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ANNUAL REPORT 2017/18
ANNUAL REPORT
FILM AND PUBLICATION BOARD
ANNUAL REPORT 2017/18
SECTION 1: GENERAL INFORMATION 2 PublicEntity’sGeneralInformation 4 ListofAbbreviations 5
SECTION 2: PERFORMANCE INFORMATION 6 StatementofResponsibilityregardingperformanceinformation 7
SECTION 3: STRATEGIC OVERVIEW 8 StrategicOverview 9 FPB’sOrganisationalEnvironment 12 Minister’sForeword 13 DeputyMinister’sForeword 16 MembersoftheCouncil 18 ExecutiveCommittee2017/2018 20 Chairperson’sForeword 22 ACEOForeword 25 OverviewofFPB’sPerformance 26
SECTION 4: GOVERNANCE 36 CorporateGovernanceReport 37
SECTION 5: HUMAN RESOURCE MANAGEMENT 42 HumanResourceManagement 43
SECTION 6: FINANCIAL INFORMATION 54 Index 55 ListofAbbreviations 56 AuditandRiskCommitteeReport 57 ReportoftheAuditor-GeneraltoParliamentontheFilmandPublicationBoard 60 AccountingAuthority’sResponsibilitiesandApproval 66 AccountingAuthority’sReport 67 StatementofFinancialPositionasat31March2018 69 StatementofFinancialPerformance 70 StatementofChangesinNetAssets 71 CashFlowStatement 72 StatementofComparisonofBudgetandActualAmounts 73 AccountingPolicies 74 NotestotheFinancialStatements 88
SECTION 7: PERFORMANCE INFORMATION REPORT 104 StrategicOutcome1 106 StrategicOutcome2 112 StrategicOutcome3 114 StrategicOutcome4 118 StrategicOutcome5 120
FILM AND PUBLICATION BOARD
GENERAL INFORMATION
ANNUAL REPORT 2017/18
FILM AND PUBLICATION BOARD
RegisteredName: FilmandPublicationBoard
ContactDetails:
HeadOffice: 420WitchHazelAvenue
EcoGlades2
EcoPark
Centurion
0157
Tel:0120031400
Fax:0126610074
CapeTown: 9LongStreet3rdfloorCnrRiebeekandLongstreet
CapeTown
Tel:0214183083
Fax:0214618126
Durban: 4SilverOaks
36SilvertonRoad
Durban
Tel:0312012158
Fax:0312617130
Email: [email protected]
Website: www.fpb.org.za
ExternalAuditors: Auditor-GeneralofSouthAfrica(GRAP)
InternalAuditors: AuditandRiskManagementServices
Bankers’Information: Absa
CouncilSecretary: MrTMokutu
ANNUAL REPORT 2017/18
AGSA Auditor-GeneralofSouthAfrica
AGM AnnualGeneralMeeting
APP AnnualPerformancePlan
ACEO ActingChiefExecutiveOfficer
AVE Advertisingvalueequivalent
CPU ChildProtectionUnit
CWU CommunicationsWorkersUnion
CSAM ChildSexualAbuseMaterial
DIFF DurbanInternationalFilmFestival
DTT DigitalTerrestrialTelevision
DoC DepartmentofCommunications
ECPAT EndChildProstitutionandTrafficking
ERMS ElectronicReportManagementSystem
FCS Familyviolence,ChildprotectionandSexualOffencesUnit
FPGs Films,PublicationsandGames
FPB FilmandPublicationBoard
GRAP GenerallyRecognisedAccountingPractice
HR HumanResource
INHOPE InternationalAssociationofInternetHotlines
IARC InternationalAppsRatingCoalition
ICT InformationandCommunicationsTechnology
KM KnowledgeManagement
KING III KingCodeofCorporateGovernance
LGBTQI+ Lesbian,Gay,Bisexual,TransgenderQueerandIntersex
MMA MediaMonitoringAfrica
MTEF Medium-TermExpenditureFramework
OCR OnlineContentRegulationSystem
ORP OnlineRegulationPolicy
PFMA PublicFinanceManagementAct
SADC SouthAfricanDevelopmentCommunity
SAPS SouthAfricanPoliceService
SARS SouthAfricanRevenueService
SCM SupplyChainManagement
SID SaferInternetDay
VAT ValueAddedTax
VOD VideoonDemand
S/VOD SubscriptionVideoonDemand
FILM AND PUBLICATION BOARD
PERFORMANCE INFORMATION
ANNUAL REPORT 2017/18
Yoursfaithfully
_____________________________ _____________________________Acting Chief Executive Officer Council Chairperson MrSandileNene MrsThokoMpumlwana
Tothebestofmyknowledgeandbelief, Iconfirmthefollowing:
All information and amounts disclosed in the annualreport are consistent with the Annual FinancialStatementsauditedbytheAuditor-General.
Theannualreportiscomplete,accurateandisfreefromanyomissions.
The annual report has been prepared in accordancewith theguidelineson theannual reportas issuedbyNationalTreasury.
TheAnnualFinancialStatements(Section6)havebeenpreparedinaccordancewiththeGenerallyRecognisedAccounting Practice (GRAP) standards applicable tothepublicentity.
The Accounting Authority is responsible for thepresentation of the financial statements and for thejudgmentsmadeinthisinformation.
TheAccountingAuthorityisresponsibleforestablishingandimplementingasystemofinternalcontrolthathasbeen recognised to provide reasonable assuranceas to the integrity and reliability of the performanceinformation, the human resource information and theannualfinancialstatements.
The external auditors are engaged to express anindependentopinionontheAnnualFinancialStatements.
In our opinion, the annual report fairly reflects theoperations, the performance information, the humanresources information and the financial affairs of thepublicentityforthefinancialyearended31March2018.
FILM AND PUBLICATION BOARDFILM AND PUBLICATION BOARD
STRATEGIC OVERVIEW
ANNUAL REPORT 2017/18ANNUAL REPORT 2017/18
FPB Mandate
DerivedfromtheFilmsandPublicationsAct65of1996asamended in2004and2009, theFPB ismandatedto regulate: (1) the creation, production, possessionanddistributionofcertainpublicationsandcertainfilmsby means of classification; (2) the imposition of agerestrictionsandgivingconsumeradvice;and(3)makeexploitativeuseofchildreninpornographicpublications,films, or on the internet punishable. Therefore, themandateoftheFPBcanbesummarisedasfollows:(i) Regulatethecreation,production,possessionand
distributionoffilms,gamesandcertainpublicationsbywayofclassification,
(ii) Protect children from exposure to disturbing andharmfulmaterial and from premature exposure toadultmaterial,
(iii) Render the use of children in and exposure ofchildrentopornographyapunishableoffence.
Vision
“Aleadingandcrediblecontentregulator”.
Mission
“Ensure effective child protection, empowerment ofconsumersandacontributiontotheeconomicgrowthoftheindustrythroughregulationofmediacontent”.
Key priorities for the next five years
TheFPBCouncilendorsed the followingkeyprioritiesasstrategicprioritiestoinfluencetheapplicationofthestrategy;a) Technology-drivencontentclassification.b) Consumereducation(empoweradultsandprotect
children).c) Legislativereview(platformneutrallegislativeregime).d) Local and international partnerships (to ensure
betterregulationoftheweb).e) Research, compliance monitoring and monitoring
andevaluationtoinformfuturepriorities.f) Fundingandresourcemobilisation.g) Integrateinformalbusinessintoformalbusiness.
Principles central to FPB Regulations
a) Protectionofchildrenfromearlyexposuretoadultmaterialanduseinchildpornographyproductions–childpornographypunishablebylaw.
b) Provideconsumeradviceonmediacontent–‘WeInform,YouChoose’.
c) Provide designated areas for distribution of adultmaterial(pornography).
Values
The FPB embraces the Batho Pele (People First)principles of government as the core values of theorganisation that are to be observed at all times anddemonstratedbyallemployees inall itsengagementswithbothinternalandexternalstakeholders.Theabove
FILM AND PUBLICATION BOARD
principlesarekeydeterminantsthataremeanttoenableeffectiveness. The strategy will promote the followingvalues:a) Accountabilityb) HumanDignityc) SocialJusticed) Integritye) Transparencyf) Professionalism.
Legislative and other mandates
Constitutional mandates
TheFPBdoesnothaveadirectconstitutionalmandateas the FPB is a classificationbody, a regulator and aquasi-judicial body, because it licenses, regulates,adjudicatesandissuessanctions.
However,theFPBcarriesoutitsworkwithdueregardfortherightscontainedintheConstitutionoftheRepublicof South Africa, which recognises and protects therights of every citizen, thereby ensuring an open anddemocraticsociety.
Of particular importance are sections 16, 28, 32 and36of theConstitutionof theRepublicofSouthAfricaandActNo108of1996,whichstipulatethateveryonehas the right to freedom of expression. This includesfreedomofthepressandothermedia,artisticcreativityand the freedom to receive or impart information orideas,therighttohaveaccesstoinformation,therighttohumandignityandtherighttofreedomofchoice.
Section16oftheConstitutioncontainslimitationstotherighttofreedomofspeech,namely:propagandaforwar;incitementofimminentviolence;oradvocacyofhatredthatisbasedonrace,ethnicity,genderorreligion,andthatconstitutesincitementtocauseharm.
These limitationscanbe found innumerouspiecesoflegislationissuedsince1994,notablyintheEqualityActand,morespecifically,theFilmsandPublicationsAct16of1996asamended.
Section28oftheConstitutionguaranteesthateverychildwillbeprotectedfromanydegradation,abuse,exposureto harmfulmaterials or exposure to child pornographyand that the child’s best interests are of paramountimportanceineverymatterconcerningthechild.
Moreover, theFPB’swork isaligned toOutcome14oftheNationalDevelopmentPlan,whichseekstoachievesocialcohesionandnationbuilding.Asasuboutcome,fosteringconstitutionalvaluesformspartofwhattheFPBdoesinschoolswithitskeymessagingregardingcybersafety,whichoutlinestherighttoprivacyandintegrity.
Legislative mandates
ItisimportanttolocatetheroleoftheFilmandPublicationBoard,asmandatedthroughtheFilmsandPublicationsAct of 1996 (as amended), in the context of a raft oflegislation that is relevant and related to thebusinessoftheFPB.ThissectionoutlinesthefollowingpiecesoflegislationthatformpartoftheFPB’smandate.
• ConstitutionoftheRepublicofSouthAfrica• ChildJusticeAct75of2008• CriminalLaw(SexualOffencesandRelatedMatters)
AmendmentAct32of2007(forexamplesections10 and 19 of the Criminal Law Act of 2008 andSection15oftheChildJusticeActof2008).
The Protection of Personal Information Act proclaimsthat the right to privacy includes a right to protectionagainsttheunlawfulcollection,retention,disseminationanduseofpersonalinformation(POPIAct4of2013).
ThisActhas implicationsforthe increasing incidencesof online abuse, such as the so-called revenge porn,thedistributionofexplicitimagesofpeoplewithouttheirconsentandthedistributionofcyber-bullyingcontent–allofwhichmanifestinmulti-layeredvictimisation.
Taking action against such abuse is within themandate of the FPB. The ElectronicCommunicationsAct of 2005 as amended regulates electronic media,particularly in the milieu of media convergence. ThePreventionandCombatingofTraffickinginPersonsAct,2013 pronounces on the recruitment and exploitationof children in sex trafficking and in the production ofpornography.
Inpursuing itsstrategicvision, theFPBwillbeguidedby these laws, while upholding the values of ourconstitution.
Asacrediblecontentclassifier,theFPBisresponsibleforexecutingactivitiesandinitiativesaimedatsuccessfullymonitoring the creation, production, distribution and
ANNUAL REPORT 2017/18
The FPB’s work seeks to achieve social cohesion and nation building. As a
sub-outcome, fostering constitutional values forms part of what the FPB
does in schools with its key messaging regarding cyber safety, which outlines
the right to privacy and integrity.
possession of legal adult entertainment, through theclassification of the content of films, publications andinteractivegames.Toensure theobjectivesof theActarecarriedoutsuccessfully,theFPBisresponsiblefordevelopingpolicies,proceduresandprocesses.
Initspursuitofkeyoutcomesandobjectives,theFPBis further tasked with the protection of children andthe empowerment of adults against exploitative andharmfulmaterial,anditthusplaysakeyleadershiproleinimplementinganti-childpornographycampaigns.Theorganisationoperates inanenvironmentthat is largelyinfluencedby rapid technological innovations inmediacommunicationchannelsandaproliferationofavarietyofmediaplatforms.
One of the FPB’s challenges is occasioned bynoncompliance and limitations on the technologyplatforms, for which the content is regulated or dueforregulation.Akeyprogrammeofthisstrategy isthelegislative reviewprocess,whichwillultimately lead toanenhancedlegislativeframeworkfortheorganisation.ThelegislativereviewwillfocusonempoweringtheFPBto institute penalties in the event of non-compliance.Further,itwillensurethatthelegislationandtechnologyare neutral in ensuring that the legislation remainsrelevant,despitechangesintechnology.
Policy mandates
Thereisnopolicymandate,astheFPBisanimplementingentityfortheDepartmentofCommunication(DoC).
FILM AND PUBLICATION BOARD
ExecutiveAuthority
AppealsTribunal
Council
CEO
CouncilSecretary
SharedServicesChiefFinancialOfficer
ChiefOperatingOfficer
ChiefInformationOfficer
InternalAudit
IT
LegalandRegulatoryAffairs
SCM ResearchPolicyandAdvocacy
CommunicationsandPublicEducation
FinanceandAdminClientSupport
andAdmin
OperationsHumanResources
ANNUAL REPORT 2017/18
The Film and Publication Board (FPB) is a statutorybodyestablishedintermsoftheFilmsandPublicationsActof1996,asamended.TheBoardisentrustedwiththe regulation of production, creation and distributionof films, games and certain publications throughclassification. In termsof theAct, theFPB’smandateisfundamentallytoprotectchildren.Itisforthatreasonthatallmediaandentertainmentcontentisclassifiedfor
age-appropriateness. This, in turn, provides parents,caregivers and children in their care with sufficientknowledge to make informed viewing, gaming andreadingchoices.
At theheartof theFPB’smandate is the imperative tofosternational social cohesion in termsof theNationalDevelopmentPlan(NDP)2030,andtoalignthe
The children of any nation are its future. A country, a movement, a person that does not value its youth and children does not deserve
its future.
FILM AND PUBLICATION BOARD
distributionofcontentacrossallplatformswiththenormsandstandardsofSouthAfricansociety.Thisdeliberatefocusonchildrenisaimedprimarilyatempoweringthemand ensuring that they are not prematurely exposedto adult experiences, violence and other sociallyinappropriatemediacontent.Most importantly, theActmakes the exposure of children to, and their use in,pornographyunlawfulandcriminallypunishable. In thiscase,thedefinitionofcommercialsexualexploitationofchildrenintheChildren’sActof2005,isinstructive.TheActdefinescommercialsexualexploitationofachildas“procurementof achild toperformsexual activities forfinancial or other reward, including acts of prostitutionor pornography, regardless of who receives such areward,ortraffickingofachildforuseinsexualactivities,pornography or prostitution”. It is noteworthy that anypersonwhoallowssuchcommercialsexualexploitationof a child on his or her property, or anywhere else, isequallyguiltyofthatcrime.
ThisreportprovidesanoverviewoftheactivitiesoftheFPBoverthe2017/2018financialyear,andreflectsthework undertaken by the FPB in dispatching its childprotectionandcontentclassificationmandate.
TheCounciloftheFPBwasfullyconstitutedduringthereportingperiod,andhascompliedwithallitsstatutoryobligations,which includedthetimeoussubmissionofquarterlyperformanceinformationandfinancialreportsto the Executive Authority and Parliament. The FPBhassupported theMinistry in itscommunityoutreachprogrammes,whichincludeDigitalTerrestrialTelevision(DTT)awarenessandrollout.
TheAppeal Tribunal is fully constituted andhasbeenabletoperformitsdutiesasmandatedbytheAct.Ihavebeeninformedthatinthereportingperiod,theTribunalheardonlyfourappealsagainstclassificationdecisionsissuedbytheFPB.Inthebiggerschemeofthings,thisshows that, as a society, we are maturing and havea better understanding of a regulatory body such asthe FPB. This is testament to the united efforts of allstakeholders,includinggovernment,thelegislatureandthebroadercivilsocietyinensuringthatwecollectivelyprotect our children, who represent the future of ourgreatdemocracy.
On6March2018,theNationalAssemblyfinallyadoptedtheFilmsandPublicationsAmendmentBill,whichhasnowbeenreferredtotheNationalCouncilofProvinces
forfurtherprocessing.Thisisahugemilestonethatmustbe celebrated, given how far the process has come.In addition, the Online Regulation Policy is receivingattention,andwillmostlikelybefinalisedoncetheBillisapprovedandsignedintolaw.
StatisticsSA2016GeneralHouseholdSurveyreportedthat only 3.5% of households across the country donothaveaccesstoeither landlinesorcellularphones.Mostof thosewere in theNorthernCape (9.7%)andtheEasternCape (6.9%).Thesame reportnotes that59.3% of households had at least one person withinternetaccess,andthat87%ofhouseholdsexclusivelyusedcellphones.
An internet studybyWorldWideWorx, conducted inJuly 2016, found that 21million South Africanswereusingtheinternet,andthatthemajoritywereaccessingtheinternetusingmobiledevices.Thishasmarkedanincrease of about 7% since 2012, thereby increasingthe amount of content distributed and consumedonline.Thenumberwasprojectedtoreach22.5millionbytheendof2017.
If anything, these developments place children at anevengreaterriskofbeingluredintodarkanddangerouspursuitsbyunscrupuloussexualpredators,whousetheinternetas theirhuntingground.Throughthe internet,anumberofchildrenareabductedforuse inthe illicitsex-trade industry which, unfortunately, takes placeacross borders. This, therefore, calls for parents andcaregivers to exerciseextra vigilanceandmonitor theonlineactivitiesoftheirchildrenandthoseintheircare.
Thisyearmarks thecentenarycelebrationof thebirthofourformerpresidentandstruggleicon,thefatherofour democratic nation,DrNelsonRolihlahlaMandela,aswellas thatofMamaNontsikeleloAlbertinaSisulu,one of the most dedicated heroines of our liberationstruggle.I,therefore,urgeeachmemberofoursociety,regardlessofcolour,creed,politicalorreligiouspursuit,todedicate time todoingactsof kindnessaspartofcelebratingthelegacyofthesegiants.
Iamsatisfiedthat,despitethechallengesfacedbytheorganisationduring the reportingperiod (including thedeparture of the entire ExecutiveManagement team),the entity was able to focus on its core business,whichisevidentinitsachievementof80%ofitsannualperformancemilestones.
