THIRD QUARTER PERFORMANCE REPORT DIRECTORGENERAL ARTS AND CULTURE

THIRD QUARTER PERFORMANCE REPORT DIRECTOR-GENERAL : ARTS AND CULTURE DATE: 27 AUGUST 2019

PRESENTATION OUTLINE § Performance Overview § Comparative Analysis of the First Quarter, Second Quarter and Third Quarter– 2018/19 § Comparative Analysis of the Third Quarter of 2017/18 and the Third Quarter of 2018/19 § Programme-Specific Performance § Highlights of the Third Quarter § Performance Targets which were Achieved in the Third Quarter § Performance Targets which were Not Achieved in the Third Quarter § Expenditure Report 2 2

PERFORMANCE OVERVIEW 3

PERFORMANCE OVERVIEW § It is noteworthy that this is a audited third quarter report, as per Department of Planning, Monitoring and Evaluation (DPME) guidelines. The audited performance reports are generated 120 days after the end of each quarter and are submitted to DPME and presented to the Audit Committee for final assurance. 4 4

PERFORMANCE OVERVIEW Not Achieved 23% (7/30) Achieved 77% (23/30) Achieved Not Achieved 5 5

PERFORMANCE OVERVIEW The Department planned to implement and achieve 30 performance targets during the reporting period. However, only 23 (77%) of the aforesaid targets were achieved and 7 (23%) were not achieved. Below are the targets that were not achieved in the third quarter. § § § § Completion of report regarding the consultations on draft feasibility and due diligence Coordination of cultural diplomacy engagements Provision of support to 6 flagship projects Provision of support to professional artists' projects Provision of support to cultural and creative sector projects through MGE work streams Provision of support to community arts projects Documentation of 1 living human treasure Detailed explanations for the reasons for deviation and corrective actions are covered in the slides for areas of under-achievement. 6 6

COMPARATIVE ANALYSIS OF THE FIRST, SECOND AND THIRD QUARTER PERFORMANCE – 2018/19 7

COMPARATIVE ANALYSIS OF THE FIRST, SECOND AND THIRD QUARTER PERFORMANCE – 2018/19 91% (29/32) 100% 85% (23/27) 90% [VALUE] (23/30) 80% 70% 60% 50% 40% [VALUE] (7/30) 30% 15% (4/27) 9% (3/32) 20% 10% 0% First Quarter: Audited Outcome Second Quarter: Audited Outcome Achieved Not Achieved Third Quarter: Audited Outcome NB: The achievement of targets in the 3 rd quarter decreased by 14% compared to the 91% achievement in the 2 nd quarter reporting period and it decreased by 8% when compared to the 85% achievement in the 1 st quarter reporting period 8 8

COMPARATIVE ANALYSIS OF THE THIRD QUARTERS [2017/18 VS 2018/19] 9

COMPARATIVE ANALYSIS OF THE THIRD QUARTERS (2017/18 VS 2018/19) 80% (41/51) 77% (23/30) 70% 60% 50% Achieved 40% 23% (7/30) 30% Not Achieved 40% (10/51) 20% 10% 0% Third Quarter of 2017 -18: Audited Outcome Third Quarter of 2018 -19: Audited Outcome NB: The 3 rd quarter performance of 2018/19 has decreased by 3% compared to 3 rd quarter performance of 2017/18 10 10

PROGRAMME-SPECIFIC PERFORMANCE 11

PROGRAMME-SPECIFIC PERFORMANCE 12 12

HIGHLIGHTS OF THE THIRD QUARTER • On 09 October 2018, Minister Nathi Mthethwa opened the Library and Information Association of South Africa (LIASA) Conference held at the Cape Town Convention Centre and theme of the Conference was “Library and Information Services: Agents of Community Development and Social Transformation”. The Conference offered an opportunity for practitioners, scholars, researchers, academics and interested parties from the library and information services sector as well as other areas to engage on matters that pertain directly to our society. • Former Deputy Minister Maggie Sotyu held the Mama Albertina Sisulu Memorial Lecture on 11 October 2018 at Thembalethu Community Hall in George. The Deputy Minister kicked off the programme with a flag hoisting ceremony at the local primary school where she also addressed the learners and encouraged them to love and embrace their national flag. She also urged them to have dreams and work hard in their studies as education is the way out of poverty and a key for a better future. Speaking about the Centenary of Madiba and Mama Albertina Sisulu, she mainly focused on the role played by Mama Albert Sisulu and described her as amazing and said although “it is not recorded anywhere it is important that learners must be taught about her contribution to the liberation of this democratic country”. 13 13

