1. FILM AND PUBLICATION BOARD’S 2008/09 ANNUAL REPORT PRESENTATION 10 November 2009 Home Affairs Parliamentary Portfolio Committee

2. PRESENTATION OVERVIEW  Mandate  Vision  Strategic Objectives  Performance Information  Performance Information as per Strategic Plan  Financial Overview

3. 1. Legislative Mandate The Film and Publication Board (FPB) is a legal entity established in accordance with the Films and Publications Act, 1996, amended in 2009. It performs the functions, exercise powers and discharge duties assigned to it by the Act to ensure that the following objectives of the Act are achieved; regulating the creation, production, possession, broadcasting and distribution of films, interactive computer games and certain publications; providing consumer advice to enable adults to make informed viewing, reading and gaming choices, both for themselves and for children in their care; protecting children from exposure to disturbing and harmful materials and from pre-mature exposure to adult experiences; and making the use of children in pornography punishable

4. 2. Where you can find our offices FPB Head Office

5. 3. Vision VISION A credible and visible content- classification authority Our purpose and statement of highest aspiration is: “To ensure efficient and effective consumer protection, through regulation of media content, while empowering the public, especially children, through robust information sharing”

6. 4. Strategic objectives 1.To ensure an enhanced, integrated and constitutionally sound regulatory framework, so as to enable informed choices about media content whilst creating a healthy and child safe media environment (SO1). 2. To develop and maintain organisational capacity and capability to ensure effective management and implementation of the Act (SO2) 3.To enhance leadership and management of the Film and Publication Board resulting in sound corporate governance and compliance (SO3) 4.To ensure that the business and work of the FPB reflects contemporary norms and values, by forming and maintaining national and international partnerships and coordinating initiatives that support the business of the FPB (SO4) 5.SO5- To position the FPB as a visible and credible, professionally run organisation that regulates media through classification content (SO5)

7. 5. PERFOMANCE INFORMATION HIGHLIGHTS 5. PERFOMANCE INFORMATION HIGHLIGHTS

8. 5.1 Performance Highlights SOTargetStatus SO1Align classification system with Amendment Bill Delays in enactment of Amendments impacted negatively to this target - carried over to 09/10 Development of classification guidelines New guidelines developed and gazetted for comments and being implemented More than 50 written submissions received from members of the public Develop and implement an integrated classification system Standard Operating Procedures updated as per IA recommendations; Electronic reporting database developed (not implemented yet due to delays in appointment of examiners); improved capturing and reporting of classification info (refer to Graph 1 for classification stats) Develop capacity and strengthen the compliance monitoring function 10 additional monitors appointed, offsite access to the compliance database by monitors in order to verify classification data displayed in DVDs, publications, fleet expanded to accommodate compliance monitoring function etc Develop and implement a tracking mechanism for compliance monitoring Resulted in increased confiscation of unclassified DVDs; increased prosecutions of non compliant distributors; increased compliance monitoring activities etc (refer to graph 2 for stats)

9. 5.2 Performance Highlights S0 TargetStatus SO1Implement PoA on child protection against pornography National Indaba held in June 2008, more than 200 delegates drawn from Government, NGOs, Private Sector, International organisations participated Establishment of a standalone unit to implement outreach and awareness initiatives Ministerial Task team established Internet hotline and call centre established Infrastructure upgraded Collaboration between FPB and law enforcement agencies strengthen. SO2Upgrade FPB’s financial management system and processes Finance and SCM policies reviewed, approved in 09/10 and being implemented in order to strengthen controls and accountability Review and implement HR strategy Wellness program targeting all employees, in particular examiners and content analysts for debriefing and desensitization purposes implemented Competency Assessments for all Managers and Execs (a majority of participants found to be possessing the required competencies)

10. 5.3 Performance Highlights SOTargetStatus SO2Review and implement HR strategy Balanced Scorecard introduced as a pilot 10% of the staff complement received bursaries, and study assistance more than 70% of the staff component received relevant training 5 resignations 1 disciplinary hearing which led to the HR Manager being dismissed. Case at CCMA currently 1 dispute lodged with CCMA regarding salary adjustments; matter referred to Labour Court for review as CCMA did not have jurisdiction 1 dismissal carried over from 2007/8, matter at Labour Court SO3Strengthen leadership abilities and competencies New Managers and Execs enrolled for leadership program

