Presentation to the Presentation to the Parliamentary Portfolio Parliamentary Portfolio
Committee on Arts & Culture Committee on Arts & Culture Wednesday, 15 June 2011 Wednesday, 15 June 2011
CONTENTCONTENT1. Overview of the NHC
a) Legislative mandateb) Vision and Mission
2. Strategic objectives 2009/103. Annual report 2009/10
a) Governance (Council & Committees)b) Internal controls (internal audit & risk assessment)c) Financial overview (budget 2009/10, AFS, Audit
report)d) Heritage programmes and Funded projects
4. Challenges
OVERVIEW OF THE NHC
LEGISLATIVE MANDATELEGISLATIVE MANDATENHC is a Schedule 3A public entity under the DACThe mandate of the NHC is contained in Section 4 (Objectives) of the National Heritage Act no. 11 of 1999 as per the objects of the Act as stated below:Develop, promote and protect the national heritage for present and future generations.To coordinate heritage management.To protect, preserve and promote the content and heritage which resides in orature in order to make it accessible and dynamic.To integrate living heritage with functions and activities of the Council and all other heritage authorities and institutions at national, provincial and local levels.To promote and protect indigenous knowledge systems including but not limited to enterprise and industry, social upliftment, institutional framework and liberatory processes: andTo intensify support for the promotion of history and culture of all our peoples and particularly to support research and publications on enslavement in South Africa.
VISION
“To be the leading agent for the preservation, protection and promotion of the South African heritage, both tangible
and intangible, for sustainable development”
Currently reviewed as:“To build a nation proud of its heritage”
MISSIONTo coordinate and transform the management of the heritage sector by:
Facilitating the development of heritage policies and advising the Minister on these and other heritage matters
Promoting, mainstreaming and foregrounding both tangible and intangible heritage
Facilitating the establishment of strategic partnerships with heritage stakeholders and role-players nationally, regional and internationally
Provide a framework that ensures the sustainable use, and the protection of heritage resources in social and economic development
Currently reviewed as:“To transform, protect and promote South African
heritage for sustainable development”
STRATEGIC OBJECTIVES FOR
2009/10
STRATEGIC OBJECTIVES 2009/10STRATEGIC OBJECTIVES 2009/10
1. Strengthen policy development and advice 2. Increase resource mobilization and funding for the sector 3. Position the heritage sector as a significant contributor to socio-
economic development – a national priority 4. Enhance the role of heritage in nation building – a national priority 5. Enhance coordination of heritage management 6. Facilitate, monitor and coordinate transformation of the heritage sector
7. Enhanced institutional capacity, financial and corporate governance
compliance 8. Enhance research and knowledge production 9. Promote public awareness, education and advocacy 10. Develop and enhance strategic partnerships with stakeholders 11. Maintain strong corporate image and identity
STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES (NEW PARADIGM)(NEW PARADIGM)
1. Improve research, knowledge production and policy development.
2. Fund and develop sustainable community heritage initiatives.
3. Promote heritage in nation building and national pride.
4. Enhance public awareness, education and strategic partnerships.
5. Enhance administration, governance and business processes.
ANNUAL REPORT 2009/2010
GOVERNANCEGOVERNANCE
COUNCIL COMMITTEES
STRUCTURE OF OPERATIONSSTRUCTURE OF OPERATIONS
EXECUTIVE OFFICEEXECUTIVE OFFICE
SPECIAL PROJECTS & SPECIAL PROJECTS & STAKEHOLDER ENGAGEMENTSTAKEHOLDER ENGAGEMENT
Arts and Culture 2010 World Cup Task Team
The NHC was part of the Task Team that was assisting and advising the Department of Arts and Culture on ensuring that South Africa realises the 2010 World Cup benefits for the sector. The Task Team was unfortunately dissolved by the Minister in January 2010
Other General Partnerships formalised are with: Provincial Governments and Some Municipalities on Liberation
Heritage Route Eastern Cape Provincial Government on Ubuntu Programme SABC on SATMA CRATA on Ubuntu Programme and NHC attends meetings by invitation DoBE on Heritage Education ETC as outlined in the next slides
GOVERNANCE REPORT
COMPLIANCE IMPERATIVESCOMPLIANCE IMPERATIVES Quarterly reports to DAC for 2009/2010 and 2010/11
NHC has submitted all four quarterly reports to the Department of Arts and Culture and Annual Report 2009/10 submitted and tabled in Parliament.
