothe Mokgoatsana
Academic, linguist, historian
Note: The NAC Council is fully constituted and was appointed in December 2016.

26. COMPOSITION OF MANAGEMENT
DEPARTMENT OF ARTS AND CULTURE
9/20/2017
COMPOSITION OF MANAGEMENT
NAME
DESIGNATION
GENDER/RACE
CONTRACT/ PERMANENT
CONTRACT EXPIRY DATE
Rosemary Mangope
Chief Executive Officer (CE0)
Female/Black
Contract
30 June 2018
Karen Son
Chief Financial Officer (CFO)
Female/Coloured
23 January 2023
Julie Diphofa
Arts Development Manager
Permanent
N/A
Thabiso Selai
Human Resources Manager
Male/Black
23 January 2021
Reshma Bhoola
Finance Manager
Female/Indian
Itumeleng Sikhosana
IT Manager
Male/Black
Permanent
N/A
Janet Molekwa
Communication Specialist
Female/Black
Permanent
N/A
A total of 68%

27. TOTAL STAFF COMPLEMENT
COMPOSITION OF STAFF
TOTAL STAFF COMPLEMENT
GENDER
RACE
Male
Female B C I W 38 14 24 34 4

28. OVERSIGHT ACTIVITIES 2014/15 2015/16 2016/17 2017/18 ( 3rd quarter)
Number of Council members 18 17
Number of Council meetings 6 2 4
Number of Council committee meetings 8 3 9
Attendance rate of Council meetings
80%
95%
67%
Number of Audit Committee meetings 1
Number of Management meetings 7
Number of Staff meetings .

29. UPDATE ON THE NAC FORENSIC INVESTIGATION
BACKGROUND
The DAC received a complaint by the South African Roadies Association (SARA) on 03 October It is worth noting that the Department previously conducted and communicated the outcome of an investigation to SARA, which SARA was not happy with as it did not favor SARA.
For reference purposes, the previous investigation was conducted by Business Innovations Group (“BIG”) on behalf of the Department. Upon finalization of the investigation by BIG, a final investigation report was issued around October 2016 and shared accordingly with the Minister as he provides oversight to the public entity in question. However the President of SARA raised a further complaint that one of the BIG Forensic Investigator was conflicted and this resulted in the report outcome being biased and not favorable to him.
The latest complaint received from SARA alleged conflict of interest and the irregular awarding of funding to a beneficiary. These further allegations as reported to the Department required further action as they allegedly have implications against the NAC CEO, some of the officials within the NAC and BIG Forensic Investigator.
STATUS OF INVESTIGATION
The Department appointed Gobodo Forensic and Investigative Accounting (Pty) Ltd, (GFIA) on 11 November 2017 to conduct the investigation, which is at an advanced stage, and is anticipated to be completed before the end of April 2018; a 1st draft report has been developed with one interview outstanding despite numerous follow up efforts.
Upon finalization of the last interview (or scope limitation) a 2nd draft will be issued to the Department for further review, consideration of the findings, conclusions and recommendation.
The above will be followed by normal communication processes internally (Accounting Officer; Deputy Minister; the Minister) and externally to the Council of the National Arts Council as would be appropriate for remedial action. 29

30. DEPARTMENT OF ARTS AND CULTURE
2/23/2019
CHALLENGES
NAC is the one entity that has drawn negative publicity from media and members of the Public
In some cases there is a lack of efficient communication strategies between management and the labour formations which contributes to the instability at the entity.

31. DEPARTMENT OF ARTS AND CULTURE
9/20/2017
THANK YOU
A total of 68%