Eastern Cape Provincial Arts and Culture Council ANNUAL REPORT

Transcription

1 Eastern Cape Provincial Arts and Culture Council ANNUAL REPORT for the year ended 31 March

2 Table of Contents 2

3 SUBMISSION OF THE ANNUAL REPORT 5 1. GENERAL INFORMATION 1.1 Vision, Mission and Values Organisational Structure Legislative Mandate General Information Accounting Officer s Overview INFORMATION ON PREDETERMINED OBJECTIVES 2.1 Overall Performance Voted Funds Mandate of the entity Summary of Programmes Key strategic objectives and achievements Overview of the service delivery environment for 2010/ Overview of the organisational environment for 2010/ Key policy developments and legislative changes Capital investment, maintenance and asset management plan Programme Performance ANNUAL FINANCIAL STATEMENTS 3.1 Report of the Audit Committee Report of the Accounting Officer Report of the Auditor-General Report of the Accounting Authority Statement of Responsibility of the Accounting Authority Statement of Financial Performance Statement of Financial Position Statement of Changes in Net Assets Cash Flow Statement Statement of Accounting Policies Notes to the Annual Financial Statements Detailed Statement of Financial Performance HUMAN RESOURCES MANAGEMENT 4.1 Employment and vacancies Job Evaluation Employment equity Foreign workers Labour relations Injury on duty Utilisation of consultants OTHER INFORMATION 5.1 List of Acronyms List of contact details 85 3

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5 Submission of the Annual Report In terms of the Public Finance Management Act, No.1 of 1999 as amended, (PFMA), section 40(1)(d), I, Themba Raymond Mehlala, in my capacity as the Accounting Officer, has the honour of submitting the Annual Report of the Eastern Cape Provincial Arts and Culture Council for the period 1 April 2010 to 31 March TR MEHLALA Accounting Officer 31 August

6 1. General Information 6

7 1.1 Vision, Mission and Values Vision To create an enabling environment for the development of arts and culture in the Eastern Cape Province Mission To promote, support, develop, protect, preserve the arts, enhance public appreciation and participation in the arts and ensure the development of a broad, inclusive and identifiably Eastern Cape culture Values Artistic freedom Capacitating Caring Continuous improvement Customer satisfaction Democracy Empowerment through people capacitation Engagement Entrepreneurship Good citizenship Innovation Lifelong learning Integrity and transparency Quality and service excellence Transformation Good corporate governance 7

8 1.2 Organisational Structure ECPACC COUNCIL PERSONAL ASSISTANT (vacant) CHIEF EXECUTIVE OFFICER EASTERN CAPE ARTS AND CRAFT HUB MANAGER AMATHOLE ACH CRAFT HUB MANAGER CHRIS HANI CHH ARTS AND CRAFT HUB MANAGER FINANCE MANAGER FILM MANAGER ARTS DEVELOPMENT MANAGER ADMIN. SUPPORT ADMIN. SUPPORT ADMIN. SUPPORT ACCOUNTS CLERK 2 X ARTS DEVELOPMENT OFFICERS (vacant) RECEPTION- IST RECEPTION- IST RECEPTION- IST RECEPTION- IST HUMAN RESOURCES OFFICER (vacant) 2 X GENERAL ASSISTANTS 2 X GENERAL ASSISTANTS 2 X GENERAL ASSISTANTS 2 X GENERAL ASSISTANTS 8

9 1.3 Legislative Mandate The Eastern Cape Provincial Arts and Culture Council (ECPACC) was established by means of Act No.6 of 2000 (Eastern Cape) and is listed in the PFMA as a schedule 3C public entity of the Department of Sport, Recreation, Arts and Culture. ECPACC is entrusted with the responsibility of fostering the arts and promoting the culture of the Eastern Cape, to allow for the expression of the unique identity of the province and enable its artists to realise their potential through their expression of the arts to build an improved quality of life for themselves and their communities. The main constitutional, functional and policy mandates that guide activities of the council are the: Basic Conditions of Employment Act Cultural Institutions Act Division of Revenue Act. Eastern Cape Provincial Arts and Council Act Employment Equity Act. Labour Relations Act National Arts Council Act Occupational Health and Safety Act. Preferential Procurement Policy Framework Act. Promotion of Access to Information Act. Promotion of Administrative Justice Act. Public Finance Management Act (PFMA), Treasury Regulations and Provincial Directives. Public Service Act and Regulations. Skills Development Act, Skills Development Levies Act South African Qualifications Authority Act. 9

10 1.4 General Information Country of incorporation and domicile: Nature of business and principal activities: Councillors: South Africa Support of Arts & Culture Mr. Monde Ngonyama (Chairperson) Dr. Sukude Matoti (Deputy-Chairperson) Ms Peggy Calata Professor Dominic Thorburn Mr. Vukile Pokwana Ms Nokuzola Magida Registered office: 16 Elton Street Southernwood EAST LONDON 5201 Business address: 16 Elton Street Southernwood EAST LONDON 5201 Postal address: P. O. Box Quigney EAST LONDON 5211 Bankers: First National Bank Auditors: Auditor-General South Africa 10

11 1.5 Accounting Officer s Overview The 2010/11 financial year was a momentous and eventful year, indeed, in terms of service delivery and stakeholder exposure. The once in a lifetime opportunity presented to South Africa, in particular and Africa in general presented its fair share of expectations and challenges to the arts and culture industry in the Eastern Cape Province. I must hasten to add that the Eastern Cape Department of Sports, Recreation, Arts and Culture under the leadership of honourable Mrs Xoliswa Tom should be hailed for ensuring that Eastern Cape arts practitioners and crafters alike benefitted immensely from the hosting of a cultural programme that coincided with the soccer world cup tournament matches in the Nelson Mandela Metro Municipality. This was realised through a partnership that was forged between the Department of Sport, Recreation, Arts and Culture, the Eastern Cape Provincial Arts and Culture Council and the National Arts Council. Performances and exhibitions were held. The economic gain to the artists and crafters were great. The entity disbursed project funding and bursary awards to a number of beneficiaries during the year under review. For the first time in the history of the entity the biggest number of bursaries (34) was awarded to students from the rural Lovedale FET College Arts Campus in Alice. This step will surely be a big boost for the elevation of all our communities and enhancing the potential for growth of the arts and culture industry in the province. The entity undertook a different approach in the sense that a public project handover ceremony was held in the Amathole District where seventy projects were granted funding. The term of office of the Councillors that have been in office for three consecutive terms expired on 31 May An interim council of eight councillors was appointed by the MEC for a one year period to fulfil nine (9) terms of reference. The attainment of the terms of reference will result in the following; the review of the ECPACC Act, review of the funding model, configuration of the financial and human resource management as well as the production of a strategic plan for the entity that is informed by the new and expanded mandate of the entity. During the year under review all the vacant posts at the Amathole Craft Hub (Dimbaza), the Chris Hani Craft Hub (Queenstown) and the Eastern Cape Arts and Craft Hub (Mthatha) were filled. The appointment of an Arts Development Manager at the East London Head Office has resulted in the entity having the capacity to conduct pre-assessment of project applications for both the National Arts Festival and the annual district projects. Working in close collaboration with district officials of the Department of Sport, Recreation, Arts and Culture, the Arts Development Manager visits district project applicants, advises, guides, assesses them and makes recommendations to the Council. The film office was allocated an increased budget during the financial year in order to steer the development of a dynamic and vibrant film industry in the Eastern Cape Province. This office is also charged with a responsibility to market the Eastern Cape as an ideal location for film productions. During the year under review this office commissioned the development of two documentaries and a DVD. The two documentaries will be finalised in the first quarter of the new financial year. An integrated Pastel accounting system was implemented by the entity during the year under review. This is in line with the recommendation of the Auditor-General that an integrated accounting system that interfaces with Head Office are installed at the three craft hubs. This step will also serve to ensure that effective, efficient and transparent financial management systems are firmly in place at the entity. The ECPACC stipulates that there should be an honorarium for councillors for providing expertise and services to the organization. The entity implemented the Councillor Remuneration, Subsistence and Travel Policy that was approved by the Honourable MEC during the year under review. The core mandate of the entity is that of promoting the development and appreciation of arts and culture. The entity, therefore, is hoping to play a meaningful role in the development and launch of provincial sector plans on craft, music, film and performing arts the Honourable MEC for Sport, Recreation, Art and Culture, Mrs Xoliswa Tom mentioned in her 2011/2012 Policy Speech. 11

12 One of the submissions made at the Mzantsi`s Golden Economy Consultative Conference convened by the Department of Arts and Culture (DAC) on April 2011 at the Newtown Cultural Precinct in Johannesburg was that the creative economy in South Africa has the potential to be a leading sector in generating economic growth, employment and trade as in the case in many advanced economies. The entity, as the provincial department`s arts and culture agent has an obligation to play a central role in ensuring that government conserves, protects and preserves our culture and heritage. The Council is, therefore, looking forward to the hosting of the provincial chapter of the above conference in the new financial year. In conclusion, the Council wishes to convey its appreciation to the Honourable MEC, Mrs Xoliswa Tom, Office of the MEC personnel, the Head of Department and all departmental officials for the guidance and support provided to the entity during the year under review. The attainment of an unqualified audit report during the year under review would not have been achieved without your continued stewardship. The Council wishes to thank the past councillors of the entity and the audit committee for the leadership, commitment and sacrifice they demonstrated when discharging their oversight role during the year under review. The Council also wishes to thank its staff at both Head Office and the Craft Hubs for the hard work, dedication and sacrifice that they put in to ensure that the entity grows from strength to strength. Yours in the unwavering pursuit of a dynamic arts and cultural landscape for the Eastern Cape Province. TR Mehlala 31 August

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14 2. Information on Predetermined Objectives 14

15 2.1 Overall Performance The purpose of this report is to provide balanced and reliable information regarding the Eastern Cape Provincial Arts and Culture Council`s performance against its planned objectives as contained in its strategic plan Voted Funds Table 1: Final Appropriation for the year ended 31 March Appropriation Main Appropriation Actual Amount spent Amount to be appropriated R12, 225m R14, 744m R2 519m Responsible MEC Administering Department Accounting Authority Accounting Officer Mrs Xoliswa Tom Over Expenditure Department of Sport, Recreation, Arts and Culture Eastern Cape Provincial Arts and Culture Council Mr TR Mehlala Mandate of the Entity The mandate of the entity is to promote the development and preservation of arts and culture in the Province. The entity also strives to enhance public participation in the arts and ensure the development of a broad, inclusive and identifiable Eastern Cape culture Summary of Programmes The budget structure of the entity consists of the four programmes in line with the core functions of the entity. The programmes are as follows: Programme 1: Administration Programme 2: Attainment of Excellence Programme 3: Support to Artists Programme 4: Enterprise Development and Partnerships Key Strategic Objectives and Achievements Provide strategic leadership and administrative support Provide effective management to enhance service delivery Build a competent, qualified and diverse workforce Build an organisational culture and mind-set that promotes competence and excellence Promote internationally accepted best practice supply chain management (SCM) 15

