PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE ON ARTS AND CULTURE (24 October 2012) .
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Transcript of PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE ON ARTS AND CULTURE (24 October 2012) .
PRESENTATION TO PARLIAMENT
PORTFOLIO COMMITTEE ON ARTS AND CULTURE
(24 October 2012)
www.statetheatre.co.za
CONTENT1. Overview
2. Vital Statistics
3. Background
4. Strategic Performance Statistics
5. Operational Indicators
6. Human Resources
7. Information Technology
8. Governance and Audit Report
9. Financial Performance
10. Key Focus Areas
11. Conclusion
1. OVERVIEW
This presentation is intended to provide the Portfolio Committee with an overview of the performance of the South African State Theatre in 2011 – 2012 as contained in its Annual Report for the same period and includes:• Background to the Annual Report• Statistical Information• Findings of the Audit Report• Financial Performance• Key Focus Areas
2. VITAL STATISTICS, 2011 - 2012
• Budget R71 827 041
• Revenue R25 155 498• OPEX Grant Funding R37 199 594• CAPEX Grant Funding R5 014 152• Total Employees 119• Total Performance Venues 6• Total Performances 580• Total Attendance 139 224www.statetheatre.co.za
BACKGROUND3.1 Mandate and Role
3.2 Vision, Mission and Values
3.3 Chairperson’s Report
3.4 CEO’s Report
3.5 Artistic Director’s Report
3.6 Strategic Objectives
3.1 Mandate and Role
Constitutional MandateThe mandate of the SA State Theatre is derived directly from the legislative mandate of the Department of Arts and Culture which in turn comes from the Constitution of the Republic of South Africa Act, 1996.
Legislative MandateAs a Cultural Institution we are established under the auspices of the Department of Arts & Culture and are then bound by the Public Finance Management Act 1 of 1999 (PFMA) as well as other applicable legislation.
Policy MandateThe SAST has aligned its legislative mandate to the Department of Art and Culture’s drivers, outcomes and/or outputs.
3.2 Vision, Mission and Values
VisionThe South African State Theatre as a national flagship aspires to be a world leader in the performing arts.
Mission– identify, develop and present the very best performing arts work,– provide programmes which ensure self-generated income, – provide opportunities for the development of emerging arts practitioners,– promote diversity and develop new audiences, and – develop, maintain and upgrade our unique theatre facilities.
Core ValuesCelebration of Excellence - Opportunity and Access - Openness and Integrity - Freedom of Expression - Accountability
3.3 Chairperson’s Report
Financial resultsThe South African State Theatre has managed to meet its financial objectives and increase its self-generated income with further increases projected through to 2015.
Systems and controlsSystems upgrades are being made and controls put in place to monitor performance and make continuous improvements.
Corporate governanceStrengthening of corporate governance practices continues to be a key focus of the Council and Management; both are confident that progress is being made and risks are identified and mitigated in a timely and efficient manner.
3.3 Chairperson’s Report, continued
Revised strategic plan 2012 – 2015
We continue to periodically review the Strategic Plan and take actions consistent with meeting our core business objectives and responding to the changing business environment. Monitoring and measurement techniques are employed to ensure compliance with regulatory bodies and enable The State Theatre to achieve its financial and strategic objectives for the 2012/13 year.
3.4 CEO’s Report
• Our facility• Mandate obligations versus economical
imperatives• The industry• Funding• Clean administration• The immediate future
3.5 Artistic Director’s Report
Actors, Dancers, and Technicians 509
Performances 580
Audience Attendance 139 224
Tickets Sold 124 602 (Used: 106 951)
Complimentary Tickets Issued 49 539 (Used: 32 273)
Total Tickets Sold & Complimentary 174 141
Naledi Awards Won 8
3.5 Artistic Director’s Report, continued
Artistic Programme• Opera• Drama• Arena• Rendezvous• Momentum
3.5 Artistic Director’s Report, continued
Development Programme
• 52 Seasons• Supported by National Lottery• 7 Productions• Momentum Theatre Venue
• Tshwane University Of Technology • Fieldwork programme • 19 Community Groups
3.6 Strategic Objectives
Key Objective 1 Strategy OutputActual
PerformanceComment/ Corrective Action
Develop and Maintain Long-term
Partnerships
Corporate Sector Partnership
Additional Funding secured to improve
service delivery, building development,
maintenance of facilities.
Achieved 2nd MOU of R300 000 to be signed
National, Provincial and Local Government
PartnershipPartially Achieved
Report submitted to DAC for the upgrading of SAST infrastructure
Government Partnership Achieved Several CAPEX projects in progress
Embassies Partnership Partially AchievedCity of Tshwane sponsorship
requested
3.6 Strategic Objectives, continued
Key Objective 2 Strategy OutputActual
PerformanceComment/ Corrective Action
Increase Diversity of Products
Staging & Developing In-House Productions
through commissioning and buying
34 In-house productions /annum
32 ProductionsRendezvous Theatre Programme
part of Calendar
624 Performance Days476 Performance
DaysOpera and Drama Theatre closed for
upgrade January & February
132 181 Audience attendance
139 224 AttendedMarketing Department Restructured.
