ANNUAL REPORT 2006/07

Transcription

1 ANNUAL REPORT 2006/07

2 GIVE ME A DRUM AND I LL EXPRESS MYSELF. PLAY ME A DRUM AND I LL UNDERSTAND YOU. THE DRUM IS THE WORLD'S OLDEST AND MOST UBIQUITOUS INSTRUMENT. SINCE 6000 BC THE BASIC DESIGN IS ESSENTIALLY UNCHANGED. THE DRUM IS A MEANS OF COMMUNICATION THAT TRANSCENDS LANGUAGE AND CULTURE. IT SPEAKS THE RHYTHM OF LIFE. IT REFLECTS HUMANKIND S DESIRE TO EXPRESS, TO COMMENT, TO CHANGE. WE EXPLORE OUR WORLD THROUGH CRAFT, VISUAL AND PERFORMANCE ART, MUSIC AND LITERATURE. AND THROUGH THESE ARTS WE EXPRESS OUR PLACE IN THE WORLD, COMMENT ON SOCIETY AND INFLUENCE OUR DESTINY. TAKE TO THE DRUMS, THE WORLD IS LISTENING

3 CONTENTS HIGHLIGHTS 2 SUBMISSION OF THE ANNUAL REPORT TO THE EXECUTIVE AUTHORITY 3 CHAIRPERSON S REPORT 4 CHIEF EXECUTIVE OFFICER S REPORT 6 CORPORATE GOVERNANCE REPORT 9 HUMAN RESOURCES REPORT 12 AUDIT AND RISK COMMITTEE REPORT 14 COUNCIL REPORT 16 REPORT OF THE AUDITOR-GENERAL /7 ANNUAL FINANCIAL STATEMENTS 23 STATEMENT OF FINANCIAL POSITION 25 STATEMENT OF FINANCIAL PERFORMANCE 26 STATEMENT OF CHANGES IN NET ASSETS 26 CASH FLOW STATEMENT 27 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 28 ARTS FUNDING REPORTS 40 FUNDING OVERVIEW 41 REPORT OF COMPANY FUNDING 42 REPORT OF BURSARY FUNDING TO INSTITUTIONS 44 REPORT OF BURSARY FUNDING TO INDIVIDUALS 45 REPORT OF PROJECT FUNDING TO INDIVIDUALS 46 REPORT OF PROJECT FUNDING TO ORGANIZATIONS 49 REPORT OF DAC RING-FENCED FUNDING 52

4 2006/2007 HIGHLIGHTS» NAC delivers its first unqualified audit report in four years» A cash surplus of R24,8m for 2006/7 following a deficit of R1,5m for 2005/6» NAC allocates R48,2m to 426 arts entities» NAC allocates 78% of annual parliamentary appropriation as grants to the arts. This is in excess of the legal requirement of 75%.» NAC wins bid to host 2009 World Summit on Arts and Culture 2 ANNUAL REPORT 2006/ 07

5 SUBMISSION OF THE ANNUAL REPORT TO THE EXECUTIVE AUTHORITY DR Z PALLO JORDAN Minister of Arts and Culture In accordance with the provisions of the Public Finance Management Act (1999) and the National Arts Council Act (1997), we are honoured to submit for presentation to Parliament this report of the National Arts Council of South Africa for the financial period 1 April 2006 to 31 March 2007 NICHOLAS MOTSATSE Chairman SEELAN NAIDOO Chief Executive Officer ANNUAL REPORT 2006/ 07 3

6 CHAIRPERSON S REPORT It gives me great pleasure to present this maiden overview report of this Council. While the report reflects the work of the National Arts Council (NAC) from April 2006 to March 2007 (the year under review) it is important to state upfront that the Council was only inaugurated in September 2007, six months into the year under review. The Department of Arts and Culture (DAC) played an important caretaker role from the time the previous Council was dissolved by the Minister to the time that this Council was inaugurated. It is therefore befitting to express a word of gratitude to the Ministry of Arts and Culture and the DAC for filling the gap at the most difficult stage since the formation of the NAC. The year under review presented a number of challenges to the Council. Since the Council was only inaugurated half way into the year under review, it had to hit the ground running in order to ensure that the NAC met its mandate and obligations without significant disruptions. That was achieved with the remarkable support of the NAC Management and staff. As an indicator the funding session that was scheduled for the October/November period was completed on time and so have the subsequent sessions. It was apparent to Council that it had to prioritise its plans since it only had six months before the end of the financial year. The top three priority items and key deliverables for the year under review were identified as an improved audit report, improved staff morale and an improved public image. One of the most important milestones for any public organisation is the publication of its Annual Report incorporating the reports of the Board of Directors, the Executive Management and the Auditors. It is not different in the case of a statutory body like the NAC. In fact the requirements tend to be more stringent. Any adverse report from any of the parties goes a long way in impacting on the public image of the entity. It was for that reason that Council was seriously concerned about the qualifications and matters of emphasis that were contained in the reports of the Auditor General in his audit of the NAC over the past few years. The Council immediately got to work on that by electing the Risk and Audit Committee and tasked them with a clear mandate of working on the corporate governance and controls issues that were central to the adverse report. The Audit Committee alone, being a non-executive body would not be able to address these issues without a strong support of the Management team. To this extent the Council reshuffled the Management team and hired a Chief Executive Officer (CEO) and created a new position of Chief Operating Officer (COO). Both appointees were given fixed term contracts while the Chief Financial Officer (CFO) retained and continued in his role. This Management team together with the Audit Committee systematically worked through the main areas of concern. The result of that work is this report that we present to you a report without qualifications and matters of emphasis from the Auditor General. We are however also conscious of the fact that this is just but the beginning of long road of consistent and strict adherence to good governance, appropriate controls and a better way of working. It stands to reason that given the developments in the recent history of the NAC, staff motivation levels would be low. Notwithstanding this fact we are appreciative of the good work that the staff continued to do under difficult circumstances in serving the Arts Community in South Africa. With the employment of the CEO as well as the reshuffle of the Management team great strides were made in improving the morale of the staff. While we accept that there has not been an independent assessment of the morale of the staff, the management reports that we regularly receive, as well as the performance of the staff in general have indicated an improvement in this area. In this current financial year, following the one under review, attention will be given to putting in place performance management tools that will give an objective indication of the performance and morale of staff. Work is underway to fill vacant positions, a factor that will ease the workload and allow for role clarity. 4 ANNUAL REPORT 2006/ 07

7 The public image of the NAC was adversely affected by the negative publicity received during the dissolution of the previous Council. It also became apparent to this Council that there could not be any quick fixes. The public image would improve if Council started communicating more with its publics and would also produce tangible results. Informal feedback received so far points to the gaps that still exist in our communication but there has also been increasing positive feedback received by the individual Council members as well as staff. One of the areas in the future will be the measurement of public perceptions towards the NAC. On the proactive side (we concede that the focus outlined above was more to react to situations that were thrust upon this Council) Council set time aside to develop a strategic plan which would serve as a road map for the coming years of the Council s work. The central theme running through the strategic plan is the need for the NAC to fulfil its entire mandate and not only function as a funding agency. While funding remains an integral part of the NAC s work, it is clear that this is not the only role for which it was established. There is therefore great determination to fulfil the strategic plan. A key aspect of the strategy relates to the development of an integrated model that will ensure harmonious work between the Provincial Arts and Culture Committees (PACC) the Provincial Departments of Arts and Culture as well as the NAC. This will necessitate the overhaul of the funding model among other things. Work in this regard has commenced and the Council plans a series of consultative meetings with all stakeholders over a period of time. to play a role in creating an opportunity for the networking of various Councils throughout the African continent. We therefore see the preparatory work towards the Congress as important in creating a unifying climate, not only on the continent, but also within South Africa among the various arts and culture organisations and government departments. Let me conclude by expressing our gratitude to the staff members of the NAC who have given of their best to ensure that we reach this stage in the progression of the NAC. A word of thanks also goes to the Risk and Audit Committee. We thank the many panelists who agreed to serve longer than their original term of office in order to ensure that the work of the NAC did not come to a halt. Those were the people who spent long hours in deliberations in order to ensure that the limited funds that the NAC had, did indeed go a long way towards addressing the needs of the Arts Community. The visionary approach and single mindedness about what was important in its first year, was an important hallmark of this Council. I am grateful to each member for their hard work in giving the staff support to achieve what needed to be achieved. The same goes for the Executive Committee (EXCO) of Council which worked tirelessly in ensuring that decisions of Council were carried out. While we are mindful of the long road ahead and its demands, we are delighted to briefly pause with a huge sigh and say so far so good. The announcement of South Africa as the host country of the fourth Congress of the International Federation of Arts Councils and Culture Agencies (IFACCA) in the year 2009, could not have come at better time. It fits well with the plans of this Council NICK MOTSATSE Chairperson National Arts Council of South Africa ANNUAL REPORT 2006/ 07 5

8 CHIEF EXECUTIVE OFFICER S REPORT Caveat While this report covers the full 12-month period from 1 April 2006 to 31 March 2007, it is important to note at the outset that my tenure as Chief Executive Officer was effective from 1 February 2007; furthermore during the 3-month period from November 2006 to January 2007, I served at the NAC in the capacity of management consultant. The 2006/7 year is a watershed for the National Arts Council of South Africa. Following the appointment of the new Council in August 2006 and the appointment of the new CEO in February 2007, the NAC has undergone and will continue to effect a comprehensive improvement process to resolve weaknesses that have plagued the institution for years. The NAC is now poised to explore its broader mandate. GOVERNANCE AND COMPLIANCE IMPROVEMENT FUNDING TO THE ARTS For the first time in 4 years, we are proud and relieved - to deliver an annual report free of audit qualifications and matters of emphasis. This turnaround in the area of governance and compliance (see the Corporate Governance Report below for NAC DELIVERS FIRST UNQUALIFIED AUDIT IN 4 YEARS more detail) bodes well for the institution because it re-establishes a firm basis for trust in the NAC as a public entity. And it is on the basis of trust, in the first instance, that any public entity is able to develop and confidently pursue objectives that will serve its stakeholders in a meaningful way. IDENTIFICATION OF A HISTORICAL SURPLUS In addition to the dramatic improvement in governance and compliance, this year s audit preparations also resulted in the identification of a significant historical cash surplus after adjusting for current liabilities. The cash surplus of just over R24,8m developed over the preceding 5 years due to: under-spending on operating costs; and, the withholding of arts grants to noncompliant grantees. Formal application has been made to the Department of Arts and Culture and National Treasury for the NAC to retain the surplus so that it may be applied to the arts sector over the coming 3 years. We are confident that the application will be successful. 6 ANNUAL REPORT 2006/ 07 The NAC carried out its key function of making grants to the arts in the form of funding to arts companies and projects, and for arts bursaries. While the grant-making process could be improved it is a credit to the NAC that despite persistent organisational difficulties over the preceding 3 years, this crucial function continued to be carried out conistently. A detailed breakdown of funding is included at the end of this annual report but may be summarized as follows: FUNDING TYPE Company funding Bursary funding to institutions Bursary funding to individuals Project funding to organizations Project funding to individuals DAC ring-fenced funding (Orchestras+ other projects) Total The NAC Act (1997) requires that the NAC allocate at least 75% of its annual parliamentary appropriation to disbursements to the arts in the form of grants. For the 2006/7 year the NAC allocated R48,2m to grants, which NO. OF ENTITIES FUNDED FUNDING ALLOCATED (RANDS) NAC EXCEEDS 75% STIPULATION FOR FUNDING TO THE ARTS constitutes 78% of the annual parliamentary appropriation of R62,1m. PIC COPYRIGHT: NAC, COURTESY: DRUM CAFE, MIKE TAYLOR

