1. TURNAROUND STRATEGY PLAN 2015/16 PACOFS

2. Introduction PART A

3. TABLE OF CONTENTS ContentPage 1. Introduction 1 2.Problem statement 2 3.Situational analysis 3 - 4 4.Turnaround Plan 5 -10 5.Recommendations 11

4. 1. INTRODUCTION On the 25 November 2014, the Portfolio Committee (PC) visited the PACOFS in the Free State. The purpose of the visit was due to the unqualified Audit Outcome by the AG. The Committee needed to satisfy itself with the current situation of the entity and to find out how it can be of assistance to improve the current status quo. During the visit, the Committee held first engagements with the staff thereafter, the Management and the Council to deliberate on all the issues. 1

5. 2.PROBLEM STATEMENT The Committee concluded that the entity is in a crisis situation and a turnaround plan needs to be submitted by the Department of Arts and Culture on how the situation can be changed. The performance of the entity is disappointing and the Management has no sense of commitment and dedication to perform on the duties they are entrusted with. It is clear that there is lack of capacity in the management of the entity The situation at the entity should change as a matter of urgency and DAC should ensure that there is a programme which articulates clearly how all the issues raised are going to be resolved. The Programme/Turnaround Plan should reach Parliament on the 1st of December 2014. On the first week of opening of Parliament next year, the Portfolio Committee will visit the entity to do an oversight and monitor progress. 2

6. 3. SITUATIONAL ANALYSIS The old Council term expired 30 September 2014 and current Council was appointed on 1 December 2014. The relationship between Management and Nehawu was getting worse in such a way that performance of the entity was evidently low. Handing Over Report by previous Council tabled to current Council did not highlight the hostile situation in PACOFS. The current Council had to intervene between Management and Nehawu in order to bring situation under control. A walk through to each department was carried out to each department in order to understand the underlining burning factors causing the unrest. 3 of 4

7. SITUATIONAL ANALYSIS - Cont. AG Report July 2014 – Conveyed unqualified Opinion, management report with emphasis of matters:  Going concern – net loss of R6 007 532  Irregular expenditure - R34 158 730  Fruitless and wasteful expenditure - R2 408 661  Predetermined objectives:  targets were not reliable because AG was unable to obtain sufficient appropriate audit evidence for 37% of the targets  11% of the targets were not valid, accurate and complete when compared to the source information or evidence provided  The Performance targets must be measurable. AG could not measure the required performance for 67% of the targets 4 of 4

8. 4. TURNAROUND PLAN New Council – observations highlighted institutional failure  Organizational instability, failure to improve audit findings, lack of leadership and management, lack of knowledge and understanding on management corporate governance.  Great tension between Management and Nehawu due to old issues that have caused instability at PACOFS.  Non compliance on SCM process resulting into irregular, Fruitless and Wasteful expenditure.  Resistance by Management to work hand in hand with Union for the betterment of PACOFS  Condone the long outstanding irregular expenditure 5 of 10

9. TURNAROUND PLAN - CONT The Vision and Mission of the institution has been revised in line with the current obtaining strategic imperative of the organisation New values adopted– incorporated Ubuntu and service excellency in order to invest in people Realignment of strategic goal to goal 14 of the DAC. 6 of 10

10. TURNAROUND PLAN - CONT Alignment of performance plans (targets, indicators - performance to DAC standardize baseline KPI Staff Moral Improvement Plan- 21 August 2015- Suggestion box with ideas to improve moral and bring revenue Management and staff teambuilding and interaction session and provide greater attention -yielded positive results (staff opening up on their concerns, suggestion boxes, teamwork encouragement to break silos, open discussion collective decision-making and resolving problems through staff meetings and collective participation) 7 of 10

11. TURNAROUND PLAN - CONT Organizational structure re-organised, incorporated posts inside the organizational structure HR Plan- submission of employee performance agreement, Management will be part of Artistic program plan and their inputs will be considered Inculcate the spirit of Ubuntu and value proposition in programme development 8 of 10

