PLAN ANNUAL 2021/22 - National Arts Council
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ANNUAL PERFORMANCE PLAN 2021/22
ACCOUNTING AUTHORITY
STATEMENT
T
he new Council comes in at a time
of uncertainty, where the future
can only be determined by how
as a collective, we fight towards
eliminating a pandemic that threatens to
reverse the gains the artistic community
has achieved over the years.
This pandemic has had a severe effect on cultural and
artistic work because of the nature of the sector and
how it creates content and earns income. The National
Arts Council is at the forefront of alleviating the financial
burden brought about by the Covid-19 restrictions that
impact on the livelihood of the cultural and creative
sector.
Many of us had high hopes and expectations for 2020, but
no one could have foreseen the devastation that would
be wrought on our country and our people by Covid-19.
Our arts sector, inevitably, was not spared the carnage
– and arguably endured some of the worst impact. We,
therefore, present this Annual Performance Plan, for the
Mr Zikie Molusi MTEF period 2021-2024, mindful of how the funding of
Chairperson the sector has to run parallel to the required compliance
National Arts Council of South Africa with Covid-19 protocols. This will require creative and
innovative platforms for artistic expressions that keep
the sector going while protecting the lives of the cultural
consumers and those that create content.
We are confident that our cultural practitioners have
been forged in the school of hard knocks and know that a
career in the arts, while immensely fulfilling, will never be
a bed of roses. They have had to endure countless other
bumps along the road in the past.
So, characteristically, as much as the pandemic has
damaged our economy and our people, it has once again
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 1
shown how our creative workers are able to pivot, adapt, ways of producing cultural goods in the wake of the
rise to the challenge and find new ways of doing things. pandemic.
This, of course, was not easy as a greater part of the
sector derives most of its output from human interaction. This funding comes against the backdrop and realisation
that the cultural and creative industries play a major
For the National Arts Council of South Africa, the same role in the economy and employment creation in South
applied. We also had to quickly embrace a daunting new Africa. The 2020 research results, conducted by the South
reality, accelerating our migration into the digital sphere African Cultural Observatory (SACO), have shown that
that had, thankfully, already begun. Fortunately, this this sector contributes an estimated R74.3billion per
allowed us to salvage the remains of a previously thriving annum to the country’s GDP (1.7% of total GDP), and is
sector, through reinvention and staying focused on our grew at 2.4% rate between 2016-2018 - faster than any
mandate. other industry. While SACO observes that “the number
of cultural occupations in South Africa is sensitive to
We immediately began adjusting our funding framework changes in GDP growth, but grew at a faster rate than
to accommodate Covid-compliant projects that are the number of jobs in other sectors in 2016 and 2017”,
geared towards the Fourth Industrial Revolution and tech- the sector contributes 1.3 million jobs or 7.03% of total
savvy. employment. By all indications, the sector requires
tremendous support if it hopes to continue on this
By supporting innovation that can operate under the new growth trajectory.
normal, the NAC begins to find a new and re-invented
path that will continue to create a vibrant, inclusive and
transformed arts and culture sector.
“ By supporting innovation
The pandemic taught us agility amidst a most eventful
time that has presented challenges but also opportunities that can operate under
for collaboration with DSAC and sector federations, to
forge a path for a modus operandi within the confines of
the new normal, the NAC
a pandemic. begins to find a new and
We are grateful that this future intervention creates re-invented path that
a financial safety net and is able to save families from
bankruptcy, destitution and starvation, but of course,
will continue to create
our modest allocation is finite and thus, its impact is also a vibrant, inclusive and
limited.
transformed arts and
The National Arts Council thanks Government and
the National Treasury for the allocation of an amount culture sector.”
totalling R366 639 000 over the 3-year MTEF period
starting in 2021 to 2024. Much more will have to be
committed and more needs to be done for a sector that Now, more than ever, with the public purse increasingly
must be re-assembled from being one of the fastest squeezed, South Africans want transparency and
growing sectors. This funding allocation follows the accountability for the use of public funds and resources.
recent intervention by the Presidential Employment This Council promises to carry on the exemplary record
Stimulus Programme fund of R300-million that the of six successive clean audits under the current CEO,
Department of Sport, Arts and Culture entrusted to even as we mourn the death of that bastion of integrity
us to manage and disburse in a bid to help retain and and solid governance, the late auditor-general Kimi
create jobs in the sector. This rapid burst of funding will Makwetu.
certainly help our artists and creatives to reimagine their
2 NATIONAL ARTS COUNCIL OF SOUTH AFRICA
Three highlights stand out in 2020. The first is how the
Panel of Chairpersons Committee worked tirelessly to
put the interests of our country’s artists first during this
very difficult time.
The second standout this year was how the marketing
and communications team came out to dance in the
light, at a time when it would have been so easy to dance
in the dark. The way they stepped up to the challenges
presented by the pandemic and were able to find ways to
communicate with the communities we serve was nothing
short of outstanding.
Another high point of the year was seeing how the NAC
solidified its administration and processes, tightening our
controls to ensure that not only are we accountable for
the funds we disburse, but that our beneficiaries similarly
have to account to us for how they use the grants. This
was truly a year of teamwork, in which everyone pulled
together – and pulled their weight in pursuit of greater
goals. This was made possible by a stable leadership.
Furthermore, one of our key strategic drives in the
2021 year is to fortify partnerships in the sector with
private companies, sponsors and supporters. One of our
initiatives is to drive cost-effectiveness in the application
process, through peer-to-peer collaborating.
As the newly appointed Council we believe that we are
inheriting a funding agency that is on solid ground, based
on the work done by the previous Council. As we move
forward, our mission is to solidify and continue to build a
National Arts Council that is credible, trusted and the go-
to agency for funding and arts development.