For the year 2010/2011 performance information has also been sent every quarter and Annual Report being prepared.
NHC Strategic Plans 2009/2012, 2010/2013 and 2011/2014 MTEF Period
Strategic Plans 2009/2012, 2010/2013 and 2011/2014 were submitted to the DAC during February 2009, 2010 and 2011 respectively.
Draft Strategic Plans 2010-2013, and 2011-14 were submitted to the DAC during October 2009 and 2010 respectively.
INTERNAL CONTROLS
HUMAN RESOURCESHUMAN RESOURCESHUMAN RESOURCES’ MAIN STRATEGIC OBJECTIVES ARE
ACHORED AROUND THE FOLLOWING:
Talent Management – On-going in line with Staff Retention Strategy
Performance Management – System is in place from previous years
Occupational & Health Safety – New Policy approved by Council on 20 January 2009
Wellness and Safety – New policy approved by Council in November 2009
Policy Review – For the year under review policies that were applicable had been reviewed in January 2010 and approved by Council on 20 February 2010.
FINANCE, FINANCE, ADMINISTRATION AND ADMINISTRATION AND INTERNAL CONTROLINTERNAL CONTROL
FINANCE, ADMINISTRATION AND INTERNAL CONTROLS
Budget: Regular monitoring of budget and expenditure done
Assets: NHC assets verification process completed and asset register updated during the year under review.
Information Technology : Disaster Recover Plan (DRP) and Business Continuity Plan (BCP) were developed and approved.
Risk Management: Risk Management Strategy and Fraud Prevention Plan developed and approved by the Audit Committee during the year under review.
Internal Audit: Internal Audit Function established and is functional and assist the NHC to maintain effective controls by evaluating controls to determine their effectiveness and efficiency and make recommendations
Broad Finance Policies: Policies which applied in the financial year under review were reviewed during January 2010 to align with legislative imperatives.
FINANCIAL OVERVIEW
BUDGET ALLOCATION BY BUDGET ALLOCATION BY GOVERNMENTGOVERNMENT
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
16,700 17,400
31,673
36,670
45,648
48,43546,665
Gra
nt
rece
ive
d (e
xclu
din
g in
tere
st) R
'000
Financial Year
Seven Year Budget Growth &Shrink
Series1
BUDGET 2009/10BUDGET 2009/10
Government Grant – R48, 234, 952Roll Overs – R14, 409, 899 Interest Received – R568, 000EC Provincial Government (Ubuntu) – R2, 849, 316 Lottery Funding (SATMA) – R12, 621, 241Lottery Funding (LIBERATION ROUTE) – R3,547, 071Lottery Funding (UNSUNG HEROES) – R1, 111, 411Lottery Funding (YOUNG ARTISTS) – R2, 956, 869
BUDGET ALLOCATIONS: CORE BUSINESS BUDGET ALLOCATIONS: CORE BUSINESS VS NON COREVS NON CORE
BUDGET ALLOCATIONS: PERSONNEL BUDGET ALLOCATIONS: PERSONNEL COSTS VS OPERATING COSTSCOSTS VS OPERATING COSTS
FINANCIAL STATEMENTS 2009/10FINANCIAL STATEMENTS 2009/10
Statement of Financial Position
AssetsCurrent Assets R14, 492mNon Current Assets R 1, 227m
LiabilitiesCurrent liabilities R14, 019mNon Current liabilities R 246
Accumulated Surplus R 1, 254m
FINANCIAL STATEMENTS 2009/10FINANCIAL STATEMENTS 2009/10
Statement of Financial Performance
RevenueGovernment Grant R48, 435mAmortised Grant R 8, 179mAmortised Grant (National Lotteries) R 11, 704mOther Income R , 833Total Revenue R69, 151m
ExpensesOperating Expenses R41, 086mAdministrative R20, 141mEmployee Costs R11, 723mOther Costs R 1, 578mTotal Expenses R74, 528m
AUDIT REPORT 2009/10AUDIT REPORT 2009/10 Unqualified audit opinion for 2009/10 Matters of Emphasis
◦ Irregular Expenditures (Note 31) Treasury Regulations require that bids not awarded through
an open bid process be reported within 10 days to National Treasury and the Auditor General.
