INTERGRATED PRESENTATION 2015-2019 STRATEGIC PLAN AND 2015/16 ANNUAL PERFORMANCE PLAN

1. INTERGRATED PRESENTATION2015-2019 STRATEGIC PLAN AND 2015/16 ANNUAL PERFORMANCE PLAN

2. PRESENTATION OUTLINE • Discription of the strategic planning process • Strategic posture • Mandate of DAC • Policy context of DAC plans • Alignment with NDP • Alignment with 2014-2019 MTSF • Overview of departmental performance • Organisational performance • Policy priorities • Strategic response of DAC and the sector • Linking goals to MTSF • Goals, strategic objectives and programmes • Indicators and targets • DAC specific outcome 14 indicators and tagets • ENE indicators and targets • Sector indicators

3. DESCRIPTION OF THE STRATEGIC PLANNING PROCESS • DAC engaged in an extensive consultative process as part of the process to develop the SP and APP • Consultations with the sector included engagements that took place with the Heritage Sector in Durban and with the Arts and Culture Sector in Cape Town last year • The DAC Sector-wide Strategic Planning Retreat took place at Birchwood. Present there were the C/person and Dep. C/person of the PC, CEOs of Entities, Provincial Departments of Arts and Culture and DAC Management • The first draft was submitted to the Presidency and National Treasury at the end of August as per requirement • Further refinements and engagements with DDGs and their Teams as well as CEOs took place between September and October in preparation for the second drafts of the documents • The Act. Director-general presented the strategic overview to the PC on the 11/11/14 • The second drafts of the Strategic Plan and APP were submitted on time to the Presidency and National Treasury as per requirement • Final strategic plan and annual performance plan were submitted to the Presidency on the 27/02/15 as per compliance timeframes

4. THE STRATEGIC POSTURE • The strategic posture is made up of the vision, mission, values and strategic outcome oriented goals • The strategic posture in the drafts Strategic Plan and Annual Performance Plan was arrived at through taking into account Minister’s consistent messages during the Budget Speech and in strategy meetings with management. These messages include the following: • That as DAC we exist to lead nation building through rigorous social cohesion programme • That we exist to preserve, protect, promote and develop South African arts, culture and heritage • That we should use resources effectively and be able to do more with less. This speaks stongly to effective governance systems and effective and efficient utilisation of financial and human resources that we have • That we should have an effective oversight and monitoring of Public Entities • That by taking into account the above, economic spin-offs (e.g. job creation, youth empowerment, BBBEE) would happen and we should have effective monitoring mechanism to ensure that economic spin-offs take place in appropriate areas of our society

5. STRATEGIC POSTURE • Having taken into account Minister’s Marching orders, leadership and guidance. And… • Having ensured that all strategic planning engagements and consultation with stakeholders are centred around Minister’s guidance…., • The strategic planning process, in its entirety came up with the following strategic posture: VISION: A dynamic, vibrant and transformed Arts, Culture and Heritage Sector, leading nation building through social cohesion and socio-economic inclusion MISSION: To create an enabling environment in which the ACH Sector can flourish and play a significant role in nation building and socio-economic development, by: • Preserving, protecting and promoting cultural, heritage and linguistic diversity and legacy of South Africa; • Leading nation building and societal transformation through social cohesion; • Enhancing records management structures and systems and promoting access to information; • Providing leadership to the ACH Sector so as to accelerate its transformation.

6. STRATEGIC POSTURE VALUES: • Patriotism:as loyal PATRIOTS we passionately serve South Africa and its people to build a nation • Ubuntu: CARE and concern for the wellbeing of our staff, customers and stakeholders is the foundation of our success • Innovation:in everything we do, we strive for INNOVATIVE approaches • Integrity:in our day-to-day activities, our INTEGRITY shines through • Professionalism: together we act PROFESSIONALLY to deliver value to the economy of SA, its people and ourselves. • Accountability:we are ACCOUNTABLE to the people of SA in our pledge to provide them with high-quality services STRATEGIC OUTCOME ORIENTED GOALS: • A transformed, coherent and development focussed ACH Sector- To drive greater policy and planning coherence in the Sector towards the achievement of sectoral development outcomes • Nation building through effective social cohesion programme implementation- To lead nation building and societal transformation through effective social cohesion programmes that promotes cultural and linguistic diversity • A productive, diverse and inclusive ACH Sector - To protect, preserve, promote and develop Arts, Culture and Heritage and advance the socio-economic inclusivity and contribution of the Sector; • Sound fiscal management and a sustainable ACH Sector - To forge sound governance and fiscal management policies, systems and processes that enhances the capacity of the DAC and its entities to ensure the effective and efficient utilisation and leveraging of ACH resources for the benefit of all South Africans • A professional and capacitated ACH Sector - To build the skills and capacity of the Sector to ensure its ongoing development and responsiveness