9 MMINO PROGRAMME Mmino which in Setswana means music is a development programme funded by the Norwegian Ministry of Foreign Affairs and managed by the NAC in partnership with Rikskonsertene (Norwegian Concert Institute). Though Mmino is subject to a separate audit and reporting process I make reference to the programme in this report because of its significance in the South African music scene particularly in the area of education and exchange. The NAC continued to manage the Mmino programme consistently and to the satisfaction of the Norwegian Foreign Ministry, the Royal Norwegian Embassy and Rikskonsertene. Mmino achieved a clean audit report for its 2006 financial year. We are grateful to the Norwegian Ministry of Foreign Affairs for their commitment to Mmino and for the confidence shown in the NAC. We are in the process of discussing the continuation of Mmino for a further period and I am optimistic that the programme will indeed continue with support from the Department of Arts and Culture. A special note of thanks and gratitude to Inger Stoll (Counsellor, Royal Norwegian Embassy), Gunn Roset (First Secretary, Royal Norwegian Embassy),Anne Moberg (Norwegian Mmino Co-ordinator: Riksonsertene) and Tom Gravlie (Head of International Affairs: Rikskonsertene) for their support and valuable input over the last year. Mmino funding statistics for 2006 FUNDING TYPE NO. OF ENTITIES FUNDED 2009 WORLD SUMMIT ON ARTS AND CULTURE FUNDING ALLOCATED (RANDS) 2006 calendar yr Music education (2 funding sessions) Music exchange Total This year, the NAC and its partners (Joburg Metro, Gauteng Province and the Department of Arts and Culture) won the bid to host the next World Summit on Arts and Culture to be held in Johannesburg from September The Summit is a seminal event on the international arts calendar that brings together many of the most influential people and institutions in the sector. The 2009 World Summit on Arts and Culture has two key themes: 1. The role of the arts in promoting inter-cultural dialogue and celebrating and investigating South Africa s unique experience in this field; 2. Investigating the different operating environments and approaches of arts funding agencies working in the developed and the developing world. NAC WINS BID TO HOST 2009 WORLD SUMMIT ON ARTS AND CULTURE We look forward to hosting the event with authentic South African warmth and energy. CHALLENGES THAT LIE AHEAD The strategic challenges that the NAC will need to address in the coming year and beyond are as follows:» The NAC needs to provide leadership in the sphere of public funding of the arts. Currently, the NAC is a small player in an arts funding landscape that is confusing and inefficient. There is now an opportunity, given the NAC s improved governance environment, to consider centralizing the management of public funds to arts at the National Arts Council.» There is a need for equity and balance of funding across our various communities, the arts disciplines and across our provinces. However, the treatment of this issue should not be approached naively but should take account of the inherent complexities of resource allocation in the arts.» There is a dire need for intervention in the arts at the sectoral level. Such intervention which would include sector research, advocacy, policy input and the like is very much a part of the NAC s mandate and the NAC must step into the breach.» The NAC must identify its stakeholders and engage more effectively with them such engagement should not emphasise the promotion of the NAC but should seek to add value to the NAC s stakeholders through the dissemination of information and knowledge. ANNUAL REPORT 2006/ 07 7

10 CONCLUSION The NAC is an important statutory institution in the South African arts sector given the many crucial functions it was designed to fulfill. One core function of the NAC relates to making grants to the arts. In its first 10 years of existence the NAC consistently carried out its grant-making function, at times, despite trying circumstances. But much more is expected of the NAC. The strategic challenge over the next 10 years is for the NAC to fulfill its broader mandate. This is not just a matter of meeting the legal obligations set out in the NAC Act but also of serving a purpose and meeting needs in the arts sector that can be most effectively addressed by a mediating agency such as an arts council. In this respect the 2006/7 year is indeed a watershed since I believe that this is the first year in which the NAC has seriously explored its mandate beyond making grants. The result is a 3-year strategy that, in addition to improved grant-making processes, includes aspects such as transformation in the arts, arts research and policy, cultural participation and audience development, international liaison, and fostering a shared South African identity. To implement this new strategy will take some doing and will require additional resources but I believe quite strongly that the NAC is poised to do just that. In closing I would like to pay tribute to Kiran Isvarlal (our Chief Financial Officer), Julie Diphofa (our Chief Operating Officer) and all the staff of the NAC. This small team has shown remarkable resilience during a year of dramatic change and they responded with vigor and enthusiasm when I demanded more from them. Well done and thank you for your effort! I acknowledge our Audit and Risk Committee and especially its chairman, Navin Lakha, for supporting the management team in delivering a greatly improved governance environment. I would also like to thank the NAC Council, and especially our Chairman Nicholas Motsatse for his enduring commitment to the NAC. May the NAC grow stronger to better serve the South African Arts. SEELAN NAIDOO Chief Executive Officer National Arts Council of South Africa 8 ANNUAL REPORT 2006/ 07

11 CORPORATE GOVERNANCE REPORT GOVERNANCE AND COMPLIANCE TRENDS Over the 3 years preceding the year under review, the institution s governance and compliance record grew steadily worse. However, the audit outcome for the 2006/7 year is evidence of a comprehensive turnaround in this area. FINANCIAL YEAR 2003/4 2004/5 2005/6 2006/7 Qualifications Matters of emphasis Total serious issues Other matters IMPROVEMENTS EFFECTED DURING THE YEAR Apart from the regular reports required the following action was taken to improve the governance and compliance environment at the NAC:» Appointment of the Council in August 2007 by the Department of Arts and Culture (DAC)» Appointment of the Audit and Risk Committee by the Council. In order to formalize the Audit and Risk Committee the Audit and Risk Committee Terms of Reference was put in place» Formalisation and outsourcing of the internal audit function to Sekela Consulting.» A formal Internal Audit Charter was developed.» 3-year audit plan put in place» 2006/7 audit plan developed» Development of a Materiality and Significance Framework.» Development of the Delegation of Authorities document» Risk Assessment undertaken» Risk Management Plan developed» Fraud Prevention and Response Plan developed» CAPEX requisition lodged» 3-year strategic plan developed and presented to the executive authority» In-depth investigation into the grants approval process to ensure approval controls. This process included corrective action as well.» In-depth investigation into expired projects to quantify the surplus. ANNUAL REPORT 2006/ 07 9

12 INTERNAL AUDIT Sekela Consulting was appointed as internal auditors to the NAC. The Internal Audit (IA) function of the NAC is an independent appraisal activity of the various operations and systems of control to determine whether acceptable policies and procedures are followed, legislative requirements and established standards are met, resources are used efficiently and economically and planned missions are accomplished effectively. IA s primary purpose is to provide its stakeholders with assurance regarding the adequacy and effectiveness of the NAC s internal control systems and, where appropriate, the quality of performance of its business operations as evaluated against agreed performance standards. Such assurance will be based on objective information, in the form of audit opinions, arising from control audits and performance audits respectively. Internal audit is responsible to:» Develop a flexible 3-year rolling audit plan and an annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit the plan to the Audit and Risk Committee for review and approval as well as periodic updates.» Implement the annual audit plan, as approved, including as appropriate any special tasks or projects requested by the Audit and Risk Committee.» Build a professional audit staff with sufficient knowledge, skills, and experience and professional certifications to meet the requirements of this Charter.» Evaluate and assess significant merging functions and new or changing services, processes, operations, and control processes coincident with their development, implementation and/ or expansion.» Issue periodic reports to the Audit and Risk Committee and management summarising results of audit activities.» Keep the Audit and Risk Committee informed of emerging trends in internal auditing.» Provide a list of significant measurement goals and results to the Audit and Risk Committee.» Assist in the investigation of significant suspected fraudulent activities within the institution and notify the Audit and Risk Committee of the results.» Consider the scope of work of the external auditors as appropriate, for the purpose of providing optimal audit coverage. 10 ANNUAL REPORT 2006/ 07

13 MATERIALITY AND SIGNIFICANCE FRAMEWORK SECTION 54 (PFMA): VALUE (QUANTITATIVE) NATURE OF EVENT (QUALITATIVE) INFORMATION TO BE SUBMITTED BY THE ACCOUNTING AUTHORITY (2) before a public entity concludes any of the following transactions, the Accounting Authority for the entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its Executive Authority for approval of the transaction: (b) participation in a significant partnership, trust, unincorporated joint venture or similar arrangement; ALL Any event that is not envisaged in the Objects and Functions of the NAC as set out in the NAC Act; and, any unplanned event per the ASP that may affect the core purpose or mandate of the entity. (c) acquisition of or disposal of a significant shareholding in a company; (d) acquisition or disposal of a significant asset; (e) commencement or cessation of a significant business activity. ALL Any transaction of which the amount exceeds R500,000 (roughly 1% of the total value of assets per 2005/6 AFS). Any transaction of which the amount exceeds R500,000 (roughly 1% of the total value of assets per 2005/6 AFS). Any event that is not envisaged in the Objects and Functions of the NAC as set out in the NAC Act; and, any unplanned event per the ASP that may affect the core purpose or mandate of the entity. Any event that is not envisaged in the Objects and Functions of the NAC as set out in the NAC Act; and, any unplanned event per the ASP that may affect the core purpose or mandate of the entity. Any event that is not envisaged in the Objects and Functions of the NAC as set out in the NAC Act; and, any unplanned event per the ASP that may affect the core purpose or mandate of the entity. 4.3 SECTION 54 (PFMA): VALUE (QUANTITATIVE) NATURE OF EVENT (QUALITATIVE) ANNUAL REPORT AND ANNUAL FINANCIAL STATEMENTS (2) the annual reports and financial statements must: (b) include particulars of: (i) any material losses through ALL ALL criminal conduct and, (ii) any irregular expenditure and ALL ALL fruitless and wasteful expenditure that occurred during the year (iii) any losses recovered or written off ALL ALL ANNUAL REPORT 2006/ 07 11

14 HUMAN RESOURCES REPORT ORGANISATION STRUCTURE AS AT 31 MARCH 2007 Board Secretary CEO Mmino Co-ordinator COO CFO Acting Asst. Grants Manager (ADO: Multi) ADO: Theatre ADO: Music ADO: Literature Temporary ADO: Craft Temporary ADO: Visual Temporary ADO: Dance Temporary Admin Clerk ADO: Companies IT Officer Admin Asst./Records Receptionist Temp. Receptionist - 15 full-time staff - 5 temporary staff - 20 staff in total Grants Finance Officer Finance Clerk 12 ANNUAL REPORT 2006/ 07 PIC COPYRIGHT: NAC, COURTESY: DRUM CAFE, MIKE TAYLOR»