ANNUAL REPORT 2017/18
Giventherecenttrendofallmediacontentbeingmainlytransmittedonline,theFPBneedstoinvestmoreinitsIT infrastructure to ensure that it continues to be aneffectiveregulator.InOctober2016,theDepartmentofTelecommunications and Postal Services, supportedby the Department of Communications, released aWhitePaperonNationalIntegratedICTPolicyforpubliccomment.Workinthisregardisstillongoing.
In November 2017, the Department of Science andTechnology released a White Paper on Science,Technology and Innovation. The White Paper setsthe long-term policy direction for the South Africangovernment to ensure a growing role for science,technologyand innovation (STI) inamoreprosperousandinclusivesociety.ItfocusesonusingSTItoaccelerateinclusive economic growth,make the economymorecompetitiveandimprovepeople’severydaylives.ItaimstohelpSouthAfricabenefitfromglobaldevelopmentssuch as rapid technological advancements andgeopolitical and demographic shifts. Finally, theElectronic Communications Act of 2005 is currentlyunderreview,withtheobjectiveofstrengtheningnationalpolicy and legislation regulating ICT in general andaccesstoinformationandcommunicationinparticular.Theabovepiecesof legislationandpolicydocumentsarebut someof the key initiatives undertakenbyourgovernment to ensure that developments in, and theuse of, information and communications technology,with all its promised benefits, are properly regulatedandgearedfortheadvancementofourcountry’ssocio-economicdevelopmentalpriorities.
TheDepartmentwillcontinuetoavailresourceswithinitsmeanstoensurethattheFPB’spublicservicefunctioniseffectivelyperformed.
Letmeconcludebyquotingoneoftheleadingstalwartsinthefightfordemocracyinourcountry,OliverReginaldTambo,whenhesaidofchildren:“Thechildrenofanynationareitsfuture.Acountry,amovement,apersonthat does not value its youth and children does notdeserveitsfuture.”
IwouldliketothanktheChairpersonandthemembersof the Council for their commitment, resilience,stewardship and leadership in ensuring that the FPBcontinues to fulfil itsmandate. Letme thank the staffandmanagementforhavingkepttheireyesontheball,thusensuringthattheFPB’smandateisdeliveredinachallengingenvironment.
Finally, let me thank the Portfolio Committee onCommunications for its continued support andpersistence inensuringcompliancewiththeprinciplesofgoodgovernancenotonlybytheFPB,butbyallDoCentitiesatalltimes.OnourpartwiththeDeputyMinister,we will continue to hold the Council accountableto its statutory obligations, and for sound financialmanagement.
Thankyou
_____________________________Ms Nomvula Mokonyane (MP) MinisterofCommunications
FILM AND PUBLICATION BOARD
TheFilmandPublicationBoard(FPB)isastatutorybodyestablishedintermsoftheFilmsandPublicationsAct,Act65of1996,asamended,toregulatemediacontentand protect children through classification of films,games and certain publications. Such classificationserves as consumer advice to parents, caregiversandchildren in their care, toempower them tomakeinformedviewing,gamingandreadingchoices.
The FPB’s mandate falls within Outcome 14 ofthe NDP 2030, which talks to nation building andsocial cohesion. Itsmandate is derived directly from
Section 28 of the South African Constitution, whichprovides, among others, that “every child has aright to be protected from maltreatment, neglect,abuse or degradation, as well as exploitative labourpractices”. Section 28 provides that children shouldnotbe requiredorpermitted toperformwork that isinappropriatefortheirageorplacestheirwellbeingatrisk.Finally,itstatesthatthechild’sbestinterestsareparamount in all matters affecting them [Subsection(2)]. This, therefore, callsonall of usasa society tovigilantly protect the interests of our most preciousassets,ourchildren.
Let us get to work and safeguard a brighter future for our children and young people. We owe them that much.
ANNUAL REPORT 2017/18
TheNDP’svision is thatby2030,SouthAfricanswillhaveuniversalearlychildhoodeducation,high-qualityschooling, furthereducationandtraining.Outcome1of theNDPemphasisesbasiceducation,comprisingEarly Childhood Development (ECD) and schooleducation as the bedrock of the education system.The NDP advocates training and education of thehighestquality,characterisedbysignificantlyimprovedlearning outcomes, as education is instrumental inensuringthatallindividualshaveequalaccesstolife’sopportunities.
Therefore,allofus,blackorwhite,youngoroldandregardlessofourideologicalandpoliticalpreferenceshaveanobligationtouniteoureffortsinensuringthatwe afford our children themost effective protection.In linewith theNDP,wehaveanobligation to infuseeducationinthedailylivesofourchildren.It isinthiscontextthattheFPBhasanextensivepublicoutreach,education and awareness programme spanning thewhole country. We will be failing as a democracy ifweneglectECDandeducation ingeneral.However,in pursuance of this noble developmental goal, ourgovernmenthasalreadyallocatedsignificantresourcesto ECD and education. This ismanifest in generousfunding for theprimaryeducationphase throughno-feeschoolsandtheextendedschoolfeedingschemeprogramme.TheFPBis,thus,avitalcoginthenationalmovementtoensurethatourchildrenareprotectedasbestwecan.When armed with knowledge, our children areempowered tomakewisedecisions,which in certaininstances,canbelife-saving.IfindthefollowingNigerianproverb very useful in illustrating this point: “Home iswherelifeisfoundinallitsfullness”.Inshort,thismeansthat, since the FPB cannot be in every corner of ourcountry, or indeed in every household, parents andcaregivers bear the primary responsibility of ensuringthat children are exposed to good teachings. This isfurther illustrated by the following African proverb: “Achildisaparableofthelifeofaparent”.
Therefore, in line with the imperatives of our much-reveredConstitution, I imploreallofyou, fellowSouthAfricans,toensurethatthemostbasiceducationandthe teaching of values that should take place in ourhomes, do indeed take place. Let us empower ourchildrentobecomemature,responsibleandproductiveadultcitizensasenvisagedbytheNDP,Vision2030.
Ourchildrenliveinaworldlitteredwithallkindsofevilcreatures,includingthosewhosesolemissionistoinflictpain and the cruellest forms of violence on innocentchildren.Itisourcollectivedutyasanation,therefore,tosay“notinmyname”.
Iampleasedtonotethat inthereportingperiod,theFPB has achieved no less than 80% of its annualtargets, but was able to spend just over 93% of itsallocatedbudget.
Partnershipsremaincriticaltothegovernmentandallpublicentitiesdeliveringontheirrespectivemandates.Let us, therefore, form lasting and meaningfulpartnerships in assisting the FPB to achieve itsmandate. I would like to call upon scholars andresearchinstitutionstoallocatemoreresourcestothestudyoftheillsafflictingthemostvulnerablemembersofoursociety,aswellasexplorepossiblesolutions.
As the Ministry, we will continue to support andguidetheFPBinattainingitsgoalsandensuringthatits reach isbroadened toeven themost rural ofourcommunities. Parents, educators, civil society, thereligioussectorandindustryallhaveanimportantroletoplayinthisregard.
Letusgettoworkandsafeguardabrighterfutureforourchildrenandyoungpeople.Weowethemthatmuch.
IwouldliketothanktheChairpersonandthemembersof the Council for their commitment and focus inproviding leadership to this important entity, thusensuring that our people receive the services theyexpect fromacaringstatesuchasours. Iwould liketo thank all the FPB staff and all stakeholders whocontributetotheworkoftheFPB.
Here’s to another fruitful and service-oriented year,underpinnedbytheprinciplesofBathoPele.
Thankyou
_____________________________Ms Pinky Kekana (MP) DeputyMinisterofCommunications
FILM AND PUBLICATION BOARD
Ms Thoko Mpumlwana CouncilChairperson
Ms Sarah Mangena DeputyCouncilChairperson
Ms Yoliswa Makhasi CouncilMember
Adv Anderson Mudunungu CouncilMember
ANNUAL REPORT 2017/18
Ms Nobuntu Dubazana CouncilMember
Mr Matone Ditlhake CouncilMember
Adv Lufuno Nevondwe CouncilMember
Ms Nomvuyo Mhlakaza CouncilMember
Dr Natalie Skeepers CouncilMember
FILM AND PUBLICATION BOARD
Mr Sandile Nene ActingChiefExecutiveOfficer
Mr Vuledzani Matidza ActingChiefFinancialOfficer
Mr Khensani Khoza ActingChiefInformationOfficer
Mr Tlale Mokutu CouncilSecretary
Ms Abongile Mashele ActingChiefOperationsOfficer
ANNUAL REPORT 2017/18
FILM AND PUBLICATION BOARD
Introduction
Three years ago, the FPB embarked on a processto review and propose amendments to its foundinglegislation. TheFilmsandPublicationsAmendmentBillwasadoptedbytheNationalAssemblyinMarch2018,andhassincebeen referred to theNationalCouncilofProvinces (NCOP) for furtherprocessing.At thisstage,wearewaitingfortheNCOPprocess,andwehopethattheBill will be finalised during the 2018/2019 financial
year.Thenew,amendedlegislationwilladdmuch-desiredimpetus to our focus on regulating content distributedthroughtheinternetandotheronlineplatforms.
MobilephoneshavebecomeapopularandprevalentformofvoiceanddatacommunicationsamongmanysectorsofthepopulationinSouthAfrica,especiallyforuseininformalbusiness.Cellphonesare,infact,takingtheplaceofcomputer internetaccessand,as recentreportsshow,morethan75%ofSouthAfricansownor
Our mandate entails classification, provision of consumer advice and compliance monitoring, and through these, we seek to
provide full information to parents and caregivers, so that they can adequately protect children in their care.
ANNUAL REPORT 2017/18
haveaccesstocellphonesandothermobiledevices.StatisticsrevealthatSouthAfricahasoneofthelargesttelecommunicationsmarketsontheAfricancontinent.A2013studybyImagi-social,anonlineresearchplatform,showsthatover60%ofcellphoneownersregularlyusecellphonestoaccesstheinternet,andthatover75%ofinformalbusinessesusesocialmedia.TheyestimatethattherearemoreactiveusersofthemobileinternetinSouthAfricathantherearetraditionalinternetusers.Thestudy ranked South Africa as the fifth-highestmobiledata-usingmarket,behindRussiainthefirstspot,andfollowedbytheUSAintheseventh.
According to a survey by parenting site, Netmums.com, the average age at which children start to usetheinternetisthree,andmostchildrenspendtwiceaslong online as their parents think they do. The studyhas found that many children view self-harm, violentpornography, animal cruelty and eating disorderwebsites and that more than a quarter admit theypretendtobeoldertoaccesscertainsites.Thestudyhas found thatmany children are spending somuchtimeonlinethatoneinthreenowstruggleswithofflineactivitiesthatrequireconcentration,suchasreadingabook.Althoughtwothirdsofthechildrensurveyedsaidtheyhadhadanegativeexperienceonline,only22%ofparentsrealisedthis.Thisprovesthatparentsarerarelyawareoftheirchildren’sinternetactivity.
Itisaknownfactinoursocietythatchildrenareregularlyexposedtoinappropriateonlinebehavioursuchascyber-bullying, child abuse images, identity theft and cyber-racism. There are sexual predators who lure childrenonlineusing falsepersonalprofiles. Thisoften leads tochildren being abducted and exposed to all sorts ofnefarious activities, including slavery, pornography andprostitution, if not callously killed. Inadequate parentalsupervision therefore, contributes to the vulnerability ofchildren.
TheFPBisastrategicpartnerinthebattletominimisetheexposureofchildrentoharmfulmediaandentertainmentcontent.Forthatweneedthecooperationofallsectorsof our society, including parents, educators, and lawenforcement agencies. It should be noted that, giventhe enormity of the task at hand, FPB simply doesnot have resources to go it alone. We cannot reacheverycornerofourvastcountry,orindeedbeineveryhousehold. It is in this context that we call on thelegislature to strengthen the punishment regime for
crimesperpetratedagainstchildren. In thesamevein,we call on industry and internet service providers toimplementfiltersandblockingmechanismstopreventchildrenfrombeingexposedtoinappropriatecontent.
As the FPB, we are fully aware of the need for, andimportance of, partnerships in implementing ourmandate. We, therefore, continue to reach out to allrelevant entitieswho share our objectives.We engagerobustly with government departments to extend ourreachandmakeameaningfulimpactinsociety.
We are called upon to strike a balance betweenconflictingconstitutionalrights,whichincludetherightsofchildrencontainedinSection28oftheConstitutionontheonehand,againstthebroadersocio-economic,commercialandartisticrightsontheother.
Former State President, Dr Nelson Mandela, at thelaunchoftheNelsonMandelaChildren’sFund,inMay1995, aptly summed up the need for cooperation inprotectingchildrenandyoungpersons,whenhesaid:“Wecomefromapastinwhichthelivesofourchildrenwere assaulted and devastated in countless ways.It would be no exaggeration to speak of a nationalabuse of a generation by a society which it shouldhavebeenable to trust.”Heproceeded to state: “AswesetaboutbuildinganewSouthAfrica,oneofourhighestprioritiesmustthereforebeourchildren.Thisisessentiallyanationaltask.Theprimaryresponsibilityisthatofgovernment, institutionsandorganisedsectorsofcivilsociety.Butatthesametime,weareallofus,asindividuals,calledupontogivedirectionandimpetustothechangesthatmustcome.”
Wewillalldowelltoheedthestatesman’swisecounselinourendeavourtobuildabetter,saferandmoresecuresocietywhereourchildrenhaveanopportunitytoreachtheirfullpotential.
Political mandate and reporting
The FPB reports to theMinister of CommunicationsasitsExecutiveAuthority,aswellasParliamentastheultimate oversight body. In the reporting period, wesharedplatformswiththeMinistryandDepartmentofCommunications (DoC) in joint community outreach,awarenessandImbizocampaignsacrossthecountry.These involved all other entities reporting to theMinister.
FILM AND PUBLICATION BOARD
Key activities for 2017/2018
Phase one of the Online Content Regulation systemwasfullyimplementedandtherolloutofphasetwohadcommenced.Throughthiswehadcreatedaseamlessand quicker process of distributor registration andcontentclassificationsubmissions.
We have managed to register and license no fewerthan six online content distributors, twomore than intheprevious financial year. Engagements are ongoingtobringevenmoredistributorsonboard.
FPBhasremainedtheonlymemberoftheInternationalAssociation of Internet Hotlines (INHOPE) on thecontinent.Throughthismembership,weareabletogetundesirable,inappropriateandoffensiveonlinecontenttakendown.FPBhadaseatontheINHOPEBoarduntiltheendofAugust2017.
Inthereportingperiod,welaunchedapublicconsultationprocessonthereviseddrafttariffs,whichwillformthebasisofournewfundingmodel.
Theone-yearcertificatecourseinclassificationlaunchedinconjunctionwiththeUniversityofSouthAfrica(UNISA)hasreceivedsatisfactorysupport,withourcounterpartsinKenyashowinganinterestinenrollingtheirclassifiers.
Asstatedabove,theAmendmentBillhasbeenadoptedby the National Assembly and is currently before theNCOP.TheCouncilisstillfullyconstitutedandcontinuestodispatchitsmandateinaccordancewiththedictatesoftheAct.
The Appeal Tribunal is fully constituted and this year,theAppealTribunalreceivedandadjudicatedoverfourappeals,aslightincreaseontheaverageoftwoappealsperannumoverthelasttwoyears.
The only blight on the organisation for the reportingperiod is the fact that we lost our entire ExecutiveManagementteamduringthe2017/2018financialyear.
However, due to the resilience of staff and thestewardshipofCouncil, I amhappy to report thatweachievedalmost90%ofouroverallannualtargets.
Conclusion
Inconclusion,Iwouldliketostatethateventhoughwehave hadmore than oneMinister during the financialyear, our accountability instruments remained robust,andtherewasnointerruptionofservicedelivery.Onthecontrary,thetransition intheDepartmentwassmoothandCouncil issatisfiedwiththelevelofsupportithascontinuedtoreceive.
Weremainfocusedonthetaskathandandwebelievewestillhavealottocontributeinshapingthenecessarysocietal awareness about the benefits and potentialdangersof the internetandaccesstoonlineservices.Finally,wewill complete the tariff reviewprocess andensurethatallstakeholdersaretakenonboardaswebuildabettersocietyunderpinnedbythekeyprinciplesincludedinboththeConstitutionandtheNDP.
Atthisstage,IwouldliketothankCouncil,theMinister,AppealTribunal,staffandmanagementoftheFPB,forongoingdedicationandsupportforalltheinitiativesputinplacetofullyachieveourmandate.
_____________________________Mrs NF Thoko Mpumlwana CouncilChairperson
ANNUAL REPORT 2017/18
The level of public interest and conversation thatthe ‘Inxeba’ appeal garnered has shown to SouthAfricansthattheprocessofclassificationisacomplexsystem that has to reflect broad societal norms andvalues. The FPBmust contribute to social cohesionin South Africa without unreasonably or unjustifiablylimitingotherrights.Classification includesexaminingcontent against the purpose, guiding principles andclassifiable elements of the classification guideline,yet proportionally balancing rights enshrined in theConstitution,otherActsandlegalprescripts.
The‘Inxeba’(TheWound)appealprovedaninterestingcase study for the FPB in its efforts to contribute tocohesion in contemporary society. The appeal wasa rareoccurrence in that itwassubmittednotby thedistributor,butbythepublic.Our lastdeliberationsonpublic appealswere in 2012, on the painting entitledTheSpear,andin2014,inthematterofCONDEFSAonthewebsitewww.ulwaluko.co.za.
The 16 LS classification decision given by the FPBfor ‘Inxeba’ – The Wound was overturned by the
Media engagement has improved considerably and we have created dialogue on our social media platforms through numerous
campaigns.
FILM AND PUBLICATION BOARD
Appeal Tribunal, which assigned an X18 restrictivedistribution category. The Appeal Tribunal decisionwas opposed by the distributor in the NorthernGautengHighCourt.Prior to theset-downdate fortheheadsof argument, all parties settled for an18age-restriction to allow for the film to be screenedand sold in registered premises. Judgment wasmade by Judge Raulinga, overturning the decisionof the Appeal Tribunal. The judge overturned thedecision basedon the contravention by theAppealTribunal of the key principles of the Protection ofAdministrative JusticeAct. The judge ruled that theprocess undertaken by the Tribunal to be null andvoid and the original decision by the FPBof 16 LSnowstands. The judgment, and theentireprocess,hasprovidedmanylessonsfortheFPB.Ithasmadeit apparent that themandate to classify in linewithsocietal valuesandnorms is a complexmatter in adiversesocietysuchasours.
The Spear, ‘Ulwaluko’ and ‘Inxeba’ were significantchallengestotheFPBinitseffortstocreatesocialcohesioninacountrythatisstilldeeplydividedacrossracial,culturalandsocio-economicclassdivisions.Furthermore,theseworkscreateadebateontheproportionalbalancingofrightsagainstthepurposeoftheclassificationguidelinesthatmustbalanceclassificationofcontentwiththerightstofreedomofexpression,accesstoinformation,equalityandhumandignity.
