national library of south africa, cape town campus · 2017-03-15 · national library of south...

National Library of South Africa, Cape Town campus

National Library of South Africa | Annual Report 2015/2016 Advancing Access to Information

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CONTENTSPART A: GENERAL INFORMATION 1. PUBLIC ENTITY’S GENERAL INFORMATION 52. LIST OF ABBREVIATIONS 63. FOREWORD BY THE CHAIRPERSON 74. OVERVIEW BY THE CHIEF EXECUTIVE OFFICER 95. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY OF THE ANNUAL REPORT 126. STRATEGIC OVERVIEW 13

6.1. Vision 13

6.2. Mission 13

6.3. Values 13

7. LEGISLATIVE AND OTHER MANDATES 14

PART B: PERFORMANCE INFORMATION 1. PERFORMANCE INFORMATION: PREDETERMINED OBJECTIVES 17

2. SITUATIONAL ANALYSIS 172.1. Performance environment 17

2.2. Organisational environment 18

2.3. Description of the NLSA’s strategic planning process 19

2.4. Strategic outcome oriented goals of the NLSA 19

NATIONAL LIBRARY OF SOUTH AFRICA PERFORMANCE REPORT 2015/2016 21 PROGRAMME 1: ADMINISTRATION 21

• OfficeoftheNationalLibrarianandCEO 21

• FinanceandSupplyChainManagement 21

• HumanResourceManagement 21

• CorporateandInternationalRelations 21

• InformationandCommunicationsTechnology(ICT) 22

PROGRAMME 2: BUSINESS DEVELOPMENT 23

• BibliographicServicesandCollectionManagement 23

• PreservationAccessServices 25

PROGRAMME 3: PUBLIC ENGAGEMENT 27

• InformationAccessServices 27

3. PERFORMANCE INFORMATION BY SUB-PROGRAMME 31PROGRAMME 1: ADMINISTRATION

3.1 OfficeoftheNationalLibrarianandCEO 31

3.2 FinanceandSupplyChainManagement 32

National Library of South Africa | Annual Report 2015/2016Advancing Access to Information

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3.3 HumanResources 34

3.4 CorporateandInternationalRelations 35

3.5 InformationandCommunicationTechnology 36

PROGRAMME 2: BUSINESS DEVELOPMENT

3.6 Bibliographic Services and Collections Management 37

3.7 Preservation Services 38

PROGRAMME 3: PUBLIC ENGAGEMENT

3.8 Information Access Services 39

3.9 Centre for the Book 40

PART C: GOVERNANCE 1. INTRODUCTION 43 2. EXECUTIVE AUTHORITY 433. THE ACCOUNTING AUTHORITY / BOARD 444. RISK MANAGEMENT 475. INTERNAL AUDIT AND AUDIT COMMITTEE 476. COMPLIANCE WITH LAWS AND REGULATIONS 497. FRAUD AND CORRUPTION 498. MINIMISING CONFLICT OF INTEREST 499. CODE OF CONDUCT 4910. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 4911. SOCIAL RESPONSIBILITY 4912. AUDIT COMMITTEE REPORT 51

PART D: HUMAN RESOURCE MANAGEMENT 1. INTRODUCTION 552. HUMAN RESOURCE OVERSIGHT STATISTICS 55

PART E: FINANCIAL INFORMATION 1. REPORT OF THE EXTERNAL AUDITOR 62 - 662. ANNUAL FINANCIAL STATEMENTS 67 - 108

PART A: GENERAL INFORMATION

Mzansi Libraries On-Line Project, Pretoria

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REGISTERED NAME: National Library of South Africa

PHYSICAL ADDRESS: 228 Johannes Ramokhoase Street Pretoria 0001

POSTAL ADDRESS: Private Bag X990 Pretoria 0001

TELEPHONE NUMBER/S: +27 12 401 9700

FAX NUMBER: +27 12 326 7642

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.nlsa.ac.za

EXTERNAL AUDITORS: Auditor General of South Africa

BANKERS: Standard Bank and Absa Bank

BOARD SECRETARY Ms. Musa Sekese

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GENERAL INFORMATION


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AACR 2 Anglo-American Cataloguing RulesAfLIA African Library and Information Associations and InstitutionsAGSA Auditor General of South AfricaAPP Annual Performance PlanBIBSSA Bibliographic Standards in South AfricaCANL Conference of African National LibrariesCDNL Conference of Directors of National LibrariesCEO ChiefExecutiveOfficerCFB Centre for the BookCFO ChiefFinancialOfficerCIO ChiefInformationOfficerCHELSA CommitteeforHigherEducationLibrariansofSouthAfricaDAC Department of Arts and CultureDDC DeweyDecimalClassificationENE Estimates of National ExpenditureICT Information and Communications TechnologyIFLAI InternationalFederationofLibraryAssociationsandInstitutionsIFLA WLIC InternationalFederationofLibraryAssociationsandInstitutions World Library and Information Congress IFM InterlendingFeeManagementILL Inter Library LoansISAP Index to South African PeriodicalsISBN International Standard Book NumberISN International Standard NumberISSN International Standard Serial NumberLCSH LibraryofCongressSubjectHeadingsLIASA Library and Information Association of South AfricaLIS Library and Information ServicesMARC 21 Machine-Readable CataloguingMoU Memorandum of UnderstandingMTEF MediumTermExpenditureFrameworkNCLIS National Council for Library and Information ServicesNLSA National Library of South AfricaOCLC On-line Computer Library CentreOPD OfficialPublicationsDepositoryPFMA PublicFinanceManagementActNo.1of1999RDA Resource Description and AccessSABINET South African Bibliographic and Information NetworkSADC Southern African Development CommunitySAIS Southern African Inter-lending SchemeSALW South African Library WeekSCANUL-ECS Standing Conference of African National and University Librarians in Eastern, Central and Southern AfricaSCECSAL Standing Conference of Eastern, Central and Southern Africa Library and Information Associations.SCM Supply Chain ManagementSETA Sector Education and Training AuthorityTR Treasury RegulationsUNESCO UnitedNationsEducational,ScientificandCulturalOrganizationVOIP Voice-Over Internet Protocol

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ABBREVIATIONS


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FOREWORD BY THE CHAIRPERSON OF THE BOARD

INTRODUCTION

I have great pleasure in presenting the report of the Board of the National Library of South Africa for the year 2015/2016.

The term of office of the current Board of the National Library of South Africa (NLSA) commenced on 1 October 2015. The Board went through an induction process in order to ensure that the members are familiar with the business of the NLSA, so that they can effectively perform their oversight roles and responsibilities. I am looking forward to continued leadership, direction and support of the Board in ensuring that the NLSA achieves its vision and fulfils its legislative mandate. The Board committees meet regularly to ensure efficient and effective governance of the NLSA. The Board notes with appreciation the appointment of the Executive Management and the Chief Financial Officer (CFO) during the current financial year. This will ensure that the entity functions optimally in achieving the targets identified in the Annual Performance Plan.

HIGH LEVEL OVERVIEW OF THE NATIONAL LIBRARy OF SOUTH AFRICA’S STRATEGy AND PERFORMANCE IN ITS RESPECTIVE SECTOR

The NLSA, as an agent of the Department of ArtsandCulture (DAC)andmandatedby theNLSA Act, continues to serve as a catalyst in the Library and Information Services (LIS)Sector both nationally and internationally.

The Board has noted with appreciation the significant achievements and challengesduring the period under review. We take note of the NLSA’s participation and high level engagements including the following:

• ActiveparticipationduringLibraryMonthincluding the highly successful Launch of the Mzansi Libraries On-Line Country Grant. This project positions public libraries as strategic partners in contributing to the achievement of goals outlined in the National Development Plan. Central to this project is the provision of free access to relevant information and technology to communities that are in need.

STRATEGIC PARTNERSHIPS

We recognise the role of the NLSA in building strategic partnerships, promoting libraries and information services, and nurturing these relationships nationally and internationally.

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The Board commends the NLSA for working closely with the Department of Arts and Culture on the Public and Community Libraries’ Conditional Grant. The NLSA renders professional service to the Department of Arts and Culture in terms of Information and CommunicationTechnology(ICT)connectivity;preservation training to safeguard the library collections;reprintofAfricanLiteratureClassics;and inter-language translation that is intended to promote reading in indigenous languages. The Annual Funda Mzansi Reading Festivalheld in collaboration with the Department of Correctional Services contributes significantlyto the enhancement of a reading culture in South African communities, and reaches more thanfivethousandparticipantsannually.

We highly appreciate the relationship that the NLSA has established with the Bill and Melinda Gates Foundation (The Mzansi Libraries On-LineProject) for strengtheningandenhancingpublic libraries in South Africa. We heartily embrace the Country Grant of R120 Million that will provide access to ICT connectivity to 667 libraries countrywide.

CHALLENGES FACED By THE BOARD

Under-funding still remains the greatest challenge which prevents the NLSA from carrying out its functions as prescribed by the National Library of South Africa Act, Act No. 92 of 1998. The ICT infrastructure is obsolete, not in accordance with the advancement of global technological changes and there is no provision in the capital budget for upgrades.

The lack of funding prevents the NLSA from functioning on par with other national libraries of the world in terms of resources, namely: ICT infrastructure, staffing and services. But theNLSA is trying by all means to operate on a shoe string budget.

Although an exemption was granted with regards to the heritage assets, the entity was unable to meet the requirements of GRAP 103. Asa result theentityhas receivedaqualifiedaudit opinion.

THE yEAR AHEAD

The NLSA will continue to support the DAC with the Conditional Grant Projects in order to enhance the social cohesion and nation-building mandate of the DAC. We plan to develop a scholarly culture at the NLSA. The Bulletin of the NLSA is a publication that is accredited by the DepartmentofHigherEducationandTraining.The Bulletin provides a platform for scholarly communication and provides an opportunity to publish in a scholarly publication with all the accompanyingbenefits.

APPRECIATION

I wish to thank the Minister of Arts and Culture, Mr Nathi Mthethwa; Deputy Minister, MsRejoiceMabudafhasi;ActingDirector-General,MrVusiNdimaandstaffof theDepartmentofArts and Culture for their unwavering support to theNLSAasastrategicandsignificantentity,in realisation of the mandate of the Department of Arts and Culture to achieve social cohesion and nation-building as outlined in the National Development Plan 2030.

I also wish to express my sincere gratitude and appreciation to the NLSA partners in the Libraryand InformationServices (LIS)Sector,stakeholders and library clients nationwide. The NLSA has availed its services internationally by providing service to researchers across the globe. Our special collections held in the Cape Town campus are increasingly used by researchers from all parts of the world, thereby enhancing the NLSA’s role in contributing to scholarly pursuits.

To the rest of the Board members, I trust we will deliver our mandate of steering this great institution to greater heights. To the Chief Executive Officer/National Librarian,management and staff, thank you for yourcommitment and hard work. Together we will ensure that the NLSA becomes the leading national library and centre of excellence in Africa and the World.

___________________________Mr Themba Thomas Cyril Dlamini Chairperson of the Board


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OVERVIEW BY THE CHIEF EXECUTIVE OFFICER

It is with gratitude and pleasure that I present the Annual Report of the National Library of South Africa (NLSA) for the 2015/16 Financial Year (FY).

During this period the NLSA has, in accordance with the National Library of South Africa Act No. 92 of 1998 successfully performed its functions, namely to; build our documentary heritage material, promote optimal access to its collections, render national bibliographic services, act as a national preservation library, provides reference and information services nationally and internationally, promote the culture of reading in South Africa as well as promote libraries in general.

In addition, the NLSA continued to play a leadership role in rendering professional services through special projects including the Conditional Grant to Public and Community Libraries as well as the Mzansi Libraries On-Line (MLO) Project.

GENERAL FINANCIAL REVIEW OF THE PUBLIC ENTITy

The NLSA continues to maintain effectivefinancial management controls and was ableto achieve its spending plans for the 2015/16financialperiodontheparliamentaryallocation.Theparliamentary allocation ofR75, 7Million

received from the Department of Arts and Culture was fully utilised to achieve the performance targets set in the NLSA’s Annual Performance Plan (APP) for 2015/16. Thefinancial performance was on par with thebudget for the same period.

The primary source of funding for the NLSA remains the parliamentary grant, at 91% of the total income earned, which excludes special projects income realised. The revenue growth compared to the prior year on this source of fundingwasat4,6%,whichisbelowtheinflationrate for the same period. Income from exchange transactionsincreasedby11%,whichinturnoff-set the expenditure shortfall of R2 Million from the parliamentary grant. Exchange revenue fromnon-financial transactions declinedwhencompared to the prior year by 26%, which is significant for the funding of the NLSA’soperating activities. The NLSA continues to contain actual spending within budget, and reportsagainthatforthefinancialyear2015/16,there was no budget overspend.

The DAC Conditional Grant for Community Libraries and the Bill & Melinda Gates Foundationgrant for theMzansiLibrariesOn-Line Project are very important as they serve to complement and supplement the parliamentary grant, thereby boosting the NLSA’s performance outcomes and enhancing national development objectives. The NLSA is proud to announce that the above mentioned funding for the projects was utilised for the purposes that it was intended for.

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The work on the internet connectivity project in the Eastern Cape is going ahead and I am pleased to report that the DAC’s continued support and commitment to the project was indicated by the R6 Million roll over, which was committed for the2016/17period.TheNLSAincollaborationwith Provincial Library Services and especially the Province of the Free State, launched theCountry Grant on the Mzansi Libraries On-Line Project during the reporting period. The launch included the opening of the new Bolokanang LibraryinPetrusburg,FreeStateprovince.It’san honour to report that the Deputy Minister of Arts and Culture, representatives from the Bill &MelindaGates Foundation, LocalMunicipalleadership, and the NLSA Board members and Executive management embraced the launch with their presence on the day. The NLSA remains committed to ensuring that the Country Grant received is utilised to advance the socio-economic needs of communities where libraries operate and to bridge the digital divide ina real sense.Asat theendof thefinancialyear, the NLSA received R64 Million from the Foundationasthefirsttrancheintheseriesofthree allocations.

SPENDING TRENDS OF THE PUBLIC ENTITy

The NLSA continued to contain its expenditure within budget. The operating expenditure in the Statement of Financial Performance is at95% in total when compared to actual totalrevenue realised. The total expenditure is composed of 48% personnel costs, 2% non-cashexpenditure,2%financecosts,and48%on goods and services. It should be noted that personnel costs are mainly funded from the parliamentary grants and constitute 72% of the total parliamentary allocation. The ability of the NLSA to efficiently utilise the cash resourcesavailablehasyieldedaninterestincomeofR5Million which contributed to the net surplus of R6 Million reported at year end.

CAPACITy CONSTRAINTS AND CHALLENGES FACING THE NLSA

Growth of the primary revenue sources of the NLSA is stagnant and this increases pressure to expand theNLSA’s serviceofferings to thepublic. The Parliamentary grant has increased ataratebelowinflation.TheabilityoftheNLSA

to increase its revenue from operating activities was further curtailed as a result of the shortage of skilled workers for editorial work, cataloguing and indexing. Revenue opportunities on de-acidification declined when compared to theprior year. The low level investment in capital assets that support the revenue sources has partly contributed to the decline in income from operating activities (Exchange revenue). Thepost-employment benefit obligation continuesto pose a challenge to the NLSA’ ability to service the continued growth of the liability. There is currently no plan assets for the medical benefitaccruingtoemployees’postretirement.TheNLSA’s financial positiondoesnot favouran investment in plann assets.

NEW OR PROPOSED ACTIVITIES

We are working to reposition the NLSA as an LIS skills development and training centre, with training programmes in RDA, preservation, digitisation,ande-publications(e-pubs).

REqUESTS FOR ROLL OVER OF FUNDS

The NLSA requested the National Treasury to roll over R6 Million which was committed on the Eastern Cape Internet connectivity project. The work is on-going and could not be completed at year end. The awarding of the contract tookplaceduring thefinancialperiod2014/15. The unutilised money is accountedas deferred income liability and will be realised inthestatementoffinancialperformanceonceexpenditure occurs.

SUPPLy CHAIN MANAGEMENT

There were no unsolicited bid proposals for the year under review. The NLSA has SCM processes and systems in place and we are surely expanding the size of the unit to meet procurement demands. Challenges that pertains to the timely process of purchase requisitions were experienced in the prior year to which management has responded by restructuring the work of the SCM unit and appointing additional personnel. Bid committees have been established. Where possible, the NLSA continues to participate in transversal contracts that are arranged by the National Treasury. Thismethodofprocurementremainsbeneficial


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to the NLSA and enables the organisation to comply with the contract and procurement regulations.

OUTLOOk/ PLANS FOR THE FUTURE TO ADDRESS FINANCIAL CHALLENGES

The newly appointed Board continues to identify sources whereon the NLSA may raise income to fund its operations and expand on its service delivery mandate. It is envisaged that a funding strategywillbecompletedinthefinancialperiod2016/17.

AUDIT REPORT MATTERS IN THE PREVIOUS yEAR AND HOW THEy ARE BEING ADDRESSED

Ireportthatasignificantnumberofauditfindingshave been attended to by the NLSA, chieflythose which were in the Audit Report for the 2014/15financialyear.Thesewereresolvedasatthetimeofreportingthe2015/2016financialperformance and non-financial performance.The implementation in full of GRAP 103 on all the heritage collections at the National Library remains a challenge. To place a reliable value on a significant part of the collections hasproven to be a challenge, however the NLSA is continuously engaged in findingmeaningfulsolutions to the challenge. The extent of the work requires special funding to ensure that the NLSA is able to comply with GRAP 103. Furthermore the solutions implemented willhave to shift the current business processes of accounting for Legal Deposit materials to a new methodology that enables the NLSA to continuously update and report on its heritage assets in accordance with GRAP 103.

EVENTS AFTER THE REPORTING DATE

On 8 June 2016, the NLSA received approval from the National Treasury to condone irregular expenditureworthR5.3Million. Theapprovalis considered a post balance sheet adjusting occurrence since the application was awaiting confirmation from Treasury as at the date ofreporting, 31 March 2016.

ECONOMIC VIABILITy

The NLSA is economically viable and it is expected that it will continue with its mandated business in the foreseeable future. The entity, in my opinion, is very much relevant as the custodian of the national literary heritage and the provider of universal information access to the country.

CONCLUSION: ACkNOWLEDGEMENT/S OR APPRECIATION

I wish to express my sincerest gratitude to the staffandmanagementteamoftheNLSAfortheircontributions and hard-work and to the Board for their leadership, support and commitment in exercising their accounting authority. Together we will ensure that NLSA continues to play a leadership role in the Library and Information Services(LIS)Sectorinthecountryandabroad,as prescribed by the National Library of South Africa Act, No. 92 of 1998.

A special word of appreciation and gratitude to the Portfolio Committee for Arts and Culture, The Ministry, Executives and all staff of theDepartment of Arts and Culture for their continued co-operation and support during the year under review.

____________________________Prof. MD Rocky Ralebipi-SimelaNationalLibrarianandChiefExecutiveOfficerNational Library of South Africa


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STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACy OF THE ANNUAL REPORTTo the best of our knowledge and belief, we confirm the following:

All information and amounts disclosed in the annual report are consistent with the annual financial statements audited by the AuditorGeneral.

The annual report is complete, accurate and is free from any material omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

TheAnnualFinancialStatements(PartE)havebeen prepared in accordance with the GRAP standards applicable to the public entity.

The accounting authority is responsible for the preparationof theannual financial statementsand for the judgements made in this information.

The accounting authority is responsible to establish and implement a system of internal controls which is designed to provide reasonable assurance on the integrity and reliability of the performance information, the human resources informationandtheannualfinancialstatements.

The external auditors were engaged to express anindependentopinionontheannualfinancialstatements.

Inouropinion, theannual report fairly reflectsthe operations, the performance information, the humanresourcesinformationandthefinancialaffairsofthepublicentityforthefinancialyearended 31 March 2016.

Yours faithfully

__________________________ Prof. MD Rocky Ralebipi-SimelaNational Librarian and CEO

__________________________Mr Themba Thomas Cyril Dlamini Chairperson of the Board


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STRATEGIC OVERVIEW 6.1. VISION

The National Library of South Africa is the leading National Library and information centre of excellence in Africa and the world.

6.2. MISSION

The National Library of South Africa as the primary resource and custodian of South Africa’s documentary heritage promotes creative, effective and efficient universalaccess to information.

