FILM AND PUBLICATION BOARD’S PRESENTATION TO PC: HOME AFFAIRS

ANNUAL REPORT 2010/11

13 OCTOBER 2011

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OUR MANDATE

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Derived from Film and Publications Act 65 of 1996 as amended in 2004 and 2009. FPB is mandated to regulate the:

• creation,

• production and

• distribution of films, games and certain publications

PRINCIPLES CENTRAL TO FPB REGULATION

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• Protection of children from early exposure to adult material and use in child pornography productions – child pornography punishable by law

• Provide consumer advice on media content – ‘we inform, you choose’

• Provide designated areas for distribution of adult material (pornography)

MEDIA DISTRIBUTION CHANNELS REGULATED BY FPB

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VISION AND MISSION

VISION – A credible and visible content regulator that protects consumers.

MISSION – To ensure efficient and effective consumer protection through regulation of media content, while empowering, especially children through robust information sharing.

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Achievements• Regulatory matters (classification and compliance

targets met)• Achieved 73% of overall Annual Plan• Outreach and awareness (Campaign Against Child

Pornography)• New partnerships brought into the organisation• Appointment of Council• Increased visibility in media and communities• Developed Turn Around strategy• Strengthened governance, accountability and

compliance• Prudent financial management

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Challenges • A number of IT and Research targets not achieved -

deferment of affected programmes to 2011/12 FY approved by Council

• Limited IT capacity and ageing IT infrastructure • Legal challenge by Print Media • 15% vacancy rate in 2010/11 FY• Conclusion of Turn Around process prior to filling of

positions – all vacant posts, especially at Management level were frozen

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Strategic Objectives

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1. Enhance, integrate, and implement a constitutionally sound regulatory framework

2. Develop and maintain organisational capacity and capability

3. Form and maintain national and international partnerships, and co-ordinate initiatives that support the business of FPB

4. Position FPB as a visible and credible, professionally run organisation

5. 2010 Anti-child pornography campaign – SPECIAL PROJECT

SO 1: ENHANCE, INTEGRATE, AND

IMPLEMENT A CONSTITUTIONALLY

SOUND REGULATORY FRAMEWORK

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Key programmes

• Problematic Distributors and compliance

• Consumer market segmentation

• Regulatory repositioning

• External ratings convergence

• Government Support and Dialogue

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1. Problematic Distributors and Compliance:

Target Performance results Comment

7094 COMPLIANCE INSPECTIONS

Achieved & exceeded 7857 inspections conducted

265 Raid on non-compliant stores

Achieved & exceeded 907 Raids conducted

306 Cases opened with SAPS

Achieved & exceeded 759 cases opened

Closure of 36 illegal shop/ province

Achieved & exceeded 230 closures

200 000 confiscations Achieved 230 000 confiscations recorded

1500 new distributors registered

Partially achieved 1387 distributors registered

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Target Performance Results Comment

6000 submissions for Classification

Achieved and exceeded 6 371 submissions received

Classify > 95% of films games and publications

Achieved – 6 414 materials classified

100% of submitted materials classified

Develop strategy to deal with problematic distributors and implement it

Partially achieved A draft compliance monitoring strategy developed and submitted for Council approval in 2011/12 FY

Tariffs Review Achieved new tariffs approved by Minister

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Target Performance Results Comment

MoU with SAFACT on storage and joint operations

Achieved None

Review tariff exemptions Achieved None

Quarterly meetings with problematic distributors

Achieved Bollywood and Nollywood distributors prioritised

Host annual Distributors Conference

Achieved None

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2. Consumer Market Segmentation

Target Performance Results Comment

Revise and distribute Distributor’s guide in line with revised FP Act Amendments

Achieved None

Revise compliance SoPs in line with new amendments

Achieved None

3. Regulatory Repositioning Programme

Conduct quarterly Classification surveys

Achieved None

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4. External Ratings Convergence

Target Performance Results Comment

Conduct customer surveys on film classifications in cinemas

Achieved 65% convergence

Place FPB posters in cinemas

Achieved None

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5. Government Support and Dialogue

Target Performance Results Comment

• Participate in govt planning committees for current programmes

• Commemorate national days with relevant departments

• Host two briefing sessions with DM

• Strengthen co-operation through partnerships, agreements and MoU

• Report to EA and Parliament as per compliance requirements

Achieved None

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PARTIALLY/ NOT ACHIEVED IN SO1

