fourth QUARTER PERFORMANCE REPORT
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fourth QUARTER PERFORMANCE REPORT Director-General: Arts and Culture Date: 28 AUGUST 2020 PRESENTATION OUTLINE Purpose Introduction Performance Overview Comparative Analysis of the Third Quarter and Fourth Quarter of 201920
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01
fourth QUARTER PERFORMANCE REPORT Director-General: Arts and Culture
Date: 28 AUGUST 2020<br>
Date: 28 AUGUST 2020<br>
02
PRESENTATION OUTLINE Purpose
Introduction
Performance Overview
Comparative Analysis of the Third Quarter and Fourth Quarter of 2019/20
Programme-Specific Performance
Expenditure Report: Fourth Quarter 2<br>
Introduction
Performance Overview
Comparative Analysis of the Third Quarter and Fourth Quarter of 2019/20
Programme-Specific Performance
Expenditure Report: Fourth Quarter 2<br>
03
PURPOSE The purpose of this presentation is to share the quarter 4 (2019/20) performance of DSAC with the Portfolio Committee on Sports, Arts and Culture.
For accountability as required by law
To enable the Committee to provide oversight on the work of the Department and its entities. 3<br>
For accountability as required by law
To enable the Committee to provide oversight on the work of the Department and its entities. 3<br>
04
INTRODUCTION While DAC and SRSA are merging, and currently report to the same political principals, they still have separate budget votes; and are thus treated as separate Departments until the end of financial year 2019/20. The report is therefore based on performance by each Department separately. Once the two Departments carry one vote, they will be reported on, as a single Department.
It is noteworthy that this is a preliminary report of the fourth quarter, as per Department of Planning, Monitoring and Evaluation (DPME) guidelines.
The fourth quarter performance report was submitted to DPME and National Treasury on the 29 May 2020 , as required by the DPME reporting guidelines.
Further, the preliminary fourth quarter report is then submitted to internal audit for validation before being presented to the Audit Committee for final assurance.
The final validated quarterly performance reports are submitted to DPME and National Treasury 120 days after the end of each quarter.
Therefore, the Portfolio Committee (PC) is requested to note that the presentation is based on audited results provided by Internal Audit. 4<br>
It is noteworthy that this is a preliminary report of the fourth quarter, as per Department of Planning, Monitoring and Evaluation (DPME) guidelines.
The fourth quarter performance report was submitted to DPME and National Treasury on the 29 May 2020 , as required by the DPME reporting guidelines.
Further, the preliminary fourth quarter report is then submitted to internal audit for validation before being presented to the Audit Committee for final assurance.
The final validated quarterly performance reports are submitted to DPME and National Treasury 120 days after the end of each quarter.
Therefore, the Portfolio Committee (PC) is requested to note that the presentation is based on audited results provided by Internal Audit. 4<br>
05
Performance overview 5<br>
06
6 PERFORMANCE OVERVIEW<br>
07
PERFORMANCE OVERVIEW The Department planned to implement and achieve 33 performance targets during the fourth quarter reporting period.
However, 70% (23/33) of the aforesaid targets were achieved and only 30% (10/33) were not achieved. The non achieved targets were:
Conducting of izimbizo;
Implementation of governance tools for DAC public entities;
Conducting of CEO’s forum;
Creation of job opportunities through arts and culture Projects;
Provision of support to sector organisations; Provision of support to market access platforms;
Provision of support to provincial community arts programmes;
Provision of support to capacity building programmes;
Completion of multi–year heritage infrastructure projects;
Drafting of heritage policies.
Detailed reasons for deviation, including proposed corrective actions for targets that were not achieved are provided in programme-specific performance section. 7<br>
However, 70% (23/33) of the aforesaid targets were achieved and only 30% (10/33) were not achieved. The non achieved targets were:
Conducting of izimbizo;
Implementation of governance tools for DAC public entities;
Conducting of CEO’s forum;
Creation of job opportunities through arts and culture Projects;
Provision of support to sector organisations; Provision of support to market access platforms;
Provision of support to provincial community arts programmes;
Provision of support to capacity building programmes;
Completion of multi–year heritage infrastructure projects;
Drafting of heritage policies.
