purpose of the presentation vision and mission background and overview human resource matters...

• Purpose of the Presentation• Vision and Mission• Background and Overview• Human Resource Matters• Artistic Performance Highlights for the Year• Infrastructure / Capital Projects• Actual Versus Budget & Budget Versus Actual• Annual Report: Basis for qualified opinion by the Auditor General• Annual Report: Irregular, Fruitless and Wasteful Expenditure • Annual Report: Emphasis of Matters & Compliance with laws and

Regulations: • Council, Audit Committee, Internal Audit, Strategic Planning & Annual Performance Plan.

• Budgeting, Procurement, Contract and Asset Management.

• Transfer of Funds, Revenue and Expenditure Management.

• Institutional Challenges • Conclusion

PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 07 NOVEMBER 2012

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• To brief the Portfolio Committee on Arts and Culture on the overall performance of PACOFS during the 2011-2012 financial period.

• To provide an overview of the activities in response to the constitutional and legislative mandate and policies, programmes, corporate plans.

• To solicit the Portfolio Committee’s inputs on the strategic interventions that may be required to fulfill the constitutional and legislative mandate in order to achieve the vision and mission of the PACOFS.


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Vision

To be an ultimate professional performing arts destination.

Mission

Presentation of quality transformed performing arts.


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Councils

Previous Council’s term ended August 2011: - Chairperson – Ms. Janet Kay New Council appointed October 2011: - Chairperson – Mr. Rudolf Rashama New Council Activities: - Signing of Share Holder’s Compact with

the Minister of DAC- Mr. Paul Mashatile - Strategic Plan & Annual Performance Plan - Infrastructure Master Plan (Capital Works

Projects)PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 07 NOVEMBER 2012

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Staff Complement of 99 (57 Males and 42 Females).

Suspended CEO, Artistic Manager & Artistic Development Manager:

- The Council initiated a disciplinary hearing against the suspended CEO. He resigned.

- Artistic Manager’s disciplinary hearing has been finalized - Dismissal.

- Artistic Development Manager suspended and dismissed - CCMA.

Salary discrepancy project in progress (Appointment of Genesis Group).


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INTERNATIONAL PRODUCTIONS HOSTED AT PACOFS

Smokie (UK Band)

Chinese/Taiwanese Orchestra Gala Evening

PARTNERSHIPS / CO-PRODUCTIONS HOSTED AT PACOFS

Ms Free State Pageant

Dance Connection & Simply the Best

Andre the Hypnotist

Wielie Wielie Wallie

Amandla

Beauty and the Beast

IN-HOUSE / OWN PRODUCTIONS (SHOWS)

The Letter

The Passion of Christ & Houtkruis

Cell Number 4

Money MakerPACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 07 NOVEMBER 2012

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COMPLETED INFRASTRUCTURE PROJECTS

- Complex Roof - Stage Motorization Machinery - Lighting and Sound Systems

CURRENT INFRASTRUCTURE PROJECTS

Start date: July 2012 and end date: November 2012

Projects: - Sand Du Plessis – New Carpet - Office Renovations (Administration Block) - Fire and Smoke Detection System - Occupational Health and Safety - Upgrading of building to accommodate Disabled Persons (restrooms) - Workshop - New Roof and Insulation

FUTURE INFRASTRUCTURE PROJECTS

- Complex Air-conditioning R32m - Implementation of the Infrastructure Master Plan (Depending on availability of Funding from DAC)


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BUDGET VS. EXPENDITURE PER PROGRAMME: 2012-2013

ORIGINAL BUDGET

ADJUSTMENTS

CURRENT BUDGET

ACTUAL 1 ST QUARTER

ACTUAL 2ND QUARTER

TOTAL ACTUAL

R '000 R '000 R '000 R '000 R '000 R '000

Programme1/Administration

16 053

- 16 053 2 986 3 877 6 863

Programme2/Artistic Directorate

23 804

- 23 804 6 255 6 148 12 403

Programme3/ Technical Directorate

11 697

- 11 697 3 600 1 570 5 170

Total 51 554

-

51 554 12 841 11 595 24 436

Description 2012 Actual (R’000) 2012 Budget (R’000) 2012 Variance (R’000)

Total Revenue 39 920 42 584 (2 664)

Total Expenditure (45 992) (42 584) (3 408)

Surplus/(deficit) for the year

(6 072) - (6 072)

Opinion by the Auditor General Qualified Audit Opinion.

