An agency of the Department of Arts and Culture ANNUAL REPORT 2014/15 PRESENTATION TO THE...

an agency of the Department of Arts and Culture

ANNUAL REPORT 2014/15PRESENTATION TO THE PARLIAMENTARY

PORTFOLIO COMMITTEE ON ARTS AND CULTURE

Vital Statistics


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• Revenue Budget R89,647,856 • Self-generated Revenue R24,556,278 • OPEX Grant Funding R45,040,009 • CAPEX Grant Funding R20,051,569 • Total Employees 98• Total Performance Venues 6• Total Performances 727• Total Audience Attendance 134,664

Chairperson’s Report


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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 to134,664 in 2014/15

Chairperson’s Report, continued


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FINANCIAL PERFORMANCE•2014/15 financial year, SAST received operational grants of R45.040 million, capex grants of R20.051 million and self-generated revenue of R24,556 million.•A surplus of R20.240 million was realised in the 2014/15 financial year. This was as a result of SAST receiving a capex grant of R20.051 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 non-compliance 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.

Acting CEO’s Report


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• 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 IndieSpotlight 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.

Acting CEO’s Report, continued


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• 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.

Production Statistics


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Category Productions PerformancesInternal Productions 88 540External Productions 49 187

Total 137 727

Category Productions Performances

Artistic 10 152

IndieSpotlight 26 199

Rendezvouz 12 85

Set-works 4 39

Festival 36 65

TOTALS 88 540

Production Statistics, continued


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Genre Total

Ballet 6

Children's Theatre 2

Classic & Orchestra 1

Comedy 8

Competitions 4

Dance 11

Drama 49

Drama (School Set-work) 4

Fashion & Shows 2

Festivals 3

Gospel 6

Gospel Music Awards 1

Music 16

Music - African Drumming 1

Music - Dj & Hip Hop band 1

Music - J azz & African 2

Music - R&B & Soul 2

Musical 10

Opera 3

Poetry 1

Seminars & Workshops 2

Variety show 2

Summary of Performance


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GoalNumber of

IndicatorsAchieved

Partially

Achieved

Not

Achieved

Overall

Performance

*

Goal 1: Stage In-house Performing Arts productions 2 2 0 0 100%

Goal 2: Prov ide development opportunities for emerging Arts Practitioners in the context of our programmes 6 6 0 0 100%

Goal 3: Generate revenue from commercial activ ities which includes Ticket Sales, Rentals, Fundraising and Front of House Sales 6 1 5 0 17%

Goal 4: Ensure long term sustainability of Buildings and Assets 3 3 0 0 100%

Goal 5: Develop Theatre going Audiences 5 2 2 1 40%

Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation 4 4 0 0 100%

26 18 7 1 76%

* Total overall performance is calculated using the weighted average method. 69% 27% 4%

Programmes


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Programme 1: AdministrationPurpose 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 SalesGoal 4: Ensure long term sustainability of Buildings and AssetsGoal 6: Ensure compliance with applicable Laws, Regulations and Statutory

Legislation

Programmes, continued


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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 productionsGoal 5: Develop Theatre going AudiencesGoal 6: Ensure compliance with applicable Laws, Regulations and Statutory

Legislation

Programmes, continued


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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

Organisational Structure


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Employment Equity Programme


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Levels

Current Target Current Target Current Target Current Target

Top Management 1 0 0 0 1 0 1 0

Senior Management 0 0 0 0 0 0 0 0

Professional qualified 5 0 0 0 1 0 3 0

Skilled 35 0 4 0 0 0 11 0

Semi-skilled 11 0 6 0 0 0 0 0

Unskilled 19 0 0 0 0 0 0 0

TOTAL 71 0 10 0 2 0 15 0

TOTAL

African Coloured Indian White

Audit Outcomes


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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

Audit Action Plan to resolve qualification


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• 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

Financial information


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• Statement of Financial Performance

Description2015 'R000

2014 'R000 Variance

Income

Self generated income 23 618 22 684 934 Sponsorships 2 249 720 1 529

Grants (includes capex) 65 091 52 236 12 855

Total Income 90 958 75 640 15 318 Total expenditure (81 227) (83 367) 2 140

Fair value adjustment 10 509 - 10 509 Surplus/deficit for the year 20 240 (7 727) 27 967

Financial information (continued)


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• Statement of Financial Performance

• Comparison of Actual vs Budget

Description2015 'R000

2014 'R000

Variance‘R000

Total Assets 178 143 157 422 20 721

Total Liabilities 11 067 10 587 480 Net Assets 167 076 146 835 20 241

DescriptionActual‘R000

Budget‘R000

Variance‘R000

Total Income 89 648 90 959 -1 311 Total Expense -69 590 -81 227 11 637

Surplus 20 058 9 732 10 326

Key Focus Areas


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• 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 ANNUAL REPORT 2014/15 PRESENTATION TO THE...

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