HIGHLIGHTS OF THE THIRD QUARTER CONT. • Minister Nathi Mthethwa hosted a delegation of BRICS Ministers of Culture to provide strategic leadership and guidance on how governments can best strengthen collaborations amongst member states, market access, and to promote cultural diplomacy for a broader Government socio-economic agenda. The event formed part of the 10 th BRICS Summit hosted under theme, “BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4 th Industrial Revolution”. The Minister Mthethwa also held a gala dinner as part of the networking session and also to entertain and showcase South African music. • As the year 2018 completes the first decade of the BRICS Summit, the South African Government through the Department of Arts and Culture held the Inaugural BRICS Fashion Show and Fashion Business Forum from 24 - 26 October 2018 at the Protea Court rooftop, Sandton City, Johannesburg during the South African Fashion Week (SAFW). This was hosted in partnership with the South African Fashion Week. The BRICS Fashion Show and the Fashion Business Forum showcased some of the best local and international designs BRICS could offer. 14 14

HIGHLIGHTS OF THE THIRD QUARTER CONT. • As part of on going Government efforts to promote the African Agenda, South Africa through the Department of Arts and Culture in collaboration with the South African Embassy, and the Ministry of Tourism, Arts and Culture of Ghana hosted the South Africa Cultural Season in Accra, Ghana. Former Deputy Minister Makhotso Sotyu led a delegation of South African artists to showcase the country’s artistic talent; and to create an inter-cultural and inter-generational dialogue between the two countries from 15 -19 October 2018 as part of the department’s African Cultural Seasons Programme. The programme was among others aimed at: § Strengthening Africa Bilateral Relations; § Promoting regional integration; § Strengthening cultural and people-to-people relations § Laying a basis for expanded trade and the promotion of cultural diplomacy as part of Government’s broader socio-economic agenda. • On Friday, 30 November in Johannesburg, Minister Nathi Mthethwa handed out cheques for the royalties payout to some of the local artists. These payments were for songs played from 2014 2015 across all 18 SABC radio stations. In June this year, the SABC released payment to IMPRA as airplay royalties for the musicians and songwriters. 15 15

HIGHLIGHTS OF THE THIRD QUARTER CONT. • It was the first time musicians received their needle time royalties. Some of the musicians who received their payment were Blondie Makhene, Papa Makhene, AKA, Chicco Twala, Freddie Gwala, Mzwakhe Mbuli, Babsy Mlangeni, William Mthethwa, Sizwe Zakho, Bheki and Linah Ngcobo, and the late Jabu Khanyile represented by his wife. • President Cyril Ramaphosa described the Day of Reconciliation as a day on which the country reaffirms the commitment to eradicate poverty, hunger, homelessness and unemployment. “We cannot be a reconciled nation for as long as the majority of our people continue to suffer from the injustices of the past. This means that we all need to be part of the effort to promote investment, achieve inclusive growth, improve the conditions of the poor and create employment on a massive scale”. The President said this during his keynote address to celebrate Reconciliation Day on Sunday, 16 December at the Walter Sisulu University in Umtata. This year the celebration was held under theme "The Year of Nelson Mandela and Albertina Sisulu, Liberators for Reconciliation". South Africans across the country were encouraged to reach out to each other, and to build unity amongst fellow compatriots, as well as with the region, continent and the international community. 16 16