Classification Guidelines Review
It is for this reason that classification guidelines arecontinuously reviewed to assess their alignment tosocietalnormsandstandards.Thecurrentclassificationguidelines were last reviewed in 2012, with partialadditions inOctober 2014.Historically, the guidelineswere reviewed every two years, but the FPBCouncilchangedthistoeveryfiveyearsasitfeltthattwoyearsistooshortaperiodtoenabletheorganisationtotestandassessshiftsinsocietalnormsandstandards.
Thereviewoftheguidelinesstartedinthe2017/2018financial year with a discussion paper launched in
Gauteng,followedbypublicconsultationsinallnineprovinces.ThediscussionpaperlaunchedinFebruaryprovided an opportunity for the FPB to illustrateresearchthathasbeenconductedonthe impactofmediamaterialonchildren,publicperceptionsurveys(convergence surveys), aswell as classification andfilmdistributiontrends.Thediscussiondocumenthasraised somepertinent questions,whichweused tocanvass public input. These have ranged from thesuitabilityoftheFPBageratingandthepsychologicaldevelopmentofchildren,tohowweshouldconsiderculturalrightsinfuture.Stakeholderinputswillinformthe revision,afterwhichpublicconsultationswill beconductedonthereviseddocument.
Appointment of New Classifiers
Classifiers are appointed on four-year independentcontractsbytheFPBCouncil.ThepublicisinvitedtonominatecandidatestobeClassifiers.TheymustbeSouthAfricancitizensasdeterminedinChapter24A(2)(b) of theFilmsandPublicationsAct andcomplywithanyotherrequirementsoftheAct.
Followingan intensive recruitment exercise,Councilappointedanewpoolof38classifiersinOctober2017.ThisdiverseandrepresentativeteamofSouthAfricanprofessionals – comprising13 classifiers (appointedfor a second term), 15 new classifiers, five gamersand five personswith disability. Theywill undertakethe content classification on behalf of the FPB forthe next four years. The group is representative inrace,genderandage,andhailsfromawiderangeofacademicandprofessionalworkbackgrounds.
Classifiers should have a broad understanding ofSouth African Constitutional principles, knowledgeof FPB legislation, the classification guidelines, theFilmsandPublicationsRegulations,andtheabilitytointerpretandapplylegislation.Inaddition,theyshouldhave excellent report writing, critical thinking andanalyticalskills,andstrongpersonalandprofessionalintegrityandworkethic.Classifiersmusthaveagoodunderstanding of visual and digital media and newmediatechnologies.
Classification Trends
Forthefinancialyear2017/2018,FPBclassifiedatotalof1886eligiblesubmissions,whichamountedto2726
ANNUAL REPORT 2017/18
hours (163566mins) of feature content equalling341working days, excluding value addedmaterials (VAM)andtrailers.Ofthetotalfeatureshours,only378hourswerecontentsuitableforfamilyviewing(A-PG)whilst1620hourswerefor13-16years.Interestingisthat247hoursoffeaturecontentsuppliedto,andconsumedby, our society were classified as adult viewing (18)- 131 hours (16 working days) more than what is
supplied to themarket for family viewing.Of concernhas been the escalating violent content, followed bystrong language, encountered by FPB classificationcommittees. Considering the high levels of violentcrimesinSouthAfrica,thereisaneedforustotryandunderstandwhetherearlyexposuretocertaintypesofcontent contributes in anyway to the challenges thecountrycurrentlyfaces.
Male Female
Belowgraphicillustrationsindicatethebreakdownofthepoolofclassifiersintermsofgender,ageandrace.
Genderbreakdown
Agebreakdown
18
20
20-30 31-40 41-50 61-7051-60 71-80
7 7
6
15
21
16
14
12
10
8
6
4
2
0
25
20
15
10
5
0
FILM AND PUBLICATION BOARD
The classification process takes into account thescourge of child abuse in South Africa and therevictimisationofsexualabusesurvivorswhenassigningconsumer advice for sexual violence (SV). This goesbeyond child abuse to gender-based violence, abuseandvictimisationbasedonsexualorientation.
In the year under review, we saw an emergence ofcontent that contained elements of gender-basedviolence and violence against children. The mostchallengingclassificationthatFPBhadtodealwiththathadtheseelementsarticulatedabovewastheAfrikaansshortfilmtitled‘Langsaan’featuredattheSilwerskermFees.Thefilmwasoriginallysubmittedaspartofagroupoffilmsforexhibitioninafilmfestival.Uponexaminationofthesynopsisofthefilm,thecommitteereferreditforfullclassification.Thefilm‘Langsaan’highlightshiddendangersfacedbytheyoutharoundsexualexploitation.Itisacompellingdramathatbringstolifethestoryofagirlwhobecomesavictimofsexualexploitationbythoseshemosttrusts–herclosestfamilylivingnextdoor.Thefilmfeaturedachildactressinasceneofsexualconductsimulatedand implied through the use of breakaway camera
scenes. As it was a short film, it portrayed a younggirl losingher innocence,theperpetratorneverbeingbrought tobookand familymembersneverknowingaboutthesexualexploitation.Duetothethinlinebetweensexualexploitationofminorsclassifiedaschildpornography,theFPBhadtosubjecttheexaminationofthisfilmtotwodifferentclassificationcommittees. The results examined the title and wereconflicted. One committee felt there was a bona fidestoryline that raised awareness of just how close thedangerswere,whilsttheothercontemplatedthedefinitionofchildpornographyinrefusingclassificationofthefilmintheabsenceofaconcretepro-socialoutcome.Thefinaldecisionassignedto‘Langsaan’bytheFPBwas18SV.
Appeals Received
In theyearunder review, theAppealTribunal receivedfourappeals fromthe totalnumberof titlessubmittedfor classification. The Tribunal upheld only one ofthese classification decisions. Appeal rulings serveasan important tool for theFPBclassifiers to identifyshortcomingsintheinterpretationandapplicationoftheFPBGuidelines.
CT D H IAT L N P S SV V B PPS
%oftotal 0.21 12.78 7.07 1.21 36.19 4.28 5.28 11.85 1.93 50.11 0.43 0.71
Nooftotal 3 179 99 17 507 60 74 166 27 702 6 10
No.oftitles
2017/2018consumeradvice:generalmaterial
Classifiableelements
800
700
600
500
400
300
200
100
03
179
99
17
507
60 79
166
27
702
6 10
ANNUAL REPORT 2017/18
Registrations and renewals
A total of 573 new registrations was processedduring the 2017/2018 financial year, a 21.9%increase over 2016/2017. There was a decline of17% of new registrations between 2015/2016 and2016/217. Gauteng had themost registrations (211),followed by KwaZulu-Natal (161) and Western Cape(106).ThelowestnumberofregistrationsnationallywasfromNorthWest(six).
There were three international registrations forthe financial year, a 16.5% decline compared to2015/2016 to 2016/2017, due to distributors closingandmarketshift.However,2363annualrenewalswereprocessedduring the2017/2018financialyear,whichisa25%increasecomparedtothe2016/2017financialyear.Gautenghadthehighestnumberofrenewals(1079), followed by KwaZulu-Natal (386) and WesternCape(373)renewals.Therewasonlyoneinternationalrenewal in 2017/2018. Some 465 applications wererejectedfornon-complianceandnolongerconductingbusiness. A strategy has beenput in place to refunddistributors who no longer require a licence and tofollowuponthosewhorequiresupportingdocuments.
Tariff Review
TheFPBhasreviewedandrevisedthepricingmodelofitscurrentregulationfeestructureandhasdevelopedan
appropriateandjustifiablepricingmodelforallplatformsand distributor sizes to ensure that the organisationremainsviable.Therevisedtariffsstructurewillestablishapenaltysysteminlinewithinternationalstandards.
Publicandstakeholderconsultationswereheldtosolicitinputs to the draft tariff structure. Inputs have beenincorporated into the draft tariff document,whichwillneedtheMinister’sapprovalbeforebeinggazetted.
Online Content Regulation
During the year, the FPB licensed five online contentdistributors thatwill formpart of the co-regulating, toensurecompliancebyonlinestreamingservicestotheFPB Classification Guidelines. A distributor registerswiththeFPBasadistributorofthecontentintermsofSection18oftheFilmsandPublicationsAct.AmutualexecutionoftheagreementbetweentheFPBandtheonline distributor constitutes such registration andauthorisesthedistributortoactasalicenseddistributorof content.Adistributor’s licence is renewedannuallybythesigningofanonlinedistributionagreementandpayment of the annual licence fee determinedby theMinister.
Workshopswereconductedwithonlinedistributorsaspertheco-regulationagreementand25classifiersandcontentaggregatorsweretrainedontheapplicationoftheclassificationguidelines.
Movie Title Applicant Application Date
FPB Classification Committee Decision
Appeal Tribunal Decision
High Court Ruling
DespicableMe3
UnitedInternationalPictures(UIP)
14June2017 7-9PG PGV
Jumanji:WelcometotheJungle
SterKinekorEntertainment
7December2017
13LV 13LV
Inxeba–TheWound
MenandBoyFoundationHouseofTraditionalLeaders
6March2018 16LS X18LNPSV 16LS
GringoEmpireEntertainment
12March2018 18DLSV 16DLSV
FILM AND PUBLICATION BOARD
The FPB has gone a long way in developing anautomatedsystemthatwilleaseFPBprocesseswhenservicing industry and will better service the onlinecontentdistributionmarket.TheFPBhassuccessfullylaunched a first-of-its-kind Online Content Regulation(OCR)systeminAfrica.ThissystemwillassisttheFPBtomeetthedemandsofan industryundergoingrapidtransformation towards online-driven platforms. TheOCR allows distributors to submit film content onlinefrom anywhere around the globe for classification bythe FPB. It is envisaged that the systemwill improveturnaround times and service delivery to the FPB’sclientsandstakeholders.
In addition, the FPB has set its sights on improvingorganisationalefficienciesandintendstobeincreasinglytech-savvy,usingtechnologymorebroadlybycreatingmobile platforms to reach out to stakeholders andeffectively reducing the cost of doing business whilstdeliveringonitsmandate.
Labelling Strategy
AlabellingstrategyhasbeendevelopedtosafeguardtheFPBlogoanditsusebydistributorsaftertheclassificationof content. The strategywill be incorporated into theOCRsystemaspartofphasetwoofitsdevelopment.
ThetrademarkpolicydefinesandidentifiesthepatentedFPB trademarks (FPB classification triangle and theslogan‘WeInform.YouChoose’),confirmsownershipofthesetrademarks.ThepolicyfurtherregulatestherightusebyauthorisedusersanddefinesprohibitedactionsandusesbyauthorisedusersoftheFPBtrademarksbyjuristicandnaturalpersons.
Child Protection
The FPB has a child protection unit that consists oftwochildprotectionofficersandtwoonlinecompliancemonitors. The FPB is amember of INHOPE,which isaninternationalnetworkofhotlinesoperatorsthatdealswith child pornography content distributed online. Thenetworkiscommittedtoensuringthatchildpornographyiseradicatedfromtheinternet.
ThechildprotectionteamoftheFPBworksverycloselywith law enforcement agencies. Their partnershipincludes analysis of suspected child pornographyimages for criminal cases under investigation by the
SouthAfricanPoliceService (SAPS).Membersof theteamacquiredtheircontentanalysisskillsandhavebeencertifiedandaccreditedbyINHOPEasinternetcontentanalysts.Thechildprotectionteammanagestheanti-child pornography reporting tools: the toll-free hotlineand the child pornography website. These reportingtoolsallowmembersofthepublicandstakeholderstoreport child pornographywebsites discovered on theinternet.
Inthe2017/18financialyear,456casesofsuspectedchild pornography were reported through the FPBhotline website. Eighteen of these cases had to bereferredtootherINHOPE-affiliatedhotlinesforanalysis.Sixteen of the cases were subjected to analysis forchild pornography, a total of 116 960 images andvideoswereanalysedandexpertanalysisreportsweregeneratedtoformpartof theevidenceforthecourts.AsaresultoftheexpertanalysisreportsissuedbytheFPB, three cases were successfully prosecuted andthree convictions issued. Two prominent cases wereinGauteng at the BoksburgMagistrate Court, wherethe perpetrator was given 32 life sentences and anadditional 170 years’ imprisonment; and another intheWestern Cape, Bellville, where a paedophile wassentenced to three lifesentenceandanadditional57years’imprisonment.
Compliance Monitoring
The FPB online monitoring sub-unit continues toensure compliance with the Films and PublicationsAct, conducting inspections of online distributorsand monitoring compliance. Distributor complianceis monitored for registration, submission of materialfor classification and display of classification detailson material displayed for consumption. A total of3886online inspectionswasconducted,whichweremade up of 1 861 online inspections, 752 analysisverifications, 456 FPB hotline reports and 817 socialmediainspections.
The physical compliance monitoring team conductsinspections of more traditional distribution platformssuch as DVD shops, cinemas and internet serviceproviders (ISPs). A total of 11 183 inspections wasconducted, which included 8 118 inspections onregistereddistributors (3430unregistereddistributorswere identified), 1 386 ISPs and 2 115 publications.Some116noticeswere issuedfornon-complianceof
ANNUAL REPORT 2017/18
unclassifiedmaterial,unregistereddistributorsandnon-renewaloflicences.TheFPBconducted93raidswithlaw enforcement agencies, which resulted in 41 559discsbeing confiscatedand60casesbeingopened.Atotalof113686discswithastreetvalueofR11368600 were destroyed. Our regional coordinators wereasked to testify in court cases as a result of the101analysisreportstheyhadwritten.
Research Focus Groups – Awareness on FPB Classification Guidelines
Theresearchunit’sthree-yearfocusgroupprogrammeclosedattheendofthe2017/2018financialyear,with186 learners,educatorsandparents from15schoolsin four provinces (Eastern Cape, Gauteng, KwaZulu-Natal and North West) having participated. Issuesdiscussedindepthincludedchallengesassociatedwithsmartphonesinschoolandhomelives.
Objectives of the programme
The programme set out to ensure continuity in therelationships between the FPB and participatingschools,once-offvisitstoschoolshavingbeendeemed
inadequate toensure that theFPB’smandateand itscyber-safetymessagingwouldhavethedesiredeffects.
Focusgroupdiscussionssupplementedthedatagainedthroughourquantitativemethods,givingusinsightintoattitudes to, and reasons and motivations for onlinebehaviour,andtheextentofknowledgeofgoodcyber-citizenshipforallthreestakeholdercategories.
Summary of key findings
Understanding of the FPB’s mandate was advancedamong theselectedcyber-champions.Educatorsandlearnersreported improvedsensitivity toonlineabuse,withsomereportingmarkedbehaviouralchanges.
Life orientation educators and school principals areenthusiasticaboutongoingengagementwiththeFPB,astheyfeelcyber-safetyeducationiscritical.Weintendtousethefindingsfromthesefocusgroupstolobbyforintegrationofgreatermedialiteracyinthelifeorientationcurriculum,enabling learners tobe responsiblemediaconsumers.WewillusetheinformationfromthefocusgroupstobetterinformthecontentandstructureoftheFPBoutreachandawarenesscampaigns.
Prior knowledge of the FPB and its mandate
WastodaythefirsttimeyoulearntabouttheFPB?
%PROPORTIONALTO
N=PERPROVINCE
EasternCape Gauteng KZN NorthWest
Yes No
62%
38%
49% 51%
25%
75%
38%
62%
100
90
80
70
60
50
40
30
20
10
0
FILM AND PUBLICATION BOARD
Human Resources
The human resources (HR) unit has focused onsupporting the capacity and capability componentsof the strategyandensuring that the requiredhumancapitalresources,skillsandperformancerequirementsareinplace.
The organisational structure was reviewed in termsof future capacity requirements and the FPB hasdecidedtoundertakeaformalorganisationaldesignreviewprocess,whichwillconfirmthatthestructuresupports the business plans and strategy in future.This exercise will be a prerequisite for addressingcurrentrequestsbystaffforajobregradingexerciseattheFPB.
The FPB has continued to take cognisance of equityprofilesinitsrecruitmentandstaffingprocesses.Forthe2017/2018period,theorganisationreportedgenerallyequitable representation across race and gender.Currently,56%ofstaffarefemale.Forsometime,theorganisation has been under-represented in the areaofpersonswithdisability.During the reportingperiod,goodprogresswasmade and personswith disabilitynowconstitute2.4%ofthestaffcomplement(againstatargetof2%)and13%oftheclassifierpoolasaresultoftheaforementionedtargetedselectionprogramme.
The FPB ran its fourth internship programme from1 October 2016 through to 30 September 2017.Ten interns were appointed to the following units:Finance, Legal, Client Support, ICT, HR, Research,Communications, Governance, Classification andOperations.This teamofyoungprofessionalssettledinwellandenjoyedabroad-basedlearningexperienceat the FPB. In return, the interns provided the FPBwith significant administrative support for a varietyof projects and programmes. The programme wassupported by a career development and personalexcellence intervention that assisted the interns toprepareforpost-internshipcareers.
Oftheeightinternswhocompletedtheirfullinternship,two were appointed permanently in the organisation,whilethreewereappointedonfixed-termcontracts.
Team-basedtraininginterventionsforthereportingperiodincluded the abovementioned career developmentprogrammeforinternsandselectedjuniorstaffmembers,internalaudittrainingfortheInternalAuditteam,Prince2projectmanagementfoundationcourseandastaffvaluesworkshopprocessthatstartedinQ4.
The recruitment function ishandled in-houseand thisresulted in a response handling and placement costsavingofR343265.
Familiarity with the FPB’s classifiable elements
Horror
Sex
Drugs
Language
Violence
Prejudice
Sexual
Violence
Nudity
Imitable
Acts
LEVEL OFFAMILIARITYIN
%
Correctanswer Incorrectornoanswer
24%
75%
97.4%
2.6%
76.3%
23.6%
100% 100%
0%0% 2.6%
97.4%
19.4%
80.6%
92%
8% 12%
88%
100
90
80
70
60
50
40
30
20
10
0
ANNUAL REPORT 2017/18
The in-housingofthepayrolladministrationandqueryfunctionsinceOctober2014continuestoconstituteanannualcostsavingofapproximatelyR520000.
Communications and Public Education
Wehavecontinuedto implement thecommunicationstrategy of improving the FPB’s brand by deliveringhigh-visibility and high-impact campaigns. This wasdelivered through multi-unit campaign approachesimplemented in the previous financial year. Throughthese campaigns, we launched digital literacycampaignsonsocialmediawithcutting-edgethemesand digital concepts that increased and improvedonlinetractionandimpressions.
Thegender-basedviolencestakeholderdialoguehostedduringWomen’sMonthinpartnershipwiththeCommissionforGenderEqualityprovedoneofourmostsuccessfulmulti-unitcampaigns.The robustconversationscarriedon social media through #GBVInMedia #FPBDialoguesawustrendingnumber twoonTwitter.Thethemeforthedialogueswas‘Sexualviolenceanditsprevalenceinthemedia’. The dialogue launched the review thatwillmeasure whether the classification guidelines are stillreflectiveofSouthAfrica’ssocietalnorms.