15 STAFF ANALYSIS 31 MARCH MARCH 2006 Male Female Total % Male Female Total % MANAGERS African Indian Coloured White % % % % % % % % ADMINISTRATION African Indian Coloured White % % % % % % % % TEMPORARY African Indian Coloured White % % % % % % % % TOTAL % % 40% 60% 100% % 44% 56% 100% ANNUAL REPORT 2006/ 07 13

16 AUDIT AND RISK COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March AUDIT AND RISK COMMITTEE MEMBERS AND ATTENDANCE The Audit and Risk Committee consists of the members listed below. During the current year 7 formal meetings were held on the following dates: (1) 10/11/2006; (2) 30/11/2006; (3) 04/01/2007; (4) 20/01/2007; (5) 26/01/2007; (6) 09/02/2007; (7) 09/03/2007. Name Meetings attended Gender Race Date appointed Chairperson: Navin Lakha 7 Male Indian 22 September 2006 Zamindlela Bhengu 7 Male Black 22 September 2006 Bongani Tembe 0 Male Black 22 September 2006 In addition to the above members, the following persons attended committee meetings by standing invitation:» Chief Executive Officer» Chief Financial Officer» Representatives from the Auditor-General» Representatives from the internal auditor, Sekela Consulting. AUDIT AND RISK COMMITTEE RESPONSIBILITY The Audit and Risk Committee confirms that it has adopted appropriate formal terms of reference and has regulated its affairs in compliance with these terms of reference and discharged all its responsibilities contained therein. THE EFFECTIVENESS OF INTERNAL CONTROL The system of internal controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. In line with the PFMA and the King II Report on Corporate Governance requirements, Internal Audit provides the Audit and Risk Committee and management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements, the management letter of the external auditors, it was noted that no significant or material non-compliance with prescribed policies and procedures have been reported. Accordingly, we can report that the systems of internal control for the period under review were effective. EVALUATION OF ANNUAL FINANCIAL STATEMENTS The Audit and Risk Committee has:» Reviewed the audited annual financial statements to be included in the annual report with the external auditor and the Accounting Officer.» Reviewed the external auditor s management letter and management s response thereto» Reviewed significant adjustments resulting from the audit. The Audit and Risk Committee concurs with and accepts the external auditor s conclusions on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the external auditor. NAVIN LAKHA Chairperson of the Audit and Risk Committee 14 ANNUAL REPORT 2006/ 07

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18 COUNCIL REPORT Council has pleasure in presenting its report on the activities of the institution for the period 1 April 2006 to 31 March The Council was appointed by the Minister of Arts and Culture, Dr Z Pallo Jordan, in August 2006 and formally inaugurated in September The National Arts Council of South Africa (NAC) is a statutory body created in terms of the NAC Act (1997) and is a schedule 3A public entity in terms of the Public Finance Management Act. The NAC operates under the executive authority of the Department of Arts and Culture. Mandate The objects of the NAC are set out in the NAC Act (1997) as follows: a) To provide, and encourage the provision of, opportunities for persons to practise the arts; b) To promote the appreciation, understanding and enjoyment of the arts; c) To promote the general application of the arts in the community; d) To foster the expression of a national identity and consciousness by means of the arts; e) To uphold and promote the right of any person to freedom in the practice of the arts; f) To give the historically disadvantaged such additional help and resources as are required to give them greater access to the arts; g) To address historical imbalances in the provision of infrastructure for the promotion of the arts; h) To promote and facilitate national and international liaison between individuals and institutions in respect of the arts; i) To develop and promote the arts and to encourage excellence in regard to these. Statement of Council members responsibility Council members are responsible for the maintenance of adequate accounting records and the preparation and integrity of the annual financial statements and related information. The auditors are responsible for reporting on the fair presentation of the annual financial statements. The financial statements have been prepared in accordance with the South African Statements of Generally Recognised Accounting Practice. The institution s independent external auditors have audited the financial statements and their report appears on pages 20 and 21 of this annual report. Council is also responsible for the systems of internal control. These are designed to provide reasonable but not absolute assurance as to the reliability of the financial statements, and to adequately safeguard, verify, and maintain accountability for assets, and to prevent and detect material misstatements and losses. The systems are implemented and monitored by suitably trained personnel. Nothing has come to the attention of the members of Council to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. In addition, nothing has come to the attention of the members of Council to indicate that the institution will not remain a going concern for the foreseeable future. 16 ANNUAL REPORT 2006/ 07

19 Financial performance overview 2006/7 2005/6 (R m) (R m) Annual parliamentary appropriation Grants expired Other income Total income Operating expenditure Grants to the arts allocations Total expenditure Surplus/(Deficit) for the year ( )» Total income increased by 57%. This large increase is due to a 30% increase in the parliamentary appropriation and historical expired grants of R16,9m.» Operating costs increased by 15%.» Grants to the arts increased by 6%. This is due to the fact that over 95% of the 2005/6 parliamentary appropriation was allocated to grants to the arts this ratio dropped to 78% in 2006/7.» A cash surplus of R24,8m resulted in 2006/7 after a deficit of R1,5m for 2005/6. ANNUAL REPORT 2006/ 07 17

20 COUNCIL MEMBERS AND ATTENDANCE Council meetings were held 3 times during the year on the following dates: (1) 11/11/2006; (2) 14/01/2007; (3) 17/02/2007 Name Meetings attended Gender Race Date appointed Chairperson: NICHOLAS MOTSATSE 3 Male Black 11 August 2006 Deputy Chair: BRENDA MADUMISE 3 Female Black 11 August 2006 Exco Member: DELECIA FORBES 3 Female Coloured 11 August 2006 Exco Member: DAVID BUNN 2 Male White 11 August 2006 Exco Member: SELLO GALANE 2 Male Black 11 August 2006 Exco Member: CHARLES MABASO 1 Male Black 11 August 2006 Exco Member: KIREN THATHIAH 3 Male Indian 11 August 2006 NAVIN LAKHA 3 Male Indian 11 August 2006 ZAMINDLELA BHENGU 3 Male Black 11 August 2006 BONGANI MTHEMBU 1 Male Black 11 August 2006 JOHNNY MASILELA 3 Male Black 11 August 2006 MARTIN SCHONBERG 3 Male White 11 August 2006 GIEP VAN ZYL 3 Male White 11 August 2006 MDUDUZI XAKAZA 2 Male Black 11 August 2006 BENCH MKONTO 1 Male Black 11 August 2006 Northern Cape Representative: PRINCESS BUSHULA 2 Female Black 11 August 2006 North West Representative: CELESTE MATTHEWS 1 Female Coloured 11 August 2006 Western Cape Representative: VERA MOTSILANYANE 2 Female Black 11 August 2006 Free State Representative: THOKO NOGABE 3 Female Black 11 August 2006 Gauteng Representative: DIRKIE OFFRINGA 3 Female White 11 August 2006 Mpumalanga Representative: MOYAHABO PHOSA 3 Female Black 11 August 2006 Limpopo Representative: PATRICK SHAI 2 Male Black 11 August 2006 Kwa-Zulu Natal Representative: PHYLLIS ZUNGU 3 Female Black 11 August 2006 EXECUTIVE COMMITTEE MEMBERS AND ATTENDANCE The Executive Committee (EXCO) held meetings on 6 occasions on the following dates: (1) 10/10/07; (2) 10/11/2006; (3) 30/11/2006; (4) 25/01/2007; (5) 27/02/2007; (6) 29/03/2007. Name Meetings attended Gender Race Date appointed Chairperson: NICHOLAS MOTSATSE 4 Male Black 22 September 2006 Deputy Chairperson: BRENDA MADUMISE 6 Female Black 22 September 2006 DAVID BUNN 5 Male White 22 September 2006 SELLO GALANE 5 Male Black 22 September 2006 DELECIA FORBES 2 Female Black 22 September 2006 CHARLES MABASO 3 Male Black 22 September 2006 KIREN THATHIAH 6 Male Indian 22 September ANNUAL REPORT 2006/ 07

21 ARTISTIC ADVISORY PANEL CHAIRPERSONS The Chairpersons of the panels elected by the Council are: Music and Opera Literature Theatre and Musical Theatre Dance and Choreography Visual Art Craft Multi-discipline THOKO NOGABE JOHNNY MASILELA PATRICK SHAI MARTIN SCHONBERG MDUDUZI XAKAZA PHYLLIS ZUNGU NICHOLAS MOTSATSE BUSINESS ADDRESS POSTAL ADDRESS 66 Margaret Mcingana Street, PO Box 500 1st Floor Newtown Newtown Johannesburg Johannesburg EVENTS SUBSEQUENT TO FINANCIAL POSITION SHEET DATE No material facts or circumstances have occurred between the accounting date and the date of this report that would have had an impact on the financial affairs of the Council.

22 REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE ANNUAL FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF THE NATIONAL ARTS COUNCIL OF SOUTH AFRICA FOR THE YEAR ENDED 31 MARCH 2007 REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the accompanying annual financial statements of the National Arts Council of South Africa (NAC) which comprise the statement of financial position as at 31 March 2007, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 20 to 39 Responsibility of the accounting authority for the financial statements 2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Statements of Generally Accepted Accounting Practice and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA). This responsibility includes:» designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error» selecting and applying appropriate accounting policies» making accounting estimates that are reasonable in the circumstances. Responsibility of the Auditor-General 3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) and section 17(1) of the National Arts Council Act,1997 (Act No.56 of 1997), my responsibility is to express an opinion on these financial statements based on my audit. 4. I conducted my audit in accordance with the International Standards on Auditing and General Notice 647 of 2007, issued in Government Gazette No of 25 May Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. 5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. 6. An audit also includes evaluating the:» appropriateness of accounting policies used» reasonableness of accounting estimates made by management» overall presentation of the financial statements. 7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Basis of accounting 8. The National Arts Council s policy is to prepare financial statements on the basis of accounting determined by the National Treasury as set out in accounting policy note. Opinion 9. In my opinion, the financial statements present fairly, in all material respects, the financial position of The National Arts Council of South Africa as at 31 March 2007 and its financial performance and cash flows for the year then ended, in accordance with the basis of accounting as described in note 1 and in the manner required by the PFMA. 20 ANNUAL REPORT 2006/ 07

23 OTHER MATTERS I draw attention to the following matters that are ancillary to my responsibilities in the audit of the financial statements: Internal control 10.The current NAC Board was only appointed in August The NAC had an acting CEO for almost two years after which the CEO was appointed. The late finalisation of the governance structure had a negative impact on the implementation of the HR strategy and the process of filling vacancies. Value for money 11.As reported in the previous financial year, the vacancy rate at NAC was still high. At the end of the financial year, the vacancy rate was 25%. The optimal staff complement to ensure efficient and effective functioning of the NAC was 28. Although some of the vacant positions were filled on a temporary basis, various control functions could not be adequately segregated due to staff capacity. OTHER REPORTING RESPONSIBILITIES Reporting on performance information 12. The performance information for the NAC was not audited as this was not set out in the annual report in the manner required by Treasury Regulations Responsibility of the Auditor-General 14.I conducted my engagement in accordance with section 13 of the Public Audit Act, 2004 (Act No. 25 of 2004) read with General Notice 646 of 2007, issued in Government Gazette No of 25 May In terms of the foregoing my engagement included performing procedures of an audit nature to obtain sufficient appropriate audit evidence about the performance information and related systems, processes and procedures. The procedures selected depend on the auditor s judgment. 16. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit findings. Audit finding 17. I was unable to obtain sufficient appropriate audit evidence in relation to the performance information of NAC because the system relevant for generating information on strategic objectives of NAC could not provide adequate information for the purposes of the evaluation. APPRECIATION 18. The assistance rendered by the staff of the National Arts Council of South Africa during the audit is sincerely appreciated. Responsibilities of the accounting authority for public entities 13. The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure that the annual report and audited financial statements fairly present the performance against predetermined objectives of the public entity. MR P STAMPER for Auditor-General Johannesburg, 31 July 2007 ANNUAL REPORT 2006/ 07 21