As we look forward to a year of much-needed recovery
and renewal for our sector, we can also look back on a
successful year for the NAC – one in which we reasserted
our central position as not just a grant-making body,
but also one that plays a pivotal role in developing and
nurturing the sector. I thank everyone concerned for
contributing to this excellent performance.
............................................
Mr Zikie Molusi
Chairperson
National Arts Council of South Africa
Nick Fewings
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 3
ACCOUNTING OFFICER
STATEMENT
A
s an eternal optimist, I live
by the adage “every cloud
has a silver lining”. And so
it has been for the National
Arts Council of South Africa (NAC), even
in 2020, the most extraordinary and
unprecedented of years.
We start the 2021-2024 MTEF period fully cognisant of
the impact Covid-19 has had on the cultural and creative
industries since coming to our shores in early 2020. We
present this Annual Performance Plan fully aware of the
challenges the industry is facing and the role the National
Arts Council as a buffer against thee financial impact on
the artistic community. Already studies done by the South
African Cultural Observatory (SACO) have shown that the
impact of Covid-19 has shown that the GDP contribution
by this sector will be reduced to R53 billion, compared to
the recently recorded R74.3 billion. The report showed
that performance and celebration will be the most
Ms Rosemary Mangope affected at 55% of average impact, and a possible GDP
Chief Executive Officer drop of R2.8 billion affecting mostly freelancers, who
National Arts Council of South Africa constituted 65% of the total survey, due to the human
contact nature of their activities.
I do not wish to downplay the adverse effect the
pandemic has had on our hard-working arts professionals,
who were denied the right and ability to earn a living for
several months. Many are still not able to return to work.
Their courage and fortitude in the face of adversity has
been as inspiring.
4 NATIONAL ARTS COUNCIL OF SOUTH AFRICA
However, it is undeniable that Covid-19 forced all of us to Training and development for our staff contingency is key
think out of the box. I believe that in times of volatility, it in 2021 and some of the skills development programming
becomes more important than ever to understand your will be drerived from the wealth of knowledge that
overarching vision and objectives, be true to them and already exists within our network of stakeholders in
stay focused – and allow that to re-energise you and carry the sector, so that the framework of the NAC can be
you through. If you are clear about what you want to flavoured by practitioners on the ground.
achieve, you can make it happen.
The virus made us explore and embrace the unknown.
It stretched us in surprising ways and taught us to look
“ Above all, we will be
beyond our borders to expand our horizons and our sticking to our vision
to establish the NAC
knowledge. It allowed us to pivot, evolve and adapt to
redefine ourselves. Those we serve have stepped up to
the plate and are exploring new ways of creating and
distributing art, inspired by their own ingenuity and the
as a knowledge and
experiences of others. information portal. I do
As the NAC, we have been forced to be agile and to focus believe that in 2020, we
more closely than ever on our goal of funding the arts for
impact. My wish for the NAC has always been to establish
took the first brave steps
it as a trusted central grant-funding portal for the towards achieving this ...”
government. It was therefore an immense honour that
the National Treasury through the Department of Sport,
Arts and Culture (DSAC) entrusted us with managing
and disbursing R300-million to our sector as part of the Although we, like many other entities, had to work with a
Presidential Employment Stimulus Programme (PESP). reduced budget this year, we were able to lower some of
our costs through remote working and conferencing. We
This rapid-relief stimulus programme, geared at creating hope that our success in allocating our sector’s share of
jobs and retaining existing jobs, had to be rolled out in the PESP will have proven our capability and that this will
a very short period of time. It required us to be nimble be reflected in our budgetary allocation.
and fleet-footed, and I commend our team for pulling it
off, drawing on their close understanding of the sector’s In the Medium Term Expenditure Framework (MTEF)
needs. for 2021 to 2024, the NAC will invest R262 822 000 in
grant funding. As the Executive, we remain committed to
Change is a process, but we had to adapt rapidly when effective management that will allow us to use a larger
Covid-19 hit – with the switch to remote working meaning portion of the funds allocated to the NAC on grant
we had to accelerate our digital migration as well as allocation and less on operational
the upskilling of our workforce. Suddenly embracing administration. This amount will be used to fund the
technology at a time like this was not easy for some, but NAC’s five programmes which are:
we are making steady progress.
• Social cohesion and nation building;
As the CEO for the NAC, I remain thrilled with the • Innovation, design and creation;
commitment of the thinly spread human resources of • Arts platforms/showcases/exhibitions/festivals;
the NAC who have made every effort to ensure that we • Strategic Initiatives; and
continue to service the sector in a progressive manner. • Capacity building.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 5Despite significant budget cuts in the sector, we want to As we look forward at our projected investment, we must
continue on the trajectory of enabling the sector. In 2020, also assess the significant investment that DSAC has
we funded 411 applicants. We are committed to see this made in infrastructural developments in communities
figure grow by 10% in the 2021/2022 financial year. in the form of art centres since 1994. This investment,
which ranges in the billions across the country
This road map for the next financial year will reflect our are platforms in waiting for artists to engage their
priorities such as ensuring our grant recipients are tax communities at a local level.
compliant, so they can nourish the fiscus that supports
them. Here, we think of United States president John Most of all, we are mindful of the need to be both
F. Kennedy’s words: “Ask not what your country can do compassionate and innovative at this critical time – and
for you – ask what you can do for your country”. Let us to get all our artists back to work.
contribute to our economy in the same spirit that we
receive its generosity.
We will be focusing with vigour on establishing our
new development unit, to help potential and existing
....................................................
beneficiaries with applying, reporting and developing
Ms Rosemary Mangope
sustainable business models that build human capacity
Chief Executive Officer
through training and education.
National Arts Council of South Africa
Above all, we will be sticking to our vision to establish
the NAC as a knowledge and information portal. I do
believe that in 2020, we took the first brave steps towards
achieving this – although not without labour pains.
