The National Arts Council (NAC)APP 2013/2014

Presentation to the Portfolio Committee19 June 2013

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Introduction• Policy mandate as per the White Paper on Arts, Culture and

Heritage– Distribute public funds to artists, cultural institutions, NGOs and CBOs to

promote the creation, teaching and dissemination of literature, oral history and storytelling, music, dance, theatre, musical theatre, opera, photography, design, visual art and craft which fully reflect the country’s diversity.

– Provide study bursaries for study in the fields of arts and culture, to practitioners, administrators and educators.

– Carry out research, especially regarding policy linked to its mandate and also execute investigations and research at the request of the Minister

• NAC established by the National Arts Council Act (No 56 of 1997 as amended by the Cultural Laws Amendment Acts) and is a Schedule 3 A public entity in terms of the PFMA

• Wholly funded by annual budget allocation from DAC, of which 75% in terms of the Act must be distributed in grants in support of the arts

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The Mandate & Objectives of the NAC

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NAC Mandate• To provide, and encourage the provision of, opportunities for persons to

practise the arts• To promote the appreciation, understanding and enjoyment of the arts;• To promote the general application of the arts in the community • To foster the expression of a national identity and consciousness by means

of the arts• To uphold and promote the right of any person to freedom in the practice

of the arts• To give the historically disadvantaged such additional help and resources

as are required to give them greater access to the arts• To address historical imbalances in the provision of infrastructure for the

promotion of the arts• To promote and facilitate national and international liaison between

individuals and institutions in respect of the arts• To develop and promote the arts and to encourage excellence in regard to

these.

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The Accounting Authority• The current NAC Council was appointed in March 2011

by the Minister of Arts & Culture• The Council is comprised of discipline representatives

(7), provincial representatives (9) and other members of society with skills necessary for the effective functioning of the Council

• The work of Council is facilitated by – The Executive Committee– The Audit and Risk Committee– The Human Resources Committee– The Advisory Panels (7 discipline-based panels)

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NAC Strategic Objectives: 2012 – 2016• Contributing to redress and transformation in the arts.• Developing an effective funding model that supports

the NAC in achieving its mandate.• Fulfilling the full mandate of the NAC.• Advocating the benefits of the Arts and the work of the

NAC amongst critical stakeholders to create partnerships and unlock new resources for the arts.

• Creating programmes in support of new areas of work including youth development and audience development, participation and appreciation.

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Organisational Structure

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ProgrammesProgramme Description

Arts Development Responsible for the administration of the grants which are at the core of the NAC’s mandate

HR, Finance & IT Programme fulfils the following support roles:•Financial management.•Human resource management and development.•Information technology management and development.•Administration management, particularly in support of grant administration.

Research Aims to foster a culture of research that promotes knowledge, information sharing, networking and policy interventions and informs the NAC’s sector support

Communication & PR Provides the link between the NAC and the broader sector

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The 2012/2013 Financial YearSome unaudited highlights

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The New Funding Model

• In September 2012/2013 the Council of the NAC approved a new funding model as a critical driver of the new priorities.

• The model is designed to be:– Equity based funding model– Responsive to the needs and life cycle stage of

artists and arts organisations– Able to empower women, youth and people with

disabilities

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Beneficiary Profile

This framework will inform both the number of beneficiaries and the funding allocations

50%

30%

20%

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Performance Against Objectives

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Priority HighlightsContributing to redress and transformation in the arts

In support of redressing the historical underfunding of particular provinces, 223 grants were made to beneficiaries in the Eastern Cape, Free State, Limpopo, Mpumalanga, North West Province and Northern Cape.

220 grants were made to organisations that are steered by women as well as to individual women in the arts.

231 grants were made to young people and organisations led by the youth.

Seven grants were made to organisations in support of people with disabilities.

Eight projects were initiated to build arts management capacity in various sectors and across the sector as a whole.

Performance Against Objectives

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Priority HighlightsDeveloping an effective funding model

The NAC funding model was successfully reviewed in consultation with the arts community through eight workshops held across the country.

The work of the funding model is clearly demonstrated in the grant funding awards.

Fulfilling the mandate of the NAC

The France South Africa Seasons project proved to be a successful vehicle for international exchange and partnerships between the NAC, stakeholders and government departments and public entities such as the Department of Arts and Culture, the National Film and Video Foundation and the Department of Tourism.