New Marketing Plan to be developed.
391 Actors Employed /annum
423 Employed
3.6 Strategic Objectives, continued
Key Objective 3 Strategy OutputActual
PerformanceComment/ Corrective Action
Increasing the Diversity of Our
Audience
Market Segmentation and Penetration
Attract LSM 2-6 Community and School
AudiencesPartially Achieved
New and Innovative Marketing Strategies to be Implemented as well Product Diversification together with
Target Market Needs Analysis
3.6 Strategic Objectives, continued
Key Objective 4 Strategy OutputActual
PerformanceComment/ Corrective Action
Promote Enterprise Culture
Develop Human Capital Skills
HOD Training Achieved
HR Strategic plan now approved by
new HR Committee to be implemented
Introduce Performance Management & Appraisal
StructureAchieved
3.6 Strategic Objectives, continued
Key Objective 5 Strategy OutputActual
PerformanceComment/ Corrective Action
Increase Self-Generated Income
Raise Sponsorship Income
R8 166 350 R2 249 890
Unrealistic Baseline as based on 2010 World Cup Funding. Fund
Raising Committee established & will implement action plan
Rental Income
Kilnerton R1 195 080 R1 281 686
Office Block R991 200 R762 119Tenant affordability. New tenants
signed up for 2012-2013
Theatre Rental R3 565 146
R3 326 943Scheduled maintenance in January &
February impacted on rentals
Function Room R99 900 R128 449
Restaurants R574 658 R514 4081 Tenant vacated and another
defaulted in payments
Hiring Décor & Costume R1 418 348 R1 597 193
Increase Ticket Sales of In-House Productions
R3 000 000 R2 130 818Marketing and Sales Strategy
reviewed
Parking Income R10 281 207 R10 074 364Increased Show Production will
increase evening parking
Front of House Income R1 502 405 R1 720 192New Pricing Strategy to be
implemented
3.6 Strategic Objectives, continuedKey Objective 6 Strategy Output
Actual Performance
Comment/ Corrective Action
Develop and Maintain Buildings
Feasibility study for development of SAST
including Kilnerton
Report Implementation by December 2011
R13.21m has been approved
Kilnerton on Hold for possible utilization by DAC
Upgrade of Stage Equipment & Facilities
Theatre fit for purpose Achieved
Develop additional Parking Bays from Costume Storage
area
Create 70 Additional Parking Bays
Study commissionedFor completion 2012-2013. Additional
income potential R403 200 p/a
Building Maintenance
98% of Health & Safety Issues dealt with within 24
HoursAchieved
All issues arising successfully resolved within 24 hours
Implementation of Effective Maintenance Programme
Implemented
Reduction of Man-hours spent on Emergency Repairs
(16)Not Achieved
Old building with latent unforeseeable problems.
Scheduled Maintenance Man-hours 600
1 245 HoursOld building with latent unforeseeable
problems
Health & Safety Audit Partially achievedAircon Service Provider Appointment in
process
Minimise Production disruption
No Cancellations due to Breakdowns
Achieved
Secure Environment for Staff and Audience
Security plan developed and implemented effectively
Achieved
Reduce Incidents to 5Not Achieved. 4 Theft
& 10 IODH&S Audit to be done. New Cameras to
be installed
3.6 Strategic Objectives, continued
Key Objective 7 Strategy OutputActual
PerformanceComment/ Corrective Action
Provide Excellent Customer Care
Create Customer Satisfaction
Increase SAST visibility and customer interaction
Partially Achieved
Implementing CRM System and creating loyalty benefits for valued
customers. Customer care telephone number to be implemented. Annual Customer satisfaction survey to be
implemented
3.6 Strategic Objectives, continued
Key Objective 8 Strategy OutputActual
PerformanceComment/ Corrective Action
Compliance with Legislation
Compliance with PFMANo qualified audit opinion
or emphasis of matter
2 Audit opinions and 1 Emphasis of
Matter
Aggressive Action Plan to address findings in place. Control
environment being addressed & improved. Performance Manager Appointed to ensure Compliance.