SaferInternetDay(SID)wascelebratedintheWesternCape with the theme ‘Create, connect and sharerespect:Abetterinternetstartswithyou’.Childrenaregrowinginaconnected,digitalisedsocietywheretheyareexposedtotechnologybeforetheyevenunderstandtherisksassociatedwithonlineactivities,andareoftenexposed to inappropriate content. Teachers, parentsand learnerspledged topractice safer internet habitsand report child pornography. The pledge took onspecialsignificancewhenDeafSAtaughtalldelegatestomake thepledge insign language.Wecontinue tochairtheSaferInternetDayCommitteeinSouthAfrica.Our country is one ofmore than 100worldwide thatmarkSID,whichiscelebratedonthesecondTuesdayofthesecondmonthannually.
The schools outreach programme is still one of ourmost successful campaigns and we have started
engaging schools for the deaf. In the next financialyear,weareplanningtoincludeschoolsfortheblindanddisabled.
Workshops and Engagements conducted
Stakeholders engaged Engagement number
Numberofparents 1148
Numberofeducators 728
Numberofschools 65
Numberoflearners 19711
Lawenforcementworkshops 598
In-cinemaworkshops 271
Media Relations and Social Media
Mediaengagementhasimprovedconsiderablyandwehave created dialogue on our social media platformsthroughnumerouscampaigns.
The release of the Kalushi movie afforded theorganisation an excellent platform toposition itself asa thought-leader thatencouragesrobustconversationonsocial illsandsupportslocalcontent.Alsotrendingwas the #Backtoschool campaign, which educatesparents, learners and teachers about the dangers ofposting imagesofminors in uniformon socialmedia.Thecampaignwasreceivedpositivelybymediaandledto various interviews, resulting in both broadcast andprintmediacoverage.
Unfortunately, a tweet that we released as a hoaxwasmisinterpretedasinferringthattheLesbian,Gay,Bisexual,Transgender,QueerandIntersex(LGBTQI+)communitywas adding pedosexuals to its acronym.This created quite an uproar, particularly amonginternational Twitter users.We subsequently deletedthe tweet and apologised for the furore it caused.This was a lesson learnt in content verification andcontingency measures have been put in place topreventarecurrence.
FILM AND PUBLICATION BOARD
Media Coverage
Media Statistics % Annual Increase (Target) 2016/2017 baseline 2017/2018 TargetsAdvertisingValueEstimate(AVE) 944% R20745741 R216607575
Circulation 368% 276244830 1294387749
NumberofClips 150% 1380 3458
Social Media
Social Media Platform % annual increase Facebook 20%increaseinpageengagements
Twitter 354%increaseinpageimpressions
Strategic Partnerships
The year under review saw the development of apartnership with the United Nations Population Fund(UNFPA)andtheCommissionofGenderEquality.Themainaimistodriveconversationwithsociety,especiallyyouths,onsocialissues.Thepartnershipwasresponsiblefor the Women’s Month ‘Gender-based violence inmedia’dialogueandthe16DaysofActivism‘Genderviolenceandtheusageoftechnology’dialogue.Thesetwodialoguesincludednon-governmentalorganisations(NGOs) in child protection, youth development andgenderequality.
In terms of our two flagship projects – the review ofthe tariff structure and the review of the classificationguidelines – we implemented a more interactiverelationship with our stakeholders, visiting all nineprovincestoengageindustrystakeholders,society,civilsociety,caregiversandlawenforcementagentsontheimpactoftheFPBontheirdailyworkandinteractions.
Internationalengagementswereimplementedinlinewiththeapprovedschedule. In termsof thememorandumofunderstandingbetweentheFPBandtheKenyaFilmClassification Board (KFCB), the FPB attended andpresentedattheinauguralKenyaFilmConvention.Weparticipated intheCommonwealthTelecommunicationOrganisation’s ICT forum to engage ICT stakeholdersand keep abreast of trends. As media convergencerequires us to proactively seek ways of classifyingcontentondifferentplatforms,weattendedtheSouthernAfricanDevelopmentCommunity(SADC)ICTMinistersmeetingandtheClassificationConference inSweden.InlinewithourINHOPEmembership,weattendedtheannualgeneralmeeting,forumandtraining.
ANNUAL REPORT 2017/18
FINANCIAL TRENDS
Revenue Collection
The total revenue of R100 298 878 received by FPBfortheyearcamefromoperatingsubsidiesgrantedbytheDoC(R91684000),regulationfees(R7741329),interestreceived(R863674)andotherincome(R9875).This incomewas, however, not sufficient tomeet therisingoperatingcosts.
Agrant subsidy increasedby6%on theR86472000receivedinthepreviousfinancialyear.RegulationfeesofR7741329weregeneratedinthecurrentfinancialyearcompared toR6718708 in thepreviousfinancial year,an increase of 15%. The increase on regulation fees isattributabletoonlinelicensingfeesandclassificationfees.
Registration fees continued to decline in linewith thedropinthenumberofnewregistrationsofmoviesandgamesdistributors.FPBinvesteditssurplusfundswiththeCorporationforPublicDeposits(CPD)andgeneratedinterestofR863674,lessthantheR1062566oftheprevious year, but attributable tomostprojects in theyearunderreviewbeingexecutedontime.
TheFPBispilotinganonlinecontentregulationsystem,whichisscheduledtogoliveinthe2018/2019financialyear.This initiativewillensurethatcontent isclassifiedanytimeandanywhere,whichisexpectedtoboostouronlinelicencerevenue.
Operating Expenditure
Operatingexpenditure increasedby7%,themaincostdriverbeingpersonnel.Administrativecostswerebroughtdownby5%,fromR32752165toR31091309,andan accounting surplus of R7 466 311 was recordedcomparedtoR3840748inthepreviousfinancialyear.
Cash Flow
CashandcashequivalentsinthestatementoffinancialpositionattheendoftheyearwereonlyR15297830,allcommitted.
Sources of Revenue
2017/18
Estimate Actual Amount Collected (Over)/Under Collection
R’000 R’000 R’000Operationalgrant 91684 91684 -
Regulationfees 8016 7741 275
Otherrevenue - 9 9
Interestincome 626 864 (237)
Total 100 327 100 298 29
Sources of Revenue
2016/17
Estimate Actual Amount Collected (Over)/Under Collection
R’000 R’000 R’000Operationalgrant 86472 86472 -
Regulationfees 6065 6718 (654)
Otherrevenue - 80 (80)
Interestincome 772 1062 (290)
Total 93 309 94 332 (1 024)
FILM AND PUBLICATION BOARD
GOVERNANCE
ANNUAL REPORT 2017/18
Council and Committees
TheFPB’sCouncilwasestablishedintermsofSection3(1) of the Act and is the Accounting Authority intermsofSection49(1)and(2)(a)ofthePublicFinanceManagement Act. The Council reports on the FPB’sperformance to the Executive Authority in terms ofSection4A (1)of theAct.Counciland itscommitteesarefullyeffectiveincarryingouttheirwork.
AnewAppealTribunalwasappointedduringthisfinancialyearandmembershavestartedtheirworkinearnest.
Institutional Governance
ThefollowingisabriefoutlineoftheactivitiesofCouncilanditscommitteesforthisreportingyear:
Council
Councilisfullyconstitutedandhascontinuedtodoitswork diligently. Our relationship with theMinistry andParliament has remained cordial, and our reportinghasbeenstrictly in linewith legislationandapplicableNationalTreasuryRegulations.
Audit and Risk Committee
The Audit and Risk Committee continues to playa pivotal role in ensuring general compliance withfinancial regulations and governance obligations. TheCommittee continues tobe thoroughand rigorous inensuringthatweadheretosoundfinancialcontrolsandmitigationofrisks.Thein-houseinternalauditunithasgainedmomentum, and the process to gradually doawaywiththeco-sourcedmodel,withlimitedfinancialauditing,isongoing.
Council hascontinued to receiveassurance that FPBwascompliantwiththeprovisionsofthePublicFinanceManagementActandtothatend,quarterlycompliancereportshavebeenconfirmedasaccurateandmeetingallregulatoryrequirementsbyNationalTreasury.
Chairpersons Committee
ThisCommittee,comprisingChairpersonsofallCouncilCommittees, has the responsibility of attending to
urgent corporate governance matters in betweenCouncil meetings. The Committee focusesmainly onmonitoring strategy implementation and compliancewiththeCodeofEthics.Duringtheyearunderreview,theCommitteeheld fourquarterlymeetingsandthreespecialmeetings.
Finance Committee
TheFinanceCommitteeisoneofthemostimportantCouncilCommitteesasitensuresthattheorganisationisfinanciallysound.TherobustnessoftheCommitteein scrutinising financial statements and ensuringaccurate financial reporting remains one of the keypillars of FPB’s success and financial sustainability.Duringtheyearunderreview,theFinanceCommitteeheld four quarterly meetings and two joint meetingswith the Audit and Risk Committee in line withthe Annual Council Schedule. The joint meetingsconsidered the Annual Financial Statements, AnnualPerformance Information Report and the Auditor-General’sManagementReport.
Human Resources (HR) and Remuneration Committee
The HR and Remuneration Committee is primarilyresponsible for monitoring the human capitalmanagement policies and all related aspects oforganisational capacity, including training andremuneration. During the reporting period, theCommittee held all four scheduled meetings. TheCommitteehascontinuouslyreviewedpoliciestoensurecomplianceandalignmentwithrelevantlegislationandthenationalpolicyframework.TheCommitteeheldfourquarterlymeetings.
Operations and ICT Committee
TheOperationsandICTCommitteeisresponsibleforoverseeing all aspects of the organisation’s strategicoperations, which include classification, distributorregistrations,compliancemonitoring,childprotection,communications,research,ICTgovernance,aswellasstakeholderrelations.Duringtheperiodunderreview,the Committee oversaw the launch of the conceptdocumentforthereviewofthetariffmodel.
FILM AND PUBLICATION BOARD
Corporate Governance
All governance structures, which include Council, itscommittees,aswellastheAuditandRiskCommittee,areingoodstanding.
TheAppealTribunalisinplaceandisfullyconstituted.
AllCouncilmembersfiledtheirdeclarationsofinterestswithinthestipulatedtimeincompliancewiththePFMAandPublicServiceActof1994,asamended.
CouncilmemberswereremuneratedbasedonNationalTreasuryGuidelines.
The Council Charter, Code of Conduct and Ethics,as well as Terms of Reference for committees werereviewed and updated. The governance agreement,withtheExecutiveAuthoritywasreviewedandadoptedfortheyearunderreview.
The FPB’s governance instruments are, therefore,uptodateandvalid. IcanconfirmthattheFPBis ina healthy state of finances, and therefore remains agoingconcern.
Meetings
CouncilandallcommitteesheldmeetingsinaccordancewiththeAnnualCouncilProgrammeasfollows:
Council – 11 Meetings
Ordinary Meetings14June201714September201706December201702March2018
Special/urgent Meetings 17May201727September201719October201730November201725January201826February201816March2018
Workshops21-22August2017–CouncilStrategyReviewOctober2017–CouncilStrategyPlanning
Audit and Risk Committee – 6 Meetings11May201726May2017(JointmeetingwithFincom)27July2017(JointmeetingwithFincom)05September201728November201730January2018
Chairpersons Committee – 7 Meetings
Ordinary Meetings12June201714August201707October201716February2018
Special/urgent Meetings15March201806April201726June201728August2017
Finance Committee – 6 Meetings11May201726May2017(JointmeetingwithAC)27July2017(JointmeetingwithAC)05September201728November201720February2018
Human Resources and Remuneration Committee – 5 Meetings16May201716August201721February201808March201806November2017(Specialmeeting)17November2017(Specialmeeting)
Operations and ICT Committee – 4 Meetings29May201729August201728November201708February2018
Appeal Tribunal - 4 Hearings28June2017–Inxeba-TheWound(Film)17October2017–Gringo(Film)21December2017–Jumanji(Film)13February2018–Inxeba-TheWound(Film)13April2017–TrainingWorkshop
ANNUAL REPORT 2017/18
ICT Steering Committee – 5 Meetings20April201715August201708November201726January201807February2018(Specialmeeting)
Member Attendance
Council Number of Council and Committee meetings attended
MrsNFTMpumlwana(Chairperson) 14**
MsSMangena(DeputyChairperson) 20
MrMDitlhake 19
AdvMudunungu 12*
MsYMakhasi 18
MsNDubazana 19
AdvLNevondwe 15*
DrNSkeepers 20
MsVMhlakaza 10
Note: Attendance above includes all Council andCommitteemeetings.
** Council Chairperson attends only Council andChairpersonsCommitteemeetings.
*ThesemembersbelongonlytooneCouncilcommitteeeach.
Audit and Risk Committee Number of meetings attended
MsZNkosi(Chairperson) 6
DrNSkeepers 5
MrMGDhladhla 6
MsSMangena 5
Internal Audit
The Internal Audit activity of the FPB obtains itsmandate from the Public Finance ManagementAct (PFMA) and its regulations. The Internal Auditfunctionwasestablished in termsofSection51 (1)(a)(ii)ofthePFMA.
The FPB has established a system of Internal Auditunder the control anddirectionof theAudit andRiskCommittee. As such, the Committee has during thefinancialyearendedMarch2018reviewed:• TheactivitiesandeffectivenessoftheInternalAudit
function;• Theaccountingandauditingconcernsidentifiedas
aresultoftheinternalaudits;and• Theeffectivenessofinternalcontrolsystems.
TheprimaryfunctionofInternalAuditistogiveobjectiveassurance to the Audit and Risk Committee thatadequatemanagementprocessesareinplacetoidentifyandmonitor risks, and that effective internal controlsare in place to manage those risks. Internal Auditindependently audits and evaluates the effectivenessof the FPB’s risk management, internal controls andgovernance processes. In addition, Internal AuditprovidesconsultingservicestoaddvalueandimprovetheFPB’soperations.
The Internal Audit Unit has executed 100% of theapproved Internal Audit Plan. Based on the workperformed, InternalAuditwould like to report that thesystemsofinternalcontrolfortheperiodunderreviewwereeffectiveandefficient.
Risk Management and Fraud Prevention
Risk Management
Riskmanagementisatthecoreoftheoperationsandmanagement of the FPB. The FPB has developedan enterprise risk management framework and riskmanagement policy, which guide the process ofidentifying and managing risks. The FPB continuedto implement riskmanagement processes as per theapprovedRiskManagementPolicyandStrategy.
A formal risk assessment was carried out to identifythe strategic andoperational risksof theFPB.Actionplansweredevelopedbymanagementtomitigatetherisksidentified.Asaresult,astrategicriskregisterandoperational risk registers were developed which aremonitoredbyInternalAuditforeffectivenessandbytheAudit andRiskCommittee in its oversight role.Whileprogress has been noted in mitigating certain risks,therewerechallenges inmitigatingsome risksdue tohumanresourceconstraints.
FILM AND PUBLICATION BOARD
Fraud Prevention
The FPB is aware of the dangers of theft, corruptionand fraudulent activities that will negatively affect itsbusiness performance. It has, therefore, developed aFraudPreventionStrategyandPlanwhichitevaluateson a continuous basis. The Fraud Hotline continuesto be implemented and appropriate action taken toinvestigate and resolve all received complaints,whicharetreatedinthestrictestconfidence.ThereisaCodeofEthics,which isusedtomanagethedeclarationofinterestsbyCouncilmembersandstafftomanageFPBtransactions and ensure ethical business practices.Fraud awareness is conducted by Internal Audit viapresentations at the quarterly staff workshops andregularfraud-relatedarticlesviaemailtoallstaff.
Conclusion
Inconclusion,mayIsaythattheFPBcontinuestomakean impact in the lives of ordinary SouthAfricans.Wehavemadestridesinensuringthatcontentclassificationis recognised as a necessary intervention in nationbuildingand fosteringsocialcohesion,especiallyas itpertainstotheprotectionofchildren.
ThenextstepfortheFPBistoattainasingleclassificationsystem,whichwillensurethatthereisageneralstandardofcontentclassificationthroughoutthecountry,whichisnotbasedonanyspecificplatform.
WiththeimpendingfinalisationoftheAmendmentBill,theFPBwill be in amuchstronger regulatory footingthanitisnow.
_____________________________Mr Tlale D Mokutu CouncilSecretary
ANNUAL REPORT 2017/18
FILM AND PUBLICATION BOARD
HUMAN RESOURCE MANAGEMENT
ANNUAL REPORT 2017/18
TheHRReportprovidesanoverviewofsomeof theactivitiesand trends thathaveoccurredover the12-monthreportingperiod. These include statistical data relating to staffmovements, employment equity and race/genderrepresentation,staff-relatedexpenditurepatternsandlabourrelations.
Expenditure
The following tables summarise final auditedexpenditurebyprogrammeandby salarybands. Inparticular, theyprovideanindicationoftheamountspentonpersonnelcostsintermsoftheprogrammesorsalarybandswithinthedepartment.