6.3. VALUES

The NLSA espouses the following shared and unifying values:

• Accountability• Continuedimprovement• Creativity,InitiativeandInnovation• Enduringandsustainable

relationships• Equality• Ethics• Excellence• Integrity• Professionalism• Quality• Redress• Respect• Transparencyandopenness

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Executive Management


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OBjECTS (Section 3, NLSA of South Africa Act, No. 92 of 1998)

The objectives of the NLSA are to contribute to socio-economic, cultural, educational, scientificand innovative development by collecting, recording, preserving and making available the national documentary heritage and promoting an awareness and appreciation thereof, by fostering information literacy, and by facilitating access to the world’s information resources.

FUNCTIONS

Section4oftheNLSAActNo.92of1999setsoutthefunctionsoftheNLSA:Subsection(1)dealswithlibraryfunctionsandsubsection(2)dealswiththegenericfunctionsofanationalculturalinstitution.

(1) ThefunctionsoftheNLSAareto:(a) Buildupacompletecollectionofpublisheddocumentsemanatingfromandrelatingto

SouthAfrica;(b) Maintainandextendanyothercollectionsofpublishedandunpublisheddocumentswith

emphasisondocumentsemanatingfromorrelatingtoSouthernAfrica;(c) Promote optimal management of collections of published documents held in South

Africanlibrariesasanationalresource;(d) Supplement the national resource contemplated in subparagraph (i) with selected

documents;(e) Recordthedocumentscontemplatedinparagraph(a);(f) Renderanationalbibliographicserviceandtoactasthenationalbibliographicagency;(g) Promoteoptimalaccesstopublisheddocuments,nationallyandinternationally;(h) Providereferenceandinformationservices,nationallyandinternationally;(i) Actasthenationalpreservationlibraryandtoprovideconservationservicesonanational

basis;and(j) Promoteawarenessandappreciationofthenationalpublisheddocumentaryheritage;

and promote information awareness and information literacy.

(2) InordertoachieveitsobjectsandpromotethedevelopmentoflibraryandinformationservicesinSouthAfrica,theNLSAmust,inrelationtothefunctionsreferredtoinsubsection(1)-(a) Provideappropriateinformationproductsandservices;(b) Provideleadership,guidanceandadvicetoSouthAfricanlibrariesandinformationservices;(c) Undertakeplanningandco-ordinationinco-operationwithotherlibraryandinformation

services;(d) Present, inconsultationandco-operationwithappropriateeducational institutionsand

professional bodies, courses of training and education relating to the functions referred toinsubsection(1);

(e) Undertakeresearchanddevelopment;and(f) LiaisewithlibrariesandotherinstitutionsinandoutsideSouthAfrica.

LEGISLATIVE MANDATESTHE NLSA IS A SCHEDULE 3A PUBLIC ENTITY.

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PART B: PERFORMANCE INFORMATION

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PERFORMANCE INFORMATION: PREDETERMINED OBJECTIVES

1. AUDITOR’S REPORT: PREDETERMINED

OBJECTIVES

The Auditor General of South Africa (AGSA)currentlyperformsthenecessaryaudit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findingsbeing reported under the Predetermined Objectives heading in the Report on Other Legal and Regulatory Requirements section of the Auditor’s Report. The Auditor’s Report can be found in Part E of this report.

2. SITUATIONAL ANALYSIS2.1 PERFORMANCE ENVIRONMENT

2.1.1 Objectives of the NLSA (Section 3, National Library of South

Africa Act, No. 92 of 1998)

The objectives and functions of the NLSA are by statute and prescribed in the National Library of South Africa Act, Act No. 92 of 1998.

The NLSA is vested with a responsibility to contribute to socio-economic, cultural, educational, scientific, and innovativedevelopment by collecting, recording, preserving and making available the national documentary heritage and promoting an awareness and appreciation thereof, by fostering information literacy, and by facilitating access to the world’s information resources.

2.1.2 Functions of NLSA (Section 4, National Library of South

Africa Act, No. 92 of 1998)

The core business of the NLSA is to collect, record, preserve and make accessible all published and unpublished documents emanating from and relating to South Africa.

The mandatory functions of the NLSA are to:

• Buildupacompletecollectionofpublisheddocuments emanating from and relating toSouthAfrica;

• Maintainandextendanyothercollectionsof published and unpublished documents with emphasis on documents emanating fromorrelatingtoSouthernAfrica;

• Promote optimal management ofcollections of published documents held in South African libraries as a national resource;

• Supplement the national resource withother selected and relevant library materials;

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• Recordall thedocumentscollectedandmake these accessible nationally and internationally;

• Render a national bibliographic serviceand to act as the national bibliographic agency;

• Promote optimal access to publisheddocumentsnationallyandinternationally;

• Provide reference and informationservices,nationallyandinternationally;

• Act as the national preservation libraryand to provide conservation services on a nationalbasis;

• Promote awareness and appreciation oflibraries as information centres as well as encourage reading of the national published heritage materials in various formats;

The NLSA also has a critical role to play in the promotion of the development of library and information services in South Africa. In order to achieve its objectives and perform its functions, the NLSA must:

• Provideappropriateinformationproductsandservices;

• Provideleadership,guidanceandadviceto South African library and information services;

• Present,inconsultationwithotherlibraryand information services, any relevant issuesregardingthesector;

• Undertake planning and co-ordinationin co-operation with other library and informationservices;

• Undertakeresearchanddevelopmentforimprovement of library and information services;

• Establish and maintain beneficial part-nerships with local, national and in-ternational organisations including li-brary and information services for nationalaccesstoinformationworld-wide;

• Encourage local and international toursof the National Library of South Africa on both Campuses, including Centre for the Book and ensure training of new library and information professionals in partnership with universities by offeringa platform for experiential learning and internships;and

• Liaisewithlibrariesandotherinstitutionswithin and outside South Africa.

2.1.3 Operational Sites of the NLSA

The NLSA operates on three sites which complement each other. The main site is the Pretoria Campus which is the largest and functions also as the NLSA HeadOffice.TheCapeTownCampushousesthe special and rare heritage collections and functions as a research hub used daily by scholars, researchers and the general public. Both sites offer freeinternet access as well as a wealth of online information available world-wide. NLSA is visited by about 1 500 clientsdaily. The third site is the Centre for the Book which also functions as the NLSA outreach unit for the promotion of reading, writing and publishing in South Africa.

The activities of NLSA on the three sites contribute towards the achievement of the overall NLSA services as follows:

• Bibliographic Services and CollectionsManagement (International StandardNumberAgency)

• InformationAccessServices(Internation-al Official Publications, Map Collection,Legal Deposit, Document Supply, Special andRareCollections)

• Preservation andConservationServices(De-acidification,Digitisation)

• Centre for theBook (Promotionof read-ing,writingandpublishing)

2.2 ORGANISATIONAL ENVIRONMENT

The service delivery platforms of the NLSA are structured on the Core programmes, which are supported by the Administration programme. The Core programmes consist of four sub-programmes which are responsible to deliver on the core business of the NLSA as mandated by Section 4 of the NLSA Act. These sub-programmes are within the institution there are four areas delivering on the core business functions as stipulated in the National Library ofSouthAfricaAct,section4 (1). Insummarythese are:

• Bibliographic Services and CollectionsManagement which coordinates all activities connected with purchasing and


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collectingofpublishedinformation;renderanationalbibliographicservice;cataloguethe records and ensure adherence to international standards by promoting universal bibliographic control through the National Bibliographic Agency.

• Information Access Services whichpromotes optimal access to the collections of the NLSA nationally and internationally.

• Preservation Services which enablesthe NLSA to function as the national conservation and preservation library. TheDe-acidificationplantoftheNLSAisthefirstinAfricaandenablesthelibrarytotreat printed documents.

• Centre for theBookwhichpromotes theculture of reading, writing and publishing.

The service delivery platform further provides forfivecorporateservicestructuresasstrategicpartners to the core business functions. The support service departments are:

• OfficeoftheCEOwhichprovidesdynamicleadership to all core and support services and equally engages with the Board of the NLSA as well as relevant organisations nationally and internationally.

• Information and CommunicationTechnologies (ICT) which manages,supports and enhances the services and infrastructureoftheNLSAanditsaffiliatesin order to improve and promote access to resources through the provision of innovative technology.

• FinanceandSupplyChainManagementwhich ensures sound financialmanagement, full compliance with relevantlegislationand/orregulationsandsound budgeting to enable the institution to deliver on its mandate.

• Human Resources which is set out torecruit and retain the services of suitably qualified individuals who will add valueandlivethesharedandunifiedvaluesofthe NLSA.

• Corporate and International Relationswhich ensures that the NLSA achieves visibility and impact by creating awareness of the services and products of the NLSA whilst building collaborations on both national and the international fronts.

ChallengesTheNLSAfinds itdifficult to fulfill itsmandatedue to inadequate funding by DAC. Presently the NLSA is maintaining the status quo in an environment that is dynamic and technologically driven. 2.3 OVERVIEW OF THE NLSA’S

STRATEGIC PLANNING PROCESS

The strategic planning process within the NLSA takes place in a structured and consultative manner in accordance with the time lines prescribedbythePublicFinanceManagementAct.

2.4 STRATEGIC OUTCOME ORIENTATED GOALS OF THE NLSA

The NLSA, consistent with the selection of the DAC,contributes tofivebut supportall of theNationaloutcomesidentifiedandagreedtobyCabinet.

Outcome 1: Improved quality of basic education – NLSA provides information to support teaching, learning and research through its library and information services and products.

Outcome 4: Decent employment through inclusive economic growth – NLSA is an employer and thus contributes to providing decent employment to individuals as well as companies providing different servicesoutsourced to them.

Outcome 5: A skilled and capable workforce to support inclusive growth path – NLSA employs over 200 employees who are continuously trained in order to ensure that they are a skilled and capable workforce that will contribute to an efficient and effective national library that willensure an enpowered South Africa.

Outcome 7: Vibrant, equitable and sustainable rural communities – NLSA through its Centre for the Book reaches out to rural communities to assist with establishing book clubs, donating books and promoting a culture of reading and writing.


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Outcome 12b: An empowered, fair and inclusive citizenship – NLSA contributes to empowering the citizens through access to information offered through its library andinformation services. The free internet access offeredtothegeneralpublicassistsinbridgingthe digital divide.

The mandates of the NLSA are to contribute to socio-economic,cultural,educational,scientificand innovative development by collecting, recording, preserving and making available the national documentary heritage and promoting an awareness and appreciation thereof, by fostering information literacy, and by facilitating access to the world’s information resources.

The NLSA has accordingly set itself the following strategic goals to enable it to fulfill its mandate.

Strategic Outcome Oriented Goal 1 Collaborate and cooperate with other libraries and organisations.

Goal statement Play a leading role in LIS.Strategic Outcome Oriented Goal 2

Build a complete collection of published and unpublished documents emanating from or relating to South Africa and rendering bibliographic services.

Goal statement Collect, record, preserve and promote optimal access to the national documentary heritage, both nationally and internationally.

Strategic Outcome Oriented Goal 3

Facilitateoptimalaccesstopublisheddocumentsnationallyandinternationally.

Goal statement Promote access to information.Strategic Outcome Oriented Goal 4 Preservation of South African published heritage.

Goal statement Preserve and maintain the collections of the NLSA.Strategic Outcome Oriented Goal 5

Create awareness and appreciation of the documentary heritage of South Africa.

Goal statement Promote a culture of reading, writing and publishing in South Africa.Strategic Outcome Oriented Goal 6 Attractandretaintheservicesofsuitablyqualifiedindividuals.

Goal statement Provide service excellence to core and support functions.Strategic Outcome Oriented Goal 7 Promote NLSA as a custodian of the national documentary heritage.

Goal statement Ensure visibility of NLSA.Strategic Outcome Oriented Goal 8

Manage, support and enhance the Information and Communication Technology services and infrastructure of the National Library of South Africaanditsaffiliates.

Goal statement Information and Communication Technology is to drive the NLSA’s core and support functions technologically.

Strategic Outcome Oriented Goal 9

Ensuresoundfinancialmanagementandcompliancewithlegislationrequirements.

Goal statement Fullcompliancewithlegislativerequirements.


21

NATIONAL LIBRARY OF SOUTH AFRICA ANNUAL PERFORMANCE REPORT 2015/16The NLSA continued to function as a national resource and the custodian of South Africa’s literary heritage. As a national resource, the NLSA is well positioned to ensure that its rich historical and rare collections are accessible to all users, thus contributing towards building an informed nation.

The functions of the NLSA are to provide leadership, guidance and advice to South African Libraries and Information Services;to act as the national preservation library, render a national bibliographic service, provide reference and information services nationally and internationally and promote information awareness and information literacy.

The following Programmes of the NLSA are designated in terms of the National Library of South Africa Act, to facilitate performance on the objectives which contributes towards meeting the legislative mandate.

PROGRAMME 1: ADMINISTRATIONOFFICE OF THE NATIONAL LIBRARIAN AND CEORefer to performance information on page 31.

FINANCE AND SUPPLy CHAIN MANAGEMENTRefer to performance information on page 32. HUMAN RESOURCE MANAGEMENTRefer to performance information on page 33.

CORPORATE AND INTERNATIONAL RELATIONS

The NLSA occupies a strategic space in the Library and Information Services (LIS) Sectorboth nationally and internationally. In the quest to maintain its visibility and active stakeholder engagement, the NLSA participated in the following LIS and literary activities: South African Library Month; UNESCO World BookDay; The South African Book Fair; MandelaDay;Librarian’sDay;EskiaMphahleleAnnualMemorial Lecture; Jozi Book Fair; LIASAConference the country launch of the Global projects of Mzansi Libraries On-Line Project intheFreeState;IranianFilmFestivalandtheopening of the Charming Beijing Passionate Winter Olympics Photo Exhibition.

These events attracted media coverage and were well attended by NLSA stakeholders and the general public.

Corporate and International Relations, Pretoria


22

The NLSA participated actively in the InternationalFederationofLibraryAssociationsandInstitutions(IFLA)CongressinCapeTown,South Africa. Corporate and International Relations (CIR) formed part of the organisingteam for the Ministerial Session, Launch of Prof. SethManakaFestschriftandtheConferenceofDirectorsofNationalLibraries(CDNL). We have successfully developed and launched the State of Libraries in South Africa publication at the IFLA Conference and developed anddistributed marketing and promotional material that impacted greatly on the visibility of the NLSA.

In terms of stakeholder relations, the Department of Corporate and International Relations co-hosted several literary events with external partners namely: the South African Literary (SALA) Awards; The 4th International African Writers’ConferencewiththewRiteAssociates;aPoetrySlameventduringLibraryMonth;andLibrarian’s Day. The unit successfully organised marketing training for libraries in partnership with LIASA’s marketing and advocacy interest group. The marketing training attracted interest as the librarians are now able to utilise their learned skills to market libraries more effectively andefficiently,topromotetheutilisationoflibrariesas well as access information resources. This task will now remain with the Conditional Grant project management unit..

The NLSA participated in the African Libraries Association (AfLIA) and the African LibrarySummitthatwereheldinAccra,GhanainMay/June2015.

FundingwassecuredfortheNLSAdelegationcomprising of the CEO, Executive Director for Core Programmes and the Directors of Core Programmes to participate in the SA – UK Season. The delegation visited the British Library in the UK. The visit was also part of the implementation of the Memorandum of Understanding (MoU) between theNLSA andthe British Library.

One of the strategic goals of the NLSA is for ICT to drive the NLSA’s core business and support functions utilising technology.

INFORMATION AND COMMUNICATIONS TECHNOLOGy (ICT)

ICT has a significant role to play in enablingthe reduction in the cost of delivering business capability whilst minimising the impact on services. ICT is no longer just a support function, it is a critical service. It has the ability to transform the way services are organised and delivered. ICT has a fundamental role to play in improving operational efficiencies, reducingcosts and underpinning the organisational change programme. The NLSA’s new approach is to start from what we want to achieve as the organisation and not merely what systems we need to buy.

ICT achieved the following within a short space of time:

• Resources were secured to refresh theaged ICT infrastructure. This has allowed ICT to deliver on our mandate.

• Projects have been identified that willassist the NLSA to be more responsive to business reporting.

• ApprovaloftheICTorganogramallowedfor growth opportunities in the team and expansion across the different ICTdisciplines.

• The appointment of an IT Architect/Governance function will allow ICT to stay abreast of direction, trends and technology.

• Internally we are now able to focus onthe delivery models to the business and implement control measures that will increaseoperationalefficiencies.

Mostoftheprojectsidentifiedwereassignedtoan owner within the ICT team. These are some of the action items that contribute to ICT’s continuing success stories.


23

PROGRAMME 2: BUSINESS DEVELOPMENT

BIBLIOGRAPHIC SERVICES AND COLLECTIONS MANAGEMENT

The purpose of this Programme is to build a comprehensive collection of material published in, or about, South Africa and Southern Africa, and to provide quality bibliographic records, according to international standards, thereby ensuring equitable access to the documentary heritage of the country.

Bibliographic Services and Collections Management plays an important role in supporting the core activities of the NLSA. The Programme ensures that all resources published in South Africa and about South Africa are acquired and preserved. The Programme’s mandate, is to co-ordinate all activities connected with the purchasing and collection of published information; rendering a nationalbibliographic service; cataloguing thematerialand ensuring adherence to international standards by promoting universal bibliographic control through the national bibliographic agency.

Staffstayabreastofthechangingenvironmentby ensuring that they adhere to the international standards of cataloguing and that what is ordered adheres to the mandate as prescribed in the National Library of South Africa Act. No. 92 of 1998. By so doing, the Programme ensures that all other NLSA Core Programmes are able to access materials and resources added to the library’s systems with ease. The NLSA is one offivelegaldepositlibraries,derivingitsstatusfromtheLegalDepositActNo.54of1997,andthrough which it is mandated to “provide for the preservation of the national documentary heritage through legal deposit of published documents; to ensure the preservation andcataloguing of, and access to, published documents emanating from, or adapted for, South Africa”.

In achieving this mandate, and thereby serving the citizenry of South Africa, Bibliographic Services and Collections Management added 10 731 new monographs and 21 731 new

serial issues to its collections. To supplement the legal deposit collection, an additional 1 405 items, published abroad, relating toSouth Africa or written by South African authors, were purchased and added to the collection. To provide access to our collections both nationally and internationally, an additional 14 526 items were catalogued and added tothe NLSA OPAC and the SABINET Online and OCLC World Cat databases. Access to our collections is optimised via the maintenance of the South African name and series authority files.Thiswasachievedbyaddinganadditional3105personalnames,145corporatenames,329 series and 1 444 uniform titles to our local andLibraryofCongressauthorityfiles.

In terms of community engagement, the Pro-gramme addresses Sustainable Development Goal 4: Ensure inclusive and quality education for all and promote lifelong learning. The NLSA was engaged in the appointment of young con-tract workers in order to expose them to the library environment and to the duties and re-sponsibilities of being a Library and Information professional.

THE CORE FUNCTIONS OF THE NLSA THAT FORM PART OF THIS PROGRAMME ARE:

• to build up a complete collection ofpublished documents emanating from or relatingtoSouthAfrica;

• to maintain and extend any othercollections of published and unpublished documents, with the emphasis on documents emanating from or relating to southernAfrica;

• to promote the optimal management ofcollections of published documents held in South African libraries as a national resource;and

• to promote awareness and appreciationof the national published documentary heritage;

To be able to achieve the Programme’s purpose and functions, the components on the sub-programme’s – Acquisitions, Periodicals, South African National Bibliography (SANB),InternationalStandardNumbers (ISN)Agencyand Index toSouthAfricanPeriodicals (ISAP)ensure that collections purchased and received through legal deposit, are catalogued and preserved.


24

Components of the Sub-programmea. Acquisitions

Strategic objectivesTo extend and supplement the NLSA collections by purchasing material, thus contributing to building a more comprehensive collection of material published in, or relating to South and Southern Africa. Achievements• An additional 1 405 items were

purchased and added to the collection as a supplement to the Legal Deposit collection.

• Journal subscription funds have beencreated/addedonMillennium.

• TheNLSAhassubscribedto itsfirsttwoe-Journal Collections.

• Bothcampuseshaveaccessto29titles.• The Collection Development Committee

was established and the following policies were developed: Collection DevelopmentPolicy,GiftsandDonations;Weeding; Acquisitions and SpecialCollections.

b. ISN Agency

Strategic objectives The ISN Agency supplies International Standard Numbers (ISN) and codes for publisheddocuments in various physical formats – ISBN,ISSNandISMNIdentifiers–inordertoidentify any South African published document worldwide. Publishers may obtain ISNs for books or serials from the ISN Agency. The ISN Agency based at the Pretoria campus of the NLSA continues to assist both self-publishing authors and large commercial publishers via the allocation of ISBN, ISMN and facilitating the allocation of ISSN to all new publications.