12. TURNAROUND PLAN - CONT Governance Improvement Plan – promotion of good governance to improve the administration Continued enhancement of Batho Pele Principles, reflections on purpose of serving communities (rural communities) – integration with other govt. programmes Audit Improvement Plan – Appointment of internal audit firm preferably local with broad experience in public sector especial public entities 9 of 10

13. TURNAROUND PLAN - CONT Evaluate the improvement of PACOFS financial performance through Audit and Council financial Sub-committee oversight Improve financial accountability- consequent management Improved audit outcome from unqualified Opinion to clean audit 10 of 10

14. 5. RECOMMENDATIONS More future engagements with staff – August 2015 Workshop to address issues of restructuring and policy reviews Draft organisational structure for entire entity Constitute workplace forum made up of all stakeholders Increase the institutional capacity- training and development, partnership, skills development and talent management, recruitment and retaining skills and conducting exit interviews to plug in skills haemorrhage Endeavours to continue improving efficiency and competency- refocus on performance outcomes, impact and value for money Critical is improvement of financial management and Audit Outcomes Strengthen consequent management 11

15. Response/Updates and Timelines PART B

16. TABLE OF CONTENTS ContentPage 1. Background1 2. Observations by Portfolio Committee2 3. Objectives of the Turn Around Strategy3 4. Milestone4 5. Issues Raised5 6. Vision6 7. Mission7 8. Values8 Issues Raised 1. Nehawu challenges1 2. Vision and Mission2 3. No clear organisational structure3 3.1 No organisational structure3 4. No performance agreements4 5. No clear job description5 6. No staff meeting schedule6 7. Low staff moral7 8. Silos in organisation8

17. TABLE OF CONTENTS - Cont. ContentPage 9. Employees not given chance to interrogate policies9 10. There is factionalism in the organisation10 11. No strategy session with staff11 12. Salary discrepancies12 13. Supply Chain Management challenges13 14. Audit outcome result by AG 2013/1414 15. Lack of skills development15 16. Misuse of funds for certain projects16 17. No revenue generation from shows17 18. Lack of managerial experience18 19. Relations breakdown between Province and Local Government19 20. Equity plan and progress by management20 21. Entity should attend to Language Signage policy Act21 22. What are the revenue plans22 23. Minutes of CEO interview23

18. BACKGROUND Portfolio Committee visited the Performing Arts Centre of The Free State (PACOFS) on 25 November 2014 The reason for the visit was due to instability of the institution, as the result of conflict between management and UNION It was also aimed at seeking ways to improve the situation in the PACOFS 1

19. OBSERVATIONS BY PORTFOLIO COMMITTE PACOFS was heading to serious crisis situation Turn around plan was needed DAC should develop a programme to resolve the issues raised The intervention plan by DAC should reach parliament by 1 December 2014 2

20. OBJECTIVES OF THE TURN AROUND STARTEGY To address governance short comings To foster an inclusive and conducive working environment To improve the PACOFS audit outcome To improve working relationship between Management and Nehawu Improve low staff moral Close capacity gap Develop policies and procedures and implement with immediate effect. 3

21. MILESTONES TO BE ACHIEVED Improvement of staff moral Draft organisational structure, cost, approve by Council and implement To the spirit of Ubuntu – carrying towards the fellow employee Create conducive working relationship between management and Nehawu Improve staff management Improve Corporate Governance 4

22. ISSUES RAISED There following issues were raised in November 2014 and that the PACOFS management and NEHAWU were expected by the Portfolio Committee 5

23. VISION Old VisionNew vision A leading performing arts and celebration destination that provides access to all, to experience cultural and arts activities across the Free State Striving for Artistic excellence and cultural diversity in the performing arts 6

24. MISSION Old MissionNew Mission To use the arts as an instrument to encourage social cohesion and nation building, through promotion, recognition and preservation of local and national heritage To stimulate economic interest, participation and appreciation of art across racial barriers while soliciting international role players Providing a platform for discovery and launching of local talent and expression and showcase that at home, in the African continent and global stages Producing and partnering with the creative industry to host artistic and cultural products that promote social cohesion, nation building and education 7 7

