Annual Report 2008

Preserving Our Heritage Contents Contents 2 Foreword 4 NHC Memebrs for 2007/08 to 2009/10 5 Vision and Mission ...

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Preserving Our Heritage

Contents

Contents

2

Foreword

4

NHC Memebrs for 2007/08 to 2009/10

5

Vision and Mission statements

6

Constitutive Act and Legislative Mandate

9

Section two

10

Overview

11



IRISH REPUBLIC SA LEGACY PROJECT

11



RECLAIMING THE VALUES OF UBUNTU

11



THE NATIONAL LEIBERATION ROUTE

12



UNSUNG HEROES AND HEROINES

12



TRANSFORMATION CHARTER

16

Life Cycle of the NHC

20

Heritage Programmes and Projects

22

Funding and Resource Mobilization

26

Marketing and Communications

29

Finance and Administration

31

Section three Annual Financial Statements

32

Report of the Auditor-General to Parliament

36

Report of the Audit Committe

38

Corporate Governance

41

Council Report

43

Contents •

Financial statements for the National Heritage Council

Foreword Following the expiry of the term of office of the previous Council on 30 September, 2006, a new Council was appointed with effect from 01 April, 2007. However, owing to the delay in finalising the appointment of provincial representatives to the Council, the start of formal operations of the new, fully constituted, Council was delayed until 13 September, 2007. This report is thus the first one issued by the new Council, whose term of office commenced at the beginning of the financial year under review and presents a schematic overview of highlights for that particular period up to the present. It should,

Mr. Ntobeko Maqubela

however, be noted that the process of finalizing the

Chairperson

composition of Council is by no means complete, and the NHC continues to engage the Department of Arts and Culture in order to finalise the appointment of new Council members. This exercise should be completed during the 2008/2009 financial year.

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Annual Report

Preserving Our Heritage

Foreword

Upon assuming its duties, the new Council soon

stakeholder engagement processes, such as meet-

appreciated the significant impact that the NHC as

ings, conferences and workshops, aimed at solicit-

a body has made on South Africa’s heritage land-

ing inputs that will assist in this process.

scape. When one considers that the NHC was only launched in February, 2004, it is clear that the stra-

I speak on behalf of the Council when I record what

tegic initiatives it had embarked upon have, in a

a great pleasure and privilege it has been to be as-

relatively short space of time, already generated

sociated with the NHC, which continues to impact

tremendous interest amongst the public at large.

peoples’ lives through programmes that foster social

The NHC quickly forged strategic partnerships with

cohesion and nation building through Ubuntu. In this

stakeholders in the media and in the broad heritage

regard, all credit should go to Advocate Sonwabile

fraternity. The result of these partnerships has been

Mancotywa, the CEO of the NHC, whose vision and

the creation and implementation of a range of suc-

passion for heritage is unparalleled. Through his

cessful initiatives that have further broadened the

stewardship and leadership in heritage, our tasks

exposure of heritage in general to the South African

and responsibilities as the new Council have been

public. In this regard, young as it is, the NHC, and

made very much easier.

more particularly the previous Council, Executive Management and Staff, should be commended for

Council is aware that many challenges will have to be

the sterling work that they did in just a few years

overcome before the goals it has set for itself could

to bring heritage to the forefront of contemporary

be realised. However, given the fine track record,

public discourse.

professionalism, and obvious enthusiasm shown by the NHC staff over the past few years, we look forward to the future with great confidence.

Heritage research initiatives and projects continue to be undertaken in partnership with government departments, tertiary and research institutions, and the private sector. These valued partnerships, plus new ones in the pipeline, will be sustained and expanded for the benefit of the sector. The new Coun-

Mr. Ntobeko Maqubela

cil will, during the course of 2008/2009 financial year, also be finalising the scope, nature, and con-

Chairperson

tent of the Heritage Transformation Charter. To this

National Heritage Council

end, Council has benefited from a number of public

3

National Heritage Council of South Africa

National Heritage Council Members For 2007/2008 To 2009/2010 Members appointed by the Minister of Arts

Provincial Representatives appointed by

and Culture in terms of section 5(1)(a) of

the Minister as Nominated by MEC for Arts

the National Heritage Council Act, 1999

& Culture in terms of section 5(1)(b) of the National Heritage Council Act, 1999

Mr N. P. Maqubela (Chairperson)

Prof M. D. R. Ralebipi– Simela (Vice-Chairperson)

Prof C. S. Rassool (Member)

Ms L. Callinicos (Member)

Adv T. K. Ntsewa (Member)

Dr L. P. Nkosi (Member)

Dr P. Seboni (Member representing Gauteng Province)

Ms. S. G. Mapalala (Member representing Mpumalanga province)

Mr M. Maboee (Member representing Western Cape Province)

Mr Z. Mkiva (Member representing Eastern Cape Province)

Mr J. T. Mdeni (Member)

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Annual Report

Preserving Our Heritage

Vision nad Mission

Vision And Mission during 2004 remained intact until 22 February, 2008.

Mission

At this point they were reviewed, the objective be-

The NHC’s mission is to

ing to create a new Council-approved NHC Strategy



The vision and mission crafted by the first Council

for the period 2008 – 2011, which has at the end of

­co-ordinate heritage management, informed by stakeholder consultation and engagement;

February 2008 been submitted to the Department of



­provide a transformation strategy and frame-

Arts and Culture. This review was informed by the

work for the heritage sector to embrace South

need to create a vision statement that is more ap-

Africa’s diverse heritage, in the interest of na-

posite to the current heritage environment, as well

tional identity;

as the future aspirations of the heritage sector in



the country. These revised vision and mission state-

­facilitate the development of heritage policies through consultations and partnerships with key

ments are presented by Council in the firm belief

sector role players;

that they will add a new dimension of dynamism to



the organisation and its purposes.

­advise the Minister of Arts and Culture on heritage policies and other heritage matters;

Vision



“To be the leading agent for the preservation, pro-



­play a leading role in the establishment of policy for the repatriation of South African heritage resources;

tection and promotion of South African heritage,

­promote, mainstream and showcase living heritage, with particular emphasis on Ubuntu, as a

both tangible and intangible, for sustainable devel-

means of nation building;

opment”



­provide a framework for the sustainable use of heritage resources in social development to unlock the economic potential of South Africa’s national heritage; and



­facilitate the establishment of strategic partnerships with heritage stakeholders and role-players regionally, nationally, and internationally.

5

National Heritage Council of South Africa

Constitutive Act and Legislative Mandate The National Heritage Council, a Schedule 3A public

The Council must:

entity that came into existence through an amend-

a) advise the Minister on –

ment of the Cultural Laws Second Amendment

i) national policies on heritage matters, in-

Act 69 of 2001, was officially constituted through

cluding indigenous knowledge systems, liv-

the National Heritage Council, 1999 (Act No. 11 of

ing treasures, restitution and other relevant

1999), assented to on 14 April, 1999 and officially

matters; and

proclaimed on 26 February, 2004.

ii) any other matter concerning heritage which Minister may from time to time determine.

Objects of Council

b) advise the minister on the allocation of core funding to the declared cultural institutions;

The objects of the Council are to: •

c) investigate ways and means of affecting the

develop, promote and protect South Africa’s na-

repatriation of South African heritage objects

tional heritage for present and future genera-

presently being held by foreign governments,

tions;

public and private institutions and individuals;



co-ordinate heritage management;



protect, preserve and promote the content and

d) make grants to any person, organisation or institution in order to promote and develop na-

heritage which reside in ‘orature’ in order to

tional heritage activities and resources;

make it accessible and dynamic; •

e) co-ordinate activities of public institutions in-

integrate living heritage with the functions and

volved in heritage management in an integrated

activities of the Council and all other

manner to ensure optimum use of State re-

heritage authorities and institutions at national,

sources;

provincial and local level; •

f) monitor and coordinate the transformation of

promote and protect indigenous knowledge sys-

the heritage sector, with special emphasis on

tems, including, but not limited to, e n t e r p r i s e

the development of living heritage projects;

and industry, social upliftment, institutional

g) consult and liaise with relevant stakeholders on

frameworks and liberatory processes; and •

heritage matters;

intensify support for the promotion of the histo-

h) generally support, nurture and develop access

ry and culture of all our peoples and particularly

to institutions and programmes that promote

to support research and publication on enslave-

and bring equity to heritage management;

ment in South Africa.

i) promote awareness of the history of all our peoples, including the history of enslavement in

Functions, powers and duties of Council

South Africa; j) lobby in order to secure funding for heritage management and to create a greater public

The following are the functions of the Council that

awareness of the importance of our nation’s

are derived from the National Heritage Council,

heritage;

1999 (Act No. 11 of 1999):

k) perform such duties in respect of its objects as the Minister may assign to it.

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Annual Report

Preserving Our Heritage

Constitutive Act and Legislative Mandate

7

National Heritage Council of South Africa

8

Annual Report

Preserving Our Heritage

Section Two Overview 9

National Heritage Council of South Africa

Overview BY THE CHIEF EXECUTIVE OFFICER ADV.SONWABILE MANCOTYWA

10

Annual Report

Preserving Our Heritage

Overview

The National Heritage Council has moved to greater

the NHC could not have achieved the clean report.

heights within five years of its existence. It will be

Len Konar and Associates are one of the best and

recalled that this entity was established from scratch

caring internal auditors that we have came across

in 2004 without even a completely promulgated Act

and for that we are blessed. Our audit committee

of Parliament (Act 11) of 1999.

continues to render good professional advice to the NHC management .The fact that the Chairperson

So, judging by standards of practice, the NHC has

of the audit committee is a registered and practic-

grown tremendously, far exceeding expectations.

ing accountant has added tremendous value to the

It has reached a stage of rapid growth within two

committee.

years of existence, something that contemporary organisations never easily attain.

Our governance protocol has outlined a clear delineation of roles and responsibilities of Council and its

The NHC has a full governance protocol. During

Council Committees. The role of the council is one

the first year of our existence the NHC invested in

of oversight and due diligence (fiduciary role) which

strengthening governance in line with the norms

it exercises by developing policies, norms and stan-

and standards enshrined in the King I and King II

dards whilst management carries day to day admin-

reports. Judging from the previous result of audits

istrative and policy implementation responsibilities

adequate attention has been given to strengthening

under the leadership of the Chief Executive Officer.

systems and controls of the entity in line with PFMA and regulations. The three unqualified audit opin-

The Committees are policy organs of the Council.

ions of the Auditor General are quite a remarkable

They look at policy details and report to Council

achievement for the NHC. Even the concerns of the

through their Chairpersons. The terms of reference

Auditor-General have been followed through with

for the Council Committees have been worked out

regular and periodic reports. During the financial

and the committees are now fully operating.

year under review the NHC has not only obtained an unqualified audit report but it has achieved a re-

Our Council continues to give strategic leadership

cord of a clean audit report. This is a very important

on policy for the attainment of strategic goals of the

milestone which is due to the dedication of the NHC

NHC. The Council is constituted by members with a

professionals and adherence to good governace.Our

variety of skills and expertise in heritage and they

internal auditors Len Konar and Associates continue

continue to add value to the NHC. The collective

to assist the NHC to identify areas of potentials risks

leardership of the Chairperson and the Council has

and corrective measure the service without which

boosted the perfomance of the NHC.