Matters impacting on the work of the NAC and the Provincial Arts and Culture Councils were discussed at MinMEC and at a workshop attended by various stakeholders and presented at the intergovernmental structures of the Technical Implementation Committee (TIC) comprising the Director General of DAC and the provincial heads of the Department of Arts and Culture.

Performance Against Objectives

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Priority HighlightsAdvocating the benefits of the arts and creating partnerships

In advocating for the arts, consideration, interaction and collaboration were initiated in the year under review with provincial stakeholders. This was done through regular interactions, information sharing and the initiation of partnership projects.

Communication about the work of the NAC and the value of the arts were also substantively up scaled with the introduction of the NAC newsletter, various press releases and partnerships with key niche publications in the arts.

Social media platforms such as Facebook were also successfully utilised to communicate with the arts sector about relevant matters.

Creating programmes in support of young people and audience development

The review of the funding model created significant opportunities for young people to access grant funding from the NAC.

The France South Africa Seasons programme created an ideal platform for youth exchange projects & developing new audiences for South African work.

NAC Grant Funding 2012/2013

• Three grant categories– Projects– Local & international bursaries– Arts Organisation Support Funding

• 580 individuals and arts organisations supported

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Funding by Grant Type

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Funding by Province

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APP 2013/2014

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Service Delivery Environment• Demands on resources far exceeds funds available

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Service Delivery Environment (cont.)

• The need to redistribute resources, particularly to historically underfunded provinces and challenges pertaining to:– The funding and functionality of Provincial Arts

and Culture Councils in some provinces– Low levels of applications in some provinces

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Service Delivery Environment (cont.)• Historic underfunding of the NAC benchmarked

against other DAC funding agencies….

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OrganisationMTEF

2012/2013

2013/2014

2014/2015

National Heritage Council 50,063 53,043 56,262National Arts Council 87,527 87,554 92,815National Film & Video Foundation 86,442 105,223 111,588

Source: DAC ENE 2012/2013

• And the National Lottery Distribution Trust Fund…• In 2011/2012 the NAC made grants to the value of

R52,846 million to 374 organisations• The NLTD made grants to the value of R459 million

to 257 organisations

Transformation & Redress

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Performance Indicator 2013/2014 Target

2014/2015 Target

2015/2016 Target

Number of organisations from HDI provinces receiving funding.

60 organisations

60 organisations

70 organisations

Number of individuals from HDI provinces receiving project and bursary funding. 90 individuals 100 individuals 100 individuals

Number of woman-led organizations and individuals receiving funding.

26 organisations

35 organisations

40 organisations

Number of organizations and individual people with disability receiving funding.

15 organisations &

individuals

23 organisations &

individuals

25 organisations &

individualsNumber of community arts festivals and partnership projects with provinces 8 projects 5 projects 5 projects

Number of SMMEs to be supported. 30 SMMEs 30 SMMEs 30 SMMEsNumber of Arts Organisations to be supported.

55 Arts Organisations

55 Arts Organisations

55 Arts Organisations

Framework for supporting indigenous arts developed

Development of a strategy to support indigenous arts

Implementation of strategy to support indigenous arts

Implementation of strategy to support indigenous arts

Review of the Funding Model

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Performance Indicator 2013/2014 Target

2014/2015 Target

2015/2016 Target

Improvement and redesign of the model.

Improvement and review of the model

Improvement and review of the model

Evaluation of the funding model.

Youth & Audience Development

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Performance Indicator 2013/2014 Target

2014/2015 Target

2015/2016 Target

Increase in number of youth organizations supported

4 youth organisations to be supported

2 youth organisations to be supported

2 youth organisations to be supported

Increase in number of young people trained

4 youth to participate in the internship programme

6 youth to participate in the internship programme

6 youth to participate in the internship programme

4 capacity building programmes

4 capacity building programmes

4 capacity building programmes

Achieving the Full Mandate of the NAC

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Performance Indicator 2013/2014 Target 2014/2015 Target 2015/2016 Target

Shortened turnaround time in processing of funds

Process funds within 25 days of receipt of request.

Process funds within 20 days of receipt of request.

Process funds within 20 days of receipt of request.