16 Provide sound financial management systems Identification and capacitation of arts and culture projects of excellence Promotion and development of cultural industries Identification and development of community arts and culture individuals and groups Build cohesive, caring and sustainable communities Achievements There were many noteworthy achievements that came out of the projects the entity embarked on. These are over and above the targets that the entity set out to achieve during the year under review. The following were achieved: The appointment of an Arts Development Manager responsible for pre-assessment, monitoring and evaluation and post-assessment of funded projects. The formation of a partnership between the entity and the National Arts Council (NAC) that benefitted the Eastern Cape artists and crafters during the period of the 2010 Soccer World Cup. The introduction of an integrated Pastel system linking craft hubs and head office. All vacant support staff posts at the three craft hubs were filled during the year Overview of the service delivery environment for 2010/11 The review of the current financial year reflects the following successes with regard to key projects that the entity undertook. As an entity charged with the responsibility of promoting the development of arts and culture in the Eastern Cape Province, a number of crafters were assisted in marketing and subsequent selling of their craft. The three craft hubs strategically placed in Mthatha, Queenstown and Dimbaza served as service points for the display and selling points for these craft works. The sales generated at the three craft hubs boosted the income and employment potential of the mainly rural women crafters for the 2010/11 financial year. In an effort to increase the income generation potential of both performing artists and crafters alike, the entity also forged some partnerships with other formations. Partnerships with the National Arts Council during the period of the 2010 soccer world cup tournament served to make the 2010 cultural programme in Port Elizabeth possible. Various artforms, namely: drama, music, dance, poetry, crafters etc. were afforded the opportunity to gain through their participation in this extravaganza, thereby gaining economic benefits from the hosting of the world cup in South Africa. The hosting of the annual Wild Coast Cultural Festival in Port St John s in December 2010 also provided an opportunity for provincial artists to gain training and development and capacitation in various areas. Product development for crafters was another area where interventions were offered Overview of the organisational environment for 2010/11 The filling of all vacant posts in the craft hubs in Dimbaza, Mthatha and Queenstown as per the approved organisational structure of the organisation was achieved during the year under review. These appointments mean that the three craft hubs have a full complement of staff that will enable the hubs to carry out their mandate. The resignation of the Amathole Craft Hub Manager in Dimbaza, King Williamstown in May 2010 impacted negatively on the preparations and implementation of the planned 2010 projects planned for the hub. However, the subsequent appointment of a new manager has inspired the efforts of the entity to deliver value to its beneficiaries, artists and crafters. 16

17 The term of office of the Council that oversees governance at the entity ended on 31 May A new Interim Council took office on 01 June Its term will end on 01 June This Interim Council was given terms of reference to fulfil during its year long term. A final report will be presented to the Member of the Executive Council (MEC) for Sport, Recreation, Arts and Culture before 31 May Key policy developments and legislative changes One of the Terms of Reference for the Interim Council is that it must participate in the review of the ECPACC Act. In an effort to achieve this, the entity has engaged in this process which is spearheaded by the department. This review process will spill-over to the 2011/12 financial year. The other term of reference is that of the development of a new funding model for the organisation. When completed, this will bring into the organisation a new dimension into the funding of community arts groups. This process will also spill-over into the 2011/12 financial year. The accomplishment of the Interim Council terms of reference will have huge implications for the strategic direction the entity engages in going forward. This will mean that in the 2011/12 financial year the entity will have to embark on a strategic planning and consultative process that seeks to shape this direction. The inevitable outcome will be the review of the strategic plan and annual performance plan of the organisation Capital Investment, maintenance and asset management plan Capital Investment No funds were appropriated for this purpose because investment in capital is not part of the entity`s core functions. The only capital investment made was for the purchase of office furniture, office equipment and computer hardware for R126, 225. Maintenance Maintenance is the responsibility of the owner of the property. Maintenance carried out in the year amounted to R34, 219. Asset Management The assets of the entity are captured in the Asset Register. This register is compliant with the National Treasury Guidelines. 17

18 2.2 Programme Performance The activities of the Eastern Cape Provincial Arts and Culture Council are organised in the following programmes: Programme 1: Administration Programme 2: Attainment of Excellence Programme 3: Support to Artists Programme 4: Enterprise Development and Partnerships Programme 1: Administration Purpose The purpose of this programme is to provide overall management and administrative support to the units of the entity. Strategic Objectives Fully researched policies developed and implemented Performance and Expenditure reports developed and submitted Annual reports compiled and submitted timeously Effective and reliable ICT service provided to users Timeous payment of creditors within 30 days of receipt of invoice Submission of annual budgets Submission of annual financial statements Website updated and maintained consistently Adherence to internal control measures A competent and qualified diverse workforce Service Delivery Achievements and Challenges Achievements The following service delivery achievements were attained during the year under review: (a) Integrated Pastel system An integrated Pastel system was installed during the year under review. This development will ensure that there is interface between the craft hub operations and the head office. 18

19 (b) Policy review and development Fourteen finance related policies were either reviewed or new ones developed during the year. Through these policies the entity was able to address internal control deficiencies that were detected in the last financial year. (c) Risk Management The entity conducted an internal risk management workshop during the year. This workshop which was attended by both councillors and management was aimed at assessing both inherent and residual risks facing the entity. It provided an ideal opportunity for both council and management to have one understanding of the objectives, risks and controls within the organisation. Bottlenecks and barriers to the attainment of set objectives were identified, rated and targeted. Mitigating factors for each risk were also developed. (d) Arts Development Manager An Arts Development Manager responsible for pre-assessment, monitoring and evaluation and postassessment of funded projects was appointed during the year under review. This development will serve to enhance the monitoring and evaluation of projects and bursaries funded by the institution. A monitoring and Evaluation tool has since been developed and approved by the Council. This template will henceforth be used in the monitoring and evaluation of funded projects. (e) Recruitment of staff In the quest to build and nurture a competent, qualified and diverse workforce the vacant posts at the three craft hubs in Dimbaza, Mthatha and Queenstown were filled during the year under review. The filling of these posts will surely have positive spin-offs for service delivery going forward. The objective of engendering an organizational culture and mindset that promotes competence and excellence can only be realized through steps like these. In the coming financial year all efforts will be exhausted on filling the few vacant posts at Head Office. This, however, will hinge on the availability of the budget. Challenges The major challenge the entity faces here is the inability to employ at least two arts development officers who would be deployed to various districts to monitor and evaluate all funded projects. The current situation is that the Arts Development Manager is only able to operate optimally with regards to pre-assessment and assessment projects through the support of departmental district officials. Planned improvement measures The concerted effort of seeking alternative sources of funding in the new financial year will help alleviate the situation. The other option the entity is going to explore is that of recruiting interns (unemployed students with arts related qualifications) to assist with this process. 19

20 Service Delivery Objectives and Indicators Programme 1 : ADMINISTRATION Strategic Objective Performance indicator Annual Target Actual Performance against Target Target Actual Reason for Variance 1 To provide strategic leadership and administrative support in the execution of the mandate of the entity Fully researched policies developed and implemented Performance and expenditure reports developed and submitted Management presented the fourteen policies for discussion and approval to the Interim Council. The Council discussed the policies but deferred the approval thereof to its meeting scheduled for 30 May A competent and qualified diverse workforce Annual report compiled and submitted timeously Provide effective management and administrative support to enhance service delivery Effective and reliable ICT service provided to users Website updated and maintained consistently To implement an integrated Supply Chain Management System that seeks to introduce internationally accepted best practice principles Timeous payment of creditors within days of receipt of invoice Adherence to internal control measures Plan and implement a sound budget for the entity Submission of annual budgets 1 1 Annual financial statements compiled

21 Programme 2: Attainment of Excellence Purpose The purpose of the programme is to nurture and develop projects of excellence in the field of arts, craft, music, film, dance, language, publishing and other artforms. Strategic Objectives Uniquely Eastern Cape arts and craft exhibited nationally and internationally EC artists win awards and accolades nationally and abroad Manuscripts published in the Eastern Cape are launched regionally and nationally Supported artists become self-sustainable entrepreneurs and performers Timeous payment of artists who have done performances-within days of receipt of invoice Timeous payment of crafters whose consignment stock has been bought at the Craft Hubs Craft hub monthly sales reports Quarterly reports training from craft hubs submitted timeously Job creation opportunities increase in the small business sector Service Delivery Achievements and Challenges Achievements (a) 2010 Soccer World Cup and National Arts Festival Projects of Excellence Forty Four (44) uniquely Eastern Cape projects were granted funding to showcase their products and display their talents to the tourists and fans who had come to the country for the soccer showpiece. These projects of excellence also used the funding provided for transport, accommodation, performances, hire stalls and sell craft productions at the Annual National Arts Festival in Grahamstown during the year under review. (b) International Art Exhibition Antonio Leeuwskieter, a visual artist from the Nelson Mandela Metro was granted funding that enabled him to exhibit his artworks in the Netherlands (Holland) during the year under review. He was part of an art exhibition held in Heerhugowaard in the Netherlands that will surely provide international exposure for other South African artists. (c) Publication of Manuscripts Three Sesotho manuscripts and the 4 th Volume of the Isivivane publication were launched at the National Festival (Wordfest) in Grahamstown in the 2010/11 financial year. The Kotaz- a magazine of post apartheid poems and short stories was also launched during the year. Another crowning glory in this area was the launch and publication of a manuscript by Dr Phil Ndlela at the Wordfest in Grahamstown. Dark Clouds at Sulenkama by Mr Joe Majija of the OR Tambo was also launched on 27 January (d) National Craft Exhibition The Amathole and Ukhahlamba Crafters Associations were provided with funding that made it possible for them to hire stalls, exhibit and sell their wares at the annual Mangaung Cultural Festival (MACUFE) in Bloemfontein, South Africa. 21

22 (e) Awards and accolades An Afro-Jazz group from the Nelson Mandela Metro, Fohloza gained national prominence during the year under review. Another Eastern Cape artist Veliswa Skeyi continued to grace the national charts with her gospel renditions. (f) Increased Craft Hub Sales The three craft hubs based in Dimbaza, Mthatha and Queenstown which were established in order to serve as centres where provincial craft products could be marketed and sold on behalf of the mainly rural and semi-urban women crafters in order to provide sustainable income continued to deliver good sales in the 2010/11 financial year. Not only did they do the above, but they also offered product development training for crafters in order to improve the quality of their products so that they could be competitive in national and international markets. Challenges (a) Capacity building Budgetary constraints continued to frustrate the provision of more opportunities for the practise and appreciation of arts, culture and languages for Eastern Cape cultural practitioners. For instance, the craft hubs could not offer more product development training for crafters due to financial constraints. (b) Vehicles for the three craft hubs The entity cannot afford to buy commercial vehicles for the three craft hubs. This is due to the limited budget allocation. Craft hubs, as a result struggle to transport craft works to district, regional and national exhibitions. These missed opportunities deprive the crafters of much needed sales made possible by these exhibitions. (c) Inaccessibility of Craft Hubs Both the Eastern Cape Arts and Craft Hub (Mthatha) and the Amathole Craft Hub (Dimbaza) are located in industrial areas and are not accessible to the tourists, crafters, artists and members of the public. Planned improvement measures (a) Capacity building The entity will double its efforts in trying to forge partnerships with like-minded institutions with a view to acquiring funds for training and development of artists and crafters alike. (b) Vehicles for the craft hubs The entity will endeavour to put together a robust fundraising strategy focussed at the private sector in the new financial year. The acquisition of a bakkie or a commercial vehicle for each of the three hubs will be at the centre of this fundraising drive. (c) Inaccessibility of the craft Hubs The entity, in partnership with the department and other stakeholders is exploring all avenues aimed at acquiring use of accessible premises for the units when the current lease agreements expire. 22