11

National Heritage Council of South Africa

The NHC is now the voice of heritage in Our Country.

The NHC continues to fund special projects through

It continues to give strategic leadership at different

the independent funding committee as part of the

levels in the sector. We have managed to put crucial

core mandates of the NHC enshrined on our con-

issues affecting promotion of our nation on the na-

stitutive Act. Our funding policy will be reviewed

tional agenda thereby raising the profile of heritage

in order to strengthen certain areas and this may

and changing certain stereotypes and perceptions.

include introducing some amendments to our con-

Even the vocabulary when it comes to the matters

stitutive Act in order to give effect to unintended

of social memory has now changed in that previous-

consequence. A particular attention will be given

ly people would talk about Culture and not Heritage.

to resource mobilisation through forging strategic

That has now changes as people talk about heri-

partnerships with the private sector and as well as

tage instead of culture. Heritage is the buzz word

international donor agencies.

whether in the media circles or for people who seek funding from various funding agencies.

The NHC has invested in the development of its long term strategy. This document has been reviewed

The NHC has now entered into a new trajectory and

from time to time taking into consideration the con-

a phase in its development life where emphasis will

stantly changing external environment in which the

be made on policy development. We have already

NHC operates.

identified strategic policy areas which we will focus on during the financial years 2008/9. Our critical

The NHC strategy document has been geared to-

challenge is to strengthen the research and policy

wards making the NHC respond to its mandate of

capacity of the NHC. Our focus on policy this year

co-ordinating and management of our heritage

means that we need to invest on knowledge produc-

whilst developing policies to advise the Minister and

tion in a focused way.

also strengthen its capacity to advise the Minister. The current strategy of the NHC has been aligned

The Department of Arts and Culture has introduced

to the balanced score card. This makes it easier to

a practice of ring-fencing a portion of our allocation

monitor implementation and enhances the perfor-

linking it to special projects. The NHC and DAC have

mance management system. Each strategic prior-

developed consensus on how the ring fenced R16.2

ity is linked to specific short term, simple and mea-

million will be spent .This amount will be linked to

surable objectives. The current strategy of 2008 to

certain national priorities which will be monitored by

2010 was developed with the participation of all em-

DAC though quarterly reports.

ployees of the NHC. This is very important in that the most crucial part of a strategy lies in its implementation

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Annual Report

Preserving Our Heritage

Overview

During the year under review the NHC continued on

a clear implementation plan. Already the Advisory

its rapid growth phase, implementing a wide range

Committee has been conducting research and pro-

of strategic programmes. The key highlights were

duced publications around Ubuntu philosophy, in-

the following programmes:

cluding the development of a criteria for selection



advance stage.

of a recipient of the Ubuntu award, which is at an

IRISH REPUBLIC SA LEGACY PROJECT

A service provider has been appointed to organize The Deputy President of SA, Ms Pumzile-Mlambo

annual Ubuntu Imbizo’s and Ubuntu Awards for the

Ngcuka as part of her efforts of strengthening stra-

next three years.

tegic relations with the Republic of Ireland request-



ed the NHC to undertake a research project that concentrates on the history of links between South

THE NATIONAL LIBERATION ROUTE

Africa and Ireland. The product of this work was a book that was launched in a very emotional activity

There are several activities, workshops and consul-

in Robben Island on 15 February 2008, where the

tations regarding the development of the liberation

Deputy President unveiled this historical work with

heritage route. More prominent has been the launch

the Ambassador of the Irish Republic. Our offices

of the Liberation Route which NHC organised in part-

have been inundated with requests from different

nership with the Chris Hani District Municipality on

people for more copies of this great book, which is

the 10th of April 2008 at Chris Hani’s birthplace, Sabalele village near Coifimvaba. The launch coincided

the first of its kind.

with the commemoration of Chris Hani who died15



RECLAIMING THE VALUES OF UBUNTU

years ago. This event was widely publicized and it helped to raise awareness to the country about the importance of the Liberation Heritage Route proj-

This is one of the pinnacle programmes for the NHC

ect.

which focuses on reclaiming the values of Ubuntu. The Chris Hani District Municipality has commisThe National Advisory Committee on Ubuntu has

sioned research to gather information towards the

been set up and held a series of meetings to de-

development of sites associated with the liberation

velop a programme for this financial year. A work-

struggle within its jurisdiction. The study has since

shop has taken place on 28th and 29th July 2008,

been completed and a report has been produced

to refine the project plan and activity schedule with

and circulated.

13

National Heritage Council of South Africa

In May 2008, a service provider was appointed to

jective of this visit centred on an exchange of exper-

develop a business case and do preliminary research

tise, experience and information in the development

on the concept of a Liberation Heritage Route and

and conservation management of sites and places

this included cultural mapping and feasibility assess-

associated with the liberation history and struggle.

ment. A pre-commencement workshop on condi-

Cuba is amongst several countries such as Botswa-

tions of contracting the service provider took place

na, Zimbabwe and others, that the NHC is interact-

towards end of May 2008. The workshop focused on

ing with in the development of the National Heritage

the finalising contractual matters of engage the ser-

Liberation Route.

vice provider and to define their scope of work . In-



ception report or project plan with a detailed activity schedule with timeframes has been produced.

UNSUNG HEROES AND HEROINES

Another related programme in which we are part-

The NHC has commissioned research involving the

nering with Botswana government and Northwest

production of a documentary of ‘Unsung Heroes and

Provincial Government is the Botswana-South Africa

Heroines’, in a form of a DVD (audio visual material)

Liberation Gateway History Legacy Project which

and a report on live oral history interviews of indi-

has just started with a series of consultative meet-

viduals who equally played an imperative role in the

ings. Through this partnership, the National Heri-

liberation struggle but not yet recognised. Several

tage Council participated in the launch of the project

reviews of this work have taken place and the final

which was held on the 28 March 2008, the com-

product is being finalised.

memoration of the 1985 bombing by the South Af-



rican Apartheid forces in Botswana which was held

TRANSFORMATION CHARTER

in Botswana, South African High Commission. The As a result of the recommendations from the na-

commemoration was held on the 14th June 2008.

tional summit in December 2007, the services of the Heritage Transformation Task Team had to be ex-

Most recently, in June 2008, a delegation from the NHC led by the CEO, Adv Sonwabile Mancotywa,

tended in order to focus on consultations with sub-

embarked on an official visit to Cuba. The main ob-

sector stakeholders (end user of the charter) for the

14

Annual Report

Preserving Our Heritage

Overview

development of an implementation and evaluation

successful conference took place on the 18th – 19th

framework. The draft charter has been in circulation

July 2008, with a particular focus on understanding

prior to consultation and engagement with stake-

the tensions between African cultural practices and

holders, in a ‘Professionals Body’s Workshop’, on 4th

human rights, and make policy proposals and rec-

July 2008. The workshop provided an opportunity to

ommendations on the subject matter.

solicit expert contributions and inputs on operational measures for the implementation of the charter.

The final draft of the transformation charter, which now will incorporate resolutions and recommenda-

As part of transforming the heritage landscape

tions from the professional bodies workshop, the

through public participation, the NHC was ap-

public hearings and the dialogue on African Cultural

proached to facilitate public hearings on disputes

Practices and Human Rights, is scheduled for com-

over the memorial of the 1985 Duncan Village Mas-

pletion by end of August 2008.

sacre, on 17th – 18th June 2008. Amongst several objectives, the public hearing served as a test case,

As I have mentioned at the beginning of this over-

for policy formulation, to explore the fundamental

view that the NHC has grown tremendously within a

question of memorialisation and commemoration of

short time of its existence and this is due to the ded-

icons and events within the African context, being

ication and commitment displayed by the NHC small

pertinent issues that the charter has been grappling

team of professionals. I would like thank all NHC

to address.

employees for this commitment and preparedness to be of service to the NHC at all times. Our Council

Further consultation with the minister, on policy is-

members are worth commending for the policy and

sues related to the charter, also resulted in a strong

strategic guidance without which the NHC would be

proposal for the NHC to hold a national Dialogue on

unable to make the advances it is making and well

African Cultural Practices and Human Rights. This

as the impact in the sector.

15

National Heritage Council of South Africa

Life Cycle of the NHC The evolution of the NHC can generally be classified in three stages: the establishment phase, the early growth phase (or organisational infancy), and the consolidation/ expansion/maturity phase. These are analytically distinct, even though there are overlaps that stretch from one phase to another. These phases are also not perfectly sequential, as some developments have come earlier or later than in conventional organizational development models. The phases are graphically represented as follows:

16

Annual Report

Preserving Our Heritage

Overview

The organisation has now reached the maturity and

cruited what it then considered to be key and basic

consolidation phase, after focusing initially on defin-

staff. Over time, and informed by the strategy, this

ing its mandate and managing the setting-up pro-

interim arrangement had to be reviewed. Following

cess.

conventional practice, where organisational structure is informed by the strategy, this review was a

The start-up or early growth stage was character-

logical step to follow in order to meet the demands

ised by the following activities: organisational de-

of a maturing organisation.

velopment was a prime focus of NHC in its formative years, together with prioritisation of niche areas of

During 2006, the old Council accepted the proposed

activity. During 2004 and in the first few months

new organisational structure, but indicated that its

of 2005, the NHC’s main focus was to establish and

implementation would take place only after a com-

consolidate internal systems. During this period,

plete planning programme that would include, inter

the NHC was confronted by a number of challenges,

alia, a job profiling exercise. The availability of funds

most of which could be attributed to the demands

would also determine the rate at which this imple-

of developing a suitable organisation. Other chal-

mentation would take place.

lenges were of broad strategic nature beyond the Now more than ever, the finalization of this structure

internal organisational dynamics of the NHC.

and its implementation has become critical for the The NHC has now entered the maturity and con-

success of the NHC in terms of fulfilling its legislative

solidation phase with a credible profile in provinces

mandate.

and amongst critical role players in the country. The



most important challenge now is to define niche ar-

Development of corporate strategy

eas even more clearly in the heritage sector. This will require a support strategy of key strategic pro-

The NHC has a critical role to play in the heritage sec-

grammes, especially in the area of policy develop-

tor through developing policies and programmes, as

ment and public awareness and education. This is

well as by advising the Minister of Arts and Culture

crucial, as the success of the NHC will be linked to

on matters relating to the promotion of our national

the quality and effectiveness of policy interventions

heritage. The foundation of the strategy develop-

in the sector, as well as its ability to encourage pub-

ment process within the NHC has been to consult

lic participation and celebration of our rich and di-

with stakeholders. So far, the NHC has added value

verse heritage.

to the sector and will continue to consolidate its work through the creation of new strategic priorities.