24

25 2006/2007ANNUAL FINANCIAL STATEMENTS

26 NATIONAL ARTS COUNCIL OF SOUTH AFRICA Association Incorporated under the National Arts Council Act, 1997 (Act No. 56 of 1997) Incorporated in terms of Section 21 of the Companies Act, 1973 (Act 61 of 1973 ) (Registration number 1989 / / 08) ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2007 The financial statements set out on pages were approved by the Accounting Authority on 31 May 2007 and are signed on its behalf by: NICHOLAS MOTSATSE Chairman SEELAN NAIDOO Chief Executive Officer 24 ANNUAL REPORT 2006/ 07

27 NATIONAL ARTS COUNCIL OF SOUTH AFRICA STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2007 Note R R ASSETS NON - CURRENT ASSETS Property, plant and equipment 3 3,324,401 3,405,649 CURRENT ASSETS 64,052,512 51,901,035 Accounts receivable 4 684,824 1,373,000 Cash and cash equivalents 5 63,367,688 50,528,035 TOTAL ASSETS 67,376,913 55,306,684 NET ASSETS TOTAL NET ASSETS 29,940,143 5,169,611 Accumulated surplus 29,940,143 5,169,611 LIABILITIES CURRENT LIABILITIES 37,436,770 50,137,073 Accounts payable 6 199, ,877 Provisions 7 276, ,827 Projects and bursaries payable 8 34,502,249 45,568,187 Administered Funds 9 2,458,431 4,163,182 TOTAL NET ASSETS AND LIABILITIES 67,376,913 55,306,684 ANNUAL REPORT 2006/ 07 25

28 NATIONAL ARTS COUNCIL OF SOUTH AFRICA STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2007 Note R R REVENUE 83,288,180 53,033,458 Grants received 62,081,000 47,894,000 Grants and initiatives expired 8 16,935,180 2,170,508 Interest received 3,892,448 2,614,774 Other income 379, ,176 EXPENDITURE 58,517,648 54,510,482 Agreed distribution transferred to project and bursary creditors and initiatives 10 48,202,957 45,571,768 Operating costs 10,314,691 8,938,714 Surplus / ( Deficit ) for the year 24,770,532 (1,477,024) NATIONAL ARTS COUNCIL OF SOUTH AFRICA STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2007 Accumulated surplus R Total R Balance at 1April ,646,635 6,646,635 Net deficit for the year (1,477,024) (1,477,024) Balance at 31 March ,169,611 5,169,611 Surplus for the year 24,770,532 24,770,532 Balance at 31 March ,940,143 29,940, ANNUAL REPORT 2006/ 07

29 NATIONAL ARTS COUNCIL OF SOUTH AFRICA CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2007 Note R R Operating activities Cash receipts from funders 80,083,908 50,754,025 Total income 83,288,180 53,033,458 Decrease / ( Increase ) in Accounts Receivable 688, ,341 Interest Received (3,892,448) (2,614,774) Cash paid to suppliers, employees and projects 71,030,609 45,917,635 Total expenses 58,517,648 54,510,482 Depreciation (187,342) (271,552) Decrease in Accounts Payable 62, ,068 (Increase ) / Decrease in Provisions (133,307) 293,867 (Decrease ) / Increase in Projects and Busaries Payable 11,065,938 (8,246,971) (Decrease ) / Increase in Administered Funds 1,704,751 (1,356,259) Net cash generated from operating activitie 11 9,053,299 4,836,390 Investing activities Interest received 3,892,448 2,614,774 Purchases of property, plant and equipment (106,094) (187,342) Net cash flow from investing activities 3,786,354 2,427,432 Net increase in cash and cash equivalents 12,839,653 7,263,822 Cash and cash equivalents at beginning of year 50,528,035 43,264,213 Cash and cash equivalents at end of year 5 63,367,688 50,528,035 ANNUAL REPORT 2006/ 07 27

30 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH ACCOUNTING POLICIES BASIS OF PREPARATION The financial statements are presented in rands. They are prepared on the historical cost basis. The financial statements have been prepared taking into accounting the requirements of the Public Finance Management Act (PFMA), Act No. 1 The financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practices (GAAP) including any interpretations of such Statements issued by the Accounting Standards Board replacing the equivalent GAAP Statement as follows: The preparation of financial statements in conformity with GAAP and GRAP require the use of certain critical financial statements accounting estimates. It also requires management to exercise its judgment in the process of applying the entity s accounting policies. Standard of GRAP Replaced by Statement of GAAP GRAP 1: Presentation of financial statements AC 101: Presentation of financial statements GRAP 2: Cash flow statements AC 118: Cash flow statements GRAP 3: Accounting policies, changes in accounting estimates and errors AC 103: Accounting policies, changes in accounting estimates and errors The recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material differences in items presented and disclosed in the financial statements. The implementation of GRAP1,2 & 3 has resulted in the following significant changes: Standard of GRAP Replacement Statement of GAAP Statement of financial performance Statement of financial position Statement of changes in net assets Net Assets Surplus/deficit for the period Accumulated surplus/deficit Contributions from owners Distribution to owners Reporting date Income Statement Balance sheet Statement of changes in equity Equity Profit/loss for the period Retained earnings Share capital Dividends Balance sheet date The cash flow statement has been prepared in accordance with the direct method. Specific information has been presented separately on the statement of financial position such as: a. Receivables and non exchange transaction including taxes and transfers. b. Taxes and transfers payable c. Trade and other payables from non exchange transactions Amount and nature of any restrictions on cash balance is required. 28 ANNUAL REPORT 2006/ 07

31 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007 MEASUREMENT Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognition these instruments are measured as set out below. CASH AND CASH EQUIVALENTS Cash and cash equivalents are measured at fair value. 1.1 REVENUE RECOGNITION Revenue represents the subsidy income received from the Department of Arts and Culture, interest received on investments and rental income. The total amount of the subsidy received for the period is recognised as revenue in the period. Interest is recognised on a time proportion basis as it accrues, unless collectabillity is in doubt. 1.2 OTHER FUNDS RECEIVED Funds received for specific projects administered on behalf of the Department of Arts and Culture are recognised as administered funds when received and is then reversed to this account when the funds are actually paid for these specific projects. 1.3 IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including: Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised. All irregular and fruitless and wasteful expenditure is charged against income in the period in which they are incurred. 1.4 REPORTING CURRENCY The Financial Statements of the National Arts Council of South Africa is stated in South African Rands. 1.5 PROPERTY, PLANT AND EQUIPMENT Land and buildings and paintings are carried at historical cost. All other plant and equipment are stated at cost less depreciation. Depreciation is calculated in the straight line method so as to write off the cost of each asset to its estimated residual value over the useful lives of the assets. The annual depreciation rates are: Banners 20.00% Computers 33.33% Furniture and Fittings 16.67% Office Equipment 20.00% Library Books 33.33% Motor Vehicles 20.00% ANNUAL REPORT 2006/ 07 29

32 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH IMPAIRMENT At each balance sheet date the NAC review the carrying amounts of its tangible assets to determine whether there is any indication that those assets may be impaired. If any such indication exist the recoverable amount of assets is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount is determined for the cashgenerating unit to which the asset belongs. If the recoverable amount of the asset (cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are immediately recognised as an expense. Where the impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying that would have been determined has no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately. 1.7 RETIREMENT BENEFIT FUNDS The Council operates a defined contribution plan, the assets of which are generally held in separate trustee-administered funds. The plan is generally funded by payments from the Council and employees. Payments to defined contribution retirement benefit plans are charged to the income statement in the year to which they relate. 1.8 TAXATION The Council is exempt from income tax in terms of Section 10(1) (cb)(i)(dd) of the Income Tax Act. 1.9 EXPIRED PROJECTS Expired projects relates to funding where contractual obligations were not fulfilled CASH AND CASH EQUIVALENTS Cash includes cash on hands and cash with banks. Cash equivalents are short term highly liquid investments that are held with registered banking institutions with maturities of one month that are subject to an insignificant risk of changing in value. For purposes of the cash flow statement, cash and cash equivalents comprise of cash on hand and deposits held at call with banks PROJECTS AND GRANTS Projects and grants are allocated and accrued for in the current financial period as per the approved funding contracts and special projects funded FINANCIAL INSTRUMENTS Financial instruments carried on the balance sheet include cash and bank balances, receivables and payables. Where relevant, the particular recognition methods adopted are disclosed in the individual policy statements associated with each item. 30 ANNUAL REPORT 2006/ 07

33 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH PROVISIONS Provisions are recognised when the Council has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle obligation, and a reliable estimate of the amount of the obligation can be made OPERATING LEASES Leases where the lessor retains the risks and rewards of ownership of the underlying asset are classified as operating leases. Payments made under operating leases are charged against income COMPARATIVES Where necessary, comparative figures have been adjusted to conform changes in presentation in the current year. ANNUAL REPORT 2006/ 07 31

34 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH OPERATING COSTS Note R R Deficit from operations has been arrived at after taking into account the following: Auditors Remuneration Audit Fees 388, , , ,942 Fees for services Consulting fees 700, ,037 Depreciation - Banners 4, Furniture and fittings 19,784 20,833 - Office equipment 58,342 54,344 - Computer equipment 75, ,263 - Motor vehicles 29,111 29, , ,552 Director s and senior staff emoluments 15 1,818,164 1,252,246 Staff costs 5,009,158 2,053,569 Included in staff costs are: - Defined contribution in plan expense 203, ,394 Operating lease rentals - Equipment 347, ,692 Staff Compliment Management 3 4 Other Staff ANNUAL REPORT 2006/ 07

35 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH PROPERTY, PLANT AND EQUIPMENT Cost Accumulated Net Book Depreciation Value 2007 R R R Land and buildings 3,017,322-3,017,322 Banners 17,670 4,417 13,253 Furniture and fittings 413, ,517 48,800 Library books 1,470 1,470 - Office equipment 398, , ,052 Paintings 6,270-6,270 Computers 1,107,492 1,017,605 89,887 Motor vehicle 145, ,742 38,817 5,107,572 1,783,171 3,324,401 RECONCILIATION Opening Scrapped Closing Balance Additions or disposals Balance R R R R Cost Land and buildings 3,017, ,017,322 Banners 17,670 17,670 Furniture and fittings 413, ,317 Library books 1, ,470 Office equipment 344,933 53, ,472 Paintings 6, ,270 Computers 1,072,607 34,885-1,107,492 Motor vehicle 145, ,559 5,001, ,094-5,107,572 Opening Closing Balance Depreciation Disposals Balance R R R R Accumulated depreciation Furniture and fittings 344,733 19, ,517 Banners - 4,417-4,417 Library books 1, ,470 Office equipment 230,078 58, ,420 Computers 941,917 75,688-1,017,605 Motor vehicle 77,631 29, ,742 1,595, ,342-1,783,171 Land & Buildings refers to: ERF 138 Newtown Township 66 Margaret Mcingana Street. ANNUAL REPORT 2006/ 07 33