7. MANDATE OF DAC • The Constitution of the Republic of South Africa, 1996, including the Preamble and Founding Provisions, enjoins the DAC to lead nation-building and social cohesion through the protection of human rights and cultural and linguistic diversity. The following sections have a direct bearing on the Department’s mandates: • Section 9(3) – Equality • Section 10 - Human Dignity • Section 16(1) - Freedom of expression (Freedom of artistic creativity; Freedom to receive or impart information or ideas andAcademic freedom and freedom of scientific research) • Section 30 - Language and culture • Section 32(1) - Access to information • Legislative mandate: (this includes all sector legislation (19 Acts) that assist in implementing the constitutional mandates) • Founding legislation for all DAC Public Entities • The Division of Revenue Act (DORA) (published annually for managing the Conditional Grant for Libraries) • Governance legislation: (this include all relevant governance compliance legislations (e.g. Public Finance Management Act) • Policy Frameworks: (this includes national policy frameworks and strategies and frameworks for planning, monitoring, evaluation and reporting)

8. POLICY CONTEXT OF THE DAC PLANS Sector planning in the department must take into account a wide range of policy imperatives that seek to support inclusive economic growth and the social and economic transformation agenda. These policies include the following: • New Growth Plan (NGP): itis government’s macro-economic policy that aims at guiding national economic growth over the short to medium term. The Plan has targeted the creation of 5 million jobs over the next 10 years. • Industrial Policy Action Plan (IPAP II and III): is located within the broader framework of the National Industrial Policy Framework (NIPF), which provides for government’s collaborative engagement with its social partners from business, labour, and civil society. Of relevance to the DAC in Cluster 2 is the growth and labour-absorbing potential of investments in the ACH Sector. • The National Development Plan, Vision 2030 (NDP): while the NDP, in its entirety, remains an important cornerstone for the socio-economic development, of particular relevance to the DACis Chapter 15 ('Transforming Society and uniting the country') which sets out government’s vision nation building and social cohesion, both as an end-state and as a facilitator; • The 2014-2019 Medium-term Strategic Framework (MTSF): The role of the Department of Arts and Culture in relation to the MTSF is twofold, namely: • To lead and coordinate the delivery of the outputs of Outcome 14: A diverse, socially cohesive society with a common national identity. • To ensure alignment with and support for other Outcomes of the MTSF through the programmes and interventions of the Sector • The Mzansi Golden Economy Strategy (MGE): recognises the importance of adequate and modern infrastructure to stimulate participation and maintaining access to public programmes, cultural heritage, collections and art. • Election Manifesto (2014): directs the Department to respond more decisively to the social and economic transformation of the ACH Sector and society generally as a condition for nation building and social cohesion.   • The SONAs (2014 and 2015)highlighted government’s main focus for the next five years as reducing national unemployment levels and supporting longer-term economic growth and development through a programme of radical economic transformation.