Recruitment of key personnel This consolidation and refinement process responds When it was first established, and even before finali-

to both our mandate and the country’s national heri-

sation of NHC Strategy was complete, the NHC re-

tage imperatives. The NHC continuously analyses

17

National Heritage Council of South Africa

The Honourable Mayor of Ethekwini, Mr Obed Mlaba addressing the Public Consultations held in KwaZulu Natal

Mme Grace Masuku, Cultural Heritage Practioner, made her views very clear to the NHC in the North West Provincial public consultation

The Honourable MEC for Sports, Arts and Culture in Limpopo (left), Mrs Joice Mashamba

Ms Hope Ramaphosa, the Speaker of the Mpumalanga Provincial Legislature represented the Provincial Government in the public consultations

the national heritage landscape and accumulates

were identified as key. The NHC Act was the main

experience in dealing with heritage matters. From

source used to determine these areas, which are de-

time to time, landmark events become pivotal in

signed to enable the NHC to fulfil its mandate. The

this process. For example, the NHC reviewed its

following summarises the five key result areas, as

strategy in a workshop held on 22 February, 2008,

well as outlining the progress made to date.

which ushered in new strategic priorities to be pura. Transformation and the Heritage Charter

sued in subsequent years. These revised priorities are designed to optimise our use of the country’s rich heritage to address a range of national impera-

Whilst many sectors in South Africa benefited

tives.

dramatically from the efforts to make the coun-

Heritage sector strategy

was left out in the cold. Labour, science and

try a better place for all, the heritage sector technology, education, tourism, wildlife, the juBroadly speaking, the NHC’s long-term strategy

diciary, social services, arts and crafts, amongst

needs to address the following question:

others, have all undergone legislative reform,

where do we want to take the South African heritage

policy streamlining, institutional alignment, in-

sector in the next ten to twenty years? In attempt-

vestment injection or some other form of rigor-

ing to answer this question and formulate its long-

ous intervention. Indeed, some of these sectors

term strategy, all key stakeholders that operate

have enjoyed these improvements more than

in the sector should contribute to ensure that any

once in the past fourteen years.

product that comes through becomes the embodiment of the aspirations of the entire sector.

It was only recently that the heritage sector started receiving similar attention. Fortunately,

The call for a unified and clear sector strategy has

the tide is turning as the department of Arts,

come from role-players within the sector itself dur-

Culture and Heritage undertakes its own Policy

ing NHC consultative forums across the country, and

and Legislative Review process. At the same

the NHC is therefore confident that co-operation

time, the NHC is completing its Heritage Trans-

across the board will be forthcoming. In addition,

formation Charter, the first draft of which was

the Department of Arts and Culture has indicated its

completed and released for comment on 12

willingness to partner with the NHC in this huge and

December, 2007. It is anticipated that the final

strategically important task.

draft Heritage Transformation Charter will appear in August, 2008, which falls within the next

Strategic focuses

financial year following the year currently under review.

After numerous discussions and debates within Council and its management, five strategic areas

18

Annual Report

Preserving Our Heritage

The Honourable MEC for Sports, Recreation, Arts and Culture in the Eastern Cape Province, Ms Noxolo Abraham Ntantiso flanked by learners in Mthatha

Mrs Ntombenhle Nkosi, the CEO of PANSALB expressing her views on language matters

The Honourable, Deputy Minster of Arts and Culture, Ms Ntobazana Botha. National Heritage Transformation Charter Public Consultation, December 2007

b. Heritage Programmes

Sonwabile Mancotywa with the Veteran Artists and Cultural Practitioner, Mme Noria Mabasa who made her mark at the consultations in Limpopo

have arisen from incidents that are cultural in nature, such as rites of passage, ritual slaugh-

During the year under review, the following pro-

ters, the ever-contentious geographical name

grammes were prioritised:

changes, and others. These debates and issues require existing legislation to be examined, and,

i.

As mentioned above, the Heritage Trans-

possibly, fine-tuned. To this end, the NHC suc-

formation Charter has been a priority. The

cessfully hosted a Cultural Legislation Indaba

First Draft was made available for comment

in Midrand during April, 2007 and the Heritage

on 12 December 2007, and the final Char-

Transformation Charter Conference during No-

ter is expected to be completed by August,

vember of that year. Inputs from both these

2008.

meetings informed the shape of the First Draft Heritage Transformation Charter.

ii. A strategy to ensure that there is a two tier d. Funding and Resource Mobilisation

system which allows South African citizens, especially the youth and the elderly, to have affordable and differentiated access rates to

Many projects that contribute to the preserva-

heritage destinations and institutions has

tion of heritage, especially from communities,

been explored in the year under review. A

are generally not well supported financially. Ac-

framework will be fully developed before the

cess to such funding is generally restricted by

end of 2008/2009 financial year.

all the formal funders, and it is becoming increasingly difficult for community projects to

iii. A framework will be put into place whereby

remain viable. There has thus been a pressing

heritage assets benefit economically from

need for the NHC to intervene, and direct NHC-

their contribution to the country’s economy.

funded projects are starting to generate positive

One method could be through accessing

results, particularly in the area of community

funds generated by the Tourism Levy. This

initiatives in disadvantaged areas.

plan has also been conceived in the year une. Institutional Development

der review and will be completed before the end the 2008/2009 financial year.

Given the macro-environment, and the need for c. Policy development

growth within the NHC itself, its core-business competency needs to be strengthened in pursuit

According to the NHC Act, the Ministry of Arts

of its mandate. This also requires that the NHC

and Culture expects the Council to advise it on

increases its capacity in terms of human capital

heritage matters. In this regard, Council is very

and also trains its employees to meet new chal-

aware of many public concerns and debates that

lenges.

19

National Heritage Council of South Africa

Adv. Sonwabile Mancotywa and Dr Kenneth Kaunda receiving the Ubuntu Award

Dr K. Kaunda and Minister of Arts and Culture, Dr Pallo Jordan in Pniel where the 2007 Ubuntu imbizo was held

Dr Kenneth Kaunda, sharing a moment with Council members, (from left to right) Luli Callinicas, Dr Nkosi, Ms Sibongile Mapalala

Heritage Programmes and Projects Strategic Heritage Programmes

conferences and surveys that were conducted in the early growth phases of the NHC. These conferences

The NHC Heritage Unit is responsible for the con-

were able to provide a deeper understanding of the

ceptualisation of programmes that are of strategic

heritage sector, its challenges and needs, whilst the

value to the vision of the organisation and address

NHC was able to forge true corporate relations with

its mandate. Examples of such programmes are the

stakeholders across the board.

NHC PROGRAMMES FOR 2007-2008 1.

Development and Implementation Heritage Transformation Charter

2.

Young Artists’ Development and Empowerment Programme

3.

Ubuntu and Nation Building

4.

Unearthing and Documentation of Unsung Heroes and Heroines Heritage Project

5.

Heritage Festival for Reconciliation and Nation Building

6.

Partnership with Icomos - SA to host ICOMOS International Conference

7.

UNESCO & World Heritage Committee Activities

8.

Development of a Policy Framework for Repatriation of South African Heritage

9.

Liberation Route World Heritage Site Programme

10.

Makhonjwa Earth History World Heritage Site Programme

11.

Women & Heritage

12.

Digitisation policy strategy

13.

Irish-South Africa Heritage Project

14.

Heritage Resource Centre Development

15.

Early Modern African Intellectuals: Sol Plaatjie project.

16.

South African Traditional Music Awards

17.

Audit of the Heritage Sector

18.

CEO’s & Directors’ Forum

In this regard, the following key achievements and

b) Revival of Ubuntu for Nation Building, where the

milestones can be listed:

NHC hosted the Second Annual National Imbizo on Ubuntu at Boschendal in the Western Cape.

a) The process of developing Heritage Transforma-

At that event, the former Zambian President,

tion Charter commenced in 2006 and the first

Kenneth Kaunda accepted the Ubuntu Award

draft was completed in December, 2007.

and unveiled the Ubuntu Memorial. The Minister

20

Annual Report

Preserving Our Heritage

The Honourable Deputy President, launching the book on Irish Heritage in South Africa

The Deputy Minster and Lemma Guya, the Veteran Artist from Ethiopia

of Arts and Culture, Dr. Pallo Jordan, was the

The Honourable Deputy Minister of Arts and Culture, ms Ntobazana Botha with the Young Heritage Artists at their first exhibition in Gauteng, Santon

berton sites, which are in the preparatory phase

main speaker at the Imbizo.

for nomination.

c) An audit of the heritage sector culminated in the

g) The NHC participated in the 31 session of the

production of a Heritage Directory, which is con-

World Heritage Committee meeting held in New

sidered to be an important resource for informa-

Zealand in June 2007. This is where the Rich-

tion on the sector. This directory was completed

tersveld Cultural and Botanical Landscape was

in 2006/2007 and distribution was done in the

inscribed on the list of world heritage sites.

year under review. Owing to high demand for

h) NHC participated in the World Heritage Commit-

the directory, additional copies had to be printed

tee meeting during July, 2007.

and circulated.

i) The NHC co-hosted the second South African

d) The NHC funded nine young South African art-

Traditional Music Awards held in Durban during

ists from our nine provinces to receive training

September, 2007.

in indigenous art in Ethiopia during 2006. Fund-

j) The NHC continued to support the Heritage

ing was also provided for an exhibition of indig-

CEOs/Directors’ Forum which has been identi-

enous artworks, which was held in July, 2007

fied as an important intervention aimed at co-

and was attended by stakeholders including,

ordinating and integrating the heritage sector.

amongst others, the Umsobomvu Youth Fund,

k) The NHC commissioned research on the Irish

the Youth Commission, and the Department of

and South African heritage linkages. The result

Trade and Industry.

was a book which gives a historical account of

e) The NHC assisted local heritage institutions in

the Irish contribution towards the empowerment

their engagement with international heritage

of South Africans during the oppressive apart-

bodies such as the International Council of Mu-

heid regime through their mission stations. The

seums (ICOM) and International Committee of

book was launched by the Deputy President, Mrs

Monuments and Sites (Icomos) and South Afri-

Phumzile Mlambo-Ngcuka in February, 2008.

can Museums Association (SAMA).

l) The 1st edition of the Early Modern African In-

f) The NHC assisted in the initiative to have more

tellectuals was completed and launched in 2007.

sites, particularly from provinces without world

Copies distributed to government, national and

heritage sites enlisted on the tentative list of the

provincial libraries and resource centers in all

UNESCO World Heritage Sites. Notable exam-

nine provinces. Owing to excellent demand, 5

ples are the Liberation Heritage Route and Bar-

000 additional copies of the book were printed. m) The NHC has established a resource centre to serve as a base for reading, research and knowledge production to service the heritage sector.