Increased number of funding applications provinces where workshops are held

4% increase in number of serving application from provinces visited

6% increase in number of serving application from provinces visited

8% increase in number of serving application from provinces visited

200 organisations to be visited 200 organisations to be visited

250 organisations to be visited

300 organisations to be visited

Hosting of biennial Arts Indaba 1 Biennial NAC Arts Indaba hosted -

1 Biennial NAC Arts Indaba hosted

Implementation of international exchange programmes

South African Season in France implemented

UK Season implemented -

Advocating the Arts and the NAC

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Performance Indicator 2013/2014 Target

2014/2015 Target

2015/2016 Target

Publication of quarterly newsletter of the NAC.

4 publications of the newsletter annually

4 publications of the newsletter annually

4 publications of the newsletter annually

Building strategic relations with the Provinces.

4 strategic meetings with provincial committee

4 strategic meetings with provincial committee

4 strategic meetings with provincial committee

Meetings with PACCs 2 meetings 2 meetings 2 meetings

Publication of the NAC funded projects in the Community Newspapers

Content published in 6 community newspaper publications.

Content published in 8 community newspaper publications.

Content published in 8 community newspaper publications.

Community radio & regional SABC radio stations

10 radio announcements and interviews

12 radio announcements and interviews

12 radio announcements and interviews

Participate in information sharing exhibitions

8 exhibitions attended 10 exhibitions attended

12exhibitions attended

Improve number of the NAC website and social media visits

20 000 visits on social media

22 000 visits on social media

25 000 visits on social media

Strengthening Corporate Governance

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Performance Indicator 2013/2014 Target 2014/2015 Target 2015/2016 Target

Number of capacity building programmes for Council Members

3 capacity building programmes on corporate governance

2 capacity building programmes on corporate governance

2 capacity building programmes on corporate governance

Evaluation of performance of the Committee of Council

1 performance evaluation for Committees of Council

2 performance evaluation for Committees of Council

2 performance evaluation for Committees of Council

Development and review of corporate governance policies

2 policies to be developed and 4 policies to be reviewed

6 policies to be reviewed

8 policies to be reviewed

Provide IT support service to improve service delivery

•Implementation of a internet voice/phone solution•Implementation of a record management system•Upgrade organizations ICT systems

Maintenance & development

Maintenance & development

Strengthening Corporate Governance

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Performance Indicator

2013/2014 Target 2014/2015 Target 2015/2016 Target

Effective Risk management

Implementation of physical and environmental controls

Maintenance of physical and environmental controls

Maintenance of physical and environmental controls

Effective financial management & control

Unqualified audit outcome Unqualified audit outcome Unqualified audit outcome

Monthly & quarterly financial and performance reports to Council

Monthly & quarterly financial and performance reports to Council

Monthly & quarterly financial and performance reports to Council

Effective human resource management, development and administration

Organisational review completed Review recommendations implemented

Review recommendations implemented

Quarterly performance reviews for all staff

Quarterly performance reviews for all staff

Quarterly performance reviews for all staff

BUDGET 2013/2014

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NAC MTEF Allocation

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MTEF2012/2013

2013/2014

2014/2015

National Arts Council 87,527 87,554 92,815

2013/2014 Budget Overview by Category

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Comparative Analysis by Category

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Matters Impacting on the NAC

• Downtown Studios– The transfer was approved by the Minister in 4th

quarter of 2012/2013– Guidance is awaited from Treasury with regard to

the mechanism of transfer– The building and the assets have been integrated

into the AFS of the NAC as per the agreed treatment with the AG

– The assets will accordingly be audited by the AG in the 2012/2013 regularity audit

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Matters Impacting on the NAC• Audit Matters– The NAC received an adverse audit finding in 2010/2011

and a qualified audit opinion in 2011/2012– The qualification was due to material misstatements in the

AFS, non compliance with the PFMA and Treasury Regulations and non-compliance with the GRAP accounting standards

– For the 2012/2013 Annual Financial Statements, quality assurance has been conducted on the AFS by the NAC’s internal auditors, the misstatements from prior years have been corrected, the SCM environment has been improved through a review of policy and procedure and the appointment of an SCM officer and the issue of non-adherence to GRAP standards resolved.

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THANK YOU

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