36 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007 Note R R 4. ACCOUNT RECEIVABLE Staff debtors 31,392 53,460 Deposits 2,250 2,250 Mmino Project 471,056 1,138,182 Tenant for Rent 60,474 54,398 Dac Debtor 74, ,877 Interest receivable 44,775 8, ,824 1,373, CASH AND CASH EQUIVALENTS Cash at bank current account 8,230,168 5,414,117 Cash at bank call account 55,137,244 45,113,918 Cash on hand ,367,688 50,528, ACCOUNTS PAYABLE Salary Control - - Creditors 135, ,220 PAYE Payable 8, ,220 Other 55,963 27, , , PROVISIONS Provisions for all staff leave comprises of:- Opening Balance 142, ,694 Created during the year 133,308 - Utilised during the year - (293,867) Closing Balance 276, , ANNUAL REPORT 2006/ 07

37 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH PROJECTS AND BURSARIES PAYABLE R R Balance at beginning of year 45,568,187 37,321,216 NAC Grants expired (16,935,180) (2,170,508) Expensed from income statement 48,202,957 45,571,768 Allocation from administered funds 1,000,000 4,645,745 DAC Allocation - 250,000 Disbursements (43,333,715) (40,020,034) 34,502,249 45,568, ADMINISTERED FUNDS Balance at beginning of year 4,163,182 2,806,922 Fund Received - 6,430,000 Allocations made (1,000,000) (4,615,745) Payments made (704,751) (457,995) Balance at end of the year 2,458,431 4,163,182 List of Projects allocated under Administered Funds 1. Melodi Jazz Foundation - 1,000, Morethetho Rhythm of South Africa - 500, Memeza - 800, SA Literary Awards - 1,000, Moutlatse Heritage Trust - 630, Medu Nakeng - 500, Ensemble Refugium - 185, Johannesburg Youth Orchestra 500, Free State Symphony Orchestra 500,000-1,000,00 4,615,745 ANNUAL REPORT 2006/ 07 35

38 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH PROJECT AND BURSARY CREDITORS AND INITIATIVES R R The following projects, bursaries and initiatives relates to the following disciplines: Multi-discipline 6,725,920 9,021,250 Craft 1,203,367 2,177,025 Dance 7,269,100 8,370,160 Literature 2,145,449 2,691,649 Music 20,740,710 7,629,995 Theatre 8,281,913 11,870,424 Visual art 1,826,498 3,811,265 48,202,957 45,571, RECONCILIATION OF (DEFICIT)/SURPLUS FOR THE YEAR TO CASH GENERATED FROM /(UTILISED IN) OPERATIONS R R Surplus/(Deficit) for the year 24,770,532 (1,477,024) Adjusted for: Depreciation 187, ,552 Interest received (3,846,114) (2,614,774) Operating surplus/(deficit) before working capital changes 21,065,426 (3,820,246) Working capital changes (12,012,127) 8,656,636 Decrease in accounts receivable 688, ,341 Decrease in accounts payable (62,738) (988,068) Decrease in provisions 133,307 (293,867) Decrease in projects and bursaries payable (11,065,938) 8,246,971 Decrease /(Increase) in administered funds (1,704,753) 1,356,259 9,053,299 4,836, ANNUAL REPORT 2006/ 07

39 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH RETIREMENT BENEFIT OBLIGATIONS Defined contribution plans The council operates a defined contribution retirement benefit plan for all qualifying employees. The assets of the scheme are held in funds under the control of trustees, separately from those of the council. Scheme assets primarily consist of listed shares and property trust units, and fixed income securities. The total cost charged to income of R (2006: R ) represents contributions payable to the scheme by the council according to the rates specified in the rules of the scheme. 13. LEASE COMMITMENTS R R Due within one year 353, ,891 Due within 2-5 years 805,688 1,147,579 1,159,573 1,489,470 The operating leases relate to office equipment. The two lease agreements were entered into during 2005/ 2006 and have remaining operational periods of between three and a half year and four years, with an option of renewal at the end of the period. There are no escalations in the lease amounts for the entire lease period and the Council therefore pays a fixed monthly amount. 14. CONTINGENT LIABILITY The surplus of R will be utilised over the next three years in line with the NAC 's Strategic Plan for the year 2007/2008, 2008/2009 and 2009/2010. This resulted from a timing difference over the past three financial year ends as a result of costs saving in the administration expenses and expired projects. ANNUAL REPORT 2006/ 07 37

40 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH REMUNERATION Basic Bonus Gratuity Honorarium Leave Other Medical Travel Total Total Salary Pay Allowance Aid Allowance R R R R R R R R R R Non Executive , , ,500 Directors Chief Executive 120, , ,000 - Officer Acting Chief 440,793 36, ,638-78, , ,203 Executive Officer Chief Operating 84, ,756-17, ,444 - Officer Chief Financial 428,976 47, , , ,543 Officer 1,074,665 84, , , ,480 1,818,164 1,252, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE. No material losses through criminal conduct, or irregular, friutless and wasteful expenditure were incurred during the year ended 31 March, RETIREMENT MEDICAL BENEFITS The National Arts Council is not liable for post employment medical benefits for any of its employees. 38 ANNUAL REPORT 2006/ 07

41 NATIONAL ARTS COUNCIL OF SOUTH AFRICA NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND KEY ASSUMPTIONS Estimates, judgments and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management s best knowledge of current events and actions, actual results may ultimately differ from these estimates. The project makes estimates, judgments and assumptions concerning the future. Those that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Impairment of assets The project tests whether assets have suffered any impairment, in accordance with the accounting policy stated in note 1.6 The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. Estimates are based on management s interpretation of market forecasts. 19. TOTAL REVENUE CONSISTS OF: R R Grants Received 62,081,000 47,984,000 Grants received are monies received from the Department of Arts and Culture (DAC). Grants and Initiatives Expired 16,935,180 2,170,508 Grants and initiative expired income is recognized when the obligations to make a project payment no longer exists. Interest Received 3,892,448 2,614,774 Interest received is from bank from the current and call accounts. Other Income 379, ,176 Other income is made up of rental tenant. 83,288,180 53,033, EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE Management is not aware of any material matter or circumstances arising since the end of the financial year. ANNUAL REPORT 2006/ 07 39

42 ARTS FUNDING REPORTS

43 FUNDING OVERVIEW SUMMARY Funding type Number of entities funded Funding allocated (Rands) Company funding Bursary funding to institutions Bursary funding to individuals Project funding to organizations Project funding to individuals DAC ring-fenced funding (Orchestras+ other projects) Total DISTRIBUTION OF FUNDING BY ARTS DISCIPLINE 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Other Crafts Visual Art Literature Multi-Discipline Dance & Choreography Theatre & Musical Music & Opera Series 1 310,013 1,203,367 1,826,485 2,145,449 6,755,920 7,438,518 8,941,913 20,581,292 DISTRIBUTION OF FUNDING BY PROVINCE 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 North West Northern Cape Mpumalanga Limpopo Province Freestate Eastern Cape KwaZulu Natal Western Cape Gauteng Series1 185, , , ,920 2,245,000 4,042,856 6,373,665 13,636,178 20,934,215 ANNUAL REPORT 2006/ 07 41

44 REPORT OF COMPANY FUNDING Registration Organisation Name Amount Province Discipline AC/31/06 SWII Arts Amendment 300,000 Eastern Cape Multi-Discipline DC/32/06 First Physical Theatre Company 300,000 Eastern Cape Dance & Choreography MC/35/06 Eastcape Opera Company 500,000 Eastern Cape Music and Opera MC/44/06 Eastern Cape Philharmonic Society 500,000 Eastern Cape Music and Opera TC/37/06 UBOM! Eastern Cape Drama Company 250,000 Eastern Cape Theatre and Musical DC/50/06 Masutsa Dance Theatre 150,000 Freestate Dance & Choreography MC/008/03 Opera Free State -89,000 Freestate Music and Opera MC/39/06 Opera Free State 650,000 Freestate Music and Opera MC/40/06 Free State Symphony Orchestra 500,000 Freestate Music and Opera AC/23/06 Walking Gusto Productions 200,000 Gauteng Multi-Discipline Multimedia Dance Theatre AC/24/06 Sibikwa Community Theatre 500,000 Gauteng Multi-Discipline AC/25/06 Joubert Park Project 300,000 Gauteng Multi-Discipline AC/28/06 ESKIA Institute 500,000 Gauteng Multi-Discipline AC/32/06 National Youth Development Outreach 300,000 Gauteng Multi-Discipline AC/33/06 Johannesburg Concerts 300,000 Gauteng Multi-Discipline DC/13/06 South African Ballet Theatre 500,000 Gauteng Dance & Choreography DC/33/06 Forgotten Angle Theatre Collaborative 200,000 Gauteng Dance & Choreography DC/34/06 Ballet Theatre Afrikan 250,000 Gauteng Dance & Choreography DC/39/06 Inzalo Dance Theatre Company 250,000 Gauteng Dance & Choreography DC/40/06 Tribhangi Dance Theatre 250,000 Gauteng Dance & Choreography DC/41/06 R K Dance Theatre 200,000 Gauteng Dance & Choreography DC/44/06 Thabisong Song & Dance Troupe 150,000 Gauteng Dance & Choreography DC/46/06 Moving Into Dance Mophatong 500,000 Gauteng Dance & Choreography DC/51/06 Vuyani Dance Theatre 250,000 Gauteng Dance & Choreography DC/52/06 Tshwane Dance Theatre 250,000 Gauteng Dance & Choreography DC/54/06 Unomthandazo Theatre Company 150,000 Gauteng Dance & Choreography LC/03/06 Zanendaba Storytellers 500,000 Gauteng Literature LC/04/06 Sled - Sign Language Education And Development 250,000 Gauteng Literature MC/25/06 Johannesburg Youth Orchestra 500,000 Gauteng Music and Opera MC/26/06 Johannesburg Music Initiative 400,000 Gauteng Music and Opera MC/27/06 The Johannesburg Festival Orchestra 300,000 Gauteng Music and Opera MC/28/06 Pro Musica Productions 300,000 Gauteng Music and Opera MC/29/06 Soweto Youth Music Development 150,000 Gauteng Music and Opera MC/30/06 Black Tie Ensemble 200,000 Gauteng Music and Opera MC/32/06 Zimology Music Development Institute 200,000 Gauteng Music and Opera MC/33/06 Melodi Music Trust 100,000 Gauteng Music and Opera MC/34/06 African Renaissance Opera Production 200,000 Gauteng Music and Opera MC/37/06 Opera Africa 200,000 Gauteng Music and Opera MC/38/06 Medu - Nakeng Trust Foundation 150,000 Gauteng Music and Opera MC/41/06 African Cultural Organisation of South Africa 300,000 Gauteng Music and Opera MC/42/06 Johannesburg Philharmonic Orchestra 300,000 Gauteng Music and Opera TC/31/06 Committed Artists Theatrical Company 400,000 Gauteng Theatre and Musical TC/32/06 Victory Sonqoba Theatre Company 300,000 Gauteng Theatre and Musical TC/33/06 National Community Theatre for Education 300,000 Gauteng Theatre and Musical & Development Network TC/35/06 Soweto Youth Drama Society 250,000 Gauteng Theatre and Musical TC/36/06 Johannesburg Youth Theatre 150,000 Gauteng Theatre and Musical 42 ANNUAL REPORT 2006/ 07

