The Market Theatre Foundation

Annual Report 2006 / 2007

Presentation by: Sibongiseni Mkhize CEO

Christine McDonald CFO

HISTORY

• 30th birthday in June 2006• New management appointed in 2004• Declared Cultural Institution in 2005• Adverse audit opinion from 1994 to 2004• Risk Framework and Internal Audit – 2005• Skills Audit – 2005• Staff Development Plans – 2006• Policies and Procedures documented - 2006

TRENDS

2003 2007

Productions 14 25 Patrons 41 000 64 000Door takings R1 mil R3 milMPW project expenses R400 000 R1,2 mil Lab project expenses R1,6 mil R2,3 mil Production costs R4,5 mil R11,6 milStaff 43 44

PRODUCTIONS

• Won 8 Naledi Awards• Produced 17 (2006: 23) of the 26 (2006:

25) productions staged• A total number of 64 000 (2006: 72 000)

patrons visited the theatres of which 46 500 (2006: 54 000) bought tickets

• Occupancy increased from 49% in 2006 to 60% in 2007

• Publicist won ACT Publicist of the Year

MARKET LABORATORY

• 18 local groups and 26 groups from the Provinces performed at the Annual Community Theatre Festival

• 10 groups (8 from Provinces) performed at the Zwakala Festival

• 18 students graduated from the Drama School in December 2006

MARKET LABORATORY

• Saturday class – 46 students completed the course

• Children’s class – 63 children completed the course

• The Lab hosted three Resident Projects and the Writers’ Forum

• Broken Dreams performed to 12 772 learners in 38 schools

• The play The Island & The Apple Box performed at 125 schools to 49 959 learners

MARKET PHOTO WORKSHOP

• Awarded the Arts & Culture Trust’s Cultural Development Project Award

• New Foundation Course curriculum • Second year intake of the PDP students• 106 students trained in 6 new short courses• 44 students trained in the Photography Learnership and

PDP• 64 students trained in intensive outreach training in

Limpopo and Gauteng.• ‘Invisible Woman’, exhibition of the second recipient of

the Edward Ruiz Mentorship, Sabelo Mlangeni• ‘Back and Forth’ exhibition, PDP students documenting

informal cross border traders

MISSION

To create an authentic South African cultural experience which is committed to providing the highest level of artistic excellence in all aspects of the performing and visual arts in which the education and development of a diverse community of artists, audiences and technicians is assured

VISION

In order to realise our mission, our vision is to ensure the long term future of the MTF by:

• producing and providing a platform for a professional performing and visual arts repertoire that is authentic and artistically excellent;

• developing the next generation of South African performing and visual arts talent;

• engaging, educating and developing a diverse community through the performing and visual arts to become enthusiastic audience members and supporters

CAPACITY CONSTRAINTS

• Lack of funding

• Staff shortage and the skills levels

• No Capital Works funding

• Uncertainty re premises

• No tax incentives for funders

DONATIONS• Arts Alive• Arts and Culture Trust • Australian Government• CWCI (European Union)• De Beers Fund• Department of Arts and Culture• Ford Foundation• Foshini• French Institute of South Africa• Getty Images• Loewenstein Trust• MAPPPSETA• Mr Charles Diamond• Mr David Newton• Mr and Mrs E Hausman • Mr Roger Jardine

• National Arts Council• National Lottery • Nedbank• Old Mutual• Open Society• Pro Helvetia• Rand Merchant Bank• Royal Netherlands Embassy• Sasol Limited• South African Breweries• Standard Bank• Swedish South Africa Culture

Fund• Swiss Development Agency• Transnet Foundation• WK Kellogg Foundation

STAFFING

• Number of staff – 47– Managers – 10– Administration and technical staff - 37

• Transformation – EE Plan 2007 to 2010

• HR Plan - 2007

TOP 5 RISKS

• Insufficient funding

• Insecure location

• Late payment of funders

• Fraud and corruption

• Contracts of Senior Management up for renewal– CFO 30 April 2008– CEO 31 July 2009– AD 31 December 2009