23 Programme 2 : ATTAINMENT OF EXCELLENCE Strategic Objective 1 Identification and capacitation of arts and culture projects of excellence 2 Promotion and development of cultural industries Performance indicator Annual Target Uniquely EC arts and craft exhibited nationally and internationally EC artists win awards and accolades nationally and abroad Manuscripts published in the EC are launched regionally and nationally Supported artists become self-sustainable entrepreneurs and performers Timeous payment of artists who have done performances-within days of receipt of invoice Timeous payment of crafters whose consignment stock has been bought at the hubs Craft hub monthly sales reports Reasons for major variances Quarterly training reports from craft hubs submitted timeously Job creation opportunities increase in the small business sector Actual Performance against Target Target Actual Reason for Variance There were no arts and culture events in the fourth quarter where art and craft could be exhibited Only two achieved national and international honours More manuscripts were launched in order to coincide with the 2010 soccer world cup tournament and the 2010 National Arts Festival The development of our artists to the level of sustainability does not happen at the anticipated rate due to the unavailability of development opportunities in the province Financial limitations mitigated against the provision of more training interventions at the craft hubs This target was deferred due to financial constraints Budgetary constraints resulted in limited training opportunities and the deferring of targets As a result of the budgetry constraints and the concomitant impact on the achievement of service delivery targets, the council and the department are searching an alternative funding model for the institution. The revised model should be implemented in the 2012/13 financial year. 23

24 Programme 3: Support to artists Purpose The main purpose of the programme is to identify and nurture community arts and culture individuals and groups in the various districts of the province. Strategic Objectives (a) Number of district projects granted funding (b) Number of 2010 related projects granted funding (c) Number of students studying arts related courses at tertiary level (d) Post project reports generated and submitted (e) Exhibition opportunities created nationally and internationally (f) Increased performance/appearance opportunities created for artists Service Delivery Achievements and Challenges Achievements (a) Public Project Hand-Over Ceremony The entity held a public project hand-over ceremony at the Mdantsane Art Centre, East London, Amathole District during the year under review. Over seventy (70) projects from this district were awarded funding. Community individual and group projects from other districts were also recipients of this funding. This stakeholder outreach programme was a success judging by the enthusiastic response received from the beneficiaries and the local print media. (b) Soccer World Cup Cultural Programme A partnership was concluded with the National Arts Council in order to make it possible for artists to perform in Port Elizabeth during the period of the soccer world cup tournament. The provincial department of Sport, Recreation, Arts and Culture provided transportation and accommodation for crafters who descended on Port Elizabeth from other provincial districts at the Culturama campsite situated in the Nelson Mandela Metro. This partnership enabled provincial arts practitioners to enjoy the economic benefits from the holding of the event in South Africa. Crafters were also accorded the chance to exhibit and sell craft at the PE Fan Fest. (c) Bursaries awarded A total of one hundred and twenty four (124) bursaries were awarded to deserving Eastern Cape students studying visual art, fine art, music, drama, film, language, dance and craft at various tertiary institutions in the country and abroad. Fifty two percent (52%) of the recipients were female students. Ninety percent (90%) of these beneficiaries were black students and ten percent (10%) were white students. 24

25 Challenges Over reliance on limited funding from the entity compromises the successful implementation of projects. Familiarity with the requirements in the project application forms is a challenge, especially for most of our artists and crafters who come from rural background. Planned Corrective Measures The entity has begun a process of advising the arts community about funding opportunities in the country. Funding agencies like the National Arts Council have been requested to send their application forms to our provincial offices so that the entity may give them to applicants who frequent our offices. The entity has developed two sets of application forms, an individual and a group application form. These standard forms have already been explained to potential applicants at various workshops in the province. These workshops will be a permanent feature in our artist outreach programmes. 25

26 Service Delivery Objectives and Indicators Programme 3 : SUPPORT TO ARTISTS 1 Strategic Objective Identification and development of community arts and culture individuals and groups Performance indicator Annual Target Number of district projects granted funding Number of 2010 related projects granted funding Number of students studying arts related courses at tertiary level Number of post projects reports generated and submitted Exhibition opportunities created nationally and overseas Increased performance/ appearance opportunities created for artists Actual Performance against Target Target Actual Reason for Variance More 2010 projects were funded in order to enable artists and crafters to make economic gains from the 2010 soccer world cup and the National Arts Festival. Hence the funding of more projects in the year. Not achieved due to budget being exhausted for annual district funding, the 2010 soccer world cup cultural programme and the National Arts Festival (see above for reference). Escalation of fees at institutions of higher learning has resulted in fewer students getting bursaries than projected. The employment of an Arts Development Manager resulted in improved monitoring, evaluation and reporting. The submission of more project reports was the end-result. The 2010 World Cup tournament created a lot of opportunities for EC artists through the cultural programme held in and around PE, hence the overachievement. Reasons for major variances The increased numbers of the 2010 projects were funded in order to enable artists and crafters to make economic gains from the 2010 soccer world cup and the National Arts Festival. Hence the funding of more projects in the year. The 2010 related project funding was not achieved due to budget being exhausted for annual district funding and the 2010 soccer world cup cultural programme in Port Elizabeth. However, project funding for the National Arts Festival (NAF) in Grahamstown made up for this as the NAF projects funded were biased towards 2010 world cup fans and tourists, alike. This explains the over-achievement in district project funding. The 2010 World Cup tournament created a lot of opportunities for EC artists through the cultural programme held in and around PE, hence the overachievement 26

27 Programme 4: Enterprise Development and Partnerships Purpose The main aim of the programme is to implement an integrated arts development plan in order to maximize the economic benefits of the arts and culture. Strategic Objectives (a) Structured relationships to promote arts and culture developed (b) A pilot enterprise development centre established in one or more rural districts (c) A film office established Service Delivery Achievements and Challenges Achievements (a) Film Office - Documentaries produced A documentary on the North End forced removals that took place in East London in the early sixties was produced. It will be finalised in the new financial year. The Ukuthwala- Marriage by Abduction documentary was also developed during the year under review as part of the moral regeneration campaign championed by the Honourable MEC, Mrs Xoliswa Tom. This will also be finalised in the first quarter of the new financial year. (b) Craft Hub Marketing DVD A DVD profiling and marketing the Eastern Cape, Amathole and Chris Hani Craft Hubs was developed during the year under review. This is aimed at highlighting the value added by the hubs in promoting the Eastern Cape Province as the best place to invest in. The other aim is to embrace tourism agencies in the province as partners in promoting eco-tourism. (c) Film Office Website The Eastern Cape Film Office (ECFO) website continues to attract visits from provincial, national and international film producers who want to catch a glimpse of the Eastern Cape and make it an ideal film location. Challenges The absence of sustainable partnerships with other Eastern Cape tourism and film development agencies in the province continues to hamper the wholesale marketing of the province as a destination for film development and investment. The objective of establishing development centres in the Alfred Nzo and Ukhahlamba (Joe Gqabi) districts could not be realised due to unavailability of much needed funds. Planned Corrective Measures The entity will embark on a concerted drive to forge partnerships with other institutions in order to secure funds that will see the realisation of these enterprise development centres. 27

28 Service Delivery Objectives and Indicators Programme 4 : ENTERPRISE DEVELOPMENT AND PARTNERSHIPS Strategic Objective 1 Building cohesive, caring and sustainable communities Performance indicator Annual Target Structured relationships to promote arts and culture developed Actual Performance against Target Target Actual 7 3 Reason for Variance The partnerships negotiated with other stakeholders to promote arts and culture projects could not be completed as anticipated due to funding bottlenecks. A pilot enterprise development centre established in one or more rural districts 1 0 Target could not be achieved during the year under review due to budgetary constraints. Reasons for major variances A film office established 1 1 Budgetary limitations resulted in the non-achievement of the target. 28

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30 3. Annual Financial Statements 30 30

31 3.1 Report of the Audit Committee Report of the Audit Committee We are pleased to present our report for the financial year ended 31 March Audit Committee Members and Attendance The audit committee consists of the members listed hereunder and should meet four times per annum as per its approved terms of reference. During the current year five meetings were held. Name of Member Number of Meetings Attended 1 April 2010 to 31 August 2011 J Emslie 1 of 5 L Dart 1 of 5 1 September 2010 to 31 March 2011 L Smith (Chairperson) 4 of 5 S Moore 3 of 5 J Emslie 4 of 5 The committee commenced on the 1 September Audit Committee Responsibility We report that we have adopted appropriate formal terms of reference in our charter in line with the requirements of Section 38(1)(a) of the Public Finance Management Act, No. 1 of 1999 and Treasury Regulation 3.1. We further report that we conducted our affairs in compliance with this charter. The effectiveness of internal control The system of internal control applied by the entity over financial and risk management is effective, efficient and transparent. In line with the PFMA and the King III Report on Corporate Governance requirements, Internal Audit provides the Audit Committee and management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and the management report of the Auditor- General South Africa, it was noted that no matters were reported that indicate any material deficiencies in the system of internal control or any deviations therefrom. Accordingly, we can report that the system of internal control over financial reporting for the period under review was efficient and effective. 31

32 Evaluation of Financial Statements We have: Reviewed and discussed the annual financial statements which have been recommended to the Accounting Authority to be submitted to the Auditor General for audit purposes at 31 May Reviewed the Auditor-General South Africa s management report and management s response thereto; Reviewed changes in accounting policies and practices; Reviewed the entity s compliance with legal and regulatory provisions. Reviewed the performance information to be approved by the Accounting Authority. Reviewed significant adjustments resulting from the audit. Internal audit The Internal audit function was outsourced to a service provider effective from 1 September A risk assessment performed and an internal audit plan prepared. The internal auditors have met their plan for the year as adjusted as necessary with the approval of the audit committee. We are satisfied that the internal audit function is operating effectively. Due to insufficient time lapsing between the reports and the date of this report, the audit committee has as yet not been able to assess whether the risks identified by the risk assessment and internal audit reports have been adequately addressed. Auditor-General South Africa We concur with and accept the Auditor-General South Africa s report on the annual financial statements, and are of the opinion that the audited annual financial statements should be accepted read together with the report of the Auditor-General South Africa. Loren Smith Chairperson of the Audit Committee 31 July