PERFORMANCE TARGETS WHICH WERE ACHIEVED IN THE THIRD QUARTER 17

ADMINISTRATION PERFORMANCE INDICATOR 2018/19 ANNUAL 3 RD QUARTER TARGET ACTUAL ACHIEVEMENT AS AT % ACHIEVEMENT 31 DECEMBER 2018 No. of communication and marketing 8 campaigns implemented to profile the Department 1 1 communication and marketing campaign was implemented to profile the Department (Reconciliation Day) 100% % of total value of procurement awarded to BBBEE-compliant service providers >70% 78. 66% of total value of procurement was awarded to BBBEE compliant service providers Over achieved by 8. 66% No. of Izimbizo held 20 5 12 Izimbizo were held Over achieved by 140% Number of quarterly monitoring reports approved 4 1 1 quarterly monitoring report (training) was approved 100% 18 18

INSTITUTIONAL GOVERNANCE PERFORMANCE 2018/19 ANNUAL INDICATOR TARGET Number of departmental and entities’ performance information reports or documents approved 15 3 RD QUARTER TARGET ACTUAL ACHIEVEMENT AS AT % ACHIEVEMENT 31 DECEMBER 2018 3 2 departmental and 1 entities performance 100% information reports or documents approved as follows: 1. Q 1 audited report (2018/19) and Q 2 preliminary report (2018/19) 2. Entities second quarter analysis report 3. Outcome 14 report Approved governance tools for DAC public entities Approved governance framework for DAC public entities Second draft The second draft governance framework was developed with inputs from framework developed the consultations with the sectoral forum 100% 19 19

INSTITUTIONAL GOVERNANCE PERFORMANCE INDICATOR No. of national days commemorated 2018/19 ANNUAL 3 RD QUARTER ACTUAL ACHIEVEMENT AS AT TARGET 31 DECEMBER 2018 6 1 1 national day was commemorated on 16 December 2018 (Reconciliation Day) % ACHIEVEMENT 100% No. of social cohesion projects 12 implemented 3 3 social cohesion projects were implemented 100% No. of target-group programmes supported 1 1 Target Group Programme Supported (Field Band Championship) 100% 3 20 20

ARTS AND CULTURE PROMOTION AND DEVELOPMENT PERFORMANCE INDICATOR 2018/19 ANNUAL 3 RD QUARTER TARGET ACTUAL ACHIEVEMENT AS AT TARGET No. of domains in which terminologies are developed 4 % ACHIEVEMENT 31 DECEMBER 2018 100 Road Safety terminologies developed 100 Pharmaceutical terminologies developed 100 Engineering and Construction terminologies developed 100 Indigenous Plants and Animals Terminologies developed 100 Road Safety terminologies developed 100% 100 Pharmaceutical terminologies developed 100 Engineering and Construction terminologies developed 100 Indigenous Plants and Animals terminologies developed 21 21

ARTS AND CULTURE PROMOTION AND DEVELOPMENT PERFORMANCE INDICATOR 2018/19 3 RD QUARTER TARGET ANNUAL ACTUAL ACHIEVEMENT AS AT % ACHIEVEMENT 31 DECEMBER 2018 TARGET No. of multi-year HLT projects supported 6 6 HLT projects support continued Support for 6 multi-year HLT projects continued 100% No. of market access platforms 13 supported 5 5 market access platforms were supported 100% % of documents received and accepted that are translated and/or edited 100% of documents (168) that were received and accepted were translated and/or edited 100% No. of bursaries awarded for development of qualified language practitioners 300 509 bursaries were awarded for the development of qualified language practitioners Over achieved by 70% 22 22

HERITAGE PRESERVATION AND PROMOTION PERFORMANCE 2018/19 ANNUAL INDICATOR TARGET 3 RD QUARTER TARGET ACTUAL ACHIEVEMENT AS AT % ACHIEVEMENT 31 DECEMBER 2018 No. of Gazette notices on standardisation of geographical names published 3 1 The government gazette on the standardized geographical names was published on the 24 th of December 2018 No. of heritage infrastructure projects financially supported 4 Progress report developed One progress report was developed on 100% heritage infrastructure projects that were financially supported No. of flags installed in schools 1 000 275 flags were installed in schools 100% Over achieved by 38% 23 23