As we increasingly embrace technology, we would like
to create a database of all practicing artists to share on
our website. We will also seek to collaborate with entities
such as the South African Cultural Observatory to better
understand the needs of the sector and support arts
and culture practitioners in a more scientific, knowledge-
driven way.
It is imperative for us to work together towards a
knowledge-driven economy, as the need for unskilled
labour diminishes. The first green shoots have been
emerging, and we will be collaborating with at least two
provinces in the coming year to make greater strides
towards bringing this knowledge-fueled arts economy to
fruition. We are also excited about working with digitally-
driven partners, including technology companies, to help
reinvent our sector.
6 NATIONAL ARTS COUNCIL OF SOUTH AFRICAOFFICIAL
SIGN-OFF
It is hereby certified that this APP:
• was developed by the management of the NAC under the guidance of Council;
• was prepared in line with the current Strategic Plan of the NAC; and
• accurately reflects the performance targets the NAC will endeavour to achieve
given the resources made available in the budget for 2021/22.
............................................
Clifton Changfoot
Chief Financial Officer
............................................
Rosemary Mangope
Chief Executive Officer
Approved by:
............................................
Zikie Molusi
Chairperson
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 7TABLE OF CONTENTS
10 LIST OF ABBREVIATIONS
11 VISION
11 MISSION
12 PURPOSE
12 VALUES
OUR MANDATE
PART A
15 1. REVISION TO LEGISLATIVE MANDATE
15 2. UPDATES ON INSTITUTIONAL POLICIES AND STRATEGIES
15 3. UPDATE TO RELEVANT COURT RULINGS
OUR STRATEGIC FOCUS
PART B
17 4. UPDATED SITUATIONAL ANALYSIS
MEASURING PERFORMANCE
PART C
35 5. INSTITUTIONAL PROGRAMME PERFORMANCE INFORMATION
48 6. EXPLANATION OF PLANNED PERFORMANCE OF THE MEDIUM-
TERM PERIOD
8 NATIONAL ARTS COUNCIL OF SOUTH AFRICA50 7. PROGRAMME RECOURSE CONSIDERATIONS
51 8. UPDATED KEY RISKS
51 9. PUBLIC ENTITY
51 10. INFRASTRUCTURE PROJECTS
51 11. PUBLIC-PRIVATE PARTNERSHIPS
MEASURING PERFORMANCE
PART D
53 TECHNICAL INDICATOR DESCRIPTIONS (TID)
ANNEXURE A 61 MATERIALITY FRAMEWORK
ANNEXURE B 63 RISKS MANAGEMENT PLAN
ANNEXURE C 77 ANTI-FRAUD AND CORRUPTION PREVENTION PLAN
ANNEXURE D 79 COUNCIL CHARTER
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 9LIST OF
ABBREVIATIONS
ADO Arts Development Officer
APP Annual Performance Plan
CEO Chief Executive Officer
CFO Chief Financial Officer
DSAC Department of Sports, Arts and Culture
EXCO Executive Committee
ENE Estimates of National Expenditure
GMS Grant Management System
HR Human Resources
ICT
Information and Communications
Technology
MGE Mzansi Golden Economy
MOA Memorandum of Agreement
MOU Memorandum of Understanding
MTEF Medium-Term Expenditure Framework
NAC National Arts Council
PACC Provincial Arts and Culture Council
PESP
Presidential Employment Stimulus
Programme
NDP National Development Plan
10 Lucas
NATIONAL ARTS COUNCIL OF SOUTH AFRICA Favre• Creating opportunities for the transfer of
knowledge and experience through regional and
VISION international exchanges.
• Building capacity and expertise in the arts
through artistic, entrepreneurial, management,
and technical development as well as copyright
protection.
• Growing South Africa’s wealth as measured by its
great works of artistic expression.
The NAC’s vision is – ‘a vibrant, sustainable
arts community that enriches lives through the BY SUPPORT WE MEAN:
free and creative expression of South Africa’s
cultures/through strengthening artistic and • Contributing to the development and effective use
cultural creation. of sustainable infrastructure that enables artistic
expression.
Through this, we will be a catalyst for social
• Funding worthwhile artistic endeavours that would
inclusion and contribute to the evolutionary
otherwise not have been possible.
development of a unique, diverse and inclusive
South African identity’. • Provide opportunities for people to access the
financial means to explore and experience the arts.
• Provide opportunities for people to access the
space to explore and experience the arts.
• Collaborating with other important stakeholders
MISSION to create a vibrant artistic ecosystem.
• Supporting the DSAC in the implementation of the
Revised White Paper on Arts, Culture and Heritage
as well as other related strategies, especially those
focused on enhancing social inclusion.
BY PROMOTE WE MEAN:
The NAC’s Mission is to leverage energy, partnerships • Facilitate access to markets and economic
and resources to develop, support, promote and sustainability for artists.
advance the arts.
• Showcase the talent of artists at high-profile
events.
BY DEVELOP WE MEAN:
• Communicate the message that “imagination,
• Identifying and nurturing artistic talent creativity and design are vital ingredients of
through funding the academic and professional the arts that contribute to economic, social,
development of arts practitioners, managers and emotional and spiritual growth”.
support practitioners. • Develop future audiences for the arts.
• Fostering mentorship and coaching as ways of • Advocate for the arts and artists as important
improving the quality of artistic expression. contributors to South African society.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 11BY ADVANCE WE MEAN:
• Informing policy-making through research, the
generation of information, intelligence and insights.
PURPOSE
• Providing economic and artistic opportunities for
disadvantaged and rural communities, women and
the youth to grow, develop their potential and find
gainful employment.
• Upholding and promoting the rights of all to
freedom in their practice of the arts.
The NAC’s purpose is to:
Which cultural domains fall within the Mission of the
• support, promote and advance the arts in South Africa;
NAC?