21

National Heritage Council of South Africa

Funding and Resource Mobilization The National Heritage Council has, since its inception, assisted projects that are inspiring the ideals of rediscovering South African heritage and preserving it for educational, socio-economic or historical value. The NHC funding policy document is central to ensuring that we reach out to the disadvantaged heritage communities and practitioners, while at the same time taking into account the country’s cultural and geographical diversity. Our record to date shows that the NHC has fulfilled its requirements by funding a range of projects across all nine provinces that successfully represent our diverse heritage. In addition, a Monitoring and Evaluation Service (is in place) to assist in the monitoring, evaluation and reporting of funded projects in all provinces. An online reporting and monitoring system has also been developed for implementation in the current financial year 2008/2009. The financial year 2007/8 has seen a substantial increase in funds assisting heritage projects. Categories being funded currently cover the following:

Research

Indigenous Knowledge Systems

Documentaries

Heritage Funding

Preservation & protection

Capacity building

Exhibitions

22

Annual Report

Preserving Our Heritage

Overview

In the year under review, the NHC funded the following projects: NHC FUNDED HERITAGE PROJECTS FOR 2007/2008 ITEM

NAME OF PROJECT

PROJECT DESCRIPTION

PROVINCE

NO

AMOUNT AWARDED

1

University of the North West

2

Early African Intellectuals in

Research and production of encyclopedia for the

North West

R386 000

Recording of the Early African Intellectuals in the

Eastern

R272 500

province the Eastern Cape

Eastern Cape

Cape

3

Khoisan Tshwane

Rekindling of the heritage of the Khoi and the San

Gauteng

R450 000

4

Tlou Setumu: Malebogo

Documentary on the Molebogo – Boer War

Limpopo

R750 000

MTA Makuliwe – Iziduko Za-

Publication and production of a book on iziduko

Eastern

R200 000

people for schools in Pretoria –Boer War 5

maxhosa

zamaXhosa

Cape

6

African Conservation Trust

Digitisation of rock art

Kwa-Zulu

7

Arts & Teaching Initiatives

Teaching heritage to learners in schools

8

Trevor Huddleston CR Memo-

Protection & promotion of Sophiatown

Gauteng

R130 000

Recording of the liberation struggle legends for

Gauteng

R300 000

R500 000

Natal Eastern

R400 000

Cape rial 9

SA History On-line

10

Sibikwa Community Project

Story Telling & Heritage Festival

Gauteng

R275 000

11

Green Vision Foundation

Imaging & documenting of all declared heritage

National

R659 000

Documentary on the Zokwe family & their involve-

Eastern

R529 074

ment in the liberation struggle

Cape

Youth capacity building in oral history, photography

Gauteng

R500 000

Eastern

R200 000

school curriculum

sites 12 13

Zokwe Family Trust Khanya College

and cultural education 14

Ndhlambe Municipality

Heritage awareness and education

Cape 15

Molemo Cultural Village

Development of rock arts in Gamothapo

Limpopo

R100 000

16

Phakgamang Community

Conservation & development of cultural heritage re-

Limpopo

R400 000

Development

sources in Sekhukhune (archaeological and historical research)

17

Moletši Rock Art

Development of Moletši Rock Art

Limpopo

R100 000

18

Centre for African Studies

Oral history & research on the sacred caves in the

Free State

R600 000

–Free State University

Free State

Amathole District

Oral history research on the armed struggle

Eastern

R500 000

19

Cape 20

Thami kaPlaatjie

Research & documentary & publication on Robert

Gauteng

R300 000

Gauteng

R500 000

Sobukwe 21

Dr Sandy Baai

Research & documentary on Mendi ship

Year of funding

Number of projects

Total Value

2007/2008

21

R 7 665 960

23

National Heritage Council of South Africa

Monitoring and evaluation of Funded Projects The Funding and Resource Mobilisation Unit ensures that the monitoring, evaluation and reporting of funded projects takes place regurlarly. Projects are visited to validate all the data collected for evaluation. Reports comprise of achievments and challenges which are addressed with funded projects through funding operational processes.

ILLUSTRATION OF PROVINCIAL SPREAD OF FUNDED PROJECTS

R100 000

R529 074

R659 000 R500 000 R275 000

R300 000

R500 000

R300 000

R400 000

R500 000

R200 000

R400 000

R450 000

R500 000

R200000

R100 000

R300000

R 200 000

R400000

R272 500

R500000

R386 000

R600000

Provinces July

Nov

24

Annual Report

E Cape

National

Gauteng

Gauteng

Gauteng

Eastern Cape

Kwazulu Natal

Eastern Cape

Limpopo

Gauteng

R0

Eastern Cape

R100000

North West

Amounts Awarded

R700000

R300 000

R800000

R600 000

R750 000

July and November 2007 Approved Projects

Preserving Our Heritage

Overview

25

National Heritage Council of South Africa

Filming of videos, documentaries and news interviews

Hosting stakeholders at networking activities

Exhibitions held at different public events

Branding of mojor public events

Marketing and Communications A vital objective of the NHC is to publicise its pro-

ucts of the NHC were displayed. The visitors to our

grammes and increase public awareness on heri-

exhibition stalls at these conferences showed great

tage. Given that the past year was highlighted by

interest in the publications of the NHC and, more

a significant growth in the number programmes and

particularly, the Heritage Magazine, Early Modern

projects of the National Heritage Council, the Mar-

African Intellectuals, Mpumalanga Heritage, Irish

keting and Communications Unit had to increase its

Heritage in South Africa, the Ubuntu Report and the

efforts to match this new level of activity. Whilst

Heritage Directory.

the broad objective was to achieve a wider reach through public relations and advertising, the pro-

Partnerships with major institutions in print and

duction of research and corporate publications also

electronic media were embarked on, especially dur-

received dedicated attention from the Unit.

ing Heritage Month. Strategic programmes also enjoyed extensive coverage in the media.

The Unit’s effective engagement of the media in programmes of the core business resulted in a desirable

The Unit was able to meet its annual target of pro-

positive institutional image, greater public aware-

ducing biannual issues of the Heritage Magazine,

ness and an increased public appetite for participa-

monthly updates of the website, and developing

tion, as well as an increased project partnerships.

corporate stationery and branding material.

The Unit participated in exhibitions where the prod-

26

Annual Report

Preserving Our Heritage

Overview

HUMAN RESOURCES

c) Creation of wellness programmes to assist in attracting and retaining competent staff, as well

The strategic responsibilities of the Human Resourc-

as creating an environment conducive to safety

es Unit focused on the following:

and health for all concerned. d) Establishing a fair and ethical business and le-

a) Talent management, involving the full recruit-

gal culture and climate within the organisation.

ment cycle for the organisation up to placement

This went a long way to ensuring that employ-

of suitable candidates, based on organizational

ees performed their duties effectively.

needs.

e) Training and development of employees.

b) Performance management, establishing a high

f) Partnerships with other business units for the

performance culture within the organisation.

achievement of organisational goals.

Employees profiles for the year under review Category

Gender

Chief Executive Officer

Male

Chief Operations Officer

Male

Chief Financial Officer

Female

Human Resources Manager

Male

Business Operations Manager*

Male

Company Secretary

Male

Funding Manager

Female

Heritage Manager

Male

Marketing Manager

Male

Personal Assistant to CEO

Female

Personal Assistant to COO

Female

Funding Coordinator

Female

Finance Officer*

Male (Previous incumbent - female)

Senior Administration Officer

Female

Researcher – Heritage*

Female

Heritage Programmes Coordinator

Female

Heritage Transformation Charter Project Coordinator*

Male

Receptionist

Female

Driver

Male

Previous memebr

Male

Housekeeper

Female

* Attrition The employees marked with asterisks left the organisation during the year under review as per the table below:

27

National Heritage Council of South Africa

Position

Termination date

Reason

Researcher

31 July 2007

Better prospects

Driver

31 August 2007

Better prospects

Finance Officer

26 September 2007

Better prospects

Transformation Charter Project Coordinator

26 September 2007

Better prospects

Business Operations Manager

31 October 2007

Better prospects

All of the above positions were filled with the exception of Business Operations function, which is currently shared internally.

Training and development

Arts and Culture. To this end, the NHC was able to accommodate four interns and provide them with

Training and development is vital for the NHC, and

exposure to the business of heritage management.

support is provided on an ongoing basis to employ-

The interns were provided with technical training

ees in order to enhance their skills and keep them

opportunities and soft skills to equip them for future

up to date with business and heritage management

participation in the economic mainstream. The fol-

developments. Key developmental areas have been

lowing is the breakdown in terms of unit intake and

the Management Development Programme, train-

training provided:

ing in Pastel and Excel, Monitoring and Evaluation, Events Management, Business Writing, Minute-tak-

RACE

GENDER

UNIT

to name but a few.

Black

Male

Heritage

Black

Female

Funding

Internship programme

Two black

Females

Marketing

ing, Corporate Governance, and Risk Management,

In support of national initiatives to create employment pipelines, the NHC has endorsed the intern-

Notable training provided includes the MS-Word

ship programme introduced by the Department of

platform as well as monitoring and evaluation.

Interns at the NHC for the period Dec. 2007 to Dec. 2008

28

Annual Report

Preserving Our Heritage

Overview

Finance and Administration Financial Governance

The external auditor is the Auditor-General who is required to carry out an independent examination of

The National Heritage Council is committed to the

the financial statements in accordance with State-

principles of openness, integrity and accountability,

ments of South African Auditing Standards and to

and continually reviews processes and practices to

report its findings thereon. The Auditor-General’s

ensure compliance with legal obligations and adher-

report is set out in page 32.

ence to good corporate governance practices. Com-

Internal Controls and Internal Audit

pliance with the King Report on Corporate Governance and the Public Finance Management Act No.1 of 1999 (PFMA) is therefore an integral part of the

The organisation maintains internal controls and

objectives as approved by Council.

systems designed to provide reasonable assurance as to the integrity and reliability of the financial

Financial Statements

statements and to adequately safeguard, verify and maintain accountability for its assets. Such controls

The NHC Council and Executive Management con-

are based on established policies and procedures

firm that they are responsible for the preparation of

and are implemented with an appropriate segre-

the financial statements and other information pre-

gation of duties: Len Konar and Associates are the

sented in the annual report in a manner that fairly

NHC’s internal auditors

presents the state of affairs and results of the op-

Management reporting and financial status

erations of NHC. The annual financial statements contained in pages 43 – 47 have been prepared in accordance with the

The NHC has comprehensive management report-

Statements of South African Generally Accepted Ac-

ing disciplines in place which include the preparation

counting Practices, (including any interpretations of

of annual budgets by all units. Monthly results and

such statements issued by the Accounting Practic-

the financial status of operating units have been re-

es Board, with the prescribed Standards of Gener-

ported against approved budgets and compared to

ally Recognised Accounting Practices (GRAP) issued

the prior year.

by the Accounting Standards Board replacing the

Going Concern

equivalent GAAP Statements) and PFMA. They are based on appropriate accounting policies and are

The Accounting Authority is satisfied that adequate

supported by reasonable and prudent judgements

resources exist to continue business for the foresee-

and estimates.

able future and confirms that there is no reason to believe that the NHC will not continue as a going concern in the year ahead.