COUNCIL

MeetingsName of member Gender Race attendedDhlomo-Mautloa B R Female Black 2Kani B J Male Black 2Makwetla M A Female Black 2May I R Dr Male White 4Mda Z Professor Male Black 0*McKenzie P Male Black 2Mkhize S (CEO) Male Black 5Mokone-Matabane S Dr (Chair) Female Black 4Moroka K D Adv Female Black 4Phillips L T Male White 4Spector J B Male White 4Swerdlow A Male White 4

* Professor Mda was granted leave of absence

AUDIT COMMITTEE

MEETINGS

MEMBER ATTENDED GENDER RACE

T F Mosololi (Chair) 3 Male Black

Dr S Mokone-Matabane 3 Female Black

M A Makwetla 3 Female Black

S Mkhize 3 Male Black

AUDIT REPORT

• No matters in Management Letter from Auditor-General

• Unqualified Audit Report

• No emphasis of matter

FINANCIAL HIGHLIGHTS

• The Market maintained its going concern status and ended the year with a surplus of R1,8 million (2006: R371 000)

• The accumulated surplus increased from R1,7 million in 2006 to R4,3 million in 2007

• Cash on hand at year end amounted to R10 million on 31 March 2007 (2006: R7,9 million)

THE MARKET THEATRE FOUNDATION FINANCIAL RESULTS

-5,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEARS

RA

ND

S

Government grant

Donations

Total income

Surplus

THE MARKET THEATRE FOUNDATION FINANCIAL RESULTS

-8,000,000

-6,000,000

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEARS

RA

ND

S

Capital and reserves

Cash

FINANCIAL RESULTS

2003 2007 %

• Capital and Reserves (R2 mil) R10 mil 600% • Fixed assets R4,8 mil R7,7 mil 60%• Bank and cash R82 000 R10 mil

1120% • Total income R18 mil R31 mil 72% • Accumulated surplus (R4,9 mil) R4,3 mil 188%• Net surplus R852 000 R1,8 mil 111%

FINANCIAL RESULTS SUMMARY 2007 2006

R R

Income excl government grant 16 851 405 15 206 278

Expenditure (29 493 712) (25 865 379)

Shortfall before Government Grant (12 642 307) (10 659 101)

Government Grant 14 492 000 11 030 000

Surplus for the year 1 849 693 370 899

STATEMENT OF FINANCIAL POSITION

2007 2006R R

Property, plant etc 7 646 235 7 687 798

Trade receivables 167 852 468 323Bank balances and cash 10 150 744 7 861 649Total current assets 10 318 596 8 329 972

Total assets 17 964 831 16 017 770

STATEMENT OF FINANCIAL POSITION

2007 2006 R R

Equity and liabilities

Capital donations 5 677 856 6 024 141Accumulated surplus 4 339 124 1 685 194Total capital and reserves 10 016 980 7 709 335

Unutilised subsidies 6 012 434 6 328 078Trade and other payables 1 250 739 1 334 942Provisions 684 678 645 415Total current liabilities 7 947 851 8 308 435

Total equity and liabilities 17 964 831 16 017 770

STATEMENT OF FINANCIAL PERFORMANCE

2007 2006 R R

Operating income 4 610 711 3 962 585Government grant 14 492 000 11 030 000Non-operating income 11 642 617 10 784 183Income for the year 30 745 328 25 776 768

Selling costs (12 443 699) (9 945 776)Personnel costs (8 174 606) (7 575 738)Administration expenses (8 875 407) (8 343 802)Surplus / (Deficit) from operations 251 616 (88 548)

Finance costs - (63)Interest received 598 077 459 510

Net surplus for the year 1 849 693 370 899

STATEMENT OF CHANGES IN NET ASSETS

Capital Donations Accumulated Surplus TotalR R R

Balance at 31 March 2005 3 828 377 754 663 4 583 040Utilisation of donation (559 632) 559 632 -Donations received 2 755 396 - 2 755 396Net surplus for the year - 370 899 370 899

Balance at 31 March 2006 6 024 141 1 685 194 7 709 335Utilisation of donation (804 237) 804 237 -Donations received 457 952 - 457 952Net surplus for the year - 1 849 693 1 849 693

Balance at 31 March 2007 5 677 856 4 339 124 10 016 980

DAC AWARD

On 23 October 2007 The Market Theatre Foundation was awarded the prize for the best Audit Reports iro the Public Entities of the DAC for the period 2004/05, 2005/06 and 2006/07

√

THANK YOU

Any questions?