Compliance with BCEA, LRA & EEA
Minimise Labour disputes Achieved4 cases arose during the year. 3
ruled in favor of SAST and the 4th is pending
3.6 Strategic Objectives, continued
Key Objective 9 Strategy OutputActual
PerformanceComment/ Corrective Action
Develop and Train Staff
Training Strategy Staff training Partially AchievedStrategy approved by New HR
Committee and now being implemented
Employee Recognition & Improved Communication
Policy development Partially AchievedPolicy approved by New HR
Committee to be implemented 2012-2013
3.6 Strategic Objectives, continued
Key Objective 10 Strategy OutputActual
PerformanceComment/ Corrective Action
Enhance cost efficiency within the
organisation
Install Software to manage Venue Hire & Planning
Installation complete September 2011
Not AchievedProject abandoned due to lack of
funding
Performance Information Management
Quarterly Reporting Partially AchievedQuarterly reporting is achieved. Performance Information Policy
being developed
Moonlighting Policy New policy by May 2011 Partially Achieved Policy amendments pending
4. GENRE REPORT
0% 4%8%
7%
9%
27%
11%
27%
2%1% 4%
Aw ards
Childrens Theatre
Comedy
Concert
Dance
Drama
Festivals
Music
Opera
Student Production
Workshops
OPERATIONAL INDICATORS
5.1 Operational Indicators
5.2 Historical Operational Indicators
5.1 Operational Indicators: Revenue
56%
7%
36%
1%
Grant OPEX
Grant CAPEX
Revenue from Operations
Investment Income
5.2 Operational Indicators: Expenditure
26%
14%
1%
46%
13%
Administrative
Selling & Distribution
Refreshments
Employee Costs
Other Expenses
5.2 Historical Indicators: Revenue
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12
Financial Year
R'0
00
StateContribution
Revenue fromOperations
Other Income
5.2 Historical Indicators: Expenditure
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12
Financial Year
R'0
00
Administrative
Selling & Distribution
Refreshments
Employee Costs
Other Expenses
HUMAN RESOURCES
6.1 Organisational Structure
6.2 Human Resources Strategy
6.3 Employment Equity Programme
6.1 Organisational Structure
6.2 Human Resources Strategy
• Minimise Industrial disputes• Compliance with the Labour Law• Recruitment process efficiency• Customer Care Training• Improve internal communications• Develop a learning culture• High level of skill and care in administration• Awards for good practice• Transformation staffing of competent
individuals
6.3 Employment Equity Programme
PROFILE 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Occupational Levels A.C.I W A.C.I W A.C.I W A.C.I W A.C.I W A.C.I W
Management 2 1 3 1 4 1 4 1 4 1 3 2
Middle Management & High Level Specialists
5 4 5 5 5 6 5 6 5 6 6 5
Supervisors & High Skilled/Clerical
36 13 32 10 31 9 32 9 33 9 33 9
Lower Level Skilled/Clerical 42 7 53 4 46 4 46 5 45 5 47 5
Very Low Skilled 4 0 7 0 7 0 7 0 7 2 7 2
CATEGORY TOTAL 89 25 100 20 93 20 94 21 94 23 96 23
ANNUAL TOTAL 114 120 113 115 117 119
6.3 Employment Equity Programme, continued
OCCUPATIONAL LEVELS FILLEDAFRICAN COLOURED INDIAN WHITE
M F M F M F M F
Management Yes 2 1 0 0 0 0 1 1
Middle Management & High Level Specialists
Yes 1 5 0 0 0 0 3 2
Supervisors & High Level Skilled/Clerical
Yes/No 16 13 2 2 0 0 4 5
Lower Level Skilled/Clerical Yes/No 24 16 3 4 0 0 2 3
Very Low Skilled Yes 5 2 0 0 0 0 2 0
CATEGORY TOTAL 48 37 5 6 0 0 12 11
ANNUAL TOTAL 85 11 0 23
119
7. INFORMATION TECHNOLOGY
Focus areas: • Acquisition of Event and Programme Software;• Acquisition of Pastel Payroll;• Integration of Pastel Payroll with Pastel Evolution Accounting;• Implementation of Fixed Assets Management Software to
accurately manage asset values;• Upgrade Server Software from Small Business 2003 to SB 2008;• Standardise Windows platform and upgrade to Windows 8 when
it become available; and• To review the Internet Service Provider to ensure best value for
money and maximise functionality.
8. GOVERNANCE AND AUDIT REPORT
Basis for qualified opinion
1. Trade and other payables from exchange transactionsNo system of control over the recording of outstanding invoices at year-end and no reasonable assurance that all outstanding invoices have been accrued or provided for.
2. Irregular expenditurePayments were made in contravention of the supply chain management requirements amounting to R1 563 712 (2011: R8 810 367). No system of control over irregular expenditure.
FINANCIAL PERFORMANCE9.1 Statement of Financial Performance
9.2 Statement of Financial Position
9.3 Statement of Changes in Net Assets
9.4 Cash Flow Statement
9.5 Statement of Comparison of Actual & Budget
Amounts
9.1 Statement of Financial Performance
9.2 Statement of Financial Position
9.3 Statement of Changes in Net Assets
9.4 Cash Flow Statement
9.5 Statement of Comparison of Actual & Budget Amounts
10. KEY FOCUS AREAS
• Clean Administration through the centralisation of Procurement & Implementation of Compliant Asset Management Processes & Controls
• Implementation of Audience Development Programme in partnership with external stakeholders
• Improve Income from Self-generated Productions• Expand Scope of Development efforts & Introduce
Partnership Approach• Introduce Human Resources Grading and Performance
Management System• Introduce Career Development Programmes for Staff
Development• Introduce Compliance Management
11. CONCLUSION
The South African State Theatre remain and iconic institution. We are striving to consistently meet this standard in our programme content, patron entertainment experience and in our administration. Our intentions are well facilitated through “fit for purpose” operational activities. There is increased pressure on our organization to become financially sound due to imminent Department of Treasury budget restrictions. We are strategically enabling ourselves to increase and improve our income streams. This will enable us to drive key projects, aimed at improving our business holistically. We are ready for the future.