ANNUAL REPORT 201415 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO

ANNUAL REPORT 2014/15 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS AND CULTURE an agency of the Department of Arts and Culture

Vital Statistics • • Revenue Budget Self-generated Revenue OPEX Grant Funding CAPEX Grant Funding Total Employees Total Performance Venues Total Performances Total Audience Attendance R 89, 647, 856 R 24, 556, 278 R 45, 040, 009 R 20, 051, 569 98 6 727 134, 664 an agency of the Department of Arts and Culture 2

Chairperson’s Report PREDETERMINED OBJECTIVES • We are pleased to announce an overall performance against predetermined targets, as set-out in our 2014/15 Annual Performance Plan, of 76% for the year. • This represents an improvement in performance from 2013/14 of 4%. • 18 targets have been achieved 7 partially achieved and only 1 was not achieved, against a total of 26 targets for the year. • Overall, SAST was nominated for 31 Naledi Theatre Awards. Our artistic highlight for the year was the production Marikana – The Musical. This production was nominated 13 times and successfully won 6 Naledi Theatre Awards. • Continuing with our contribution to Nation Building, SAST created 1, 660 short-term job opportunities in our In-house productions for the year. • Efforts to secure sponsorships did produce valuable partnerships. The South African Broadcasting Corporation (SABC) sponsored airtime on both its television and radio networks. We continued into year two of our three year sponsorship agreement with City Property. Other sponsorships came from various theatres, to which we in turn toured our productions, • Audience attendance improved by 2% from 132, 081 in 2013/14 to 134, 664 in 2014/15 an agency of the Department of Arts and Culture 3

Chairperson’s Report, continued FINANCIAL PERFORMANCE • 2014/15 financial year, SAST received operational grants of R 45. 040 million, capex grants of R 20. 051 million and self-generated revenue of R 24, 556 million. • A surplus of R 20. 240 million was realised in the 2014/15 financial year. This was as a result of SAST receiving a capex grant of R 20. 051 million on 31 March 2015. Related capex projects are to commence in the 2015/16 financial year. • Overall our improved controls over budget management has ensured that we delivered our mandate within our operational budget for the financial year. • Unfortunately we received a qualified audit opinion for the 2014/15 financial year. We have now placed our focus on improving internal controls within our finance department and asset management to ensure that we receive a clean audit opinion for the 2015/16 financial year. • Property plant and equipment (PPE) and the aggregation of immaterial uncorrected misstatements were the two areas that the external auditors had identified noncompliance in, which resulted in the qualified audit opinion. The audit scope and methodology applied in reviewing PPE changed from the prior year which resulted in unexpected findings being raised in this area. • It is important to note that, in no other area of operations was there any occurrence of material non-compliance with the PFMA and National Treasury Regulations that contributed to the qualified audit opinion. an agency of the Department of Arts and Culture 4

Acting CEO’s Report • • • 134, 664 patrons visited our theatres during 2014/15, attending a total of 727 performances in 137 productions. In support of our audience development objectives, 15, 831 complimentary tickets were provided to prospective theatre goers. Our established Rendezvous programme featuring Jazz and Comedy continued in 2014/15 together with our flagship festivals; Youth Expressions Festival, Vavasati International Women’s Festival and Mzansi Fela Festival. In this year we introduced a formal programme focusing on School Set-works. We also introduced the Indie. Spotlight programme in 2014/15. 26 productions were staged for 2014/15 which attracted 11, 416 patrons. Featuring the best of South African and African artistic works, this programme is set to become a firm feature in our annual calendar. Our internal auditor’s contract term expired 31 March 2014. Due to various supply chain challenges, this outsourced function could not be filled during the 2014/15 financial year. Internal audit has now been appointed in September 2015. 2014/15 focused on continuing implementation of the SAST Corporate Governance of Information and Communication Technology (CGICT) Policy and Charter, in accordance with the instruction from the Department of Public Service Administration. an agency of the Department of Arts and Culture 5

Acting CEO’s Report, continued • • • We have recently embarked on a skills audit to attract and retain relevant skills that will ensure achievement of strategic objectives. Opportunity for further training at Institutions of higher learning are accorded to employees to enable them to obtain formal credible qualifications. Succession Planning and career paths programmes are also being implemented Health and wellness of employees play a vital role in the success and achievement of the strategic goals, therefore provision for medical aid subsidy is a priority for the financial year ahead. Although our theatres were well booked, the productions were mainly internal productions performed in the smaller venues where rental income was not derived. Commercial productions for the two large venues did not materialise. No performance was cancelled due to technical faults. an agency of the Department of Arts and Culture 6

Production Statistics 2014/15 Productions 100% 90% Internal Productions 80% 70% 60% 10 50% 40% 36 30% 26 20% 10% 0% Productions 4 Performances Internal Productions 12 External Productions Artistic Indie. Spotlight Rendezvouz Set-works Festival an agency of the Department of Arts and Culture 7

& ch Or re t lle at he Ba es tr Co a m Co ed m y pe tit io ns Dr Da am nc a( e Sc Dr ho a ol m a Fa Set -w sh or io n & k) Sh ow s Fe st Go iva sp ls el M Gos us pe ic M Aw l us ic ar ds M - Af ric us M a ic us -D n. D j & rum ic H m M us ip H ing ic - J op b az z & and M us A ic - R fric &B an & So u M l us ica l Se Op m er in a ar Po s& W etry or k Va sho p rie ty s sh ow ic s. T n' re ild ss Cl a Ch Production Statistics, continued Productions by Genre 60 50 40 30 20 10 0 an agency of the Department of Arts and Culture 8