• Signing of MoU’s with law enforcement agencies – draft MoU’s in place but delay in obtaining signatures of officials (SAPS). 500 Law enforcement officers were however trained in the year

• Research deliverables put on hold due to capacity challenges within unit

• Appointment of Classifiers delayed due to nullification of the process

• Registration of the FPB logo as trademark finalised in 2011/12 FY

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SO 2: DEVELOP AND MAINTAIN

ORGANISATIONAL CAPACITY AND CAPABILITY

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KEY PROGRAMMES1. HR Management and Improvement

2. Staff incentives

3. Internal Communications

4. Internal policy and procedures compliance

5. Strategy and program co-ordination

6. Financial Management

7. Governance

8. Personnel Change and Management

9. Operational performance improvement

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2.1 HR Management and Improvement Programme

Target Performance Results Comment

HR Policies:•Remuneration Strategy•Performance Management Policy•S&T Policy•Salary Administration•Mentoring and Coaching

Partially Achieved Remuneration Strategy and Council Performance policy

Assess effectiveness of wellness programmeAnd ensure staff participate in at-least 4 wellness programmes

Achieved None

Coaching and mentoring Achieved Executives and Snr Management enrolled for a coaching program

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2.2 Staff Incentive

Target Performance Results Comment

Job evaluation and Remuneration strategy

Achieved None

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2.3 Internal Communications

Target Performance Results Comment

Develop and implement Governance Framework for Internal Communications

Achieved None

2.4 Internal policy and procedure compliance

Quarterly Compliance Reporting3 Internal Audit Plan implementationRisk Management complianceStaff information sessions on new policies

Achieved None

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2.5 Strategy and Programme Co-ordination

Target Performance Results Comment

•FPB Strategic Plan•Turn Around strategy and plan•MTEF Submission•Presentation to PC of Home Affairs on strategy•Develop 11/12 Operational Plan•Staff workshops, MANCO, EXCO•Monthly reporting•Development and submission of annual report

Achieved None

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2.6 Financial Management

Target Performance Results Comment

• Finance Turnaround strategy

• Improve financial admin and reporting

• Unqualified audit report

• Financial Compliance

•Governance Compliance

Achieved Unqualified audit opinion received

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2.7 Governance Structures, Policies and Procedures

Target Performance Results Comment

•Induction programme for new Council•Governance systems•New media training for Council•Council Charter•Compliance matrix

Achieved None

2.8 Personnel Change Programme

•Council appointment•Appointment of Council Committees

Achieved 4 Committees in place•Operations•HR and REMCO•Audit and Risk Committee•Finance

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2.9 Operational Performance Improvement

Target Performance Results Reasons for variance

•Finalise quarterly compliance templates•Training of staff on compliance matrix•Regular meetings of Governance structures (4 meetings / annum for each structure)

Achieved None

PARTIALLY /NON-ACHIEVED • In Q3, HR Manager was dismissed for gross

misconduct, led to delay in achievement of HR deliverables. New HR Manager appointed in 11/12 FY

• Organisation had a 15% vacancy rate – some positions not filled pending outcome of Turn-Around project – 80% of the vacancies at management level have since been filled.

• Council alerted to these challenges and affected programmes were deferred to 2011/12 FY.

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SO3: FORM AND MAINTAIN NATIONAL AND

INTERNATIONAL PARTNERSHIPS, AND CO-

ORDINATE INITIATIVES THAT SUPPORT BUSINESS

OF FPB

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3.1 Industry Transformation Awareness

Target Performance Results Comment

Sectoral workshops with:• MNSO’s, WASPA and ISPA on amendments•publication industry • LG Councillors and Council Officials / provinces

Achieved None

INHOPE Membership (2 meetings)Study Tour to PEGIParticipate in 1 regional and 2 international film festivals

Achieved None

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SO 4: POSITION FPB AS A VISIBLE AND CREDIBLE, PROFFESSIONALLY RUN

ORGANISATION

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4.1 Journalist and Press Engagement

Target Performance Results Comments

Quarterly reports to media on activities of FPBNumber of positive media monitoring reports

Achieved 1320 media items (54% increase from previous financial year)