Table1PersonnelCostsbyProgramme2017/2018
Programme Total Expenditure
(R’000)
Personnel Expenditure
(R’000)
Training Expenditure
(R’000)
Professional and Special
Services
(R’000)
Personnel Costs as a % of Total
Expenditure(R’000)
Average Personnel Cost Per Employee
(R’000)Staff 47637 46340 1297 0.00 97% 521
Classifiers 6902 6902 0.00 0.00 100% 192
Total 54539 53242 1297 0.00
Table2PersonnelCostsbySalaryBands2017/2018
Salary Band Personnel Expenditure(R’000)
% of total personnel cost
(R’000)
Average personnel cost per employee
(R’000)Classifiers 6902 13% 192
SupportStaff 33364 63% 452
SeniorManagement 8621 16% 958
Executive 4355 8% 726
Total 53242 100%
Employment and Vacancies
Table3EmploymentandVacanciesbySalaryBands,31March2018
Salary Band Number of Posts
Number of Posts Filled
Vacancy Rate %
Additional to the establishment
– (added to FPB structure)
SupportStaff 74 67 9.40% 5
SeniorManagement 11 9 18.18% 0
ExecutiveManagement 5 0 0.00% 0
ProgrammeTotal 90 76 15.56% 5
FILM AND PUBLICATION BOARD
Table4 JobEvaluation
Posts Upgraded Posts Downgraded
Salary Band Number of Posts
Number of Jobs Graded
% of Posts
Evaluated by Salary
Band
Number % of Posts Upgraded
Number % of Posts Downgraded
ExecutiveManagers 1 0 0% 0 0% 0 0%
SeniorManagers 9 0 0% 0 0% 0 0%
SupportStaff 74 12 17% 0 0% 0 0%
Total 84 12 14% 0 0% 0 0%
Table 5 Employees whose Salary Level Exceeds the Grade Determined by Job Evaluation, 01 April 2017 to31March2018
Occupation Number of Employees
Job Evaluation
Level
Remuneration Level
Reason for Deviation
ExecutiveAssistant(AF) 1 C3 C4PostsreviewedaspartoftheFPBturnaroundimplementation
AdministrativeOfficer–AssistanttoCouncil(AF)
1 B4 C1PostsreviewedaspartoftheFPBturnaroundimplementation
LegalAdminAssistant(AF) 1 B3 B4PostsreviewedaspartoftheFPBturnaroundimplementation
RegionalCoordinator(CM) 1 C3 C5PostsreviewedaspartoftheFPBturnaroundimplementation
RegionalCoordinator(AM) 1 C3 C4 Historic
PublicationsMonitor(AF) 1 C2 C3PostsreviewedaspartoftheFPBturnaroundimplementation
AssistantManager:ClientSupport(IM)
1 C3 C4PostsreviewedaspartoftheFPBturnaroundimplementation
AdminandClientSupportOfficer(AF)
1 C1 C2PostsreviewedaspartoftheFPBturnaroundimplementation
CoordinatorStrategicPartnerships(AF)
1 C3 C5PostsreviewedaspartoftheFPBturnaroundimplementation
AssistantManagerInspectionandPublicEducation
1 C4 C5AssistantManagersalariesbenchmarkedforretentionpurposes
AssistantManagerClassification(WF)
1 C4 C5AssistantManagersalariesbenchmarkedforretentionpurposes
ANNUAL REPORT 2017/18
Occupation Number of Employees
Job Evaluation
Level
Remuneration Level
Reason for Deviation
AssistantManagerSupplyChain(AM)
1 C4 C5AssistantManagersalariesbenchmarkedforretentionpurposes
Totalnumberofemployeeswhosesalariesexceededtheleveldeterminedbyjobevaluationin2017/2018 12
Percentageoftotalemployment12/90 13.33%
Table6ProfileofEmployeeswhoseSalaryLevelExceedstheGradeDeterminedbyJobEvaluation–01April2017to31March2018(fromtable5)
Beneficiaries African Indian Coloured White TotalFemale 7 0 0 1 8
Male 2 1 1 0 4
Total 9 1 1 1 12
Employment Changes
Table7AnnualTurnoverRatesbySalaryBandsfortheperiod01April2017to31March2018
Salary Bands Number of Employees per Level as at 01
April 2017
Appointments and Transfers In
Terminations and Transfers Out
Turnover Rate %
SupportStaff 74 16 16 20%
SeniorManagement 11 0 2 18%
ExecutiveManagement 5 2 7 100%
Total 90 18 24 22.2%
Note:Turnoverstatsincludethecompletionoftheinternshipcontractsx10andterminationoffixed-termcontracts
Turnoverrate=Terminationsdividedby(numberofemployees+appointments)
ActualTurnover(excludinginternsandFTC)
90 18 10 9.2%
FILM AND PUBLICATION BOARD
Table8ReasonswhyStaffareLeavingtheDepartment
Termination Type Number % of total Death 0 0%
Resignation 7 29%
ExpiryofContract 15 63%
Dismissal-organisationalchanges 0 0%
Dismissal–misconduct 0 0%
Dismissal–inefficiency 0 0%
Dischargeduetoill-health 0 0%
Retirement 0 0%
Other 2 8%
Total 24 100%
Totalnumberofemployeeswholeftasa%ofthetotalemployment 27%
Employment Equity
Table9TotalnumberofEmployees(includingPeoplewithDisabilities)ineachofthefollowingOccupationalCategoriesasat31March2018:
Occupational Categories
Male FemaleTotalAfrican Coloured Indian White African Coloured Indian White
SupportStaff 23 3 4 1 40 0 1 2 74
SeniorManagement 3 0 1 1 4 0 0 0 9
ExecutiveManagement 1 0 0 0 0 0 0 0 1
Total 27 3 5 2 44 0 1 3 84
PersonswithDisabilities– included in theabovetable
0 0 0 0 2 0 0 0 2
Table10RecruitmentforthePeriod01April2017to31March2018
Occupational BandsMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
SupportStaff 6 0 0 0 9 0 0 0 16
SeniorManagement 0 0 0 0 0 0 0 0 0
ExecutiveManagement 1 0 0 0 1 0 0 0 2
Total 7 0 0 0 10 0 0 0 18
ANNUAL REPORT 2017/18
Table11TerminationsforthePeriod01April2017to31March2018
Occupational BandsMale Female
TotalAfrican Coloured Indian White African Coloured Indian White
SupportStaff 2 0 0 0 12 0 1 0 15
SeniorManagement 0 0 0 0 0 1 0 1 2
ExecutiveManagement 3 0 0 1 3 0 0 0 7
Total 5 0 0 1 15 1 1 1 24
Table12DisciplinaryActionforthePeriod01April2017to31March2018–disciplinaryregister
Male FemaleTotalAfrican Coloured Indian White African Coloured Indian White
DisciplinaryAction 0 0 0 0 5 0 0 0 5
Table13SkillsDevelopmentforthePeriod01April2017to31March2018
Occupational Categories
Male FemaleTotalAfrican Coloured Indian White African Coloured Indian White
SupportStaff 22 0 4 0 43 0 1 2 72
SeniorManagement 3 0 1 1 3 0 0 0 8
ExecutiveManagement 2 0 0 0 0 0 0 0 2
Total 27 0 5 1 46 0 1 2 82
PersonswithDisabilities 0 0 0 0 2 0 0 0 2
FILM AND PUBLICATION BOARD
Performance Rewards
Table14PerformanceRewards,byRace,GenderandDisability,01April2017to31March2018
Number of Beneficiaries
Total Number of Employees
in Group
% of Total Within Group
Cost Average Cost per Employee
African
Male 20 27 74% 380794.59 19039.73
Female 37 44 84% 671290.36 18142.98
Indian
Male 4 5 80% 83246.95 20811.74
Female 2 1 200% 39067.67 19533.84
Coloured
Male 3 3 100% 52775.81 17591.94
Female 0 0 0% 0 0
White
Male 3 2 150% 100177.41 33392.47
Female 2 2 100% 39855.39 19927.70
Total 71 84 84.5% 1367209.38 19256.00
EmployeeswithDisability
0 0 0 0 0
ANNUAL REPORT 2017/18
Table15PerformanceRewardbySalaryBandforPersonnelbelowSeniorManagementService,01April2017to31March2018
Salary Band Number of Beneficiaries
Number of Employees
% of Total Within Group
Cost Average Cost per
Employee
Total Cost as % of Total
Personnel CostSupportStaff 60 68 88% 943587 15726 2.8%
Total 60 68 88% 943587 15726 2.8%
Table16Performancerelatedrewardsbysalaryband,forSeniorManagementService,01April2017to31March2018
Salary Band Number of Beneficiaries
Number of Employees
% of Total Within Group
Cost Average Cost per
Employee
Total Cost as % of Total
Personnel CostSeniorManagement&ExecutiveManagement
11 16 69% 423622 38511 9.7%
Total 11 16 69% 423622 38511 9.7%
Leave Utilisation for the Period 01 April 2017 – 31 March 2018
Table17SickLeave,01April2017to31March2018
Salary Band Total Days % Certification
No. of Employees Using Sick
Leave
% Of Total Employees Using Sick
Leave
Average Per
Employee
Estimated Cost
SupportStaff 602.5 76% 65 88% 9.27 833464.90
SeniorManagement
62 67% 11 100% 5.6 196832.12
ExecutiveManager
10 60% 2 40% 3.346216.98
Total 674.5 76% 78 87% 8.5 1076514
Table18AnnualLeave,01April2017to31March2018
Salary Bands Total Days Taken Number Of Employees In Grade
Average per Employee
SupportStaff 1589.3 74 21.5
SeniorManagement 158.5 9 17.6
ExecutiveManagement 0 1 0
Total 1747.8 84 20.8
FILM AND PUBLICATION BOARD
Table19LeavePayoutsforthePeriod01April2017to31March2018
Reason Total Amount Number of Employees Average Payment per Employee
Leavepayoutfor2017/18duetonon-utilisation
0 0 0
CappedLeavepayoutsonterminationofservice
0 0 0
Currentleavepayoutonterminationofservice
443459.04 21 21117.09
Total443459.04
21 21117.09
Table20:HIV/AidsandHealthPromotionProgrammes
Details of Health Promotion and HIV and AIDS Programmes (tick the relevant boxes and provide the requiredinformation)
Question Yes No Details, if yesHasthedepartmentdesignatedamemberoftheSMStoimplementtheprovisionscontainedinPartVIofChapter1ofthePublicServiceRegulations,2001?Ifso,providehis/hernameandposition.
X
AndreMichauxHRManager
Doesthedepartmenthaveadedicatedunitorhasit designated specific staff members to promotethehealthandwellbeingofyouremployees?Ifso,indicatethenumberofemployeeswhoareinvolvedinthistaskandtheannualbudgetthatisavailableforthispurpose.
X
HRUnit
Has the department introduced an EmployeeAssistance or Health Promotion Programmefor employees? If so, indicate the key elements/servicesofthisProgramme.
X
HealthandWellbeingSurveyWellnessDaysMonthlyWellnessNewsletterWellnessCallCentreOn-siteCounsellingServicesEAPReferralSystemHealthAwarenessInterventionsCompulsoryTraumaDebriefings forSpecifiedJobCategories.
Has the department established a committee(s)as contemplated in Part VI E5 (e) of Chapter 1of the Public Service Regulations, 2001. If so,pleaseprovidethenamesof themembersof thecommitteeandthestakeholder(s)theyrepresent.
X
JudasMatlakaleMphoMooketsiZangeMgolombaneNosiphoDladlaNomfundoRalanteThandoMlamboKagisoMmitsiKomillaMoodleyJacquelineSteynAndreMichauxStakeholder=FPBEmployees.
ANNUAL REPORT 2017/18
Question Yes No Details, if yesHas the department reviewed its employmentpoliciesandpracticestoensurethatthesedonotunfairly discriminate against employees on thebasisoftheirHIVstatus?Ifso,listtheemploymentpolicies/practicessoreviewed.
X
HealthandSafetyPolicyBereavementPolicyEmployeeWellnessPolicyEmployeeAssistanceProgrammeLeavePolicySexualHarassmentPolicyHIV/AIDSPolicy
Has the department introduced measures toprotectHIV-positiveemployeesorthoseperceivedtobeHIV-positivefromdiscrimination.Ifso,listthekeyelementsofthesemeasures.
X
Covered in theHIV/Aidsandotherapplicablepolicies.
DoesthedepartmentencourageitsemployeestoundergoVoluntaryCounsellingandTesting?Ifso,listtheresultsthatyouhaveachieved. X
VCTconductedannually0% response for Voluntary Counselling andTestinginthepreviousreportingperiod.
Has the department developed measures/indicators tomonitor and evaluate the impact ofits health promotion programme. If so, list thesemeasures/indicators.
X
Employee Assistance – counselling referralsandcallcentreutilisationHIVVCTWellnessProgrammeAnnualReportProductivity –SickLeave trends tobewithin2%ofdaysworked(actual=3.2%)
Labour Relations
Table21:CollectiveAgreements,01April2017to31March2018
Thefollowingcollectiveagreementswereenteredintowithtradeunionswithinthedepartment.
Subject Matter DateMulti-YearWageSettlementAgreement–2017/2018and2018/2019
08September2017
Table22MisconductandDisciplinaryHearingsFinalised,01April2017to31March2018
Outcomes of Disciplinary Hearings Number % of totalCorrectionalCounselling(includedlettersofcautioninthis) 0 0%
VerbalWarning 5 100%
WrittenWarning 0 0%
FinalWrittenWarning 0 0%
SuspendedwithoutPay 0 0%
Fine 0 0%
Demotion 0 0%
Dismissal 0 0%
Casewithdrawn 0 0%
Other 0 0%
Total 5 100%
FILM AND PUBLICATION BOARD
Table23TypesofMisconductAddressedatDisciplinaryHearings
Type of Misconduct Number % of totalFruitlessandwastefulexpenditure 0 0
Negligence/non-compliancewithprocedures 4 80%
Unauthorisedabsence 1 20%
Failuretomeetperformancedelivery 0 0%
Derelictionofduty 0 0%
TheftofFPBmaterials 0 0%
Dishonesty/bringingnameofFPBintodisprepute 0 0%
Non-disclosureofpendinglabourcourtcase 0 0%
5 100%
Table24Grievanceslodgedfortheperiod01April2017to31March2018
Numberofgrievanceslodged 4
Table25Disputeslodgedwithcouncils/CCMAfortheperiod01April2017to31March2018
Numberofdisputeslodged 3
Table26Strikeactionsfortheperiod01April2017to31March2018
Strikeactionsfortheperiod None
Table27Precautionarysuspensionsfortheperiod01April2017to31March2018
Precautionarysuspensionsfortheperiod 2
Skills Development
Table28:Trainingprovided01April2017to31March2018
Occupational Categories
Gender No. of Employees
as at 01 April 2017
HC
Training Provided Within The Reporting PeriodLearnerships Skills
Programmes and other
Short Courses
other Forms of Training
Total
SupportStaffMale 31 0 21 21 42
Female 43 0 24 45 79
SeniorManagementMale 5 0 3 5 8
Female 4 0 3 3 6
ExecutiveManagement
Male 1 0 0 2 2
Female 0 0 0 0 0
SubtotalMale 37 0 24 28 52
Female 47 0 27 48 75
Total 84 0 51 76 127
ANNUAL REPORT 2017/18
Injury on Duty
Table29:InjuryonDuty,01April2017to31March2018
Nature of Injury Number % of totalRequiredbasicmedicalattentiononly 0 0
Temporarytotaldisablement 0 0
Permanentdisablement 0 0
Fatal 0 0
Total 0 100%
FILM AND PUBLICATION BOARD
FINANCIAL INFORMATION
ANNUAL REPORT 2017/18
FINANCIAL INFORMATION
ListofAbbreviations 56
AuditandRiskCommitteeReport 57
ReportoftheAuditor-GeneraltoParliamentontheFilmandPublicationBoard 60
AccountingAuthority’sResponsibilitiesandApproval 66
AccountingAuthority’sReport 67
StatementofFinancialPositionasat31March2018 69
StatementofFinancialPerformance 70
StatementofChangesinNetAssets 71
CashFlowStatement 72
StatementofComparisonofBudgetandActualAmounts 73
AccountingPolicies 74
NotestotheFinancialStatements 88
FILM AND PUBLICATION BOARD
COID CompensationforOccupationalInjuriesandDiseases
CRR CapitalReplacementReserve
DBSA DevelopmentBankofSouthAfrica
SA GAAP SouthAfricanStatementsofGenerallyAcceptedAccountingPractice
GRAP GenerallyRecognisedAccountingPractice
GAMAP GenerallyAcceptedMunicipalAccountingPractice
HDF HousingDevelopmentFund
IAS InternationalAccountingStandards
IMFO InstituteofMunicipalFinanceOfficers
IPSAS InternationalPublicSectorAccountingStandards
MEs MunicipalEntities
MEC MemberoftheExecutiveCouncil
MFMA MunicipalFinanceManagementAct
MIG MunicipalInfrastructureGrant(PreviouslyCMIP)
ANNUAL REPORT 2017/18
The audit and risk committee is established in terms of Section 51(1) (a) (ii), Section 77 of the Public FinanceManagementActreadtogetherwithTreasuryRegulation27.1andactsasagovernancestructureoftheentity.Asrequired,theauditandriskcommitteereportispreparedinlinewiththerequirementsofTreasuryRegulation27.1.
Thecommittee,whichcomprisesfourmembers(refertotablebelow),hasbeenmandatedwithoversightonauditmatters,accounting,riskandcompliance.Duringtheyearunderreview,thecommitteeheldallitsscheduledmeetings,includingjointmeetingswiththeFinanceCommittee,andmemberscontinuedtoactwithduediligenceandcareinthedischargeoftheirduties.
Members and attendance
Member 1 April 2017 – 31 March 2018 11/05/2017 26/05/2017 27/07/2017 05/09/2017 28/11/2017 31/01/2018
MsZNkosi(Chairperson) 1 1 1 1 1 1
MsMMangena 1 0 1 1 1 1
MrGDhladhla 1 1 1 1 1 1
DrNSkeepers 1 1 0 1 1 1
Charter
ThecommitteehasadoptedacharterapprovedbyCouncilandcanconfirmthatfortheyearunderreview,ithascompliedwithboththecharterandtheresponsibilitiesasdetailedintheregulationsmentionedabove.
Effectiveness of internal controls
Infulfillingitsresponsibilitiesfortheyearunderreview,thecommittee:- Reviewedsignificantissuesraisedbyboththeinternalandexternalauditprocesses.- Reviewedtheeffectivenessoftheentity’sfinancialcontrolsandreceivedassurancefrommanagement,
internalandexternalaudit.- Reviewedtheactionplansinplacetoaddresstheshortcomingsidentifiedincontrols.- Recommendedinternalcontrolandcomplianceactivities.
Althoughineffectivenesshasbeenidentifiedinsomeareas,thecommitteeissatisfiedintheadequacyandeffectivenessofcontrolsinmostoftheentity’sactivities.Wherecontroldeficiencieswereidentified,actionplansareinplaceandthecommitteewillcontinuetomonitoronaquarterlybasis.
FILM AND PUBLICATION BOARD
Internal audit
Theinternalauditperformsanindependentassurancefunctionbyconductingperiodicalassessmentsontheactivitiesoftheentityandreportingthefindingsthereoftothecommittee.
Insupportofthefunction,fortheyearunderreview,thecommittee:- Approvedtheannualandthree-yearrollingplan.- Reviewedandapprovedtheinternalauditcharter.- Reviewedquarterlyinternalauditreportshighlightingissuesidentifiedfromtheentity’sinternalcontrols,
systemsandprocesses.- Reviewedtheeffectivenessofinternalauditbyquarterlymonitoringprogressandqualityofwork.- Consideredtheinternalauditresourcestoensureeffectivedischargeoffunctions.
Duringtheyear, internalauditwasable tocomplete itsplanandthecommittee issatisfiedthat the functionwasdischargedeffectivelyandefficiently.
Risk management
Asanessentialelementofgovernance,theroleofthecommitteeistoprovideoversightonthesystemsandprocessesofriskmanagementwithintheentity.
Infulfillingthisrolefortheyearunderreview,thecommittee:- Reviewedriskdocumentssuchastheriskmanagementpolicy,procedureandtheimplementationplan.- Reviewedonaquarterlybasis,thestrategicriskregisterandtheimplementationoftheplannedmitigating
actions.- Consideredonaquarterlybasisanyemergingrisks,includingthosearisingfromfraudorwhistleblowing.
Althoughthecommitteehasnotedanoverallprogressinriskmanagement,thereisaneedfortheentitytostrengthenitsprocesses,ensuringthatriskmanagementisatthecoreofitsoperations.Thecommitteewillcontinuetomonitorriskmanagementonaquarterlybasis.
Compliance with laws and regulations
Infulfillingitsresponsibilitiesfortheyearunderreview,thecommittee:- Monitoredcompliancewithlawsandregulations.- Reviewedbothinternalandexternalauditsreportstoidentifyanycomplianceissues.