45 REPORT OF COMPANY FUNDING Registration Organisation Name Amount Province Discipline TC/39/06 Vukani Community Theatre 150,000 Gauteng Theatre and Musical TC/40/06 Dramatists Against Crime 150,000 Gauteng Theatre and Musical TC/41/06 Abangani Theatre Group 200,000 Gauteng Theatre and Musical TC/43/06 Brighter Future Theatre Productions 100,000 Gauteng Theatre and Musical TC/44/06 Phallang Theatre Collaboration 100,000 Gauteng Theatre and Musical TC/45/06 Melisizwe Community Theatre 300,000 Gauteng Theatre and Musical TC/46/06 Mzini Dramatic Arts 200,000 Gauteng Theatre and Musical TC/48/06 Soyikwa Institute of African Theatre 200,000 Gauteng Theatre and Musical TC/50/06 Utlwanang Theatre 200,000 Gauteng Theatre and Musical TC/51/06 Mthakathi Theatre 200,000 Gauteng Theatre and Musical VC/03/06 Visual Arts Network of South Africa 250,000 Gauteng Visual Art AC/26/06 KwaMashu Community Advancement Projects K-CAP 300,000 KwaZulu Natal Multi-Discipline AC/34/06 Eager Artists 300,000 KwaZulu Natal Multi-Discipline DC/36/06 Siwela Sonke Dance Theatre 300,000 KwaZulu Natal Dance & Choreography DC/42/06 Flat Foot Dance Company 200,000 KwaZulu Natal Dance & Choreography MC/36/06 Ustad Ravi Foundation for Indian Music 100,000 KwaZulu Natal Music and Opera MC/43/06 Sangeet Vidya Institute (S.A) 100,000 KwaZulu Natal Music and Opera TC/34/06 KickStart Theatre Company 250,000 KwaZulu Natal Theatre and Musical AC/29/06 Exploring Creatives 200,000 Limpopo Province Multi-Discipline TC/53/06 Mpumalanga Performing Arts Laboratory 300,000 Mpumalanga Theatre and Musical DC/53/06 Namjive 250,000 Northern Cape Dance & Choreography AC/30/06 Baxter Theatre 500,000 Western Cape Multi-Discipline DC/35/06 La Rosa Spanish Dance Theatre 250,000 Western Cape Dance & Choreography DC/37/06 Cape Town City Ballet 500,000 Western Cape Dance & Choreography DC/43/06 Remix Dance Company 200,000 Western Cape Dance & Choreography DC/47/06 Jazzart Dance Theatre 500,000 Western Cape Dance & Choreography MC/17/06 Cape Town Opera 500,000 Western Cape Music and Opera TC/38/06 Siyasanga Cape Town Theatre Company 200,000 Western Cape Theatre and Musical TC/42/06 Maynardville Theatre Trust 200,000 Western Cape Theatre and Musical TC/47/06 New Africa Theatre Association 100,000 Western Cape Theatre and Musical TC/49/06 From The Hip: Khulumakahle 100,000 Western Cape Theatre and Musical TC/54/06 Magnet Theatre 260,000 Western Cape Theatre and Musical Total 21,221,000 ANNUAL REPORT 2006/ 07 43

46 REPORT OF BURSARY FUNDING TO INSTITUTIONS Registration Organisation Name Amount Province Discipline A/002/06/B Arts and Media Access Centre 80,000 Western Cape Multi-Discipline C/010/06/B Tshwane University of Technology 105,000 Gauteng Crafts C/011/06/B LISOF (PTY) LTD 68,250 Gauteng Crafts C/012/06/B University of Johannesburg 52,500 Gauteng Crafts D/010/06/B University of Cape Town : School of Dance 80,000 Western Cape Dance & Choreography M/011/06/B University of Venda 80,000 Limpopo Province Music and Opera M/012/06/B Central Johannesburg College 80,000 Gauteng Music and Opera M/013/06/B Welcome Soweto School of Music 50,000 Gauteng Music and Opera M/014/06/B Nelson Mandela Metropolitan University 80,000 Eastern Cape Music and Opera M/024/06/B Nelson Mandela Metropolitan University 100,000 Eastern Cape Music and Opera M/025/06/B University of the Witwatersrand - Wits School of Arts 100,000 Gauteng Music and Opera M/026/06/B Durban Music School 100,000 KwaZulu Natal Music and Opera T/017/06/B Market Theatre Laboratory 50,000 Gauteng Theatre and Musical T/018/06/B University of the Witwatersrand - Wits School of Arts 50,000 Gauteng Theatre and Musical T/019/06/B University of the Free State 50,000 Freestate Theatre and Musical T/043/04/B New Africa Theatre Association 10,000 Western Cape Theatre and Musical V/031/06/B The Design School Southern Africa 50,000 Gauteng Visual Art V/032/06/B Cape Peninsula University of Technology 50,000 Western Cape Visual Art V/033/06/B Vaal University of Technology 100,000 Freestate Visual Art V/034/06/B The Ruth Prowse School Of Art 60,000 Western Cape Visual Art V/035/06/B Wits School of Arts - University of the Witwatersrand 50,000 Gauteng Visual Art Total 1,445,750

47 REPORT OF BURSARY FUNDING TO INDIVIDUALS Registration First Name Last Name Amount Province Discipline A/009/06/B Mkhanyisi Nxoko 15,000 Eastern Cape Multi-Discipline L/004/06/B Vuyokazi Selanti 10,000 Eastern Cape Literature L/005/06/B Shaheed Hendricks 20,000 Eastern Cape Literature L/035/05/B Zola Welcome Peter 15,000 Eastern Cape Literature M/006/06/B Gustav Barnard 30,000 Eastern Cape Theatre and Musical V/024/06/B Kevin Leathem 15,000 Eastern Cape Visual Art V/028/06/B Nangamso N. Tshangana 10,000 Eastern Cape Visual Art D/004/06/B Mafa T Makhubalo 30,000 Freestate Dance & Choreography T/012/06/B Wilhelm van der Walt 10,000 Freestate Theatre and Musical A/007/06/B James French 14,131 Gauteng Multi-Discipline A/008/06/B Lee Walters 15,000 Gauteng Multi-Discipline C/002/06/B Ansule Westcott 10,000 Gauteng Crafts C/003/06/B Nthabiseng Molefi 10,000 Gauteng Crafts C/004/06/B Sindiswa Kwenaite 7,000 Gauteng Crafts C/005/06/B Zilindile C Qwabe 10,000 Gauteng Crafts C/007/06/B Tsholofelo Moche 10,000 Gauteng Crafts C/008/06/B Louise Van Niekerk 10,000 Gauteng Crafts C/009/06/B Jonathan Young 10,000 Gauteng Crafts D/009/06/B Sidney Agnew 27,000 Gauteng Dance & Choreography M/009/06/B Absolum D Nkosi 10,000 Gauteng Music and Opera M/022/06/B Bonginkosi Given Mpupu 8,000 Gauteng Music and Opera T/014/06/B Pholo Mokele 50,000 Gauteng Theatre and Musical T/016/06/B Puleng Mabuya 100,000 Gauteng Theatre and Musical V/021/06/B Ntuthuko Shabangu 10,000 Gauteng Visual Art V/023/06/B Zamantungwa N Khumalo 15,000 Gauteng Visual Art V/025/06/B Rosalind Cleaver 15,000 Gauteng Visual Art V/027/06/B Mandlangempisi D Nhleko 10,000 Gauteng Visual Art V/030/06/B Tracey Rose 62,650 Gauteng Visual Art V/040/06/B Matshepo P Matoba 15,000 Gauteng Visual Art M/014/04/B Mduduzi Glenton Xulu 30,000 KwaZulu Natal Music and Opera V/008/03/B Bhekamantungwa Khumalo 3,750 KwaZulu Natal Visual Art V/020/06/B Sabelo Welcome Vilane 10,000 KwaZulu Natal Visual Art A/001/06/B Syneth Nyandeni 81,360 Mpumalanga Multi-Discipline V/026/06/B Boitumelo Kembo 15,000 North West Visual Art T/002/06/B Andrea Van Meygaarden 80,000 Other Theatre and Musical V/019/06/B Sean Slemon 37,650 Other Visual Art D/003/06/B Frieda Mennen 25,000 Western Cape Dance & Choreography L/006/06/B Helen Collett 14,220 Western Cape Literature Total 870,761 ANNUAL REPORT 2006/ 07 45

48 REPORT OF PROJECT FUNDING TO INDIVIDUALS Registration First Name Last Name Amount Province Discipline C/050/06 Stella N Qalase 9,350 Eastern Cape Crafts C/057/06 Yoliswa Mtengwane 17,271 Eastern Cape Crafts L/173/06 Nonqubela Rasmeni 15,000 Eastern Cape Literature V/030/06 Christine Dixie 14,235 Eastern Cape Visual Art GT/36/06 Simthembile Lamla 60,000 Freestate Theatre and Musical L/038/06 Daniel T Moroe 20,000 Freestate Literature L/058/06 Skeelo Khumalo 15,000 Freestate Literature L/132/06 Nkomile Tsuluba 15,000 Freestate Literature M/002/06 Lomon De Jager 12,000 Freestate Music and Opera T/024/06 Moiloa Lesenyeho 30,000 Freestate Theatre and Musical T/025/06 Goitsemang Pholo 30,000 Freestate Theatre and Musical T/026/06 Hamilton Peterson 30,000 Freestate Theatre and Musical V/041/06 Penny George 12,000 Freestate Visual Art A/032/06 Ramadimetja D Maphakela 13,560 Gauteng Multi-Discipline A/109/06 Carlo Gibson 30,000 Gauteng Multi-Discipline C/051/06 Kennedy L Sonono 9,696 Gauteng Crafts C/052/06 Mokete Isaac Koae 4,500 Gauteng Crafts C/076/06 Martli Jansen van Rensburg 29,000 Gauteng Crafts C/089/06 Gabrielle Ozynski 70,000 Gauteng Crafts C/090/06 Obakeng Tshukudu 7,000 Gauteng Crafts D/025/06 Sello C Pesa 30,000 Gauteng Dance & Choreography D/050/03 Sello C Pesa 35,000 Gauteng Dance & Choreography D/085/06 Athena Fatseas - Mazarakis 37,000 Gauteng Dance & Choreography GA/07/06 Simon Phiri 40,000 Gauteng Multi-Discipline GA/10/06 Michael Matsie 30,811 Gauteng Multi-Discipline GD/07/06 Nakedi Ribane 57,000 Gauteng Dance & Choreography GT/44/06 Lindi L Mzolo 39,700 Gauteng Theatre and Musical GT/46/06 Makhosi Manamela 15,000 Gauteng Theatre and Musical GT/47/06 Petrus Nzimeni Herembi 15,000 Gauteng Theatre and Musical GT/49/06 Craig Morris 15,000 Gauteng Theatre and Musical GT/50/06 Philuppa De Villiers - Venter 20,000 Gauteng Theatre and Musical GT/51/06 Neville Engelbrecht 15,000 Gauteng Theatre and Musical GT/52/06 Bongani Madondo 50,000 Gauteng Theatre and Musical GT/53/06 Paulus Maila 30,000 Gauteng Theatre and Musical GT/55/06 Hamilton Dhlamini 35,000 Gauteng Theatre and Musical GT/56/06 Emmorentia Ndlovu 30,000 Gauteng Theatre and Musical L/041/06 Ashley Lodewyk 20,000 Gauteng Literature L/043/06 Lionel Spilkin 15,000 Gauteng Literature L/044/06 Jaco Botha 20,000 Gauteng Literature L/046/06 Thulani Nciweni 15,000 Gauteng Literature L/047/06 Birgit Bottner 20,000 Gauteng Literature L/048/06 Sibusiso Nkutha 20,000 Gauteng Literature L/050/06 Lindiwe Kunene 15,000 Gauteng Literature L/052/06 Nape Motana 20,000 Gauteng Literature L/053/06 Louis Greenberg 20,000 Gauteng Literature L/056/06 Jwarha M Mali 20,000 Gauteng Literature L/086/06 Kagisho Senkge 25,000 Gauteng Literature L/140/06 Ethel Lefentse Manyaka 15,000 Gauteng Literature 46 ANNUAL REPORT 2006/ 07

