ATC111101: Report Budgetary Review & Recommendation Report of Portfolio Committee on Arts & Culture on performance of Department of Arts and Culture for 2010/11 financial year
The Budgetary Review and Recommendation Report of the Portfolio Committee on Arts and Culture on the performance of the Department of Arts and Culture for the 2010/11 financial year, dated 1 November 2011
The Portfolio Committee on Arts and Culture, having assessed the performance of the Department of Arts and Culture for the 2010/11 financial year, reports as follows:
1.1 The role and mandate of the Committee
The role and mandate of the Committee is to:
· Consider the Budget Vote of the Department of Arts and Culture;
· Consider legislation referred to it;
· Exercise oversight over the Department of Arts and Culture and its statutory bodies; and
· Consider all matters referred to it in terms of legislation, the Rules of Parliament or resolutions of the House.
In terms of the Constitution of the Republic of South Africa, Portfolio Committees have a mandate to legislate, conduct oversight over the Executive and facilitate public participation.
Section 5 of the Money Bills Amendment Procedures and Related Matters Act No 9 of 2009 provides that:
· The National Assembly , through its Committees must annually assess the performance of each National Department
· Committees must annually submit Budgetary Review and Recommendation Reports for tabling in the National Assembly.
A Committee reporting to the National Assembly in terms of this section must submit its budgetary review and recommendation report after the adoption of the Appropriation Bill and prior to the adoption of the reports on the Medium Term Budget Policy Statements (MTBPS).
For the period under review, the Portfolio Committee on Arts and Culture, in exercising its oversight role, had interacted with the Department of Arts and Culture (DAC) and analyzed its 2010 to 2014 Strategic Plan, the 2010/2011 Annual Report of the Department, the Auditor- General’s Report, the State of the Nation Address, the 2010/2011 estimates of the National Expenditure and the Constitution of the Republic of South Africa.
1.2 The role and mandate of the Department of Arts and Culture
The Department of Arts and Culture is tasked to create an environment conducive for the growth, development and flowering of South Africa’s arts, culture and heritage landscape. Among its objectives are the improvement, re-orientation and expansion of the Arts and Culture sector to serve South Africa’s cultural needs.
The Vision of the Department of Arts and Culture is to develop and preserve South African culture to ensure social cohesion and nation building.
The mission of the Department of Arts and Culture is to:
· Develop and promote arts and culture in South Africa and mainstream its role in ????;
· Develop and promote the official languages of South Africa and enhance the linguistic diversity of the country;
· Improve economic and other development opportunities for South African arts and culture nationally and globally through mutually beneficial partnerships, thereby ensuring the sustainability of the sector;
· Develop and monitor the implementation of policy, legislation and strategic direction for the identification, conservation and promotion of cultural heritage; and
· Guide, sustain and develop the archival, heraldic and information resources of the nation to empower citizens through full and open access to these resources.
1.2.3 Constitutional and legislative mandate
The primary legislative mandate of the Department comes from Section 16(1) and Section 30 of the Constitution of the Republic of South Africa.
Section 16 (1) states that “Everyone has the right to freedom of expression, which includes:
a) Freedom of press and other media;
b) Freedom to receive or impact information or ideas;
c) Freedom of artistic creativity; and
d) Academic freedom and freedom of scientific research”, and
Section 30 states that “Everyone has the right to use language and to participate in the cultural life of their choice, but no one exercising these rights may do so in manners inconsistent with any of the provisions of the Bill of Rights”.
2. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES OF THE DEPARTMENT OF ARTS AND CULTURE (DAC)
Through arts, culture and heritage, the Department’s strategic plan seeks to serve South Africa’s wider artistic and cultural needs and contribute to economic growth, job creation, skills development, rural development, national reconciliation, nation building and social cohesion.
The following strategic focus areas are critical to the success of the Department:
- Coordinate and support the national strategic programmes by developing and reviewing policy and legislation and developing systems for monitoring and evaluation.
