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The National Arts Council (NAC) APP 2013/2014. Presentation to the Portfolio Committee 19 June 2013. Introduction. Policy mandate as per the White Paper on Arts, Culture and Heritage
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The National Arts Council (NAC)APP 2013/2014 Presentation to the Portfolio Committee 19 June 2013
Introduction • Policy mandate as per the White Paper on Arts, Culture and Heritage • Distribute public funds to artists, cultural institutions, NGOs and CBOs to promote the creation, teaching and dissemination of literature, oral history and storytelling, music, dance, theatre, musical theatre, opera, photography, design, visual art and craft which fully reflect the country’s diversity. • Provide study bursaries for study in the fields of arts and culture, to practitioners, administrators and educators. • Carry out research, especially regarding policy linked to its mandate and also execute investigations and research at the request of the Minister • NAC established by the National Arts Council Act (No 56 of 1997 as amended by the Cultural Laws Amendment Acts) and is a Schedule 3 A public entity in terms of the PFMA • Wholly funded by annual budget allocation from DAC, of which 75% in terms of the Act must be distributed in grants in support of the arts
NAC Mandate To provide, and encourage the provision of, opportunities for persons to practise the arts To promote the appreciation, understanding and enjoyment of the arts; To promote the general application of the arts in the community To foster the expression of a national identity and consciousness by means of the arts To uphold and promote the right of any person to freedom in the practice of the arts To give the historically disadvantaged such additional help and resources as are required to give them greater access to the arts To address historical imbalances in the provision of infrastructure for the promotion of the arts To promote and facilitate national and international liaison between individuals and institutions in respect of the arts To develop and promote the arts and to encourage excellence in regard to these.
The Accounting Authority • The current NAC Council was appointed in March 2011 by the Minister of Arts & Culture • The Council is comprised of discipline representatives (7), provincial representatives (9) and other members of society with skills necessary for the effective functioning of the Council • The work of Council is facilitated by • The Executive Committee • The Audit and Risk Committee • The Human Resources Committee • The Advisory Panels (7 discipline-based panels)
NAC Strategic Objectives: 2012 – 2016 Contributing to redress and transformation in the arts. Developing an effective funding model that supports the NAC in achieving its mandate. Fulfilling the full mandate of the NAC. Advocating the benefits of the Arts and the work of the NAC amongst critical stakeholders to create partnerships and unlock new resources for the arts. Creating programmes in support of new areas of work including youth development and audience development, participation and appreciation.
The New Funding Model • In September 2012/2013 the Council of the NAC approved a new funding model as a critical driver of the new priorities. • The model is designed to be: • Equity based funding model • Responsive to the needs and life cycle stage of artists and arts organisations • Able to empower women, youth and people with disabilities
Beneficiary Profile This framework will inform both the number of beneficiaries and the funding allocations 20% 30% 50%
NAC Grant Funding 2012/2013 • Three grant categories • Projects • Local & international bursaries • Arts Organisation Support Funding • 580 individuals and arts organisations supported
Service Delivery Environment Demands on resources far exceeds funds available
Service Delivery Environment (cont.) • The need to redistribute resources, particularly to historically underfunded provinces and challenges pertaining to: • The funding and functionality of Provincial Arts and Culture Councils in some provinces • Low levels of applications in some provinces
Source: DAC ENE 2012/2013 Service Delivery Environment (cont.) • And the National Lottery Distribution Trust Fund… • In 2011/2012 the NAC made grants to the value of R52,846 million to 374 organisations • The NLTD made grants to the value of R459 million to 257 organisations Historic underfunding of the NAC benchmarked against other DAC funding agencies….
Matters Impacting on the NAC • Downtown Studios • The transfer was approved by the Minister in 4th quarter of 2012/2013 • Guidance is awaited from Treasury with regard to the mechanism of transfer • The building and the assets have been integrated into the AFS of the NAC as per the agreed treatment with the AG • The assets will accordingly be audited by the AG in the 2012/2013 regularity audit
Matters Impacting on the NAC • Audit Matters • The NAC received an adverse audit finding in 2010/2011 and a qualified audit opinion in 2011/2012 • The qualification was due to material misstatements in the AFS, non compliance with the PFMA and Treasury Regulations and non-compliance with the GRAP accounting standards • For the 2012/2013 Annual Financial Statements, quality assurance has been conducted on the AFS by the NAC’s internal auditors, the misstatements from prior years have been corrected, the SCM environment has been improved through a review of policy and procedure and the appointment of an SCM officer and the issue of non-adherence to GRAP standards resolved.