Achievements South African commercial publisher information from the Directory of South African Publishers (DSAP) and self-publisher information fromISBN were successfully uploaded to the Global Register housed by the International ISBN Agency in London. With this upload the ISN Office ensures that all information regarding

South African commercial publishers and self-publishers are updated and available to be accessed internationally.

c. South African National Bibliography (SANB)

Strategic objectives• Buildacompletecollectionofdocuments

published in South Africa• Creationofbibliographicrecordsforlegal

deposit and acquired material• Facilitate awareness of relevant library

standards

Achievements• Atotalof14526itemswerecatalogued.• Atotalof10731newitemswerereceived

on legal deposit.• The backlog of authority control has

been addressed with only 211 records outstanding.

• Therehavebeenhuge improvements inthe depositing of resources to the NLSA by publishers.

• As the recipientofaDepartmentofArtsand Culture (DAC) conditional grantpromoting the implementation of Resource Description Access (RDA), The NLSAcontinues to offer training to librarians.Four workshops were conducted during2015/16 about RDA in different parts ofSouth Africa, with a total of 148 delegates attending.

d. Periodicals

Strategic objectiveTo build a complete collection of serial documents emanating from or relating to South Africa through legal deposit.

AchievementsA reasonable number of periodical issues were received.


25

e. Index to South African Periodicals (ISAP)

Achievements An additional 1996 indexed records covering articles in South African serial publications were added to ISAP online. These records are also made available nationally via Sabinet Online databases and internationally via the NISC databases.

Projects The following projects were conducted:• The Education Library and Information

Service(EDULIS)BookDonationProjectwas completed in our Cape Town Campus. Atotalof1453booksweretakenintotheNLSAcollections;

• Updateoftheloose-leafpublications;• CataloguingoftheSANBbacklog;and• Creating awareness of the importance

of compliance with the Legal Deposit Act, which is an ongoing process where training is offered to publishers bythe NLSA through the Legal Deposit Coordinator and the ISN Agency.

Donations Received The NLSA received book donations from the TelkomLibrarydonatingitscollectionof5497itemsandVanSchaikBookstoredonated315titles.

PRESERVATION SERVICES

The purpose of Preservation Services is to preserve and optimally maintain the NLSA’s collections with the aim of securing current and long-term survival and accessibility of the physical form and informational content of collections.

The task of Preservation Services is to ensure that the NLSA maintains and develops world class in-house preservation policies and practices, and a national preservation function capable of providing preservation and conservation services on a national basis. Preservation policy formulation includes preservation awareness, the physical environment, physical care of collections, guidelines for conservation, and disaster

planning and recovery. Preservation Services consists of three units that are represented at both the Pretoria and Cape Town campuses, namely: Conservation, Digitisation and Stack Management.

ConservationThe purpose of Conservation is the optimal conservation treatment of the library’s collections in line with NLSA preservation policies and procedures. Activities include book binding, book repairs, advanced book restoration,de-acidification treatmentofacidicmaterials, preparation for exhibitions, and disaster management.

De-acidificationThe significant part that acidity plays in thedeterioration of paper has long been recognised. Over time acid causes paper to become brittle, and in many cases leads to the loss of valuable collections. De-acidification is the processwhereby the acids in paper are neutralised thussignificantlyslowingdown theprocessofdestruction and prolonging the life of paper.

De-acidificationtreatmentisreservedforbooksthat are acidic and at a risk of loss if no action istaken.Thede-acidificationserviceisofferedto other libraries and cultural entities. The NLSA treated more then 10 000 items during the year of reporting.

DigitisationThe aim of Digitisation is the optimal reformatting of the NLSA’s collections in line with NLSA preservation policies and procedures and as required by users and clients of the NLSA. The digitisation service creates digital copies of materials for both preservation and access purposes. Activities include the scanning of South African historical newspapers and items from the NLSA’s special collections. Regular digitisation of historical newspapers continues.

The following titles were included: Elethu Mirror, Mmabatho News, Bula Ditaba-Tsa Lekoa, The Mirror, Ezethu, Bisho Times, Ezase Mlazi and Indian Opinion.

Services to library users included the scanning of pages from the Government Gazette of 1986 and1985(StateofEmergency)foranexhibitionheldbytheNelsonMandelaFoundation.Otherrequests included selected scanning from the


26

Preservation Services, Cape Town

Preservation Services, Pretoria


27

Irma Stern clippings albums and scanning of the SA Jewish Chronicle. The NLSA managed to source funding from the National Lotteries Commission to enhance the scanning of historical newspapers.

Stack ManagementThe purpose of Stack Management is the optimal management and maintenance of the library’s collections. Activities include climate control, heritage asset management, shelving of collections, preparation for binding of collections and monitoring access to the NLSA’s collections and stack rooms.

Approximately 8.3 km of periodicals, bound newspapers, press clippings, books and local andforeignofficialpublicationsweremovedtoanewimprovedstoragefacilityatMatrixHouse(CapeTowncampus).

Workshops and TrainingTheNLSAofferedtraining inpreservationanddisaster management for libraries to create awareness and share appropriate skills to enable library workers to preserve library and heritage collections in their care.

An extended agreement between the NLSA and theIFLAPreservationandConservation(PAC)Strategic Programme was signed for a period of threeyearson1August2015.

PROGRAMME 3: PUBLIC ENGAGEMENTINFORMATION ACCESS SERVICES

The primary role of the Information Access Services Programme is to facilitate access to the unique heritage knowledge resources and collections held in the National Library of South Africa. This programme is the public face of the NLSA, providing direct on-site service to users. The Reference and Reader Services

The Reference Section assisted many academic researchers, students, as well as the general public. Researchers requesting information were local as well as international. The Reader Services section, one of the busiest sections of the Information Access Services programme,

continued with high retrieval rates and copying services for the public.

The Information Access Services Survey

A survey was conducted to determine how satisfiedclientsareintermsoftheservicetheyreceivefromtheNLSA;todeterminetheextenttowhichthelibraryresourcesarebeingutilised;to make informed decisions when allocating resources to the public; and to measure andmonitor the library’s performance.

Survey outcomesClientsappeartobegenerallysatisfiedwiththeservices the NLSA provides. Users recognise the importance of the NLSA which is a very positive indication of how the NLSA delivers on it mandate in terms of the provision of access to information.

A total of 66.2% of the surveyed users indicated thattheydofindwhattheyarelookingforwhenat the NLSA. This is a good indication that the library is serving its purpose of satisfying the needs of the users. A total of 93.6% of respondents indicated that the NLSA is a quiet place, allowing them to focus on their research or studies.

The Special CollectionsThe Special Collections section of the Information Access Services Programme is one of the treasure-houses of the National Library. Since 1800, numerous donations and bequests have added value to the Legal Deposit collections. The invaluable Grey, Fairbridge,Bleek and Lloyd Collections, together with the picture, news-paper, map, manuscripts and many other collections, are sought after by local andinternationalresearchers,publishers,film-makers and writers.

Partnership with National and International Institutions

Exhibitions: 2015 – 2016Annotations of Loss and Abundance

TheIFLAWLICconferenceheldinCapeTownfrom15to21August2016wastheopportunemoment for the NLSA to showcase two of its most important heritage collections, namely


28

theWilhelm Heinrich Immanuel (WHI) Bleekand Lucy Lloyd collections. The WHI Bleekcollection was included in the UNESCO Memory of the World Register in 1997. This is a list of documentary heritage collections from around the world.

The WHI Bleek and L Lloyd collections arehoused at the National Library of South Africa (CapeTowncampus), IzikoMuseumsandtheUniversity of Cape Town.

Map ExhibitionThe International Map Collectors’ Society (IMCOS) hosted an international mapsymposium in Cape Town from 19 to 21 October 2015.ThesymposiumtookplaceattheCentrefor the Book, Cape Town.

The NLSA exhibited maps from its collection.

The Document Supply ServicesThe primary role of the Document Supply Section is to ensure equitable access to the knowledge and heritage resources held in the National Library of South Africa for all South African users as well as the Southern African Development Community region, the rest of Africa and abroad. As part of the Information Access Services, the Document Supply Section ensures remote access to the NLSA and other library collections through the Southern African Inter-Lending Scheme (SAIS). It is the mainlinkbetween586librariesthatagreestosharetheir information resources.

This resource sharing network connects local libraries to the national and international network

of lending libraries, and also serves as a portal for international users to access the NLSA’s and other libraries’ collections through the SouthernAfricanInter-LendingScheme(SAIS).The three major components of the programme are: the administration of the Southern African Inter-Lending Scheme (SAIS), National Inter-Lending, and International Inter-Lending

The Southern African Inter-Lending Scheme (SAIS) The NLSA is the co-ordinator of the resource sharing network known as the Southern African Inter-Lending Scheme, which provides a gateway to information in libraries and information centres about South Africa and the Southern African region.

The NLSA is also actively involved in the national LIASA Inter-Lending Interest Group (ILLIG), providing leadership and contributingto the development of a national code of best practice for inter-lending in South Africa.

National and International Inter-LendingThe inter-lending sections handles inter-library loan requests for material from the NLSA’s information resources, nationally and internationally. The number of national and international requests received for 2015-16were 1800.

Countries that were assisted with information needs included the United States of America, Denmark, Germany, Australia, New Zealand, United Kingdom, Canada, Switzerland, Belgium, Finland,andItaly.

Reading Room, Pretoria Campus

Information and Communications Technology, Pretoria

Information Access Services, Pretoria


31

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On assessing the NLSA’s achievement, it is clear that the programmes that are responsible for service delivery have spent their allocated budgets for the intended purposes. These include Business Development(Programme2)andPublicEngagement(Programme3).OutofabudgetofR82136million,thetwoprogrammesareresponsibleforroughlyhalfofthebudget(47%ofthetotalbudget).

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R’000Administration 41 772 43 164 (1392) 40335 40 284 51Business Development 21 600 21 431 169 19 048 18465 583

Public Engagement 18 764 17521 1 243 17 107 16 809 297

Total 82 136 82 116 20 76 489 75 489 931

Revenue collection The other income and investment revenue are approximately 9% of the total revenue for the NLSA (excludingconditionalgrants).Thestrategytoincreaserevenueisbasedondepositinggrantsintointerest bearing accounts and ensuring that the NLSA raises revenue through other activities. These have all born positive results since we have always exceeded our targets.

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R’000Other income 2 090 2 712 622 2 317 3656 837

Investment income 2530 5032 2502 1785 3 289 1 632

Total 4 620 7 744 3 124 4 102 6 945 2 469

CAPITAL INVESTMENT

ShelvingIn 2012, funding in amount of R6.9 million was received from DAC for shelving. The Cape Town Campus ran short of shelving space for its collections, which resulted in the NLSA having to rent spaceindifferentlocationsinordertopreserveitscollections.Sincethereceiptofthefunding,theNLSAhasengagedtheDepartmentofPublicWorks(DPW)andDACtofindacentralisedlocationtostorethecollections.Thisisinabidtoreducerentalcosts.InFebruary2015,DPWtogetherwithDACfinalisedanarrangementwiththenewlandlordforthestoragefacility.AtotalofR830109wasspentin2015/16forshelvesandthemovingofcollectionsfromoneofthelocationstothenewstoragefacility.Theprojectisexpectedtobefinalisedinthe2016/17financialperiod.

Newspaper Digitisation ProjectTheNationalLotteryCommissiongrantedNLSAR6.5millionforthenewspaperdigitisationproject.ThefirsttrancheofR3.9millionwasreceivedduringtheyear.Amajorportionofthereceivedfundswillbespentinthe2016/17financialyear.

Capital worksDAC granted NLSA R10.3 million during the year towards the capital works projects which includes the repair and maintenance of the Cape Town Campus and the refurbishment of the security control room and cameras. During the year R 806 330 was spent and more work is expected to take place in2016/217financialyear.


34

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y to

ols

to

supp

ort e

mpl

oyee

wel

lnes

s Bi

-Ann

ual p

rogr

ess

repo

rts o

n em

ploy

ee w

elln

ess

New

targ

et2

20

5. E

mpl

oym

ent R

elat

ions

Num

berofLabour/

man

agem

ent m

eetin

gs h

eld

44

40


35

3.4

CO

RPO

RATE

AN

D IN

TERN

ATIO

NAL

RELA

TIO

NS

CorporateandInternationalR

elations(C

IR)ensuresthattheNLS

Aisvisiblethroughprom

otionsandcreatingaw

arenessofitsproductsand

serv

ices

, whi

le b

uild

ing

and

mai

ntai

ning

par

tner

ship

s bo

th n

atio

nally

and

inte

rnat

iona

lly.

Stra

tegi

c O

bjec

tives

Perf

orm

ance

Indi

cato

rA

ctua

l A

chie

vem

ent

2014

/201

5

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

1. E

nhan

ce v

isib

ility

of

NLS

A na

tiona

lly a

nd

inte

rnat

iona

lly

Num

ber o

f exh

ibiti

ons

held

76

1812

Targ

et e

xcee

ded

due

to

mor

e op

portu

nitie

s th

at

aros

e an

d in

vita

tions

to

host

exh

ibiti

ons.

2. C

reat

e co

rpor

ate

imag

e of

the

NLS

AN

umbe

r of e

vent

s or

gani

sed

156

104

Targ

et e

xcee

ded

due

to m

ore

oppo

rtuni

ties

that

aro

se to

ens

ure

the

visi

bilit

y of

the

NLS

A.N

umbe

r of m

edia

arti

cles

pu

blis

hed

6560

8424

Targ

et e

xcee

ded

due

to

incr

ease

d m

edia

inte

rest

in

the

even

ts o

rgan

ised

.N

umbe

r of c

orpo

rate

pr

oduc

ts b

rand

edN

ew ta

rget

624

18Ta

rget

exc

eede

d du

e to

dem

and

for b

rand

ed

prod

ucts

and

pub

licat

ions

.


36

3.5

Info

rmaT

Ion

an

d C

om

mu

nIC

aTIo

n T

eCh

no

logy

(ICT

)

InformationandCom

municationTechnology(ICT)manage,supportandenhancetheICTservicesandinfrastructurewithintheNLS

A.

Stra

tegi

c O

bjec

tives

Perf

orm

ance

Indi

cato

r

Act

ual

Ach

ieve

-m

ent

2014

/201

5

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

-m

ent

2015

/201

6

Varia

nce

Com

men

t on

Varia

nce

1.

Alig

nmen

t of a

ll IC

T re

sour

ces

with

the

NLS

A bu

sine

ss s

trate

gy

obje

ctiv

es

Num

ber o

f IC

T Se

rvic

es A

s-se

ssm

ent R

epor

tsN

ew ta

rget

11

0

QuarterlymonitoringofIC

TSe

rvic

es p

erfo

rman

ceN

ew ta

rget

44

0

Quarterlyreportonservice

mai

nten

ance

New

targ

et4

40

Quarterlyreportonhardw

are

/softwarereplacem

entplan

New

targ

et4

40

QuarterlyServiceLevel

achi

evem

ent r

epor

tsN

ew ta

rget

44

0

2. E

nsur

e IC

T go

vern

ance

QualityICTreportssubmit-

ted

to IC

TS C

omm

ittee

New

targ

et4

40

3. E

nsur

e bu

sine

ss

continuity/toim

plem

ent

the

disa

ster

reco

very

pla

n

Num

ber o

f ful

ly m

irror

ed

reco

very

site

s m

aint

aine

d1

11

0


37

PROG

RAM

ME

2: B

USIN

ESS

DEVE

LOPM

ENT

3.6

BIBL

IOGR

APH

IC S

ERVI

CES

AND

CO

LLEC

TIO

NS

MAN

AGEM

ENT

Thepurposeofthisprogram

meistobuildacom

prehensivecollectionofmaterialpublishedinoraboutSouthAfricaandSouthernAfrica;andto

prov

ide

qual

ity b

iblio

grap

hic

reco

rds

that

mee

t int

erna

tiona

l sta

ndar

ds.

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

Act

ual

Ach

ieve

men

t 20

14/2

015

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

1. B

uild

a c

ompl

ete

colle

ctio

n of

do

cum

ents

pu

blis

hed

in S

outh

Af

rica

Num

ber o

f m

onog

raph

s re

ceiv

ed

on le

gal d

epos

it

8 02

810

000

10 7

3173

1

Targ

et e

xcee

ded.

Stri

ct c

ontro

l ove

r th

e is

suin

g of

ISBN

, con

tinua

l fol

low

up

with

pub

lishe

rs re

gard

ing

non-

depo

site

d ite

ms

and

the

prom

otio

n of

lega

l dep

osit

at li

brar

y re

late

d ev

ents

by

the

Lega

l D

epos

it C

o-or

dina

tor h

as re

sulte

d in

asignificantincreaseinthenumber

of it

ems

depo

site

d at

the

NLS

A in

the

four

th q

uarte

r.N

umbe

r of s

eria

l is

sues

rece

ived

on

lega

l dep

osit

21 7

1719500

21 2

661

766

Targ

et e

xcee

ded.

Stri

ct c

ontro

l ove

r th

e is

suin

g of

ISBN

, con

tinua

l fol

low

up

with

pub

lishe

rs re

gard

ing

non-

depo

site

d ite

ms

and

the

prom

otio

n of

lega

l dep

osit

at li

brar

y re

late

d ev

ents

by

the

Lega

l D

epos

it C

o-or

dina

tor h

as re

sulte

d in

asignificantincreaseinthenumber

of it

ems

depo

site

d at

the

NLS

A in

the

four

th q

uarte

r.2.

To

exte

nd a

nd

supp

lem

ent t

he

NLS

A co

llect

ions

by

pur

chas

ing

mat

eria

l

Com

mit

100%

of t

he

allo

cate

d ac

quis

ition

s bo

ok b

udge

t for

the

financialyear

100%

100%

94%

6%

Targ

et n

ot a

chie

ved

due

to o

rder

s th

at

werecancelledinQuater4astheywere

out o

f prin

t.


38

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

Act

ual

Ach

ieve

men

t 20

14/2

015

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

3. C

reat

ion

of

bibl

iogr

aphi

c re

cord

s fo

r leg

al

depo

sit a

nd

acqu

ired

mat

eria

l

Num

ber o

f ite

ms

cata

logu

ed21

934

10 0

0014526

4526

Targ

et e

xcee

ded.

To

faci

litat

e th

e workingoffoftheSA

NBbacklog,a

surv

ey w

as c

ondu

cted

to a

scer

tain

the

genr

e of

item

s co

ntai

ned

ther

ein.

4.Facilitate

awar

enes

s of

re

leva

nt li

brar

y st

anda

rds

Num

ber o

f tra

inin

g se

ssio

ns p

rovi

ded

44

40

3.7

PRE

SERV

ATIO

N S

ERVI

CES

The

purp

ose

of th

is p

rogr

amm

e is

to p

rese

rve

and

optim

ally

mai

ntai

n th

e N

LSA

colle

ctio

ns w

ith th

e pu

rpos

e of

sec

urin

g cu

rrent

and

long

-term

su

rviv

al a

nd a

cces

sibi

lity

of th

e ph

ysic

al fo

rm a

nd in

form

atio

nal c

onte

nt o

f col

lect

ion

item

s.

Stra

tegi

c O

bjec

tives

Perf

orm

ance

Indi

cato

rA

ctua

l A

chie

vem

ent

2014

/201

5

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

1. A

pply

ing

tech

niqu

es a

nd

met

hods

to p

rese

rve

libra

ry c

olle

ctio

ns

Num

ber o

f dam

aged

boo

ks

repaired/restored

1638

1 00

01

273

273

Targ

et e

xcee

ded.

Mor

e de

man

d ex

ists

for

prev

entiv

e pr

eser

vatio

n an

d co

nser

vatio

n tre

atm

ent

of c

olle

ctio

ns.

Num

berofpages/images

digi

tised

26457

23 0

0037

223

14 2

23

Targ

et e

xcee

ded.

A hi

gh d

eman

d fo

r di

gitis

atio

n w

as

expe

rienc

ed.

Num

berofitemsde-acidified

14645

10 0

0010275

275

Targ

et e

xcee

ded.

Mor

e ite

ms

wer

e re

ceiv

ed

forde-acidification.

Num

ber o

f vol

umes

bou

nd1593

1 30

01530

230

Targ

et e

xcee

ded.

Mor

e ite

ms

rece

ived

for

bind

ing.


39

Stra

tegi

c O

bjec

tives

Perf

orm

ance

Indi

cato

rA

ctua

l A

chie

vem

ent

2014

/201

5

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

2. P

rom

otin

g an

d de

velo

ping

pre

serv

atio

n sk

ills n

atio

nally

Num

berofw

orkshops/

train

ing

sess

ions

hel

d7

79

2Ta

rget

exc

eede

d. M

ore

dem

and

was

exp

erie

nced

fo

r pre

serv

atio

n tra

inin

g.