Detailed reasons for deviation, including proposed corrective actions for targets that were not achieved are provided in programme-specific performance section. 7<br>
08
Comparative Analysis of the third quarter and fourth quarter 8<br>
09
Comparative Analysis of the third quarter and fourth quarter 9 NB: The fourth quarter performance of the 2019/20 financial year decreased by 3% compared to 2019/20 third quarter performance<br>
10
Programme-Specific Performance 10<br>
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Programme-specific performance 11<br>
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Programme-specific performance 12<br>
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PROGRAMME 1: ADMINISTRATION 13<br>
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PROGRAMME 1: ADMINISTRATION…CONT 14<br>
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PROGRAMME 2 :INSTITUTIONAL GOVERNANCE 15<br>
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PROGRAMME 2 :INSTITUTIONAL GOVERNANCE 16<br>
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PROGRAMME 2: INSTITUTIONAL GOVERNANCE …CONT. 17<br>
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PROGRAMME 2: INSTITUTIONAL GOVERNANCE… CONT. 18<br>
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PROGRAMME 2: INSTITUTIONAL GOVERNANCE… CONT. 19<br>
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PROGRAMME 2: INSTITUTIONAL GOVERNANCE… CONT. 20<br>
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21 PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT<br>
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22 PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT…CONT.<br>
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23 PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT…CONT.<br>
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24 PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT…CONT.<br>
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25 PROGRAMME 3: ARTS AND CULTURE PROMOTION AND DEVELOPMENT…CONT.<br>
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PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION 26<br>
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PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION…CONT. 27<br>
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PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION…CONT. 28<br>
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PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION…CONT. 29<br>
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EXPENDITURE REPORT: fourth QUARTER 30<br>
31
EXECUTIVE SUMMARY The overall spending is at R4.356 billion (95%) against the Final Appropriation of R4.6 billion as at 31 March 2020. Compared to the spending of the prior year, an expenditure of R4.238 billion was incurred. There is an increase of 2.8% in expenditure and is mainly due to infrastructure expenditure resulting in shifting of funds for transfers to entities primarily Kwazulu-Natal Museum.
Compensation of employees
The spending is at R249.0 million (93%) against the Final Appropriation of R267.5 million. The expenditure in comparison to the prior financial year same period at R239.0 million has increased by 4.2% due to a number of filled positions.
Goods and Services
The spending is at R436.0 million (91%) against the Final Appropriation of R480.2 million. Compared to the spending of the prior year, amounting to R375.6 million, there is an increase of 16.1% and is due to the inaugural Year of the Film Summit, the implementation of Cultural and Creative Industries Federation of South Africa (CCIFSA) regional meetings in nine provinces and the Presidential inauguration. 31<br>
Compensation of employees
The spending is at R249.0 million (93%) against the Final Appropriation of R267.5 million. The expenditure in comparison to the prior financial year same period at R239.0 million has increased by 4.2% due to a number of filled positions.
Goods and Services
The spending is at R436.0 million (91%) against the Final Appropriation of R480.2 million. Compared to the spending of the prior year, amounting to R375.6 million, there is an increase of 16.1% and is due to the inaugural Year of the Film Summit, the implementation of Cultural and Creative Industries Federation of South Africa (CCIFSA) regional meetings in nine provinces and the Presidential inauguration. 31<br>
32
EXECUTIVE SUMMARY Departmental Agencies and Accounts (Cur)
The spending is at R1.5 billion (100%) against the Final Appropriation of R1.5 billion. The expenditure in comparison to the prior financial year same period at R1.5 billion, has increased by 3.5% due to the approval granted to shift funds to cover outstanding MGE commitments from the earmarked funds to NEF. The shifting is as a result of lapsed three year pilot programme of NEF agreement on the 31st August 2019 regarding the advancement of the venture capital.
Departmental Agencies and Accounts (Cap)
The spending is at R305.8 million (98%) against the Final Appropriation of R312.2 million. The expenditure in comparison to the prior financial year same time at R290.0 million has increased by 5.6% due to the approval granted to shift funds to increase the KwaZulu-Natal Museum allocation for the upgrading and conversion of Saint Anne's Hospital Building to the New KZN Museum. 32<br>
The spending is at R1.5 billion (100%) against the Final Appropriation of R1.5 billion. The expenditure in comparison to the prior financial year same period at R1.5 billion, has increased by 3.5% due to the approval granted to shift funds to cover outstanding MGE commitments from the earmarked funds to NEF. The shifting is as a result of lapsed three year pilot programme of NEF agreement on the 31st August 2019 regarding the advancement of the venture capital.
