PACOFS PRESENTATION ON ANNUAL REPORTFOLIO COMMITTEE INTERIM CEO

PACOFS PRESENTATION ON ANNUAL REPORTFOLIO COMMITTEE INTERIM CEO: MR ZOLANI MKIVA 10 October 2017

Performance Overview 2016/17 • Presented 56 performances * 21 Local Productions The productions were presented by Bloemfontein Directors or producers * 18 partnerships Partnership productions included, New Revelations dvd launch, Blood speaks, Royal Moscow Ballet, Free state Fashion Week, Miss Free state, The Showdown hip hop, Naycha, Mohale dvd launch, Hallelluja SA, The Soil, Verplaas, Simple stories, Pilatus, Tribute to Leonie, Impregnated by Dance, Die Strip show/ as drome Vlerke kry, Thabeng, & Radi cd launch. * 10 External Clients The following productions were hosted by the Theatre department. Fichardt Park Passion play, Moments 2016, Heart Songs, Varsity Sings, Sand du Plessis Revue, Grey college festival, Mrs Style, Nataniel in Concert, SA sports Awards & Evita. * 7 Outreach programmes A total of 24104 audience members attended the productions.

Performance Overview 2016/17 con’t…. . • Strengthened the relationships with Province and Municipalities: – Partnered with Province for hosting MACUFE – Partnered with Xhariep District Municipality for the hosting of the Xhariep Heritage Event • Hosted National and Provincial events such as: – SA National Sports Awards Hosted the event on behalf of the National department of Sports – Free State Arts Festival In partnership with UFS, Volksblad and various other national sponsors. – Free State Fashion Week In partnership with local sponsors – Homebrew Productions of Macufe In Partnership with the DSACR, various dance & drama productions were selected from the 5 districts and given a platform at the festival.

Future Plans of the Institution • All Districts Municipalities in the Province will be engaged for purposes of resource mobilization as well as audience development. • Council has taken a resolution that PACOFS should participate in BRICS and AU activities. These plans will reflect in the artistic programme, these will include planned trips as well as plans on resource mobilization

CASH AND CASH EQUIVALENTS Included in the cash and cash equivalents of 2016/17 is Unspent Conditional Capital Grants DESCRIPTION Initial Deposit DATE 31/05/2014 AMOUNT 11, 000. 00 Withdrawal Balance 23/06/2014 (2, 000. 00) 9, 000. 00 Interest Accumulated Balance 462, 722. 30 1/04/2015 9, 462, 722. 30 31/10/2016 617, 335. 51 10, 080, 057. 81 30, 000. 00 Interest Accumulated Deposit Interest Accumulated TOTAL 1, 823, 578. 58 31/03/2017 41, 903, 636. 39 NB: The R 2 million withdrawn from the account has only been identified during September 2017 and we are still investigating as DAC has indicated that they did not gave approval as stated in the memorandum signed by the former CEO and Finance Manage.

CASH AND CASH EQUIVALENTS Included in the cash and cash equivalents of 2016/17 is Unspent Conditional Incubator Grant and monies in the Trust Account DESCRIPTION INCUBATOR CAPITAL EXPENDITURE AMOUNT 4, 327, 610. 59 COBUS ROSSOUW TRUST 59, 859. 35 PIERS NICKOLSON TRUST 61, 817. 72 VRYSTAAT MUSIEK VERENIGING 14, 662. 11 TOTAL 4, 463, 949. 77

Adverse Matters Description Audit Opinion 2016/17 Property Plant and Equipment Adverse Capital Works in Progress Adverse Repairs and Maintenance Adverse Commitments Adverse Amount Audit Opinion R 2015/16 23, 600, 645. 0 0 Qualified 23, 256, 617. 0 0 Qualified 962, 488. 00 Qualified 352, 305. 00 Qualified Receivables from Exchange Adverse Transactions 0 General Expenses Adverse 00 Statement of Budget and Actual Amounts Adverse - Amount Audit Opinion R 2014/15 - Amount Audit Opinion R Amount 2013/14 R Unqualified - 0 Unqualified 1, 158, 364. 0 0 Unqualified - - Unqualified - Unqualified - 962, 488. 0 1, 158, 000. 0 Qualified - 547, 908. Qualified - NB: 1. Property, Plant and Equipment was disclosed same way since 2014/15 financial year R 23 600 645. 00 2. Capital Works in Progress was disclosed as R 42 287 394. 00 during 2013/14 financial year and an amount of R 23 256 617. 00 has been disclosed as such since 2014/15 to date. 3. Receivables from Exchange includes an amount of R 706 150. 00 for which a debtor (Ultimate Sporting Concept (Pty) Ltd was created on 14 and 18 January 2016 and we could not obtain contract entered between the debtor and PACOFS 4. General Expenses - Adjustments were done but AG did not have time to check the adjustments 5. Although evidence were provided of the signed shareholder compact we could not obtain copy of the approved budget as DAC was also

Other Matters • Restatement of corresponding figures: - - • Restatement were mainly as a result of income incorrectly mapped to General Expenses during 2015/16 financial year. This resulted in the revenue and general expenses of the previous year understated. Production cost were classified by function and not by nature whereas other expenses were classified by nature Irregular Expenditure: - Contract entered into the previous years still have major impact in the current financial year and the prior year irregular expenditure has to be reinstated

SUCCESSES • The appointment of the two Executives (CFO and Artistic Director) as well as the HR Manager. • Council has now appointed the Interim CEO who has been a member of Council for sometime. • Salary increase negotiations went well without strike. • Advertised for the appointment of Restructuring Service Provider • Turnaround plan has been developed and implementation has commenced. • Developed SCM and Irregular, Fruitless and Wasteful Expenditure Policy. • National Treasury was requested to offer training on the SCM as well as the Preferential Procurement Regulation of 2017 and the training happened on the 05 October 2017. • Platform to engage with Unions has been established and it is yielding success. • 2017 Financial year ended up with a surplus of R 2 627 925

CHALLENGES • Leadership vacuum for almost 3 years contributed to the instability at PACOFS. • The recent resignation of the CEO, the appointment of the internal official as Acting CEO. • Lack of proper planning as it relates to core business • Lack of funds to implement arts promotion and arts development projects and programs

THANK YOU