PROG

RAM

ME

3: P

UBLI

C EN

GAGE

MEN

T 3.

8 IN

FORM

ATIO

N A

CCES

S SE

RVIC

ES

Th

e pu

rpos

e of

this

pro

gram

me

is to

be

the

entry

poi

nt to

the

uniq

ue h

erita

ge, k

now

ledg

e re

sour

ces

and

colle

ctio

ns h

eld

in th

e N

LSA.

It p

rom

otes

ac

cess

to in

form

atio

n bo

th n

atio

nally

and

inte

rnat

iona

lly.

Stra

tegi

c O

bjec

tive

Perf

orm

ance

Indi

cato

rA

ctua

l A

chie

vem

ent

2014

/201

5

Plan

ned

Targ

et20

15/2

016

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

1. E

nsur

e op

timal

acc

ess

to

info

rmat

ion

by p

ublic

Num

ber o

f clie

nts

usin

g In

tern

et fa

cilit

ies

65117

56545

84 4

3327

888

Targ

et e

xcee

ded.

The

N

LSA

had

mor

e us

ers

mos

tly u

sing

inte

rnet

for

stud

y an

d w

ork

purp

oses

.N

umbe

r of c

lient

s vi

sitin

g th

e lib

rary

381925

265000

391655

126655

Targ

et e

xcee

ded.

The

N

LSA

had

mor

e us

ers

usin

g th

e lib

rary

for s

tudy

an

d w

ork

purp

oses

.2.

Mea

sure

men

t of c

lient

sa

tisfa

ctio

nAn

nual

use

r sat

isfa

ctio

n su

rvey

con

duct

ed1

11

0

3. P

rovi

sion

of i

nter

lend

ing

serv

ice

Num

ber o

f req

uest

s re

ceiv

ed

2120

1452

1800

348

Targ

et e

xcee

ded.

Mor

e lo

cal l

ibra

ries

requ

este

d in

form

atio

n fro

m N

LSA

Col

lect

ions

.N

umbe

r of t

rain

ing

circ

ular

s di

strib

uted

to li

brar

ies

44

40


40

3.9

CEN

TRE

FOR

THE

BOO

k

Th

e pu

rpos

e of

this

pro

gram

me

is to

pro

mot

e a

cultu

re o

f rea

ding

, writ

ing

and

publ

ishi

ng w

hile

als

o pr

omot

ing

acce

ssib

ility

of b

ooks

for a

ll.

Stra

tegi

c O

bjec

tives

Perf

orm

ance

Indi

cato

rA

ctua

l A

chie

vem

ent

2014

/201

5

Plan

ned

Targ

et

2015

/201

6

Act

ual

Ach

ieve

men

t20

15/2

016

Varia

nce

Com

men

t on

Varia

nce

1. P

rom

otio

n of

lite

racy

an

d th

e de

velo

pmen

t of

a cu

lture

of r

eadi

ng in

So

uth

Afric

a

Num

ber o

f eve

nts

orga

nise

d12

1212

0Ta

rget

ach

ieve

d

Num

ber o

f boo

ks d

onat

ed14153

10 0

0010

960

960

Targ

et e

xcee

ded

due

to m

ore

book

requ

ests

re

ceiv

ed.

Num

ber o

f pos

ters

prin

ted

2020

2 00

02

000

0N

umbe

r of b

ook

club

s es

tabl

ishe

d24

1519

4Ta

rget

exc

eede

d du

e to

in

crea

sed

dem

and.

2. P

rom

otio

n an

d de

velo

pmen

t of a

cul

ture

of

writ

ing

in S

outh

Afri

ca

Num

berofw

orkshops/

train

ing

sess

ions

hel

d22

1414

0

3. P

rom

otio

n an

d de

velo

pmen

t of a

cul

ture

of

pub

lishi

ng in

Sou

th

Afric

a

Num

ber o

f gra

nts

allo

cate

d14

1012

2Ta

rget

exc

eede

d du

e to

pu

blis

habl

e m

anus

crip

ts

rece

ived

.N

umbe

r of N

LSA

Bulle

tins

publ

ishe

dN

ew ta

rget

22

0Ta

rget

ach

ieve

d

PART C: GOVERNANCE

Board of Directors

Cape Town Campus


43

GOVERNANCE1. INTRODUCTION

Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, corporate governance with regard to public entities is applied through the precepts of the PublicFinanceManagementAct(PFMA)and run in tandem with the principles contained in the King’s Report on Corporate Governance. Parliament, the Executive and the Accounting Authority of the NLSA are responsible for corporate governance.

2. EXECUTIVE AUTHORITy

The NLSA submitted to the Executive Authority, the Minister of Arts and Culture, the strategic and annual performance planfor2016/2017,theannualreportandfinancialstatementsfor2014/2015withindeadlines.

Key submissions for the 2015/16 period and respective submission date

FinalQuarterlyReporttoDACfor2015/16financialyear 30 April 2016•Signed2014/15financialstatementsandmanagementreportstoNational

Treasury and Auditor-General of South Africa•ListofallbankingaccountstoNationalTreasury•AnnualPerformanceinformationreporttotheAGSAandNationalTreasury

31 May 2016

FirstQuarterlyReporttoDAC 31July2015Audit Report, Audited Financial Statements and the AFS consolidationtemplatefor2015/2016submittedtoNationalTreasury(reviewedbyAG) 31 July 2016

Firstdraftof theStrategicPlan2015/2020andAnnualPerformancePlan2016/17toDAC 30August2015

SecondQuarterlyReporttoDAC&AuditOutcomesImprovementsPlans 30October2015SeconddraftoftheStrategicPlan2015/2020andAnnualPerformancePlan2016/17toDAC 30November2015

FinalStrategicPlan2015/2020andAnnualPerformancePlan2016/17 toDAC 31 January 2016

ThirdQuarterlyPerformanceReporttoDAC&AuditOutcomesImprovementPlans 31 January 2016

FinalShareholdersCompacttoDAC 4 March 2016


44

Board of Directors

3. THE ACCOUNTING AUTHORITy/BOARD

3.1 Introduction

The Board of Directors of the NLSA is appointed by the Minister of Arts and Culture in terms of Section 6 of the National Library of South Africa Act No. 92 of 1998 (NLSAAct).Forthe2015/2016reportingperiod, the current Board was appointed effective01October2015asthetermofthe previous Board came to an end on 30 September 2015. The induction of theBoardwasheldon17November2015.

The Board is the accounting authority of theNLSAandmustfulfilcertaindutiesandresponsibilities provided for in the NLSA Act,thePublicFinanceManagementAct,ActNo.1of1999(thePFMA),TreasuryRegulations, other relevant prescripts, standards and good code of governance.

The functions of the Board are as follows (IntermsoftheNLSAAct):• Toformulatethepoliciesofthe

NLSA in consultation with the Minister;

• ToapprovethebudgetoftheNLSA;

• ToapprovethefinancialstatementsoftheNLSA;

• ToadvisetheMinisterwithregardto matters with which the NLSA is concerned;and

• TofurnishtheMinisterwithsuchinformation as the Minister may require.

3.2 The role of the Board

The primary role of the Board is to provide leadership and oversight. To discharge the responsibilities assigned by the NLSA Act, other relevant legislation and approved codes of good practice in governance. Board members of the NLSA are valued professionals with individual expertise and do not represent the interest of other entities.

3.3 Board Charter

The NLSA Board Charter is in accordance withtheNLSAActNo.92andthePFMAintandem with the principles contained in the King’s Report on Corporate Governance.

3.4 Members of the Board

The table below reports the membership of the Board during the reporting year ended 31 March 2016. The term of the previous Board expired in September 2015.ThecurrentBoardresumeditstermofserviceinOctober2015.


45

Name Date appointed QualificationsNo. of

Meetings attended

Status End of term

MsERTise(FormerChairperson)

1 October 2012 •BBibl.Hons 2 Terminated 30September2015

Mr M P R Coates 4 October 2013 •MIS 2 Terminated 30September2015Mr L A O Ebrahim Appointed for

second term 1 October 2012

•MPhil 1 Terminated 30September2015

Ms R Kalidass 1 October 2012. •CA(SA) 1 Terminated 30September2015Mr K D Madumo 1 October 2012 •B.Inf.Hons 2 Terminated 30September2015Dr W P Rowland 1 October 2012 •PhD 2 Terminated 30September2015Mr TTC Dlamini (CurrentChairperson)

01October2015 •MADevelopment Economics

2 Active 30 September 2018

Ms C Bertram 1October2015 •B.Bibl. 1 Active 30 September 2018Prof M Nassimbeni 1October2015 •PhD 2 Active 30 September 2018Ms M Nkomo 1October2015 •MCom.

•BCom.Hons•BCom.


Ms N Dick 1October2015 •CA(SA) 2 Active 30 September 2018Ms S Kunene 1October2015 •M.Bibl. 2 Active 30 September 2018ProfLTeffo Reappointed

1October2015•PhD 2 Active 30 September 2018

Dr D Selematsela Reappointed 1October2015

•D.Litt.etPhil


Mr J Morakile Reappointed 1October2015

•BLISHons 2 Active 30 September 2018

Dr B Mbambo-Thatha 1October2015 •PhD 2 Active 30 September 2018Prof MD Rocky Ralebipi-Simela

1 May 2014 •MLIS•PhD

2 Active Ex-oficioBoardMember, National

Librarian and CEO

3.5 Board Sub-Committees

The Board appointed the FinanceCommittee; Audit and Risk Committee;Human Resources and RemunerationCommittee; Information CommunicationTechnology and Strategy Committee;and the Research Knowledge and Management Committee.

Each committee discharges its responsibilities and duties in accordance with respective terms of reference.

The table hereunder depicts the membership of the Committees during the reporting year and the Committees of the previous and new Board.


46

CommitteeNo. of

meetings held

No. of members Name of members End of term

Audit Committee (Terminated)

4 4 1. Mrs MMD Nkomo (Chairperson)

2. Ms R Kalidass3. Mr N S Cronje4. Mr P M Nel

30September2015

Audit Committee (Current)

1 5 1.MrMDada(IndependentMemberandChairperson)

2. Ms S Makhathini (IndependentMember)

3.MrNicCronje(IndependentMember)

4.MsMNkomo(BoardMember)

5.MsNDick(BoardMember)

30 September 2018

FinanceCommittee(Terminated)

4 3 1. Mr Liaquat Ebrahim (Chairperson)

2. Dr William Rowland3. Mr Kepi Madumo

30September2015

FinanceCommittee(Current)

1 2 1. Ms Nonhlanhla Dick (Chairperson)

2. Ms Sanele Kunene

30 September 2018

HumanResourcesCommittee(Terminated)

3 3 1. Dr William Rowland (Chairperson)

2. Mr Jimmy Morakile3.ProfLesibaTeffo

30September2015

HumanResourcesCommittee (Current)

1 3 1.ProfLesibaTeffo(Chairperson)

2. Dr B Mbambo-Thata3. Mr J Morakile

30 September 2018

Research, Knowledge Management and Committee (Terminated)

2 3 1. Dr Daisy Selematsela (Chairperson)

2. Ms Ellen Tise3. Mr Peter Coates

30September2015

Research, Knowledge and Management Committee (Current)

1 3 1. Dr Daisy Selematsela (Chairperson)

2. Prof M Nassimbeni3. Dr B Mbabo-Thata

30 September 2018

Information and Communications Technology Strategic Committee (Terminated)

3 3 1.DrHappySithole(Chairperson)

2. Dr Daisy Selematsela3. Mr Jimmy Morakile

30September2015

Information and Communications Technology Strategic Committee (Current)

1 3 1.DrHappySithole(Chairperson)

2. Dr Daisy Selematsela3. Mr Jimmy Morakile

30 September 2018

FundraisingandMarketing Committee (Terminated)

1 4 1. Dr William Rowland (Chairperson)

2. Dr Daisy Selematsela3. Mr Jimmy Morakile4. Mr Peter Coates

30September2015


47

3.6 Remuneration of the Board Members

The NLSA Board members are remunerated at rates determined by the National Treasury in terms of service benefit packages for office-bearers.Employees of National, Provincial and Local Government or agencies and entities of government are not entitled to additional remuneration. The remuneration of Board members is showninNote28oftheAnnualFinancialStatements.

4. RISk MANAGEMENT

The NLSA has a risk management policy in place and Senior Management constitutes the Risk Management Committee. During the reporting period, the entity experienced capacity constraints and risk management was not conducted satisfactorily. The formulation of risk management plan and registers, were completed by management with the assistance of internal Audit. The Audit Committee provided oversight on risk management and risk is a standing item in both Management and Audit Committee Meetings.

5. INTERNAL AUDIT AND AUDIT

COMMITTEE

5.1 Audit Committee

The Audit Committee is independent and consists of three independent non-executive directors and two non-executive directors. The members of the Audit Committee are financially literateas dictated by the requirements of the Audit Committee Charter. The National Librarian and CEO, CFO, ExecutiveDirectors, External Auditors, Internal AuditorsandFinanceManagerattendthecommittee meetings by invitation only.

The key activities of the committee, whose activities assist the Board to discharge its responsibilities, including among others;the evaluation of the performance, independence and effectiveness of

external auditors; and the evaluation oftheperformanceoftheinternalaudit(IA)including the IA plans and charter. The Committee provides advisory service of the entity’s risks management processes including internal controls system to ensure effective compliance with allrelevant laws and regulations.

5.2 Membership and meeting attendance

The Audit Committee meets at least four times per annum, with the authority to convene additional meetings if required.

Attendance of meetings is listed on the next page.


48

Name

Audit Committee (Previous/current)

Qualifications Date appointedNo. of

Meetings attended

End of term

Mrs MMD Nkomo (Chairperson)

Previous Audit Committee

•MCom.•BCom.Hons•BCom.

28 January 2013 4 30Sept.2015

Ms R Kalidass Previous Audit Committee

•BCom.Hons•BCompt.•CA(SAICA)

28 January 2013 4 30Sept.2015

Mr N S Cronje Previous Audit Committee

•BCom.•MCom.•CTA,CA(SA)

28 January 2013 4 30Sept.2015

Mr P M Nel Previous Audit Committee

•BCompt.•BCompt.Hons

and CTA•CA(SA)

28 January 2013 4 30Sept.2015

Mr M Dada (Chairperson)

Current Audit Committee

•CA(SA) 1 January 2016 0 31 Dec. 2019

Ms MMD Nkomo Current Audit Committee

•MCom.•BCom.Hons•BCom.

1 January 2016 1 31 Dec. 2019

Ms S Makhathini Current Audit Committee

•CA(SA) 1 January 2016 1 31 Dec. 2019

Ms N Dick Current Audit Committee

•CA(SA) 1 January 2016 1 31 Dec. 2019

Mr N Cronje(ActingChairperson)

Current Audit Committee

•CA(SA) 1 January 2016 1 31 Dec. 2019

The Audit Committee had oversight of the independence of the external auditors, work of internal audit, risk management process, and monitoring of response actionstoauditfindings.TheCommitteealso reviewed the financial reports,financialstatementsandcompliancewithapplicable laws and legislation.

5.3 Internal controls

The NLSA has and maintains systems of internal controls based on its approved policies and procedures. These ensure theintegrityandreliabilityofthefinancialstatements and the safeguard of assets. During the current financial year, supplychain management controls were tightened and the task will continue in thenextfinancialperiod.Anactionplanto address the external and internal audit findings has been developed and ismonitored on a periodic basis.

5.4 Internal audit

The internal audit function reviews and providesassuranceon theeffectivenessof the NLSA’s internal control environment. The head of Internal Audit has direct access to the Audit Committee, primarily through its Chairperson.

Key activities and objectives of the internal audit:

The scope of Internal Audit encompasses the examination and evaluation of the adequacy and effectiveness of theorganisation’s governance, risk manage-ment process, system of internal controls and the quality of performance in carrying out assigned responsibilities to achieve the organisation’ stated goals and objectives.


49

The following internal audit work was completed during the reporting period:

• AssetManagementAudit;• CorporateGovernanceAudit;• StorageandPreservationAudit;• ReviewofAccessibilityof

Collections;• HumanResourcesManagement

Audit;• FinancialControlAudit;• SupplyChainManagement;• InformationTechnologyGeneral

ControlsAudit;and• AuditofPre-determinedObjectives

Year-End and Review of Objectives for2015/2016.

6. COMPLIANCE WITH LAWS AND REGULATIONS

The NLSA policies and procedures are developed in line with the relevant laws and regulations applicable to each regulated business process or policy objective

7. FRAUD AND CORRUPTION

The NLSA has an approved FraudPrevention Plan and subscribes to the nationalanti-corruptionhotline.Fraudandcorruption awareness were conducted via meetings and communicated by way of posters at strategic points of the NLSA’s facilities. The NLSA provides for confidential disclosure of suspected oractual fraud and corruption.

8. MINIMISING CONFLICT OF INTEREST

The Supply Chain Management employ-ees adhere to the SCM code of conduct. All participants in the bidding process in-cluding members of the Bid Committees declareanyconflictofinterestateachBidCommittee meeting. Non-compliance is dealt with in terms of the NLSA discipli-nary policy.

9. CODE OF CONDUCT

The NLSA have an approved code of conduct and employees are required to sign a declaration of interest in terms of the code of conduct. In terms of the King III Report on Corporate Governance for South Africa, 2009, Board members are required to declare their interests at every meeting in any relevant contracts that are discussed, to disclose any direct or indirect personal or private business interest that the member or any spouse, partner of close family member may have in any matter that is discussed at each meeting. Any member who declares any interesthe/shewillbeexcused from themeeting.

10. HEALTH SAFETy AND ENVIRONMENTAL ISSUES

The NLSA is cognisant of the provisions oftheHealthandSafetyAct,operationalprocesses and procedures implemented ensures that risk associated with health and safety are mitigated. Our operations have zero negative contributions to the environment including pollution and contamination. We execute our waste management practice in line with acceptable norms.

11. SOCIAL RESPONSIBILITy

The NLSA engages in outreach projects as part of social responsibility. The outreach projects includes the reading campaign, book donations and the provision of publicaccesstofreeWi-Ficonnectivityatthe Pretoria and Cape Town campuses.We are pleased to present our report for thefinancialyearended31March2016.

The Audit Committee complied with its responsibilitiesarisingfromSection51(1)(a)(ii)ofthePublicFinanceManagementAct andTreasuryRegulation 27(1). TheAudit Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in requirements with this charterand has discharged all its responsibilities as contained therein.

Pretoria Campus


51

The Effectiveness of Internal ControlOurreviewofthefindingsoftheInternalAuditwork, which was based on the risk assessments conducted at the NLSA revealed certain weaknesses, which were then raised with the public entity and attended to.

The following internal audit work was completed during the reporting period:• AssetManagement;• CorporateGovernance;• StorageandPreservation;• ReviewofAccessibilityofCollections;• HumanResourcesManagement;• FinancialControl;• SupplyChainManagement;• InformationTechnologyGeneral

Controls;and• ReportonPre-determinedObjectives.

In-Year Management Quarterly Report Members of the Audit Committee received and reviewed quarterly management reports. It is the responsibility of management to report as required by the policies and in accordance to the required standards and regulations. The National Library of South Africa reported quarterly to the Department of Arts and Culture.

Evaluation of the Financial StatementsThe Audit Committee has reviewed and discussed with the Auditor General and the Chief Financial Officer the audited annualfinancial statements to be included in theannual report; the Auditor General of SouthAfrica’s management letter and management’s responses thereto; NLSA’s compliance withlegal and regulatory provisions; informationon predetermined objectives to be included in theannual report; and significant adjustmentswhich resulted from the audit.

We have evaluated the annual financialstatements of the NLSA for the year ended 31 March 2016 and on the basis of the information provided, the Audit Committee considers that financial statements complieswith the requirements of the Public FinanceManagement Act No. 1 of 1999, as amended and the Generally Recognized Accounting Practice(GRAP).

Auditor’s reportsThe Audit Committee has reviewed the entities implementation plan for audit issues raised in theprior yearandwearesatisfied that thematters have been adequately resolved except for the following: • Therecognitionandmeasurementof

heritage collections in accordance with GRAP 103.

• Thereliabilityofprogrammereportedperformance information.

The Audit Committee concurs and accepts the conclusions of the Auditor General on the annual financial statements and the report onachievement against predetermined objectives. The committee is of the opinion that the audited annual financial statements be accepted andread together with the report of the Auditor General.