29

National Heritage Council of South Africa

30

Annual Report

Preserving Our Heritage

Section Three

ANNUAL FINANCIAL STATEMENTS 31

National Heritage Council of South Africa

Report of The Auditor-General to Parliament ON THE FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF NATIONAL HERITAGE COUNCIL FOR THE YEAR ENDED 31 MARCH 2008 REPORT ON THE FINANCIAL STATEMENTS Introduction 1. I have audited the accompanying financial statements of the National Heritage Council which comprise the statement of financial position as at 31 March 2008, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, accounting authority’s report, as set out on pages 44 to 74. Responsibility of the accounting authority for the financial statements 2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with the basis of accounting determined by the National Treasury, as set out in accounting policy note 1.1 and in the manner required by the [Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA. This responsibility includes:

• designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error



• selecting and applying appropriate accounting policies



• making accounting estimates that are reasonable in the circumstances.

Responsibility of the Auditor-General 3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these financial statements based on my audit.

32

Annual Report

Preserving Our Heritage

Financial s

4. I conducted my audit in accordance with the International Standards on Auditing and General Notice 616 of 2008, issued in Government Gazette No. 31057 of 15 May 2008. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance on 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. 6. An audit also includes evaluating the:



appropriateness of accounting policies used





reasonableness of accounting estimates made by management





overall presentation of the financial statements.

Basis of accounting 7. The public entity’s policy is to prepare financial statements on basis of accounting determined by the National Treasury, as set out in accounting policy note 1.1. Opinion 8. In my opinion the financial statements present fairly, in all material respects, the financial position of the National Heritage Council as at 31 March 2008 and its financial performance and cash flows for the year then ended, in accordance with the basis of accounting determined by the National Treasury, as set out in accounting policy note 1.1 and in the manner required by the PFMA.

33

National Heritage Council of South Africa

OTHER MATTERS Matters of governance 9. The PFMA tasks the accounting authority with a number of responsibilities concerning financial and risk management and internal control. Fundamental to achieving this is the implementation of certain key governance responsibilities, which I have assessed as follows: Matter of governance

Yes

No

Audit committee The entity had an audit committee in operation throughout the financial year.



The audit committee operates in accordance with approved, written terms of reference.



The audit committee substantially fulfilled its responsibilities for the year, as set out in section √ 77 of the PFMA and Treasury Regulation 27.1.8. Internal audit The entity had an internal audit function in operation throughout the financial year.



The internal audit function operates in terms of an approved internal audit plan.



The internal audit function substantially fulfilled its responsibilities for the year, as set out in √ Treasury Regulation 27.2. Other matters of governance The annual financial statements were submitted for audit as per the legislated deadlines √ (section 55 of the PFMA for public entities). The financial statements submitted for audit were not subject to any material amendments



resulting from the audit. No significant difficulties were experienced during the audit concerning delays or the unavail- √ ability of expected information and/or the unavailability of senior management. The prior year’s external audit recommendations have been substantially implemented.

34

Annual Report



Preserving Our Heritage

Financial s

OTHER REPORTING RESPONSIBILITIES REPORT ON PERFORMANCE INFORMATION 10. I have reviewed the performance information as set out on pages 10 to 24. Responsibility of the accounting authority for the performance information 11. The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure that the annual report and audited financial statements fairly present the performance against predetermined objectives of the public entity. Responsibility of the Auditor-General 12. I conducted my engagement in accordance with section 13 of the PAA read with General Notice 616 of 2008, issued in Government Gazette No. 31057 of 15 May 2008. 13. In terms of the foregoing my engagement included performing procedures of an audit nature to obtain sufficient appropriate evidence about the performance information and related systems, processes and procedures. The procedures selected depend on the auditor’s judgement. Audit findings (performance information) 14. I believe that the evidence I have obtained is sufficient and appropriate to report that no significant findings have been identified as a result of my review. APPRECIATION 15. The assistance rendered by the staff of the National Heritage Council during the audit is sincerely appreciated.

Pretoria 31 July 2008

35

National Heritage Council of South Africa

Report of the Audit Committee We are pleased to present our report for the financial year ended 31 March 2008. Audit committee members and attendance The Audit Committee consists of the members listed hereunder and meets four times per annum as per its approved terms of reference. It is reported that the Committee met only two times during the 2007/2008 financial year owing to the delay in the appointment of the Council and the appointment of the Audit Committee and its members. Consequently, it could not reach the minimum threshold required in terms of the Public Finance Management Act 1 of 1999, as amended. Name of member

Number of meetings attended

Prof MDR Ralebipi-Simela (Chairperson from 2005 until 23 February 2008) Mr JT Mdeni (Chairperson appointed effective 23 February 2008) Ms NH Jaxa Mr TD Ntuli

1 0 2 2

Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of the PFMA and Treasury Regulations 27.1.7, 27.1.8 and 27.1.10 (b) and (c). The Audit Committee also reports that it has adopted appropriate, formal terms of reference such as its Audit Committee Charter, has regulated its affairs in the compliance with this charter and has discharged all its responsibilities as contained therein. The Audit Committee also familiarised itself with the Business Plan of the National Heritage Council in order to improve its understanding of the objectives and deliverables. The effectiveness of internal controls The system of controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. In line with the PFMA and the King II 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 controls and process. The system of internal control is effective and as would appear from the various reports of the Internal Auditors and the Audit Report on the Annual Financial Statements issued by the Auditor-General. No significant or material non-compliance with prescribed policies and procedures have been reported. Accordingly, we can report that the system of internal controls for the period under review was effective and adequate.

36

Annual Report

Preserving Our Heritage

Financial s

The quality of the year management and monthly / quarterly reports submitted in terms of the Act and the Division of Revenue Act. The Internal Audit function of the Council had been outsourced. The internal audit function performs a risk-based audit; they conducted a risk assessment in terms of Treasury Instruction 3.2.1 in the financial year 2007/2008. After risk assessment was conducted, the Internal Audit prepared a coverage plan based on its assessment of key areas of risk. The Accounting Officer who acted as the Accounting Authority as per delegation from the Minister of Arts and Culture before the Council was properly constituted approved the Internal Audit Plan and the Internal Auditors conducted the audit through out the financial year 2007/2008 in terms of the approved audit plan. The Committee is satisfied with the content and quality of the report prepared and issued by the Internal Audit Function. Evaluation of financial statements The Audit Committee has • Reviewed and discussed with the Auditor-General and the Accounting Officer the audited Annual Financial Statements to be included in the Annual Report; • Reviewed the Auditor General’s Audit Report; and The Audit Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

Mr Jack Thando Mdeni Chairperson of the Audit Committee 28 July 2008

37

National Heritage Council of South Africa

Corporate Governance Adherence to corporate governance requirements

tees: i.

Management Executive Committee;

ii. Heritage Committee; iii. Human Resources and Remuneration Com-

The NHC subscribes to the King II Report on Cor-

mittee; and

porate Governance, which is currently under review

iv. International Relations Committee

and will usher in the King III Report, a draft of which has not yet been released for public comment, and the Protocol on Corporate Governance in the Public

Council also ratified the appointment of the Audit

Sector 2002. By supporting the Code, the Council-

Committee and adopted the Audit Committee Char-

lors and employees of the NHC recognise the need

ter that had been approved by the CEO, acting as

to conduct the NHC’s affairs with integrity and in

Accounting Authority in terms of the Minister’s del-

accordance with generally accepted corporate prac-

egation to him contained in a letter dated 08 October, 2006, at the time when Council had not been

tices.

properly constituted. The NHC is classified as a Schedule 3A Public Entity,

Internal Control systems

which by law is required to prepare and submit Annual Financial Statements which incorporate a Corporate Governance report, and has been listed as a

The system of internal controls within the NHC dur-

Schedule 3A Public Entity by the Minister of Finance

ing the period under review has been satisfactory.

on the 28th May, 2005.The National Heritage Coun-

Informed by the matters of emphasis highlighted in

cil Act, 1999 (Act No. 11 of 1999) (the NHC Act), the

the previous year’s audit, with particular reference

Cultural Institutions Act, 1998 (Act 119 of 1998), the

to certain policies that still needed to be developed,

Public Finance Management Act 1 of 1999 (PFMA),

the executive management of the NHC ensured that

as amended, and the dictates of the King reports

policies that had been lacking were crafted and ap-

address the conformance of the NHC to the relevant

proved accordingly.

statutory and regulatory imperatives.

Remuneration of Council Members

To give effect to the NHC’s pursuit of good corporate governance principles, Council ensured the de-

Section 9 of the NHC Act makes provision for the

velopment of the following governance tools for the

NHC to reimburse Councillors for expenses incurred

committees established in the meeting held on 23

for services performed and also pay honoraria only

February, 2008:

to Councillors who are not in the full-time employment of the State. Payments of honoraria and travel claims for Councillors who attended Council meet-

a. Council Charter; b. Terms of Reference for the following Commit-

38

Annual Report

Preserving Our Heritage

Financial s

ings have been disclosed in the Annual Financial Internal Audit Function

Statements for the period ended 31 March, 2008 for accounting purposes.

Len Konar and Associates rendered internal audit

Audit Committee

services during the year under review. In line with the requirements of the PFMA and good corporate

The NHC had an Interim Audit Committee appointed

governance, internal auditors provided the Audit

by the CEO, acting as Accounting Authority, which

Committee and Executive Management with assur-

consisted of three (3) members with voting rights,

ance on the appropriateness and effectiveness of

these being the Chairperson, who was a non-exec-

internal controls in place. The internal audit func-

utive member of the Council, two (2) independent

tion provided the NHC with independent, objective

non-executives, the Chief Financial Officer, the Chief

appraisal and evaluation of risk and management

Executive Officer and the Company Secretary. The

thereof, evaluation of internal processes and con-

Committee’s duties, amongst others, included re-

trols systems, governance processes, as well as

viewing the financial statements prior to approval by

identification of corrective actions and suggested

the accounting authority. The Office of the Auditor

enhancements to controls and processes.

General had unrestricted access to the Audit Committee and is also represented on the Committee.