33 3.2 Report of the Accounting Officer The attainment of an unqualified audit report by the Eastern Cape Provincial Arts and Culture Council during the year under review is cause for celebration. It came about because of the hard work and resolve by both council and staff to strive towards an improved result. The entity, will, during the current financial use its human and financial resources to work towards achieving a clean audit. During the 2010/11 financial year the organisation continued to deliver on its mandate. It continued to disburse increased funding for the projects of excellence that took part in annual national arts festival. It also granted funding to district individual and group projects, therefore enabling them to use their creative juices to produce of great quality in advancing the creative industries growth. The implementation of an integrated Pastel system linking the craft hubs and the finance office at Head Office during the year under review is another milestone achieved. It will play a significant part in the quest to improve systems and enhancement of service delivery. The signing of the procedural and relationship agreement with the National Education, Health and Allied Workers Union (NEHAWU) is a welcome development on the labour relations front. It will serve to promote cordial relations between labour and the employer. We are optimistic that it will be good for both employee motivation and performance. Budgetary constraints experienced by the entity during the year under review made it difficult to deliver on some of its targets. Critical posts of arts development officers and that of a human resources officer at head office could also not be filled; capacity and product development interventions for the arts and craft beneficiaries could not take place as well. This state of affairs impacted negatively on the ability of the entity to achieve some of its service delivery obligations. The entity is hopeful that the review of the ECPACC Act that is driven by the Department of Sport, Recreation, Arts and Culture will be finalised in the new 2011/12 financial year. This will enable the entity to deliver on its renewed mandate with vigour and energy. It is anticipated that the review of the funding model during the 2011/12 financial year will result in the entity disbursing meaningful funding to projects and bursary holders. The entity will during the course of the 2011/12 financial year undertake a review of its predetermined objectives with a view to aligning these to the strategic objectives as laid out in its strategic plan. This successful completion of this review is very critical, especially in the light of the fact that the Auditor-General will issue an opinion on performance information in the 2011/12 audit. On behalf of the Council I wish to say that let us all in partnership with our stakeholders and beneficiaries continue to build a vibrant and effective vehicle in order to make a difference to our expectant communities, we owe it to them all. 33

34 3.3 Report of the Auditor-General REPORT OF THE AUDITOR-GENERAL TO PROVINCIAL LEGISLATURE ON EASTERN CAPE PROVINCIAL ARTS AND CULTURE COUNCIL REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the accompanying financial statements of the Eastern Cape Provincial Arts and Culture Council, which comprise the statement of financial position as at 31 March 2011, and the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, a summary of significant accounting policies and other explanatory information, and the accounting authority s report as set out on pages 39 to 41. Accounting authority s responsibility for the financial statements 2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA), and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-General s responsibility 3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these financial statements based on my audit. 4. I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette of 15 December Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. 34

35 Opinion 7. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Eastern Cape Provincial Arts and Culture Council as at 31 March 2011 and its financial performance and cash flows for the year then ended, in accordance with SA Standards of GRAP and the requirements of the PFMA. Emphasis of matter 8. I draw attention to the matter below. My opinion is not modified in respect of this matter: Restatement of corresponding figures 9. As disclosed in note 19 to the financial statements, the corresponding figures for 2010 have been restated as a result of an error discovered during 2011 in the financial statements of the Eastern Cape Provincial Arts and Culture Council at, and for the year ended, 31 March REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 10. In accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette of 15 December 2010, I include below my findings on the annual performance report as set out on pages 15 to 28 and material non-compliance with laws and regulations applicable to the public entity. Predetermined objectives Included below are the findings raised during our audit of the report on predetermined objectives. Usefulness of information 11. The following criteria are relevant to the findings below: Relevance: A clear and logical link exists between the objectives, outcomes, outputs, indicators and performance targets Measurability: Indicators are verifiable, and targets are specific Audit findings: Planned and reported indicators are not verifiable 12. For the selected objectives valid performance management processes and systems that produce actual performance against the planned indicator do not exist for 44% of the indicators. Planned and reported targets are not specific 13. For the selected objectives 40% of the planned and reported targets were not specific in clearly identifying the nature and the required level of performance. Reliability of information 14. The following criterion is relevant to the finding below: Completeness: All actual results and events that should have been recorded have been included in the annual performance report. 35

36 Audit finding: The completeness of reported performance against indicators could not be confirmed as inadequate supporting source information was provided 15. I was unable to obtain sufficient appropriate audit evidence over the completeness of reported performance against targets as appropriate systems are not in place to record and report performance. The completeness of performance of the following targets reported in the annual performance report could not be determined even through alternative procedures: Manuscripts published in the Eastern Cape are launched regionally and nationally Supported artists becomes self sustainable entrepreneurs and performers Post project reports generated and submitted Compliance with laws and regulations Strategic planning and performance management 16. The accounting authority did not ensure that the public entity has and maintains an effective, efficient and transparent system of internal control regarding performance management, which described and represented how the entity s processes of performance planning, monitoring, measurement, review and reporting as conducted, organised and managed as required by section 51(1)(a)(i) of the PFMA. Annual financial statements, performance and annual reports 17. The accounting authority submitted financial statements for auditing that were not prepared in all material aspects in accordance with generally accepted accounting practice as required by section 55(1) ((a) and) (b) of the PFMA. The material misstatements identified by the AGSA with regards to current assets, liabilities, revenue, expenditure and disclosure items were subsequently corrected. Procurement and contract management 18. Awards were made to suppliers that did not score the highest points in the evaluation process as per the requirements of Section 2(1)(f) of Preferential Procurement Policy Framework Act. 19. Awards were made to suppliers who failed to provide written proof from the South African Revenue Service that their tax matters are in order as per the requirements of Preferential Procurement Regulations 16 and Treasury Regulation 16A9.1(d) 20. Awards were made to bidders who did not submit an SBD 4 declaring whether the bidder or any person connected with the bidder is employed by the state or if the bidder is a legal person, whether the bidder has a relationship with persons/ a person involved in the evaluation and/or adjudication of the bids as per the requirements of Practice Note 7 of 2009/10. Expenditure management 21. The accounting authority did not take effective and appropriate steps to prevent irregular expenditure, disclosed in note 8 and note 22 to the financial statements, as per the requirements of section 51(1)(b) of the PFMA. Revenue management 22. The accounting authority did not take effective and appropriate steps to collect all revenue due to the 36

37 entity as per requirements of section 51(1)(b)(i) of the PFMA. INTERNAL CONTROL 23. In accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the significant deficiencies that resulted in the opinion, the findings on the annual performance report and the findings on compliance with laws and regulations included in this report. Leadership 24. The provision for doubtful debts was not initially identified by management due to management not performing an assessment of the impairment of long outstanding debtors to determine whether they are recoverable as required by the accounting framework. 25. The entity has not established approved policies and procedures for all financial and non-financial operations of the entity. Various policies are in a draft format which has not yet been approved by the council. This leads to ineffective internal controls over the financial reporting process. The matter has been reported in prior years and to date action plans of management has not proven effective in addressing the matter. 26. Furthermore no policies or procedures have been established to address reporting over predetermined objectives, to ensure valid, accurate and complete reporting on performance against predetermined objectives. Financial and performance management 27. The processes and systems implemented by management over financial reporting did not address all of the requirements of the GRAP framework. As a result material misstatements relating to revenue, cost of sales, debtors and disclosure notes were identified and corrected as a result of the audit. 28. Irregular expenditure was incurred in the current year as management has not implemented appropriate controls over compliance with the requirements of Preferential Procurement Policy Framework Regulation 16, R725 of 10 August 2001, and Practice note 7 of 2009/10 issued by National Treasury. Governance 29. A risk assessment workshop was not performed prior to the start of the financial year. Risks identified have not been communicated to staff members at the hubs. The risks identified by management are not matched with appropriate internal control measures. East London 29 July 2011 SOUTH AFRICA Auditing to build public conference 37

38 38

39 3.4 Report of the Accounting Authority 1. Introduction The Councilors who constitute the accounting authority in terms of the Public Finance Management Act, 1999 (Act No.1 of1999), Treasury Regulations and other relevant laws of the Republic of South Africa present their report which forms part of the audited financial statements for the year ended 31 March The Eastern Cape Provincial Arts and Culture Council is established as a public entity in terms of the Eastern Cape Provincial Arts and Culture Council Act, 2000 (Act No.6 of 2000) (Eastern Cape) and is listed as a provincial public entity in Schedule 3C of the Public Finance Management Act, 1999 (Act No. 1 of 1999). 2. Councilors The members of the council during the year under review are as follows: Full council (1 April 2010 to 31 May 2010) Mr. Monde Ngonyama (Chairperson) Ms Peggy Calata Professor Dominic Thorburn Professor BB Mkonto Mr. Lucas Yakobi Dr James Fatuse Mr. Billy Dakada Ms B Ngule Mr. Robbie de Lange Mr. Richard Kortman Interim council (1 June 2010 to 31 March 2011) Mr. Monde Ngonyama (Chairperson) Ms Peggy Calata Dr. Sukude Matoti (Deputy-Chairperson) Mr. Vukile Pokwana Professor Dominic Thorburn Ms Zola Magida 3. Members of the Executive Committee 1 April 2010 to 31 May 2010 Mr. Monde Ngonyama Professor BB Mkonto Professor Dominic Thorburn Mr. TR Mehlala (CEO) Ms Peggy Calata Mr. GV Mona (Ex Officio) 39

40 4. Members of the Audit Committee 1 April 2010 to 31 July 2010 Mr. Justin Emslie (Chairperson) Ms Liesl Dart 1 August 2010 to 31 March 2011 Ms Loren Smith (Chairperson) Mr. Justin Emslie Mr. Shaun Moore 5. Principal Activities The principal activities of the Council are the promotion of arts and culture in the Eastern Cape Province of South Africa. It is entrusted with the responsibility of fostering the arts and promoting the culture of the Eastern Cape, to allow for the expression of the unique identity of the province and enable its artists to realise their potential through their expression of the arts to build an improved quality of life for themselves and their communities. 6. General review of the state of financial affairs The Eastern Cape Provincial Arts and Culture Council`s (ECPACC) business and operations and the results thereof are clearly defined in the attached financial statements. No material fact or circumstance has occurred between the accounting date and the date of this report. 7. Grant Funding The ECPACC has received grant funding to the value of R from the Department of Sport, Recreation, Arts and Culture (DSRAC) for the year under review. 8. Post balance sheet events The Council is not aware of any matter or circumstance arising since the end of the financial year. 9. Materiality and Significance Framework For purposes of materiality in terms of section 50 (1), 55 (2) and 66 (1) of the Public Finance Management Act (PFMA) and significance in terms of section 54 (2) of the PFMA, a Materiality and Significance Framework has been developed and submitted to the Council for approval. 40

41 11. CCMA Hearing During the year under review the former Finance Manager filed a case of Unfair Labour Practice with the Commission for Conciliation, Mediation and Arbitration (CCMA). This matter is resolved as the case was withdrawn by the former employee. 12. Auditors The Auditor-General South Africa will continue in office in accordance with the relevant legislation. 41

