2 Presentation to the Portfolio Committee on Arts & Culture on the NHC’s Funding - PowerPoint Presentation

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2. 2Presentation to the Portfolio Committee on Arts & Culture on the NHC’s Funding Model and Impact on the SectorBy Adv. Sonwabile MancotywaCEO of the NHC15 November 2016

3. TABLE OF CONTENTS 3Vision, Mission and Funding Specific Legislative Mandate2. Sources of NHC Funding3. Funding Model4. Resource Mobilisation5. Funding Impact6. Heritage Development Opportunities7. NHC Funding Specific Challenges8. NHC Repositioning Trajectory9. Recommendations

4. 4VISION, MISSION AND FUNDING SPECIFIC LEGISLATIVE MANDATE

5. VisionA nation proud of its African heritageMissionThrough development, promotion and preservation of heritage for sustainable development and transformation, we will know that we are achieving this when South Africans experience the following:they are knowledgeable about heritage;have access to their heritage;benefit from heritage;utilise heritage in their lives; andbehave in a way that demonstrates their pride in heritage5

6. Funding Specific Legislative Mandate Section 10 of the NHC Act directs the NHC to discharge the following functions:Make grants to any person, organization or institution in order to promote and develop national heritage activities and resources;Monitor and co-ordinate the transformation of the heritage sector, with special emphasis on the development of heritage projects;Generally support, nurture and develop access to institutions and programmes that promote and bring equity to heritage management;Lobby in order to secure funding for heritage management and to create a greater public awareness of the importance of our nation’s heritage.6

7. 7SOURCES OF NHC FUNDING

8. Sources of NHC FundingSection 12(1) of the Act provides that funds of the Council shall consist of:money expropriated by Parliament to enable it to perform its functions and exercise its powers;donations or contributions received from any source;trust funds vested in it;interest derived from investments; and money received from any other source.NHC has largely benefited from Lottery Funding for its Major Flagship Programmes such as SATMA Awards; Liberation Heritage Route; Young Indigenous Artists; and Unsung Heroes and Heroines Research Programmes; To some degree NHC has also benefited from Collaborative Partnerships with the Sector especially Provinces and Municipalities that place higher premium on heritage positioning and usage as a strategic resource for socio-economic development;8

9. DAC Allocations to the NHC from 2004/05 – 2017/18 with budget cuts in 2009 and 2011 respectivelyFIN YEAR R`000Annual variation %31-Mar-05 16 760 Baseline31-Mar-06 17 400 4%31-Mar-07 26 673 35%31-Mar-08 36 670 27%31-Mar-09 29 965 -22%31-Mar-10 48 435 38%31-Mar-11 46 665 -4%31-Mar-12 47 323 1%31-Mar-13 50 063 5%31-Mar-14 52 714 5%31-Mar-1555 9176%31-Mar-1658 4755%31-Mar-1761 5745%31-Mar-1864 6535%9

10. ALLOCATIONS 201/14 TO 2017/1810Comparatively speaking the above amounts demonstrate no significant changes from the allocations

11. 11FUNDING MODEL

12. Funding Disbursements over 11 yearsNB: NHC public funding supports various categories in any particular financial year which are not limited to the following:Heritage Research & publication/documentariesHeritage and EducationHeritage & YouthHeritage ExhibitionsHeritage of the Khoi San CommunityIndigenous Knowledge SystemsLiberation HeritageTraditional leaders community imbizos12FUNDING MODEL

13. CHIEF EXECUTIVE OFFICERRecommended projects are considered for approvalFUNDING COMMITTEEAn independent committee evaluates funding applications and recommend to Management and Council CommitteesFUNDING UNITPUBLIC APPLICATIONS - A public call for applications is made & pre-evaluation conducted according to policy CONTRACTINGProjects are approved for implementationCOUNCILRecommended projects are approved for implementationCOUNCIL COMMITTEESRecommended projects are considered for approvalGOVERNANCEIMPLEMENTATIONPROJECT MANAGEMENT, MONITORING, EVALUATION & REPORTINGFunded projects are implemented according to policyComplianceFocus &Relevance

14. MANAGEMENTRecommended projects are considered for approvalCOUNCILRecommended projects are approved for implementationCOUNCIL COMMITTEESRecommended projects are considered for approvalFUNDING PROCESS FLOWHeritage ProgrammesStrategic Heritage InterventionsCommunity Heritage ProjectsFUNDING MODEL