Nothing has come to the attention of the Accounting Authority, or to the attention of the Auditor-General,

The Committee had been responsible for improving

that indicates any material breakdown in the func-

management reporting by overseeing audit func-

tioning of the key internal controls, procedures and

tions, improving internal controls and the financial

systems during the year under review.

reporting process, which also includes the budgeting

Code of conduct and ethics

process. The Committee also took responsibility for recommending for Council approval the Annual Fi-

The NHC has adopted a single Code of Conduct and

nancial Statements (AFS). The Committee adopted the Audit Charter which has been formally adopted

Ethics for both its councillors and employees, who

by the Council.

at all times were required to maintain ethical standards in ensuring that the NHC’s business practices

In accordance with the dictates of the Audit Charter,

are conducted in a manner which is, in all reason-

which requires the Audit Committee to meet at least

able circumstances, above reproach. There have not

twice a year, two meetings were indeed held in the

been any reports of serious breaches of the ethics

year under review, namely during May and August,

by members as at the end of the financial year.

2007 respectively. To this end, the NHC complied with the Audit Charter.

39

National Heritage Council of South Africa

Occupational Health and Safety

Induction of new Councillors

The NHC complies with the minimum requirements

The Minister inaugurated all Councils of heritage in-

of occupational health and safety legislation. Coun-

stitutions in Cape Town on 4 April, 2007 and work-

cil did not see the value in setting up a separate

shops were held at least on three occasions to in-

health and safety committee, but assigned functions

duct them into their roles and responsibilities. The

related thereto to the Human Resources Manager. It

NHC also conducted its own induction workshops for

is noted that in the year under review no incidents

Council members during its meetings on 13 Sep-

resulting from non-adherence to health and safety

tember, 2007 and 22 February, 2008 respectively.

standards have been reported. Further, it is noted

Corporate policies

that the nature of NHC’s activities do not adversely expose the organisation and/or its employees to health and safety risks.

A number of operational policies were developed and consistently applied in the year under review.

Evaluation and performance A system to evaluate performance of Council has been implemented and during the year under review the Department of Arts and Culture facilitated and hosted training workshops with heritage institutions to evaluate Council’s performance.

40

Annual Report

Preserving Our Heritage

Financial s

Council Report Appointment of New Council

responsibility for the effective management of the NHC and the implementation of the strategy, policy and Council directives.

The new Council of the National Heritage Council was appointed effective 01 April, 2007 for a peri-

Composition of Committees of the Council

od of three years. The Minister of Arts and Culture and the MEC’s responsible for Arts and Culture are charged with the appointment of members in terms

In terms of Section 8 of the NHC Act, the Council

of section 5(1)(a) and (b) of the NHC Act respectively. Acting in terms of Section 5(1)(a), the Min-

has the discretion to establish committees to assist

ister appointed seven (7) members of the public to

it in the performance of its functions and, in addition

serve in the Council. Of the nine (9) MEC’s, only

to any members, it may appoint to such committees

four (Gauteng, Eastern Cape, Western Cape and

persons whom the Council considers competent or

Mpumalanga provinces) had appointed representa-

possess specific skills and expertise. Acting in terms

tives, whereas the remaining five (Kwa-Zulu Natal,

thereof, the Council resolved in its meeting held on

Northern Cape, Free State, North West and Limpopo

23 February, 2008 to establish the following Com-

provinces) had not made the required appointments

mittees:

during the year under review. a. Management Executive Committee;

The Council (Accounting Authority)

b. Audit Committee; c. Human Resources and Remuneration Committee;

The Council plays an oversight role to the executive by ensuring conformity with the strategic objectives

d. Heritage Committee; and

or plans, monitoring of operational performance and

e. International Relations Committee.

management, determination of policy and process-

Council and Committee meetings

es, to ensure the integrity of Council’s risk management and internal control systems. It is the highest decision-making body insofar as approval of poli-

In terms of section 7 of the National Heritage Coun-

cies, annual budget, strategy plan and appointment

cil Act, 1999 (Act No. 11 of 1999), the Council may

of the CEO are concerned. The role of the Chairper-

meet as often as it deems necessary, but at least

son of the Council in conjunction with the Council

twice a year. Furthermore, the Chairperson may at

is to determine the NHC’s strategic direction and to

any time convene a special meeting of the Council.

ensure that governing policies are formulated while

Owing to the delay in the appointment of provincial

the Chief Executive Officer has been delegated the

representatives, Council met only twice in the year

responsibility for the day-to-day management of the

under review. The first ever meeting of the new

affairs of the Council in terms of Section 11(1)(a)(i)

Council was held during September, 2007 and the

of the NHC Act. The Chief Executive Officer assumed

second during February, 2008, in conformity with the abovementioned Section 7(1) of the NHC Act.

41

National Heritage Council of South Africa

42

Annual Report

Preserving Our Heritage

Financial s

CONTENTS

PAGE

Statement of financial performance

45

Statement of financial position

46

Cash Flow Statement

47

Statement of Changes in Net Assets

48

Accounting Policies

49

Notes to the Annual Financial Statements

56

_________________ ________________ Adv S Mancotywa Ms T Ngetu 31 May 2008 31 May 2008

43

National Heritage Council of South Africa

Financial Report 1. Financial Report 1.1  Annual Financial Statements













The results of operations for the financial year ending 31 March 2008, as shown in the statement of financial performance, reflect, a net surplus of R 432 thousand.







The reported surplus includes payments to the value of R 5.5 million that relates to funded projects for the years ended 2005-2006 and 2006-2007 financial year.









The actual surplus for the current finacial year is R 5 909. This amount is committed to funded projects



approved in the current financial year.









The balance sheet shows reserves of R16.2m. These funds are fully committed to funded projects for 2006- 2008 financial years inclusively. Refer to note 23 in the notes to the financial statements for details thereof.





2. The organisation maintains internal controls and systems designed to provide reasonable assurance as to the integrity and reliability of the financial statements and to adequately safeguard, verify and maintain accountability for its assets. Such controls are based on established policies and procedures and are implemented with an appropriate segregation of duties.





3. Business Address









Physical Address:



57 Kasteel Road,







Domus Building,







Lynnwood Glen,







Pretoria







81









Postal Address:







P.O. Box 74097







Lynnwood Ridge







Pretoria



40









44

Annual Report





Preserving Our Heritage

Financial s

Statement of Financial Performance for the year ended 31 March 2008



2008

2007

Notes

R’000

R’000

2

36,670

26,673

1,621

1,106

210

5,081

38,501

32,860

4

6,751

6,442

Staff costs

5

6,224

5,772

Rentals

6

429

429

74

38

7

24,130

11,827

Depreciation

8.1

458

383

Amortisation

8.2

3

41

14

432

7,928

Income Government grants Interest received Other income

3

Less Expenditure Administrative expenses

Finance costs Other operating expenses

Surplus

45

National Heritage Council of South Africa

Statement Of Financial Position as at 31 March 2008 2008

2007

Notes

R’000

R’000

9

1,577

1,547

10

33

4

1,610

1,551

17,664

17,168

794

194

ASSETS Non-current assets Property, plant and equipment Intangible assets

Current assets Trade and other receivables

11

Prepayments and advances

12

66

42

Cash and cash equivalents

13

16,804

16,932

19,274

18,719

16,248

15,816

14

16,248

15,816

552

945

Non-current portion of finance lease obligation

15

487

815

Long-term portion deferred income

16

65

130

2,474

1,958

1,704

1,167

Total assets EQUITY AND LIABILITIES Capital and reserves Net Fund Non-current liabilities

Current liabilities Trade and other payables

17

Short- term portion of deferred income

16

65

65

Short -term portion of finance lease obligation

15

106

148

Provisions

18

599

578

19,274

18,719

Total equity and liabilities

46

Annual Report

Preserving Our Heritage

Financial s

Cash Flow Statement for the year ended 31 March 2008 2008

2007

R’000

R’000

36,073

31,754

-36,766

-24,357

-693

7,397

1,564

1,064

-629

-847

935

217

(Repayments)/Increase on finance lease obligations

-370

577

Net cash flows from financing activities

-370

577

Notes

Cash flow from operating activities Cash receipts from funder Cash paid to suppliers Net cash flows from operating activities

19

Cash flow from investing activities Interest received Additions to property, plant and equipment

9

Net cash outflows from investing activities Cash flow from financing activities

Net cash inflow for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

13

47

National Heritage Council of South Africa

-128

8,191

16,932

8,741

16,804

16,932

Statement of Changes in Net Assets for the year ended 31 March 2008 Notes

2008

2007

R’000

R’000

At the beginning of year

15,816

7,998

Net surplus for the year

432

7,928

Accumulated Fund

Prior year adjustment-reinstatement of prior year depreciation Net fund at the end of the year

-

-110

16,248

The reserves relate to committed projects and programs at year end. Refer to note 23.

48

Annual Report

15,816

Preserving Our Heritage

Financial s

Accounting Policies for the year ended 31 March 2008



Accounting Policies

The following are the principal accounting policies of the Board, which are, in all material respects, consistent with those applied in the previous year. The historical cost convention has been used, except where indicated otherwise. Management has used assessments and estimates in preparing the annual financial statements – these are based on the best information available at the time of preparation. The financial statements have been prepared on a going concern basis.



The principal accounting policies adopted in the preparation of these financial statements are set out below:





1.1

Basis of preparation







The financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practice(GAAP) including any interpretations of such statements issued by the Accounting Practices Board, with the prescribed Standards of Generally Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board replacing the equivalent GAAP Statement as follows:



Standard of GRAP

Replaced Statement of GAAP

GRAP1: Presentation of financial statements

AC101: Presentation of financial statements

GRAP2: Cash flow statements

AC118: Cash flow statements

GRAP3: Accounting policies, changes in account- AC103: Accounting policies, changes in ing estimates and errors

accounting estimates and errors

49

National Heritage Council of South Africa







Terminology differences:



Standard of GRAP

Replaced statement of GAAP

Statement of financial performance

Income statement

Statement of financial position

Balance sheet

Statement of changes in net assets

Statement of changes in equity

Net assets

Equity

Surplus/deficit for the period

Profit/loss for the period

Accumulated surplus/deficit

Retained earnings

Contributions from owners

Share capital

Distribution to owners

Dividends

Reporting date

Balance sheet date



The cash flow statement can be only be prepared in accordance with the direct method.







Specific information such as :





(a)   receivables from non-exchange transactions, including taxes and transfers; (b)   taxes and transfers payable; (c)   trade and other payables from non-exchange transactions; must be presented separately on the statement of financial position





The amount and nature of any restrictions on cash balances is required to be disclosed. Paragraph 11-15 of GRAP 1 has not been implemented as the budget reporting standard is in the process of being developed by the international and local standard setters. Although the inclusion of budget information would enhance the usefulness of the financial statements, non-disclosure will not affect fair presentation.







Presentation currency







All amounts have been presented in the currency of South African Rand which is the functional currency of the Council.

50

Annual Report

Preserving Our Heritage

Financial s





1.2

Property, plant and equipment and depreciation







Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is charged to surplus or deficit on a systematic basis over the expected useful lives of the assets, after taking into account the residual values of those assets.