• contribute to a collaborative society through the
richness and strength of the arts;
• Books & Press • ensure that the arts are recognised as a key ingredient
• Visual Arts in developing social cohesion;
• enable artists to define their ideas and establish their
• Performing Arts unique identity;
• Audio-Visual & Multimedia • address past and present inequalities and imbalances
through the medium of art;
• Art Crafts • develop relevant competencies in the new creative
arena that transcends both traditional and
contemporary skills; and
The NAC’s Mission includes all functions within the
• encourage the contribution of artists to enrich the soul
core Arts & Culture value chain, namely:
of our nation.
• Creation
• Production/Publishing
• Dissemination/Trade
• Preservation
VALUES
• Education
• Management/Regulation
Which domains fall outside of the Mission of the
National Arts Council?
• Film
The NAC is committed to the following values:
• Advertising
• Accountability
• Architecture
• Result Orientation
• Heritage • Professionalism and Integrity
• Archives • Making a Difference
• Employee Fulfilment
• Excellence and Synergy
• Transparency and Openness
12 NATIONAL ARTS COUNCIL OF SOUTH AFRICACedric Klei
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 13PART A OUR MANDATE
1 REVISION TO
LEGISLATIVE MANDATES
The NAC has identified challenges with the National Act and its regulations provide a coherent and aligned
Arts Council Act (Act no. 56 of 1997), as amended by approach to the work of the Council. It is clear that the
the Cultural Laws Amendment Act (Act no. 36 of 2001), current NAC Act does not adequately distinguish between
in relation to the work and mandate of the NAC and has the regulatory and executive functions of the NAC.
communicated these challenges with the Department Current provisions of the Act create confusion and need
of Arts and Culture (DSAC). Further to this, the NAC to be realigned. It is also clear that there is a need for
made input as requested by the Cultural Law Review greater efficiency and cost-effectiveness in the conduct
Commission. This process was undertaken with the long- of governance structures and in the way, grants and
term objective of having the legislation reviewed by the awards are made.
DSAC. This review is required to ensure that the NAC
2 UPDATES ON INSTITUTIONAL
POLICIES AND STRATEGIES
The NAC’s new enhanced strategy has shifted from a environment do not impacton the NAC’s ability to achieve
discipline-focused funding approach to a programme- all targets as set out in the NAC’s five-year strategy.
focused funding approach. These changes in the policy
3 UPDATE TO RELEVANT COURT
RULINGS
Not Applicable.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 15PART B OUR STRATEGIC FOCUS
4 UPDATED SITUATIONAL
ANALYSIS
In the latter part of March 2020, the country went into The year preceding this APP has been acutely disruptive.
level 5 Lockdown to prevent the spread of the COVID-19 As the nation went into lockdown and all interactions
virus. The global pandemic forced all to go into remote shifted to digital platforms the arts experienced a crisis
working conditions and without being able to time to unlike any in our time. Opportunities for gathering
take consider the emotional and psychological upheaval and collaboration all but dried up and those cut off
experienced by staff members, the NAC remained open from access to the internet found themselves further
for business. marginalised.
The period under review is thus one of the most However, one might say that the place of the arts has
extraordinary in our recent times. While it proved to be been in crisis for some time now as our lives have been
heavily disruptive, it was also fertile ground for finding increasingly taken over by finance and corporatisation.
new ways of working and serving the public. Digital
systems, which have been increasingly important, were Given the radical restructure of life and the work place,
put to the test and the NAC had to find innovative ways it is possible that we are now at a place where the arts
of making sure beneficiaries remained in contact with and can again play its designated role of healing, creation and
informed by the NAC. bringing society closer together.
Some of the new challenges that had to be confronted The NAC has the ability, through its positioning as
was the mandate to provide relief to the sector. This an anchor organisation in the sector, to lead the
demanded an agile process that had to be developed repositioning and re-energising of the sector.
considering our Grant Awarding Manual.
4.1 EXTERNAL ENVIRONMENTAL ANALYSIS
POLITICAL
An important development within the political world. It is important that the NAC plays a leading
landscape is the immanent amalgamation of the role in informing policy and remains abreast of any
funding entities as per the White paper. This will changes to its political environment.
see the governance structure change and might
lead to new strategic objectives. A further political factor is the, sometimes,
contradicting mandates of showcasing excellence,
The NAC is working under an Act that was while developing the sector, and having a clearly
created at its inception in 1997. The NAC should defined and balanced national footprint. The NAC
commence with a consultative process with cannot be all things to all people, even though as
stakeholders to give input into how the Act could the national implementing partner of the DSAC, it
be updated to speak better to the contemporary is often expected to be. This expectation can be
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 17better balanced by doing structured development must be implemented that will ensure a symbiotic
work, while allowing funding of projects that give relationship between all stakeholders of the
South African art global recognition. sector including the executive structures of
government that oversee the sector.
Despite the formidable contribution of the sector
to the economy, political framework that governs Funding and support must match the economic
the sector has limited understanding with regards benefits that the sector contributes to GDP and
to how the sector operates real time. Initiatives the general economy of the country.
ECONOMIC
In 2020, the South African economy collapsed due press contribute R10.1billion to GDP. The biggest
to the Covid-19 outbreak, reporting a negative contributors to GDP are audio-visual & interactive
growth balance of 8.0%. According to the IMF's media as well as design & creative services at
updated October 2020 forecast, growth is expected R8.5billion and R3.7billion, respectively.
to pick up in 2021, estimated at 3% of the GDP, and
to stabilise in 2022 at 1.5 % (IMF – World Economic The study also indicates that the direct impact of
Outlook Database, October 2020). the Covid-19 lockdown was over R53 billion, of the
face-to-face operators who participated in the study,
Given the constraints on the national budget in only 12% could continue with 50% or more of their
general, it is essential for the NAC to prepare itself normal business activities. At least 40% of those
to be a leaner and more efficient organisation, not surveyed were using reserves to survive, while 21%
only in governance, but also in the way funding is were getting support from family and friends.
perceived. Funding will have to be recognised as a
relationship that enables, but is not responsible for, Music in Africa also conducted another survey on
sustainability. It is a challenge for the entity to deliver the impact of the pandemic, which showed that 64%
on its full mandate with the limited funding it is given of the individuals and 70% of companies surveyed
and the vastness of its obligation to the country. had no other source of income to survive lockdown.