Departmental Agencies and Accounts (Cap)
The spending is at R305.8 million (98%) against the Final Appropriation of R312.2 million. The expenditure in comparison to the prior financial year same time at R290.0 million has increased by 5.6% due to the approval granted to shift funds to increase the KwaZulu-Natal Museum allocation for the upgrading and conversion of Saint Anne's Hospital Building to the New KZN Museum. 32<br>
33
EXECUTIVE SUMMARY (Cont…) Interest and Rent on Land
An expenditure of R1 thousand (100%) was incurred against the Final Appropriation of R1 thousand, which relates to penalty charged by the service provider for late payment made by the Department on training. Compared to the same period in the prior year, an amount of R8.8 million was incurred, which result in a major decline of 88.7% in expenditure, due to interest charged in arbitration awarded to an MGE beneficiary which resulted in fruitless and wasteful expenditure.
Provinces and Municipalities
An expenditure of R1.5 billion (100%) was incurred against a Final Appropriation of R1.5 billion relating to transfers of Conditional Grant on Community Libraries. Compared to the same period in the prior financial year, an amount of R1.4 billion was incurred, resulting in an increase of 5.4% due to a nominal growth in the appropriated budget. 33<br>
An expenditure of R1 thousand (100%) was incurred against the Final Appropriation of R1 thousand, which relates to penalty charged by the service provider for late payment made by the Department on training. Compared to the same period in the prior year, an amount of R8.8 million was incurred, which result in a major decline of 88.7% in expenditure, due to interest charged in arbitration awarded to an MGE beneficiary which resulted in fruitless and wasteful expenditure.
Provinces and Municipalities
An expenditure of R1.5 billion (100%) was incurred against a Final Appropriation of R1.5 billion relating to transfers of Conditional Grant on Community Libraries. Compared to the same period in the prior financial year, an amount of R1.4 billion was incurred, resulting in an increase of 5.4% due to a nominal growth in the appropriated budget. 33<br>
34
EXECUTIVE SUMMARY (Cont…) Higher Education Institutions (Cur)
The expenditure is at R4.4 million (100%) against a Final Appropriation of R4.4 million. Compared to the same period in the prior financial year, an amount of R5.4 million was incurred, resulting in a decline of 18.3% in expenditure, and it relates to HLT projects based on project plans.
Higher Education Institutions (Cap)
There is no expenditure incurred against a Final Appropriation of R4.4 million. No expenditure was incurred in the prior financial year under this economic classification. The allocation relates to the construction of Chief Tyali monument.
. 34<br>
The expenditure is at R4.4 million (100%) against a Final Appropriation of R4.4 million. Compared to the same period in the prior financial year, an amount of R5.4 million was incurred, resulting in a decline of 18.3% in expenditure, and it relates to HLT projects based on project plans.
Higher Education Institutions (Cap)
There is no expenditure incurred against a Final Appropriation of R4.4 million. No expenditure was incurred in the prior financial year under this economic classification. The allocation relates to the construction of Chief Tyali monument.
. 34<br>
35
EXECUTIVE SUMMARY (Cont…) Foreign Government & International Organisations
The expenditure is at R4.4 million (87%) against the Final Appropriation of R5.0 million. There is an increase of 2.5% in comparison to the same time in the prior financial year with an expenditure of R4.3 million. The under-expenditure is as a result of the rand to pound exchange rate and the Commonwealth Foundation having re-assessed the contribution.
Public Corporations & Private Enterprises (Cur)
The expenditure is at R108.8 million (87%) against the Final Appropriation of R125.4 million. Compared to the same period in the prior financial year, an amount of R110.8 million was incurred, which results in a decline of 1.8% in expenditure, due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 35<br>
The expenditure is at R4.4 million (87%) against the Final Appropriation of R5.0 million. There is an increase of 2.5% in comparison to the same time in the prior financial year with an expenditure of R4.3 million. The under-expenditure is as a result of the rand to pound exchange rate and the Commonwealth Foundation having re-assessed the contribution.