__________________________Mr Nic CronjeActing Chairperson: Audit Committee

12. AUDIT COMMITTEE REPORT

Conditional Grant Project, Pretoria

PART D: HUMAN RESOURCE

MANAGEMENT

Human Resource Management, Pretoria

Cen

tre fo

r the

Boo

k, C

ape

Tow

n


55

HUMAN RESOURCE MANAGEMENT1. INTRODUCTION

During theyearunder review, theHumanResourcesSub-ProgrammeachievedsignificantprogressagainstitsstrategicgoalsascontainedintheAPPfor2015/16.HumanResourcesPerformance Plan supports the overall organisational objectives in line with the strategy implementation. The Sub-Programme achieved all the APP targets against the strategic objectives forall thequarterly reportingcycles.TheultimategoalofourHumanResourcesSub-Programme is to provide service excellence to the core and support functions by attracting and retaining suitably qualified individuals.We continue to enhance,monitor and evaluatetheeffectivenessofourperformancemanagementandtheimplementationthereof.Amajorsuccess of the past performance year was the implementation of the realigned organisational structure with the aim of ensuring that we are positioned to deliver on our legislative mandate.

WecontinuetocollaborateandpartnerwiththeUnionsasaplatformtoeffectivelydriveHumanResources initiatives, with the aim of promoting a sound employment relations. The NLSA had consultationswith theUnions on theTalentManagement policy andHealth andWellnesspolicies, which were subsequently approved by the Board. The Induction and Orientation TrainingProgrammecontinuesonaquarterlybasistoenablenewlyappointedstaffmembersto enter the organisation with sound knowledge and understanding of the core values and the serviceofferingoftheNLSA.ThefocusofLearningandDevelopmentinthenextperformanceyear is on internal training for the purposes of boosting employee engagement and creating amotivated,skilledandeffectiveworkforcethroughwhichorganisationalgoalsareachieved.Funding for positions,HR programmes and initiatives remain one of themajor challengesfaced by the entity.

2. HUMAN RESOURCE OVERSIGHT STATISTICS

Personnel Cost By Programme/ Activity/ Objective

PROGRAMME/ACTIVITY/OBJECTIVE

TOTAL EXPENDITURE

FOR THE ENTITY (R’000)

PERSONNEL EXPENDITURE

(R’0)

PERSONNEL EXP. AS A % OF TOTAL

EXP. (R’000)

NO. OF EMPLOYEES

AVERAGE PERSONNEL COST PER EMPLOYEE

(R’000)Administration R41648625 R17 310 003.00 41.57% 52 R332 884.68Business Development R20 031 116 R16 378 741.00 81.77 % 65 R251980.63Community Engagement R51293089 R21295592.34 41.52% 52 R409530.63


56

Personnel Cost by Salary Band

LEVEL PERSONNEL

EXPENDITURE (R’000)

% OF PERSONNEL

EXP. TO TOTAL PERSONNEL COST (R’000)

NO. OF EMPLOYEES

AVERAGE PERSONNEL COST PER EMPLOYEE

(R’000)Top Management R4 397 894 8.0 % 4 R1099473.50Senior Management R3532743 6.4 % 6 R588790.50Professionalqualified R19 011 713 34.58% 48 R396 077.36Skilled R12059749 21.94 % 31 R389 024.17Semi-skilled R15982237 29.07 % 80 R199 777.97Unskilled - - - -TOTAL R54 984 337 100.00% 169 R2 673 143.50

Personnelcosts/expenditureaccountsforemployeesasattheendofthefinancialyearincludingthoseterminatedduringthefinancialyear.

Performance Rewards

LEVEL PERFORMANCE REWARDS

PERSONNEL EXPENDITURE (R’000)

% OF PERFORMANCE REWARDS TO TOTAL

PERSONNEL COST (R’000)

Top Management R25412.00 R4 397 894 0.58%Senior Management R46 686.64 R3532743 1.33 %Professionalqualified R201539.43 R19 011 713 1.06 %Skilled R117465.05 R12059749 0.98 %Semi-skilled R140536.00 R15982237 0.88%Unskilled - - -TOTAL R531 639.12 R 54 984 337 4.83 %

Training Costs

PROGRAMME/ACTIVITY/

OBJECTIVE

PERSONNEL EXPENDITURE

(R’000)

TRAINING EXPENDITURE

(R’000)

TRAINING EXPENDITURE

AS A % OF PERSONNEL

COST

NO. OF EMPLOYEES

AVG TRAINING COST PER EMPLOYEE

Administration R17 310 003.00 R367 616.16 2.13% 56 R6564.58Business Development R16 378 741.00 R73518.50 0.45% 67 R1 097.30

Community Engagement R21295592.34 R171 337.93 0.81% 53 R3 232.80

TOTAL R54 984 337 R 612 472.59 3.39% 176 R10 894.68

Employment and Vacancies During the year under review, the NLSA embarked on an exercise of reviewing and aligning the organisational structure with the purpose of positioning the organisation to deliver on its objectives and mandate. As a result of this process, two positions were removed from the Semi-Skilled employment category making the total number of vacancies nine instead of eleven. The exercise alsocausedadelayinrecruitmenttofillnewvacantpositionsemanatingfromthenewapprovedstructure. However, effortsweremade to fill critical executive positions thatwere vacant in theprevious performance year.


57

PROGRAMME/ACTIVITY/ OBJECTIVE

2014/2015 NO. OF

EMPLOYEES

2015/2016 APPROVED

POSTS2015/2016

NO. OF EMPLOYEES

2015/2016 VACANCIES

% OF VACANCIES

Administration 56 63 52 11 17.46 %Business Development 70 71 65 6 8.45%Community Engagement 56 59 52 7 11.86 %TOTAL 182 193 196 24 37.77 %

LEVEL2014/2015

NO. OF EMPLOYEES

2015/2016 APPROVED

POSTS

2015/2016NO. OF

EMPLOYEES

2015/2016 VACANCIES

% OF VACANCIES

Top Management 2 4 4 0 0%Senior Management 4 7 6 1 14.29 %Professionalqualified 41 52 48 4 7.70 %Skilled 51 39 31 8 20.52%Semi-skilled 84 91 80 11 12.09 %Unskilled - - - - -TOTAL 181 180 24 54.60 %

Employment ChangesDuring the year under review, the NLSA adopted and implemented various retention strategies such as talent management, promotions and performance bonuses, annual notch increases for highperformersand secondments to reduce staff turnover. However youngLibrarians, still findbetteropportunitiesoutsideof theNLSA.Whilst37 terminationsresulted fromtheexpiryoffixedterm contracts, only 19 terminations were experienced among permanent positions. A concerning numberofthoseresignationsarefromyoungprofessionalqualifiedandskilledemployees.

LEVELEMPLOYMENT AT BEGINNING

OF PERIODAPPOINTMENTS TERMINATIONS

EMPLOYMENT AT END OF THE

PERIODTop Management 2 3 1 4Senior Management 6 1 1 6Professionalqualified 45 8 5 48Skilled 36 1 6 31Semi-skilled 85 1 6 80Unskilled - - - -Total 174 14 19 169

Reasons for Staff Leaving

REASON NUMBER% OF TOTAL

NO. OF STAFF LEAVING

Death 1 3.03 %Resignation 12 36.37 %Dismissal 0 0 %Retirement 5 15.16%Ill health 1 3.03 %Expiry of contract 14 42.42%Other 0 0Total 37 100


58

Labour Relations: Misconduct and Disciplinary ActionDuring the year under review, the NLSA has taken less disciplinary actions towards employees. Although a few other cases of misconduct were experienced, the NLSA witnessed few resignations fromaffectedemployeesduringinvestigationsofallegedmisconducts;pendingfinalisationofformaldisciplinary processes.

NATURE OF DISCIPLINARY ACTION NUMBER Verbal Warning 0Written Warning 1FinalWrittenwarning 0Dismissal 0

Equity Target and Employment Equity Status TheNLSAcontinuestoaligntherecruitmentofstaffwithemploymentequitytargets.Theentitystrivesto focus on increasing the employment of people with disability through the review of employment equity targets.

LEVELSMALE

AFRICAN COLOURED INDIAN WHITECurrent Target Current Target Current Target Current Target

Top Management 3 0 0 0 0 0 0 0Senior Management 3 0 1 0 0 0 1 0Professionalqualified 8 5 0 1 0 1 1 0Skilled 11 0 1 0 0 2 6 1Semi-skilled 30 0 10 1 0 0 0 0Unskilled - - - - - - - -TOTAL 55 5 4 2 0 3 6 1

LEVELSFEMALE

AFRICAN COLOURED INDIAN WHITECurrent Target Current Target Current Target Current Target

Top Management 1 0 0 0 0 0 0 0Senior Management 3 0 0 0 0 0 0 0Professional qualified 7 3 1 1 0 0 3 0

Skilled 40 2 6 0 0 3 14 0Semi-skilled 19 0 7 2 0 1 0 0Unskilled - - - - - - - -Total 70 5 13 3 0 4 17 0

LEVELSDisabled Staff

Male FemaleCurrent Target Current Target

Top Management 0 0 0 0Senior Management 0 0 0 0Professionalqualified 0 0 1 1Skilled 0 1 0 0Semi-skilled 0 0 0Unskilled - - - -TOTAL 0 1 1 1

PART E: FINANCIAL INFORMATION

Finance and Supply Chain Management, Pretoria

Fina

nce,

Cap

e To

wn


61

FINANCIAL INFORMATION1. REPORT OF THE EXTERNAL AUDITOR

This is the audit report as issued by the external auditor.

2. ANNUAL FINANCIAL STATEMENTS


62

69 108


63


64

37 to 39.

39 to 40.


65

17 40


66


67

National Library of South AfricaAnnual Financial Statements for the year ended March 31, 2016

Index

The reports and statements set indexed hereunder are presented in compliance with the requirements of South AfricanStatements of Generally Recognised Accounting Practices (GRAP) and comprise the annual financial statements presented tothe Audit Committee:

Index Page

Accounting Authority's Responsibilities and Approval

Statement of Financial Position

Statement of Financial Performance

Statement of Changes in Net Assets

Cash Flow Statement

Statement of Comparison of Budget and Actual Amounts

Accounting Policies

Notes to the Annual Financial Statements

68

69

70

71

72

73 - 74

75-89

90 - 108


68


Accounting Authority's Responsibilities and Approval

The Board of the National Library of South Africa (NLSA) is required by the Public Finance Management Act (Act 1 of 1999), tomaintain adequate accounting records and is responsible for the content and integrity of the annual financial statements andrelated financial information included in this report. It is the responsibility of the Board to ensure that the annual financialstatements fairly present the state of affairs of the NLSA as at the end of the financial year and the results of its operations andcash flows for the period ended. The external auditor is engaged to express an independent opinion on the annual financialstatements and is given unrestricted access to all financial records and related data.

The annual financial statements have been prepared in accordance with Standards of Generally Recognised AccountingPractice (GRAP) including any interpretations, guidelines and directives of such Statements issued by the AccountingStandards Board.

The annual financial statements are based upon appropriate accounting policies consistently applied and supported byreasonable and prudent judgements and estimates.

The Board acknowledges that they are ultimately responsible for the system of internal financial control established by theNLSA and place considerable importance on maintaining a strong control environment. To enable the Board to meet theseresponsibilities, the board members set standards for internal control aimed at reducing the risk of error or deficit in a costeffective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effectiveaccounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitoredthroughout the NLSA and all employees are required to maintain the highest ethical standards in ensuring the NLSA’s businessis conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the NLSA ison identifying, assessing, managing and monitoring all known forms of risk across the NLSA. While operating risk cannot befully eliminated, the NLSA endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethicalbehaviour are applied and managed within predetermined procedures and constraints.

The Board is of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the annual financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance againstmaterial misstatement or deficit.

The Board has reviewed the NLSA’s cash flow forecast and, in the light of this review and the current financial position, it issatisfied that the NLSA has access to adequate resources to continue in operational existence for the foreseeable future.

The NLSA is wholly dependent on the state grant for continued funding of operations. The annual financial statements areprepared on the basis that the NLSA is a going concern and that the Board has neither the intention nor the need to liquidate orcurtail materially the scale of the library.

The annual financial statements set out on pages 3 to 42, which have been prepared on the going concern basis, wereapproved by the Board on July 29, 2016 and are signed on its behalf by:

Prof Rocky M.D Ralebipi-Simela Mr Themba T.C DlaminiNational Librarian & CEO Chairperson of the Board

National Library of South Africa

Friday, July 29, 2016

69 to 108 which have been prepared on the going concern basis, were


69


Statement of Financial Position as at March 31, 2016Figures in Rand Note(s) 2016 2015

Restated*

Assets

Current Assets

Receivables from exchange transactions 4 896,241 782,253

Prepayments 976,553 1,838,050

Bequests related investments 3 400 200

Cash and cash equivalents 5 127,785,644 55,361,773

129,658,838 57,982,276

Non-Current Assets

Property, plant and equipment 6 28,860,183 30,703,750

Intangible assets 7 518,221 518,221

Heritage assets 8 12,724,125 9,535,801

Other financial assets 9 5,100,000 4,210,000

47,202,529 44,967,772

Non-Current Assets 47,202,529 44,967,772

Current Assets 129,658,838 57,982,276Total Assets 176,861,367 102,950,048

Liabilities

Current Liabilities

Payables from exchange transactions 10 4,845,973 5,405,579

Post employement benefit obligation 11 1,477,460 1,310,144

Deferred income - Grants received 12 103,712,042 33,741,745

Provisions 36 5,402,734 6,328,821

115,438,209 46,786,289

Non-Current Liabilities

Post employement benefit obligation 11 32,170,815 29,063,189

Deferred income - Grants received 12 - 4,048,191

32,170,815 33,111,380

Non-Current Liabilities 32,170,815 33,111,380

Current Liabilities 115,438,209 46,786,289Total Liabilities 147,609,024 79,897,669

Assets 176,861,367 102,950,048

Liabilities (147,609,024) (79,897,669)Net Assets 29,252,343 23,052,379

Reserves

Non distributable reserves 6,916,556 5,149,007

Accumulated surplus 22,335,787 17,903,372

Total Net Assets 29,252,343 23,052,379


70


Statement of Financial PerformanceFigures in Rand Note(s) 2016 2015

Restated*

Revenue

Revenue from exchange transactions

Other income 16 2,712,266 3,655,920

Interest received - investment 22 5,032,097 3,289,028

Total revenue from exchange transactions 7,744,363 6,944,948

Revenue from non-exchange transactions

Transfer revenue

Government grants & subsidies 17 75,716,000 72,387,000

Gains from legal deposits 15 1,767,549 1,495,260

Deferred income realised 16 34,641,428 10,695,518

Total revenue from non-exchange transactions 112,124,977 84,577,778

Total revenue 14 119,869,340 91,522,726

Expenditure

Personnel Costs 21 (54,984,337) (53,356,664)

Depreciation and amortisation (2,896,571) (3,026,880)

Finance costs (2,458,757) (2,435,334)

Debt Impairment - (130,703)

Repairs and maintenance (271,437) (884,022)

General expenses 18 (6,942,800) (8,054,831)

Special projects costs 19 (32,650,076) (9,995,802)

Audit fees 23 (2,088,603) (1,180,725)

Contracts and consulting & professional services 23 (6,758,923) (6,568,921)

Subcriptions and licenses (4,028,222) (2,589,941)

Total expenditure (113,079,726) (88,223,823)

- -Operating surplus 20 6,789,614 3,298,903

Loss on disposal of assets (303,012) (36,377)

Loss on foreign exchange (189,459) (46,999)

Fair value adjustments 890,200 458,100

Actuarial gains/losses 11 (1,228,898) (1,707,721)

Coupons realised to income 241,521 -

(589,648) (1,332,997)

Surplus for the year 6,199,966 1,965,906


71


Statement of Changes in Net Assets

Figures in Rand

NonDistributable

reserves

Revaluationreserve

Total reserves Accumulatedsurplus

Total netassets

Opening balance as previously reported - 721,109 721,109 4,617,936 5,339,045AdjustmentsCorrection of errors - (721,109) (721,109) 12,814,790 12,093,681Prior year adjustments 3,653,747 - 3,653,747 - 3,653,747

Balance at April 01, 2014 as restated* 3,653,747 - 3,653,747 17,432,726 21,086,473Changes in net assetsSurplus for the year - - - 1,965,906 1,965,906Transfer of gains from legal deposits from theaccumulated surplus to NDR

1,495,260 - 1,495,260 (1,495,260) -

Total changes 1,495,260 - 1,495,260 470,646 1,965,906

Restated* Balance at April 01, 2015 5,149,007 - 5,149,007 17,903,370 23,052,377Changes in net assetsSurplus for the year - - - 6,199,966 6,199,966Transfer of gains from legal deposits from theaccumulated surplus to NDR

1,767,549 - 1,767,549 (1,767,549) -

Total changes 1,767,549 - 1,767,549 4,432,417 6,199,966

Balance at March 31, 2016 6,916,556 - 6,916,556 22,335,787 29,252,343


72


Cash Flow StatementFigures in Rand Note(s) 2016 2015

Restated*

Cash flows from operating activities

Receipts

Grants 110,357,428 83,004,404

Interest income 5,032,097 3,289,028

Mzansi Libraries Online 70,518,541 -

Other income 2,712,266 3,655,919

188,620,332 89,949,351

Payments

Employee costs (54,879,897) (53,356,663)

Suppliers (56,080,961) (25,448,821)

Finance costs (2,458,757) (2,435,334)

(113,419,615) (81,240,818)

Total receipts 188,620,332 89,949,351

Total payments (113,419,615) (81,240,818)

Net cash flows from operating activities 24 75,200,717 8,708,533

Cash flows from investing activities

Purchase of property, plant and equipment 6 (1,422,136) (798,887)

Proceeds from sale of property, plant and equipment 6 66,120 7,483

Purchases of heritage assets 8 (1,420,830) (1,478,378)

Net cash flows from investing activities (2,776,846) (2,269,782)

Net increase/(decrease) in cash and cash equivalents 72,423,871 6,438,751

Cash and cash equivalents at the beginning of the year 55,361,773 48,923,022

Cash and cash equivalents at the end of the year 5 127,785,644 55,361,773


73


Statement of Comparison of Budget and Actual AmountsBudget on Cash Basis

Figures in Rand

Approvedbudget

Adjustments Final Budget Actual amountson comparable

basis

Differencebetween finalbudget and

actual

% ofexpenditure to

adj. budget31 March 2016

Statement of Financial Performance

Revenue

Revenue from exchangetransactions

Other income 2,090,000 - 2,090,000 2,712,266 622,266 130%

Interest received - investment 2,530,000 - 2,530,000 5,032,097 2,502,097 199%

Total revenue from exchangetransactions

4,620,000 - 4,620,000 7,744,363 3,124,363

Revenue from non-exchangetransactions

Transfer revenue

Government grants & subsidies 75,716,000 - 75,716,000 75,716,000 - 100%

Deferred income realised: MzanziOnline

25,725,000 6,665,000 32,390,000 16,548,218 (15,841,782) 51%

Gains from legal deposits - - - 1,767,549 1,767,549 -100%

Deferred income realised-National Lottery Commission

- - - 20,743 20,743 -100%

Deferred income realised- DAC 48,211,000 (13,713,000) 34,498,000 18,072,468 (16,425,532) 52%

Total revenue from non-exchange transactions

149,652,000 (7,048,000) 142,604,000 112,124,978 (30,479,022)

'Total revenue from exchangetransactions'

4,620,000 - 4,620,000 7,744,363 3,124,363 168%

'Total revenue from non-exchange transactions'

149,652,000 (7,048,000) 142,604,000 112,124,978 (30,479,022) 78%

Total revenue 154,272,000 (7,048,000) 147,224,000 119,869,341 (27,354,659)

Expenditure

Personnel (61,060,000) - (61,060,000) (54,984,337) 6,075,663 90%

Finance costs - - - (2,458,757) (2,458,757) -100%

General Expenses (20,276,000) (800,000) (21,076,000) (23,384,964) (2,308,964) 116%

Project Expense: DACConditional Grant - CommunityLibraries

(48,211,000) 15,513,000 (32,698,000) (16,145,517) 16,552,483 50%

Project Expense: Mzanzi Online(Gates Foundation)

(25,725,000) (6,665,000) (32,390,000) (16,483,816) 15,906,184 51%

National Lottery Commissiongrant

- - - (20,743) (20,743) -100%

Total expenditure (155,272,000) 8,048,000 (147,224,000) (113,478,134) 33,745,866

154,272,000 (7,048,000) 147,224,000 119,869,341 (27,354,659) 89%

(155,272,000) 8,048,000 (147,224,000) (113,478,134) 33,745,866 85%Operating surplus (1,000,000) 1,000,000 - 6,391,207 6,391,207

Loss on disposal of assets andliabilities

- - - (303,012) (303,012) -100%

Loss on foreign exchange - - - (189,459) (189,459) -100%

Fair value adjustments - - - 890,200 890,200 100%

Actuarial gains/losses - - - (1,228,898) (1,228,898) -100%

Coupons realised to income - - - 241,521 241,521 -100

- - - (589,648) (589,648)


74


Statement of Comparison of Budget and Actual AmountsBudget on Cash Basis

Figures in Rand

Approvedbudget

Adjustments Final Budget Actual amountson comparable

basis

Differencebetween finalbudget and

actual

% ofexpenditure to

adj. budget31 March 2016

(1,000,000) 1,000,000 - 6,391,207 6,391,207 100%

- - - (589,648) (589,648) 100%Surplus (1,000,000) 1,000,000 - 5,801,559 5,801,559

Net Surpus for the year (1,000,000) 1,000,000 - 5,801,559 5,801,559 100%

Actual Amount on ComparableBasis as Presented in theBudget and ActualComparative Statement

(1,000,000) 1,000,000 - 5,801,559 5,801,559

Reconciliation

Basis difference

Movement in provision 926,087

Depreciation (2,896,571)

Movement in retirement benefits 3,274,942

Gains from legal deposit (1,767,548)

Movements in prepayments 861,497

Actual Amount in theStatement of FinancialPerformance

6,199,966

1. Disclosure

1.1. The budget is approved on cash basis by economic classification. The approved budget covers the fiscal period from 01April 2015 to 31 March 2016.