9. ALIGNMENT WITH NATIONAL DEVELOPMENT PLAN NATION BUILDING AND SOCIAL COHESION • DAC is central in driving Chapter 15 of the NDP • DAC worked closely with the Presidency in developing the MTSF for the new Outcome 14: “A Diverse, Socially Cohesive Society With A Common National Identity” • Outcome 14 is under the stewardship of the Minister of Arts and Culture • Other relevant departments include Sports and Recreation, Basic education, Justice and Correctional Service, Women, Social Development, COGTA, Provinces and SALGA JOB CREATION AND ECONOMIC DEVELOPMENT • Government-wide emphasis on job creation and improved economic opportunities for the previously disadvantaged made DAC to take stock at what it does • DAC adopted the Mzansi Golden Economy strategy (MGE) whose primary objective is to define the role of arts, culture and heritage in job creation & economic development. QUALITY EDUCATION AND RURAL DEVELOPMENT • The NDP emphasizes the need to improve schooling and education as well as the need to improve quality of life in rural areas of South Africa. • Going into the medium term, the department will continue to make a visible contribution to quality education through ensuring that artists are placed in schools to improve the teaching of arts in basic education. • This will not only ensure that a substantial number of artist will be employed but will also increase interests in arts and improve audience development. • Building of arts, culture and heritage infrastructure in rural areas will continue to be the priority of the department as we move into the next medium term. • Such infrastructure include libraries, heritage monuments and arts centres. • Maintenance of the already built infrastructure will also be central to the department’s priorities. • Apart from developing and investing in our rural areas, such ventures will also create much-needed jobs, as employment of local people will be at the centre of such development.

10. ALIGNMENT WITH THE MTSF • The DAC 2015-19 Strategic Plan and the 2015/16 Annual Performance Plan are in line with the 2014-19 MTSF • The department is leading, managing and coordinationg Chapter 14 (A Diverse, Socially Cohesive Society With A Common National Identity) of the MTSF • Therefore the Department is the nominated secretariat for Outcome 14 and is responsible for reporting on progress against the outcome • Our plans contain and unpack relevant MTSF commitments over and above other priorities • The department also contributes to the following outcomes: • Outcome 1: Improved quality of basic education • Outcome 4: Decent employment through inclusive economic growth • Outcome 5: A skilled and capable workforce to support an inclusive growth path • Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all • Outcome 11: Create a better South Africa and contribute to a better Africa and a better world

11. OVERVIEW OF DEPARTMENTAL PERFORMANCE ACHIEVEMENTS, • Job Creation • The DAC creates jobs through a variety of mechanisms, including infrastructure development projects, work of the public entities and through MGE strategy implementation. • While the jobs created were below expectations, mainly due to the impact of the economic downturn on major festivals, over 14 000 jobs were created. • Generally jobs in the creative industries are part time and in this instance 93% of jobs created in creative subsector were part-time • Social Cohesion Summit • A successful Social Cohesion Summit was held in 2012 at which a 12-point declaration was endorsed and adopted. • Included in the Declaration is the hosting of provincial social cohesion summits. • To this endNorth West and Gauteng have hosted the provincial summits for Social Cohesion. • Social Cohesion Advocates were appointed and their programme has been adopted • Community conversations have taken place in almost all the provinces • Strategic Reorientation • In 2011, the Department embarked on an ambitious effort to strategically re-orientate itself towards the transformation of the ACH Sector. • Adoption of Mzansi Golden Economy strategy whose primary objective is to escalate economic benefits and job creation within the sector was a direct response to the call that was made by the President in 2010 that all of government should make a significant contribution in job creation and economic growth

12. OVERVIEW OF DEPARTMENTAL PERFORMANCE STATUS QUO The Internal Audit findings for 2013/14 financial year revealed the following: • Internal Audit controls • Recurring deficiencies from prior years. • Lack of periodic review of policies • Unsatisfactory general IT controls • Instances of non-compliance with policies and procedures by employees; • Some deficiencies noted within SCM procurement, and contract and records management; • The filling of the following key positions: Chief Financial Officer and Director: Legal Services. The following are some of the findings by the Auditor-General’s Report : • Significant internal control deficiencies in the procurement process, and poor SCM Contract Management • Performance agreements were not signed within set time frames, and assessments for SMS members not done • The Department made payments in contravention of the supply chain management regulations amounting to R74 million in 2014 and R95,5 million in 2013 • No adequate systems to maintain records ofcommitments for approved and contracted procurement • Adequate and reliable corroborating evidence could not be provided for 20% of the targets to assessed • The financial statements submitted for auditing were not supported by full and proper records • Material misstatements identified by the AG were not adequately corrected. • Effective and appropriate disciplinary steps were not taken against officials who made and/or permitted irregular expenditure, fruitless and wasteful expenditure, • Inadequate systems to prepare reliable monthly financial statements and performance reports