The three (3) contracts were not reported to National Treasury within 10 days as required.
◦ Fruitless and Wasteful Expenditure (Note 31) An official dismissed in 2008 handed over the matter to
CCMA and thereafter initiated a legal process seeking compensation
NHC decided to settle the matter out of court based on the projection of legal fees and cost benefit analysis done.
AUDIT REPORT 2009/10AUDIT REPORT 2009/10Corrective steps for Matters of Emphasis;
◦ Implementation Plan for matters and findings raised by audit developed and tabled before the Audit Committee
◦ New SCM policy aligned to SCM Framework issued by National Treasury developed, approved by Council and being implemented since 1 April 2010.
◦ The contracts from whom these emanates had lapsed during 2010/11. No further expenditure incurred for the financial year 2011/12 and going forward.
HERITAGE PROGRAMMES
AND FUNDED PROJECTS
LINKING PROGRAMMES TO LINKING PROGRAMMES TO MANDATEMANDATE
HERITAGE PROGRAMMESHERITAGE PROGRAMMESPOLICY ADVICE & DEVELOPMENT
◦ Draft Policy on Repatriation of Heritage ResourcesDraft Policy on Repatriation of Heritage Resources: The primary aim of the draft policy framework is to provide a clear policy guideline on the repatriation of heritage resources. 1st Draft Policy Framework has been completed and is in circulation for further inputs. (Please note paradigm shift toward developing Position Paper)
◦ Draft Policy on Heritage Conservation and DevelopmentDraft Policy on Heritage Conservation and Development: The objective of the policy initiative is to provide a framework on mainstreaming heritage conservation into development (e.g. infrastructure development and planning). 1st Draft policy framework has been completed and is in circulation for further inputs. (Please note paradigm shift toward developing Position Paper)
HERITAGE PROGRAMMESHERITAGE PROGRAMMES◦ Draft Policy on Access to Heritage InstitutionsDraft Policy on Access to Heritage Institutions: This policy area seeks to
provide an enabling framework for public access into heritage institutions, as access to heritage institutions by the public is often a challenge. Preliminary research has been completed and recommendations from the consultative process were considered. Draft policy framework in progress. (Please note paradigm shift toward developing Position Paper)
◦ Draft Policy on Professional Standards and EthicsDraft Policy on Professional Standards and Ethics: This policy initiative seeks to set policy measures on code of ethics and professional standards for practitioners in the field of heritage management. An archival study on developing a policy framework in progress. (Please note paradigm shift toward developing Position Paper)
◦ Draft Heritage Transformation CharterDraft Heritage Transformation Charter: This initiative seeks to present a blue print towards transforming the heritage sector. A draft with a proposed implementation plan has been completed and awaits handover to the Minister.
HERITAGE PROGRAMMES HERITAGE PROGRAMMES LIBERATION HERITAGE ROUTE & LIBERATION HERITAGE ROUTE & UNSUNG HEROES & HEROINESUNSUNG HEROES & HEROINES
◦ The National Liberation Heritage Route is about the recognition of people, communities, icons, places/sites and the recording of epoch-making stories which had a significant impact on the South African struggle for liberation.
◦ The NLHR will be configured as a network of sites, some nodes with world heritage status, others with national, provincial and local significance.
◦ It’s a project that will provide a storyline about the movement and continuity of liberation activities, the dialogue across the country and trans-boundary co-ordination of the national liberation struggle.