Both individuals and companies combined
The organisational and governance structure is (approximately 87%), needed relief of some kind.
currently very heavy, and should be reviewed in
order for the expenditure to better align with similar Despite the clear need for support, about 80% knew
institutions. There is a clear threat of budget cuts to about government support and only 25% were sure
all entities leading to a need to relook at governance that they qualified for grants.
structures.
The entity has and should continue to invest in
The 2020 research results, conducted by the South flagship projects that can attain high levels of impact
African Cultural Observatory (SAC), have shown that and have a multiplier effect on the arts sector. It is
this sector contributes an estimated R74.3billion per not easy to create employment inside a sector that
annum to the country’s GDP (1.7% of total GDP), and rely mainly on seasonal and freelance work. As such
grew at 2.4% rate between 2016-2018 - faster than the projects funded by the entity should have clear
any other industry. While SACO observes that “the job creation and pay-it-forward imperatives that can
number of cultural occupations in South Africa is expand the impact of the funding.
sensitive to changes in GDP growth, but grew at a
faster rate than the number of jobs in other sectors Well-established brands that have made significant
in 2016 and 2017”. The sector contributes 1.3 million in-roads in the sector are also closing their
jobs or 7.03% of total employment. By all indications, doors, as evidenced by the recent Clicks Group's
the sector requires tremendous support if it hopes announcement that it will be closing down its Musica
to continue on this growth trajectory. Worth entertainment business by May 2021. The closure of
noting in the study is the R5.2 billion contribution Musica is bound to have a negative impact on music
by the performing arts, as well as R2.2 billion by distributors and the gaming industry.
both the visual arts and crafts, while books and
18 NATIONAL ARTS COUNCIL OF SOUTH AFRICASOCIAL
A key focus of the DSAC and its entities is the to receiving ‘hand-ups’. This might necessitate a
transformation of the sector and greater access change in the language around funding, away from
to the arts for all South African citizens. Thus ‘beneficiaries’ and for the NAC to see itself not as
far, the NAC has not been able to have sufficient grant-makers, but as investors in the success of
impact in all provinces and there is much to be those they fund. In that way, the grant-making will
done for transformation to be tangible throughout become part of the larger arts ecosystem.
the sector. More emphasis needs to be placed on
women, youth and people living with disabilities as It is vital that more is done to develop beneficiaries
the sector also tries to combat inequalities such as and to continue to seek worthy applicants from
unemployment and poverty. the under-funded provinces, given that the current
state of funding is skewed towards the metros.
A new vision of funding should be promoted that
moves beneficiaries from receiving ‘hand-outs’,
TECHNOLOGICAL
Towards the end of this period under review, the more efficient collaborative working within and
workplace became exclusively digital as remote across departments.
working was enforced. This necessitated an urgent
up-skilling of all team members and reviewing It is essential to promote digital access for all to its
systems. The NAC is working on creating an end- grant-making system by partnering with network
to-end digital system for grant-making, reporting, providers for a zero-rated platform. There is more
finance and monitoring. This will mean a sharper pressure now to ensure that the digital divide
focus on knowledge management and document does not widen as the income divide. The NAC
storage management within the entity to leverage can play a role in up-skilling its constituents in the
on its archive and database. digital world. It is through partnerships with the
appropriate ICT and innovative organisations that
The entity has to invest in the appropriate solutions the NAC can play a leading role in a national digital
for Cloud-based computing to allow for faster, migration.
LEGAL
The entity continues to create and review policies
to facilitate a well governed working structure for
all its operations. It would be useful, in future, to
consider legal knowledge to be present internally.
ENVIRONMENTAL
It is crucial that the NAC sees itself as part of the
solution to combat climate change. As such, one
of the NAC values is ‘environmental value’ and
applicants are adjudicated against these values.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 194.2 INTERNAL ENVIRONMENTAL ANALYSIS
LEADERSHIP
SUCCESSES: CHALLENGES:
• Current leadership has been stable, giving the • Remote working conditions resulting from the
entity an opportunity to do systemic planning. national lockdown brought a radical change in
• The stability of leadership has enhanced the working conditions and as such required new
processes within the entity. protocols.
• The current leadership has been able to create a • The entity is not yet completely in a position to
forward-looking strategy that tries to deliver on embrace a fully 4IR environment, however the
the mandate set out by the DSAC for the NAC. remote working has hastened the preparations.
• The current leadership is versed in the • The entity is still in the process of crafting ways
development of arts councils on the global front of becoming more efficient.
through board membership on entities such as
the International Federation of Arts Councils and
Culture Agencies (IFACCA).
• The Council has been very instrumental in
changing the way the entity functions.
• Adjudication panels are structured to get leaders
in the sector to make decisions on funding to
ensure quality projects are realised.
ARTS DEVELOPMENT
SUCCESSES: CHALLENGES:
• The unit has continued to support the sector • The unit is focused on becoming more than just
through grant funding in the year under a grant-maker, through leveraging partnerships
consideration. on behalf of beneficiaries that require new kinds
• ADOs have institutional knowledge. of skills.
• The unit is in the process of digitising the grant • Digitisation has to be prioritised. This requires
life cycle. more internal training.
FINANCE
SUCCESSES: CHALLENGES:
• A new CFO has been appointed with experience • Finance is yet to be integrated into GMS so as to
in HR and IT. attain a fully digital process in the grant life cycle.
• A clean audit was secured. • There is a need to reduce the operational
expenditure within the NAC to align with
guidelines set by National Treasury.
• The entity might well experience budget cuts
and so has to find ways of operating under these
constrained conditions.