42 3.5 Statement of Responsibility by the Accounting Authority as at 31 March 2011 The annual financial statements are the responsibility of the Accounting Authority. Although the board of ECPACC is primarily responsible for the financial affairs of the council, they are supported by the council s external auditors. The external auditors are responsible for independently reviewing and reporting on the council s financial statements. The financial statements have been examined by the council s external auditors and their report is presented on pages 34 to 37. The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. The Accounting Authority has reviewed the Council s budgets and cash flow forecasts for the year ended 31 March On the basis of this review, and in the light of the current financial position, the Accounting Authority has every reason to believe that the Council will be a going concern in the year ahead and have continued to adopt the going concern basis in preparing the financial statements. The Accounting Authority sets standards to enable management to meet the above responsibilities by implementing systems of internal control and risk management that are designed to provide reasonable, but not absolute assurance against material misstatements and losses. The entity maintains internal financial controls to provide assurance regarding: (a) (b) The safeguarding of assets against unauthorised use or disposition, and The maintenance of proper accounting records and the reliability of financial information used within the entity or for publication. The controls contain self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified. Even an effective system of internal control, no matter how well designed, has inherent limitations, including the possibility of circumvention or the overriding of controls. An effective system of internal controls, therefore, aims to provide reasonable assurance with respect to the reliability of financial information and, in particular, financial statement presentation. Furthermore, because of changes in conditions, the effectiveness of internal financial control may vary over time. The Accounting Authority has reviewed the entity s systems of internal control and risk management for the period from 1 April 2010 to 31 March The Accounting Authority is of the opinion that the entity s system of internal control and risk management were effective for the period under review. In the opinion of the Accounting Authority, based on the information available to date, the annual financial statements fairly present the financial position of the Eastern Cape Provincial Arts & Culture Council at 31 March 2011 and the results of its operations and cash flow information for the year and the Code of Corporate Practices and Conduct has been adhered to. The financial statements set out on pages 43 to 78, which have been prepared on the going concern basis, were approved by the Accounting Authority in terms of section 51(1)(f) of the Public Finance Management Act 1999, (Act 1 of 1999) on 31 May 2011 and were signed on its behalf by: Chief Executive Officer RT Mehlala 29 July

43 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.6 Statement of Financial Performance (SPR) for the year ended 31 March 2011 Figures in Rand Note(s) REVENUE Revenue from exchange transactions , ,059 Revenue from non-exchange transactions 7 14,744,324 15,345,983 Other income 6,390 1,188 TOTAL REVENUE 15,175,231 15,516,230 EXPENDITURE Cost of sales ,989 99,504 Auditors remuneration - External 1,055, ,216 Employee benefits 3,793,562 2,749,527 Project expenses 4,431,338 8,488,458 Other operating expenses 5,220,630 3,349,367 TOTAL EXPENDITURE 14,905,989 15,347,072 SURPLUS FROM OPERATIONS 269, ,158 Finance income , ,432 Surplus for the year 452, ,590 43

44 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.7 Statement of Financial Position (SPO) as at 31 March 2011 Figures in Rand Note(s) ASSETS Non-current assets Property, plant and equipment 799, ,941 Intangible assets 66,101 65, , ,849 Current assets Inventories 4 204, ,529 Trade and other receivables - Exchange transactions 5 227, ,682 Trade and other receivables - Non-exchange transactions 5 31,448 25,800 Cash and cash equivalents 6 3,425,743 4,073,493 3,888,494 4,680,504 TOTAL ASSETS 4,753,957 5,649,353 LIABILITIES Current liabilities Unspent conditional grant 7 394,182 2,913,506 Administered funds 8 1,039, ,433 Trade and other payables - Exchange transactions 9 1,033, ,578 TOTAL LIABILITIES 2,467,361 3,815,517 NET ASSETS Capital and reserves Accumulated surplus 2,286,596 1,833,836 TOTAL NET ASSETS AND LIABILITIES 4,753,957 5,649,353 44

45 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.8 Statement of Changes in Net Assets for the year ended 31 March 2011 Statement of Changes in Net Assets for the year ended 31 March 2011 Accumulated Total Net Figures in Rand Note(s) surplus Assets Balance at 1 April ,479,246 1,479,246 Surplus for the year as previously reported 595, ,121 Balance at 31 March ,074,367 2,074,367 Correction of prior period errors 18 (240,531) (240,531) Balance at 31 March 2010 as restated 1,833,836 1,833,836 Surplus for the year 452, ,760 Balance at 31 March ,286,596 2,286,596 45

46 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.9 Cash Flow Statement for the year ended 31 March 2011 Figures in Rand Note(s) Cash flows from operating activities Cash receipts from customers and grants received 12,741,887 17,087,021 Cash paid to suppliers and employees (13,446,930) (15,602,328) Net cash (outflow)/inflow from operating activities 15 (705,043) 1,484,693 Cash flows from investing activities Purchase of property, plant and equipment 2 (69,200) (133,830) Purchase of intangible assets 3 (57,025) (63,704) Interest earned , ,432 Net cash inflow/(outflow) from investing activities 57,293 (12,102) Net (decrease)/increase in Cash and Cash Equivalents (647,750) 1,472,591 Cash and Cash Equivalents at beginning of the period 4,073,493 2,600,902 Cash and Cash Equivalents at end of period 6 3,425,743 4,073,

47 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March Basis of Preparation The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. Presentation currency The financial statements are presented in South African Rand, which is the functional currency of the entity. Unless stated otherwise, all figures have been rounded off to the nearest Rand. Going concern assumption These Annual Financial Statements have been prepared on the assumption that the entity will continue to operate as a going concern for at least the next 12 months. Comparative information When the presentation or classification of items in the Annual Financial Statements is amended, prior period comparative amounts are restated. The nature and reason for the reclassification is disclosed. Where accounting errors have been identified in the current year, the correction is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly. Where there has been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly Significant judgements In preparing the Annual Financial Statements, management is required to make estimates and assumptions that affect the amounts represented in the Annual Financial Statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the Annual Financial Statements. Significant judgements include: Loans and Receivables The entity assesses its loans and receivables for impairment at each reporting date. In determining whether an impairment loss should be recorded in the Statement of Financial Performance, the entity makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. The impairment for loans and receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period Fair value estimation The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the entity for similar financial instruments. 47

48 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Impairment testing The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values. These calculations require the use of estimates and assumptions. The entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets Provisions Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in the notes to the financial statements. Provisions are measured at management s best estimate of the expenditure required to settle the obligation at the reporting date, and are discounted to present value where the effect is material Useful lives and residual values The entity re-assess the useful lives and residual values of property, plant and equipment on an annual basis. In re assessing the useful lives and residual values of property, plant and equipment management considers the condition and use of the individual assets, to determine the remaining period over which the asset can and will be used Statements and interpretations not yet effective The following standards, amendments to standards and interpretations, with their estimated effect on the Financial Statements, have been issued but are not yet effective as at 31 March 2011: GRAP 18 - Segment Reporting ASB Issue date: March 2005 Effective date: To be determined by the Minister New standard of GRAP: Establishes principles for reporting financial information by segments. The impact of implementing this standard is expected to be immaterial in the context of this entity s operations GRAP 25 - Employee Benefits ASB Issue date: November 2009 Effective date: To be determined by the Minister New standard of GRAP dealing with the requirements around accounting and disclosure of employee benefits including short term, long term and post retirement employee benefits. The impact of implementing this standard is expected to be immaterial in the context of this entity s operations. 48

49 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) GRAP Financial Instruments ASB Issue date: October 2009 Effective date: To be determined by the Minister New standard of GRAP dealing with the recognition, measurement, presentation and disclosure of financial instruments GRAP 105 Transfer of Functions Between Entities Under Common Control ASB Issue date: November 2010 Effective date: To be determined by the Minister New standard of GRAP that will replace IFRS 3 and that deals specifically with the transfer of functions between entities under common control (i.e. related entities). The standard will prescribe the standard practices to be followed where one entity receives the function(s) and related assets and liabilities of another entity. The standard takes cognizance that the transfer of functions often occur without any consideration for the assets and liabilities and prescribes the recognition and measurement thereof GRAP Transfer of Functions Between Entities Not Under Common Control ASB Issue date: November 2010 Effective date: To be determined by the Minister New standard of GRAP that will replace IFRS 3 and that deals specifically with the transfer of functions between entities that are not under common control (i.e. unrelated entities). The standard will prescribe the standard practices to be followed where one entity receives the function(s) and related assets and liabilities of another entity. The standard takes cognizance that the transfer of functions often occur without any consideration for the assets and liabilities and prescribes the recognition and measurement thereof GRAP Mergers ASB Issue date: November 2010 Effective date: To be determined by the Minister New standard of GRAP that will replace IFRS 3 and that deals specifically with the combination of entities within the public sector. The standard will prescribe the standard practices to be followed where entities combine through acquisition of one entity by another Revenue Recognition Revenue comprises the cost of the consideration received or receivable for the sale of goods in the ordinary course of the council s activities. Revenue is measured at the fair value of the consideration received or receivable net of estimated returns, rebates and discounts. 49

50 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Revenue is recognised as follows: Revenue from Exchange Transactions Revenue from the sale of goods is recognised when the risk is passed to the consumer. Interest is recognised on a time proportion basis. All other revenue is recognised as it accrues Revenue from non-exchange transactions Revenue received from conditional grants are recognised as revenue to the extent that the entity has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met a liability is recognised. Revenue from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated procedures, including those set out in the Public Finance Management Act (Act No.1 of 1999) and is recognised when the recovery thereof from the responsible councilors or officials is virtually certain Property, plant and equipment Recognition The cost of an item of property, plant and equipment is recognised as an asset when: (a) (b) it is probable that future economic benefits associated with the item will flow to the council; and the cost of the item can be measured reliably Initial recognition The council adopted the cost model for all classes of property, plant and equipment. Property, Plant and Equipment are initially recorded at cost Subsequent measurement Property, plant and equipment, is stated at cost, less accumulated depreciation and any impairment losses. Any subsequent expenditure to any asset that increases the value of the asset is seen as an improvement and will be capitalised during the year in which such expenditure is incurred. Replacement costs or repairs that does not increase the value of any asset, will be expensed in the year such expenditure is incurred Depreciation When components of an item of property, plant and equipment have different useful lives, they are accounted for as 50

51 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) separate items (major components) of property, plant and equipment and are depreciated according to their different useful lives. The depreciation charge for each year is recognised in surplus and deficit unless it is included in the carrying amount of another asset. Assets held under finance leases are depreciated over the lower of the term of the lease period or the life expectancy of the asset. Depreciation is calculated on cost less residual value, using the straight line method, over the estimated useful lives of the assets. The annual depreciation rates are based on the following estimated useful lives: Computer equipment 33% Motor Vehicles 20% Fixtures and fittings 10% Office Equipment 20% Plant and equipment 10% Telephone equipment 50% The residual value and the useful life of each asset are reviewed annually Impairment The council assesses at each statement of financial position date whether there is any indication that an asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cashgenerating unit to which the asset belongs is determined. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in surplus or deficit. Any impairment loss of a revalued asset is treated as a revaluation decrease. An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than the carrying amount of the units. A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase Derecognition The carrying amount of an item of property, plant and equipment shall be derecognised: (a) (b) on disposal, or when no future economic benefits or service potential are expected from its use or disposal. 51

52 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Gains or losses The gains and losses arising from the derecognition of property, plant and equipment (difference between carrying amount less any revaluation surpluses and net disposal proceeds) are included in surplus or deficit Intangible assets Definition An intangible asset is an identifiable non-monetary asset without physical substance Initial recognition Intangible assets that are acquired by the council are stated at cost less accumulated amortisation and impairment losses Subsequent recognition Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred Amortisation Amortisation of intangible assets is recognised in the statement of financial performance on a straight line basis over the assets estimated useful lives as follows: Computer software 50% De-recognition The carrying amount of an item of intangible asset shall be derecognised: (a) (b) on disposal, or when no future economic benefits or service potential are expected from its use or disposal Gains or losses The gains and losses arising from the derecognition of intangible asset (difference between carrying amount less any revaluation surpluses and net disposal proceeds) are included in surplus or deficit Leases Leases of property, plant and equipment where the Council assumes, substantially, all the benefit and risks of ownership are classified as finance leases. Finance leases are capitalized at the total value of the underlying lease payments and 52