15. Funding Model Summary

16. Funding Disbursements over 11 years 2010* No allocation was made during this period due to a large number of funded projects rolling over implementation. The decision was taken to assist lessening roll-over amounts going into the next financial year.2014* Due to austerity measures within the organisation, allocation to public projects was delayed until 2015.16

17. 17RESROURCE MOBILISATION

18. Resource MobilisationThe compelling nature of the fundraising and lobbying mandate of the NHC necessitated that Council establish a Heritage Fund. Services of a fundraiser to assist with resource mobilisation were sourced but yielded no results. Resource Mobilisation is now done in-house;NHC continuously seeks to strike partnerships with some departments, Heritage Institutions, Municipalities and Universities etc. for joint programming and hosting at minimum and at times no cost;In line with its mandate to lobby funding for the Sector, NHC regularly issues letters of support for heritage initiatives that it cannot fund;Complementary funding is encouraged and letters of support do get given to applicants to solicit further funding from prospective funders whose initiatives cannot secure full funding from NHC; NHC also makes presentations to departments and municipalities to lobby for fiscal (off-balance sheet) allocations for heritage initiatives;18

19. Off-Balance Sheet Resource MobilisationIn line with its transformational agenda towards mobilising government organs to support heritage initiatives for economic development NHC assisted in ensuring off-balance sheet commitments on the following:Mpumalanga Heritage Research and Liberation Heritage Route Projects;Mpondo Revolt Development Project;Tyume Valley University Town Project linked to the University of Fort Hare’s 100 years of existence;Ethekhwini Metropolitan Municipality’s Liberation Heritage Route initiatives;Chris Hani District Municipality’s Liberation Heritage Route initiatives;19

20. 20FUNDING IMPACT

21. Funding Impact on the SectorThrough NHC funding of Programmes, Projects and Strategic Initiatives aforementioned, the NHC has in the past managed to achieve the following:Generally took heritage from the periphery and mainstreamed it to become a strategic resource for socio economic development through advocacy and awareness;Galvanised society to contribute to social cohesion and nation building through its flagship programmes;Disbursed to community heritage initiatives that otherwise would not have accessed funding through other funding platforms like Lottery thereby empowering them and making a difference in the local economy;Contributed new knowledge especially on policy discourse around memorialisation, repatriation, access to heritage, liberation struggle and history, Indigenous Knowledge Systems (traditional healing by Khoi-Sans and other South African Tribes/Groups); 21

22. Funding Impact on the SectorProduced new narratives and reference materials through manuscripts, published materials and draft position papers where there are policy gaps identified;Facilitated Training and development of young South Africans from all Provinces on the rare skill of fine art through painting on dry goat skins thereby contributing to job creation and development of local economy;Centrally placed NHC as the first point of call on heritage in South Africa on whom the public and media relies on for direction;22

23. 23HERITAGE DEVELOPMENT OPPORTUNITIES

24. Heritage Development OpportunitiesDocumentaries – A partnership is underway between the NHC, National Film and Video Foundation (NFVF), Business Arts South Africa (BASA) and National Arts Council (NAC) to develop content for broadcasting by the SABC;Funding of Post-Graduate Studies – Aim is to support students from historically disadvantaged backgrounds to study towards Masters and Doctoral qualifications on heritage through research. Maritime Heritage – Ongoing engagements with South African Maritime Safety Authority (SAMSA) to leverage on the rich maritime heritage.Community Historians – Aimed at identifying prominent citizens with rich knowledge of their localities and recognition of their contribution to building their communities;Contribute to the Naming Debate – NHC contributes through policy proposals and sits on the SA Geographical Names Council. Focus will be on issues involving changes to place names and public spaces through active participation in the process but there is no direct funding mandate for Advocacy and Awareness programmes at a national Scale;24

25. 25NHC FUNDING SPECIFIC CHALLENGES IN CONTEXT

26. Funding Specific Challenges in ContextFunding of heritage in South Africa is skewed towards supporting infrastructure development projects;Criteria for Funding departments especially in the provinces excludes heritage in favour of Arts, Culture and Sports;Inability to leverage from the composition of NHC Council especially in terms of getting MEC Nominees to foster collaborations and unlock funding opportunities from their provincial departments responsible for Arts, Culture and Heritage; Education; and Local Economic Development to Heritage;Difficulty of raising funds from the private sector;Minimal application for funding from some provinces has led to the NHC’s plan to intensify advocacy workshops in the Provinces with specific focus to least participating provinces for the new financial year to increase access/participation; Absence of an enforcement tool for NHC to access funding residing in provinces and municipalities for heritage related projects that NHC champions such as the Liberation Heritage Route;26

