ANNUAL REPORT 2014/15 PRESENTATION TO THE PORTFOLIO COMMITTEE ( 30 SEPTEMBER 2015)

1. ANNUAL REPORT 2014/15 PRESENTATION TO THE PORTFOLIO COMMITTEE( 30 SEPTEMBER 2015)

2. 1 Table of Contents • Legislative Framework • Corporate Governance • Performance Overview • Operational Overview • Report of The Auditor General • Budget vs Expenditure Overview • Human Resources • Conclusion PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

3. 2 LEGISLATIVE fRAMEWORK • Declared a Cultural Institution in terms of Section 3 of the Cultural Institutions Act (Act 118 of 1998) • Listed as a Schedule 3A National Entity in terms of the Public Finance Management Act (Act 1 of 1999) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

4. 3 Corporate governance Vision, Mission & Value • Vision • To be a leading performing Arts and celebration destination that provides access to all, to participate and experience cultural and arts activities across the Free State. • Mission • To use the arts as an instrument to encourage social cohesion and national building, through promotion, recognition and preservation of local and national heritage. • To stimulate economic interest, participation and appreciation of art across racial barriers while soliciting international role players. • Values • PACOFS is committed to becoming a Performing Arts Centre that upholds constitutional values as well as Batho Pele Principles. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

5. 5 Corporate governance Cont… Organizational Structure PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

6. 3 Performance overview Strategic Goals/objectives PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE SEPTEMBER 2015

7. 6 Performance overview – Cont… • Operational / Governance Achievements: • Established relationship with Free State Province (DSACR) • Good relationship brought some of MACUFE activities to PACOFS • In Lesedi FM Jazz Joint = 19 productions • In Andre Huguenet = 9 production • In Studio 1 = has been used as Green Room • In Studio 2 = 31 productions • Orchestra Rehearsal room = 15 Film shows • Free State Boxing Festival 2015 – Live broadcasting by SABC 2 & 9 Radio Stations • Calm / stabilised employee restless • Brought spirit of work commitment to staff • Financial Achievements - deficit reduction: • 2013 - R10,349 • 2014 – R 6,393 • 2015 – R 3,205 • Artistic / Business Development • A Distant Drum • First Stages • The Triumph • Development Programme • Two music school and 1 drama and Seven community group link to festival PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

8. 6 Performance overview – Cont… • Predetermine Objective: • Programme 2:Artistic • 2013/14 • Reliability of reported performance information • Overall, 48% of the targets were not reliable because I was unable to obtain sufficient appropriate audit evidence for 37% of the targets. In addition, 11% of the targets were not valid, accurate and complete when compared to the source information or evidence provided. • Usefulness of reported performance information • A total of 29% of the reported indicators and targets were not consistent with those in the approved annual performance plan. • 2014/15 • Reliability of reported performance information • Significantly important targets were not reliable when compared to the source information or evidence provided. • Usefulness of reported performance information • Insufficient reasons for variances between planned and actual achievements reported in the annual performance report were given for 100% of the targets PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

9. 14 Performance overview – Cont… PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

10. 6 Performance overview – Cont… • Predetermine Objective: • Programme 3:Technical services • 2013/14 • Reliability of reported performance information • I was unable to obtain the information and explanations I considered necessary to satisfy myself as to the reliability of the reported performance information. • Usefulness of reported performance information • A total of 29% of the reported indicators and targets were not consistent with those in the approved annual performance plan. • 2014/15 • Reliability of reported performance information • Significantly important targets were not reliable when compared to the source information or evidence provided. • Usefulness of reported performance information • Insufficient reasons for variances between planned and actual achievements reported in the annual performance report were given for 100% of the targets PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

11. 15 Operational overview Institutional Challenges PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

12. 16 REPORT OF THE AUDITOR GENERAL • Opinion by the Auditor General • 2010/11 - Qualified opinion with matter of emphasis • 2011/12 - Qualified opinion with matter of emphasis • 2012/13 - UnqualifiedAudit Opinion with matter of emphasis • 2013/14 - UnqualifiedAudit Opinion with matter of emphasis • 2014/15 - UnqualifiedAudit Opinion with matter of emphasis • Emphasis of Matter • Irregular Expenditure • Financial sustainability • Compliance with Legislation • Late submission of unaudited financial statements to AG • Lack of Audit Committee functionality • Lack of internal audit functionality PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

13. 18 Budget vs EXPENDITURE overview PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

14. 19 Human resources 1. The vacancies at the finance department, including the CFO, Marketing Manager positions, impacted significantly on the performance of the entity 2. Lack of Human Resources policies have increase instability in the entity 3. Poor performance of Human Resource department has a great impact on staff well being 4. Lack of Performance contracts, Personal Development Plan and skills audit has negative impact on the performance of the entity PACOFS PRESENTATION TO THE COUNCIL MEMBERS 30 SEPTEMBER 2015

15. 27 INFRASTRUCTURE - PICTURES OF COMPLETED PROJECTS PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015

16. 28 CONCLUSION Thank You All !!! PACOFS PRESENTATION TO THE PORTFOLIO COMMITTEE 30 SEPTEMBER 2015