25. VALUES Old ValuesNew Values Accountability Fairness Commitment Communication Responsiveness Responsible and Accountable Integrity Fairness Service excellence Commitment Innovative Communication 8

26. ISSUES RAISED & TIMELINES Issue RaisedResponse/UpdateTimelines(Monthly activities to meet deadlines) 1. NEHAWU presented a list of challenges experienced by employees to both DAC and Council but all those have never been resolved by Management A Union and Management meeting forum with clear rules of engagements and terms of reference will be formed with the first meeting before the end of September 2015. 1. An invitation and communique has been issued on the 25th August 2015. 2. Consult held a consultative meeting with Nehawu reps 25 Jul 2015 3. 27 Aug charges laid against staff and Nehawu by management have been withdrawn 28/02/ 2016 Sep 2015 First meeting to be held on 30 Sep 2015 Oct 2015 Address the issues raised by Nehawu Nov 2015 Address the issues raised by Nehawu Dec 2015 Address the issues raised by Nehawu Jan 2016 All challenges would have been address Feb 2016 1

27. ISSUES RAISED & TIMELINES Issue RaisedResponse/UpdateTimelines(Monthly activities to meet deadlines) 2. The Vision, Mission of the Entity need to be redrafted (to be catchy and clear. The Vision and Mission of the institution will be revised in line with the current obtaining strategic imperative of the organisation. A draft will be presented in the next Ordinary Council Meeting for endorsements. Stakeholder Consultations will be embarked upon immediately after the endorsements. The first draft was done on 27 August 2015 28/02/ 2016 Sep 2015 Engage all stakeholders by end Sep 2015 Oct 2015 Submit to Council review and approval by end Oct 2015 Nov 2015 Dec 2015 Jan 2015 Feb 2016 1 of 2

28. ISSUES RAISED & TIMELINES Issue RaisedResponse/UpdateTimelines(Monthly activities to meet deadlines) 2 Cont. The Vision, Mission of the Entity need to be redrafted (to be catchy and clear. Six Change Management Champions will also be identified to manage the process. The Change Management Charter will immediately be developed for approval by Council through a round robin. After the Charter Round Robin the Project Plan will be developed for consideration by Council. The first draft was done on 27 August 2015 28/02/ 2016 Sep 2015 Engage all stakeholders by end Sep 2015 Oct 2015 Submit to Council review and approval by end Oct 2015 Nov 2015 Dec 2015 Jan 2015 Feb 2016 2 of 2

29. ISSUES RAISED & TIMELINES Issue RaisedResponse/UpdateTimelines(Monthly activities to meet deadlines) 3. There is no clear current Organisational Structure (with micro levels) that confirms the staff compliment of the Entity. This should be availed as a matter of urgency. A letter from Council to the Department of Arts and Culture will be drafted to request support with regard to the secondment of an Organizational Development Specialist to facilitate the development of the Organizational structure by the 25th August 2015. The revised structure will be presented in the next Council Meeting for consideration. The Placement Exercise will commence by the end of the September 2015. Structure has been drafted on 27/08/2015 31/03/ 2016 Oct 2015 A letter from Council to DAC regarding second-ment for Org. structure development Nov 2015 Consultation and finalization stakeholder by end 30 Oct 2015 Dec 2015 Submit to Council for approval By end Nov 2015 Jan 2015 Feb 2016 Mar 2016 Complete the implement effective 1 Apr 2016 1 of 3

30. PACOFS COUNCIL ARTISTIC COMMITTEE AUDIT & RISK COMMITTE HUMAN RESOURCE COMMITTE FINANCE COMMITTE CHIEF EXECUTIVE OFFICER ARTISTIC DIRECTOR CHIEF FINANCIAL OFFICER PERFORMING ARTS CENTRE OF THE FREE STATE AS PER STRATEGY 2 of 3 CORPORATE SERVICES DIRECTOR

