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.
2
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
12
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
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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.
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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.
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Annual Report
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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.
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Annual Report
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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.
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Annual Report
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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.
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Annual Report