Public Corporations & Private Enterprises (Cur)
The expenditure is at R108.8 million (87%) against the Final Appropriation of R125.4 million. Compared to the same period in the prior financial year, an amount of R110.8 million was incurred, which results in a decline of 1.8% in expenditure, due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 35<br>
36
EXECUTIVE SUMMARY (Cont…) Public Corporations & Private Enterprises (Cap)
The expenditure incurred is at R400 thousand (44%) against a Final Appropriation of R900 thousand in the current financial year. In the prior year an expenditure of R9.3 million was incurred, resulting in a decline of 95.7%, due to the total allocation for the upgrading of Community Arts Centres being re-classified to Non- Profit Institution.
Households
The expenditure is at R17.8 million (81%) against the Final Appropriation of R22.1 million. Compared to same period in the prior financial year, with an expenditure of R24.2 million, there is a major decline in expenditure of 26.5% and is due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 36<br>
The expenditure incurred is at R400 thousand (44%) against a Final Appropriation of R900 thousand in the current financial year. In the prior year an expenditure of R9.3 million was incurred, resulting in a decline of 95.7%, due to the total allocation for the upgrading of Community Arts Centres being re-classified to Non- Profit Institution.
Households
The expenditure is at R17.8 million (81%) against the Final Appropriation of R22.1 million. Compared to same period in the prior financial year, with an expenditure of R24.2 million, there is a major decline in expenditure of 26.5% and is due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 36<br>
37
EXECUTIVE SUMMARY (Cont…) Non Profit Institutions (Cur)
There is an expenditure of R154.2 million (84%) against the Final Appropriation of R184.1 million. Compared to the same period in the prior financial year with an expenditure of R169.0 million, there is a decline of 8.7% in expenditure, due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 37<br>
There is an expenditure of R154.2 million (84%) against the Final Appropriation of R184.1 million. Compared to the same period in the prior financial year with an expenditure of R169.0 million, there is a decline of 8.7% in expenditure, due to late receipt of close up reports from MGE beneficiaries via courier services as a result of Covid-19 measures. 37<br>
38
EXECUTIVE SUMMARY (Cont…) Non Profit Institutions (Cap)
The expenditure is at R5.7 million (43%) against the Final Appropriation of R13.2 million. Compared to the same period in the prior financial year, with expenditure of R19.4 million, there is a major decline in expenditure of 70.6% which is as a result of the following:
Funding for community arts centres was dictated by provincial government in identifying beneficiaries and over the years there was under-expenditure due to lack of necessary compliance documentation from the identified beneficiaries. To mitigate against this reality the department resolve to fund a business plan per province for community arts centres. As a result, funds were not transferred until finalisation of the approved business plan process.
Projects which ended in the prior financial year and funds under this classification were therefore re-directed to other projects. 38<br>
The expenditure is at R5.7 million (43%) against the Final Appropriation of R13.2 million. Compared to the same period in the prior financial year, with expenditure of R19.4 million, there is a major decline in expenditure of 70.6% which is as a result of the following:
Funding for community arts centres was dictated by provincial government in identifying beneficiaries and over the years there was under-expenditure due to lack of necessary compliance documentation from the identified beneficiaries. To mitigate against this reality the department resolve to fund a business plan per province for community arts centres. As a result, funds were not transferred until finalisation of the approved business plan process.