53 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) lease payments are allocated to the liability. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset / liability. This asset / liability is not discounted. Contingent rentals are recognised as expenses in the period in which they are incurred and are not included in the straight-line lease expense Prepayments Insurance, subscription and service contract payments covering periods exceeding one month are allocated to the period of the contract Inventory Inventory, which consists of arts and crafts designed from the use of ceramic, glass, beads, grass, pottery, wood and cloth, are valued at the lower of cost and net realisable value. Cost is determined based on the purchase price Financial instruments The council classifies financial assets and financial liabilities into the following categories: Financial assets: Loans and receivables Financial liabilities: at amortised cost Initial recognition and measurement Financial instruments are recognised initially when the entity becomes a party to the contractual provisions of the instruments. The entity classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial instruments are measured initially at fair value. For financial instruments which are not at fair value through surplus or deficit, transaction costs are included in the initial measurement of the instrument. Transaction costs on financial instruments at fair value through surplus or deficit are recognised in profit or loss Subsequent measurement Financial instruments at fair value through surplus or deficit are subsequently measured at fair value, with gains and losses arising from changes in fair value being included in surplus or deficit for the period. Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less 53

54 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) accumulated impairment losses Impairment of financial assets At each end of the reporting period the entity assesses all financial assets, other than those at fair value through surplus or deficit, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired. Impairment losses are recognised in surplus or deficit. Impairment losses are reversed when an increase in the financial asset s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised. Reversals of impairment losses are recognised in surplus or deficit except for equity investments classified as available for sale Gains and losses A gain or loss arising from a change in a financial asset or financial liability is recognised as follows: (a) (b) A gain or loss on a financial asset or financial liability classified as at fair value through surplus or deficit is recognised in surplus or deficit, and For financial assets and financial liabilities carried at amortised cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, and through the amortisation process Derecognition Financial assets A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where: (a) (b) (c) the rights to receive cash flows from the asset have expired; the entity retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a pass-through arrangement; or the entity has transferred its rights to receive cash flows from the asset and either- (i) (ii) has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 54

55 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Where the entity has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the entity s continuing involvement in the asset Financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in surplus or deficit Trade and other receivables Accounts receivable are classified as Loans and Receivables and are initially recognized at fair value. Subsequent measurement is at amortised value if material. An estimate is made for doubtful receivables based on a review of all outstanding amounts at year end. Bad debts are written off during the year in which they are identified. Amounts that are receivable within 12 months from the reporting date are classified as current Trade and other payables Trade and other payables are classified as Liabilities at amortised cost and are initially recognized at the fair value of the present obligation of a past event. Subsequent measurement is at amortised value if material Administered fund liability Administered funds comprise of funds received/ held on behalf of third parties where ECPACC make payments on behalf of these third parties based on instructions from them. The unspent funds are classified as Financial liabilities at amortised cost. Subsequent measurement is at amortised value if material Cash and cash equivalent Cash and cash equivalents comprise cash on hand and demand deposits and any short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value Effective interest rate The entity uses the prime interest rate to discount future cash flows Provision and contingencies Provisions are recognized when: (a) (b) the council has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and 55

56 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) (c) a reliable estimate can be made of the obligation. The amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Where some or all of the expenditure require settling a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed the amount of the provision. Provisions are not recognised for future operating losses. If an entity has a contract that is onerous, the present obligation under the contract shall be recognised and measured as a provision. A constructive obligation to restructure arises only when an entity has a detailed formal plan for the restructuring, identifying at least:: (a) (b) (c) (d) (e) The business or part of a business concerned; The principal locations affected; The location, function, and appropriate number of employees who will be compensated for terminating their services; The expenditures that will be undertaken; and When the plan will be implemented Government grants Government grants are recognised when there is reasonable assurance that: (a) (b) The council will comply with the conditions attaching to them; and The grants will be received. Government grants are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate. A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs is recognised as income of the period in which it becomes receivable. Government grants related to assets, including non-monetary grants at fair value, are presented in the statement of financial position by setting up the grant as Unspent conditional grant or by deducting the grant in arriving at the carrying amount of the asset. Grants related to income are presented as a credit in the statement of financial performance (separately). Repayment of a grant related to income is applied first against any un-amortised deferred credit set up in respect of the grant. To the extent that the repayment exceeds any such deferred credit, or where no deferred credit exists, the repayment is recognised immediately as an expense. 56

57 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Repayment of a grant related to an asset is recorded by increasing the carrying amount of the asset or reducing the Unspent conditional grant balance by the amount repayable. The cumulative additional depreciation that would have been recognised to date as an expense in the absence of the grant is recognised immediately as an expense Accruals Date of receipt of goods or services is recognized as date of accrual. All accruals are recognized at financial year-end Budget process The budget is prepared annually in accordance with the provisions of the Public Finance Management Act 1999 (No.1 of 1999), directives issued by the executive authority and best practice budgeting practice. Budget virements may only be performed within the levels specified by approved delegation of authority. Unbudgeted expenditure is subject to Council approval which will only be granted in extraordinary circumstances Unspent Conditional grant Initial recognition Unutilised conditional grants are reflected on the Statement of Financial Position as Unspent Conditional grant. They represent unspent government grants. The following conditions are set for the creation and utilisation of these payables: (a) (b) (c) (d) (e) (f) The grant received are initially recognised as cost as Unspent conditional grant. Whenever an item of property, plant and equipment is funded from a Grant, an amount equal to the purchase price is transferred from the Unspent conditional grant account to the operating account on the Statement of Financial Performance as revenue. Whenever operational expenditure is funded from a grant an amount equal to the expenditure is transferred from the Unspent conditional grant account grant to the operating account on the Statement of Financial Performance as revenue to offset the expenditure which was expensed through the operating account. The cash which backs the unspent portion is invested until utilised. Interest earned on the investment is treated in accordance with grant conditions. If the grant conditions indicate that interest is payable to donors then interest earned on unutilised conditional grants is allocated to the funds and is not recognised in the Statement of Financial Performance. The unspent grant is classified as Financial liabilities at amortised cost Subsequent measurement Unspent conditional grant are subsequently measured at amortised cost if material Derecognition Unspent conditional grant are derecognised when the balance was expended per the conditions as set for a grant. 57

58 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.10 Accounting Policies as at 31 March 2011 (continued) Fruitless, wasteful and irregular expenditure Fruitless and wasteful expenditure Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the Statement of Financial Performance and detailed further in the notes to the financial statements and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance Irregular expenditure Irregular expenditure is expenditure that is contrary to treasury regulation 16A. Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance and detailed further in the notes to the financial statement, and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance Related party Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subject to common control. 58

59 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Property, plant and equipment Plant and equipment Opening net carrying amount at 1 April , ,135 Gross carrying amount 407, ,709 Accumulated depreciation (72,318) (31,574) Additions - - Disposals - - Transfer to grants expenditure - - Depreciation charge (40,771) (40,744) Closing net carrying amount at 31 March , ,391 Gross carrying amount 407, ,709 Accumulated depreciation (113,089) (72,318) Computer Equipment Opening net carrying amount at 1 April , ,461 Gross carrying amount 251, ,469 Accumulated depreciation (158,292) (107,008) Additions 32,125 31,059 Disposals - - Transfer to grants expenditure - - Depreciation charge (50,168) (51,284) Closing net carrying amount at 31 March ,193 93,236 Gross carrying amount 283, ,528 Accumulated depreciation (208,460) (158,292) Office Equipment Opening net carrying amount at 1 April , ,107 Gross carrying amount 240, ,372 Accumulated depreciation (109,827) (69,265) Additions 19,880 2,445 Disposals - - Transfer to grant expenditure - - Depreciation charge (36,446) (40,562) Closing net carrying amount at 31 March , ,990 Gross carrying amount 260, ,817 Accumulated depreciation (146,273) (109,827) 59

60 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Office furniture and fittings Opening net carrying amount at 1 April , ,181 Gross carrying amount 466, ,806 Accumulated depreciation (122,808) (88,625) Additions 17, ,326 Disposals - - Depreciation charge (45,394) (34,183) Closing net carrying amount at 31 March , ,324 Gross carrying amount 483, ,132 Accumulated depreciation (168,202) (122,808) Total Property, plant and equipment Opening net carrying amount at 1 April , ,884 Gross carrying amount 1,366,186 1,232,356 Accumulated depreciation (463,245) (296,472) Additions 69, ,830 Disposals - - Depreciation charge (172,779) (166,773) Closing net carrying amount at 31 March , ,941 Gross carrying amount 1,435,386 1,366,186 Accumulated depreciation (636,024) (463,245) Pledged as security None of the property, plant and equipment are pledged as security. Change in estimate During the year it was noted that there were fully depreciated assets still in use. The useful lives of these assets were reviewed which resulted in a change in the initial estimate of the useful lives of these assets. The expected useful lives of these assets increased. Furniture and fittings with an initial estimated useful life of 10 years are now considered to have a useful life of 15 years. Office equipment with an initial estimated useful life of 5 years are now considered to have a useful life of 7 and some of 8 years. Computer equipment with an initial estimated useful life of 3 years are now considered to have a useful life of 6, 7 and some of 9 years. 60

61 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand The effect of these changes on the depreciation expense in the statement of financial performance in the current year are as follows: Increase in depreciation expense for the period 12, Intangible assets Computer software Opening net carrying amount at 1 April ,908 51,919 Gross carrying amount 152,128 88,424 Accumulated amortisation (86,220) (36,505) Additions 57,025 63,704 Disposals - Amortisation charge (56,832) (49,715) Closing net carrying amount at 31 March ,101 65,908 Gross carrying amount 209, ,128 Accumulated amortisation (143,052) (86,220) Pledged as security None of the intangible assets are pledged as security. 4. Inventory Raw materials - 56,006 Finished goods 204, ,523 Total 204, ,529 Inventory comprises of stock purchased in prior years by the Mthatha Craft Hub, Amathole Craft Hub and Chris Hani Craft Hub that has now been inherited by the Council. 5. Trade and other receivables Current Trade receivables - Exchange transactions 189, ,618 Sundry receivables - Exchange transactions 133, ,142 61

62 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Revenue receivable - Exchange transactions 9,627 - Accrued rent receivable - Exchange transactions 19,952 10,374 Prepaid expense - Exchange transactions 11,640 11,548 Deposits - Non-exchange transactions 31,448 25,800 Less: Impairment recognised (137,488) - Total 258, ,482 Trade and other receivables pledged as security Not any of the terms and or conditions attached to the financial assets were re-negotiated during the period under review. Credit quality of trade and other receivables The entity's management considers that all the above trade and other receivables, with the exception of departmental debts, to be of a good credit quality. A significant portion of Trade Receivables comprises of departmental debts which are long outstanding and are therefore impaired. Trade receivables Departmental debts 168, ,908 Other debts 21,775 32, , ,618 Trade receivables past due but not impaired The ageing of amounts are as follows: 1 month past due months or more past due 52, ,618 Trade receivables impaired As of 31 March 2011, trade receivables of R were impaired and provided for. The amount of the provision was R as of 31 March Reconciliation of provision for impairment of trade receivables Opening balance - - Provision for impairment 137,488 - Closing balance 137,488-62