HERITAGE PRESERVATION AND PROMOTION PERFORMANCE 2018/19 ANNUAL INDICATOR TARGET 3 RD QUARTER TARGET ACTUAL ACHIEVEMENT AS AT % ACHIEVEMENT 31 DECEMBER 2018 No. of newly built and/or modular libraries supported financially 29 29 newly built and/ or modular libraries support continued 29 newly built and / or modular libraries were supported financially 100% Legislative framework (SALIS Bill) developed SALIS Bill submitted to Cabinet for approval SAPLIS Bill submitted to Cabinet The SALIS Bill was signed by the Minister on 11 December 2018 and submitted to Cabinet 100% No. of policies developed 1 policy on Underwater cultural heritage developed Underwater Cultural Heritage Policy submitted to Cabinet The policy was submitted and approved by Cabinet 100% 24 24

PERFORMANCE TARGETS WHICH WERE NOT ACHIEVED IN THE THIRD QUARTER 25

INSTITUTIONAL GOVERNANCE PERFORMANCE 2018/19 ANNUAL 3 RD QUARTER ACTUAL ACHIEVEMENT REASON FOR INDICATOR TARGET AS AT 31 DECEMBER DEVIATION CORRECTIVE ACTIONS 2018 Approved feasibility and due diligence reports on amalgamation of DAC public entities Approved Feasibility and due diligence report on amalgamation of DAC public entities Consultations on draft feasibility and due diligence reports completed The appointment letter could only be issued to the winning bidder in December 2018 The amounts quoted by service providers in the Request for Proposal (RFP) were higher than the budgeted amount thus prompting the Department to go out for a tender process. This delayed the appointment of a service provider to do the consultations The plenary meeting with the service provider was held on 17 January 2019. A project plan with timeliness was developed. No. of cultural diplomacy engagements coordinated 20 5 5 cultural diplomacy engagements were coordinated One report was not signed as per the approved TIDs. However, the draft reports were submitted. 4 reports were approved and only one report is not approved. The unit will make follow up to ensure that the report is approved. All signed reports were uploaded on Barn. Owl 26 26

ARTS AND CULTURE PROMOTION AND DEVELOPMENT PERFORMANCE 2018/19 ANNUAL 3 RD QUARTER ACTUAL ACHIEVEMENT AS AT INDICATOR TARGET 31 DECEMBER 2018 REASON FOR DEVIATION CORRECTIVE ACTIONS No. of flagship projects supported 20 6 6 flagship projects were supported Final payments were not processed due to budget constraints. The budget had to be reprioritised towards the settlement of a Court Order obligation Budget will be sought through the final virement process and payment will be made before the end of the 4 th quarter No. of professional artists' projects supported 6 3 3 professional artist's projects were supported One report was found to be The programme inadequate. has engaged the beneficiary to redo the report and to present a more adequate report which has since been submitted. 27 27

ARTS AND CULTURE PROMOTION AND DEVELOPMENT PERFORMANCE 2018/19 ANNUAL 3 RD QUARTER ACTUAL ACHIEVEMENT AS AT 31 DECEMBER INDICATOR TARGET 2018 No. of cultural and creative sector projects supported through MGE work streams 30 No. of community arts projects supported 150 10 REASON FOR DEVIATION CORRECTIVE ACTIONS 10 cultural and creative sector projects One report was only initialled were supported through MGE work and not fully signed. The fully signed report has since been submitted. streams 60 60 community arts projects were Progress reports were due in Alignment of all supported the fourth quarter as per the target reports in line contracts and were thus not with TIDs and yet available contractual obligations. Outstanding reports were submitted in the fourth quarter 28 28

HERITAGE PRESERVATION AND PROMOTION PERFORMANCE 2018/19 ANNUAL 3 RD QUARTER ACTUAL ACHIEVEMENT AS AT INDICATOR TARGET 31 DECEMBER 2018 No. of living human treasures documented per annum 2 1 The appointed Service Provider has already interviewed, conducted research and written draft chapters on the two selected Living Human Treasures REASON FOR DEVIATION CORRECTIVE ACTIONS The service provider to produce two books on two selected Living Human Treasures was not appointed on time The book will be submitted in the fourth quarter (31 March 2019) 29 29

