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