SAHRA Presentation to the Arts and Culture Parliamentary Portfolio Committee

1. SAHRA Presentation to the Arts and Culture Parliamentary Portfolio Committee Presented By: Ms MmabathoRamagoshi Acting CEO 20 March 2013

2. Table of Contents • Introduction • Progress report: • Turnaround Strategy • Disclaimer Audit Report • Status of the assessment of PHRAs and recommendations for a different approach.

3. Introduction • During October 2012 SAHRA presented a report to the Portfolio Committee outlining the challenges faced by the entity, which have resulted with a disclaimer audit report for the 2011/12 financial year. • The presentation also outlined the intervention strategies which the Council committed to implementing to address the dysfunctional state of the entity. • The purpose of this presentation is therefore to report on progress made to date since the commitments were made to the Committee.

4. Progress: Intervention and turnaround • Setting up of a Turn-Around Task Team involving DAC, sister institutions that have good record of performance in identified areas. Progress to date: • The team was duly set up with DAC. They played a pivotal role in assisting with the drafting of the ENE for 2012/13 , the filling of the CFO Post and the drafting of the Terms of Reference for the appointment of a team of Accounting Professionals to assist with the turnaround the financial management of the SAHRA. • Appointment of Staff in all key vacancies Progress to date: • Acting Chief Executive Officer and Head of Turnaround strategy – Ms Mmabatho Ramagoshi • Corporate Affairs Executive – Ms Mamakomareng Nkhasi • Company Secretary – Ms Lungisa Malgas • IT Technician – Mr Luvo Mbaru • Chief Finance Officer – Ms Cathy Motsisi • Heritage Officer, Objects – Ms Lynn Abrahams • Heritage Officer, Built Environment – Ms Shaneegh Bruce • Heritage Officer, APM – Ms Jenna Lavin

5. Progress: Intervention and turnaround • Development of a comprehensive Audit Plan working closely with the AG. Progress: • The audit was developed and presented to the Council and Auditor General. • Progress on clearing the audit findings was presented to the Audit Committee and AG. • We continue to monitor the action plan internally during the executive meetings • Appointment of the implementation teams and critical support people Progress: • The following bids were advertised for the appointing of experts to assist the entity: • Financial Capacity to implement sound financial management • Organizational Design specialists • Property Management strategy • Forensic Audit • The appointment process is almost at the finalization stages. We are envisaging to have the teams on board before the end of March.

6. Progress: Intervention and turnaround • Performance Management Progress • We have acquired a performance management system which is a module to current VIP system used HR and Payroll management. • The current excel spreadsheet will be used for performance management while the system is being tested for effective transition. • There is a concerted effort to compile and sign off the 2012/13 performance agreements for all staff. The process started in February and will be completed before end March. • Governance and culture change Progress • During February a team building session was undertaken by all employees and management of SAHRA. This initiative was a build up towards the culture change processes that will be taking place to turnaround the entity. The sessions created a platform for constructive criticism with staff on issues that negatively affected performance. • We are in the currently implementing some of the recommendations from the sessions. • The OD project that will commence end of March will further enable the organization to have a structure that is aligned to the strategy and mandate of the SAHRA.

7. Progress: Intervention and turnaround • Supply Chain Management Progress • The policy for Supply Chain has been approved and work shopped with all staff • We have appointed contract workers to assist while the OD process is unfolding. The team will be further strengthened by employing interns. • We are now analysing the previous years transaction to identify irregular and fruitless expenditure incurred in previous years. • Budget and Expenditure Management Progress • The monthly financial performance is presented to EXCO monthly • The ENE was approved by the Council and submitted to DAC • We are currently analysing the Projects budget to make informed decisions on decommissioning some of the bank accounts. • We are also investigating improved investment options in order to maximise on returns on investments.

8. Audit Findings Action Plan

9. Audit Findings Action Plan cont.

10. Audit Findings Action Plan cont.

11. Audit Findings Action Plan cont.

12. Audit Findings Action Plan cont.

13. Audit Findings Action Plan cont.

14. Audit Findings Action Plan cont.

15. Audit Findings Action Plan cont.

16. Audit Findings Action Plan: Movable Assets

17. Audit Findings Action Plan: Movable Assets

18. Audit Findings Action Plan: Movable Assets

19. Audit Findings Action Plan: Supply Chain Management

20. Audit Findings Action Plan: Supply Chain Management

21. Audit Findings Action Plan: Supply Chain Management

22. Audit Findings Action Plan: Supply Chain Management

23. CURRENT STATUS OF THE ASSESSMENT OF PHRAs Following the approval of the Assessment Policy by the SAHRA Council in March 2011, the following PHRAs were re-assessed. EASTERN CAPE • The ECPHRA was re-assessed in August 2011 and found competent to perform some functions. Those functions which they were not competent SAHRA has signed an urgency arrangement to perform these functions on their behalf. NORTHERN CAPE • The PHRA was re-assessed on the July 2012 and found competent to perform some functions and SAHRA will perform some functions on their behalf. Those functions which they were not competent SAHRA has signed an urgency arrangement to perform these functions on their behalf. Free StateThe PHRA was re-assessed on the July 2012 and found competent to perform some functions. Those functions which they were not competent SAHRA has signed an urgency arrangement with to perform these functions on their behalf. North WestThe provincial representative who served in the SAHRA Council resigned and there is no provincial representation. The province has asked for nominations to serve in the PHRA Council.

24. CURRENT STATUS OF THE ASSESSMENT OF PHRAs • Limpopo A PHRA was established but no representation in SAHRA Council as required by the National Heritage Resources Act of 1999. The PHRA has completed a re-assessment application March 2013 and would not assume any function therefore SAHRA will perform these on agency basis. • MpumalangaThe Department of Sports, Recreation, Arts and Culture seconded staff to PHRA. Present term of Council has been extended. • GautengCouncil appointed and sent an application for re-assessment March 2013 and will take over functions except highly specialised areas like archaeology, palaeontology and meteorites. • Western CapeThe HWC (PHRA) was re-assessed in October 2011 and authenticated competent to perform all functions except Section 36 Burial Grounds and graves. • KZN Competent and capacitated PHRA. SAHRA re-assessed Amafa June 2012 and found them competent but no representation in the SAHRA Council It is important that respective MEC’s be urged to establish PHRAs and provide at least minimum resources for their operations.

25. Summary & conclusion • There is a concerted effort from the Council and Executives to reverse the dysfunctional state of SAHRA and aim for an unqualified audit and ultimately clean audit. SAHRA is working closely with the AG and DAC in resolving these challenges. • The SAHRA historical structural and resource weaknesses will finally be addressed through the comprehensive organizational design project which is soon to start. • SAHRA at this juncture has the best possible chance of turning-around and rising to the challenge of fulfilling its nationally significant mandate of promoting, preserving and protecting our national heritage estate.

26. I Thank You!