31. CHIEF EXECUTIVE OFFICER ARTISTIC DIRECTOR CHIEF FINANCIAL OFFICER PERFORMING ARTS CENTRE OF THE FREE STATE AS PER STRATEGY 2 of 3 SCM DEPARTMENT INTERNAL AUDIT FINANCE DEPARTMENT PRODUCTIONS (PRODUCING) HUMAN RESOURCES DEVELOPMENT MARKETING TECHNICAL THEATRE MAINTENANCE DEPARTMENT CORPORATE SERVICES DIRECTOR

32. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 4. There are no Performance Agreements for all the staff. The Human Resources Department will finalise the Performance Management Framework on the Balanced Scorecard by the end of September 2015. The Reward Policy would have been finalised by the end of September 2015 to support the Performance Management Framework. The Personal Development Plans will also be in place immediately after the finalisation of the Skills Audit by the end of September 2015 28/02/ 2016 Sep 2015 Framework complete 30 Sep15 Policy completed 30 Sep15 Oct 2015 Final skills audit at 31 Oct15 Nov 2015 Dec 2015 Jan 2016 PDP finalised Jan 2016 Feb 2016 Monitorin g and evaluation 1 of 4

33. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 4 Cont. There are no Performance Agreements for all the staff. In November 2015; the first highest level of the organization would have signed the Performance Contracts with Performance Targets. 28/02/ 2016 Sept 2015Oct 2015Nov 2015 Complete management performance contracts Dec 2015 Jan 2016 Complete all employee performance contracts Feb 2016 2 of 4

34. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 5. There are no clear job descriptions for officials. A letter to CapeArts to request them to send the HR Manager to assist with the development of job descriptions has been sent by the 24th August 2015. The signed Job Descriptions will be in place by the end of September 2015. The Job Evaluation Committee will be established the 30th of October 2015 comprising of all experts in the field. A new salary structure informed by the results of the Job Evaluation Committee will be implemented by the 02nd May 2016 on account of the budget calendar. 28/02/ 2016 28/02/2016 Sep 2015 Consultation completed 30 Sep 2015 Oct 2015 Completed JD on 30 Oct 2015 Committee be established 30 Oct 2015 Nov 2015 Job Evaluation completed 30 Nov15 Dec 2015 Jan 2016 Salary structure completed 31Jan16 Feb 2016 5

35. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 6. There are no staff meetings schedules (no culture in the organisation). Communicati on between staff and Management A schedule of statutory meetings and a calendar will be submitted in the next Council meeting for approval. The schedule will contain standing agenda items Schedule has been drafted for staff meeting for the year Last year, only needed to be communicated to staff 28/02/ 2016 Sep 2015 Consult stakeholders regarding meeting schedules Oct 2015 Nov 2015 Dec/ 2015 Jan 2016 Feb 2016 6

36. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 7. There is low staff morale, employees feel unimportant. The Department of Arts and Culture will be required to send a Wellness Officer to do a Staff Satisfaction Survey. This will be done by the end of August 2015. 28/02 2015 Sep 2015 Oct 2015 Finalized satisfactory survey 31 Oct15 Nov 2015 Dec 2015 Jan 2016 Feb 2016 7

37. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 8. There are Silos in the organisation. A revised Delegation of Authority document in the Organization will be submitted to Council by the 15th August 2015 and (incomplete) 28/02/ 2016 Sep 2015 Oct 2015 Building workplace relations 30 Oct15 Nov 2015 Dec 2015 Jan 2016 Feb 2016 8

38. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 9. Employees are not given enough opportunity to interrogate the organisational policies. Policies are out dated it is as if they are non- existent. The ArtsCape; Durban Playhouse and Market Theatre will be required to assist with a basket of policies which will be aligned to suit the environment. This will be finalised by the middle of December 2015 for Council approval. Received some policies from ArtsCape and State Theatre After policies been drafted, they will be posted on intranet and made available for scrutiny by relevant parties before sign off, although some of the policies do not need input from employees, such as finance policies) 28/02/ 2016 Sep 2015 Oct 2015 Nov 2015 Completed by end of Nov 2015 Dec 2015 Jan 2016 Feb 2016 9

39. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 10. There is factionalism. Some officials receive privileged information from management whereas some are denied organisational information. This will be one of the terms of reference for the forensic investigation as resolved by Council in the meeting of the 16th August 2015. 28/02/ 2016 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 10

40. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 11. No Strategic Planning Sessions are held with the staff at the organisation. When the full Council have been confirmed; a strategic session to look into the refined vision; mission and the strategic objectives; such a Strategic Session will be convened. This will also look at the Annual Performance Plan of the institution. The date is now contemplated to e before the 30th September 2015. Management will start on the 24th August 2015 to identify a facilitator 28/02/ 2016 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 11

41. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 12. Salary discrepancies are still a long outstanding issue and staff does not receive salary increases and performance bonuses.. The Job Evaluation and the implementation of a new salary architecture will address this point as mentioned above. 28/02/ 2016 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 The Job Evaluation and the implementati on of a new salary architecture will address this point as mentioned above. Feb 2016 12

42. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 13. Supply Chain Management has challenges they are not made aware of contracts approved in the organisation, but when problems emerge from those challenges they are called upon to assist. Supply Chain Policies will address this point. The Acting CEO will with immediate effect strengthen the internal audit function so that adherence and compliance is ensured. There quest to vet all Supply Chain Officials will be sent to the Department of Security in line with the Intergovernmental provision not later than the 30th August 2015.This will be extended to the Finance Department before the end of September 2015. The results will be tabled before Council. 28/02/ 2015 28/ Sep 2015 Oct 2015 Nov 2015 Awareness of the existing policy to be concluded at end of Nov 2015 Dec 2015 Revised policies will be approved end Dec2015 Jan 2016 Feb 2016 13

43. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 14. The Audit Outcome result by AG for 2014/15 which unqualified is not acceptable. The entity should show how it will improve towards clean audit. An Audit Action Plan will be tabled to the Council meeting. A request for Audit support will be sent to the Department of Arts and Culture by the 26th August 2015. 1.8 Sep 2015 received audit AFS 2015, Audit report and management letter point from AG 2.15 Submit approve Annual Report 2014/15 3.The operating loss has been reduced as follows: (R10.3m in 2012/13) ; (R6.0m in 2013/14) and (R2.4m in 2014/15) 28/ Sep 2015 Final audit action plan in place 30 Sep15 Oct 2015 Nov 2015 Dec 2015 80% of issues resolved 15 Dec2015 Jan 2016 Feb 2016 100% Of issues will be resolved 14

44. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 15. Lack of skills development for staff A verification of qualifications will be undertaken and finalised by the end of September 2015. A reputable institution will be required to assist with that. A training plan and calendar will be submitted to Council in the next meeting Will be submitted 30 Nov 2015 28/02/ 2016 28/ Sep 2015 Oct 2015 Nov 2015 Completed by 30 Nov2015 Dec 2015 Jan 2016 Training plan be finalized 31 Jan 2016 Feb 2016 15

45. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 16. Misuse of funds for certain projects e.g. too many consultants for one function The forensic investigation will be required to probe this. 28/02/ 2016 28/ Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 16

46. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 17. No revenue is generated from shows that are staged A draft plan to generate additional revenue will be compiled: 1.Rent out Theatre space when there are no shows 2.Bring shows are well know to pull the crowd 3.Hold conferences 4.Resume catering 28/02/ 2016 28/ Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 17

47. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 18. Lack of managerial experience and that 90% of senior management do have higher education qualifications A Skills Audit will provide a clearer picture in respect of this query. Performance Improvement Plans will be developed in line with the performance management system framework. 28/02/ 2016 28/ Sep 2015 Oct 2015 Skills audit be completed by 30 Oct2015 Nov 2015 Plan completed by 30 Nov2015 Dec 2015 Jan 2016 Feb 2016 18

48. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 19. Relations breakdown between both Provincial and Local Government levels The Acting CEO will be convening meetings with both spheres of government by the 30th August 2015 to ensure and explore areas of mutual interest. The report of such meetings will be submitted to Council. 1. One DSACR (Provincial Department) meeting has been held already by Acting CEO 2. Four district and Metro has been held by AD & CEO & Stakeholder 28/02/ 2016 28/ Sep 2015 Oct 2015 Arrange meeting with provincial departments Nov 2015 Visit Four districts and Metro Dec 2015 Jan 2016 Feb 2016 19

49. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 20. Equity plan and progress report by management need to be submitted with the turnaround plan HR will be instructed by Acting CEO to establish the Employment Equity Committee; provide training and develop the EE Plan by 30th Sep 2015. EE plan has been drafted and only need to be reviewed before submission 28/02/ 2016 28/ Sep 2015 Review Employee Equity plan by end of Oct 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 20

50. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 21. Entity should attend to the Language Signage and follow the Use of official Languages Act in implementing the change. Look into the requirements and various options to comply Draft policy has been developed and include proposed draft implementation plan 28/ Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 21

51. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 22. What are the plans of revenue generation of the entity so that dependency to DAC is limited The Acting CEO will present the Revenue Enhancement and Protection Plan to Council in its next sitting. 15/10/ 2015 28/ Sep 2015 Come up with other revenue streams. Oct 2015 Analyse the streams and choose best option Nov 2015 Draft a report with projected revenue and internal control to prevent its loss Dec 2015 Submit best option to Council Jan 2016 Feb 2016 22

52. ISSUES RAISED & TIMELINES Issue Raised Response/UpdateTimelines(Monthly activities to meet deadlines) 23. Minutes of the interview process of the CEO position should be availed to the Committee The report of the interview process will be made available to the Portfolio Committee in its next meeting with Council. In an instance where there could be difficulty in accessing records; disciplinary action will be taken against all involved. A formal letter bearing the signature of the Acting CEO will be sent on the 26th August 2015 to all officials who provided support during the recruitment process. This was done last year 2014 28/02 2016 28/ Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 23

53. Responsible person and comments PART C

54. TABLE OF CONTENTS ContentPage Issues Raised 1. Nehawu challenges1 2. Vision and Mission2 3. No clear organisational structure3 3.1 No organisational structure3 4. No performance agreements4 5. No clear job description5 6. No staff meeting schedule6 7. Low staff moral7 8. Silos in organisation8

55. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 1. NEHAWU presented a list of challenges experienced by employees to both DAC and Council but all those have never been resolved by Management A Union and Management meeting forum with clear rules of engagements and terms of reference will be formed with the first meeting before the end of September 2015. 1. An invitation and communique has been issued on the 25th August 2015. 2. Consult held a consultative meeting with Nehawu reps 25 Jul 2015 3. 27 Aug charges laid against staff and Nehawu by management have been withdrawn 28/02/2016Acting CEOCommunique was sent to relevant Stakeholder 1

56. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 2. The Vision, Mission of the Entity need to be redrafted (to be catchy and clear. The Vision and Mission of the institution will be revised in line with the current obtaining strategic imperative of the organisation. A draft will be presented in the next Ordinary Council Meeting for endorsements. Stakeholder Consultations will be embarked upon immediately after the endorsements. The first draft was done on 27 August 2015 28/02/2016Acting CEOManagement has brainstorms on the Vision and on 27 August 2015 1 of 2

57. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 2 Cont. The Vision, Mission of the Entity need to be redrafted (to be catchy and clear. Six Change Management Champions will also be identified to manage the process. The Change Management Charter will immediately be developed for approval by Council through a round robin. After the Charter Round Robin the Project Plan will be developed for consideration by Council. The first draft was done on 27 August 2015 28/02/2016Acting CEOManagement brain storm the mission and redraft a new one 2 of 2

58. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 3. There is no clear current Organisational Structure (with micro levels) that confirms the staff compliment of the Entity. This should be availed as a matter of urgency. A letter from Council to the Department of Arts and Culture will be drafted to request support with regard to the secondment of an Organizational Development Specialist to facilitate the development of the Organizational structure by the 25th August 2015. The revised structure will be presented in the next Council Meeting for consideration. The Placement Exercise will commence by the end of the September 2015. Structure has been drafted on 27/08/2015 31/03/2016Acting CEOManagement drafted a new organisational structure. Overall organisational structure will be developed 1 of 3

59. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 4. There are no Performance Agreements for all the staff. The Human Resources Department will finalise the Performance Management Framework on the Balanced Scorecard by the end of September 2015. The Reward Policy would have been finalised by the end of September 2015 to support the Performance Management Framework. The Personal Development Plans will also be in place immediately after the finalisation of the Skills Audit by the end of September 2015 28/02/ 2016Acting CEOActing CEO will drive the process and delegate. 1 of 4

60. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 4 Cont. There are no Performance Agreements for all the staff. In November 2015; the first highest level of the organization would have signed the Performance Contracts with Performance Targets. 28/02/ 2016Acting CEOCEO office to drive the project and give feedback to Acting CEO on interval basis. 2 of 4

61. RESPONSE/UPDATES WITH COMMENTS Issue RaisedResponse/UpdateTimelinesResp. Person Comments 5. There are no clear job descriptions for officials. A letter to Artscape to request them to send the HR Manager to assist with the development of job descriptions has been sent by the 24th August 2015. The signed Job Descriptions will be in place by the end of September 2015. The Job Evaluation Committee will be established the 30th of October 2015 comprising of all experts in the field. A new salary structure informed by the results of the Job Evaluation Committee will be implemented by the 02nd May 2016 on account of the budget calendar. 28/02/2016 Acting CEO The letter was sent on Friday, 21 Aug 2015 Acting CEO delegate and request report on weekly basis 5

62. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 6. There are no staff meetings schedules (no culture in the organisation). Communication between staff and Management A schedule of statutory meetings and a calendar will be submitted in the next Council meeting for approval. The schedule will contain standing agenda items Schedule has been drafted for staff meeting for the year Last year, only needed to be communicated to staff 28/02/2016Acting CEODrafted schedule with propose dates has been presented to Council. 6

63. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 7. There is low staff morale, employees feel unimportant. The Department of Arts and Culture will be required to send a Wellness Officer to do a Staff Satisfaction Survey. This will be done by the end of August 2015. 28/02/2015Acting CEO 8

64. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 8. There are Silos in the organisation. A revised Delegation of Authority document in the Organization will be submitted to Council by the 31th October 2015. 28/02/2016ManagementCouncil, Executives and Management will be consulted 9

65. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 9. Employees are not given enough opportunity to interrogate the organisational policies. Policies are out dated it is as if they are non- existent. The Artscape; Durban Playhouse and Market Theatre will be required to assist with a basket of policies which will be aligned to suit the environment. This will be finalised by the middle of December 2015 for Council approval. Received some policies from Artscape and State Theatre After policies been drafted, they will be posted on intranet and made available for scrutiny by relevant parties before sign off, although some of the policies do not need input from employees, such as finance policies) 28/02/2016Acting CEOActing CEO to follow up on appointment and visit the entities 10

66. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 10. There is factionalism. Some officials receive privileged information from management whereas some are denied organisational information. This will be one of the terms of reference for the forensic investigation as resolved by Council in the meeting of the 16th August 2015. 28/02/ 2016CouncilTeam building is planned for December 2015 11

67. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 11. No Strategic Planning Sessions are held with the staff at the organisation. When the full Council have been confirmed; a strategic session to look into the refined vision; mission and the strategic objectives; such a Strategic Session will be convened. This will also look at the Annual Performance Plan of the institution. The date is now contemplated to e before the 30th September 2015. Management will start on the 15th September 2015 to identify a facilitator 28/02/2016Acting CEO Involve management and council 12

68. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 12. Salary discrepancies are still a long outstanding issue and staff does not receive salary increases and performance bonuses.. The Job Evaluation and the implementation of a new salary architecture will address this point as mentioned above. 28/02/2015Acting CEO Acting CEO delegate and request report on weekly basis 14

69. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 13. Supply Chain Management has challenges they are not made aware of contracts approved in the organisation, but when problems emerge from those challenges they are called upon to assist. Supply Chain Policies will address this point. The Acting CEO will with immediate effect strengthen the internal audit function so that adherence and compliance is ensured. There quest to vet all Supply Chain Officials will be sent to the Department of Security in line with the Intergovernmental provision not later than the 30th August 2015.This will be extended to the Finance Department before the end of September 2015. The results will be tabled before Council. 28/02/2015Acting CEO SCM to report to Acting CEO on Weekly basis on prevention The contracts are: 1.Neasa 2.Seesa 3.Labournet 4.Thabang Ntshebe Attorneys 5.Ramabulana 6.Motif Capital 14

70. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 14. The Audit Outcome result by AG for 2014/15 which unqualified is not acceptable. The entity should show how it will improve towards clean audit. An Audit Action Plan will be tabled to the Council meeting. A request for Audit support will be sent to the Department of Arts and Culture by the 26th August 2015. 1.8 Sep 2015 received audit AFS 2015, Audit report and management letter point from AG 2.15 Submit approve Annual Report 2014/15 28/02/2016Acting CEOManagement to report back to Acting CEO on weekly basis 15

71. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 15. Lack of skills development for staff A verification of qualifications will be undertaken and finalised by the end of September 2015. A reputable institution will be required to assist with that. A training plan and calendar will be submitted to Council in the next meeting Will be submitted 30 Nov 2015 28/02/2016Acting CEOManagement to report back to Acting CEO on weekly basis 16

72. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 16. Misuse of funds for certain projects e.g. too many consultants for one function The forensic investigation will be required to probe this. 28/02/2016CouncilThe TOR will still be agreed by Council List of projects: 1.Genesis 2.Motif Capita 3.Neasa 4.Seesa 5.Labournet 20

73. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 17. No revenue is generated from shows that are staged A draft plan to generate additional revenue will be compiled: 1.Rent out Theatre space when there are no shows 2.Bring shows are well know to pull the crowd 3.Hold conferences 4.Resume catering 28/02/2016Acting CEOActing CEO has already engaged management on 27 Aug 2015 17

74. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 18. Lack of managerial experience and that 90% of senior management do have higher education qualifications A Skills Audit will provide a clearer picture in respect of this query. Performance Improvement Plans will be developed in line with the performance management system framework. 28/02/2016Acting CEOSkills audit will address this issue 18

75. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 19. Relations breakdown between both Provincial and Local Government levels The Acting CEO will be convening meetings with both spheres of government by the 30th August 2015 to ensure and explore areas of mutual interest. The report of such meetings will be submitted to Council. 1. One DSACR (Provincial Department) meeting has been held already by Acting CEO 2. Four district and Metro has been held by AD & CEO & Stakeholder 28/02/2016Acting CEOActing CEO will report to Council of any meeting outcome 19

76. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 20. Equity plan and progress report by management need to be submitted with the turnaround plan HR will be instructed by Acting CEO to establish the Employment Equity Committee; provide training and develop the EE Plan by 30th Sep 2015. EE plan has been drafted and only need to be reviewed before submission 28/02/2016Acting CEOHR will brief Acting CEO on daily basis of the progress 20

77. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 21. Entity should attend to the Language Signage and follow the Use of official Languages Act in implementing the change. Look into the requirements and various options to comply Draft policy has been developed and include proposed draft implementation plan 28/02/2016Acting CEOLinked to point 17 21

78. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 22. What are the plans of revenue generation of the entity so that dependency to DAC is limited The Acting CEO will present the Revenue Enhancement and Protection Plan to Council in its next sitting. 28/02/2016Acting CEOActing CEO to submit best option to Council 24

79. RESPONSE/UPDATES WITH COMMENTS Issue Raised Response/UpdateTimelinesResp. Person Comments 23. Minutes of the interview process of the CEO position should be availed to the Committee The report of the interview process will be made available to the Portfolio Committee in its next meeting with Council. In an instance where there could be difficulty in accessing records; disciplinary action will be taken against all involved. A formal letter bearing the signature of the Acting CEO will be sent on the 26th August 2015 to all officials who provided support during the recruitment process. This was done last year 2014 28/02/2016Acting CEOThis forms part of forensic investigation 23

80. Thank you for the opportunity