20 NATIONAL ARTS COUNCIL OF SOUTH AFRICAHR
SUCCESSES: CHALLENGES:
• The Culture Change phase 1 has started yielding • Organisational culture change processes have
results. to constantly address the fact that many staff
• A second phase culture change process members have been with the organisation for a
continued in the current financial year. long time and the work that the entity is doing
• A new KPI system was introduced in the form of could have high levels of stress.
the Balanced Scorecard.
IT
SUCCESSES: CHALLENGES:
• The GMS system is broadly in use and assisting • The entity needs to do more to embrace 4IR
towards overall digitisation. given the new working environment.
• Record keeping has been improved as a result of
GMS usage.
• A Document Storage Management system and
policy has been created.
• The next step is a comprehensive ITC strategy
to cater to the needs of the entity as the
environment changes.
COMMUNICATIONS
SUCCESSES: CHALLENGES:
• A series of beneficiary profiles are leading the • More can be done to get beneficiaries to
communications strategy. acknowledge the NAC in their marketing and
• An events calendar has been designed and is on promotion.
the website on a month-to-month basis.
• A series of ‘how-to’ videos have been developed
to familiarise prospective applicants with NAC
programmes and the GMS portal.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 214.3 SWOT ANALYSIS
STRENGTHS WEAKNESSES
• The entity is well established in the sector as a grant • Grant disbursement in the current epoch is evolving.
disbursing agency of the Department of Sports, Arts This requires constant investment in training to ensure
and Culture. utilisation of best practice management tools.
• The entity has deep and valuable institutional • The process of grant funding has high stakes and so
knowledge. the work can be stressful.
• The GMS provides improved and faster ways of working • The entity is not yet digitally proficient.
and provides an extensive database of the sector. • All organisations are under pressure to produce higher
• The entity has a secure stream of revenue from DSAC levels of innovation and the NAC is no exception.
and there is a strong relationship with DSAC in place. • Government fiscus is under strain. The current revenue
• The NAC has succeeded in showcasing South African stream is not guaranteed and may decline.
culture both locally and abroad. • The sector is dynamic, which poses a challenge when
striving to be ahead of the curve.
OPPORTUNITIES THREATS
• The NAC could be a leader in the arts sector and a • The economic depression and government’s competing
central grant funding portal. priorities may result in the reduction of the entity’s
• The entity could successfully advocate for the budget thus limiting opportunities.
centrality of the arts in the development of society and • The benefits of arts funding have not been embedded.
demonstrate the value it adds. Arts funding could be relegated
• The NAC is in a unique position to create lasting • There is a constant need to tighten the grant-making
transformation in the sector. process to eliminate errors which might result in lapses
• The NAC could lead the digital innovation of the in grant funding.
cultural sector. • Weak knowledge and utilisation of digital systems.
• The NAC has the resources to do systematic • The sector might express loss of faith in the entity
development of beneficiaries in the sector. due to too stringent application processes which are
• Potential to create partnerships within the sector to however necessary to ensure impactful funding.
spread the message and work of the NAC. • Where infrastructure such as community art centres
have been provided by the state, they often lack
funds for ongoing maintenance and are unable to put
forward artistic programmes that draw audiences on
an ongoing basis. This leads to an inability to close
gaps in inequality, poverty reduction and access to job
opportunities. These spaces can act as community
development flagship sites that can act as satellite
partners to the NAC.
• Sector federations continue to have an inaccurate
perspective whose sentiment is that funding entities
and DSAC are not implementing impactful strategies to
curb the impression of the pandemic on the sector.
22 NATIONAL ARTS COUNCIL OF SOUTH AFRICA4.4 OVERVIEW OF THE DRAFTING OF THE APP
Consultations were held with the NAC’s core team to inform the final draft of the APP. The diagram below outlines the
NAC’s strategic planning process for the drafting of the 2020/21 APP.
Review of five-year Review of Technical Development of the first
strategic priorities Indicator Descriptions draft of the 2021/22 APP
NAC management
1st draft sent to ARC for Review of second draft
and staff inputs
review and endorsement based on input received
(Workshop)
Submission of the 2021/22
Second draft reviewed by Final draft of 2021/22 APP
APP to the DSAC
Internal Audit and EXCO presented to EXCO/Council
(January 2021)
4.5 MATERIALITY FRAMEWORK
The concept of materiality is applied when the audit is
planned and conducted, as well as in evaluating the effect
of identified misstatements in the financial statements
and predetermined objectives and non-compliance with
legislation.
4.6 FINANCIAL STATEMENTS
A matter is material if its omission or misstatement
would, in all probability, influence the decisions of users
of the financial statements. In planning the audit, the
auditor makes judgements about the size and nature of
misstatements or non-compliance that will be considered
material, individually or in aggregate, based on the
information needs of the users. These judgements form
the basis for determining the nature, timing and extent of
the assessment of risk and further audit procedures.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 23Base Amount Selected for Mate- Reasoning
riality
Total Expenditure Yes The National Arts Council is a non-profit driven entity and
is focused on disbursement of funds allocated by national
government. The entity is therefore focused on service delivery
through expenditure.
It is therefore appropriate to use total expenditure as a basis
to evaluate identified misstatements against for all financial
statement items.
Gross Revenue No NAC receives a grant from the Department of Arts and Culture,
which is used to fulfil the mandate of the entity; therefore, it
would not be appropriate to consider gross revenue as a base
for determining materiality.
Net Income/Profit No NAC is not profit-driven, therefore, it would not be appropriate
to consider net income/profit as a base for determining
materiality.
Total Assets No NAC is not capital-intensive, therefore, it would not be
appropriate to consider total assets as a base for determining
materiality.
Initial overall materiality has been set at R1 165 000 (1% of below quantitative materiality, for example, if the
total expenditure). misstatement or non-compliance relates to items
involving related parties, fraud or matters that are in
Initial performance materiality has been set at R873 750 the public interest.