13. OVERVIEW OF DEPARTMENTAL PERFORMANCE CHALLENGES • Socio-Economic Situation • High unemployment, particularly among black youth, women and people with disabilities in the ACH Sector – • A society divided along the lines of race, class, space and gender, • Unacceptably high levels of violence against women, the LGBT community and immigrants. • Limited access to information by the majority of the • Lack of access to ACH services that meet the needs of the majority of the population - • The impact of technological change • Infrastructure challenges • Departmental Performance • Weak internal controls are a major systemic constraint to success and waste institutional resources and energies. • This Strategic Planand growing complexity of economic conditions, need greater flexibility and capacity at DAC • The lack of capacity has a direct impact on decision-making. • ACH Sector • Gaps in the legislative and policy environment pertaining to ACH • Slow transformation of the ACH Sector • Narrow programme implementation across the Sector due to a perceived lack of sector consultation and engagement • There is a lack of balance between developing new infrastructure and maintaining existing infrastructure, • Developing markets and building and growing audiences in a low economic growth environment remains a critical issue. • Extensive marketing of MGE strategies and initiatives are required to gain broader awareness, buy-in and collaboration • There is a lack of consistent and adequate funding and revenue generation for the equitable support of non-governmental ACH institutions in the Cultural and Creative Industries.

14. OVERVIEW OF DEPARTMENTAL PERFORMANCE • Cultural Diplomacy • The ACH Sector is reactive to approaches from other countries and therefore not maximising the value of cultural diplomacy in meeting the needs and objectives the Sector. • The ACH Sector is not well marketed and exposed internationally, and not enough is done to increase international interest in local ACH. • There is a lack of recognition and status of ACH products, as well as that of practitioners. • There is a lack of programme development on the African Continent. • The lack of arts education and skills development at all levels is due in part to the following challenges: • Arts curriculum at schools not implemented consistently and to the right standard • Small audiences due to interest in the arts not being stimulated from a young age • The reach of the arts does not extend to rural areas

15. ORGANISATIONAL ENVIRONMENT Achievements • In 2009, government adopted 2009-2014 MTSF and the department was leading Outcome 12(b) • After strategic re-orientation and adoption of MGE a new organisational structure was developed and approved in 2013/14 • The Macro Structure received implementation focus from 2013/14 financial year. • The revised Budget Programme Structure to ensure alignment between strategy, programmes and organisational structure was approved by National Treasury. • DAC leads and coordinates Outcome 14 of the 2014-2019 MTSF • DAC to continue providing on-going professional development to its employees Challenges • Duplication and overlap of mandates and functions across these institutions. • The revised White Paper will require a fundamental shift in the legislative environment, which will be both intricate and lengthy.   • The need to develop ACH skills pipelines and career paths and to make it attractive for qualified arts practitioners to be recruited into civil services in all three spheres of government. • Analysis conducted by the DAC indicates an increasing cost of compliance and governance. For example, the implementation of the Generally Recognised Accounting Practice (GRAP) 17 (libraries) and GRAP 103 (heritage) standards, which is currently unfunded in most of the institutions. • The promotion of literacy through the development of a culture of lifelong reading and writing as an emphasis on market development and not only as a skills development intervention is a challenge. • The current internal environment within the Department displays a lack of coordination, which often results in ineffective approaches to responding to sector needs

16. POLICY PRIORITIES The following priorities have been identified within the 5-year plan: • An enabling policy, legislative and regulatory environment: • Coherent policies that guide directional planning towards the transformation of the ACH Sector, resulting in sustainable livelihoods and social cohesion. • Inclusive economic development: • An ACH Sector that is dynamic and efficient, and fosters inclusive growth. • Nation building and social cohesion programmes: • The implementation of programmes that promote nation building and social cohesion • Radical economic transformation: • The alignment of policies and programmes with transformative outcomes. • Effective governance and implementation institutions: • The alignment of structures, authorities and systems with goals and objectives towards the implementation of the department’s mandate.