Basis for Qualified Audit Opinion PROPERTY, PLANT AND EQUIPMENT – GRAP17

The entity did not evaluate in all instances the residual values and useful lives of the assets at the reporting date in accordance with the Generally Recognized Accounting Practice 17.

Action Plan Management to appoint a qualified service provider to assist with the full

implementation of GRAP 17.

Management has advertised the posts of Finance Manager and Supply Chain Manager.


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Irregular, Fruitless and Wasteful Expenditure

PACOFS INCURRED IRREGULAR EXPENDITURE – R 3 355 792 ACTION PLAN: Filling of the vacant positions and the appointment of the Qualified Finance and Supply Chain

Managers in Current Financial Year. Management to seek the condonement on the matter from PACOFS Council.

PACOFS INCURRED FRUITLESS AND EXPENDITURE – R 1 293 026 ACTION PLAN: Council and Management instituted disciplinary hearings and an all suspension cases were

resolved by 2nd Quarter of 2012/13. Management to seek the condonement on the matter from PACOFS Council.

Internal Audit PACOFS FAILED TO ESTABLISH INTERNAL AUDIT FUNCTION

ACTION PLAN:

Management appointed Internal Audit Service Provider for a three year period 2012/13 to 2014/15: Ramabulana Management Services


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Procurement and Contract Management PACOFS AWARDED A CONTRACT TO A BIDDER THAT DID NOT SCORE HIGHEST

POINTS The appointment of the service provider was based on BBBEE. The appointed service

provider has the capacity as well as qualified personnel to execute the Project.

PACOFS APPOINTED A SERVICE PROVIDER BASED ON A DEVIATION Management to seek a condonement on this matter from Council .

Expenditure Management Implementation of ACCPAC Work-flow Financial Module for the monitoring of Budget vs.

Actual Expenditure to avoid the overspending.

Asset and Liability Management RECONCILIATION NOT PERFORMED ON A WEEKLY BASIS

Management procured a new financial system (ACCPAC) to improve the process of Asset Registering and Asset Management Reconciliation.


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Budget THE BUDGET FOR FINANCIAL YEAR (2011-2012) WAS OVERSPENT DUE TO THE

BUDGET NOT PROVIDING FOR THE DEPRECIATION. Management will budget for depreciation as per GRAP 17 requirement.

Leadership KEY POSITIONS BEING VACANT FOR A SIGNIFICANT PERIOD OF TIME.

ACTION PLAN:

Suspended CEO’s matter was resolved by Council in 2nd Quarter of 2012/13.

CEO resigned and the Council intends to appoint new CEO in the 3rd Quarter of 2012/13.

Financial and performance management THE BUDGET FOR FINANCIAL YEAR (2011-2012) WAS OVERSPENT DUE TO THE

BUDGET NOT PROVIDING FOR THE DEPRECIATION.

Management appointed an Internal Audit Firm to assist with the over sight, risk management and to strengthen the internal controls.

Management procured a new financial system (ACCPAC) to improve the process of bank & all reconciliation.

Governance Council resolved to appointed the CFO as an Acting CEO.


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Leadership (Appointment of CEO & Artistic Director)

Lack of Capacity (Finance & SCM Managers)

Personnel / Staff Costs (70%) Production Funding/Grants (In-House

Shows) Building & Maintenance Budget

(Ownership) Theatre / Stage Truck (Outreach

Programmes)PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 07 NOVEMBER 2012

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Thank You to All !!!


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purpose of the presentation vision and mission background and overview human resource matters...

Documents

overall performance

portfolio committees

suspended ceo

actualannual report

budget budget

expenditure management

audit committee

strategic interventions