Summary of Performance Achievement of Goals Achieved vs. Target 120% 100% 80% 60% 40% 20% 0% Goal 1 Goal 2 Goal 3 9 Goal 4 Goal 5 Goal 6 Achieved Not Achieved an agency of the Department of Arts and Culture

Programmes Programme 1: Administration Purpose of this programme is to engage in commercial activities which ensure self-generated revenue to augment the Government Grant, to maintain and upgrade our unique Theatre facilities in support of our Artistic ambitions and to ensure its long-term economic sustainability and to comply with applicable Laws, Regulations and Statutory Legislation including the PFMA, the Cultural Institutions Act, Treasury Regulations & LRA. The programme aims to achieve the following SAST goals: Goal 3: Generate revenue from commercial activities which includes Ticket Sales, Rentals, Fundraising and Front of House Sales Goal 4: Ensure long term sustainability of Buildings and Assets Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation Programme One Performance 7 6 5 4 3 2 1 0 10 Goal 3 Goal 4 Goal 6 Number of Indicators Achieved Not Achieved Overall Performance * an agency of the Department of Arts and Culture

Programmes, continued Programme 2: Business Development This programme aims to stage the very best In-house developed and externally sourced Performing Arts work, to promote audience diversity and growth by implementing Audience Development Programmes and to promote the outcomes of the government's programme of action by creating job opportunities. The programme aims to achieve the following SAST goals: Goal 1: Stage In-house Performing Arts productions Goal 5: Develop Theatre going Audiences Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation Programme Two Performance 6 5 4 3 2 1 0 11 Goal 5 Goal 6 Number of Indicators Achieved Not Achieved Overall Performance * an agency of the Department of Arts and Culture

Programmes, continued Programme 3: Public Engagement This programme is intended to provide development opportunities for emerging Arts Practitioners to learn, perform and stage their Productions thereby encouraging Socio-Economic Development. The programme aims to achieve the following SAST goals: Goal 2: Provide development opportunities for emerging Arts Practitioners in the context of our programmes Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation Programme Two Performance 7 6 5 4 3 2 1 0 12 Goal 6 Number of Indicators Achieved Not Achieved Overall Performance * an agency of the Department of Arts and Culture

Organisational Structure Accounting Authority (SAST Council) Chief Executive Officer (A Sekhabi, Acting) Chief Financial Officer (N Soopal) Technical Director Artistic Director (G Viljoen) (A Sekhabi) Financial Manager [Vacant] Stage Services Manager (L Barnard) Maintenance Manager (B Vorster) [Acting] Security Manager (R Motshwene) Parking Manager (E Mashiane) Development Manager (S Blose, Acting) Internal Audit Human Resources Manager (M Mopayi) Performance Information Manager IT Administrator (S Mullen) (S Ahmed) Line-Producer (T Qwabe) Front of House Manager [Vacant] Sales & Marketing Manager (L Mahlabe) Facilities Manager (R Motshwene) Decor Manager (B Lovegrove) an agency of the Department of Arts and Culture 13

Employment Equity Programme Equity, Total 15; 15% 2; 2% 10; 10% 71; 72% African 14 Coloured Indian White an agency of the Department of Arts and Culture

Audit Outcomes Qualified Audit Opinion – Property, Plant and Equipment (PPE) – Aggregation of Immaterial Uncorrected Misstatements Emphasis of matter - Restatement of corresponding figures - Material Underspending of the Budget Predetermined Objective - Clean audit opinion an agency of the Department of Arts and Culture 15

Audit Action Plan to resolve qualification • Detailed action plan addressing the audit opinion raised. • An accounting consulting firm will be appointed to resolve the prior years qualification and will assist with control implementation. • Interim audit to be performed by AG • Skills Audit to identify the current skills gap • Asset management system • Procurement system • Appointment of suitably qualified staff within Finance • Internal Audit an agency of the Department of Arts and Culture 16

Financial information • Statement of Financial Performance Description Income 2015 'R 000 2014 'R 000 Variance Self generated income Sponsorships 23 618 2 249 22 684 720 934 1 529 Grants (includes capex) 65 091 52 236 12 855 90 958 (81 227) 75 640 (83 367) 15 318 2 140 10 509 20 240 (7 727) Total Income Total expenditure Fair value adjustment Surplus/deficit for the year 10 509 27 967 an agency of the Department of Arts and Culture 17

Financial information (continued) • Statement of Financial Performance Description Total Assets Total Liabilities Net Assets 2015 'R 000 178 143 11 067 167 076 2014 Variance 'R 000 ‘R 000 157 422 20 721 10 587 146 835 480 20 241 • Comparison of Actual vs Budget Description Total Income Total Expense Surplus Actual ‘R 000 Budget ‘R 000 Variance ‘R 000 89 648 -69 590 90 959 -81 227 -1 311 11 637 20 058 9 732 10 326 an agency of the Department of Arts and Culture 18

Key Focus Areas • • Clean Administration through the centralization of Procurement & Implementation of Compliant Asset Management Processes & Controls Improve Self-generated Income from facilities rentals and productions Market research has indicated that we need to provide holistic entertainment experience in our offering which will be a key focus area in the current year as well as the years to come. This will encompass the introduction of full service restaurants which cater for our diverse patrons needs Our approach to Sponsorship has changed and we have embarked on a process to assess the value of our facility as well as our market and will henceforth trade these values in exchange for sponsorship Expand Scope of Development efforts & Introduce Partnership Approach Introduce Human Resources Grading and Performance Management System Introduce Career Development Programmes for Staff Development an agency of the Department of Arts and Culture 19