Depreciation







Depreciation is calculated on the straight-line method to write off the cost of assets to their residual values over their estimated useful lives.







The estimated useful lives of the main asset categories are as follows:







Motor Vehicles



Computer Equipment



Furniture and Fittings

6 years (16.67%)



Leased assets and improvements Lease term (5 years)/amortised over the















5 years (20%)













3 years (33.33%)

Office Equipment

6 years (16.67%)

period of the lease





Useful lives and residual values are assessed on an annual basis.



Assets are assessed at each reporting date for any indication of impairment. Impairment losses are determined as the excess of the carrying amount of items of property, plant and equipment over the recoverable amount and are charged to surplus or deficit.



Subsequent expenditure incurred on items of property, plant and equipment is only capitalised to the extent that such expenditure enhances the value or previous capacity of those assets. Repairs and maintenance not deemed to enhance the economic benefits or service potential of items of property, plant and equipment are expensed as incurred.





1.3

Intangible assets







Intangible assets, comprising computer software, are stated at cost and are amortised over their estimated useful lives





51

National Heritage Council of South Africa



The estimated useful lives of the intangible assets are as follows:







Intangible Assets 2 years (50%)





1.4

Lease obligations







Assets held under finance leases are recognised as assets of the group at their fair value at the date of acquisition. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Finance costs, which represent the difference between the total leasing commitments and fair value of the assets required, are charged to the income statement over the term of the relevant lease so as to produce a constant periodic rate of interest on the remaining balance of the obligations for each of the accounting period.







Rentals payable under operating leases are charged to surplus or deficit on a straight-line basis over the term of the lease.





1.5

Financial Instruments







For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand and deposits held on call and investments in money market instruments in the bank.







Initial recognition and measurement



Financial instruments are initially recognised when the Council becomes a party to the contractual provisions of the relevant instrument, and are initially measured at fair value. Subsequent to initial recognition, these instruments are measured as set out below.







Receivables



Receivables are stated at amortised cost, which, due to their short term nature, closely approximate their fair value.







Cash and cash equivalents



Cash and cash equivalents are stated at amortised cost, which, due to their short term nature, closely approximate their fair value.



Cash and cash equivalents comprise cash at bank and deposits held on call with banks.







Trade payables



Payables are stated at amortised cost, which, due to their short term nature, closely approximate their fair value.

52

Annual Report

Preserving Our Heritage

Financial s







Offsetting



Financial assets and financial liabilities have not been offset in the Statement of Financial Position.



Other receivables



Other receivables consist of prepaid expenses and deposits relating to the provision of electricity and



the leasing of premises. These receivables are stated as cost.



1.6

Revenue recognition







Revenue comprises the fair value of considerations received or receivable in the ordinary course of the Council’s business. Revenue is also recognised as follows:







a)     Government grants- as stated in note 1.7



b)    Interest income







Interest income is recognised in the income statement on a time proportionate basis using the effective interest rate method.





1.7

Government grants







Government grants are recognised when there is reasonable assurance that the enterprise will comply with the conditions attached to the grant and the grant will be received. Government grants received relating to income are recognised as income over the periods necessary to match the related costs which they are intended to compensate.







Government grants received relating to assets are deducted in arriving at the carrying amount of the assets.







Grants for depreciable assets







Grants in respect of certain depreciable assets are allocated to income over the period of, and in proportion to, the depreciation written off against such assets. The balance of the grants not recognised in the income statement is disclosed as deferred income.





1.8

Retirement benefits







Pensions re provided for employees by means of a defined contribution provident fund externally ad-

53

National Heritage Council of South Africa

ministered by Liberty life.The defined contribution provident fund is governed by the Pension Funds Act, 1956. Contributions to the fund are expensed to the income statement under the line of the staff costs in the year they are incurred.



1.9

Provisions







Provisions are recognised when the Council has a present legal or constructive obligation as a result of past events for which, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. All the provisions of the Council are short-term in nature and thus ignore the effect of discounting.







Provision for leave pay and bonus







Employee entitlements to annual leave are recognised when they accrue to employees.







The provision for leave pay represents the present obligation to employees as a result of employees services provided to the balance sheet date. The provision is measured as the amount that is expected to be paid as a result of the unused leave entitlement that has accumulated at the balance sheet date.







The provision for bonus is measured as an equivalent of monthly salary linked to the performance of the individual employees.





1.10 Judgements made by Management

Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the report amounts and related disclosures. Actual amounts could differ from these estimates.





1.11 Comparative figures





The comparative figures shown in these financial statements are limited to the figures shown in the previous years’ audited financial statements and such other comparatives figures that the National Heritage Council may reasonable have available for reporting in terms of the Public Finance Management Act.

54

Annual Report

Preserving Our Heritage

Financial s





1.12 Taxation



The National Heritage Council is exempt from taxation in terms of Section 10 (1) (cA) (i) of the Income Tax Act.





1.13 Operating leases

Rentals payable under operating leases are charged to income statement on a straight line basis over the terms of the relevant lease.





1.14 Commitments





Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in note 23 and disclosure notes to the financial statements.





1.15 Services received in-kind





Services received in-kind consist primarily of technical assistance received by the Council and project group members. The Council cannot reliably determine a fair value for this assistance, and as a result does not recognise the value of these services received in the Statement of Financial Performance.





55

National Heritage Council of South Africa

NOTES TO THE ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2008

2.

Government Grants



Grants received

2008

2007

R’000

R’000

36,670

26,673

36,670

26,673

3.

Other income



Sundry income

2



Grants received- special heritage

-



programmes



Profit on assets written off



Amortised amounts for grants received



as assets

143

16 5,000 -

65

65

210

5081

4. Administrative Expenses

General and administrative expenses

5,413

4,814



Travel and subsistence

1,338

1,628

6,751

6,442

56

Annual Report

Preserving Our Heritage

Financial s

5.

2008

2007

R’000

R’000

5,021

4,589

Staff costs



Basic Salaries



Council Contributions

874

773



Unemployment Insurance Fund

19

18



Skills Development Levy

24

22



Provident Fund

831

733



Leave and Bonus Provision

329

410

6,224

5,772

429

429

429

429

255

193

23,788

11,539

4

-

6. Rental

Rental for office space

7. Other Operating expenses

Staff training and development



Heritage



projects and programmes



Legal fees



Maintenance, repairs and running costs

39

17



Entertainment expenses

44

78

24,130

11,827

57

National Heritage Council of South Africa

8.

2008

2007

R’000

R’000

Depreciation and amortisation

8.1 Depreciation

- Motor Vehicles

28

28



- Computer Equipment

68

90



- Office Equipment

34

30



- Furniture and Fittings

128

108



- Leasehold Improvement



- Leased assets

50

4

150

123

458

383

3

41

3

41

8.2 Amortisation

- Computer software

58

Annual Report

Preserving Our Heritage

Financial s

Total

mprovements

Leasehold

Fittings

Furniture &

Equipment

Office

Leased assets

Equipment

Vehicles

Computer

Property, plant and equipment

Motor

9.

R’000

R’000

R’000

R’000

R’000

R’000

R’000

80

91

796

110

390

80

1,547

66

298

133

Year ended 31 March 2008 Opening net book amount Additions

132

Disposals

-141

629

-

-141

-50

-458

52

155

505

142

560

163

1,577

R’000

R’000

R’000

R’000

Total

& Fittings

Furniture

Office

Leased

Computer

Vehicles

R’000

rovements

-128

Leasehold

-34

Equipment

-150

assets

-68

Closing net book amount

Motor

-

-28

Equipment

Depreciation

-

R’000

R’000

At 31 March 2008 Cost

142

443

688

244

960

Accumulated Depreciation

-90

-288

-183

-102

Closing net book amount

52

155

505

142

59

National Heritage Council of South Africa

217

2,694

-400

-54

-1,117

560

163

1,577

R’000

R’000

R’000

R’000

238

124

231

140

480

57

688

Total

Improvements

Leasehold

Fittings

Furniture &

Equipment

Office

Leased assets

Equipment

Computer

Motor Vehicles R’000

R’000

R’000

Year ended 31 March 2007 Opening net book amount Additions

1,213

84

847

-130 -108

-4

-383

80

91

796

110

390

80

1,547

Total

Fittings

Equipment

Office

Computer

Improvements

-30

Leasehold

-123

Furniture &

-90

Motor Vehicles

Closing net book amount

-28

Leased assets

Depreciation

-130

Equipment

Disposals

-

18

R’000

R’000

R’000

R’000

R’000

R’000

R’000

Cost

142

311

1073

178

662

84

2,450

Accumulated Depreciation

-62

-220

-277

-68

-272

-4

-903

Closing net book amount

80

91

796

110

390

80

1,547

At 31 March 2007

The NHC received non monetary grants in respect of depreciable assets which are allocated to the income over the period of depreciation, refer to note 14.

60

Annual Report

Preserving Our Heritage

Financial s

10.

2008

2007

R’000

R’000

Intangible assets Computer Software R’000



Year ended 31 March 2008



Opening net book amount



Additions



Disposals



Amortisation

-3



Closing net book amount

33



At 31 March 2008



Cost



Accumulated Amortisation



Closing net book amount



Year ended 31 March 2007



Opening net book amount



Additions



Amortisation



Closing net book amount



At 31 March 2007



Cost



Accumulated Amortisation



Closing net book amount

4 32 -

196 -163 33

42 2 -40 4

164 -160 4

61

National Heritage Council of South Africa

2008

2007

R’000

R’000

632

80

11. Trade and other receivables

Sundry Debtors



Staff Debtors



Interest receivable

12.

24

-

138

114

794

194

Prepayments and Advances



Prepayments and Advances

24

-



Deposit for rent

42

42

66

42

531

4,741

16,271

12,190

2

1

16,804

16,932

15,816

7,998

432

7,928

13.

Cash and cash equivalents



Cash at bank



Funds held on call



Cash on hand

Refer to Note 26 on Financial Instruments on how risk is managed in relation to the financial assets listed above. 14.

Capital and Reserves



Opening Net Fund



Surplus for the year



Prior Year Error

-110 16,248

62

Annual Report

15,816

Preserving Our Heritage

Financial s

15.

2008

2007

R’000

R’000

Finance lease agreement

Reconciliation between the total of minimum lease payments and the present value.

Year ended 31 March 2008



Up to 1 year



Future minimum lease payments

165

245



Finance cost

-59

-97



Present value

106

148



1 to 5 years



Future minimum lease payments

568

983



Finance cost

-81

-168



Present value

487

815



Analysed for financial reporting purposes



Current portion of finance lease obligation

106

148



Long-term portion of finance lease obligation

487

815



Net finance lease liability

593

963

63

National Heritage Council of South Africa

2008

2007

R’000

R’000

The NHC entered into a rental operational agreement with ITEC Finance Limited for two photocopy machines effective 1 December 2006. The contract period is for 60 months at R136,800.00 per annum using a 15% escalation rate. Additional finance cost are charged by the lessor which are based on the prime rate. Thus attracting additional finance costs which is not included in the above reconciliation. The lease is accounted for as finance lease since the lease term is for the major part of the economic life of the assets, even though the title to the asset may not be transferred on expiry of the lease term. 16.