EXPENDITURE REPORT: QUARTER 3 30

SUMMARY OF ADJUSTED APPROPRIATION VS EXPENDITURE & QUARTERLY PROJECTED BUDGET VS EXPENDITURE 31

Summary of Adjusted Appropriation & Quarterly Projected Budget versus Expenditure Per Programmes Administration Adjusted Expenditure Appropriation April-Dec 2018/19 2018 Total % Available Spent R’ 000 317 231 361 78 956 Projected Budget Oct - Dec 2018 Expenditure (Over)/Under % Oct - Dec Spent 2018 R’ 000 75% 72 649 84 733 (12 084) 117% Institutional Governance Arts & Culture Promotion & Development Heritage Promotion & Preservation 287 823 153 338 134 485 53% 84 877 93 866 (8 989) 111% 1 167 540 857 087 310 453 73% 323 758 250 782 72 976 77% 2 573 057 1 904 667 668 390 74% 696 968 669 478 27 490 96% Total 4 338 737 3 146 453 1 192 284 73% 1 178 252 1 098 859 79 393 93% 32 32

Quarterly Projected Budget versus Expenditure per Programme depicted on a graph 800 R[VALUE] mil 700 R[VALUE] mil (96%) 600 500 400 R[VALUE] mil 300 R[VALUE] mil (77%) 200 100 0 R[VALUE] mil (117%) R[VALUE] mil Administration R[VALUE] mil (111%) Institutional Governance Projected budget Arts & Culture Promotion & Development Heritage Promotion & Preservation Expenditure 33 33

Summary of Adjusted Appropriation & Quarterly Projected Budget versus Expenditure Per Economic Classification Adjusted Appropriation 2018/19 Expenditure April-Dec 2018 R’ 000 Compensation of Employees 253 530 178 344 75 186 Goods & Services 379 151 296 219 1 423 684 1 116 397 Economic Classification Provinces & Municipalities Interest & Rent on Land Dept Agencies & Accounts (Cur) Dept Agencies & Accounts (Cap) Non Profit Org (Cur) - 8 887 Total Available % Spent Projected Budget Oct - Dec 2018 Expenditure (Over)/Under % Oct - Dec Spent 2018 R’ 000 70% 61 821 60 537 1 284 98% 82 932 78% 90 948 116 209 (25 261) 128% 307 287 78% 412 346 - 100% (8 887) - - 1 488 040 292 768 169 590 1 085 577 126 382 144 903 402 463 166 386 24 687 73% 43% 85% 391 964 105 397 36 639 342 432 45 887 29 868 49 532 59 510 6 771 87% 44% 82% Non Profit Org (Cap) 48 389 10 478 37 911 22% 2 300 7 969 (5 669) 346% Households 23 759 22 117 1 642 93% 2 400 6 365 (3 965) 265% Public Corporations (Cur) 102 582 98 256 4 326 96% 13 466 38 279 (24 813) 284% Public Corporations (Cap) 14 751 8 461 6 290 57% 750 - 750 Foreign Gov & International Org 0% 4 809 4 106 703 85% 500 3 106 (2 606) 621% 114 593 26 043 88 550 23% 53 965 23 634 30 331 44% 17 650 15 386 2 264 87% 2 544 10 358 (7 814) 407% Software and other intangible - 499 (499) - 2 000 (937) Higher Education Institutions Payments for Financial Assets Total 5 441 4 338 737 1 212 1 178 252 2 650 156 1 098 859 Heritage Assets Machinery and equipment 4 212 1 229 186 (186) 3 146 453 1 192 284 77% 73% 2 937 (-47%) (1 438) (156) 79 393 34 219% 93% 34

Projected budget ts en ym l. A ts ss e 2 cia e ib l -1 io ns st itu t ng in ta In an in r. F fo io n at uc Ed en t pm 3 10 Pa er er ot h ui eq se ts 24 gh d an d As 1 3 Hi e ar ftw an e 38 So ry hi ne ac rg l. O p) 1 0 rit ag na (C a r) (C u 13 He tio na er In t ns ns at io Co rp or 2 6 Go v& bl ic s 37 30 M gn ei Fo r tio ol d eh 2 8 Pu po ra or 0 0 ic C bl Pu p) Ca g( Or r) Cu g( 46 Ho us it of Pr Or 50 n 62 60 No ) 91 it ap 116 of (C ) ur (C nd 350 Pr ts co un Ac ts La s 400 n & on co un Ac Re nt lit ie pa 412 No ie s nc ge t. A & & es t ie s nc te r s ice 450 De p ge t. A De p ici un M rv Se s ee 150 In s& ce in ov ds & oy m pl 100 Pr of E -50 Go o io n at ns pe Co m Quarterly Projected Budget versus Expenditure per Economic Classification depicted on a graph 392 342 300 250 200 105 54 0 1 3 0 1 Expenditure 35 35