(75% of overall materiality).
Management is required to inspect and correct the
The assessment of what is material is a matter of the population wherever misstatements were identified, not
auditor’s professional judgement. An initial overall only in respect of misstatements that are regarded as
quantitative materiality is calculated on the expenditure. material. The cause of these misstatements should be
Other matters that affect the assessment of materiality: identified, and controls should be put in place to prevent
similar misstatements in future.
• The auditor may calculate a different materiality
for specific financial statement items based on the There is also a threshold below which misstatements
information needs of the users. are regarded as trivial and will not be reported to
management and those charged with governance.
• Quantitative materiality is revised during the audit,
for example, when quantitative materiality was 4.7 AUDIT OF PREDETERMINED
originally calculated on the previous year’s figures OBJECTIVES
or on budgeted figures and the actual financial
information becomes available. Materiality is considered in the context of qualitative
factors and, when applicable, quantitative factors. In
• The auditor also considers qualitative the case of the auditing of predetermined objectives,
materiality, for example, the nature and cause qualitative factors may be more important than, or at
of uncorrected misstatements, as well as the least as important as, quantitative factors in determining
particular circumstances of their occurrence. The the materiality of identified misstatements.
circumstances relating to some misstatements
or instances of non-compliance may cause the The consideration of materiality occurs at the level of
auditor to evaluate them as material even if they are each selected programme that has been scoped into the
24 NATIONAL ARTS COUNCIL OF SOUTH AFRICAaudit. The auditor is concerned with the “cut-off point” If a compliance deviation is not quantitatively material,
where it could reasonably be expected that the decisions a number of factors are taken into account in applying
of the primary users of the reported performance professional judgment to determine whether the non-
information that related to a selected programme would compliance is qualitatively material. Such factors may
have been influenced/affected had they known about include the following:
the misstatement or been presented with the “correct”
information. The auditor may use a quantitative threshold • Impact of the non-compliance in terms of value on
in this regard (taking cognisance of what is being irregular or unauthorised expenditure incurred.
measured and how it is being measured), but will also
consider the nature, cause and circumstances of identified • Circumstances of the non-compliance.
misstatements and the possible consequences or impact
• Nature of the non-compliance.
of these as represented by relevant qualitative factors.
• Cause leading to the non-compliance.
The qualitative considerations that may indicate whether
the performance information will influence the decisions • Possible effects and consequences of non-
of users include the following: compliance.
• Requirements of a law or regulation. • Visibility and sensitivity of the programme in
question.
• Performance information that relates to the primary
functions or purposes of the institution, i.e., its • Needs and expectations of the oversight, the public
"reason for being". or other users of the auditor’s report.
• Performance information that could be of significant
national or community interest or of interest to the 4.9 GOALS ORIENTED TOWARDS
public, including the media. STRATEGIC OUTCOMES
• Performance information determined as part of a The NAC’s vision, mission and strategic goals are aligned
sector determination. with those of the DSAC, in particular the DSAC’s
MGE Strategy and the DSAC’s National Strategy for
• Programmes that relate to outputs of significant risk Developing an Inclusive and a Cohesive South African
to the public. Society. In turn, the DSAC’s goals are aligned with the
12 outcomes of government’s programme of action
that drives the plans and actions of all government
4.8 COMPLIANCE WITH LEGISLATION
departments.
A compliance deviation refers to an instance of non-
The MGE Strategy emerged from the 2011 National
compliance with the criteria for a specific subject matter
Consultative Summit and sets out to reposition the
or to a limitation placed on the auditor in auditing
cultural industries in South Africa. The MGE Strategy
compliance with the criteria.
opens up the arts, culture and heritage sector to
contribute to economic growth and job creation. Some
The assessment of what represents a material compliance
of the projects that the DSAC has initiated and are
deviation includes considerations of quantitative and
implementing include:
qualitative aspects of the transactions or legislative
requirement concerned.
• the cultural events initiative, which funds big
cultural events in different cities and towns, providing
A percentage compliance deviation rate is used for criteria
platforms for performing artists to display their arts
that are applied in respect of high volumes of transactions
and to earn a living.
or activities and where a margin of error is tolerated.
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 25• the sourcing enterprise, which sources goods public education system, an integrated national
and services for events, shows, conferences and economy, shared symbols and values, as equals to
exhibitions, providing opportunities for both work towards eradicating the divisions and injustices
established and emerging young artists to be of the past; to foster unity; and to promote a
showcased on these platforms. countrywide sense of being proudly South African,
committed to the country and open to the continent
• The public art project, which considers proposals and to the world”.
from artists who can do “impromptu” multimedia
arts such as street theatre, dance, outdoor murals It also sets out eight dimensions of social cohesion and
and sculptures. nation building:
• the touring venture project deals with art
• Belonging – “To be a part of and to experience a sense
exhibitions, plays and public art performances
of affiliation to the community and to the larger society.”
that may be taken to various cities to provide
opportunities for audiences elsewhere to experience • Inclusion – “To be included on an equal basis in all social
the arts. activities and rights, and to have equal access to all life
opportunities.”
• the art bank project is envisaged as a national rental
agency for contemporary and traditional South • Participation – “Active involvement in community and
African art, and functions to procure and curate social activities, programmes and events”
artworks in all public buildings, including government
departments, institutions and South African • Recognition – “To recognise, acknowledge and value
embassies across the world. differences without discrimination.”
• the cultural observatory, which aims to provide • Legitimacy – “The integrity and social legitimacy
the industry and government with data that will of public bodies and leaders representing community
help develop appropriate strategies for facilitating members and citizens.”
development of the sector and enhance its
contribution to the gross domestic product. • Shared values – “Basic set of shared values such as
democracy, freedom, equality, justice and mutual respect.”