27. Funding Specific Challenges in Context cont…Inability to attract funding notwithstanding the appointment of the service provider to do resource mobilisation and the financial meltdown globally which negatively impacts on developmental agencies nationally ;Duplication of funding of certain heritage initiatives with fairly established beneficiaries receiving repeated funding to the neglect of rural and peri-urban applicants where funding should be channelled to;The new Regulations of the National Lottery Commission which exclude entities established in terms of an Act of Parliament directly impact on Arts, Culture and Heritage institutions and limit access to funding by smaller beneficiaries; Accommodation and nurturing dependency for other strategic partners who continue to rely on NHC funding whereas they could be getting other sources of funding elsewhere which may lead to double dipping; 27

28. Regulatory environment and cost of compliance have become too daunting on the funding entities with higher cost of administration limiting NHC’s mobility to reach out to communities through funding of projects;Limited resource base restrictive to fuller pursuit of the broader mandate of the NHC;Brand growth of NHC attracts demands by the sector beyond constrained resources;Communities bypass provinces and local authorities and seek support directly from the NHC;Inability to source funding outside DAC allocations as funders are reluctant to fund heritage generally and heritage institutions specifically & new National Lottery Commission regulations compounded the challenge; Incomplete Policy and legislative review process brings uncertainty to the Sector in so far as funding is concerned albeit Development Agencies (NHC, NAC, NFVF and BASA) are beginning to collaborate more as proposed in the revised White Paper on Arts, Culture and Heritage;Inadequate Human Resource and Financial Capacity to mainstream LHR in the Provinces and Local levels; 28Funding Specific Challenges in Context cont…

29. 29NHC REPOSITIONING TRAJECTORY

30. Repositioning TrajectoryCouncil initiated and is leading re-engineering of the organisation to attract more funding and rationalise its operations to ensure cost savings and sustainability;NHC has prioritised the conducting of an impact study in the current financial year 2016/17 to determine the efficacy and impact of its programmes and projects on society in the last 12 years of its existence;Council is taking advantage of the platform created by the Minister of Arts and Culture to transform the Heritage Landscape and participating in shaping policy development through the Ministerial Task Team, South African Geographical Names Council and Social Cohesion initiatives which would have high impact on societal transformation;The NHC will continue with its contributions to the Arts, Culture and Heritage White paper Policy Review Process which the Minister of Arts and Culture is leading as the collective voice of the sector with a view to ensuring alignment of mandates of entities in relation to funding, coordination and policy development amongst other key areas; 30

31. Repositioning Trajectory (Cont…)Council will intensify its strategic focus on enhancing heritage knowledge production through research partnerships struck with public institutions and public funded research projects;NHC will take advantage of the approval of the Liberation Heritage Route Business Plan and intensify the mainstreaming of the Project nationally for integration of the project in the IDPs up to the lowest levels of government to ensure budgeting and implementation outside its DAC Funding allocations;Council will also intensify consultation with critical stakeholders on behalf of the State Party to the World Heritage Convention and consolidation of nomination work towards enlistment by UNESCO of the Nelson Mandela Legacy Sites of Human Rights, Liberation and Reconciliation following the submission of the Draft Nomination Dossier, and lobby for additional funding and capacitation of agencies charged with implementation of build-up activities towards domestic protection of nominated sites;NHC will continue lobbying and engaging other sectoral players to argue for the relaxation of the amended National Lottery Regulations which exclude institutions created in terms of an Act of Parliament such as all heritage institutions from benefiting.31

32. 32RECOMMENDATIONS

33. RecommendationsThe Policy Review Process be welcome as it brings positive changes for the sector, and the rationalisation it proposes should take into account outstanding implementation and governance record of entities like NHC to continue to assist in transforming the Heritage Landscape for the better;Review of the amendments to the National Lottery Regulations given the negative impact of excluding entities like the NHC;The approval of the Liberation Heritage Route by Cabinet requires additional human and financial resources within the NHC;Support towards completion and submission of the Nomination Dossier on the Nelson Mandela Legacy Sites of Human Rights, Liberation and Reconciliation be provided,Give support for upward review of budget allocation model for entities such as NHC with vast mandates. 33

34. 34THANK YOU