49 REPORT OF PROJECT FUNDING TO INDIVIDUALS Registration First Name Last Name Amount Province Discipline L/150/06 Khanyisile Magubane 15,000 Gauteng Literature L/154/06 Linda Ndlovu 25,000 Gauteng Literature L/161/06 Zachariah Rapola 25,000 Gauteng Literature L/164/06 Phillimon Tjale 15,000 Gauteng Literature L/165/06 Stephen M Radebe 22,729 Gauteng Literature M/103/04 Oupa Ratibe Segwai 277 Gauteng Music and Opera M/106/04 Thandiwe Rose Mlangeni 30,000 Gauteng Music and Opera T/004/05 Siyabonga Shibe 30,000 Gauteng Theatre and Musical T/034/06 Jennifer Methula 15,000 Gauteng Theatre and Musical T/035/06 Dinah T Mnumzana 30,000 Gauteng Theatre and Musical T/042/06 Gretha B Brazelle 50,000 Gauteng Theatre and Musical T/043/06 Nontsikelelo Dipudi 15,000 Gauteng Theatre and Musical T/053/06 Nyembezi Kunene 20,000 Gauteng Theatre and Musical T/055/06 Craig Freimond 20,000 Gauteng Theatre and Musical T/060/06 Monageng Motshabi 15,000 Gauteng Theatre and Musical T/063/06 Vuyo Mfanekiso 15,000 Gauteng Theatre and Musical T/064/06 Jabulile Mkhondwane 6,500 Gauteng Theatre and Musical T/066/06 Thembela J Mbangeni 20,000 Gauteng Theatre and Musical T/078/05 Noel McDonald 33,759 Gauteng Theatre and Musical T/179/06 Bonisile John Kani 86,506 Gauteng Theatre and Musical T/181/06 Elias Mpho Motloung 50,000 Gauteng Theatre and Musical T/182/06 Napo Masheane 20,000 Gauteng Theatre and Musical T/184/06 Philippa Jazmine Dyer 20,000 Gauteng Theatre and Musical T/204/06 Daniel Buckland 30,000 Gauteng Theatre and Musical T/214/06 Nkosinathi R Mbatha 15,000 Gauteng Theatre and Musical V/019/06 Christiaan Diedericks 20,000 Gauteng Visual Art V/020/06 Ezekiel Budeli 10,000 Gauteng Visual Art V/021/06 Maropeng Letsatsi 10,000 Gauteng Visual Art V/022/06 Osiah Masekoameng 10,000 Gauteng Visual Art V/023/06 Moleleki Ledimo 15,000 Gauteng Visual Art V/026/06 Thulile Bhengu 10,000 Gauteng Visual Art V/032/06 Gideon Evert Schoeman 5,000 Gauteng Visual Art V/038/06 Sharlene Khan 10,000 Gauteng Visual Art V/048/06 Karen Bareuther 10,000 Gauteng Visual Art V/052/06 Zanele Muholi 30,000 Gauteng Visual Art V/055/06 David Paton 15,000 Gauteng Visual Art V/056/06 Santu Mofokeng 30,000 Gauteng Visual Art V/118/06 Sidwell Rihlamvu 6,830 Gauteng Visual Art V/133/06 Jacques Coetzer 20,000 Gauteng Visual Art V/136/06 Theresa - Anne Mackintosh 30,000 Gauteng Visual Art V/137/06 Lehlohonolo Jiyane 10,000 Gauteng Visual Art V/159/06 Khoza Suprise 30,000 Gauteng Visual Art D/080/06 Mlungisi Zondi 50,000 KwaZulu Natal Dance & Choreography L/335/05 Thembisile P Sibisi 15,000 KwaZulu Natal Literature T/159/06 Margaret Coppen 20,000 KwaZulu Natal Theatre and Musical T/164/06 Clare - Olivia Mortimer 16,000 KwaZulu Natal Theatre and Musical T/165/06 Janet Van Eeden Harrison 15,000 KwaZulu Natal Theatre and Musical V/046/06 Andries Gouws 10,000 KwaZulu Natal Visual Art ANNUAL REPORT 2006/ 07 47

50 REPORT OF PROJECT FUNDING TO INDIVIDUALS Registration First Name Last Name Amount Province Discipline V/049/06 Carol Brown 20,000 KwaZulu Natal Visual Art L/007/04 Tebogo David Mahlamela -17,500 Limpopo Province Literature L/051/06 Kate Phetedi 15,000 Limpopo Province Literature L/055/06 Mafori C Mphahlele 30,000 Limpopo Province Literature T/021/06 Aubrey Mmakola 25,000 Limpopo Province Theatre and Musical T/022/06 Precious Marobele 15,000 Limpopo Province Theatre and Musical V/028/06 Serole James Mphahlele 7,000 Limpopo Province Visual Art GT/38/06 Xolile Benjamin Gama 40,000 Mpumalanga Theatre and Musical L/167/06 Papanyana Cekiso 25,000 Mpumalanga Literature V/045/06 Luke V Martin 20,000 Mpumalanga Visual Art L/059/06 Joseph Ngwato 15,000 North West Literature T/032/06 Fitzgerald Goeieman 5,000 North West Theatre and Musical L/039/06 Isaac Tau 15,000 Northern Cape Literature T/133/06 Tshepo Gaborone 50,000 Northern Cape Theatre and Musical V/027/06 Chris Webster 10,000 Other Visual Art A/020/06 Aja Marneweck 40,000 Western Cape Multi-Discipline A/036/04 Julia Raynham -125,000 Western Cape Multi-Discipline A/100/05 Aja Marneweck 60,000 Western Cape Multi-Discipline GA/09/06 Peter Hayes 30,000 Western Cape Multi-Discipline GA/11/06 Porteus X Steenkamp 36,388 Western Cape Multi-Discipline GT/40/06 Charles J Fourie 30,000 Western Cape Theatre and Musical GT/41/06 Mongi Mthombeni 30,000 Western Cape Theatre and Musical L/040/06 Keith O Anderson 20,000 Western Cape Literature L/171/06 William Dicey 25,000 Western Cape Literature T/017/06 Ian Bruce 15,000 Western Cape Theatre and Musical T/018/06 Megan Furniss 30,000 Western Cape Theatre and Musical T/019/06 Janni Younge 20,000 Western Cape Theatre and Musical T/168/06 Peter Hayes 12,500 Western Cape Theatre and Musical T/175/06 Edna Paula Kingwill 30,000 Western Cape Theatre and Musical T/309/03 Nadia Davids 50,000 Western Cape Theatre and Musical V/034/06 Nadja Daehnke 5,500 Western Cape Visual Art V/044/06 Marieke Kruger 10,000 Western Cape Visual Art V/047/06 Mary - Rose Hendrikse 8,000 Western Cape Visual Art V/054/06 Lynne E Lomofsky 10,000 Western Cape Visual Art V/140/06 Sanell Aggenbach 15,000 Western Cape Visual Art V/147/06 Jill Trappler 13,870 Western Cape Visual Art Total 2,826, ANNUAL REPORT 2006/ 07

51 REPORT OF PROJECT FUNDING TO ORGANISATIONS Registration Organisation Name Amount Province Discipline A/001/06 National Arts Festival Grahamstown 1,500,000 Eastern Cape Multi-Discipline A/014/06 Hogsback Arts 60,000 Eastern Cape Multi-Discipline C/002/06 Sithembene Women Enterprise 77,000 Eastern Cape Crafts C/023/06 Mfundiso Project 30,000 Eastern Cape Crafts D/047/02 Ama-Trompies Dansklub 10,000 Eastern Cape Dance & Choreography D/074/06 Umjijo Dance Project 60,000 Eastern Cape Dance & Choreography GT/03/06 Umzi Afrika Theatre Productions 30,000 Eastern Cape Theatre and Musical M/020/06 Sterkspruit Musical Arts Project 50,000 Eastern Cape Music and Opera T/007/06 Ikhaya Theatre Company 25,000 Eastern Cape Theatre and Musical A/107/06 Hlanganani - Kopanang Theatre Production 40,000 Freestate Multi-Discipline L/143/06 Cultural Property Invest 30,000 Freestate Literature T/153/06 FACTS 50,000 Freestate Theatre and Musical A/023/06 Cultural Development Trust 50,000 Gauteng Multi-Discipline A/029/06 Performing Arts Network of South Africa (PANSA) 50,000 Gauteng Multi-Discipline A/031/06 We Are Capable 50,000 Gauteng Multi-Discipline A/105/06 Market Theatre 63,000 Gauteng Multi-Discipline A/118/06 The Living Together Institute 80,000 Gauteng Multi-Discipline A/162/04 Sistas Creation 20,000 Gauteng Multi-Discipline A/227/04 ESKIA Institute 220,000 Gauteng Multi-Discipline C/013/06 Craft Council of South Africa 140,000 Gauteng Crafts C/027/06 Filadelfia Beadwork (School) 36,000 Gauteng Crafts C/029/06 Community And Prison Organisation 30,000 Gauteng Crafts C/031/06 Irene Homes 63,000 Gauteng Crafts C/035/06 Khumbulani Craft 150,000 Gauteng Crafts C/091/06 Peta - Lee 4,000 Gauteng Crafts C/093/06 BEES Trust 110,000 Gauteng Crafts C/094/06 Wire Crafting 3,000 Gauteng Crafts D/012/06 ADI - Maru E Africa 100,000 Gauteng Dance & Choreography D/013/06 Johannesburg Dance Foundation Training Centre 70,000 Gauteng Dance & Choreography D/014/06 Kasi Ballet Theatre 40,000 Gauteng Dance & Choreography D/016/06 Dance Forum 50,000 Gauteng Dance & Choreography D/083/06 Kasi Ballet Theatre 49,500 Gauteng Dance & Choreography D/084/06 Lucky Dance Theatre 32,600 Gauteng Dance & Choreography D/088/06 Dance Forum 100,000 Gauteng Dance & Choreography D/089/06 Nokulunga Youth Group 58,000 Gauteng Dance & Choreography DOD/MUL/ South African Traditional Fair Association 30,000 Gauteng Multi-Discipline 005/04 DOD/VC/ Mogale Foundation 180,000 Gauteng Visual Art 032/04 GA/02/06 Methapo Edutainment Project's 45,000 Gauteng Multi-Discipline GA/12/06 Big Time Dance Troupe 20,770 Gauteng Multi-Discipline GD/01/06 Via Attridgeville Cultural Group 60,000 Gauteng Dance & Choreography GD/02/06 New Horizon Theatre Company 45,000 Gauteng Dance & Choreography GD/03/06 Siya-Funeka Dance Company 50,000 Gauteng Dance & Choreography GT/19/06 G.Kente & Sons Productions 100,000 Gauteng Theatre and Musical GT/23/ Legodi Street 60,000 Gauteng Theatre and Musical GT/27/06 Mohlakeng Theatre Organisation 31,400 Gauteng Theatre and Musical GT/31/06 Zwakala Dramatic Oracle 40,000 Gauteng Theatre and Musical ANNUAL REPORT 2006/ 07 49