The enhanced NAC strategy and APP have initiatives • Cooperation – “A willingness to cooperate and work on
that are aimed at giving expression to a number of the community and social projects with diverse citizens.”
initiatives set out in the MGE Strategy.
• Belief – “In self-help and confidence in the future of
the community with the conviction that the future of
The DSAC’s National Strategy for Developing an
the community depends on the action of the community
Inclusive and a Cohesive South African Society
members.”
defines:
The NAC intends to incorporate two significant
o Social cohesion as “the degree of social integration
elements into its enhanced strategy to ensure that it acts
and inclusion in communities and society at large, and
in alignment with this strategy:
the extent to which mutual solidarity finds expression
among individuals and communities”.
1. The NAC has and will continue to identify and
support “strategic initiatives” that directly
o Nation building as “the process whereby a society
contribute to social cohesion and nation building.
of people with diverse origins, histories, languages,
cultures and religions come together within the 2. The eight dimensions of social cohesion and nation
boundaries of a sovereign state with a unified and building will be used in setting criteria for the
constitutional and legal dispensation, a national
26 NATIONAL ARTS COUNCIL OF SOUTH AFRICAevaluation of grants to ensure maximum potential Johannesburg, Cape Town and Durban, and a lack
support for these important outcomes. of infrastructure in townships or rural communities.
Where infrastructure such as community arts centres
have been provided by the state, they often lack
The DSAC engaged with stakeholders regarding the funds for ongoing maintenance and are unable to put
revised White Paper on Arts, Culture and Heritage forward artistic programmes that draw audiences on
that was endorsed by Parliament in February 2020. The an ongoing basis. This leads to an inability to close
NAC aligns itself to the principles espoused by the revised gaps in inequality, poverty reduction and access to
White Paper, which sets out a way forward to: job opportunities.
• Create a better life for all. At the end of MTEF period we would like to ensure that
through fortified and planned collaboration Community
• Offer an integrated and holistic package of services.
Art Centres can become world class satellite access
points for and in partnership with the NAC.
• Transform all levels of the sector and improve
delivery mechanisms by:
• Affordability – Large sections of the South African
population live in poverty or do not have the
o improving resourcing systems; and
disposable income to pay for exposure to the arts.
o improving institutional infrastructure.
This limits market creation and contributes to an
elitist arts market in the country. The affordability
The implications of the revised White Paper on Arts,
issue impacts significantly on the creation of a
Culture and Heritage for the NAC are:
national culture that supports the arts. If a parent
cannot afford exposure to the arts, it is likely he or
• the potential allocation of the NAC’s mandate for
she will not encourage their children to gain such
the “promotion and development of the arts” to
exposure. This creates a self-perpetuating cycle
separate, discipline-specific councils; and
of alienation from the arts that severely limits the
• the potential integration of the NAC’s funding potential for market growth.
mandate into a single “cultural and creative
• Access to markets – The affordability issue
industries fund”.
referenced above impacts the demand for the arts.
Many artists do not have a local market that they
The NAC has already contributed to the important can readily access, often leading to them moving
debate around the contents of the White Paper and to to the large cities in the hope of finding paying
its subsequent iterative versions. The NAC intends to audiences. Once in these cities, they often lack the
utilise its strategy and APP to position itself for a value- formal and informal networks to access markets. This
adding role that will ensure its long-term survival and is compounded by low levels of literacy, from basic
contribution to the outcomes envisaged by the White education levels to computer and financial literacy.
Paper. Traditional market intermediaries – such as gallery
owners, agents and managers – have tended to be
There are many important differences between the drawn from privileged communities and are not
NAC, with its uniquely South African context, and its readily accessible to emerging artists.
international counterparts. These include:
• Funding – Government’s ability to fund the
arts is severely curtailed by its need to focus on
• Arts resources – South Africa is a large country
other developmental priorities such as education,
with low levels of population density, particularly
healthcare and social services. Public and private
in the rural areas. Infrastructure at the grass-roots
financial support, while generous by African
level is unevenly distributed, resulting in world-
standards, is low by global standards.
class arts facilities in large urban centres such as
ANNUAL PERFORMANCE PLAN 2021/22 | NAC 27The enhanced NAC strategy needs to take these factors arts equation. It is important to build a virtuous cycle of
into account and address some of the most basic engagement that drives supply and demand. This means
systemic issues that may simply be taken for granted in providing support to strengthen and sustain the practice
other jurisdictions. of the arts while stimulating awareness and connection to
the arts through active advocacy.
It is for this reason the NAC’s strategic goals balance
a focus on both the supply and demand sides of the
CYCLE OF ENGAGEMENT
BETTER ACCESS TO
MORE PEOPLE WILLING
INFRASTRUCTURE
AND ABLE TO ENGAGE IN
& QUALITY ARTS
THE ARTS
PROGRAMMES
ARTS ADVOCACY
GREATER SUPPORT FOR DEEPER UNDERSTANDING
THE ARTS’ EVENTS AND AND APPRECIATION OF
PROGRAMMES THE VALUE OF THE ARTS
THE NAC’S STRATEGIC GOALS Content creation and distribution is at the heart of
creative industries and this goal focuses on driving it.
GOAL 1: It aims to promote excellence and innovation in the
Create a vibrant, inclusive and transformed Arts and creation of new works and to develop and support
Culture Sector platforms for practitioners to showcase their work.
Strengthen the arts through focused grant funding for GOAL 2:
arts organisations and practitioners. Create a vibrant Achieve global recognition for our unique South
and transformed Arts and Culture sector that allows for African arts and culture
the free expression in chosen languages and cultures.
Promote a sector that pays attention to indigenous arts This goal will focus on exposing indigenous (home-
forms with a focus on equity, inclusivity and diversity in grown) art forms and uniquely South African initiatives to
participation. global platforms and markets, with the view of unlocking
28 NATIONAL ARTS COUNCIL OF SOUTH AFRICAYou can also read