HERITAGE PROGRAMMES (CONTINUED)HERITAGE PROGRAMMES (CONTINUED)LIBERATION HERITAGE ROUTE (LHR) It is a national programme towards the identification of sites linked to the
liberation struggle for inclusion onto the nomination list & declaration thereof by UNESCO as a World Heritage Site.
The LHR was piloted in the Eastern Cape & provincial Summit held in 2007.
A tentative list has been accepted by the World Heritage Committee under UNESCO.
A Cabinet Memo has been sent to the Minister of Arts & Culture to initiate a parliamentary process to solicit national acceptance.
All Nine Provinces and Municipalities have been engaged and consolidation of inter-organisational networks and collaboration continues.
LHR Summits held in seven (7) provinces between July 2010 and March 2011, with Western Cape likely to host the last summit this financial year (2011/12)
National research initiated and still in progress through out all provinces
HERITAGE PROGRAMMES HERITAGE PROGRAMMES
LHR AS CONTRIBUTOR TO SOCIO-ECO DEV
◦ A Business Case Study was completed in August 2009 and it affirms the socio-economic value and importance of the LHR for SA.
◦ The Business Case contains the implementation framework and cost projections to the value of R1,6 billion over five years prioritizing infrastructure development and research
◦ Funding for the initial phase of LHR programme has been secured from National Lottery especially for research and public consultation phase.
◦ All Provincial summits with the exception of Western Cape have been completed.
HERITAGE PROGRAMMES HERITAGE PROGRAMMES
LIBERATION HERITAGE ROUTE (LHR) FOR SOCIO ECO DEVEVLOPMENT
◦ Placement of the NLHR in the planning dimensions of government.
◦ Site identification, content development and route mapping.
◦ Development of the heritage sites in strategic nodes.
◦ Development of knowledge, research and scholarship networks.
◦ Preparation of the Nomination Dossier for World Heritage Site inscription.
◦ Engagement of SADC countries for serial nomination of the NLHR and continued networking with UNESCO and the Advisory Bodies; IUCN, ICOMS, AWHF etc.
◦ Approval of the NLHR by the National Cabinet
HERITAGE PROGRAMMESHERITAGE PROGRAMMESHERITAGE IN NATION BUILDING - UBUNTU CAMPAIGN
An annual strategic programme centered on safeguarding and promoting Ubuntu for Nation building through initiatives for reclaiming, revival and restoration of the positive values of Ubuntu in society. Also the integration of Ubuntu into national programmes and policy frameworks for socio-economic development.
It derives from the adopted and approved strategy, in line with the mandates of the NHC, that of integrating living heritage into heritage management.
A national conference on “Reclaiming and Living Ubuntu for a Caring Society”, was held on the 31st of August 2010 with resounding success. This responds to the call made by the stakeholders and the Presidency for the nation to debate issues of morality.
HERITAGE PROGRAMMESHERITAGE PROGRAMMESHERITAGE IN NATION BUILDING: KEY ACTIVITIES: UBUNTU CAMPAIGN Ubuntu Imbizo and Awards Ceremonies (President Nelson Mandela 2006, President Kaunda, 2007;
President Fidel Castro (international) Patrick Chamusa (national all received in 2008; and Dr Boutros Boutros-Ghali (International) and King Sabata Dalindyebo (national) in 2009)
Commemoration of Mandela Day in the Spirit of Ubuntu : 18 July 2009 – Kliptown in Soweto.
Mandela Day Celebration for 18 July 2010: Seminar - Inter-Generational Dialogues on the Meaning of Nelson Mandela ( Freedom Park – Pretoria).
Ubuntu Workshop (Ubuntu Dialogues) – Forum for the young and elderly citizens to exchange views and ideas.
Ubuntu in Action Community Initiatives – A close interaction between NHC and community projects that are based and foreground values of Ubuntu in Society.
Strategic Partnerships: MRM, CRL Commission, NHTL, Nelson Mandela Foundation, CRATA, Freedom Park , Education Department, Department of Correctional services & many others.
