1. DEPARTMENT OF ARTS AND CULTURE
5/19/2019
DITSONG MUSEUM
ACTING DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 12/04/2016

2. PERFORMANCE OVERVIEW (as at third quarter of 2015/16)

3. THREE YEAR PERFORMANCE OVERVIEW
2012/13
2013/14
2014/15
Achieved
66%
73%
64%
Not achieved
34%
27%
36%

4. INCOME AND EXPENDITURE TRENDS
2012/13
2013/14
2014/15
R’000
Income
68 551
71 556
75 954
Government Grant
61 857
63 208
67 054
Own Income
6 694
8 347
8 902
Expenditure
(83 544)
(67 060)
(83 662)
Surplus/Deficit
(14 993)
4 496
(7 708)

5. AUDIT OUTCOMES
DITSONG
2012/13
2013/14
2014/15
Audit Outcome
Qualified

6. OUTCOMES OF THE MEETING WITH THE DAC
The entity’s Chairperson was requested by the DAC to outline an action plan on resolving the qualified audit opinion.
The qualification was based on these four major issues
Property, Plant and Equipment
Heritage Assets ( GRAP 103)
Receivables from exchange transactions and
Irregular expenditure
The entity indicated that most of the issues that led to the qualified audit report is misrepresentations that emanated from prior year events, to which they committed to appoint a forensic audit team,
The entity indicated that another measure to resolve this was the increase in the number of Audit Committee meetings to fast track the review of processes completed
The Chairperson of the entity committed to resolving the challenges that are involving the opening balances or issues pertaining to the years prior to their appointment to be completed at least by October 2016
The current issues were committed to be finalized by the end of July irrespective of the term of the Council as it ends 31 July 2016
The DAC will schedule a follow up meeting with the entity

7. CHALLENGES FACING THE ENTITY AS OF APRIL 2016
The entity has the following challenges:
GRAP 103 compliance
staff retention
and the budget constraints,
permanent exhibitions
knowledge management,
Litigation prone contract management
financial sustainability
audit fee that the National Treasury is not subsidizing
audit inconsistencies year after year
Refer to slide 59 and 60 of the Ditsong presentation for details

8. OUTCOMES OF THE ANALYSIS OF THE ANNUAL PERFORMANCE PLAN
Performance targets do not adhere to the SMART (specific, measureable, attainable, reliable and time bound) principle
In dealing with the audit findings the entity mentioned GRAP 103 and did not emphasize their approach on the other 3 issues that led to the qualification, i.e. property plant and equipment, receivables from exchange transactions and irregular expenditure.
In the light of the above the DAC has to arrange a follow up meeting with the entity

9. GOVERNANCE DITSONG MUSEUM 2012/13 2013/14 2014/15
2015/16 (to the 3rd quarter)
Number of Council members 7 9 8 6
Number of Council meetings 5 2
Number of Council committee meetings 3 4
Attendance rate of Council meetings
68%
71%
67%
Number of Audit Committee meetings
Number of Management meetings
Number of Staff meetings 1 -

10. DEPARTMENT OF ARTS AND CULTURE
5/19/2019
THANK YOU