- Increase and facilitate access to and broader participation in arts and culture through policy formulation, legislation and equitable funding;
- Develop, promote and protect the 11 official languages through policy formulation, legislation and the implementation of the language policy in order to allow South Africans to realize their language rights;
- Increase the access and participation of grassroots arts practitioners in cultural industries economic activities through training, legislation and international opportunities;
- Ensure the transformation of the heritage landscape as a vehicle for nation-building and social cohesion, through the implementation of heritage policies and legislation; and
- Enable transparency and evidenced-based good governance of archives, records, published information, and the heraldic and symbolic inheritance of the nation through institutional management, regulation and development.
2.1 Strategic Priorities of the Department of Arts and Culture
· Promoting Arts and Culture for Social Cohesion
The Department supports the activities that form part of the broader government priorities. The celebration and commemoration of national days will continue to be used as platforms to promote the social, cultural and economic advancement of vulnerable groups. The Department will continue with community mobilization campaigns/dialogues to encourage communities to raise their concerns and to participate in decision-making to address those concerns.
- Promoting Linguistic Diversity
The Department continues to develop the official languages and promote linguistic diversity through strategic programmes as required by the Constitution and the National Language Policy Framework (NLPF). The Framework, implemented since 2003, has provided direction for language planning, translation and editing, terminology development and human language technologies. The Language Practitioners' Council Draft Bill to enact the establishment of the South African Language Practitioners’ Council is at an advanced stage. The South African Languages Draft Bill will be revisited by Cabinet.
- Supporting Cultural Industries
Through its support for creative industry, the Department aims to create jobs, and promote skills development for women and the youth. The Department will continue to support the establishment of sustainable SMMEs in the arts, culture and heritage sector with the intention of improving the standard of living within communities.
- Transforming the Heritage Sector
,The National Museum Policy currently being developed will ensure that funding to heritage institutions is objectively based on the current and future strategic needs of the sector. A National Policy on Intangible Cultural Heritage, developed in 2009, provides a comprehensive framework through which projects such as oral histories will be safeguarded and promoted.
The Department will continue to use Heritage Month to promote South Africa’s cultural diversity in areas such as poetry, dance and indigenous foods, and other forms of Living Heritage/Intangible Cultural Heritage. In addition, the Department is in the process of conducting an audit on Intangible Cultural Heritage in South Africa which, among other things, will result in the establishment of a register of Intangible Cultural Heritage in South Africa.
The Department of Arts and Culture has developed a National Policy on Intangible Cultural Heritage that would provide a comprehensive framework to safeguard and promote Intangible Cultural Heritage in South Africa and broad consultation with communities for inputs on the policy would be done.
- Archives, Heraldry and Libraries
The National Archives and Records Service continues to support and guide records and information management procedures across government to ensure that records of enduring value will be permanently preserved in the Archives.
Heraldic designs that reflect government imperatives, such as nation building and social cohesion, continue to be developed and registered. The designs are important for national identity and will be promoted through various activities as part of the build-up to the 2010 FIFA World Cup and beyond, including the Flag in Every School Project.
The transformation of the library sector will continue with the implementation of the Community Library Conditional Grant in 2010. The Department is also developing the South African Community Library and Information Services Draft Bill to ensure the advancement of technology in these libraries and further development so that they can be seen as institutions of knowledge consumption, entertainment and self-development, especially by young people. Community libraries need to be aligned with a system of introducing new publications. There is a need to promote a network and cooperation between community libraries and Intangible Cultural Heritage institutions such as museums, galleries and heritage sites
2.2 Measurable objectives of the Department of Arts and Culture
2.2.1 Programme 1: Administration
126.96.36.199 Coordination Monitoring and Evaluation
The Department failed to prepare the monitoring and evaluation report due to a delay in the finalisation of the Department’s quarterly expenditure reports.
The Department of Arts and Culture also had as one of its measurable objectives the coordination and integration of the Department of Arts and Culture activities with broad Government activities, but failed to do so and attributed this to the lack of dedicated resources (human and financial) in the Provinces to execute the necessary dialogue.