Projects which ended in the prior financial year and funds under this classification were therefore re-directed to other projects. 38<br>
39
EXECUTIVE SUMMARY (Cont…) Buildings and other fixed structure
The expenditure is at R1.2 million (94%) against the Final appropriation of R1.3 million, which relates to the refurbishment of the South African Roadies Association House (SARA) infrastructure project implemented by Development Bank of SA (DBSA). Compared to the same period in the prior financial year with an expenditure of R35.8 million. There is a major decline of 97.0% in expenditure, due to re-classification of National Archives (HVAC) project from this economic classification to Heritage Assets in the current financial year as advised by National Treasury. 39<br>
The expenditure is at R1.2 million (94%) against the Final appropriation of R1.3 million, which relates to the refurbishment of the South African Roadies Association House (SARA) infrastructure project implemented by Development Bank of SA (DBSA). Compared to the same period in the prior financial year with an expenditure of R35.8 million. There is a major decline of 97.0% in expenditure, due to re-classification of National Archives (HVAC) project from this economic classification to Heritage Assets in the current financial year as advised by National Treasury. 39<br>
40
EXECUTIVE SUMMARY (Cont.…) Other machinery and equipment
An expenditure of R1.8 million (33%) was incurred against the Final Appropriation of R5.5 million. Compare to the same time prior financial year expenditure at R18.2 million, there is a major decline of 90.0%, due to procurement of Desktop Computers, archeophones, installation of boardrooms audio visual and telecoms infrastructure equipment as a result of the relocation of DAC to Sechaba Building in the prior financial year.
Heritage Assets
An expenditure of R39.6 million (34%) was incurred against the Final Appropriation of R115.9 million, in comparison to the prior year same time an expenditure of R32.8 million was incurred. There is an increase of 20.8% in expenditure, due to DPWI not being able to account for the invoice submitted to the Department for the National Archives (HVAC) project. As a result, the Department did not make a payment for the invoices. 40<br>
An expenditure of R1.8 million (33%) was incurred against the Final Appropriation of R5.5 million. Compare to the same time prior financial year expenditure at R18.2 million, there is a major decline of 90.0%, due to procurement of Desktop Computers, archeophones, installation of boardrooms audio visual and telecoms infrastructure equipment as a result of the relocation of DAC to Sechaba Building in the prior financial year.
Heritage Assets
An expenditure of R39.6 million (34%) was incurred against the Final Appropriation of R115.9 million, in comparison to the prior year same time an expenditure of R32.8 million was incurred. There is an increase of 20.8% in expenditure, due to DPWI not being able to account for the invoice submitted to the Department for the National Archives (HVAC) project. As a result, the Department did not make a payment for the invoices. 40<br>
41
EXECUTIVE SUMMARY Software and other intangible assets
Expenditure on Software and Intangible Assets is R3.1 million (100%) against a Final Appropriation of R3.1 million. The expenditure in compared to the same time in the prior financial year of R994 thousand results in a significant increase of 213.5%, due to a payment made to SITA for the implementation of phase 2 of the National Automated Archival Information Retrieval System (NAAIRS) project based on deliverables.
Payments for financial assets
An expenditure of R749 thousand (100%) incurred versus a Final Appropriation of R749 thousand, which relates to damages on rented cars as well as bad debts written off. Compared to the same period in the prior financial year an expenditure of R221 thousand was incurred resulting in an increase in expenditure of 238.9%. 41<br>
Expenditure on Software and Intangible Assets is R3.1 million (100%) against a Final Appropriation of R3.1 million. The expenditure in compared to the same time in the prior financial year of R994 thousand results in a significant increase of 213.5%, due to a payment made to SITA for the implementation of phase 2 of the National Automated Archival Information Retrieval System (NAAIRS) project based on deliverables.
Payments for financial assets
An expenditure of R749 thousand (100%) incurred versus a Final Appropriation of R749 thousand, which relates to damages on rented cars as well as bad debts written off. Compared to the same period in the prior financial year an expenditure of R221 thousand was incurred resulting in an increase in expenditure of 238.9%. 41<br>
42
42<br>
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DEPARTMENTAL SUMMARY 43<br>
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44<br>
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DEPARTMENTAL SUMMARY 45<br>
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DEPARTMENTAL SUMMARY 46<br>
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DEPARTMENTAL SUMMARY 47<br>
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PROGRAMME 1: ADMINISTRATION 48<br>
49
PROGRAMME 2: INSTITUTIONAL GOVERNANCE 49<br>
50
PROGRAMME 3: ARTS & CULTURAL PROMOTION & DEVELOPMENT 50<br>
51
PROGRAMME 4: HERITAGE PROMOTION & PRESERVATION 51<br>
52
PROGRAMME 4: HERITAGE PROMOTION & PRESERVATION 52<br>
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53 ANNEXURE: Acronyms and Abbreviations<br>
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54 ANNEXURE: Acronyms and Abbreviations<br>
55
THANK YOU<br>