EXPLANATION OF EXPENDITURE VARIANCE ON QUARTERLY PROJECTED BUDGET PER ECONOMIC CLASSIFICATION 36

Explanation of Expenditure Variance Per Economic Classification Economic classification Description of the line item Remarks Compensation of Employees The line item includes • remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, • cost of living allowances, house allowances, bonuses, pension, medical aid etc. An actual expenditure of R 60. 5 million (98%) versus a quarterly projected budget of R 61. 8 million, was incurred in the 3 rd quarter. The variance is caused by vacant posts in the process of being filled. 37 37

Explanation of Expenditure Variance Per Economic Classification Economic classification Description of the line item Remarks Goods and Services The item includes • An actual expenditure of R 116. 2 million (128%) versus payments for all a quarterly projected budget of R 90. 9 million, was goods and services to incurred in the 3 rd quarter. The over expenditure is be used by a due to the following: government unit i. e. goods or services of a Ø DPW claims for lease of Sechaba House for the month current nature, of April to August 2018; excluding purchases Ø GCIS claims for the marketing of Heritage and of capital assets. Women’s month celebrations; Ø Payment to the service provider appointed for the implementation of the Heritage Day celebration; Ø Payment for international travel claims received from DIRCO; and Ø Payment to the event management company for the implementation of the SA/Ghana Cultural Seasons hosted in Accra (Ghana). 38 38

Explanation of Expenditure Variance Per Economic Classification Description of the line item Provinces and Municipalities (Conditional Grant on Community Libraries) The expenditure relates to the transfers for the Conditional grant on Community Libraries and funds are transferred to various Provinces on a quarterly basis, including MGE projects. Remarks • An actual expenditure of R 438. 8 million (106. 4%) has been incurred by Provinces versus a quarterly projected transfer of R 412. 3 million in the 3 rd quarter. • The spending per Province is outlined as follows: 39 39

Summary of Total Allocation vs. Expenditure & Quarterly Projected Budget vs Expenditure Per Province Division of Provincial Revenue Roll-Overs Act 2018 R’ 000 Total Available R’ 000 Payment Schedule April-Dec 2018 Provincial % % actual Transferred Actual payments of payments April-Dec national of total 2018 allocation available R’ 000 Projected Actual (Over) / % Actual Expenditure Under Spent transfer by Province by Oct-Dec National 2018 Oct-Dec 2018 R’ 000 Eastern Cape 160 584 - 160 584 120 584 110 361 75. 1% 68. 7% 52 093 51 841 252 99. 5% Free State 159 504 14 805 174 309 118 309 96 710 74. 2% 55. 5% 40 360 35 730 4 630 88. 5% Gauteng 168 530 45 714 244 151 273 156 435 89. 8% 73. 0% 68 003 89 242 -21 239 131. 2% Kwa. Zulu. Natal 174 397 - 174 397 137 710 119 647 79. 0% 68. 6% 54 129 62 299 -8 170 115. 1% Limpopo 125 643 3 801 129 444 100 681 87 430 80. 1% 67. 5% 31 568 26 138 5 430 82. 8% Mpumalanga 162 479 - 162 479 124 006 142 259 76. 3% 87. 6% 42 669 47 674 -5 005 111. 7% Northern Cape 159 554 29 310 188 864 134 384 126 160 84. 2% 66. 8% 32 810 52 619 -19 809 160. 4% North West 136 369 3 572 139 941 105 281 71 77. 2% 51. 3% 38 253 22 808 15 445 59. 6% Western Cape 176 624 - 176 624 168 121 919 70. 3% 69. 0% 52 461 50 465 1 996 96. 2% 1 032 692 78. 4% 67. 9% 412 346 Total 1 423 684 97 202 1 520 886 1 116 396 438 816 -26 470 106. 4% 40 40