188.8.131.52 Human Resources Management
The nurturing of talent through the Performance Management and Development System is given as one of the Department’s measurable objectives. The Department had set a target for the submission of all performance agreements to their Human Resources by 30 April 2010, the submission of mid-year reviews by 31 October 2010 and that all annual assessment reports should be submitted by 30 April 2010. There were however delays in the submission of performance agreements, delays in the submission of mid-year performance reports and delays in the completion of annual assessment exercises.
Compliance with the Human Resources Regulatory Framework is also listed as one of the measurable objectives of the Department. The Department set a target to have the Work Place Skills Plan submitted to the Public Sector Education and Training (PSETA) by 30 June 2010. The Work Place Skills Plan was approved and submitted to the Public Sector Education and Training (PSETA) on 6 September 2010. There was a delay in the approval of the Department of Arts and Culture Skills Plan.
The Department indicated that legislation prescribed a minimum of 1% of the Department’s total budget to comprise of a Skills Development Levy. The Skills Development Levies Budget of the Department of Arts and Culture was currently standing on 1.5% of their total budget. The Department also listed the address of health and wellness issues in the workplace. Due to budgetary constraints the Department could not implement any Employee Health and Wellness programmes.
184.108.40.206 Information Communication Technology
The integration of Information Communication Technology infrastructure in the Arts, Culture and Heritage Sector is listed as one of the measurable objectives. The Department set a target of 80% of security systems to be implemented (proxy server, anti-virus updates, encryption reinstallation, intrusion detection systems). The Department could only manage to implement 70% of the Information Communication Security systems. The reason for variance given was the discontinuation of encryption software as a result of malfunction.
220.127.116.11 Facilities Management
The improvement of conditions of building safety security and disability access in all buildings utilized by the Department of Arts and Culture entities is listed as a measurable objective. The DAC set the development of norms and standards on security for museums as a target and managed to develop methodology for norms and standards on security for Museums. The reason for variance given was the prolonged approval of the service – level agreement between the Department of Arts and Culture and the service provider.
18.104.22.168 Corporate Governance
The promotion of corporate governance in the Public Sector is the measurable objective under this auspice of the Department. The Department set a target of 100% of public entities to receive unqualified annual reports. The Department could only manage 84% of public entities to receive unqualified annual reports. The reason for variances given here was non compliance of public entities.
2.2.2 Programme 2: Arts and Culture in Society
22.214.171.124 Arts Social Development and Youth
The promotion of gender equality and equity in arts, culture and heritage is specified as a measurable objective under abovementioned. The Department set as a target the establishment of a Department of Arts and Culture Reference Group on inputs on drafting a National Gender Policy on Arts and Culture. The Department could not establish the DAC Reference Group and gave insufficient capacity as a reason for deviance.
2.2.3 Programme 3: National Language Services
The Department of Arts and Culture lists the provision of skills development in the language profession. The target for the awarding of bursaries was to distribute 100 postgraduate bursaries. A total of 119 bursaries were awarded.
2.2.4. Programme 4: Cultural Development and Cooperation
126.96.36.199 To transform the sector
The strategic thrust of this programme was to improve economic and other development opportunities for South African arts and culture, nationally and globally, through mutually beneficial partnerships, thereby ensuring the sustainability of the sector.
One of the strategic objectives under cultural development and cooperation is to transform the sector. The Department set as a target the approval of cultural policies in cultural industry sectors. The actual performance that they had achieved was the conclusion of the Research report and recommendations to inform the policy on visual arts and the development of a draft policy discussion framework for technical service and events document. The task team report on the development of a Books Sector was being perused internally and consultations with the Department of Trade and Industry on the development of a National strategy for the music sector were initiated. The reason for variances on the aforementioned was budgetary constraints, capacity constraints and a moratorium on the Cultural Development Programme of the Department.