63 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand Cash and cash equivalents Cash and cash equivalents consist of: Cash at bank 3,425,591 4,073,435 Cash on hand Total 3,425,743 4,073,493 Security No cash and cash equivalents (or portions thereof) was pledged as security for any financial liability. Credit quality of cash at bank (excluding cash on hand) Management considers that all the above cash and cash equivalent categories are of good quality. The maximum exposure to credit risk at the reporting date is the fair value of each class of cash and cash equivalent mentioned above. 7. Unspent conditional grant Opening balance 2,913,506 1,403,889 Add: Grants received during the year 12,225,000 16,855,600 Capital 126, ,534 Operational grants as previously reported 12,098,775 16,658,066 15,138,506 18,259,489 Less: Conditions met transferred to SFP 14,744,324 15,345,983 Cost of asset additions Operating expenditure plus inventory purchases 126, ,534 14,618,099 15,148,449 Closing balance 394,182 2,913,506 63

64 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Administered funds Reconciliation of administered funds Received Payments Opening during the during the Closing Balance year year Balance National Lotteries Board 45,106 (24,200) 20,906 Partnership Programme 68,723 68,723 Department of Arts & Culture 114,486 2,760,450 (1,968,624) 906,312 National Arts Council - 750,000 (750,000) - Subtotal 228,315 3,510,450 (2,742,824) 995,941 Poverty Alleviation Funds 65,118 (21,640) 43,478 Total 293,433 3,510,450 (2,764,464) 1,039,419 Reconciliation of administered funds Received Payments Opening during the during the Closing Balance year year Balance National Lotteries Board 45, ,106 Partnership Programme 68, ,723 Department of Arts & Culture 303,896 - (189,410) 114,486 Subtotal 417,725 - (189,410) 228,315 Poverty Alleviation Funds - 1,500,000 (1,434,882) 65,118 Total 417,725 1,500,000 (1,624,292) 293,433 Department of Arts & Culture (DAC) Administered funds to the amount of R was received from DAC for the sole purpose of disbursing expenses relating to the Wild Coast SDI Festival held annually in Port St Johns. This festival is a Department of Sports, Recreation, Arts & Culture (DSRAC) initiative and therefore the procurement and the assessment of performers are conducted by DSRAC. During the year of review, ECPACC was required to make payments to the amount of R to service providers based on the procurement, assessment and instruction of DSRAC. Irregular expenditure to the amount of R was incurred due to non-adherence to the Preferencial Procurement Policy Framework Act, Act 5 of

65 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to Notes the Financial to the Statements Financial for the Statement year ended 31 March for the 2011 year ended 31 March 2011 Figures in Rand Poverty Alleviation Funds Represents funds available for poverty relief projects which are administered on behalf of the Department of Sports, Recreation, Arts and Culture. National Arts Council (NAC) Administered funds to the amount of R was received from NAC for the sole purpose of disbursing expenses relating to arts & craft exhibitions and performances held during the FIFA Soccer World Cup 2010 in Port Elizabeth. The total allocation of R was utilised for the purpose intended during the FIFA Soccer World Cup Irregular expenditure to the amount of R was incurred due to non-adherence to the Preferencial Procurement Policy Framework Act, Act 5 of Other funds Administered funds comprise of funds received/held on behalf of third parties where ECPACC make payments on behalf of these third parties based on instructions from them. 9. Trade and other payables Accruals - Exchange transactions 835, ,173 Sundry creditor - Exchange transactions 13,760 14,046 Accrued rent payable - Exchange transactions 16,757 20,764 Accrued employee benefit - Exchange transactions 167,883 16,595 Total 1,033, ,578 The company did not default on any of the accounts payable. 10. Revenue Revenue from exchange transactions 424, ,059 65

66 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Cost of sales Cost of goods sold 404,989 99, Operating surplus Operating surplus for the period is stated after accounting for the following: Rental in respect of operating lease 405, ,632 Depreciation on property, plant and equipment 229, ,488 Employee benefits 3,793,562 2,749,527 Project expenses 4,431,338 8,488,458 Repairs and maintenance 34,219 38,147 Travel and subsistence 180, ,446 Courier and delivery charges 8,339 4, Finance income Interest on - Cash and bank deposits 183, , Auditors' remuneration Statutory audit 1,055, , Cash (used in) generated from operation Surplus for the year 452, ,590 Adjustments for: Depreciation and amortisation 229, ,488 Interest received (183,518) (185,432) Movements in administered funds 745,986 (124,289) 34 66

67 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand Changes in working capital Inventories 58,280 (22,419) Trade and other receivables - Exchange transactions 91,628 (166,190) Trade and other receivables - Non-exchange transactions (5,648) - Trade and other payables 425,182 (145,575) Unspent conditional grant (2,519,324) 1,557,520 Total (705,043) 1,484, Operating lease arrangements Lessee Office premises At the reporting date the entity had outstanding commitments under non-cancellable operating leases, which falls due as follows: Up to 1 year 389, ,034 1 to 5 years 502, ,161 More than 5 years , ,195 Office equipment At the reporting date the entity had outstanding commitments under non-cancellable operating leases, which falls due as follows: Up to 1 year 32,055 32,055 1 to 5 years 56,096 85,479 More than 5 years , ,534 Total 979, ,729 No contingent rent is payable. 67

68 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand Councilor's emoluments The following emoluments were paid to the councilors for services rendered during the year: Non-executive Surname Initials Travel cost Sitting fee Total Calata P 28,378 12,080 40,458 Dakada B 8,169-8,169 De Lange R Fatuse JV 12,873-12,873 Kortman R 15,379-15,379 Mkonto B Ngonyama M 72,421 27,440 99,861 Ngule B 12,789-12,789 Thorburn D 15,163 11,470 26,633 Yakobi L 23,989-23,989 Matoti S 17,496 14,400 31,896 Pokwana V - 16,190 16,190 Magida Z 24,031 11,980 36,011 TOTAL 230,688 93, ,248 Non-executive Surname Initials Travel cost National Arts Festival All Councilor capacitation All Total Calata P 75,310 5,000-80,310 Dakada B 19,570 5,000-24,570 De Lange R 735 5,000-5,735 Fatuse JV 37,639 5,000-42,639 Kortman R 35,021 5,000-40,021 Mkonto B 13,344 5,000-18,344 Ngonyama M 38,885 5,000 15,000 58,885 Ngule B 21,336 5,000-26,336 Thorburn D 10,695 5,000 12,000 27,695 Yakobi L 29,008 5,000-34,008 TOTAL 281,543 50,000 27, ,543 68

69 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand Prior period adjustments Accumulated surplus as previously reported 2,074,367 Adjustment for prior period errors: Debtors incorrectly raised (8,615) Accruals not raised for 2010 expenditure (4,552) Incorrect treatment of consignment stock (227,364) Total of adjustments for prior period error (240,531) Restated accumulated surplus 1,833,836 Nature of the prior period error: Debtors incorrectly raised Debtors to the amount of R8 615 were erroneously raised subsequent to the full and final settlement of their account. Accrual treatment Adjustment of R relates to 2010 expenditure that were not raised as accruals and incorrectly treated as 2011 expense. Consignment stock Consignment stock sold and payment to artist for items sold were incorrectly included in the ECPACC sales and purchases account. Comparative financial information adjustment Previously Reported Surplus as previously reported 2,074,367 Adjustment for: Revenue Revenue from exchange transactions (235,979) 69

70 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Figures in Rand Cost of sales Purchases 179,461 Other income Revenue from non-exchange transactions (179,461) Operating costs Repairs & maintenance (500) Hire costs (2,052) ECPACC Projects (2,000) Prior year surplus for period 1,833,836 The implication of the correction of the above mentioned errors on the Statement of Financial Position was the following: Accumulated surplus decrease (240,531) Trade and other payables increase 52,455 Trade and other receivables decrease 8,615 Unspent conditional grant decrease 179, Senior management's emoluments Chief Executive Officer - TR Mehlala Basic salary 556,776 13th cheque 47,222 Housing allowance 8,700 Medical aid allowance 12,168 Pension allowance 72,381 TOTAL 697,247 Finance Manager - AF Raj Basic salary 405,195 13th cheque 31,502 Housing allowance 8,700 Medical aid allowance 7,500 Pension allowance 52,675 TOTAL 505,572 70

71 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to Notes the Financial to the Statements Financial for the Statement year ended 31 March for the 2011 year ended 31 March 2011 Figures in Rand Reconciliation of budget surplus/deficit with the surplus/deficit in the statement of financial performance Net surplus per the statement of financial performance 452,760 Adjusted for: Unspent conditional grant release (2,519,324) Impairments recognised / reversed (137,488) Net budget deficit (2,204,052) 21. Related party Related party transaction Nature of relationship A related party transaction occurred between ECPACC and Mr. M Ngonyama (Chairperson of the Council) and Ms P Calata (Council member) during the 2010/11 financial year Type of transaction Mr. M Ngonyama (Chariperson of the Council) During the reporting period, ECPACC provided total funding of R to projects that are affiliated with the council member. Details of the related party transactions are: Project Iphulo Dance Festival Ithemba Alibulali - A Dacade of Hoping Performing Arts & theatre Association Interest in project Board member Close colleague Member Amount 50,000 20,000 25,000 Ms P Calata (Council member) During the reporting period, total funding of R was awarded to Ms P Calata for the publishing of the "JA Calata Biography". The above council members recused themselves from the approval process when the applications for funding were considered for projects

72 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to Notes the Financial to the Statements Financial for the Statement year ended 31 March for the 2011 year ended 31 March 2011 Figures in Rand Eastern Cape Development Corporation (ECDC) Funds disbursed to ECDC for the rent of premises occuplied by the EC Arts & Craft Hub and Amathole Craft Hub. EC Arts & Craft Hub 144,751 97,957 Amathole Craft Hub 68,568 74, Compensation of councilors and key management personnel The compensation of Councilors and Key Management Personnel are set out in Notes 17 and 20 to the Annual Financial Statements Related party relationship Surname Initials Calata P Councilors Dakada B Councilors De Lange R Councilors Fatuse JV Councilors Kortman R Councilors Mkonto B Councilors Ngonyama M Councilors Ngule B Councilors Thorburn D Councilors Yakobi L Councilors Matoti S Councilors Pokwana V Councilors Magida Z Councilors Mehlala TR Chief Executive Officer Raj AF Finance Manager 72