1.2. The budget and the accounting bases differ, These financial statements are prepared on an accrual basis using theclassification based on the nature of expenses in the statements of financial performance. The financial statements differ fromthe budget, which is approved on the cash basis.

1.3. A reconciliation between the actual amounts on a comparable basis as presented in the Statement of Comparison ofBudget and Actual Amounts and the actual amounts in the Statement of Cash Flows for the year ended 31 March 2016 ispresented above. The financial statements and the budget documents are prepared for the same period.

2.Material differences between budget versus actual amounts.

2.1. Revenue from exchange transactions: The increase in revenue of R3,124,363 was mainly due to additional interestearned on the MLO grant amounting to R64 million which was received in the last quarter of the year, and interest fromunrealised deferred income and royalties from NISC which were not in the budget.

2.2. Project expenditure: The Mzansi Libraries Online project spent a total of 51% of the estimated budget. The underspendingwas a result of HR recruitment & selection and procurement delays, however the Bill and Melinda Foundation granted NLSA anextention to accomodate the spending of the remaining funds.

2.3. Project expenditure: DAC Conditional Grant spent a total of 50% of the their estimated budget. The remaining amount iscommitted to the Eactern Cape ICT project and the capital works that is expected to take place in 2016/2017 financial year.


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Accounting Policies

1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally RecognisedAccounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the PublicFinance Management Act (Act 1 of 1999).

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance withhistorical cost convention as the basis of measurement, unless specified otherwise. They are presented in South AfricanRand.

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance withhistorical cost convention as the basis of measurement, unless specified otherwise. They are presented in South AfricanRand.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these annualfinancial statements, are disclosed below.

These accounting policies are consistent with the previous period.

1.1 Going concern assumption

These annual financial statements have been prepared based on the expectation that the NLSA will continue to operate asa going concern for at least the next 12 months.

1.2 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in theproduction or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used duringmore than one period.

The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the NLSA; and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to thelocation and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts andrebates are deducted in arriving at the cost.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the locationand condition necessary for it to be capable of operating in the manner intended by management.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimatedresidual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Plant and machinery Straight line 50 yearsFurniture and fixtures Straight line 15 yearsMotor vehicles Straight line 5-10yearsOffice equipment Straight line 5-10 yearsComputer equipment Straight line 5-10 yearsLeasehold improvements Straight line 15-25 years

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting dateWhere the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.


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Accounting Policies

1.2 Property, plant and equipment (continued)

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unlessexpectations differ from the previous estimate.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount ofanother asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit whenthe item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment isdetermined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.3 Intangible assets

An asset is identifiable if it either: is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or

exchanged, either individually or together with a related contract, identifiable assets or liability, regardless ofwhether the entity intends to do so; or

arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferable or separable from the NLSA or from other rights and obligations.

An intangible asset is recognised when: it is probable that the expected future economic benefits or service potential that are attributable to the asset will

flow to the NLSA; and the cost or fair value of the asset can be measured reliably.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measuredat its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

Intangible assets are carried at cost less accumulated armotisation and any impairment losses.

The carrying value of the intangible assets is reviewed annually to assess if conditions exists for an impairment test

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator thatthe asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised overits useful life.

Intangible assets have been assessed to have an indefinite life. The assessement was significantly influenced by the legalpermission on the software, whereon there are no limitations on the use of it and the software does not expire and there are nouser restrictions. The NLSA has determined to keep the assets in use for an indefinte period.


77


Accounting Policies

1.4 Heritage assets

The National Library of South Africa is the primary resource and custodian of South African documentary heritage andpromotes creative, efficient and universal access to information. The NLSA collects, records, preserves and promotesaccess to the National documentary heritage, both locally and international. The National Library of South Africa is one ofthe Legal deposit institutions in South Africa, and complies with the Legal Deposit Act, 1997 (Act 54 of 1997).

The library’s collection includes books, records, journals, serials, newspapers, magazines, manuscripts, maps, prints, soundand music recordings, digital items, patents, prints and many more. The collection of the National Library is unique in itsbreadth, depth and scope in the Republic of South Africa. A significant number of items in collection are priceless andirreplaceable due to the age and lack of an active market.

Classification for financial purposes

The National Library classifies its collection as Heritage Assets with historical, cultural, educational, artistic, scientific,technological or natural significant. It is the mission of the National Library to be the primary resource and custodian ofSouth Africa’s documentary heritage. The National Library acts as the national preservation library in terms of the NationalLibrary of South Africa Act, 1998 (Act No. 92 of 1998, and the collections are held for an indefinite period. It is the purposeof the National Library to preserve all its collections for posterity and use by future generations. Ancillary to the mission ofthe National Library is the provision of access to the library collections to a variety of users, primarily the South Africanpublic free of charge.

Recognition and measurement

The National Library collections is recognised as an assets when items acquired either through legal deposit, purchases,bequests or donations meet the recognition criteria in terms of GRAP 103. Heritage assets recognised in the statement offinancial position are measured at costs less accumulated impairment. Costs at date of acquisition are determined asfollows

- Heritage collections acquired on an exchange transaction are measured at costs on date of acquisition

- Heritage collections acquired through non-exchange transactions, i.e. via legal deposits and donations are measured atcosts, of which costs is determined by reference to the estimated fair value at date of acquisition, and this does notconstitute a revaluation.

Recognition date for the items acquired through legal deposit is the date the item is catalogue. This date provides a reliableprobability that the service potential associated with the library collections received will be realised in the future by theNational Library.

The National Library has only capitalised and reported in the Statement of Financial Position, heritage collections acquiredthrough legal deposits since 1 April 2012

A significant number of items of the National Library collections acquired through legal deposits were not recognised in thestatements of financial position due to limitations in reliably measuring the costs of the heritage assets, this is consistentwith GRAP 103.

Books, records, journals, serials, newspapers, magazines, manuscripts, maps, prints, sound and music recordings, digitalitems, patents, prints acquired before 1 April 2012 are not recognised because the cost or fair value can not be reliablymeasured. Limitations to reliably measure the cost or fair value of library collections acquired through legal deposits pre 01April 2012 :

a) All none capitalised/ recognised items of the National Library collections were acquired by way of donations, bequests orlegal deposits through non-exchange transactions, and without costs to the National Library. Records of deemed costs/ Fairvalues were not kept

b) The majority of the library collections are old, and are not available on print or in an active market

c) Assigning fair values at date of acquisition to the library collections may require the use of level three unobservableinputs which are susceptible to high levels of uncertainties and significant variation, which will cause a determination ofunreliable estimates of fair values


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Accounting Policies

1.4 Heritage assets (continued)

d) The collection combination is likely to vary significantly for period longer than five years due to technologicaldevelopments, changes in economic environment and other factors

e) The NLSA’s library collections are held for the purpose of maintaining and disseminating South Africa’s documentaryheritage and are not held for deriving economic benefits, thereby limiting a reliable comparison to an actively traded item

f) The value of the collections is significantly attached to the knowledge information contained in each which pertains to thehistorical, cultural, educational, artistic, scientific, technological or natural information (Items of books which are out of printor are not in the market may not be valued on a replacement basis, neither can the collection be recreated once lost)

g) Costs outweigh the benefits

- As at March 2012, the National library recorded a total of 1 222 416 items in its collection (591 116 at the Pretoria campus,and 631 300 at the Cape Town campus). This number is still counting as at 31 March 2016.

- Tracing costs per individual item for the varying nature of collections at the national library will be very costly and willrequire a very significant amount of time invested by professionals to identify each item separately, establish the acquisitiondate, and estimates the fair value

- Given the age of the collections and the significant variation in economic and financial factors which are likely to influencethe estimation of fair values, together with the conversion that took place over time on items which were either de-acidifiedor bound with others, the probability of reliable determining the fair value is significantly close to none.

Presentation and Disclosure

The financial statements shall disclose for each class of heritage assets recognised in the financial statements:

a) the existence and amounts of restrictions on title and disposal of heritage assets;

b) heritage assets pledged as securities for liabilities;

c) the amount of contractual commitments for the acquisition, maintenance and restoration of heritage assets; and

d) if it is not disclosed separately on the face of the statement of financial performance, the amount of compensation fromthird parties for items of heritage assets that were impaired, lost or given up that is included in surplus or deficit. d in surplusor deficit.

Heritage assets shall be presented as a separate line item on the face of the statement of financial position

When a heritage asset is not recognize or a class of heritage assets is not recognized as a result of reliable measurementnot being possible on initial recognition, the entity shall disclose the following for each heritage asset or class of heritageassets:

a) description of the heritage asset or class of heritage assets

b) the reason why the heritage asset or class of heritage assets could not be measured reliably; and

c) disposal of the heritage asset or class of heritage assets, the compensation received and the amount recognised in thestatement of financial performance


79


Accounting Policies

1.5 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residualinterest of another entity.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability ismeasured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effectiveinterest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly orthrough the use of an allowance account) for impairment or uncollectibility.

A concessionary loan is a loan granted to or received by an entity on terms that are not market related.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing todischarge an obligation.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inforeign exchange rates.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement offinancial position.

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (orgroup of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevantperiod. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through theexpected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financialasset or financial liability. When calculating the effective interest rate, an entity shall estimate cash flows considering allcontractual terms of the financial instrument (for example, prepayment, call and similar options) but shall not consider futurecredit losses. The calculation includes all fees and points paid or received between parties to the contract that are anintegral part of the effective interest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transactioncosts, and all other premiums or discounts. There is a presumption that the cash flows and the expected life of a group ofsimilar financial instruments can be estimated reliably. However, in those rare cases when it is not possible to reliablyestimate the cash flows or the expected life of a financial instrument (or group of financial instruments), the entity shall usethe contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing partiesin an arm’s length transaction.

A financial asset is: cash; a residual interest of another entity; or a contractual right to:

- receive cash or another financial asset from another entity; or- exchange financial assets or financial liabilities with another entity under conditions that are potentiallyfavourable to the entity.

A financial liability is any liability that is a contractual obligation to: deliver cash or another financial asset to another entity; or exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changesin market interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financialliabilities that are settled by delivering cash or another financial asset.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.

Loans payable are financial liabilities, other than short-term payables on normal credit terms.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.


80


Accounting Policies

1.5 Financial instruments (continued)

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changesin market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused byfactors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments tradedin the market.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.

A residual interest is any contract that manifests an interest in the assets of an entity after deducting all of its liabilities. Aresidual interest includes contributions from owners, which may be shown as:

equity instruments or similar forms of unitised capital; a formal designation of a transfer of resources (or a class of such transfers) by the parties to the transaction as

forming part of an entity’s net assets, either before the contribution occurs or at the time of the contribution; or a formal agreement, in relation to the contribution, establishing or increasing an existing financial interest in the

net assets of an entity.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial assetor financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued ordisposed of the financial instrument.

Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that havefixed or determinable payments, excluding those instruments that:

the entity designates at fair value at initial recognition; or are held for trading.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an activemarket, and whose fair value cannot be reliably measured.

Financial instruments at fair value comprise financial assets or financial liabilities that are: derivatives; combined instruments that are designated at fair value; instruments held for trading. A financial instrument is held for trading if:

- it is acquired or incurred principally for the purpose of selling or repurchasing it in the near-term; or- on initial recognition it is part of a portfolio of identified financial instruments that are managed together andfor which there is evidence of a recent actual pattern of short term profit-taking;- non-derivative financial assets or financial liabilities with fixed or determinable payments that are designatedat fair value at initial recognition; and- financial instruments that do not meet the definition of financial instruments at amortised cost or financialinstruments at cost.

Initial measurement of financial assets and financial liabilities

The NLSA measures a financial asset and financial liability initially at its fair value plus transaction costs that are directlyattributable to the acquisition or issue of the financial asset or financial liability.

Subsequent measurement of financial assets and financial liabilities

The NLSA measures all financial assets and financial liabilities after initial recognition using the following categories: Financial instruments at fair value.

Fair value measurement considerations


81


Accounting Policies

1.5 Financial instruments (continued)

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, theNLSA establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish whatthe transaction price would have been on the measurement date in an arm’s length exchange motivated by normaloperating considerations. Valuation techniques include using recent arm’s length market transactions betweenknowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially thesame, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by marketparticipants to price the instrument and that technique has been demonstrated to provide reliable estimates of pricesobtained in actual market transactions, the entity uses that technique. The chosen valuation technique makes maximumuse of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that marketparticipants would consider in setting a price and is consistent with accepted economic methodologies for pricing financialinstruments. Periodically, an entity calibrates the valuation technique and tests it for validity using prices from anyobservable current market transactions in the same instrument (i.e. without modification or repackaging) or based on anyavailable observable market data.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value isrecognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus ordeficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense insurplus or deficit.

Dividends or similar distributions relating to a financial instrument or a component that is a financial liability is recognised asrevenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue orexpense in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial positionwhen the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on anet basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the NLSA does not offset thetransferred asset and the associated liability.

1.6 Tax

No provision for income tax was made as the entity is incorporated as an entity not for gain and listed as a schedule 3Apublic entity according to the Public Finance Management Act, Act 1 of 1999, as amended by Act 29 of 1999. The entity isexempt from tax, in terms of section 10(1)(cA)(i)(bb) of the Income Tax Act 58 of 1962.


82


Accounting Policies

1.7 Employee benefits

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled withintwelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as: wages, salaries and social security contributions; short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for

the absences is due to be settled within twelve months after the end of the reporting period in which theemployees render the related employee service;

bonus, incentive and performance related payments payable within twelve months after the end of the reportingperiod in which the employees render the related service; and

non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing,cars and cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscountedamount of short-term employee benefits expected to be paid in exchange for that service:

as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds theundiscounted amount of the benefits, the entity recognise that excess as an asset (prepaid expense) to theextent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increasetheir entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measure the expectedcost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of theunused entitlement that has accumulated at the reporting date.

The entity recognise the expected cost of bonus, incentive and performance related payments when the entity has a presentlegal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligationcan be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion ofemployment.

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employmentbenefits for one or more employees.

Post-employment benefits: Defined contribution plans

Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separateentity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficientassets to pay all employee benefits relating to employee service in the current and prior periods.

When an employee has rendered service to the entity during a reporting period, the entity recognise the contributionpayable to a defined contribution plan in exchange for that service:

as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paidexceeds the contribution due for service before the reporting date, an entity recognise that excess as an asset(prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or acash refund; and

as an expense, unless another Standard requires or permits the inclusion of the contribution in the cost of anasset.

Where contributions to a defined contribution plan do not fall due wholly within twelve months after the end of the reportingperiod in which the employees render the related service, they are discounted. The rate used to discount reflects the timevalue of money. The currency and term of the financial instrument selected to reflect the time value of money is consistentwith the currency and estimated term of the obligation.

Post-employment benefits: Defined benefit plans


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Accounting Policies

1.7 Employee benefits (continued)

Defined benefit plans are post-employment benefit plans other than defined contribution plans.

Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarialassumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its definedbenefit liability the NLSA recognise actuarial gains and losses in surplus or deficit in the reporting period in which theyoccur.

Assets held by a long-term employee benefit fund are assets (other than non-transferable financial instruments issued bythe reporting entity) that are held by an entity (a fund) that is legally separate from the reporting entity and exists solely topay or fund employee benefits and are available to be used only to pay or fund employee benefits, are not available to thereporting entity’s own creditors (even in liquidation), and cannot be returned to the reporting entity, unless either:

the remaining assets of the fund are sufficient to meet all the related employee benefit obligations of the plan orthe reporting entity; or

the assets are returned to the reporting entity to reimburse it for employee benefits already paid.

Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service inthe current period.

Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because thebenefits are one period closer to settlement.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods,resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-termemployee benefits. Past service cost may be either positive (when benefits are introduced or changed so that the presentvalue of the defined benefit obligation increases) or negative (when existing benefits are changed so that the present valueof the defined benefit obligation decreases). In measuring its defined benefit liability the entity recognise past service costas an expense in the reporting period in which the plan is amended.

The present value of a defined benefit obligation is the present value, without deducting any plan assets, of expected futurepayments required to settle the obligation resulting from employee service in the current and prior periods.

The amount recognised as a defined benefit liability is the net total of the following amounts: the present value of the defined benefit obligation at the reporting date; minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled

directly; plus any liability that may arise as a result of a minimum funding requirement

The amount determined as a defined benefit liability may be negative (an asset). The entity measure the resulting asset atthe lower of:

the amount determined above; and the present value of any economic benefits available in the form of refunds from the plan or reductions in future

contributions to the plan. The present value of these economic benefits is determined using a discount rate whichreflects the time value of money.

Any adjustments arising from the limit above is recognised in surplus or deficit.

The NLSA determine the present value of defined benefit obligations and the fair value of any plan assets with sufficientregularity such that the amounts recognised in the annual financial statements do not differ materially from the amounts thatwould be determined at the reporting date.

The NLSA recognises the net total of the following amounts in surplus or deficit, except to the extent that another Standardrequires or permits their inclusion in the cost of an asset:

current service cost; interest cost; the expected return on any plan assets and on any reimbursement rights; actuarial gains and losses; past service cost; the effect of any curtailments or settlements; and the effect of applying the limit on a defined benefit asset (negative defined benefit liability).


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Accounting Policies

1.7 Employee benefits (continued)

The entity uses the Projected Unit Credit Method to determine the present value of its defined benefit obligations and therelated current service cost and, where applicable, past service cost. The Projected Unit Credit Method (sometimes knownas the accrued benefit method pro-rated on service or as the benefit/years of service method) sees each period of serviceas giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

In determining the present value of its defined benefit obligations and the related current service cost and, where applicable,past service cost, an entity shall attribute benefit to periods of service under the plan’s benefit formula. However, if anemployee’s service in later years will lead to a materially higher level of benefit than in earlier years, an entity shall attributebenefit on a straight-line basis from:

the date when service by the employee first leads to benefits under the plan (whether or not the benefits areconditional on further service); until

the date when further service by the employee will lead to no material amount of further benefits under the plan,other than from further salary increases.

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. The results of thevaluation are updated for any material transactions and other material changes in circumstances (including changes inmarket prices and interest rates) up to the reporting date.

The NLSA recognises gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment orsettlement occurs. The gain or loss on a curtailment or settlement comprises:

any resulting change in the present value of the defined benefit obligation; and any resulting change in the fair value of the plan assets.

Before determining the effect of a curtailment or settlement, the NLSA re-measure the obligation (and the related planassets, if any) using current actuarial assumptions (including current market interest rates and other current market prices).

When it is virtually certain that another party will reimburse some or all of the expenditure required to settle a defined benefitobligation, the right to reimbursement is recognised as a separate asset. The asset is measured at fair value. In all otherrespects, the asset is treated in the same way as plan assets. In surplus or deficit, the expense relating to a defined benefitplan is [OR is not] presented as the net of the amount recognised for a reimbursement.

The entity offsets an asset relating to one plan against a liability relating to another plan when the entity has a legallyenforceable right to use a surplus in one plan to settle obligations under the other plan and intends either to settle theobligations on a net basis, or to realise the surplus in one plan and settle its obligation under the other plan simultaneously.

Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations areto be settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money.The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currencyand estimated term of the post-employment benefit obligations.

Post-employment benefit obligations are measured on a basis that reflects: estimated future salary increases; the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those

terms) at the reporting date; and estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit

plan, if, and only if, either: those changes were enacted before the reporting date; or past history, or other reliable evidence, indicates that those state benefits will change in some predictable

manner, for example, in line with future changes in general price levels or general salary levels.

Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting fromboth inflation and specific changes in medical costs.


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Accounting Policies

1.8 Commitments

Items are classified as commitments when an entity has committed itself to future transactions that will normally result in theoutflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financialstatements, if both the following criteria are met:

Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer orbuilding maintenance services); and

Contracts should relate to something other than the routine, steady, state business of the entity – therefore salarycommitments relating to employment contracts or social security benefit commitments are excluded.

1.9 Provisions and contingencies

Provisions are recognised when: the NLSA has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation atthe reporting date.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if itis no longer probable that an outflow of resources embodying economic benefits or service potential will be required, tosettle the obligation.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 37.

1.10 Revenue from exchage transactions

Revenue from exchange transactions is recognised when it is probable that future economic benefits will flow to theenterprise and these benefits can be measured reliably.

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have beentransferred to the buyer.

Revenue from letting out of equipment and space is recognised when the service has taken place. In the case of spaceletting, revenue is recognized when it is earned.

Interest income is accrued on a time proportion basis, taking into account the principal outstanding and the effectiveinterest rate over the period to maturity.

Dividend income from investments is recognised when the right to receive payment has been established.

Government transfer payments are recognised when the income is received.

Interest, royalties and dividends

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends is recognised when: It is probable that the economic benefits or service potential associated with the transaction will flow to the NLSA,

and The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends, or their equivalents are recognised, in surplus or deficit, when the NLSA’s right to receive payment has beenestablished.


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Accounting Policies

1.11 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an NLSA, whichrepresents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potentialembodied in the asset is required to be consumed by the recipient as specified or future economic benefits or servicepotential must be returned to the transferor.

Control of an asset arise when the NLSA can use or otherwise benefit from the asset in pursuit of its objectives and canexclude or otherwise regulate the access of others to that benefit.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, the NLSAeither receives value from another entity without directly giving approximately equal value in exchange, or gives value toanother entity without directly receiving approximately equal value in exchange.

Recognition

An inflow of resources from a non-exchange transaction which is recognised as an asset is also recognised as revenue,except to the extent that a liability is also recognised in respect of the same inflow.

As the NLSA satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchangetransaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount ofrevenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by theNLSA.

When, as a result of a non-exchange transaction, the NLSA recognises an asset, it also recognises revenue equivalent tothe amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise aliability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required tosettle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue.When a liability is subsequently reduced, because the event occurs or a condition is satisfied, the amount of the reductionin the liability is recognised as revenue.

Bequests

Bequests that satisfy the definition of an asset are recognised as assets and revenue when it is probable that the futureeconomic benefits or service potential will flow to the NLSA, and the fair value of the assets can be measured reliably.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the futureeconomic benefits or service potential will flow to the NLSA and the fair value of the assets can be measured reliably.

1.12 Government grants

Government grants are recorded as deferred income when they become receivable and are then recognised as income ona systematic basis over the periods necessary to match the grants with related costs which they are intended tocompensate - Income-related grants subsidising expenses are credited to the statement of financial perfomance as other income whenthe related expense is recognised. - Asset related grants are capitalised in the statement of financial position as and when the grant funded asset is acquired,unless the economic benefits are not expected to accrue to NLSA

1.13 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.


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Accounting Policies

1.14 Translation of foreign currencies

Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount thespot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At each reporting date: foreign currency monetary items are translated using the closing rate; non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rate at the date of the transaction; and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates

at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different fromthose at which they were translated on initial recognition during the period or in previous annual financial statements arerecognised in surplus or deficit in the period in which they arise.

When a gain or loss on a non-monetary item is recognised directly in net assets, any exchange component of that gain orloss is recognised directly in net assets. When a gain or loss on a non-monetary item is recognised in surplus or deficit, anyexchange component of that gain or loss is recognised in surplus or deficit.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amountthe exchange rate between the Rand and the foreign currency at the date of the cash flow.

1.15 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

1.16 Unauthorised expenditure

Unauthorised expenditure means: overspending of a vote or a main division within a vote; and expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance

with the purpose of the main division.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performancein the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense,and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.17 Fruitless and wasteful expenditure

Fruitless expenditure as defined in section 1 of the PFMA as expenditure which was made in vain and would have beenavoided had reasonable care been exercised.

The words in vain as contained in the definition of fruitless and wasteful refers to a transaction, event or condition which wasundertaken without value or substance and which did not yield any desired results or outcome. Reasonable care meansapplying due diligence (careful application, attentiveness, caution) to ensure that the probability of a transaction, event orcondition not being achieved as planned is being managed to an acceptable level.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financialperformance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature ofthe expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.18 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred incontravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.


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Accounting Policies

1.18 Irregular expenditure (continued)

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMArequires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year endand/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditureregister. In such an instance, no further action is also required with the exception of updating the note to the financialstatements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is beingawaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception ofupdating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year,the register and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by theNational Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability forthe irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law.Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, theaccounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevantnote to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregularexpenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against therelevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordinglyin the irregular expenditure register.

1.19 Conditional grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the NLSAhas complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria,conditions or obligations have not been met, a liability is recognised.

1.20 Budget information

General purpose financial reporting by NLSA shall provide information on whether resources were obtained and used inaccordance with the legally adopted budget.

The approved budget is prepared on a accrual basis and presented by economic classification linked to performanceoutcome objectives.

The approved budget covers the fiscal period from 01-Apr-15 to 31-Mar-16.

Comparative information is not required.

1.21 Related parties

The NLSA operates in an economic sector currently dominated by entities directly or indirectly owned by the South AfricanGovernment. As a consequence of the constitutional independence of the three spheres of government in South Africa, onlyentities within the national sphere of government and reporting to Department of Arts and Culture are considered to berelated parties.

Management are those persons responsible for planning, directing and controlling the activities of the NLSA, includingthose charged with the governance of the NLSA in accordance with legislation, in instances where they are required toperform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, orbe influenced by, that management in their dealings with the NLSA.

1.22 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and thedate when the financial statements are authorised for issue. Two types of events can be identified:


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Accounting Policies

1.22 Events after reporting date (continued) those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date);

and those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting

date).

The NLSA will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date oncethe event occurred.

The NLSA will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannotbe made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of userstaken on the basis of the financial statements.


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Notes to the Annual Financial StatementsFigures in Rand 2016 2015

2. New standards and interpretations

2.1 Standards and interpretations not yet effective

The following standards and interpretations have been published and are mandatory for the NLSA’s accounting periodsbeginning on or after April 01, 2016 or later periods:

Standard/ Interpretation: Effective date:Years beginning on orafter

Expected impact:

GRAP 20: Related parties April 01, 2016 The adoption of thisstandard is not expected toimpact on the results of theentity, but may result inmore disclosure than iscurrently provided in theannual financialstatements.

GRAP32: Service Concession Arrangements: Grantor April 01, 2016 The adoption of thisstandard is unlikely to havea material impact.

GRAP108: Statutory Receivables April 01, 2016 The adoption of thisstandard is unlikely to havea material impact.

IGRAP17: Service Concession Arrangements where aGrantor Controls a Significant Residual Interest in an Asset

April 01, 2016 The adoption of thisstandard is unlikely to havea material impact.

DIRECTIVE 11: Changes in measurement bases followingthe initial adoption of Standards of GRAP

April 01, 2016 The adoption of thisstandard is unlikely to havea material impact.

3. Bequest related investments

Medium to Long-term Investments

Price per share as at 31 March 2016.SA Reserve Bank200 shares at R2.00 per share (2015: 200 shares at R1.00 per share)

400 200

4. Receivables from exchange transactions

Trade debtors 611,770 591,282Other receivables 55,000 7,483Accrued interest 102,945 10,265Personnel debtors 126,526 173,223

896,241 782,253

Credit quality of trade and other receivables

The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference tohistorical information about counterparty default rates.

None of the financial assets that are fully performing have been renegotiated in the last year. The entity's exposure to creditand currency risks related to trade and other receivables are disclosed in note 31.

Fair value of trade and other receivables

The fair value of trade and other receivables (at initial recognition) approximates the invoice amounts related to thesereceivables.


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5. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 15,042 7,022Bank balances 1,300,467 529,424Short-term fixed deposits 43,491,662 29,267,482Call deposits 1,842,658 288,505Bank balance - Mzansi Libraries Online (note 27) 81,135,815 25,269,340

127,785,644 55,361,773

Bankers: ABSA and Standard Bank.The bank balances increase from previous year due to the R64 million that was received towards the end of the financialyear for Mzansi Libraries Online projects.

6. Property, plant and equipment

2016 2015

Cost /Valuation

Accumulateddepreciation

andaccumulatedimpairment

Carrying value Cost /Valuation

Accumulateddepreciation


Carrying value

Plant and machinery 15,581,642 (1,994,511) 13,587,131 15,581,642 (1,683,678) 13,897,964Furniture and fixtures 7,822,292 (3,310,397) 4,511,895 7,833,185 (2,793,737) 5,039,448Motor vehicles 737,556 (480,800) 256,756 842,556 (520,233) 322,323Office equipment 9,211,019 (5,198,877) 4,012,142 9,028,654 (4,528,568) 4,500,086Computer equipment 8,091,898 (3,683,204) 4,408,694 8,611,230 (3,843,961) 4,767,269Leasehold improvements 2,318,643 (235,078) 2,083,565 2,318,643 (141,983) 2,176,660

Total 43,763,050 (14,902,867) 28,860,183 44,215,910 (13,512,160) 30,703,750

Reconciliation of property, plant and equipment - 2016

Openingbalance

Additions Disposals Depreciation Total

Plant and machinery 13,897,964 - - (310,833) 13,587,131Furniture and fixtures 5,039,448 - (5,485) (522,068) 4,511,895Motor vehicles 322,323 - (10,499) (55,068) 256,756Office equipment 4,500,086 411,868 (13,336) (886,476) 4,012,142Computer equipment 4,767,269 1,010,268 (339,927) (1,028,916) 4,408,694Leasehold improvements 2,176,660 - - (93,095) 2,083,565

30,703,750 1,422,136 (369,247) (2,896,456) 28,860,183

Reconciliation of property, plant and equipment - 2015

Openingbalance

Additions Disposals Depreciation Total

Plant and machinery 14,208,797 - - (310,833) 13,897,964Furniture and fixtures 5,546,851 21,022 (3,665) (524,760) 5,039,448Motor vehicles 398,153 - - (75,830) 322,323Office equipment 5,460,182 129,704 (26,618) (1,063,182) 4,500,086Computer equipment 5,091,864 648,161 (13,577) (959,179) 4,767,269Leasehold improvements 2,269,755 - - (93,095) 2,176,660

32,975,602 798,887 (43,860) (3,026,879) 30,703,750


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6. Property, plant and equipment (continued)

Proceeds received for disposal on property, plant and equipment – included in operating profit.

Computer equipment 66,120 7,483

7. Intangible assets

2016 2015

Cost /Valuation

Accumulatedamortisation



Accumulatedamortisation


Carrying value

Computer software 518,221 - 518,221 518,221 - 518,221

Reconciliation of intangible assets - 2016

Openingbalance

Total

Computer software 518,221 518,221

Reconciliation of intangible assets - 2015

Openingbalance

Total

Computer software 518,221 518,221

8. Heritage assets

2016 2015

Cost /Valuation

Accumulatedimpairment

losses


Accumulatedimpairment

losses

Carrying value

Paintings and artworks 379,559 - 379,559 379,559 - 379,559Library collections - Purchased 5,428,010 - 5,428,010 4,007,235 - 4,007,235Legal deposit 6,916,556 - 6,916,556 5,149,007 - 5,149,007

Total 12,724,125 - 12,724,125 9,535,801 - 9,535,801

Reconciliation of heritage assets 2016

Openingbalance

Additions Total

Paintings and artworks 379,559 - 379,559Library collections - Purchased 4,007,235 1,420,830 5,428,010Legal deposits 5,149,007 1,767,549 6,916,556

9,535,801 3,188,379 12,724,125


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8. Heritage assets (continued)

Reconciliation of heritage assets 2015

Openingbalance

Additions Total

Paintings and artworks 379,559 - 379,559Library collections - Purchased 2,528,857 1,478,378 4,007,235Legal deposits 3,653,747 1,495,260 5,149,007

6,562,163 2,973,638 9,535,801

Valuation of legal deposit items acquired between 1 April 2012 - 31 March 2016

Heritage assets acquired through legal deposits are measured at estimated fair values in the statement of financial positionbased on prices obtained from publishers and writers and other sources of legal deposits, which are depositing with theNational Library. The weighted average costs method was applied in determining the average unit values per item for theperiod 1 April 2012 – 31 March 2016, for items that did not have readily obtainable prices.

The valuation was not performed by an independent valuer, independent data utilised was collected by the NLSA for atwelve month period, which period serves as a base year. The discount rate applied to reverse the effects of the time valueof money represents the CPI as reported by Statistics South Africa.

VAluation method was applied with due regard to the following conditions:- Assumptions applied are valid only within the relevant time period- The collection combination via legal deposits remain constant within the relevant range, with an acceptance of aninsignificant variation- Costs/ Selling prices are mainly varied by consumer inflation- Current year prices (2015/16) represents the base year

9. Other financial assets

Designated at fair valueUnlisted shares held at Sabinet Online Ltd1,000,000 shares at R5.10 per share (2015: R4.21 per share)

5,100,000 4,210,000

5,100,000 4,210,000

Non-current assetsDesignated at fair value 5,100,000 4,210,000

Fair value information and reconciliation

Information

The fair value of the financial assets was determined as follows:- The fair values on listed investments are based on current quoted market value of each individual share. Fair values aredetermined annually at 'statement of financial position' date.

Disclosure is required of a fair value hierarchy which reflects the significance of the inputs used to make the measurements.The fair value hierarchy have the following levels:

Level 1 represents those assets which are measured using unadjusted quoted prices in active markets for identical assets.

Level 2 applies inputs other than quoted prices that are observable for the assets either directly (i.e. as prices) or indirectly(i.e. derived from prices).

Level 3 applies inputs which are not based on observable market data.

The entity has not reclassified any financial assets from cost, or amortised cost to fair value; or from fair value to cost; oramortised cost during the current year or prior year.


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9. Other financial assets (continued)

Reconciliation of financial assets measured in level 1

Reconciliation of financial assets measured in level 1 - 2016

Openingbalance

Gains or lossesin surplus or

deficit

Closingbalance

Listed shares 4,210,000 890,000 5,100,000

Reconciliation of financial assets measured in level 1 - 2015

Openingbalance

Gains or lossesin surplus or

deficit

Closingbalance

Listed shares 3,750,000 460,000 4,210,000

10. Payables from exchange transactions

Trade payables 3,797,876 3,008,108Other payables 143,322 1,314,311Sundry creditors 451,102 696,978Accruals 453,673 386,182

4,845,973 5,405,579

Creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The averagecredit period taken is less than 30 days.

11. Post Employment Benefit Obligations

Defined Benefit Plan

Post Retirement Medical Aid Plan

The healthcare benefits that the National Library of South Africa gives to its employees are provided by two medical schemes,namely Discovery Health and Bonitas. On 31 March 2016 the membership of the fund was 77 (2015: 85) permanent employeesand 44 (2015: 45) retired employees, a total of 121 (2015: 130) employees. One Pangea Financial conducted a valuation of thepost-retirement liability on 31 March 2016 and 31 March 2015, taking into consideration the current service cost, interest costsand benefits paid.

At present, this liability does not have an impact on the going concern, However, in the highly unlikely event that all the library'semployees go on retirement at once, the Library might not be able to settle this liability without the assistance of theDepartment of Arts and Culture.

The amounts recognised in the statement of financial position are as follows:

Carrying valuePresent value of the defined benefit obligation-wholly unfunded (33,648,275) (30,373,333)

Non-current liabilities (32,170,815) (29,063,189)Current liabilities (1,477,460) (1,310,144)

(33,648,275) (30,373,333)


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11. Post Employment Benefit Obligations (continued)

Changes in the present value of the defined benefit obligation are as follows:

Opening balance 30,373,333 26,545,318Current service cost 952,488 864,914Interest costs 2,451,757 2,429,684Benefits paid (1,358,201) (1,174,304)Actuarial (gain)/loss 1,228,898 1,707,721

33,648,275 30,373,333

Key assumptions used

Assumptions used at the reporting date:

Discount rates used %10.15 %8.25Health care cost inflation %9.15 %7.42Real rate of return %0.92 %0.77

Assumptions

Assumed healthcare cost trends rates have a significant effect on the amounts recognised in surplus or deficit. A onepercentage point change in assumed healthcare cost trends rates would have the following effects:

`

Effect on the aggregate of the service cost and interest cost - 1% increase (736,281) (595,048)Effect on the aggregate of the service cost and interest cost - 1% decrease 599,242 479,789

12. Deferred income - Grants received

Unspent conditional grants and receipts comprises of:

Deferred income comprised Government and other grants received, to berecognised in future accounting periods:Income related grants 103,712,042 37,789,936

Non-current liabilities - 4,048,191Current liabilities 103,712,042 33,741,745

103,712,042 37,789,936

See note 17 for reconciliation of grants.

13. Taxation

No provision was made for normal income tax as no liability is anticipated after taking into account that the entity isincorporated not for gain and established by the NLSA Act, Act No. 92 of 1998. The entity is exempted from income tax interms of section 10(1)(cA)(i)(bb) of the Income Tax Act 58 of 1962.

14. Revenue

Government grant related to income represents transfer payment received from theDepartment of Arts and Culture as 100% subsidy for carrying out normal businessoperations of the NLSA

75,716,000 72,387,000

Deferred income realised 34,641,428 10,695,518Other income 2,712,266 3,655,920Interest received 5,032,097 3,289,028Gains from legal deposits 1,767,549 1,495,260

119,869,340 91,522,726


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14. Revenue (continued)

The amount included in revenue arising from exchanges of goods or servicesare as follows:Other income 2,712,266 3,655,920Interest received - investment 5,032,097 3,289,028

7,744,363 6,944,948

The amount included in revenue arising from non-exchange transactions is asfollows:Transfer revenueGovernment grant 75,716,000 72,387,000Gains from legal deposits 1,767,549 1,495,260Deferred income realised 34,641,428 10,695,518

112,124,977 84,577,778

15. Gains from legal deposits

Gains from legal deposits 1,767,549 1,495,260

Gains realised from legal deposits collection represents the equivalents value derived by the publisher or writters depositingwith the National Library.

16. Other income

Internet hosting income 386,077 371,168Sponsorships 300,000 -Royalties received 192,144 98,616Parking and venue hire 771,798 942,333Salaries and bursaries recoveries 100,350 123,898Dividends received 128,952 128,199Bibliographic records uploads 282,521 519,272Interlending income 160,525 48,096Printing, copies, tenders and other sales 388,816 611,231De-acidification income 1,083 813,107

2,712,266 3,655,920

Deferred income realisedDAC Conditional grants 18,072,468 6,147,663MLO Conditional grants 16,548,218 4,547,855National Lotteries Commission grant 20,743 -

34,641,429 10,695,518

17. Government grants and conditional grants

Government grant 75,716,000 72,387,000


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17. Government grants and conditional grants (continued)

Conditional grants

Mzansi Libraries Online

Balance unspent at beginning of year 22,367,313 26,914,631Current-year receipts 70,518,541 -Conditions met - transferred to revenue (expenses) (16,477,825) (4,371,313)Conditions met - transferred to revenue (assets purchased) (70,393) (176,005)

76,337,636 22,367,313

The National Library of South Africa (NLSA) received a two-year planning grant in support of a pilot project that focuses onstrengthening local communities through the provision of access to information, technologies and relevant training in 27selected public libraries in South Africa as a precursor to a national large-scale implementation plan.

After the success of the planning grant, NLSA has received further R63 million Rand for full implementation to 667 librariesaccross the country. The project is planned for the next two and half years For detailed breakdown on expenditure, refer to note 18.

DAC Conditional Grant

Balance unspent at beginning of year 15,423,157 9,880,821Current-year receipts 26,145,000 11,690,000Conditions met - transferred to revenue (expenses) (17,941,292) (5,624,488)Conditions met - transferred to revenue (assets) (429,495) (523,176)

23,197,370 15,423,157

The DAC conditional grants includes the Community Libraries grant, the DAC Shelving grant and DAC Capital Works

National Lottery Commission - Digitisation project grant

Current-year receipts 3,900,000 -Conditions met - transferred to revenue (20,743) -

3,879,257 -

NLSA received a grant from the National Lottery Commission towards the newspaper digitisation project.