188.8.131.52 To develop and transfer skills
The Department had a target of having the Skills Development Plans approved, but the reason for variance on this target was given as a change of focus and the reprioritizing of the allocated budgets for skills programmes for projects.
184.108.40.206 To develop institutions
The Department set a target of presentation of draft proposals and reports and the establishment of music, crafts design, fashion and visual arts bodies. Their actual was the appointment of National Film and Video Foundation council members. The terms of reference for the analysis of the craft sector value chain was developed, advertised and an evaluation committee was established. The reason for variances was the delay in the consultation process and a moratorium on Cultural Development.
220.127.116.11 To consolidate the African Agenda on Culture
The Department had the development of an African continental strategy on the regeneration of the Reconstruction Development Programme as a target. The Department achieved the target.
18.104.22.168 To promote South African arts, culture and heritage internationally
The Department of Arts set a target to consolidate information from the Cultural Diplomacy Conference and to also develop the first draft of the National Policy on Cultural Diplomacy. The concept papers were developed, the reference group appointed, steering group was established and a call for papers were issued.
The reason for variance was that the Cultural Diplomacy Conference was planned for November 2011.The Department explained that they decided to reschedule the conference to a later date due to the congestion on the calendar of International Conferences being conducted in South Africa.
22.214.171.124 To strengthen Bilateral Relations
The auditing of all existing bilateral agreements was set as a target. The Department’s actual performance on this included the signing of a film treaty with Australia, a signed letter of intent on language with Belgium and the Netherlands, the painting of a Ndebele Mural at the Nelson Mandela Forum in Italy, the donation of a rock art replica donation by the President of the Republic of South Africa to the President of Mexico to celebrate the bicentenary of Mexico’s independence and the centenary of the revolution and the Ministerial participation at Long Bien Festival of Arts 1000 years anniversary of the founding of Thang Long in Hanoi, Vietnam.
The Department of Arts and Culture cited capacity constraints for their inability to achieve the target that they had set.
2.2.5 Programme 5: Heritage Promotion
The Strategic thrust of this programme involved the development, monitoring, implementation of policy, legislation and strategic programmes for the identification, conservation and promotion of cultural heritage for Socio- Economic Development.
126.96.36.199 Heritage Promotion
One of the measurable objectives is the strengthening, collection, preservation and the promotion of national heritage through the development and implementation of cultural heritage policies for the sector. The output was to have a legacy project policy developed. The legacy project policy could however not be developed due to capacity and budgetary constraints.
Another measurable objective entailed the development of inclusive audiences. The development of a conceptual and strategic framework was set as a target. The Department could however not achieve this target due to budgetary and capacity constraints.
2.2.6 Programme 6: National Archives, Records, Library and Heraldic Services
The strategic thrust of this programme is to guide , sustain and develop the archival, heraldic and information resources of South Africa so that good governance is supported, socio-economic development is sustained and citizens are empowered through full and open access to these resources.
One of the measurable objectives is to transform the archival services in terms of legislation. The Department set the drafting of a Bill and consultation as its target, but could however not draft and consult on the Bill. The reason for variance was a change of focus to concentrate on funded priorities.
3. ANALYSIS OF STRATEGIC AND OPERATIONAL PLANS
The activities of the Department are organized under the following programmes:
Programme 1: Administration (Corporate Services)
The main aim of this Programme is to oversee the overall management and centralized support services to the departmental core programmes in order to create an enabling environment for the achievement of departmental objectives.
Programme 2: Arts and Culture in Society
The aim of the programme is the:
· Promotion of arts and culture in South Africa and mainstreaming its role in Social Development;
· Promotion of social enrichment, social cohesion and nation building through arts, culture and heritage;
· Promotion of social inclusion of previously marginalised groups in arts, culture and heritage; and
· Socio- economic empowerment of women, youth and special groups through skills participation and opportunities in the arts, culture and heritage sector.