11. 5.4 Performance Highlights SOTargetStatus SO3Improve FPB compliance with Corporate Governance prescripts Amendment Bill not yet enacted into legislation, as a result Council not appointed Current Board not fully compliant as the number of Executives is more than non Execs Council Charter not approved SO4Develop and implement a stakeholder relations strategy Strategy developed and approved FPB has a database of stakeholders and ongoing engagements held with them in line with organisational strategy Undertake at least 4 research projects a year in support of the core business objectives The following is an outline of key research projects undertaken Survey on Sexually explicit material and Regulation Interactive Games (Behavioral effect on children) Corporate paedophilia Analysis of media reports on child pornography New media and Youth (Gauteng Schools)

12. 5.5 Performance Highlights SOTargetStatus SO5Information accessResource centre set up and functional; only serving FPB staff but being expanded and linked to university libraries for research purposes. Media relations intensified covered in approximately 250 media platforms from various mediums 62% of the coverage favourable to FPB’s reputation Outreach and awareness extended to non traditional platforms such as SEXPO, FPB website revamped

13. 5.6 Performance Highlights Child Pornography Cases Reported 51 online reports received 9 confirmed child pornography, and hosted outside SA None Hosted in SA 1 Referred to police (Sondeza, not hosted in SA but had images looking like SA children)

14. Graph 1: Classification Stats

15. Graph 2: Compliance Monitoring Stats Compliance Monitoring Statistics Q1Q2Q3Q4Total Compliance Visits7901841153716875855 Registrations8053233092801717 Raids24341529102 Cases Opened10332647116 Material Confiscated1225016777262902884584162 Training - Law Enforcement 8245557402119 Training - Cinema Staff 25131755

16. 6. FINANCIAL PERFOMANCE

17. 6.1 STATEMENT OF FINANCIAL PERFORMANCE 17 DESCRIPTION2009 (RANDS) 2008 (RANDS) REVENUE45,292,47232,239,648 GRANT SUBSIDY33,519,00019,206,000 REGULATION FEES10,234,74312,032,682 OTHER INCOME1,538,7291,000,966 EXPENDITURE(53,570,514)(34,399,272) PERSONNEL EXPENDITURE(21,442,050)(17,319,177) OTHER OPERATING EXPENDITURE(32,128,464)(17,080,095) (DEFICIT)/ SURPLUS(8,278,033)(2,159,624)

18. 6.2 TREND ANALYSIS – GRANT SUBSIDY, REGULATION FEES AND OTHER INCOME 18

19. 6.3 TREND ANALYSIS INCOME AND EXPENDITURE 19

20. 6.4 TREND ANALYSIS PERSONNEL AND OTHER OPERATING EXPENDITURE 20

21. 5.5 STATEMENT OF FINANCIAL POSITION 21 DESCRIPTION2009 (RANDS) 2008 (RANDS) ASSETS8,793,77714,425,446 NON CURRENT ASSETS5,842,2216,738,243 CURRENT ASSETS2,951,5567,687,203 EQUITY AND LIABILITIES8,793,77714,425,470 RESERVES136,1208,414,153 NON CURRENT LIABILITY199,056440,956 CURRENT LIABILITIES8,458,6015,570,361

22. 5.6 CASH FLOW STATEMENT 22 DESCRIPTION2009 (RANDS) 2008 (RANDS) CASH RECEIPTS FROM CLIENTS AND GOVERNMENT 41,794,81530,269,408 CASH PAID TO SUPPLIERS AND EMPLOYEES(43,212,417)(28,874,847) NET CASH OUTFLOW FROM OPERATIONS(1,417,602)1,394,561 CASH FLOW FROM INVESTING ACTIVITIES(2,524,304)(5,707,263) FINANCE LEASE PAYMENTS(493,941)- NET DECREASE IN CASH AND CASH EQUIVALENTS (4,435,846)(4,312,702) CASH EQUIVALENT AT THE BEGINNING OF THE YEAR 5,437,4119,750,112 CASH AND CASH EQUIVALENTS AT END OF YEAR 1,001,5655,437,411

23. 5.7 REASONS FOR QUALIFICATION 1.Useful lives of assets with zero balance book value not re- valued. 2.Inaccurate financial reporting of Finance lease 3.Irregular expenditure 4.Inaccurate Calculations on the Cash flow 23

24. 5.8 KEY ACTIONS BEING IMPLEMENTED 1.Management Action Plan developed to implement recommendations of both external and internal audits. 2.Committee established to oversee implementation of the recommendations, convened by COO and reports to Audit Committee and Exco on a regular basis. 3.Strengthen capacity of the Procurement, Finance and HR units (staffing and skills) 4.Policies revised and new ones developed where gaps exist 5.Development and Implementation of systems to track non – compliance with procurement and finance processes on a regular basis 6.Review of asset management processes and asset register 7.Improve staff awareness on internal policies, procedures and applicable legislation 24

25. THANK YOU