17. POLICY PRIORITIES POLICY LEVER 1:An enabling policy, legislative and regulatory planning environment • The adequacy and relevance of existing legislation and policies requires review. • There a need to test the extent to which existing policies and plans have been implemented Status Quo • NDP, MTSF, National Treasury Planning Framework and DAC Sector-wide Strategic Planning Guide • These ensure that proper planning, resource allocation and implementation take place efficiently • Coordinated and integrated planning has yet to realise the desired development outcomes.   • Revisions to the White Paper to bring about increased levels of transformation in the ACH Sector Challenges • The adequacy and relevance of existing legislation and policies requires review. • There is also the need to test the extent to which existing policies and plans have been implemented. • Weak systems for monitoring of compliance and implementation   • Improved management of intergovernmental cooperation and establishment of institutional mechanisms. Policy Priorities • Align regulatory framework with policies • Strengthen and enhance business processes, systems, decision rights and accountability in policy • Co-ordinate integrated planning and budgeting across government • Harness existing IGR structures as a mechanism for planning coordination • Build analytical capabilities • Build compacts around programmes • Inculcate a shared vision of national unity and social cohesion

18. POLICY PRIORITIES POLICY LEVER 2:Nation building and social cohesion • Department is responsible for leading and coordinating Outcome 14 of the MTSF (Transforming Society and Uniting the Country).   Status Quo • Legacy issues still define the national question • The race-based social and economic divisions of the past and practises of exclusion have not been fully eliminated. • Deep economic inequalities characterise identity • Disproportionately high levels of unemployment persist among black people in general and African people in particular. • Uneven progress towards reconstituting the South African social formation as a unified social formation. Challenges • Limits of symbolic exercises that promote reconciliation • Nation building relies for its raison d’être, among others, on available symbolic traditions, customs, and beliefs, to draw up a folder of national characteristics.   • Slow pace of socio-economic transformation Policy Priorities • Build the capabilities of the ACH Sector • This state-led approach to nation building to be complemented by active citizenry and leadership • Promote the Bill of Responsibility, Constitutional values and national symbols amongst children in schools • Utilise national days as a platform for promoting constitutional values, nation building and social cohesion. • Promote heritage and culture through investment in programmes that support and enable transformation. • Promote nation building and social cohesion through targeted engagement, dialogue and interaction with stakeholders and society.

19. POLICY PRIORITIES POLICY LEVER 3:Inclusive economic development • The NDP and 2014 Election Manifesto emphasise the importance of mainstreaming the participation of the poor, mainly black segment of the population in the economy. • In the ACH context, inclusive development means the development of capabilities, provision of opportunities and markets, and deployment and maintenance of infrastructure that can support local, regional, national and international ACH offerings Status Quo • Economic development has tended to produce a skewed dividend rooted in the apartheid legacy of racial inequality. • Rising inequality • Rising social tensions • Participation in the ACH Sector has tended to remain marginal to the rest of the economy Challenges • Economic development has been neglected in townships • Investment projects are often held up by bottlenecks in regulationsand inadequate skills and access to opportunities. • Uneven pattern of investment • Access to finance and skills remains a major constraint Policy Priorities • Strengthen the economic role of townships and relationships with local government • Procure services from black enterprises in the ACH Sector • Strengthen institutional capacity in economic development • Strengthen roles and leverage partnerships with other stakeholders • Create the local conditions for supporting enterprise development and inclusive growth • Procure goods and services from the ACH Sector

20. POLICY PRIORITIES POLICY LEVER 4:Radical economic transformation • It is imperative for the department to clearly articulate its contribution to the job creation and economic development agenda of government. • There is a need for new large-scale interventionsthat will reinforce the ACH Sector as an economic growth sectorand introduce programmes that contribute to large-scale employment. Status Quo • Incoherent policy and legislative framework • Weak access to and participation in the ACH Sector • Funding constraints • The Mzansi Golden Economy. This deals with stimulating demand and markets for ACH products. Challenges • Skewed development • Duplication and overlap of DAC entities and functions • Current levels of capital finance are insufficient to match needs • Stringent credit control measures on lending have tightened the availability of finance for start-up enterprises. Policy Priorities • Finalise the revision of the White Paper • Coordinate and support the national strategic programmes by developing and reviewing policy and legislation • Recasting the MGE so that it involves • Mentorshipand Incubation, • Cultural and Creative Industries Fund (CCIF), Tax Incentivesand Sharpened focus of the NaCISA) • Integrated infrastructure planning and development, • Generate more content, Audience Development and market Development