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Departmental Agencies & Accounts (Current) This expenditure item relates • An actual expenditure of R 342. 4 million to subsidies to the (87%) versus a quarterly projected budget of Departments’ Public Entities. R 392. 0 million for subsidies, was transferred The Performing Arts to the various entities in the 3 rd quarter. Institutions transfers are processed quarterly, • The variance is mainly as a result of transfer Libraries and Heritage to the NEF for the Venture Capital Fund Institutions transfers are which could not be processed pending a done on a monthly basis. progress report from the entity. 41 41

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Departmental Agencies & Accounts (Capital) This expenditure item • An expenditure of R 45. 9 million (44%) versus a relates to maintenance, quarterly projected budget of R 105. 4 million, was upgrade and incurred in the 3 rd quarter. The under refurbishment of the expenditure is mainly due to the following: Departments’ Playhouses, Museums Ø An amount of R 13. 5 million was reprioritised from and Libraries as well as the Market Theatre and the National Film and the construction of Video Foundation to needy projects during the Legacy Projects. AENE process. Ø Urgent transfer required by the Robben Island Museum in the 2 nd quarter as a result of reprioritisation to priority projects to address issues of Health and Safety. 42 42

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Departmental Agencies & Accounts (Capital) This expenditure item Ø The Playhouse Company sent a request to DAC to relates to maintenance, reprioritise its capital works allocation to a upgrade and shortfall on their stage lift project. Funds can only refurbishment of the be transferred to the entity upon approval of the Departments’ internal submission by the Accounting Officer in Playhouses, Museums this regard. and Libraries as well as the construction of Legacy Projects. 43 43

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Non Profit This expenditure relates • A current transfer of R 29. 9 million (82%) versus a Institutions to subsidies to BASA, quarterly projected budget of R 36. 6 million, was (Current) Blind SA, Engelenburg incurred in the 3 rd quarter. Arts Collection and nonprofit organisations • The under expenditure is as a result of the bulk of beneficiaries of MGE, transfers made to Cultural and Creative Industries Cultural Development, beneficiaries in the 1 st and 2 nd quarter. Heritage as well as Arts & Youth Development projects. Non Profit This expenditure relates • A current transfer of R 8. 0 million (346%) versus a Institutions to Capital works projected budget of R 2. 3 million, was incurred in the (Capital) transfers made to Non 3 rd quarter. The over expenditure is due to a journal Profit Organizations. posted to clear a payment done to the National Heritage Project from a suspense account to expenditure upon creation of the beneficiary on BAS. 44 44

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Households This expenditure item • An expenditure of R 6. 4 million (265%) relates to financial versus a quarterly projected budget of assistance projects that the R 2. 4 million was incurred in the 3 rd Department fund during the quarter. The higher than anticipated financial year, MGE funding spending is owing to transfers to higher to individuals/persons and education institutions towards Bursaries for employer social benefits. Heritage Professionals and grant-in-aid transfers made to individuals for Cultural & Creative Industries projects. Public Corporations (Current) This expenditure relates to transfer payments to MGE, Cultural Development, Human Language Technologies and Institutional Governance projects. • A current transfer of R 38. 3 million (284%) versus a projected budget of R 13. 5 million, was incurred in the 3 rd quarter. The major over expenditure is owing to a journal posted to correct wrong classification of MGE beneficiaries on BAS by National Treasury. Correction was made from Non Profit Institution to this classification in October. 45 45

Economic Classification Public Corporations (Capital) Description of the line item Remarks This expenditure relates to • There is no expenditure incurred versus a transfer payments to public projected budget of R 750 thousand in the 3 rd and private enterprises quarter. beneficiaries implementing Performing Arts and • The underspending is as a result of delays in Heritage Legacy finalisation of memorandum of agreement for infrastructure projects. the upgrading of community arts centres project. 46 46

Explanation of Expenditure Variance Per Economic Classification Description of the line item Foreign Government & International Organisations This budget relates to transfers made to Foreign Government and International Organisations. Remarks • There is an expenditure of R 3. 1 million (621%) incurred versus a quarterly projected budget of R 500 thousand in the 3 rd quarter. • The major over expenditure is owing to late submission of invoice by the Commonwealth Foundation. DAC only received the invoice in September and the payment was processed in October 2018 instead of August (2 nd quarter) as anticipated. 47 47