Thecommitteeissatisfiedwiththeentity’scompliancetorelevant,significantlawsandregulations.
ANNUAL REPORT 2017/18
Quarterly reporting
Forthefinancialyearunderreview,thecommitteereviewedandapprovedbothquarterlyfinanceandperformancereportsforsubmissiontotheExecutiveAuthorityinaccordancewiththerequirementsofPFMA.
Thecommitteeissatisfiedwiththeentity’scompliancetothesereportingrequirements.
Finance function
Thecommitteehasconsideredtheexpertiseandadequacyoftheresourceswithinthefinanceunitandnotedthatinthecurrentyear,theentityoperatedwithouthavingapermanentCFO.Anactingincumbentwasinplaceuntiltheendofthefinancialyearwhilerecruitmentprocesseswereunderway.
Evaluation of annual financial statements and performance information
The committee evaluated the financial statements togetherwith the performance information and based on theprocessesandassuranceobtained,recommendstheinformationtotheCouncilforapproval.
Auditor’s report
In fulfilling itsresponsibilities foroverseeingtheexternalauditprocess,thecommittee independentlymetwiththeexternal auditors and can confirm that they are independent and have conducted the audit without influence.Implementationplansforauditissuesraisedinthepreviousyearwerereviewedandthereissatisfactionastotheresolutionofallmatters.
ThecommitteediscussedtheauditoutcomeswithbothmanagementandAGSA.Basedonthesediscussions,thecommitteeacceptstheconclusionsandisoftheopinionthattheauditedfinancialstatementsbeacceptedandreadtogetherwiththereportoftheAuditor-General.
Appreciation
ThecommitteeexpressesitsappreciationtotheAccountingAuthority,theseniormanagementteam,internalauditandtheAuditor-Generalfortheircontinuedsupportanddedicationduringtheyearunderreview.
_____________________________Zanele NkosiChairperson:AuditandRiskCommittee
FILM AND PUBLICATION BOARD
Opinion
1. I haveaudited the financial statementsof theFilmandPublicationBoard (FPB) setoutonpages69 to103,whichcomprise thestatementoffinancialpositionasat31March2018, thestatementoffinancialperformance,statementofchangesinnetassets,andcashflowstatementandthestatementofcomparisonofbudgetandactualamounts for theyear thenended,aswellas thenotes to thefinancialstatements,includingasummaryofsignificantaccountingpolicies.
2. Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofFPBasat31March2018,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithStandardsofGenerallyRecognisedAccountingPractice(StandardsofGRAP)andtherequirementsofthePublicFinanceManagementActofSouthAfrica,1999(ActNo.1of1999)(PFMA).
Basis for opinion
3. IconductedmyauditinaccordancewiththeInternationalStandardsonAuditing(ISAs).Myresponsibilitiesunder those standards are further described in the auditor-general’s responsibilities for the audit of thefinancialstatementssectionofthisauditor’sreport.
4. I am independent of the public entity in accordance with the International Ethics Standards Board forAccountant’sCodeofethicsforprofessionalaccountants(IESBAcode)andtheethicalrequirementsthatarerelevanttomyauditinSouthAfrica.IhavefulfilledmyotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBAcode.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis formyopinion.
Responsibilities of the Accounting Authority for the financial statements
6. TheAccountingAuthorityisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithStandardsofGRAPandtherequirementsofthePFMA,andforsuchinternalcontrolastheAccountingAuthoritydeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
7. Inpreparingthefinancialstatements,theAccountingAuthorityisresponsibleforassessingtheFPB’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoingconcernbasisofaccountingunless theAccountingAuthorityeither intends to liquidate thepublicentityortoceaseoperations,orhasnorealisticalternativebuttodoso.
ANNUAL REPORT 2017/18
Auditor-General’s responsibilities for the audit of the financial statements
8. Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesmyopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeISAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
9. Afurtherdescriptionofmyresponsibilitiesfortheauditofthefinancialstatementsisincludedintheannexuretothisauditor’sreport.
Introduction and scope
10. InaccordancewiththePublicAuditActofSouthAfrica,2004(ActNo.25of2004)(PAA)andthegeneralnoticeissuedintermsthereof,Ihavearesponsibilitytoreportmaterialfindingsonthereportedperformanceinformationagainstpredeterminedobjectivesforselectedprogrammespresentedintheannualperformancereport.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.
11. My procedures address the reported performance information, whichmust be based on the approvedperformance planning documents of the public entity. I have not evaluated the completeness andappropriatenessoftheperformanceindicatorsincludedintheplanningdocuments.Myproceduresdidnotextendtoanydisclosuresorassertionsrelatingtoplannedperformancestrategiesandinformationinrespectoffutureperiodsthatmaybeincludedaspartofthereportedperformanceinformation.Accordingly,myfindingsdonotextendtothesematters.
12. Ievaluated theusefulnessand reliabilityof the reportedperformance information inaccordancewith thecriteriadevelopedfromtheperformancemanagementandreportingframework,asdefinedinthegeneralnotice, for the followingselectedprogrammespresented in theannualperformance reportof thepublicentityfortheyearended31March2018:
Programmes Pages in annual performance report
Programme1-IndustryCompliance 106-111
Programme2-PublicEducationandAwareness 112-113
Programme4-OnlineandMobileContentRegulation 118-119
FILM AND PUBLICATION BOARD
13. Iperformedprocedurestodeterminewhetherthereportedperformanceinformationwasproperlypresentedandwhetherperformancewasconsistentwiththeapprovedperformanceplanningdocuments.Iperformedfurtherprocedurestodeterminewhethertheindicatorsandrelatedtargetsweremeasurableandrelevant,and assessed the reliability of the reported performance information to determinewhether it was valid,accurateandcomplete.
14. Thematerialfindingsinrespectoftheusefulnessoftheselectedprogrammeisasfollows:Programme2-PublicEducationandAwareness
15. Theplannedtargetsforthefollowingindicatorswerenotspecificinclearlyidentifyingthenatureandrequiredlevelofperformanceandarethereforenotmeasurable:
Performance indicators per APP Planned targets per APP
NumberofM&Ereports
Numberofpeople reached
CompileM&Ereportsofdigitalliteracyandawareness
Percentageincreaseinsocialmediaengagements
NumberofdigitalmediaM&Ereports
Engagement on FPB’s digital and social mediaplatformsimprovedby20%4digitalmediaM&Ereportscompiled
16. Ididnotraiseanymaterialfindingsontheusefulnessandreliabilityofthereportedperformanceinformationforthefollowingprogrammes:
• Programme1-IndustryCompliance
• Programme4-OnlineandMobileContentRegulation
Other matters
17. Idrawattentiontothemattersbelow.
Achievement of planned targets
18. Refertotheannualperformancereportonpage104to121forinformationontheachievementofplannedtargetsfortheyearandexplanationsprovidedfortheunder/overachievementofanumberoftargets.Thisinformationshouldbeconsideredinthecontextofthematerialfindingsontheusefulnessandreliabilityofthereportedperformanceinformationinparagraph15ofthisreport.
ANNUAL REPORT 2017/18
Adjustment of material misstatements
19. I identifiedmaterial misstatements in the annual performance information report submitted for auditing.Thesematerialmisstatementswereonthereportedperformanceinformationofthefollowingprogrammes:
• Programme1-IndustryCompliance• Programme2-PublicEducationandAwareness• Programme4-OnlineandMobileContentRegulation
Asmanagementsubsequentlycorrectedonlysomeofthemisstatements,Iraisedmaterialfindingsontheusefulnessofthereportedperformance informationforProgramme2-Publiceducationandawareness.Thematerialfindingsthatwerenotcorrectedareincludedintheparagraph15above.
Introduction and scope
20. InaccordancewiththePAAandthegeneralnoticeissuedintermsthereof,Ihavearesponsibilitytoreportmaterialfindingsonthecomplianceofthepublicentitywithspecificmattersinkeylegislation.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.
21. I did not raisematerial findingsoncompliancewith the specificmatters in key legislation set out in thegeneralnoticeissuedintermsofthePAA.
Other information
22. The Accounting Authority is responsible for the other information. The other information comprises theinformationincludedintheannualreport.Theotherinformationdoesnotincludethefinancialstatements,theauditor’sreportandthoseselectedprogrammespresentedintheannualperformancereportthathavebeenspecificallyreportedinthisauditor’sreport.
23. Myopiniononthefinancialstatementsandfindingsonthereportedperformanceinformationandcompliancewith legislationdonotcover theother informationand Idonotexpressanauditopinionorany formofassuranceconclusionthereon.
24. Inconnectionwithmyaudit,myresponsibility istoreadtheother informationand, indoingso,considerwhether the other information is materially inconsistent with the financial statements and the selectedprogrammes presented in the annual performance report, or my knowledge obtained in the audit, orotherwiseappearstobemateriallymisstated.Ihavenothingtoreportinthisregard.
Internal control deficiencies
25. Iconsideredinternalcontrolrelevanttomyauditofthefinancialstatements,reportedperformanceinformationandcompliancewithapplicablelegislation;however,myobjectivewasnottoexpressanyformofassuranceonit.Thematterreportedbelowislimitedtothesignificantinternalcontroldeficienciesthatresultedinthefindingonannualperformancereportincludedinthisreport.
FILM AND PUBLICATION BOARD
Leadership
Oversight responsibility
26. LeadershipdidnotexerciseadequateoversightresponsibilityregardingperformancereportingandrelatedinternalcontrolsresultingintheAPPnotbeingreviewedtimeouslyandsufficiently.Thishasresultedinsometargetsnotbeingmeasurable
Pretoria
31July2018
ANNUAL REPORT 2017/18
Annexure – Auditor-General’s responsibility for the audit
1. AspartofanauditinaccordancewiththeISAs,Iexerciseprofessionaljudgmentandmaintainprofessionalscepticism throughoutmy audit of the financial statements, and the procedures performedon reportedperformanceinformationforselectedprogrammesandonthepublicentity’scompliancewithrespecttotheselectedsubjectmatters.
Financial statements
2. Inadditiontomyresponsibilityfortheauditofthefinancialstatementsasdescribedinthisauditor’sreport,I:• identifyandassesstherisksofmaterialmisstatementofthefinancialstatementswhetherduetofraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethatissufficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol
• obtain anunderstandingof internal control relevant to theaudit in order todesignaudit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectivenessofthepublicentity’sinternalcontrol
• evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimatesandrelateddisclosuresmadebytheAccountingAuthority,whichconstitutestheAccountingAuthority
• conclude on the appropriateness of the Accounting Authority, which constitutes the AccountingAuthority’suseofthegoingconcernbasisofaccountinginthepreparationofthefinancialstatements.Iconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubt
• ontheFPB’sabilitytocontinueasagoingconcern.IfIconcludethatamaterialuncertaintyexists,Iamrequiredtodrawattention inmyauditor’sreporttotherelateddisclosures inthefinancialstatementsabout thematerial uncertainty or, if such disclosures are inadequate, to modify the opinion on thefinancialstatements.Myconclusionsarebasedonthe informationavailabletomeatthedateofthisauditor’sreport.However,futureeventsorconditionsmaycauseapublicentitytoceasecontinuingasagoingconcern
• evaluate the overall presentation, structure and content of the financial statements, including thedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
Communication with those charged with governance
3. I communicate with the Accounting Authority regarding, among other matters, the planned scope andtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatIidentifyduringmyaudit.
4. I confirm to the Accounting Authority that I have compliedwith relevant ethical requirements regardingindependence,andcommunicateallrelationshipsandothermattersthatmayreasonablybethoughttohaveabearingonmyindependenceand,whereapplicable,relatedsafeguards.
FILM AND PUBLICATION BOARD
ThemembersarerequiredbytheCompaniesAct,71of2008,tomaintainadequateaccountingrecordsandareresponsibleforthecontentandintegrityofthefinancialstatementsandrelatedfinancialinformationincludedinthisreport.Itistheresponsibilityofthememberstoensurethatthefinancialstatementsfairlypresentthestateofaffairsoftheentityasattheendoftheyearandtheresultsofitsoperationsandcashflowsfortheyearthenended.Theexternalauditorsareengagedtoexpressanindependentopiniononthefinancialstatementsandgivenunrestrictedaccesstoallfinancialrecordsandrelateddatafortheiraudit.
ThefinancialstatementshavebeenpreparedinaccordancewithGenerallyRecognisedAccountingPractice(GRAP)includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.
The financial statements arebaseduponappropriate accountingpolicies consistently applied and supportedbyreasonableandprudentjudgmentsandestimates.
Themembersacknowledgethattheyareultimatelyresponsibleforthesystemofinternalfinancialcontrolestablishedbytheentityandplaceconsiderableimportanceonmaintainingastrongcontrolenvironment.Toenablethememberstomeet these responsibilities, theAccountingAuthoritysetsstandards for internalcontrolaimedat reducing therisk of error or deficit in a cost effectivemanner. The standards include the proper delegation of responsibilitieswithinaclearlydefinedframework,effectiveaccountingproceduresandadequatesegregationofdutiestoensureanacceptable levelof risk.Thesecontrolsaremonitoredthroughout theentityandallemployeesarerequiredtomaintainthehighestethicalstandardsinensuringtheentity’sbusinessisconductedinamannerthatinallreasonablecircumstancesisabovereproach.Thefocusofriskmanagementintheentityisonidentifying,assessing,managingandmonitoringallknownformsofriskacrosstheentity.Whileoperatingriskcannotbefullyeliminated,theentityendeavourstominimise itbyensuringthatappropriate infrastructure,controls,systemsandethicalbehaviourareappliedandmanagedwithinpredeterminedproceduresandconstraints.
Themembersareoftheopinion,basedontheinformationandexplanationsgivenbymanagement,thatthesystemofinternalcontrolprovidesreasonableassurancethatthefinancialrecordsmaybereliedonforthepreparationofthefinancialstatements.However,anysystemofinternalfinancialcontrolcanprovideonlyreasonable,andnotabsolute,assuranceagainstmaterialmisstatementordeficit.
Theentity isdependentontheDepartmentofCommunicationsforcontinuedfundingofoperations.ThefinancialstatementsarepreparedonthebasisthattheentityisagoingconcernandthattheDepartmentofCommunicationshasneithertheintentionnortheneedtoliquidateorcurtailmateriallythescaleoftheentity.
TheAccountingAuthorityisprimarilyresponsibleforthefinancialaffairsoftheentityandtheseareauditedbytheentity’sexternalauditors.
Thefinancialstatementssetoutonpages69to103,whichhavebeenpreparedonthegoingconcernbasis,wereapprovedbytheAccountingAuthorityon29May2018andweresignedonitsbehalfby:
_____________________________ _____________________________Mr S Nene Mrs NFT MpumlwanaChiefExecutiveOfficer(Acting) ChairpersonofCouncil
ANNUAL REPORT 2017/18
Thememberssubmittheirreportfortheyearended31March2018.
1) Legal form and nature of business
TheFilmandPublicationBoardisapublicentitywhichwasestablishedintermsoftheFilmandPublicationsActandcommencedbusinessinMarch1998.Itislistedasaschedule3AintermsofthePublicFinanceManagementActof1999.TheExecutiveAuthorityistheDepartmentofCommunications.
2) Review of activities
Main business and operations
TheFilmandPublicationBoardregulates,bymeansofclassification,agerestrictionsandconsumeradvice,thecre-ation,production,possessionanddistributionoffilms,computergamesandcertainpublicationsto:• Enableadultstomakeinformedviewing,reading,andgamingchoices,bothforthemselvesandforthechildren
intheircare,and• Protect children from exposure to disturbing and harmful materials and from premature exposure to adult
experiences,and• Contribute to the protection of children from sexual abuse and exploitation in pornographic films, computer
games,publicationsandontheinternet.
3) Results for the year
Thefinancialoperatingresultsfortheperiodweresatisfactory.TheFilmandPublicationBoardrecordedanetsurplusofR7466311(2017:surplusR3840748)
4) Going concern
Wedrawattentiontothefactthatat31March2018,theentityhadanaccumulatedsurplus(deficit)ofR22300980(R1483467031March2017)andthattheentity’stotalassetsexceeditsliabilitiesbyR22300980(R1483467031March2017).
Thefinancialstatementshavebeenpreparedonthebasisofaccountingpoliciesapplicabletoagoingconcern.Thisbasispresumesthatfundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettlementofliabilities,contingentobligationsandcommitmentswilloccurintheordinarycourseofbusiness.
5) Funding
TheFilmandPublicationBoardreceivedaGovernmentGrantofR91684000fortheperiodended31March2018andR86472000fortheyearended31March2017.
FILM AND PUBLICATION BOARD
6) Subsequent events
MsNthabisengMaywasappointedActingCOOwitheffectfromApril2018andMsLesegoMogoatlheActingCFOwitheffectfromMay2018.SubsequentlyanewExecutiveCommitteewasappointedinJuly.
7) Accounting policies
ThefinancialstatementshavebeenpreparedinaccordancewiththeStandardsofGenerallyRecognisedAccountingPractices(GRAP),includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.