HERITAGE PROGRAMMESHERITAGE PROGRAMMESAWARENESS, EDUCATION & STAKEHOLDER RELATIONS
HERITAGE & EDUCATION OUTREACH
◦ The project intends to integrate issues of heritage into the education sector. Through partnership with Department of Education the project involves schools from all provinces in a heritage education programme including research, debates, site visits and formal presentations at a 5-day camp. Schools compete and winners are selected by a panel of judges.
◦ Strategic partners are the Department of Education, SANParks, Moral Regeneration, June 16 Foundation and Kara Heritage Institution.
◦ 2010 Heritage & Education programme took place in Free State during September 2010 at Golden Gate Resort
HERITAGE PROGRAMMESHERITAGE PROGRAMMESAWARENESS, EDUCATION & STAKEHOLDER RELATIONS
Early African Intellectuals
Research and Publication based on the life and works of African Intellectuals (at the turn of the 21st Century) who contributed through writing to freedom and development of African people; 1 Vol. of the Publication has been successfully completed, with subsequent volumes planned subject to funding.
2nd Vol. is focusing on the works of the following personalities: Albert Nzula; Magema Fuze, Reverend James Mata Dwane, Noni Jabavu, and Charlotte Maxeke.
The Intellectual Making of Sol. T. Plaatje
The research project is based on the life and work of Solomon Thekiso Plaatje and will result in a publication. Progress reports have been submitted and the publication is expected to be finalised in the 2011/12 financial year.
HERITAGE PROGRAMMESHERITAGE PROGRAMMESCONTRIBUTOR TO SOCIO-ECONOMIC DEV.: YOUNG INDIGENOUS
ARTISTS◦ A programme to promote and preserve Indigenous Knowledge
Systems through an indigenous art production technique and utilize visual art to promote heritage whilst providing an economic opportunity to talented unemployed youth.
◦ Funding sourced from National Lottery for training and establishment of Cooperatives for the Artists.
◦ National exhibitions held at the Grahamstown Arts Festival (2009 – 2010) & Macufe held in October 2010.
◦ Partnerships with SEDA (Dti) to facilitate the creation of cooperatives and skills transfer to the Young Artists.
HERITAGE PROGRAMMESHERITAGE PROGRAMMESAWARENESS, EDUCATION & STAKEHOLDER RELATIONS
SOUTH AFRICAN TRADITIONAL MUSIC ACHIEVEMENTS AWARDS – [SATMA]
◦ A project to promote, honour and recognise the contribution of traditional musicians to safeguarding of cultural heritage (Living Heritage).
◦ The main event is preceded by provincial nominations on radio stations; development workshops, exhibition,announcement of artists and the launch,
◦ An annual project in partnership with SABC and the Lottery.
◦ Competition on all SABC radios resulting in an award ceremony
◦ 5th SATMA anniversary and Awards even held in October 2010 at ICC, Durban.
◦ SATMA Awards 2010 Launched in Cape Town, ICC Cape Town in May 2010.
FUNDING AND RESOURCE FUNDING AND RESOURCE MOBILISATIONMOBILISATION
Key Strategic Objectives: Funding disbursement through Funding Policy
Independent Funding Committee appointedTranche payments system used.Grant agreements are signed with beneficiaries
before disbursements are made. Fundraising Monitoring and Evaluation of Funded Projects
in placeServices had been OutsourcedPeriodic reporting done every quarter
FUNDINGFUNDING
FUNDINGFUNDINGFunds allocated by the NLDTF (Lottery) over a 3-year termFunds allocated by the NLDTF (Lottery) over a 3-year term
YEAR PROJECTS FUNDED AMOUNT RECEIVED
2008 1. National Liberation Heritage Route2. Young indigenous Artists3. South African Traditional Music
Achievements Awards4. Unsung Heroes & Heroines
R7,952,391m
2009 All four projects R19,658,635m
2010 All four projects R18,781,422m
TOTAL FUNDING FROM NLDTF = R46,392,448m
FUNDINGFUNDINGFunds alloFunds allocated by the NLDTF cated by the NLDTF
(Lotteries) over 3-years(Lotteries) over 3-years Application was made for six projects but four approved for a period of three years
and a grant agreement which informs transfers and reporting signed.