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Heritage Assets This expenditure item • An expenditure of R 23. 6 million (44%) was relates to assets of incurred versus a quarterly projected budget of significant value for R 54. 0 million. conservation of historical, agricultural or heritage • Request to reprioritise capital works budget and purposes. declaration of unspent funds from this economic classification during the Adjusted Estimates of National Expenditure (AENE) process was approved by National Treasury. This is due to a major under-expenditure as a result of varied challenges experienced with regards to the implementation of capital works of legacy projects. 48 48

Explanation of Expenditure Variance Per Economic Classification Description of the line item Machinery and equipment This budget relates to the • procurement of machinery and equipment including IT equipment. • An expenditure of R 10. 4 million (407%) was incurred versus a quarterly projected budget of R 2. 5 million in the 3 rd quarter. This budget relates to the • procurement of computer software. A minus R 937 thousands expenditure (-47%) was incurred versus a quarterly projected budget of R 2. 0 million. This is due to a journal posted to correct the classification of the annual renewal of Operating and Security Licenses which were incorrectly processed as Capital Assets under this classification in the 1 st and 2 nd quarter instead of Goods and Services under Computer Services. Software and other intangible assets Remarks The over expenditure is owing to invoices paid to the service provider for the installation of boardrooms audio visual equipment and telecoms infrastructure equipment based on completed work for the rolled over funds. 49 49

Explanation of Expenditure Variance Per Economic Classification Description of the line item Remarks Payment for financial assets This item consists mainly of transactions that were written off as a result of theft, loss and irrecoverable debts. • An expenditure of R 156 thousands was incurred versus a nil projected budget in the 3 rd quarter. The expenditure relates to writeoffs stemming from the damages incurred during the use of hired vehicles on behalf of departmental officials. Higher Education Institutions This expenditure item relates to Transfers made to Higher Education Institutions. • An expenditure of R 2. 6 million (219%) was incurred in the 3 rd quarter versus a quarterly projected budget of R 1. 2 million. • The high spending is owing to delays in acquiring expenditure authorisation signature by the designated official for the Human Language Technology project. The transfer to the higher education institution was projected to take place in September. 50 50

Remarks • The department incurred expenditure of R 1. 1 billion (93%) versus a quarterly projected budget of R 1. 2 billion in the 3 rd quarter. • An annual budget of R 4. 3 billion, reflect an actual spending of R 3. 1 billion (73%) in the 3 rd quarter. 51 51

ANNEXURE: ACRONYMS AND ABBREVIATIONS ITEM AENE DESCRIPTION ITEM DESCRIPTION HLT HUMAN LANGUAGE TECHNOLOGY BAS ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE BASIC ACCOUNTING SYSTEM IMPRA BASA BUSINESS AND ARTS SOUTH AFRICA LIASA BBBEE MGE BRICS BROAD-BASED BLACK ECONOMIC EMPOWERMENT BRAZIL, RUSSIA, INDIA, CHINA, SOUTH AFRICA INDEPENDENT MUSIC PERFORMANCE RIGHTS ASSOCIATION LIBRARY AND INFORMATION ASSOCIATION OF SOUTH AFRICA MZANSI GOLDEN ECONOMY NEF NATIONAL EMPOWERMENT FUND DAC DEPARTMENT OF ARTS AND CULTURE PC PORTFOLIO COMMITTEE DIRCO DEPARTMENT OF INTERNATIONAL RELATIONS AND COOPERATION DEPARTMENT OF PLANNING MONITORING AND EVALUATION DEPARTMENT OF PUBLIC WORKS SA SOUTH AFRICA SABC SOUTH AFRICAN BROADCASTING CORPORATION SAFW SOUTH AFRICAN FASHION WEEK GOVERNMENT COMMUNICATION INFORMATION SYSTEM SAPLIS SOUTH AFRICAN PUBLIC LIBRARY AND INFORMATION SERVICES DPME DPW GCIS 52 52

THANK YOU 53