Thefinancialstatementssetoutonpages69to103,whichhavebeenpreparedonthegoingconcernbasis,wereapprovedbytheAccountingAuthorityon29May2018andweresignedonitsbehalfby:
_____________________________ _____________________________Mr S Nene Mrs NFT MpumlwanaChiefExecutiveOfficer(Acting) ChairpersonofCouncil
ANNUAL REPORT 2017/18
FiguresinRand Note(s) 2018 2017
(Restated)
AssetsCurrent AssetsReceivablesfromexchangetransactions 4 3910520 3084065
Cashandcashequivalents 3 15297829 8554586
19 208 349 11 638 651
Non-Current AssetsProperty,plantandequipment 5 7642661 8782162
Intangibleassets 6 10401165 7057248
18 043 826 15 839 410
Total Assets 37 252 175 27 478 061
Liabilities
Current LiabilitiesFinanceleaseobligation 7 669708 827801
Payablesfromexchangetransactions 8 7945300 7873010
Provisions 9 6336184 3272872
14 951 192 11 973 683
Non-Current LiabilitiesFinanceleaseobligation 7 - 669708
Total Liabilities 14 951 192 12 643 391
Net Assets 22 300 983 14 834 670
Accumulatedsurplus 22 300 980 14 834 670
70 FILM AND PUBLICATION BOARDFILM AND PUBLICATION BOARD
FiguresinRand Note(s) 2018 2017
(Restated)Revenue
Revenue from non-exchange transactions
Transfersfromothergovernmententities 10 91684000 86472000
Revenue from exchange transactions
Regulationfees 10 7741329 6718708
Otherincome 11 9875 79986
Interestreceived–investment 12 863674 1062566
Total revenue from exchange transactions 8 614 878 7 861 260
Total revenue 100 298 878 94 333 260
Expenditure
Personnel 13 (53241885) (49896726)
Depreciationandamortisationexpenses (2452419) (2668576)
Financecosts 15 (187705) (319784)
Leaserentalsonoperatinglease 14 (5859249) (4855261)
Administrative 14 (31091309) (32752165)
Total expenditure (92 832 567) (90 492 512)
Surplus for the period 7 466 311 3 840 748
71ANNUAL REPORT 2017/18ANNUAL REPORT 2017/18
FiguresinRandAccumulated
surplus/(deficit)Total net
assets
Balance at 31 March 2016 10 993 922 10 993 922
Surplusfortheperiod 3840748 3840748
Totalchanges 3840748 3840748
Openingbalanceaspreviouslyreported 15311742 15311742
Adjustments
Prioryearadjustments (477073) (477073)
Restated* Balance at 31 March 2017 as restated* 14 834 669 14 834 669
Surplusfortheperiod 7466311 7466311
Totalchanges 7466311 7466311
Balance at 31 March 2018 22 300 980 22 300 980
FILM AND PUBLICATION BOARD
FiguresinRand Note(s) 2018 2017(Restated)
Cash flows from operating activities
Receipts
Grants 91684000 86472000
Interestreceived 863674 1062566
Otherreceipts - 31056
Regulationfees 6914874 5697600
99462548 93263222
Payments
Employeecosts (56782270) (50268496)
Suppliers (30274596) (31792982)
Otherexpenses (1686) -
(87058552) (82061478)
Net cash flows from operating activities 17 12 403 996 11 201 744
Cash flows from investing activities
Purchaseofplantandequipment 5 (1164225) (3229028)
ProceedsfromsaleofInfrastructure,plantandequipment 5 25530 174863
Purchaseofintangibleassets 6 (3506551) (5441240)
Net cash flows from investing activities (4 645 246) (8 495 405)
Cash flows from financing activities
Financeleasepayments (827801) (709369)
Financecost (187705) (319784)
Net cash flows from financing activities (1 015 506) (1 029 153)
Net increase/(decrease) in cash and cash equivalents 6 743 244 1 677 186
Cashandcashequivalentsatthebeginningoftheperiod 8554586 6877399
Cash and cash equivalents at the end of the period 3 15 297 830 8 554 585
ANNUAL REPORT 2017/18
Budget on Cash Basis
Figures in Rand Approvedbudget Adjustments Final Budget
Actual Amounts on Comparable
Basis
Differencebetween FinalBudget and
Actual
Reference
Statement of Financial PerformanceRevenueRevenue from exchangeTransactionsRegulationfees 7206431 810000 8016431 7741329 (275102) (a)
Otherrevenue - - - 9875 9875 (b)
Interestreceived–investment 626622 - 626622 863674 237052 (c)
Total revenue from exchange transactions
7833053 810000 8643053 8614878 (28175)
Revenue from non-exchange transactionsTransfer revenueTransfersfromothergovernmententities 91684000 - 91684000 91684000 -
Total revenue 99517053 810000 100327053 100298878 (28175)
ExpenditurePersonnel (54633645) 1216817 (53416828) (53241885) 174943 (d)
Depreciationandamortisationexpenses - - - (2452419) (2452419)
Financecosts (6672148) 300000 (6372148) (187705) 6184443
Leaserentalsonoperatinglease - - - (5859249) (5859249)
Administrative (38211260) (2326817) (40538077) (31091309) 9446768 (d)
Total expenditure (99517053) (810000) (100327053) (92832567) 7494486
Surplus before taxation - - - 7466311 7466311
Surplus for the year from continuing operations
- - - 7466311 7466311
Actual Amount on Comparable - - - 7466311 7466311
Basis as Presented in the Budget and Actual Comparative Statement
Thebudgetfor2017/2018financialyearwasapprovedandpreparedontheaccrualbasis(exceptfordepreciationandamortisation)andalltransactionswereaccountedforonaccrualbasis.TransfersreceivedduringthecurrentfinancialyearwerefromtheDepartmentofCommunicationsandentitiesincludedinthebudgetweredisclosedinNote23.
a) Mid-termrevenueprojectionsindicatedanincreaseofregulationfeestobecollectedfortheremainderoftheyear.Budgetwas,therefore,adjustedupwards.Thisismainlyduetoanincreaseofcontentdistributedonlineandnotthroughtraditionalmeans.
b) Otherrevenuenotbudgetedforduetonotbeingmaterialanditsadhocnaturec) Additionalinterestrevenuegeneratedduetoproperplanningofthesurpluscashandinvestmentdecisionthat
aredoneontime.ThesurplusfundsareinvestedintheCPDaccountandAbsacallaccountd) Admincostisduetothefactthatmanagementimplementedcostcontainmentmeasuresonlineitemsliketravel,
workshopsanddatacosts.
FILM AND PUBLICATION BOARD
1. Presentation of financial statements
ThefinancialstatementshavebeenpreparedinaccordancewiththeStandardsofGenerallyRecognisedAccountingPractice(GRAP),includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.
These financial statements have been prepared on an accrual basis of accounting and are in accordancewithhistoricalcostconventionunlessspecifiedotherwise.TheyarepresentedinSouthAfricanRand.
Asummaryofthesignificantaccountingpolicies,whichhavebeenconsistentlyapplied,isdisclosedbelow.
1.1 Significant judgments and sources of estimation uncertainty
In preparing the financial statements, management is required to make estimates and assumptions that affecttheamountsrepresented inthefinancialstatementsandrelateddisclosures.Useofavailable informationandtheapplicationofjudgmentisinherentintheformationofestimates.Actualresultsinthefuturecoulddifferfromtheseestimates whichmay bematerial to the financial statements. Significant judgmentsmade relates to: Useful lifeestimations,provisionsandcontingentliabilities
Trade receivables and receivables
The entity assesses its trade receivables and receivables for impairment at the endof each reportingperiod. Indeterminingwhetheranimpairmentlossshouldberecordedinsurplusordeficit,thesurplusmakesjudgmentsastowhetherthereisobservabledataindicatingameasurabledecreaseintheestimatedfuturecashflowsfromafinancialasset.
Theimpairmentfortradereceivablesandreceivablesiscalculatedonaportfoliobasis,basedonhistoricallossratios,adjustedfornationalandindustry-specificeconomicconditionsandother indicatorspresentatthereportingdatethatcorrelatewithdefaultsontheportfolio.Theseannuallossratiosareappliedtoloanbalancesintheportfolioandscaledtotheestimatedlossemergenceperiod.
Impairment testing
Property,plantandequipmentandIntangibleassetsareconsideredforimpairmentifthereisareasontobelievethatanimpairmentmaybenecessary.
Thefuturecashflowsexpectedtobegeneratedbytheassetsareprojectedtakingintoaccountmarketconditionsandtheexpectedusefullivesoftheassets.Thepresentvalueofthesecashflows,determinedusinganappropriatediscountrate,iscomparedtothecurrentcarryingvalueand,iflower,theassetsareimpairedtothepresentvalue.
Provisions
Provisionswere raised andmanagement determined an estimate based on the information available. Additionaldisclosureoftheseestimatesofprovisionsisincludedinnote9-Provisions.
ANNUAL REPORT 2017/18
Going Concern Assumption
TheAnnualFinancialStatementshavebeenpreparedonagoingconcernbasis.
Offsetting
Assets,liabilities,revenuesandexpenseshavenotbeenoffsetexceptwhenoffsettingisrequiredorpermittedbyaStandardofGRAP.
1.2 Property, plant and equipment
Property,plantandequipmentaretangiblenon-currentassets(includinginfrastructureassets)thatareheldforuseintheproductionorsupplyofgoodsorservices,rentaltoothers,orforadministrativepurposes,andareexpectedtobeusedduringmorethanoneperiod.
Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetwhen:• itisprobablethatfutureeconomicbenefitsorservicepotentialassociatedwiththeitemwillflowtotheentity;and• thecostofthe i temcanbemeasuredreliably.
Property,plantandequipmentisinitiallymeasuredatcost.
Thecostofanitemofproperty,plantandequipmentisthepurchasepriceandothercostsattributabletobringtheassettothelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement.Tradediscountsandrebatesaredeductedinarrivingatthecost.
Whereanassetisacquiredthroughanon-exchangetransaction,itscostisitsfairvalueasatdateofacquisition.
Wherean itemofproperty,plantandequipment isacquired inexchange foranon-monetaryassetormonetaryassets,oracombinationofmonetaryandnon-monetaryassets,theassetacquiredisinitiallymeasuredatfairvalue(thecost).Iftheacquireditem’sfairvaluewasnotdeterminable,itsdeemedcostisthecarryingamountoftheasset(s)givenup.
When significant components of an item of property, plant and equipment have different useful lives, they areaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.
Costs includecosts incurred initially toacquireorconstructan itemofproperty,plantandequipmentandcostsincurredsubsequently toaddto, replacepartof,orservice it. Ifa replacementcost is recognised in thecarryingamountofanitemofproperty,plantandequipment,thecarryingamountofthereplacedpartisderecognised.
Recognitionofcostsinthecarryingamountofanitemofproperty,plantandequipmentceaseswhentheitemisinthelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement.
Property,plantandequipmentiscarriedatcostlessaccumulateddepreciationandanyimpairmentlosses.
FILM AND PUBLICATION BOARD
1.2 Property, plant and equipment (continued)
Property, plant andequipment aredepreciatedon the straight-linebasisover their expecteduseful lives to theirestimatedresidualvalue.
Property,plantandequipmentiscarriedatcostlessaccumulateddepreciationandanyimpairmentlosses.Theusefullivesofitemsofproperty,plantandequipmenthavebeenassessedasfollows:
Item Average useful lifeFurnitureandfittings 12-20 years
Motor vehicles 5 years
Officeequipment 4-15 years
Computerequipment 4-8 years
Leaseholdimprovements 2-10 years
Leasedassets 3-5 years
Thedepreciableamountofanassetisallocatedonasystematicbasisoveritsusefullife.
Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemisdepreciatedseparately.
Theentityassessesateachreportingdatewhetherthereisanyindicationthattheentityexpectationsabouttheusefullifeofanassethavechangedsincetheprecedingreportingdate.Ifanysuchindicationexists,theentityrevisestheexpectedusefullifeand/orresidualvalueaccordingly.Thechangeisaccountedforasachangeinanaccountingestimate.
Thedepreciationchargeforeachperiodisrecognisedinsurplusordeficitunlessitisincludedinthecarryingamountofanotherasset.
Itemsofproperty,plantandequipmentarederecognisedwhentheassetisdisposedoforwhentherearenofurthereconomicbenefitsorservicepotentialexpectedfromtheuseoftheasset.
Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisincludedinsurplusordeficitwhentheitemisderecognised.Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthenetdisposalproceeds,ifany,andthecarryingamountoftheitem.
1.3 Intangible assets
Anassetisidentifiableifiteither:• isseparable,i.e.iscapableofbeingseparatedordividedfromanentityandsold,transferred,licensed,rented
orexchanged,eitherindividuallyortogetherwitharelatedcontract,identifiableassetsorliability,regardlessofwhethertheentityintendstodoso;or
• arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferableorseparablefromtheentityorfromotherrightsandobligations.
ANNUAL REPORT 2017/18
Abindingarrangementdescribesanarrangementthatconferssimilarrightsandobligationsonthepartiestoitasifitwereintheformofacontract.
Anintangibleassetisrecognisedwhen:• itisprobablethattheexpectedfutureeconomicbenefitsorservicepotentialthatareattributabletotheassetwill
flowtotheentity;and• thecostorfairvalueoftheassetcanbemeasuredreliably.
Theentityassessestheprobabilityofexpectedfutureeconomicbenefitsorservicepotentialusingreasonableandsupportableassumptionsthatrepresentmanagement’sbestestimateofthesetofeconomicconditionsthatwillexistovertheusefullifeoftheasset.
Whereanintangibleassetisacquiredthroughanon-exchangetransaction,itsinitialcostatthedateofacquisitionismeasuredatitsfairvalueasatthatdate.
Expenditureonresearch (orontheresearchphaseofan internalproject) isrecognisedasanexpensewhen it isincurred.An intangible asset arising fromdevelopment (or from thedevelopmentphaseof an internalproject) isrecognisedwhen:• itistechnicallyfeasibletocompletetheassetsothatitwillbeavailableforuseorsale.• thereisanintentiontocompleteanduseorsellit.• thereisanabilitytouseorsellit.• itwillgenerateprobablefutureeconomicbenefitsorservicepotential.• thereareavailabletechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe
asset.• theexpenditureattributabletotheassetduringitsdevelopmentcanbemeasuredreliably.
An intangibleasset is regardedashavingan indefiniteuseful lifewhen,basedonall relevant factors, there isnoforeseeable limittotheperiodoverwhichtheasset isexpectedtogeneratenetcashinflowsorservicepotential.Amortisationisnotprovidedfortheseintangibleassets,buttheyaretestedforimpairmentannuallyandwheneverthereisanindicationthattheassetmaybeimpaired.Forallotherintangibleassetsamortisationisprovidedonastraight-linebasisovertheirusefullife.
Theamortisationperiodandtheamortisationmethodforintangibleassetsarereviewedateachreportingdate.
Reassessingtheusefullifeofanintangibleassetwithafiniteusefullifeafteritwasclassifiedasindefiniteisanindicatorthattheassetmaybeimpaired.Asaresulttheassetistestedforimpairmentandtheremainingcarryingamountisamortisedoveritsusefullife.
Internallygeneratedbrands,mastheads,publishingtitles,customerlistsanditemssimilarinsubstancearenotrecognisedasintangibleassets.
Internallygeneratedgoodwillisnotrecognisedasanintangibleasset.
FILM AND PUBLICATION BOARD
1.3 Intangible assets (continued)
Amortisation isprovided towritedown the intangibleassets,onastraight linebasis, to their residualvaluesasfollows:
Item Depreciation method Average useful lifeComputersoftware Straightline 3-12years
Theentitydisclosesrelevantinformationrelatingtoassetsunderconstructionordevelopment, inthenotestothefinancialstatements(seenote5).
Intangibleassetsarederecognised:• ondisposal;or• whennofutureeconomicbenefitsorservicepotentialareexpectedfromtheiruseordisposal.
1.4 Financial instruments classification
Theentityclassifiesfinancialassetsandfinancialliabilitiesintothefollowingcategories:• Held-to-maturityinvestment• Loansandreceivables• Available-for-salefinancialassets
Classificationdependsonthepurposeforwhichthefinancialinstrumentswereobtained/incurredandtakesplaceatinitialrecognition.Classificationisre-assessedonanannualbasis,exceptforderivativesandfinancialassetsdesignatedasatfairvaluethroughsurplusordeficit,whichshallnotbeclassifiedoutofthefairvaluethroughsurplusordeficitcategory.
Initial recognition and measurement
Financial instrumentsarerecognised initiallywhentheentitybecomesapartytothecontractualprovisionsoftheinstruments.
The entity classifies financial instruments, or their component parts, on initial recognition as a financial asset, afinancialliabilityoranequityinstrumentinaccordancewiththesubstanceofthecontractualarrangement.
Financial instrumentsaremeasuredinitiallyatfairvalue,exceptforequity investmentsforwhichafairvalueisnotdeterminable,whicharemeasuredatcostandareclassifiedasavailable-for-salefinancialassets.
Forfinancialinstrumentswhicharenotatfairvaluethroughsurplusordeficit,transactioncostsareincludedintheinitialmeasurementoftheinstrument.
Subsequent measurement
Loans and receivables are subsequently measured at amortised cost, using the effective interest method, lessaccumulatedimpairmentlosses.
ANNUAL REPORT 2017/18
Held-to-maturityinvestmentsaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessaccumulatedimpairmentlosses.
Available-for-salefinancialassetsaresubsequentlymeasuredatfairvalue.Thisexcludesequityinvestmentsforwhichafairvalueisnotdeterminable,whicharemeasuredatcostlessaccumulatedimpairmentlosses.
Gains and losses arising from changes in fair value are recognised in equity until the asset is disposed of ordeterminedtobeimpaired.Interestonavailable-for-salefinancialassetscalculatedusingtheeffectiveinterestmethodisrecognisedinsurplusordeficitaspartofotherincome.Dividendsreceivedonavailable-for-saleequityinstrumentsarerecognisedinsurplusordeficitaspartofotherincomewhentheentity’srighttoreceivepaymentisestablished.
Changesinfairvalueofavailable-for-salefinancialassetsdenominatedinaforeigncurrencyareanalysedbetweentranslationdifferencesresultingfromchangesinamortisedcostandotherchangesinthecarryingamount.Translationdifferencesonmonetary itemsare recognised insurplusordeficit,while translationdifferencesonnon-monetaryitemsarerecognisedinequity.
Financialliabilitiesatamortisedcostaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod.
Trade and other receivables
Tradereceivablesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinsurplusordeficitwhenthereisobjectiveevidencethattheassetisimpaired.Significantfinancialdifficultiesofthedebtor,probability that thedebtorwill enterbankruptcyor financial reorganisation, anddefault ordelinquency inpayments(morethan30daysoverdue)areconsideredindicatorsthatthetradereceivableisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.
Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountofthedeficitisrecognisedinsurplusordeficitwithinoperatingexpenses.Whenatradereceivable isuncollectible, it iswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpensesinsurplusordeficit.
Tradeandotherreceivablesareclassifiedasloansandreceivables.
Payables from exchange transactions
Tradepayables are initiallymeasuredat fair value, andare subsequentlymeasuredat amortisedcost, using theeffectiveinterestratemethod.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquidinvestmentsthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchangesinvalue.Theseareinitiallyandsubsequentlyrecordedatfairvalue.
FILM AND PUBLICATION BOARD
1.5 Leases
Alease isclassifiedasafinance lease if it transferssubstantiallyall therisksandrewards incidental toownership.Aleaseisclassifiedasanoperatingleaseif itdoesnottransfersubstantiallyalltherisksandrewardsincidentaltoownership.
Finance leases – lessee
Financeleasesarerecognisedasassetsandliabilitiesinthestatementoffinancialpositionatamountsequaltothefairvalueoftheleasedpropertyor,iflower,thepresentvalueoftheminimumleasepayments.Thecorrespondingliabilitytothelessorisincludedinthestatementoffinancialpositionasafinanceleaseobligation.
Thediscountrateusedincalculatingthepresentvalueoftheminimumleasepaymentsistheinterestrateimplicitinthelease.
Minimumleasepaymentsareapportionedbetweenthefinancechargeandreductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateoftheremainingbalanceoftheliability.
Anycontingentrentsareexpensedintheperiodinwhichtheyareincurred.
Operating leases – lessee
Operatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm.Thedifferencebetweentheamountsrecognisedasanexpenseandthecontractualpaymentsarerecognisedasanoperatingleaseassetorliability.
1.6 Employee benefits
Short-term employee benefits
Thecostofshort-termemployeebenefits,(thosepayablewithin12monthsaftertheserviceisrendered,suchaspaidvacationleaveandsickleave,bonusesandnon-monetarybenefitssuchasmedicalcare),arerecognisedintheperiodinwhichtheserviceisrenderedandarenotdiscounted.