This programme was developed to promote social cohesion in South Africa by establishing a research hub and centres or platforms for dialogue by March 2012, establishing nine social cohesion implementing committees by March 2012 and also by hosting an annual national social cohesion summit in June 2011.
Programme 3: National Language Services
The Strategic Objective of the programme is to develop, promote and protect all official languages through policy formulation and implementation.
The programme aims to provide a translation and editing service to government departments, to promote recognition of the language profession, to provide skills development in the language profession, to develop literature in compliance with the National Language Policy Framework, to develop specialized terminologies in official languages, to establish a National Centre for Human Language Technologies and to facilitate and coordinate Human Language Technology projects and activities.
Programme 4: Cultural Development and International Cooperation
The main aim of the programme is to improve access to sustainable markets by driving and supporting initiatives aimed at moving 660 creative industries practitioners from the fringes of economic activity into the mainstream in 2011/12. This programme’s objective is to increase access and participation by arts and culture practitioners in international markets by adding 10 more signed international agreements, programmes of cooperation and cultural exchange by March 2012. This programme is going to implement a new Investing in Culture structure and funding model by August 2011 to accelerate job creation and poverty alleviation.
Programme 5: Heritage Promotion
The Heritage Promotion Programme aims to promote the appreciation of heritage by developing new commemorative structures and national legacy projects in 2011/12 that reflect South African history, such as the Sarah Baartmann Centre of Remembrance in Hankey; the Women’s Museum in East London; the Khoisan Heritage Route in all none provinces, the Bhambatha Rebellion Against Poll Tax Legacy Project and the commemoration of the Matola Raid in Maputo.
Programme 6: National Archives and Library Services
The Programme aims to improve good governance by promoting efficient records management in organs of state, approving submitted filling plans and systems and disposal authorities and issuing at least seven guidelines or circulars per year. The objective of the programme is to ensure more equitable access to library resources over the 2011/12 financial year by developing and implementing a policy framework for norms and standards for community libraries by March 2012.
4. THE ANALYSIS OF DEPARTMENTAL ALLOCATIONS AND EXPENDITURE REPORTS 2010/11 (SECTION 32 OF THE PUBLIC FINANCE MANAGEMENT ACT)
The Department of Arts and Culture was allocated an amount of R2.4 billion for the 2010/11 financial year. Over the medium term, expenditure is expected to grow from R2.4 billion in 2010/11 to R2.8 billion in 2013/14, at an average annual rate of 4.5 per cent.
By the end of quarter 4 of 2010/11, total expenditure by the Department as a percentage of total available funds amounted to 92.1 per cent or R2.2 billion of the available adjusted appropriation of R2.4 billion, with total under expenditure of R192.4 million. In 2009/10, the Department spent 84.5 per cent or R2.2 billion of the available adjusted appropriation of R2.6 billion. Spending has improved marginally when comparing 2010/2011 to 2009/10, especially in respect of capital works.
EXPENDITURE 2010/11 PER PROGRAMME
Programme 4: This programme spent 82.2 per cent or R187.7 million of the available budgets of R228.4 million in 2010/11 compared to R158.6 million of the available R199.6 million in 2009/10. The slow spending can mainly be attributed to poor spending by the Investing in Culture Projects. In 2009/10, the Department transferred a total of R11.8 million of the available Investing in Culture Project budget of R52.5 million compared to 69.6 per cent or R81.7 million in 2010/11, with an under spending of R35.8 million. The project was suspended pending a forensic audit by the Special Investigating Unit. Since the lifting of the moratorium, payment of transfers had improved significantly.
Programme 6: This programme spent R91.3 percent or R579.7 million of the available budget of R634.8 million. The major under spending by this programme can be attributed to transfers to the Community Library Services Conditional Grant that were withheld. The National Department of Arts and Culture withheld an amount of R50.2 million, due to slow spending by provincial departments.