Deferred income



Government grants received to be



recognised in the future accounting periods



Opening balance

195

760



Less: allocated to income statement

-65

-5,065



Grants received in the current year

-

4,500

130

195



Analysed for financial reporting



Current portion of the deferred income

65

65



Long term portion of the deferred income

65

130

-Furniture bought on behalf of the National Heritage Council by the National Department of Arts and Culture amounting to R390 475.

64

Annual Report

Preserving Our Heritage

Financial s

2008

2007

R’000

R’000

1,118

908

85

105

17.

Trade and other payables



Sundry Accruals



Accrued rent



Trade Payables

292



Salary related payables

209

154



PAYE

102

83



Medical Aid

1

-



UIF

4

3



Garnishee

1

-



Skills development levy

4

3

-



Provident fund

87

65



Other Creditors

10

-

1,704

1,167

- Carrying amount at the beginning of the period

228

188

- Additional provision made in the period, including

275

229

-39

-20

-189

-169

275

228

18.

Provisions

18.1

Leave provision

increases to the existing provisions -Amounts used (i.e. incurred and charged against the provision) during the period - Unused amounts reversed during the period

65

National Heritage Council of South Africa

2008

2007

R’000

R’000

- Carrying amount at the beginning of the period

350

160

- Additional provision made in the period, including

324

350

-270

-160

-80

-

324

350

599

578

18.2

Bonus provision

increases to the existing provisions -Amounts used (i.e. incurred and charged against the provision) during the period - Unused amounts reversed during the period

Total Provisions

19.

Reconciliation of profit/(loss) before taxation to cash generated from/(utilised in) operations



Profit before taxation



Adjusted for :



Depreciation on property, plant and

432

7928

458

383

3

41



equipment



Amortisation on intangible assets



Assets written off

-143

130

-1,621

-1106

329

204



Interest received



Provisions for leave and bonus



Prior year adjustment



Deferred income



Operating cash flows before working



capital changes



Working capital changes

-

66

Annual Report

-3

-65

-565

-607

7012

-86

385

Preserving Our Heritage

Financial s

2008

2007

R’000

R’000

-623

415



Decrease/(increase) in receivables



(Decrease)/Increase in payables

537

-30



Cash generated from operations

-693

7,397

20.

Operating leases



Reconciliation between the total of



minimum lease payments and the



present value.



Up to one year

429

429



Later than 1 year and not later than 5 years

429

857



Total value of lease liabilities

858

1,286

NHC entered into a rental agreement with Broll Property Group, effective 1 April 2005. The lease contract is for 60 months at a cost of R 428 839 per annum. 21. 21.1

Prior year adjustment Long term liability

Correction of error relating to understatement and non recognition of finance lease liability. The opening balance of equity at the beginning of 2007 was adjusted while the comparative amounts were restated accordingly. The effect of the adjustment of this error on the results of 2007 was as follows:

Effect in 2007



Increase the depreciation expense



Decrease in accumulated surplus

53 110

67

National Heritage Council of South Africa



Increase the accumulated depreciation



Increase the Leased assets



Increase the finance lease liability



Increase in finance cost

21.2

Trade and Other Payables

2008

2007

R’000

R’000 -163 688 -688 37

Correction of error relating to overstatement expenses and trade and other payables. The net surplus of 2007 was adjusted while the comparative amounts were restated accordingly. The effect of the adjustment of this error on the results of 2007 was as follows:

Decrease in expenses

-105



Decrease in payables

105

21.3

Leasehold improvement

The leasehold improvement were depreciated over 5 years instead of the remaining lease term. Correction of error relating to understatement of accumulated depreciation. The comparative amounts were restated accordingly. The effect of the adjustment of this error on the results of 2007 was as follows:

Effect in 2007



Increase the depreciation expense



Increase the accumulated depreciation

22.

Change in accounting policy

2 -2

68

Annual Report

Preserving Our Heritage

Financial s

2008

2007

R’000

R’000

The company changed its accounting policy in respect of operating lease payments with fixed rental increases. Where the actual operating lease payments were previously recognised as an expense, the operating lease payments are now recognised according to the straight-line method over the lease period. This is done to comply with the requirements of Circular 7/2005. The change in policy has been accounted for retrospectively and comparative amounts have been appropriately restated . The effect of the change in accounting policy is as follows :

Increase in operating lease



Increase in operating provision

-105

23.

Commitments



Tenders awarded but not yet paid



Projects approved but not yet disbursed

105

69

National Heritage Council of South Africa

5,044

6,615

11,779

11,412

16,823

18,027







for the year ending 31 March 2008









S. Mancotywa









Total

Provident Fund

Bonuses

Performance

512,069

150,180

44,254

116,868

823,372

01-Apr-07

415,731

121,930

33,815

94,881

666,357

T.Ngetu

CFO 01-Apr-06

358,065

111,507

24,611

82,866

577,048

T. Ramagoma

CS

01-Apr-07

352,951

103,517

28,709

80,553

565,729

D.Goulkan

MM

01-Apr-07

352,951

103,517

28,709

80,553

565,729

B. Marolen

HR

01-Apr-07

456,458

21,531

80,551

558,540

S Ndhlazi

FM

01-Apr-07

352,951

103,517

28,709

80,553

565,729

T. Manesti

HM

01-Dec-07

117,647

34,506

0

26,850

179,003

2,918,822

728,672

210,337

643,676

4,501,508

S. Fikeni

TOTAL

CEO 01-Apr-07





Car allowances

Basic Salary

Effective date

Designation

Management

Council Members and Executive Management remuneration

Executive

24.

COO

-

70

Annual Report

Preserving Our Heritage

Financial s

Council Member

Honoraria

Travel

Total

Designation

P.N Maqubela

1,560

1,026

2,586

Chairperson

R.M.D Ralebipi-Simela

1,195

2,445

3,640

Deputy Chairperson

26

C.S Rassool

1,390

L. Callinicos

1,390

K.T Ntsewa

1,390

L.P Nkosi

- 707

-

P.Seboni G.P Mapalala

1,416

Council member

1,390

Council member

2,097

Council member

-

-

Council member

695

523

1,218

Council member

1,390

459

1,849

Council member

M. Maboe

-

-

Council member

Z. Mkiva

695

695

Council member

J. Mdeni

1,390

1,390

Audit committee

T.D Ntuli

2,406

324

2,730

Audit committee

N. Jaxa

2,406

426

2,832

Audit committee

- 21,846







allowances



Car



Salary

Effective date

Designation

Management

Executive







Bonuses





Performance



for the year ending 31 March 2007

Basic

Council Members and Executive Management remuneration





Total

5,939

Fund

15,907

Provident

TOTAL

S. Mancotywa

CEO

01-Apr-05

470,578

150,184

40,049

109,546

770,357

S. Fikeni

COO

01-Apr-05

382,046

121,930

32,514

88,937

625,427

T. Ngetu

CFO

01-Jun-06

292,044

86,630

-

58,630

437,304

T. Ramagoma

CS

01-Apr-05

324,353

103,517

27,604

75,506

530,980

D, Goulkan

MM

01-Apr-05

324,353

103,517

27,604

75,506

530,980

B. Marolen

HR

01-Apr-05

427,860

27,603

75,506

530,969

S Ndhlazi

FM

01-Jun-05

324,353

103,517

23,003

75,506

526,379

2,545,587

669,295

178,377

559,137

3,952,396

TOTAL

-

71

National Heritage Council of South Africa

Council Member

Honoraria

Travel

Total

Designation

L Callinicos

6,500

526

7,026

Chairperson

R Ralebipi

5,500

10,485

15,985

Deputy Chairperson: Chairperson of Audit Committee

Y Seleti

500

-

500

Council member

A.M Ramphele

1,000

-

1,000

Council member

S. Mapalala

2,000

-

2,000

Council member

S. Welz

500

Council member

S. Ridge

1,000

500

152

-

1,152

Council member

S. Ndlovu

1,000

265

1,265

Council member

M. Van Heerden

1,000

152

1,152

Council member

L. Mathenjwa

500

481

981

Council member

T.P Makgopo

500

500

Council member

1,584

Council member

L.J.S Changuion

-

1,000

584

J. Wells

3,000

1,545

4,545

Council member

I. Kambula

2,000

72

2,072

Council member

E. Van Harte

4,500

3,267

7,767

Council member

E. Dikotla

1,000

892

1,892

Council member

D. Offringa

3,500

189

3,689

Council member

C.Soudien

1,000

1,000

Council member

A.E Duffey

1,500

1,891

Council member

- 391

H.N Jaxa

3,609

877

4,486

Audit committee

T.D Ntuli

2,406

183

2,589

Audit committee

43,515

20,061

63,576

72

Annual Report

Preserving Our Heritage

Financial s

25.

2007

2007

R

R

36,670

26,673

Related Party



Operational grants received



Grants received for special projects

- 36,670



5,000 31,673



The National Heritage Council is a schedule 3A public entity under the National Department of Arts and Culture. The Department of Arts and Culture acts on behalf of the Minister of Arts and Culture as Executive Authority and has the responsibility to make provision for funding the activities of the Board by way of a grant listed in the Estimates of National Expenditure. The National Heritage Council received R36,670,000-00 as grants for the year under review. By virtue of the fact that the National Heritage Council is a national public entity and controlled by the national government any other controlled entity of the national government is a related party. All transactions with such entities are at arm’s length and on normal commercial terms, except where employees of national departments or national public entities participate in our processes and do not receive any remuneration. The National Department of Arts and Culture is the only related party of the National Heritage Council. There were no other related party transactions other than the transfer of grants.



26.

Financial instruments





Financial instruments consist of receivables, cash and cash equivalents and payables. All financial assets are categorised as loans and receivables and all payables as financial liabilities at amortised cost. The total carrying values of the various categories of financial assets and financial liabilities at the reporting date are as follows:



Loans and receivables

860

236

Receivables

860

236

Cash and cash equivalents

16,804

16,932

Cash and cash equivalents

16,804

16,932

Financial liabilities at amortised cost

1,704

1,167

Trade payables

1,704

1,167

73

National Heritage Council of South Africa





Credit risk



Receivables



The receivables are not exposed to any credit risk and no amounts are overdue. Cash and cash equivalents





Cash and deposits are held with an AA rated registered banking institution and are regarded as having insignificant credit risk.





Liquidity risk Trade payables The Council is only exposed to liquidity risk with regards to the payment of its trade payables. These trade payables are all due within the short term. The Council manages its liquidity risk by holding sufficient cash in its bank account, supplemented by cash available in a money market account.

74

Annual Report