21. STRATEGIC RESPONSE OF DAC AND THE BROADER ACH SECTOR In response to the policy priorities and delivery of outcome 14 the Department has identified the following 11 Key Priority Areas: 1. Outcome 14 Coordination Key imperatives: • Lead government and society in implementing the nation building and social cohesion agenda • A report-back summit is to take place before the end of the 2014/15 financial year. • Expansion and massification of the community conversations programmes. • Strengthening of the social cohesion advocates programme. • Improved support and collaboration with the moral regeneration movement, 2. White Paper Finalisation Key Imperatives: • The business model of DAC entities is to be reviewed, • Review and develop legislation where applicable • Strategic Priority Area 3: Mzansi Golden Economy • The development of artists from both a technical and business skills perspective. • The further development of creative arts incubators 3. Mzansi Golden Market Key Imperatives • To advocate ACH Sector tax incentives (S18A), • The National Creative Industries Skills Academy (NaCISA) to develop content. • Cultural events: • Touring ventures are to be expanded. • Public art initiatives are to be expanded. • The Art Bank should include a mechanism which values art while the artists are still alive, • Venture Capital Fund:

22. STRATEGIC RESPONSE OF DAC AND THE BROADER ACH SECTOR 4. Heritage Promotion and Preservation Key imperatives: • Heroes Acre, to be fast tracked: • Liberation Heritage Route: • Memorialisation methods to be identified • Expansion of the liberation heritage routes outside the country • Building of the National Heritage Museum 5.The ACH Schools Programme Key imperatives: • Flags distribution in schools • Artists in schools programme • Arts curriculum in schools • Schools camp programme • Actualising constitutional values in schools • 'Unite Schools Club' Programme 6. Library Services (Conditional Grants) Key imperatives: • A standardised design and development approach consisting of 3 types of library architectures. • The establishment of oversight mechanisms to monitor and evaluate project progress. • Increase the foot traffic to libraries through creative programming, 7. Cultural Diplomacy Programme Key imperatives: • Conclude the UK Season and go forward to • prioritise the Africa Seasons and BRICS Season’s programmes. • Africa Month, which takes place in May 2015.

23. STRATEGIC RESPONSE OF DAC AND THE BROADER ACH SECTOR 8. Language Programme Key Imperatives: • The DAC is to actively promote the implementation of the Act and to • provide assistance with setting up the language units within the organs of state. • The regulatory foundation is to be strengthened, including PanSALB turnaround • The establishment of the SA Language Practitioners' Council • Setting up provincial structures 9. DAC Public Entity Governance Key imperatives: • Governance and policy manuals are to be developed, • Delegations of authority are to be developed and implemented,. • Shareholder compacts are to be streamlined. • A shared services function Audit and risk committees, Internal audit units, Risk management units, Marketing and communications units, Human resource units, Board support (secretariat) units. 10. National Days Key imperatives: • To move from an events-driven approach to a more a meaningful programmatic approach. • To increase the repertoire of approaches to create more inclusive ways of celebrating national days. • To develop a guideline framework to measure the impact of national days programmes in terms of nation building, social cohesion and dignity. • To coordinate national days as a transversal function. 11. Archives and Records Management Key imperatives: • Archiving and records management to be mainstreamed in all activities in the ACH Sector. • DAC to develop a guideline document and roll out a communication campaign to create the necessary awareness • The digitisation of collections.

24. LINKING GOALS TO NATIONAL POLICY AND STRATEGIC FRAMEWORKS

25. LINKING GOALS TO STRATEGIC OBJECTIVES AND PROGRTAMMES

26. LINKING GOALS TO STRATEGIC OBJECTIVES AND PROGRTAMMES

27. INDICATORS AND TARGETS

28. DAC SPECIFIC OUTCOME 14 INDICATORS

29. Fostering Constitutional Values

30. Equal Opportunities, Inclusion And Redress

31. Equal Opportunities, Inclusion And Redress

32. ESTIMATE OF NATIONAL EXPENDITURE INDICATORS{ENE}

34. ESTIMATE OF NATIONAL EXPENDITURE INDICATORS

35. SECTOR INDICATORS

38. THANK YOU 34