Economic classification spending trends
Goods and Services: The DAC spent R208.4 million or 92.1 per cent of the adjusted appropriation of R226.3 million. The total adjustments appropriation of R64.3 million takes into account a R54.3 million virement from transfers to households because of funds that were incorrectly classified in the 2010 ENE. The under expenditure on goods and services totalled R17.8 million.
Transfers and subsidies: At the end of the fourth quarter, the Department transferred a total of R1.9 billion or 91.7 per cent of the available R2.1 billion. Slow spending on the Investing in Culture Programme and the withholding of funds due to poor spending by provinces on the Community Library Services Conditional Grant resulted in under spending of R170 million.
Capital Assets: The Department spent 33.6 per cent or R2.2 million of an allocated budget of R6.6 million by the end of March 2011. The slow spending was due to delays in purchasing computers and office furniture for senior management staff across all programmes.
5. ANALYSIS OF THE ANNUAL REPORTS AND AUDITED FINANCIAL STATEMENTS OF THE DEPARTMENT OF ARTS AND CULTURE
5.1 Statement of Financial Performance
- The total funds voted for the Department amounted to R2, 406 720 billion comprising of R2, 441 720 million of annual appropriation;
- The total expenditure of the Department amounted to R2, 248 819 billion; and
- The total surplus for the year amounted to R192, 426 million.
5.2 Analysis of the Auditor General’s Opinion: 2010/2011 Financial Year
For the financial year under review, the Department received an unqualified audit report. The reasons for such unqualified audit report were that the financial statements of the Department present fairly, in all material aspects, the financial position of the Department of Arts and Culture as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).
However, the audit report also pointed to some irregular expenditure of an amount of R 64, 5 million as expenditure incurred related to previous years. The report also pointed to an unauthorized expenditure of R41, 5 million related to the 2008/09 financial year for shifting of funds earmarked for the 2010 FIFA World Cup budget. Further, the report pointed that the department incurred fruitless and wasteful expenditure of R 743 000 relating to the 2008/09 financial year. An investigation was being conducted regarding the above misspending of public funds.
6. CONSIDERATION OF REPORTS OF THE COMMITTEE ON PUBLIC ACCOUNTS
The Committee on Public Accounts had not yet considered the Department of Arts and Culture 2010/2011 Annual Report
7. ANALYSIS OF QUARTERLY EXPENDITURE REPORTS
7.1 [To date, the portfolio committee’s method of work does not include the quarterly evaluation of the Department’s spending and performance. This part of the report is therefore based on expenditure information supplied by National Treasury]
7.2 Notwithstanding the above, both the Committee and the Department recognized the urgent need for regular interactions and quarterly reporting in order to ensure accountability and improve service delivery.
The Committee has observed that the Department of Arts and Culture has a very small budget, but yet they are responsible for the promotion of social cohesion. The Department also seems not to be adequately monitoring the entities that they are responsible for.
The Department also has a 27% vacancy rate of which 4.9 % is funded. In addition to the Department’s failure to monitor its entities, the Department of Arts and Culture also lacked its own monitoring and evaluation mechanisms. The Department’s moratorium on key programmes furthermore hampered job creation.
The Committee observed that the Department of Arts and Culture should be moved to the Economic Cluster. The Committee also felt that the Department had no timeframes attached to its programmes.
· The Department should address their capacity and financial constraints as a matter of urgency to fast track service delivery.
· The Department should put in place monitoring and evaluation mechanisms to ensure that the entities that they were responsible for complied with the Public Finance Management Act, Treasury Regulations and other relevant legislation.
· The Department of Arts and Culture should relook its organizational structure and make a thorough analysis of its staffing needs.
· The Department should revisit its funding of the different programmes and make a thorough analysis and measure it against its measurable objectives.
· The Department should lower its targets to make it more realistic to its low budget that it receives from National Treasury.
· The Department of Arts and Culture and the Committee should have closer interactions on the Supply Chain Management of the Department.
· The Department should give more detail on their reason for variance for future annual reports.
· The Department should attach realistic timeframes for its programmes.
Report to be considered
No related documents