Approval was granted on Unsung Heroes and Heroines, SATMA, National Liberation Heritage Route and Young Indigenous Artists programmes while the Heritage Awards and Ubuntu awards were turned down
Redirections of funds for projects were done and approved by the National Lotteries in terms of the grant agreement
To date, three reports have been submitted and approved by the National Lotteries upon which the last tranche will be released
Save for the SATMA, these projects are new with no history as they had never been implemented before. The NHC had to conduct preliminary research on the three projects to determine implement ability subject to funding being sought.
Of the 4 approved, SATMA had a costing precedent since it had been running for three years prior to the application.
KEY ACHIEVEMENTS
KEY ACHIEVEMENTS (CONTINUED)KEY ACHIEVEMENTS (CONTINUED) Improved Corporate Governance & consolidation of accountability
measures. Attained another unqualified audit report in 2009/10 making them six
unqualified audit reports since inception. All four quarterly reports for all the past years including the one under
review (2010/11) were timeously submitted to the DAC. Increased formal partnerships with stakeholders by way of MOU/As. Enhanced implementation of funded heritage projects and programmes
supported by National Lottery. Official endorsements of the Liberation Heritage Route Project were
received from the Provincial Councils and/or Governments . Submitted Business Case on LHR to Ministry / DAC Submitted Cabinet Memo on LHR to Minister for him to solicit support
thereof at Government level. Hosted eight (8) LHR provincial Summits so far, one in the pilot project
launched in the Eastern cape province and the last (seven) between July 2010 & May 2011.
Secured funding for 2011 SADC & East Africa Workshop on LHR from Africa Africa World Heritage Fund (AWHF).
NHC is widely recognised for championing the heritage agenda.
KEY CHALLENGESDURING
2009/10 & 2010/11
CHALLENGES RELEVANT TO NHC CHALLENGES RELEVANT TO NHC
The following key challenges are worth noting: NHC could not effectively implement the Strategic Plan in the 2010/11 year
under review because of the dysfunctional Council & Committees NHC still without a Council since October 2010. Budget cut of R5 million by DAC in terms of annual allocations impacted on
the full implementation of the 2010/13 approved strategy. Increased demand for support of heritage initiatives cannot be matched
with financial resources owing to limited budget. Insufficient capacity to match the growth & expectations on the LHR. Lack of cohesion between the NHC and DAC Heritage Branch on
programming Insufficient Internal Research capacity. Inadequate National research and policy management within the NHC. Coexistence of Special Investigation Unit and AGSA negatively impacts on
and/or constraints operational efficiency. Inadequate capacity to increase knowledge production through research
CHALLENGES FACING THE SECTORCHALLENGES FACING THE SECTOR
Overlaps in Heritage Legislation create confusion in discharging mandates amongst DAC, NHC and SAHRA ;
Heritage still perceived in isolation, and not as an integral part of National Priorities;
Heritage Management is a shared competency across all spheres of Government but yet not integrated into public programmes and policy frameworks
Recurring challenges of destruction of heritage resources due to lack of integrated infrastructure planning and development;
Heritage Sector still under resourced and under funded;
Lack of beneficiation model for the sector
Inadequate protection of Intellectual Property Rights of Heritage especially around Living Human Treasures and Indigenous Knowledge Systems
CHALLENGES FACING THE SECTORCHALLENGES FACING THE SECTORcontinuedcontinued
Deficiencies of Skills and Training, and lack of Research, Knowledge Production and Policy Development Capacity.
Lack of Public Access to Heritage Resources by local-grass-roots communities due to several factors e.g. heritage in private ownership, exorbitant entrance fees, language and etc.
Persistent Commoditisation of Heritage Resources, still not beneficial to the Heritage Sector or local communities but other sectors such as Tourism benefit from commercial exploitation of heritage resources.
Issues of Intellectual Property Laws not fully applied or enforceable to protect rights of grass root communities e.g. protection of rights of Living Human Treasures over Indigenous Knowledge.
Thank You