52 REPORT OF PROJECT FUNDING TO ORGANISATIONS Registration Organisation Name Amount Province Discipline L/004/06 Eulitz Productions 40,000 Gauteng Literature L/009/06 Botsotso 100,000 Gauteng Literature L/023/06 Hlovasi Productions 80,000 Gauteng Literature L/028/06 Caption Communication 40,000 Gauteng Literature L/032/06 Aktua Produksies (PTY) Ltd 60,000 Gauteng Literature L/137/06 Soul Fix Community Projects 31,000 Gauteng Literature L/142/06 Siyomba Projects 20,000 Gauteng Literature L/144/06 African Voice Poetry Club 40,000 Gauteng Literature L/145/06 Afritude 60,000 Gauteng Literature M/001/06 Friends In Communication 50,000 Gauteng Music and Opera M/003/06 Johannesburg Music Initiative 15,000 Gauteng Music and Opera M/035/06 Chamber Orchestra Of SA 100,000 Gauteng Music and Opera M/042/06 Watercolors Music Production and Entertainment cc 50,000 Gauteng Music and Opera M/143/06 Southern African Disabled Musicians Association 100,000 Gauteng Music and Opera M/145/06 Music Academy of Gauteng 350,000 Gauteng Music and Opera M/147/06 The Music Lab 75,000 Gauteng Music and Opera M/150/06 Soweto Opera Quadro 20,000 Gauteng Music and Opera T/004/06 Ekhaya Youth Development Initiative 40,000 Gauteng Theatre and Musical T/008/06 ISAGO Theatre Productions 35,000 Gauteng Theatre and Musical T/050/06 Karos & Kambro 40,000 Gauteng Theatre and Musical T/054/06 Agang Productions and Entertainment 6,000 Gauteng Theatre and Musical T/055/03 Seputla Productions 30,000 Gauteng Theatre and Musical T/056/04 Methapo Edutainment Project's -20,000 Gauteng Theatre and Musical T/057/06 Gigs Galaxy 40,000 Gauteng Theatre and Musical T/058/06 Jabulane Development Project 10,000 Gauteng Theatre and Musical T/061/06 Mavundla And The Roses Of South Africa (Marosa) 40,000 Gauteng Theatre and Musical T/062/06 Youth Success Production 25,000 Gauteng Theatre and Musical T/065/06 Zamazisa Productions 80,000 Gauteng Theatre and Musical T/067/06 Big Bag Wolf Advertising 30,000 Gauteng Theatre and Musical T/167/05 Inkaba Players 56,000 Gauteng Theatre and Musical T/180/06 Mhlobona Productions 30,000 Gauteng Theatre and Musical T/185/06 ATAC Productions 40,000 Gauteng Theatre and Musical T/188/06 Mohlakeng Theatre Organisation 20,000 Gauteng Theatre and Musical T/194/06 Eljay Productions 30,000 Gauteng Theatre and Musical T/198/06 Market Theatre Laboratory 109,128 Gauteng Theatre and Musical T/205/06 Mamelodi Theatre Organisation 8,000 Gauteng Theatre and Musical T/206/06 Meadowlands Productions 30,000 Gauteng Theatre and Musical T/208/06 Morethetho Arts Projects 30,000 Gauteng Theatre and Musical T/209/06 Lubikha Theatre Project 30,000 Gauteng Theatre and Musical T/213/06 Ziyabuya Emzatsi Entertainment 30,000 Gauteng Theatre and Musical T/216/ Legodi Street 40,000 Gauteng Theatre and Musical V/011/06 Mogale Arts Calabash 20,000 Gauteng Visual Art V/117/06 Fordsburg Artist's Studios 50,000 Gauteng Visual Art V/125/06 Teaching Screens Productions 20,000 Gauteng Visual Art V/128/06 Market Photo Workshop 50,000 Gauteng Visual Art V/129/06 Wits University Art Galleries 60,000 Gauteng Visual Art V/134/06 Funda Community College 49,000 Gauteng Visual Art A/003/06 Amajika Youth & Children Arts 50,000 KwaZulu Natal Multi-Discipline 50 ANNUAL REPORT 2006/ 07

53 REPORT OF PROJECT FUNDING TO ORGANISATIONS Registration Organisation Name Amount Province Discipline A/008/06 Andhra Maha Sabha of South Africa 30,000 KwaZulu Natal Multi-Discipline A/013/06 Eskhaleni Arts and Culture Initiative (ESACI) 50,000 KwaZulu Natal Multi-Discipline A/026/06 Red (Friends of Durban Art Gallery 20,000 KwaZulu Natal Multi-Discipline C/030/06 Zezamele Society For Disabled 25,000 KwaZulu Natal Crafts D/010/06 Centre For Creative Arts 150,000 KwaZulu Natal Dance & Choreography GA/01/06 Osizweni Theatre Production 56,000 KwaZulu Natal Multi-Discipline M/006/06 Awesome Africa 100,000 KwaZulu Natal Music and Opera M/022/06 KwaZulu Natal Youth Wind Band 52,315 KwaZulu Natal Music and Opera M/036/06 I-Afrika Entsha- Department of Music 57,600 KwaZulu Natal Music and Opera M/155/06 Inanda Community Arts Centre 100,000 KwaZulu Natal Music and Opera T/157/06 Umphithi Theatre Project Management 30,000 KwaZulu Natal Theatre and Musical T/161/06 Arley's Workshop 30,000 KwaZulu Natal Theatre and Musical V/009/06 The African Art Centre 12,000 KwaZulu Natal Visual Art C/026/06 Paul Johannah David Art & Crafters 10,000 Limpopo Province Crafts GL/01/06 Timbila Poetry Project 100,000 Limpopo Province Literature GT/08/06 The Dream Team 39,420 Limpopo Province Theatre and Musical L/019/06 Xitsonga Writers Association 40,000 Limpopo Province Literature L/127/06 Itepa Publishers 80,000 Limpopo Province Literature T/140/06 The Best Art Centre 40,000 Limpopo Province Theatre and Musical T/142/06 Achievers Theatre Company 20,000 Limpopo Province Theatre and Musical T/143/06 Tinkawu Theatre Laboratory 85,000 Limpopo Province Theatre and Musical C/032/06 Sizophumeze 8,000 Mpumalanga Crafts C/033/06 Thuthukani Mandebele 10,000 Mpumalanga Crafts GA/03/06 Witbank Civic Theatre 60,000 Mpumalanga Multi-Discipline T/027/06 Izodela Community Development Centre 30,000 Mpumalanga Theatre and Musical GA/06/06 MCM Projects 60,000 North West Multi-Discipline M/043/06 Acosa Ma-Afrika Cultural Organisation 90,100 North West Music and Opera NAC100 Various 13 Other Other A/005/06 Arts and Media Access Centre 63,900 Western Cape Multi-Discipline A/024/06 Mothertongue 50,000 Western Cape Multi-Discipline A/028/06 The Big Issue 26,000 Western Cape Multi-Discipline C/085/06 Hermanus Whale Festival 67,800 Western Cape Crafts D/003/06 Vadhini Indian Arts Academy 24,000 Western Cape Dance & Choreography D/017/06 Jikeleza Dance Project 50,000 Western Cape Dance & Choreography D/075/06 Jikeleza Dance Project 31,000 Western Cape Dance & Choreography D/076/06 Cape Dance Company 100,000 Western Cape Dance & Choreography D/077/06 Dance For All 83,000 Western Cape Dance & Choreography D/078/06 Ikapa Dance Theatre 50,000 Western Cape Dance & Choreography D/079/06 Zama Dance School Trust 65,000 Western Cape Dance & Choreography GT/12/06 Jungle Theatre Company 32,000 Western Cape Theatre and Musical GT/14/06 Theatre Bazaar 15,000 Western Cape Theatre and Musical L/170/06 South Africa Writing 80,000 Western Cape Literature M/016/06 Global for Disabled People 100,000 Western Cape Music and Opera M/017/06 The Novalis Ubuntu Institute 42,000 Western Cape Music and Opera M/148/06 Bless Them All Gospel Group 45,000 Western Cape Music and Opera M/149/06 Athlone Academy of Music 100,000 Western Cape Music and Opera M/153/06 The Music Therapy Community Clinic (MTCC) 30,000 Western Cape Music and Opera T/014/06 The Cockpit Collective 75,000 Western Cape Theatre and Musical ANNUAL REPORT 2006/ 07 51

54 REPORT OF PROJECT FUNDING TO ORGANISATIONS Registration Organisation Name Amount Province Discipline T/015/06 Bubblegum Productions cc 40,000 Western Cape Theatre and Musical T/176/06 Big Vision Theatre Association 50,000 Western Cape Theatre and Musical T/268/06 Mopo Cultural Trust 50,000 Western Cape Theatre and Musical V/002/06 Coeo 20,000 Western Cape Visual Art V/016/06 Greatmore Studios 29,000 Western Cape Visual Art V/141/06 The Cape Africa Platform 100,000 Western Cape Visual Art V/143/06 Greatmore Studios 30,000 Western Cape Visual Art Total 9,366,546 REPORT OF DAC RING-FENCED FUNDING Registration Organisation Name Amount Province M/180/05 Free State Symphony Orchestra 500,000 Freestate M/220/05 Johannesburg Youth Orchestra 500,000 Gauteng MR/01/06 KZN Philharmonic Orchestra 3,771,000 KwaZulu Natal MR/02/06 Cape Philharmonic Orchestra 3,771,000 Western Cape MR/03/06 Cape Town Jazz Orchestra 3,771,000 Western Cape MR/04/06 Artscape 650,000 Western Cape MR/10/05 Abrina 916 (Pty) Ltd 10,000 Gauteng MR/11/05 Morris Roda Productions CC 300,000 Gauteng MR/12/05 United Theatre Practitioners of South Africa 10,000 Gauteng MRF003 Traditional Dance Company 189,418 Gauteng Total 13,472, ANNUAL REPORT 2006/ 07

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