PACOFS

PACOFS Turnaround Strategy Plan 2015/16

Introduction PART A

TABLE OF CONTENTS

1. INTRODUCTION • On the 25 November 2014, the Portfolio Committee (PC) visited the PACOFS in the Free State. • The purpose of the visit was due to the unqualified Audit Outcome by the AG. • The Committee needed to satisfy itself with the current situation of the entity and to find out how it can be of assistance to improve the current status quo. • During the visit, the Committee held first engagements with the staff thereafter, the Management and the Council to deliberate on all the issues. 1

2.PROBLEM STATEMENT • The Committee concluded that the entity is in a crisis situation and a turnaround plan needs to be submitted by the Department of Arts and Culture on how the situation can be changed. • The performance of the entity is disappointing and the Management has no sense of commitment and dedication to perform on the duties they are entrusted with. It is clear that there is lack of capacity in the management of the entity • The situation at the entity should change as a matter of urgency and DAC should ensure that there is a programme which articulates clearly how all the issues raised are going to be resolved. • The Programme/Turnaround Plan should reach Parliament on the 1st of December 2014. • On the first week of opening of Parliament next year, the Portfolio Committee will visit the entity to do an oversight and monitor progress. 2

3. SITUATIONAL ANALYSIS • The old Council term expired 30 September 2014 and current Council was appointed on 1 December 2014. • The relationship between Management and Nehawu was getting worse in such a way that performance of the entity was evidently low. • Handing Over Report by previous Council tabled to current Council did not highlight the hostile situation in PACOFS. • The current Council had to intervene between Management and Nehawu in order to bring situation under control. • A walk through to each department was carried out to each department in order to understand the underlining burning factors causing the unrest. 3 of 4

SITUATIONAL ANALYSIS - Cont. • AG Report July 2014 – Conveyed unqualified Opinion, management report with emphasis of matters: • Going concern – net loss of R6 007 532 • Irregular expenditure - R34 158 730 • Fruitless and wasteful expenditure - R2 408 661 • Predetermined objectives: • targets were not reliable because AGwas unable to obtain sufficient appropriate audit evidence for 37% of the targets • 11% of the targets were not valid, accurate and complete when compared to the source information or evidence provided • The Performance targets must be measurable. AGcould not measure the required performance for 67% of the targets 4 of 4

4. TURNAROUND PLAN • New Council – observations highlighted institutional failure • Organizational instability, failure to improve audit findings, lack of leadership and management, lack of knowledge and understanding on management corporate governance. • Great tension between Management and Nehawu due to old issues that have caused instability at PACOFS. • Non compliance on SCM process resulting into irregular , Fruitless and Wasteful expenditure. • Resistance by Management to work hand in hand with Union for the betterment of PACOFS • Condone the long outstanding irregular expenditure 5 of 10

TURNAROUND PLAN - CONT • The Vision and Mission of the institution has been revised in line with the current obtaining strategic imperative of the organisation • New values adopted– incorporated Ubuntu and service excellency in order to invest in people • Realignment of strategic goal to goal 14 of the DAC. 6 of 10

TURNAROUND PLAN - CONT • Alignment of performance plans (targets, indicators -performance to DAC standardize baseline KPI • Staff Moral Improvement Plan- 21 August 2015- Suggestion box with ideas to improve moral and bring revenue • Management and staff teambuilding and interaction session and provide greater attention -yielded positive results (staff opening up on their concerns, suggestion boxes, teamwork encouragement to break silos, open discussion collective decision-making and resolving problems through staff meetings and collective participation) 7 of 10

TURNAROUND PLAN - CONT • Organizational structure re-organised, incorporated posts inside the organizational structure • HR Plan- submission of employee performance agreement, • Management will be part of Artistic program plan and their inputs will be considered • Inculcate the spirit of Ubuntu and value proposition in programme development 8 of 10

TURNAROUND PLAN - CONT • Governance Improvement Plan – promotion of good governance to improve the administration • Continued enhancement of Batho Pele Principles, reflections on purpose of serving communities (rural communities) – integration with other govt. programmes • Audit Improvement Plan – Appointment of internal audit firm preferably local with broad experience in public sector especial public entities 9 of 10

TURNAROUND PLAN - CONT • Evaluate the improvement of PACOFS financial performance through Audit and Council financial Sub-committee oversight • Improve financial accountability- consequent management • Improved audit outcome from unqualified Opinion to clean audit 10 of 10

5. RECOMMENDATIONS • More future engagements with staff – August 2015 Workshop to address issues of restructuring and policy reviews • Draft organisational structure for entire entity • Constitute workplace forum made up of all stakeholders • Increase the institutional capacity- training and development, partnership, skills development and talent management, recruitment and retaining skills and conducting exit interviews to plug in skills haemorrhage • Endeavours to continue improving efficiency and competency- refocus on performance outcomes, impact and value for money • Critical is improvement of financial management and Audit Outcomes • Strengthen consequent management 11

Response/Updates and Timelines PART B

TABLE OF CONTENTS

TABLE OF CONTENTS - Cont.

BACKGROUND • Portfolio Committee visited the Performing Arts Centre of The Free State (PACOFS) on 25 November 2014 • The reason for the visit was due to instability of the institution, as the result of conflict between management and UNION • It was also aimed at seeking ways to improve the situation in the PACOFS 1

OBSERVATIONS BY PORTFOLIO COMMITTE • PACOFS was heading to serious crisis situation • Turn around plan was needed • DAC should develop a programme to resolve the issues raised • The intervention plan by DAC should reach parliament by 1 December 2014 2

OBJECTIVES OF THE TURN AROUND STARTEGY • To address governance short comings • To foster an inclusive and conducive working environment • To improve the PACOFS audit outcome • To improve working relationship between Management and Nehawu • Improve low staff moral • Close capacity gap • Develop policies and procedures and implement with immediate effect. 3

MILESTONES TO BE ACHIEVED • Improvement of staff moral • Draft organisational structure, cost, approve by Council and implement • To the spirit of Ubuntu – carrying towards the fellow employee • Create conducive working relationship between management and Nehawu • Improve staff management • Improve Corporate Governance 4

ISSUES RAISED • There following issues were raised in November 2014 and that the PACOFS management and NEHAWU were expected by the Portfolio Committee 5

VISION 6

MISSION 7 7

VALUES 8

ISSUES RAISED & TIMELINES 1

ISSUES RAISED & TIMELINES 1 of 2

AS PER STRATEGY PERFORMING ARTS CENTRE OF THE FREE STATE PACOFS COUNCIL AUDIT & RISK COMMITTE ARTISTIC COMMITTEE HUMAN RESOURCE COMMITTE FINANCE COMMITTE CHIEF EXECUTIVE OFFICER ARTISTIC DIRECTOR CHIEF FINANCIAL OFFICER CORPORATE SERVICES DIRECTOR 2 of 3

AS PER STRATEGY PERFORMING ARTS CENTRE OF THE FREE STATE CHIEF EXECUTIVE OFFICER CORPORATE SERVICES DIRECTOR ARTISTIC DIRECTOR CHIEF FINANCIAL OFFICER FINANCE DEPARTMENT PRODUCTIONS (PRODUCING) INTERNAL AUDIT SCM DEPARTMENT DEVELOPMENT HUMAN RESOURCES MARKETING MAINTENANCE DEPARTMENT TECHNICAL THEATRE 2 of 3

PACOFS

PACOFS

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