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18. General expenses

Advertising 158,760 359,289Bank charges 96,847 62,354Consumables 24,306 49,257Insurance 613,537 496,418Conferences and seminars 93,738 105,512Hosting of events 63,401 95,486Computer expenses 26,805 22,656Periodicals and serials 439,850 474,207Motor vehicle expenses 160,684 172,668Postage and courier 452,519 526,201Printing and stationery 240,088 193,906Protective clothing 10,326 842NLSA funded special projects 845,014 798,740Stationery 363,850 456,043Telephone expenses 1,592,098 1,984,371Training 19,825 16,437Travel - local 1,388,101 1,017,243Travel - overseas 223,057 545,059Rentals 78,988 75,776Water & electricity 14,479 8,735Other services (incl commercial binding) 36,527 593,631

6,942,800 8,054,831

19. Special Projects

19.1 DAC Conditional GrantMarketing and communication 2,990,901 1,545,228Preservation training 318,419 273,216Publishing and promotions 4,230,915 1,263,336RDA 148,469 310,908ICT support for libraries in the Eastern Cape 5,863,371 274,554Project management (personnel costs) 954,458 595,156Legal deposit and OPD 2,545 1,600Transformation charter - 87,432Shelving project 830,109 120,125Capital works 806,330 1,152,933

16,145,517 5,624,488

19.2 Mzansi Libraries OnlineTravel 1,537,669 697,827Advertising and promotions 396,395 394,241Computer expenses 7,265,125 544,468Hosting of events and seminars 89,402 10,189Consumables 77,642 61,170Personnel costs 3,136,858 2,314,369Bank charges 23,727 14,070Website development and maintenance 266,500 -Training for other libraries 2,920,484 -Consulting 635,463 331,224internal audit fees 101,289 -Postage and courier 33,262 3,755

16,483,816 4,371,313

19.3 National Lottery Commission grantTraining 20,743 -

20,743 -


99



20. Operating surplus

Operating surplus for the year is stated after accounting for the following:

Depreciation on property, plant and equipment 2,896,571 3,026,880Coupons realised to income 241,521 -Debt impairment - 130,703

21. Employee related costs

Bonus 3,188,354 3,137,464Long service awards 85,000 -Bursaries 210,657 223,014Cellphones 209,587 224,686Contract workers 1,783,993 2,216,429Housing allowance 1,716,300 1,840,700Medical aid contributions 3,779,477 4,644,596Overtime 491,042 418,846Provident fund contributions 5,612,313 5,097,683Provision for leave & Leave payout (30,982) 751,113Salaries 35,521,394 33,540,113Staff development 325,456 259,316Travel and car allowances 772,077 654,395Unemployment insurance fund 273,450 277,477Workmens compensation(including service costs as a result of post employmentobligation)

1,046,219 70,832

54,984,337 53,356,664

22. Investment revenue

Interest revenueBank 2,757,892 1,788,995Bank - Mzansi Libraries Online 2,274,205 1,500,033

5,032,097 3,289,028

23.1 Auditors' remuneration

External audit fees 1,143,489 1,169,416Internal audit fees 945,114 11,309

2,088,603 1,180,725

23.2 Contracts, Consulting and professional fees

Cleaning 1,796,605 1,930,202Security 3,456,487 3,138,164Consulting and professional fees 613,828 250,878Board, audit comm fees and travel expenses 478,664 368,990Network maintenance & service providers 413,339 880,687

6,758,923 6,568,921


100



24. Cash (used in) / generated from operations

Surplus 6,199,966 1,965,906Adjustments for:Depreciation and amortisation 2,896,571 3,026,880Deficit on disposal of assets 303,012 36,377Fair value adjustments (890,200) (458,100)Debt impairment - 130,703Movements in retirement benefit assets and liabilities 3,274,942 3,828,015Movements in provisions (926,087) (290,484)Gains from legal deposits (1,767,549) (1,495,260)Other non-cash items - 130,703Changes in working capital:Receivables from exchange transactions (113,935) (304,344)Bad debts - (130,703)Prepayments 861,497 (898,713)Payables from exchange transactions (559,606) 2,173,069Deferred income - Grants received 65,922,106 994,484

75,200,717 8,708,533

25. Commitments

Authorised capital expenditure

The following commitments were made during the financial year. Services andgoods were secured but not yet rendered and delivered as at the end of thefinancial year: Audit & professional expenses (internal and external) 1,820,652 2,838,167 Book Purchases (overseas orders) 11,776 150,482 Tenders awarded 18,095,650 7,008,813

19,928,078 9,997,462

The following commitments were approved but not yet contracted during thefinancial year. : Tenders awarded 1,147,319 26,939,670

Total capital commitmentsAlready contracted for but not provided 19,928,078 9,997,462Approved and not yet contracted 1,147,319 26,939,670

21,075,397 36,937,132

The NLSA has awarded a tender for insurance management to run from 01 April 2016 to 31 March 2018 and the nationalneeds assessment survey of public libraries for a period of between three to six months.

26. Related parties

`

Relationships

Shareholder: Sabinet Online Ltd Refer to 25.1Controlling National Department: Department of Arts and Culture Refer to 25.2

26.1 Related party balances

Other Financial AssetsShares held at Sabinet Online Ltd 5,100,000 4,210,000


101



26. Related parties (continued)

26.2 Related party transactions

The Department of Arts and Culture provides 100% funding to the National Library ofSA for its activities.

(75,716,000) (72,387,000)

Dividends and other income received from Sabinet Online Ltd (511,473) (647,471)Subscriptions and other expenses paid to Sabinet 1,853,638 1,612,597

27. Mzansi Libraries Online

Mzanzi Libraries Online ProjectOpening Balance 25,269,340 27,680,518Grant received 70,518,541 -Interest earned as at 31 March 2,274,205 1,500,036Less: Expenses paid: 31 March (16,926,271) (3,911,214)

Balance as per note 5 81,135,815 25,269,340

After the success of the pilot project with the 27 libraries, The Bill and Melinda Foundation has granted the NLSA furtherfunding to extend the projetcts across the nine provinces. 667 beneficiary libraries have been identified and the project waslaunched on 31 March 2016 and is expected to run for the next two and half years.

28. Key Management Personnel Compensation

Executive

2016

Emoluments Bonus Pension orprovident fund

Other benefits* Total

Chief Executive Officer 1,321,277 25,412 89,008 33,457 1,469,154Executive Director: Core Programmes 919,253 - 71,836 18,266 1,009,355Chief Financial Officer ^ 530,131 - 61,637 76,328 668,096Chief Financial Officer ^ 287,981 - 22,343 595 310,919Director : Centre for the Book 700,061 55,051 86,888 1,785 843,785Director : Preservation Services 786,164 16,078 71,073 38,003 911,318Director: Bibliographic Services & CollectionsManagement

666,542 31,210 63,917 33,711 795,380

Director : Information Access & DocumentSupply

612,689 31,900 75,252 14,831 734,672

Director : Corporate & International Relations 341,515 39,441 41,640 268,360 690,956Executive Director: Corporate services 940,089 15,629 105,816 1,785 1,063,319Chief Information Officer 122,651 - - 297 122,948

7,228,353 214,721 689,410 487,418 8,619,902


102



28. Key Management Personnel Compensation (continued)

2015

Emoluments Bonus Pension orprovident fund

Other benefits* Total

Chief Executive Officer 1,145,665 - 26,602 72,643 1,244,910Executive Director: Core programmes 515,068 58,770 67,316 515,625 1,156,779Chief Financial Officer 59,552 44,919 8,252 185,510 298,233Chief Financial Officer 716,703 - 60,218 15,139 792,060Director : Centre for the Book 612,872 37,450 80,690 1,785 732,797Director : Preservation Services 666,602 - 69,589 34,809 771,000Director : Bibliographic Services &Collections Management

95,330 - 13,760 6,632 115,722

Director : Information Access & DocumentSupply

283,413 - 19,222 7,424 310,059

Director : Corporate & International Relations 539,930 36,747 78,960 43,697 699,334Executive Director : Corporate Services 678,160 - 83,245 1,784 763,189

5,313,295 177,886 507,854 885,048 6,884,083

* Other benefits comprise UIF contributions, medical and termination benefits

^ - The Chief Financial Officer, Ms Malapane resigned October 2015.

^ - The Chief Financial Officer, Mr Mashabane appointed December 2015.

Non-executive

2016 (Board and Audit Committee)

Members' fees Travel TotalMs E.R Tise (Former Chairperson of the Board) # 14,140 - 14,140Mr P Coates ^ 6,956 230 7,186Mr L.A.O Ebrahim # 20,951 3,134 24,085Ms R. Kalidass # 11,368 7,443 18,811Dr. W.P Rowland # 15,760 2,767 18,527Dr. D.S. Selematsela ! 18,666 3,384 22,050Prof. L.J. Teffo ! 26,390 6,072 32,462Ms N.E. Dick (Board member, Audit Comm Member & Finance CommitteeChairperson)

6,018 702 6,720

Mr J.R. Morakile 21,672 9,632 31,304Mr K.D. Madumo * - 8,022 8,022Ms S.A. Kunene (Board member & finance committee member) 2,088 - 2,088Ms. MM Nkomo (Board member & Audit Committee member ) 18,416 3,335 21,751Ms S. Makhathini (Audit Committee member) 4,592 787 5,379Mr P. Nel (Audit Committee member) # - 1,849 1,849Mr N. Cronje (Audit Committee member) 9,504 3,413 12,917Mr TTC Dlamini( Board chairperson) 3,408 - 3,408Dr B Mbambo-Thata (Board member)# 2,088 53 2,141Mrs C Bertram (Board member) 2,088 82 2,170Prof M Nassimbeni(Board member) 5,880 1,470 7,350

189,985 52,375 242,360


103



28. Key Management Personnel Compensation (continued)

2015 (Board and Audit Committee)

Members' fees Travel TotalMs E.R Tise (Chairperson of the Board) 18,864 - 18,864Mr P. Coates 6,552 - 6,552Mr L.A.O Ebrahim 29,578 2,864 32,442Ms R. Kalidass 9,792 - 9,792Dr. W.P Rowland 19,453 1,302 20,755Dr. D.S. Selematsela 13,720 1,727 15,447Prof. L.J. Teffo 20,032 991 21,023Mr J.R. Morakile 17,017 4,762 21,779Mr K.P. Madumo * - 2,280 2,280Ms MM Nkomo (Audit Committee Chair) 21,504 1,441 22,945Mr P. Nel (Audit Comm) 3,084 1,061 4,145Mr. N. Cronje (Audit Comm) 13,056 1,789 14,845

172,652 18,217 190,869

Notes

* - Mr KD Madumo is a public sector employee therefore the NLSA only re-imburses his cost of travel.# - The three year term ended in 30 September 2015! - Reappointed for further three years@ - Newly appointed at 01 November 2015

29. Prior period errors

OCLC Income Income earned from SABINET Online through OCLC records uploads was omitted in the prior as it was only received in thecurrent year, the correcting entry together with the corresponding debtor has been raised in the 2015 financial period.

Property, plant and equipmentAn error in judgement was made in the determination of the useful lives for plant and machinery, the depreciable life wasincorrectly determined at 10 years instead of 50 years and the leasehold hold improvemet at 10 years instead of 25 years.

An incorrect allocation of useful lives to office equipment, computer equipment, motor vehicles and furniture and fixtures inthe asset register resulted in a principle error in the calculation of depreciation for the office equipment and furniture andfixtures.

The cumulative error at the beginning of 2014/2015 of R11 748 539, was a result of incorrect accelerated depreciation onPPE, while depreciation charge for the same period was restated by R115 452.32

Items of heritage assets with an indefinite useful lives were erroneously depreciated, an amount of R249 199.84 wasincorrectly realised into the surplus and deficit.

Library collections acquired through legal deposit were erroneously ommitted in the statement of financial position. Theopening balance has been restated by R5 149 007.

Costs related to the acquisition of software with the annual renewal licence were incorrectly capitalised and realised intosurplus and deficit over a period of four years, the remaining book value of R64 907.44 has been realised into surplus anddeficit in the 2014/2015 financial period to correct the error. Intangible assets with an indefinite life were erroneouslyarmortised. The prior year amortisation of R475 530.47(Accumulated amortisation R448 555.16, armotisation expense R26975.31) was reversed.

Proceeds from disposal of assets were omitted in previous financial year.

The correction of the errors above resulted to adjustments as follows:


104



29. Prior period errors (continued)

Statement of financial positionIncrease in receivables (OCLC income) - 373,706increase in receivables (Proceeds from scrapping of computer equipment) - 7,483Increase in heritage assets - 5,528,566Decrease in deferred income liability - (216,662)Increase in accumulated surplus ( adjustment to deferred income liability) - 216,662Increase in accumulated surplus(reclassification of assets and correction in usefullives estimates)

- 12,604,948

Decrease in accumulated amortisation - 475,831Increase in property plant and equipment - 11,748,539Increase in non distributable reserves (gains from legal deposits) - 3,653,747

Statement of Financial PerformanceIncrease in gains from legal deposits - 1,495,260Increase in other income (OCLC income) - 373,706Decrease in deficit on disposal of assets - 86,143Increase in depreciation and amortisation - 88,477

30. Comparative figures

Certain comparative figures have been restated.

31. Risk management

Liquidity risk

Liquidity risk is the risk that the Library would not be able to meet its financial obligations as they fall due. The Librarymanages liquidity risk through the compilation and monitoring of cash flow forecasts as well as ensuring that there areadequate banking facilities.The maturity profiles of the financial instruments are summarised as follows:

At March 31, 2016 Less than 1year

Between 1 and2 years


Over 5 years

Trade and other payables 4,845,973 - - -Post-retirement medical aid obligation 1,477,460 - - 32,170,815

At March 31, 2015 Less than 1year



Over 5 years

Trade and other payables 5,405,579 - - -Post-retirement medical aid obligation 1,310,144 - - 29,063,189

Interest rate risk

The NLSA’s interest rate risk arises from borrowings and cash held in the bank. Borrowings and cash at variable ratesexpose the group to cash flow interest rate risk. Borrowings and cash at fixed rates expose the NLSA to fair value interestrate risk.

The Entity's Interest rate profile of interest-bearing financial instruments at 31 March 2016 was:

`

Current interestrate

Due in lessthan a year

Due in one totwo years

Due in two tothree years

Due in three tofour years

Total

Short term fixed deposits %7.00 108,785,874 - - - 108,785,874

The Entity's interest rate profile of interest-bearing financial instruments at 31 March 2015 was:

`

Current interestrate

Due in lessthan a year

Due in one totwo years

Due in two tothree years

Due after threeyears

Total

Short term fixed deposits %5.75 55,361,773 - - - 55,361,773


105



31. Risk management (continued)

The following table shows the sensitivity of the net results for the year to a reasonably possible change in interest rates of50 basis points while all other variables are held constant:

Profit and loss -50bp (543,930) (276,788)Profit and loss +50bp 543,930 276,788

Credit risk

At 31 March 2016, the NLSA considered if there is any significant concentration of credit risk which had not been insured oradequately provided for.

Potential concentrations of credit risk consist mainly of cash and cash equivalents and trade receivables.

The Library limits its counterparty exposures from its money market investment operations by only dealing with well-established financial institutions of high quality credit standing. The credit exposure to any one counterparty is managed bymonitoring transactions.

Trade and other receivables are shown net of impairment. In the current year no impairment occurred on trade receivables.

The Library is exposed to credit related losses in the event of non-performance by counterparties. The Library continuallymonitors its positions and the credit rating of its counterparties and limits the extent to which it enters into transactions withany one party.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk atyear end were as follows:

`

NLSA - 20160 - 12 months

R

NLSA - 20150 - 12 months

RTrade and other receivables 896,241 782,253Cash and cash equivalents 127,785,644 55,361,773

Fair value of financial instruments

In the opinion of management the carrying value of financial instruments approximates their fair value except for availablefor sale investments.

Financial instruments not traded in an active market

At 31 March 2016 the carrying amounts of cash and short term deposits, accounts receivable, investments (except foravailable for sale investments), accounts payable and short term borrowings approximated their fair values due to the shortterm maturities of these assets and liabilities.

Financial instruments traded in an active marketFinancial instruments traded in an organised financial market are measured at the current quoted market price, adjusted forany transaction costs necessary to realise the assets or settle the liabilities.


106



31. Risk management (continued)

Foreign exchange risk

Foreign currency exposures arise from the purchase of books. Forward exchange contracts are not utilised to manageexposures relating to confirmed commitments.

Forward exchange contracts - recognised transactionsNo forward exchange contracts were entered into during the financial year ended 31 March 2016

Uncovered foreign exchange exposureAt year end the Library was not exposed to any material foreign currency denominated assets and liabilities for which noforward cover had been taken out.

Sensitivity analysisAs the Library has no significant foreign currency exposure at year end, the effect of a 1% strengthening or weakening ofthe Rand against the foreign currencies at balance sheet date is not considered material.

32. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.

33. Irregular expenditure

Opening balance 3,138,745 1,311,390Irregular Expenditure - current year 9,423,744 1,827,355Plus: Irregular expenditure incurred in the prior year identified in the current year 625,124 -Less: Amounts condoned (10,026,868) -

3,160,745 3,138,745

Analysis of expenditure awaiting condonation

Irregularities on ICT procurement 1,249,384 1,249,384Goods & services were procured without inviting competitive quotes 126,584 30,000Three quotations were not obtained and the supplier was not registered on the NLSAsupplier database

28,067 50,252

Three quotations were not obtained for the acquisitions, and deviation was notapproved

656,945 502,140

Compliance documents(i.e SBD forms, Tax clearance certificates, BBBEE Certificate)were not obtained

295,363 238,963

Expenditure transactions was not approved by the appropriate delegation 153,039 -No evidence that point scoring system was applied, the selected suplier did not submitthe lowest bid

26,239 10,882

Tender process was not followed for procurement exceeding R500 000 - 1,057,125Prior year irregular expenditure identified during the year 625,124 -

3,160,745 3,138,746

Details of irregular expenditure – current year

Non compliance with the SCM policy of the NLSA, the delegation ofauthority and the Treasury regulations

10,048,868


107



33. Irregular expenditure (continued)

Details of irregular expenditure condonedCondoned by (condoning authority)

Non compliance with the SCM policy of the NLSAand the delegation of authority

Accounting Authority 7,610,979

SCM related costs: Non compliance with NationalTreasury regulations

National Treasury 2,415,889

10,026,868

34. Fruitless and wasteful expenditure

1. Travel by BAC member from Cape Town to Pretoria - 11,1572. Interest costs 7,000 5,6903. Re-advertisement of tenders - 41,484

7,000 58,331

1. The arranged meeting did not take place as SCM did not prepare proper documents for discussion. BAC membertravelled from Cape Town .

2. Interest was charged by SARS as a result of the re-opening of the EMP201 (Employee tax declaration form).

3.Two tenders were re-advertised by the NLSA. The first valued at R29,241 was as a result of a confusion between theEastern Cape provincial department of Treasury and Arts and Culture. The other tender valued at R12,243 was re-adverstised as a result of incorrect specifications in the original tender.

35. Events after the reporting date

The NLSA subsequent to year end, obtained approval from treasury for the condonement of irregular expenditure incurerdin the previous years. The event is considered by management as an adjusting event. The irregular expenditure note wasadjusted by R2 415 889.


108



36. Provisions

Reconciliation of provisions - 2016

OpeningBalance

Utilised duringthe year

Total

Leave provision 5,101,643 (891,006) 4,210,637Service Bonus 1,227,178 (35,081) 1,192,097

6,328,821 (926,087) 5,402,734

Reconciliation of provisions - 2015

OpeningBalance

Utilised duringthe year

Total

Leave provision 5,337,970 (236,327) 5,101,643Service bonus 1,281,335 (54,157) 1,227,178

6,619,305 (290,484) 6,328,821

Employees' entitlement to annual leave and service bonus is recognised when it accrues to the employee. A provision ismade for the estimated liability for annual leave and service bonus due as a results of services rendered by employees upto reporting period.

37. Contingent Asset

As at 31 March 2016 , the National Libray was pursuing a labour court review application on a case against a formeremployee to have the legal dispute removed from the court roll with compensation to the National Library for legal costs.The estimated recoverable amount was R 59 057.50. The probability of the recovery was conditional to the ruling by thecourt on the matter.

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