73 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements Notes 3.11 to Notes the Financial to the Statements Financial for the year Statement ended 31 March for 2011 the year ended 31 March 2011 Figures in Rand Condoned by The council of ECPACC have since condoned the above non-compliance with ECPACC supply chain management policy on 20 August Amount Irregular expenditure to the amount of R was condoned at a full council meeting. 23. Fraud investigation During the 2009/10 year ECPACC council approved funding of film project called Adjudicator 3. The funding of the project to the amount of R was awarded following the council s assessment of the project plan submitted by the applicant. Thereafter the applicant was required to sign a Conditions of Acceptance Form which commits the applicant to employ the funds awarded to execute the tasks presented on the project plan. The allocated amount of R was deposited on 3 June On 20 June 2010 a group of disgruntled cast members of the Adjudicator 3 film project reported that the funds awarded have been fraudulently used. Following internal investigation it was confirmed that the funds awarded were not used for the purpose intended as the applicant utilised the funds to purchase assets for private use. Criminal case with the Commercial Crimes Unit of the South African Police Services has been initiated to recover the funds awarded from the representatives of Adjudicator 3 Film Project. The investigating officer of the Commercial Investigations Branch has indicated that all parties relevant to the case have been interviewed and the docket has been handed over to the Director for Prosecutions Soccer World Cup Tickets During the reporting period, no tickets for the 2010 soccer world cup were purchased by the council for the benefit of its employees or any of it's associates. 73

74 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements During the year the entities detailed below were under the control of the Councilors and Key Management Personnel: Surname Initials Designation Interest in Close Corporation Directorship in Company Directorship in Company Calata P Councilor None The Swallows Foundation (SA) (Sec 21) The Swallows Foundation (SA) (Sec 21) Dakada B Councilor None Siyaya Cultural Organisation (Sec 21) Siyaya Cultural Organisation (Sec 21) De Lange R Councilor None Tourism Buffalo City (Sec 21) Tourism Buffalo City (Sec 21) Fatuse JV Councilor Qumisizwe Coffin Makers cc None None Amampemvu Gardening Services cc None None WM Mandela Community Service Centre cc None None M Ngcuka Community Intensive Health Centre None None Kortman R Councilor Victory Ticket 724 cc None None Endinako s Technologies cc None None Mkonto B Councilor APM Publishers cc EC Philharmonic Society (Sec 21) EC Philharmonic Society (Sec 21) Ngonyama M Councilor None PE Opera House (Sec 21) PE Opera House (Sec 21) Masombe Creative Arts cc None None Lindani Creative Impact cc None None Performing Arts Theatre Association EC cc None None Ngule B Councilor Ilitha Lethu Community Development Centre cc None None Thorburn D Councilor None None None Yakobi L Councilor None None None Matoti S Councilor None None None Pokwana V Councilor None Pokwana Publishing Magida Z Councilor None None None Mehlala TR Chief Executive Officer None None None Jezi M Finance Manager None None None Raj AF Finance Manager None None None 74

75 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements Notes 3.11 to Notes the Financial to the Statements Financial for the year Statement ended 31 March for 2011 the year ended 31 March 2011 Figures in Rand Irregular expenditure Opening balance 81,500 90,110 Add: Irregular Expenditure current year 567,142 81,500 Less: Amounts condoned (81,500) (90,110) Less: Amounts recoverable (not condoned) - - Less: Amounts not recoverable (not condoned) - - Irregular Expenditure awaiting condonation 567,142 81,500 Analysis of expenditure awaiting condonation per age classification: Current year 567,142 81,500 Prior years - - Total 567,142 81,500 Details of Irregular Expenditure - Current year Incident Irregular expenditure was incurred due to non-adherence to the Preferencial Procurement Policy Framework Act, Act 5 of 2000, which requires the use of the points systems and evaluation of documents such as Tax Clearance Certificate and Declaration of interest form prior to awarding contracts to service providers. Disciplinary steps Irregular expenditure incurred and the subsequent recovery of the funds disbursed is to be addressed by the accounting authority subsequent to year end. Amount An amount of R was paid to service providers where the prescripts of the Preferencial Procurement Policy Framework Act, Act 5 of 2000 were not adhered to. Details of Irregular Expenditure condoned Incident Mr B Dakada performed an assessment of a project called Siyaya Cultural Organisation - Rivonia Trial and recommended that funding to the amount of R be awarded to the project. The funding of the project was subsequently reviewed and approved by the council on 22 May Mr B Dakada was a council member and held business interest in Siyaya Cultural Organisation at the time of assessment, approval and disbursement of funds to the project

76 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.11 Notes to the Financial Statement for the year ended 31 March 2011 Notes to the Financial Statements for the year ended 31 March 2011 Figures in Rand Condoned by The council of ECPACC have since condoned the above non-compliance with ECPACC supply chain management policy on 20 August Amount Irregular expenditure to the amount of R was condoned at a full council meeting. 23. Fraud investigation During the 2009/10 year ECPACC council approved funding of film project called Adjudicator 3. The funding of the project to the amount of R was awarded following the council s assessment of the project plan submitted by the applicant. Thereafter the applicant was required to sign a Conditions of Acceptance Form which commits the applicant to employ the funds awarded to execute the tasks presented on the project plan. The allocated amount of R was deposited on 3 June On 20 June 2010 a group of disgruntled cast members of the Adjudicator 3 film project reported that the funds awarded have been fraudulently used. Following internal investigation it was confirmed that the funds awarded were not used for the purpose intended as the applicant utilised the funds to purchase assets for private use. Criminal case with the Commercial Crimes Unit of the South African Police Services has been initiated to recover the funds awarded from the representatives of Adjudicator 3 Film Project. The investigating officer of the Commercial Investigations Branch has indicated that all parties relevant to the case have been interviewed and the docket has been handed over to the Director for Prosecutions Soccer World Cup Tickets During the reporting period, no tickets for the 2010 soccer world cup were purchased by the council for the benefit of its employees or any of it's associates. 76

77 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.12 Detailed Statement of Financial Performance for the year ended 31 March 2011 Detailed Statement of Financial Performance as at 31 March 2011 Figures in Rand Note(s) Revenue Revenue from exchange transactions , ,059 Cost of sales Opening stock 262, ,111 Purchases 346, ,921 Closing stock (204,249) (262,528) ,989 99,504 Gross surplus 19,528 69,555 Other income Interest received , ,432 Sundry Income 6,390 1,188 Revenue from non-exchange transactions 14,744,324 15,345,983 14,953,760 15,602,158 Operating expenses Accounting fees 23,589 53,538 Accommodation Costs 276,464 39,600 Advertising & promotion 155,120 32,843 Auditors remuneration - External 14 1,055, ,216 Auditors remuneration - Internal 76,067 - Bad debts 218,550 9,120 Bank charges 28,226 36,631 Bursaries awarded 627, ,000 Casual labour 19,225 11,600 Catering 75, ,886 Cleaning and teas 84,550 63,592 Computer expenses 55,592 15,161 Councilors remuneration 324,248 - Depreciation, amortisation and impairments 229, ,488 Donations 44,950 - Employee benefits 3,793,562 2,749,527 Festivals & concert support 856,914 - Film production & documentaries 27,000 - Crockery & Breakages - 1,630 Exhibition expenses 10, ,385 77

78 Eastern Cape Provincial Arts & Culture Council Annual Financial Statements 3.12 Detailed Statement of Financial Performance for the year ended 31 March 2011 Detailed Statement of Financial Performance as at 31 March 2011 Figures in Rand Note(s) Facilitation of Workshop 17,000 27,000 FIFA Soccer World Cup 2010 exhibition 614,462 - Hire Costs 1,150 2,052 Strategy development and fundraising costs 41,683 15,198 Meeting expenses - 504,782 ECPACC projects 4,431,338 8,488,458 Insurance 70,701 48,284 Lease rentals on operating lease 405, ,632 Postage 8,339 4,998 Printing and stationery 210, ,294 Professional fee 43,396 - Repairs and maintenance 34,219 38,147 Staff training and development 18, ,160 Security 152, ,061 Subscription 30,737 5,972 Telephone and fax 209, ,748 Training - 26,000 Transport Costs ,786 Travel - local 180, ,446 Water, electricity and sanitation 48,267 32,333 Total operating expenditure 14,501,000 15,247,568 Surplus for the period 452, ,590 78

79 79

80 4. Human Resources Report 80 80

81 4.1 Employment and vacancies Table Employment and vacancies, 31 March 2011 Location Number of posts Number of posts filled Vacancy rate East London Office % Amathole Craft Hub 5 5 0% Eastern Cape Arts & Craft Hub 5 5 0% Eastern Cape Film Office 1 1 0% Chris Hani Craft Hub 5 5 0% Total % Table Employment and vacancies by salary bands, 31 March 211 Salary band Number of posts Number of posts filled Vacancy rate Lower skilled (levels 1-2) 8 8 0% Skilled (levels 3-5) % Highly skilled (levels 6-8) % Highly skilled supervision (levels 9-12) % Total % 4.2 Job Evaluation Job evaluation was not undertaken during the year under review. 81

82 4.3 Employment Equity Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March Salary band Male Female Total Lower skilled (Levels 1-2) Skilled (Levels 3-5) Highly skilled supervision (Levels 6-8) Highly skilled supervision (Levels 9-12) African Coloured Indian White African Coloured Indian White Total Employees with disabilities Foreign workers There were no foreign workers employed at the Eastern Cape Provincial Arts and Culture Council. 4.5 Labour relations A procedural and relationship agreement was entered into with the National Education Health and Allied Workers Union (NEHAWU) during the year under review. 4.6 Injury on duty There were no incidences of injuries on duty during the year under review. 4.7 Utilisation of consultants Name of consultant Status Nature of task Days Cost Grant Thornton Non-HDI Payroll Ongoing support R23, 589 Total R23,

83 5. Other Information 83

84 5.1 List of Acronyms AFS AG AO APP DSRAC EC ECPACC GAAP FIS FM GRAP HDI HoD HRM IA MEC MTEF MTSF PFMA PGDP SA SCM SCOPA Annual Financial Statements Auditor-General Accounting Officer Annual Performance Plan Department of Sport, Recreation, Arts and Culture Eastern Cape Eastern Cape Provincial Arts and Culture Council Generally Accepted Accounting Practices Financial Information System Financial Management Generally Recognised Accounting Practices Historically Disadvantaged Individuals Head of Department Human Resource Management Internal Audit Member of the Executive Council Medium Term Expenditure Framework Medium Term Strategic Framework Public Finance Management Act Provincial Growth and Development Plan South Africa Supply Chain Management Standing Committee on Public Accounts 84

85 5.2 List of contact details Designation Name Cell Tel Fax MEC Mrs X Tom nolufefe.mdingi@srac.ecprov.gov.za HOD Mr M Matutu xoliswa.tshetsha@srac.ecprov.gov.za Chairperson: ECPACC Council Dr S Matoti smatoti@wsu.ac.za Deputy Chairperson: Ecpacc Council Mr V Pokwana vukilep@gmail.com Council Member Mrs Janet Buckland j.buckland@ru.ac.za Council Member Mr Sipho Lisa Chief executive Officer Mr TR Mehlala rmehlala@mweb.co.za Finance Manager Mr AF Raj Amit.raj@mweb.co.za Eastern Cape Film Office Manager Mr V Zukelwa vuyi@ecfo.co.za Arts Development Manager Ms X Ncoko x.ncoko@mweb.co.za Amathole Craft Hub Manager Ms V Nini roundy@vodacom.co.za Chris Hani Craft Hub Manager Ms A Gili Theo802003@yahoo.com Eastern Cape Arts and Craft Hub Manager Ms B Bam mlibobam@yahoo.com 85

86 86