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4.2 Branding Upgrade

Target Performance Results Comments

Develop repositioning strategy

Partially achieved – Draft repositioning strategy in place, awaiting approval

Media Structure and Skill Programme

Develop integrated Comms strategy inline with Repositioning strategy

Partially achieved Component of Repositioning strategy

Media training for managers and Execs

Achieved None

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5. 2010 ANTI-CHILD PORNOGRAPHY CAMPAIGN

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5.1 2010 PROGRAMMECommunity Mobilization

Target Performance Results

Comments

•Identify rural communities to conduct anti-child pornography workshops•Compliance blitz in communities•Establish partnership with consumer protection groups•Awareness programmes (Moral regeneration movement, religious organisations, Schools, Traditional leaders)

Achieved •170 000 Community members reached•26 Schools in 6 provinces•Distribution of 90 070 promotional material units• 36 outreach and awareness initiatives in 8 provinces • Campaign Ambassadors & patron appointed

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5.2 2010 PROGRAMMEMass Media Campaign

Target Performance Results Reasons for variance

Develop multi-media campaign targeting following platforms:•SABC Radio advertorials•Build in 1 soapie story line•Distribute 2000 posters•Partner with MDDA and reach 30 Community media outlets•> 10 billboards in transit points•Appoint patron and ambassadors

Partially achieved Limited funds for billboards and soapie story lines.

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6. HUMAN RESOURCES: No. Of employees/ Occupation

Category Male Female Total

A C I W A C I W

Execs 1 - - - 3 - - - 4

Senior Management

5 - - 1 4 1 - - 11

Support Staff 19 4 1 1 19 1 1 1 47

Employees with Disabilities

1 - - - - - - - 1

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ANNUAL FINANCIAL ANNUAL FINANCIAL STATEMENTS AND AUDIT STATEMENTS AND AUDIT

REPORTREPORT

REVENUE

• R56.1m received to date as grant as compared to R39.7m received in the previous financial year.

• R8.6m was generated from regulation fees as compared to R7.7m in the previous financial year. Revised tariffs have been implemented from the 01st of October 2010.

• Overall income received to date is R65.1m and R49.1 received in the previous period .

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EXPENDITURE

• Administrative staff costs of R17.3m was incurred for the current year.

• Classifiers fees paid for the current year R3.6m.

• General operating expenses of R33.5m as compared to R26.5m for the previous period. The increase in operating costs was mainly due special project i.e. 2010 Anti-Child pornography awareness campaign targeted to the FIFA World Cup.

• A surplus of R3,664,349 was recorded during the year as compared to R2,977,995 deficit recorded in the previous’ year financial year.

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7. STATEMENT OF FINANCIAL PERFORMANCE

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DESCRIPTION 201112 MONTHS

(RANDS)

201012 MONTHS

(RANDS)

REVENUE 65,145,725 49,121,984

GRANT SUBSIDY 56,187,000 39,797,000

REGULATION FEES 8,422,928 9,067,986

OTHER INCOME 97,487 256,998

EXPENDITURE 61,481,376 52,099,978

PERSONNEL EXPENDITURE 27,460,652 25,588,789

- Admin staff 23,850,948 22,635,003

- Classifiers 3,609,704 2,953,786

OTHER OPERATING EXPENDITURE 33,569,789 26,511,189

(DEFICIT)/ SURPLUS 3,620,717 (2,977,994)

AUDIT REPORT

• The Film and Publication Board obtained an UNQUALIFIED AUDIT OPINION.

• No matters of emphasis were reported by the Auditor General.

• Non – compliance with PFMA was reported as a result of irregular and fruitless and wasteful expenditure being incurred and reported during the financial year. (Page 98 note 25 and 26 of the annual financial statements.

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FRUITLESS AND WASTEFUL EXPENDITURE – R433, 244

• Fruitless expenditure of R48,738 came to the attention of the FPB. The fruitless expenditure is as a result of interest and penalties charged by SARS for late submission of the EMP201 for March 2011.

• R19,971 for cancellation of international flights tickets.

• R19,205 for incorrect printing of security paper.

• R345 340 provision made for penalty on non renewal of the office space rental.

•Necessary management action has been taken against officials responsible for this expenditure

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IRREGULAR EXPENDITURE = R110, 940

• R23,940 was incurred during the financial year as a result of overruns paid to a consultant.

• R87,000 was incurred as result of payments for security services without a signed agreement with the co-tenant.

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THANK YOUTHANK YOU