Defined contribution plans
Paymentstodefinedcontributionretirementbenefitplansarechargedasanexpenseastheyfalldue.
ThedefinedbenefitplanisapensionfundunderwhichtheFPBpaysfixedmonthlycontributionstoaseparateentitythatwillhavelegalorconstructiveobligationstopayfurthercontributionifthefunddoesnotholdsufficientassetstopayalltheemployeebenefitsrelatingtotheemployeeserviceinthecurrentandpriorperiod.Oncethecontributionispaid,theFPBhasnofurtherobligations.
ANNUAL REPORT 2017/18
1.7 Provisions and contingencies
Provisionsarerecognisedwhen:• theentityhasapresentobligationasaresultofapastevent;• itisprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredto
settletheobligation;and• areliableestimatecanbemadeoftheobligation.
Theamountofaprovision is thebestestimateof theexpenditureexpected tobe required tosettle thepresentobligationatthereportingdate.
Wheretheeffectoftimevalueofmoneyismaterial,theamountofaprovisionisthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligation.
Wheresomeoralloftheexpenditurerequiredtosettleaprovisionisexpectedtobereimbursedbyanotherparty,thereimbursement isrecognisedwhen,andonlywhen, it isvirtuallycertainthatreimbursementwillbereceivediftheentitysettlestheobligation.Thereimbursementistreatedasaseparateasset.Theamountrecognisedforthereimbursementdoesnotexceedtheamountoftheprovision.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions arereversedifitisnolongerprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredtosettletheobligation.
A provision is used only for expenditures for which the provision was originally recognised. Provisions are notrecognisedforfutureoperatingsurplus(deficit).
Contingentassetsandcontingentliabilitiesarenotrecognised.Contingenciesaredisclosedinnote21.
1.8 Revenue from exchange transactions
Revenueisthegrossinflowofeconomicbenefitsorservicepotentialduringthereportingperiodwhenthoseinflowsresultinanincreaseinnetassets,otherthanincreasesrelatingtocontributionsfromowners.
Anexchangetransaction isoneinwhichtheentityreceivesassetsorservices,orhas liabilitiesextinguished,anddirectlygivesapproximatelyequalvalue(primarilyintheformofgoods,servicesoruseofassets)totheotherpartyinexchange.
Fairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.
Measurement
Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netoftradediscountsandvolumerebates.
FILM AND PUBLICATION BOARD
1.8 Revenue from exchange transactions (continued)
Sale of goods
Revenuefromthesaleofgoodsisrecognisedwhenallthefollowingconditionshavebeensatisfied:• theentityhastransferredtothepurchaserthesignificantrisksandrewardsofownershipofthegoods;• theentityretainsneithercontinuingmanagerialinvolvementtothedegreeusuallyassociatedwithownershipnor
effectivecontroloverthegoodssold;• theamountofrevenuecanbemeasuredreliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;
and• thecostsincurredortobeincurredinrespectofthetransactioncanbemeasuredreliably.
Rendering of services
Whentheoutcomeofatransactioninvolvingtherenderingofservicescanbeestimatedreliably,revenueassociatedwiththetransactionisrecognisedbyreferencetothestageofcompletionofthetransactionatthereportingdate.Theoutcomeofatransactioncanbeestimatedreliablywhenallthefollowingconditionsaresatisfied:• theamountofrevenuecanbemeasuredreliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;• thestageofcompletionofthetransactionatthereportingdatecanbemeasuredreliably;and• thecostsincurredforthetransactionandthecoststocompletethetransactioncanbemeasuredreliably.
Whenservicesareperformedbyanindeterminatenumberofactsoveraspecifiedtimeframe,revenueisrecognisedonastraight-linebasisoverthespecifiedtimeframeunlessthereisevidencethatsomeothermethodbetterrepresentsthestageofcompletion.Whenaspecificactismuchmoresignificantthananyotheracts,therecognitionofrevenueispostponeduntilthesignificantactisexecuted.
When theoutcomeof the transaction involving the renderingofservicescannotbeestimated reliably, revenue isrecognisedonlytotheextentoftheexpensesrecognisedthatarerecoverable.
Servicerevenueisrecognisedbyreferencetothestageofcompletionofthetransactionatthereportingdate.Stageofcompletionisdeterminedbyservicesperformedtodateasapercentageoftotalservicestobeperformed.
Interest
Interestisrecognised,insurplusordeficit,usingtheeffectiveinterestratemethod.
1.9 Revenue from non-exchange transactions
Non-exchangetransactionsaredefinedastransactionswheretheentityreceivesvaluefromanotherentitywithoutdirectlygivingapproximatelyequalvalueinexchange.
ANNUAL REPORT 2017/18
Revenueisthegrossinflowofeconomicbenefitsorservicepotentialduringthereportingperiodwhenthoseinflowsresultinanincreaseinnetassets,otherthanincreasesrelatingtocontributionsfromowners.
Fairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.
Measurement
Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netoftradediscountsandvolumerebates.
Government grants
Governmentgrantsarerecognisedasrevenuewhen:• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity,• theamountoftherevenuecanbemeasuredreliably,and• totheextentthattherehasbeencompliancewithanyrestrictionsassociatedwiththegrant.
Theentityassessesthedegreeofcertaintyattachedtotheflowoffutureeconomicbenefitsorservicepotentialonthebasisoftheavailableevidence.Certaingrantspayablebyonelevelofgovernmenttoanotheraresubjecttotheavailabilityoffunds.Revenuefromthesegrantsisrecognisedonlywhenit isprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity.Anannouncementatthebeginningofafinancialyearthatgrantsmaybeavailableforqualifyingentitiesinaccordancewithanagreedprogrammemaynotbesufficientevidenceoftheprobabilityoftheflow.Revenueisthenrecognisedonlyonceevidenceoftheprobabilityoftheflowbecomesavailable.
Restrictionsongovernmentgrantsmayresultinsuchrevenuebeingrecognisedonatimeproportionbasis.Wherethereisnorestrictionontheperiod,suchrevenueisrecognisedonreceiptorwhentheActbecomeseffective,which-everisearlier.
Whengovernmentremitgrantsonareimbursementbasis,revenueisrecognisedwhenthequalifyingexpensehasbeenincurredandtotheextentthatanyotherrestrictionshavebeencompliedwith.
1.10 Borrowing costs
Borrowingcostsare interestandotherexpensesincurredbyanentity inconnectionwiththeborrowingoffunds.Borrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.
1.11 Comparative figures
Wherenecessary,comparativefigureshavebeenreclassifiedtoconformtochangesinpresentationinthecurrentyear.
FILM AND PUBLICATION BOARD
1.12 Fruitless and wasteful expenditure
Fruitlessexpendituremeansexpenditurewhichwasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.
Allexpenditurerelatingtofruitlessandwastefulexpenditureisrecognisedasanexpenseinthestatementoffinancialperformance in the year that theexpenditurewas incurred.Theexpenditure is classified in accordancewith thenatureoftheexpense,andwhererecovered,itissubsequentlyaccountedforasrevenueinthestatementoffinancialperformance.
1.13 Irregular expenditure
IrregularexpenditureasdefinedinSection1ofthePFMAisexpenditureotherthanunauthorisedexpenditure,incurredincontraventionoforthatisnotinaccordancewitharequirementofanyapplicablelegislation,including-a) thisAct;orb) theStateTenderBoardAct,1968(ActNo.86of1968),oranyregulationsmadeintermsoftheAct;orc) anyprovinciallegislationprovidingforprocurementproceduresinthatprovincialgovernment.
NationalTreasurypracticenoteno.4of2008/2009,whichwasissuedintermsofsections76(1)to76(4)ofthePFMA,requiresthefollowing(effectivefrom1April2008):
Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialandwhichwascondonedbeforeyearendand/orbeforefinalisationofthefinancialstatementsmustberecordedappropriatelyintheirregularexpenditureregister.Insuchaninstance,nofurtheractionisrequiredwiththeexceptionofupdatingthenotetothefinancialstatements.
Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandforwhichcondonementisbeingawaitedatyearendmustberecordedintheirregularexpenditureregister.Nofurtheractionisrequiredwiththeexceptionofupdatingthenotetothefinancialstatements.
Whereirregularexpenditurewasincurredinthepreviousfinancialyearandisonlycondonedinthefollowingfinancialyear,theregisterandthedisclosurenotetothefinancialstatementsmustbeupdatedwiththeamountcondoned.
IrregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandwhichwasnotcondonedbyNationalTreasuryortherelevantauthoritymustberecordedappropriatelyintheirregularexpenditureregister.Ifliabilityfortheirregularexpenditurecanbeattributedtoaperson,adebtaccountmustbecreatedifsuchapersonisliableinlaw.
Immediate stepsmust thereafter be taken to recover the amount from thepersonconcerned. If recovery is notpossible,theAccountingOfficerorAccountingAuthoritymaywriteofftheamountasdebtimpairmentanddisclosesuchintherelevantnotetothefinancialstatements.Theirregularexpenditureregistermustbeupdatedaccordingly.Iftheirregularexpenditurehasnotbeencondonedandnopersonisliableinlaw,theexpenditurerelatedtheretomustremainagainsttherelevantprogramme/expenditureitem,bedisclosedassuchinthenotetothefinancialstatementsandupdatedaccordinglyintheirregularexpenditureregister.
ANNUAL REPORT 2017/18
1.14 Budget information
Entityaretypicallysubjecttobudgetarylimitsintheformofappropriationsorbudgetauthorisations(orequivalent),whicharegiveneffectthroughauthorisinglegislation,appropriationorsimilar.
Generalpurposefinancialreportingbyentityshallprovideinformationonwhetherresourceswereobtainedandusedinaccordancewiththelegallyadoptedbudget.
Theapprovedbudgetispreparedonaaccrualbasisandpresentedbyeconomicclassificationlinkedtoperformanceoutcomeobjectives.
Theapprovedbudgetcoversthefiscalperiodfrom1April2017to31March2018.
Thebudgetfortheeconomicentityincludesalltheentitiesapprovedbudgetsunderitscontrol.
The financial statements and thebudget areon the samebasisof accounting, therefore a comparisonwith thebudgetedamountsforthereportingperiodhavebeenincludedinthestatementofcomparisonofbudgetandactualamounts.
1.15 Related parties
Arelatedpartyisapersonoranentitywiththeabilitytocontrolorjointlycontroltheotherparty,orexercisesignificantinfluenceovertheotherparty,orviceversa,oranentitythatissubjecttocommoncontrol,orjointcontrol.
Control is thepower togovern the financial andoperatingpoliciesof anentity soas toobtainbenefits from itsactivities.
Jointcontrol istheagreedsharingofcontroloveranactivitybyabindingarrangement,andexistsonlywhenthestrategicfinancialandoperatingdecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol(theventurers).
Related-partytransactionisatransferofresources,servicesorobligationsbetweenthereportingentityandarelatedparty,regardlessofwhetherapriceischarged.
Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofanentity,butisnotcontroloverthosepolicies.
Managementarethosepersonsresponsibleforplanning,directingandcontrollingtheactivitiesoftheentity,includingthosechargedwiththegovernanceoftheentityinaccordancewithlegislation,ininstanceswheretheyarerequiredtoperformsuchfunctions.
Closemembersof the familyofapersonareconsidered tobe those familymemberswhomaybeexpected toinfluence,orbeinfluencedby,thatmanagementintheirdealingswiththeentity.
FILM AND PUBLICATION BOARD
1.15 Related parties (continued)
Theentityisexemptfromdisclosurerequirementsinrelationtorelatedpartytransactionsifthattransactionoccurswithinnormalsupplierand/orclient/recipientrelationshipsontermsandconditionsnomoreorlessfavourablethanthosewhichit isreasonabletoexpecttheentitytohaveadoptedifdealingwiththat individualentityorpersoninthesamecircumstancesandtermsandconditionsarewithinthenormaloperatingparametersestablishedbythatreportingentity’slegalmandate.
Wheretheentityisexemptfromthedisclosuresinaccordancewiththeabove,theentitydisclosesnarrativeinformationaboutthenatureofthetransactionsandtherelatedoutstandingbalances,toenableusersoftheentity’sfinancialstatementstounderstandtheeffectofrelated-partytransactionsonitsfinancialstatements.
2. New standards and interpretations
ThefollowingstandardsofGRAPhavebeenissuedbutarenotyeteffectivefortheyearended31March2016:
GRAP 20 – Related-Party DisclosuresThe objective of this Standard is to ensure that a reporting entity’s financial statements contain the disclosuresnecessarytodrawattentiontothepossibilitythatitsfinancialpositionandsurplusordeficitmayhavebeenaffectedbytheexistenceofrelatedpartiesandbytransactionsandoutstandingbalanceswithsuchparties.
GRAP 32 – Service Concession Arrangements: GrantorTheobjectiveofthisStandardistoprescribetheaccountingforserviceconcessionarrangementsbythegrantor,apublicsectorentity.
GRAP 34 – Separate Financial StatementsTheobjectiveofthisStandardistoprescribetheaccountinganddisclosurerequirementsforinvestmentsincontrolledentities,jointventuresandassociateswhenanentitypreparesseparatefinancialstatements.
GRAP 35 – Consolidated Financial StatementsTheobjectiveofthisStandardistoestablishprinciplesforthepresentationandpreparationofconsolidatedfinancialstatementswhenanentitycontrolsoneormoreotherentities.
GRAP 36 – Investments in Associates and Joint Ventures The objectiveofthisStandardistoprescribetheaccountingforinvestmentsinassociatesandjointventuresandtosetouttherequirementsfortheapplicationoftheequitymethodwhenaccountingforinvestmentsinassociatesandjointventures.
GRAP 37 – Joint ArrangementsTheobjective of thisStandard is to establishprinciples for financial reportingby entities that have an interest inarrangementsthatarecontrolledjointly(i.e.jointarrangements).
ANNUAL REPORT 2017/18
GRAP 38 – Disclosure of Interests in Other EntitiesTheobjectiveofthisStandardistorequireanentitytodiscloseinformationthatenablesusersofitsfinancialstatementstoevaluate.
GRAP 108 – Statutory ReceivablesTheobjectiveofthisStandardistoprescribeaccountingrequirementsfortherecognition,measurement,presentationanddisclosureofstatutoryreceivables.
GRAP 109 – Accounting by Principals and AgentsTheobjectiveof thisStandard is tooutlineprinciples tobeusedby an entity to assesswhether it is party to aprincipal-agentarrangement,andwhetheritisaprincipaloranagentinundertakingtransactionsintermsofsuchanarrangement.
GRAP 110 – Living and Non-living ResourcesTheobjectiveofthisStandardistoprescribethe:
- Recognition,measurement,presentationanddisclosurerequirementsforlivingresources;and- Disclosurerequirementsfornon-livingresources.
FILM AND PUBLICATION BOARD
FiguresinRand 2018 2017(Restated)
3. Cash and cash equivalentsCashandcashequivalentsconsistof:
Cashonhand 4118 5937
Bankbalances 15238573 5709743
Short-termdeposits 55138 2838906
15 297 829 8 554 586
Current year cash andcash equivalentsbalancewill be used to finance commitmentsdisclosed in note28duringthe2017/2018financialyear.
4. Receivables from exchange transactionsTradedebtors 23316 114615
Debtors 3047250 2768209
Prepayments 839954 201241
3910520 3084065
Fair value of trade and other receivables
Tradeandotherreceivables 3 910 520 3 084 065
5. Property, plant and equipment
2018 2017
Cost Accumulateddepreciation
Carrying value
Cost Accumulateddepreciation
Carrying value
Furnitureandfittings 3522336 (1210163) 2312173 3522336 (1002809) 2519527
Motorvehicles 693291 (404061) 289230 693291 (294891) 398400
Officeequipment 2339153 (1157593) 1181560 1778562 (969349) 809213
Computerequipment 6351985 (3330744) 3021241 5768373 (2614458) 3153915
Leaseholdimprovements 1968866 (1696781) 272085 1968866 (1424695) 544171
Leased–officeequipment 363001 (363001) - 363001 (252084) 110917
Leased–motorvehicles 2038941 (1472569) 566372 2038941 (792922) 1246019
Total 17 277 573 (9 634 912) 7 642 661 16 133 370 (7 351 208) 8 782 162
ANNUAL REPORT 2017/18
Reconciliation of property, plant and equipment – 31 March 2018
Opening balance
Additions Disposals Depreciation Impairmentloss
Total
Furnitureandfittings 2519527 - - (207354) - 2312173
Motorvehicles 398400 - - (109170) - 289230
Officeequipment 809213 560591 - (188244) - 1181560
Computerequipment 3153915 603664 (13969) (722369) - 3021241
Leaseholdimprovements 544171 - - (272086) - 272085
Leased–officeequipment 110917 - - (110917) - -
Leased–motorvehicles 1246019 - - (679647) - 566372
8 782 162 1 164 255 (13 969) (2 289 787) - 7 642 661Reconciliation of property, plant and equipment – 31 March 2017
Opening balance
Additions Disposals Depreciation Total
Furnitureandfittings 2417329 318165 - (215967) 2519527
Motorvehicles 414353 193331 (104765) (104519) 398400
Officeequipment 616050 403261 - (210098) 809213
Computerequipment 1692885 2314271 (46187) (807054) 3153915
Leaseholdimprovements 816256 - - (272085) 544171
Leased–officeequipment 231917 - - (121000) 110917
Leased–motorvehicles 1925666 - - (679647) 1246019
8 114 456 3 229 028 (150 952) (2 410 370) 8 782 162
Other information
Therewerenoassetsheldassecurityatreportingdate.
6. Intangible assets
2018 2017
Cost Accumulateddepreciation
Carrying value
Cost Accumulateddepreciation
Carrying value
Computersoftware 12315602 (1914437) 10401165 8809052 (1751804) 7057248
FILM AND PUBLICATION BOARD
6. Intangible assets (continued)
Reconciliation of intangible assets – 2018 Opening balance
Additions Amortisation Total
Computersoftware 7057248 3506551 (162634) 10401165
Reconciliation of intangible assets – 2017 Opening balance
Additions Amortisation Total
Computersoftware 1874214 5441240 (258206) 7057248
7. Finance lease obligation
FiguresinRand 2018 2017(Restated)
Minimum lease payments due
-withinoneyear 721169 1015507
-insecondtofifthyearinclusive - 721169
721169 1736676
less:futurefinancecharges (51460) (239167)
Present value of minimum lease payments 669 709 1 497 509
Non-currentliabilities - 669708
Currentliabilities 669708 827801
669 708 1 497 509
TheFPBhasenteredintoanewleaseagreementfor11vehiclesforaperiodofthreeyearseffectivefrom05February2016,ending31January2019.Thetransactionhasbeentreatedasafinance leaseaspertherequirementsofGRAP13.Theleasecontractdoesnothaveanannualescalation.
TheFPBhasenteredintoaleaseagreementforsixphotocopiersforaperiodofthreeyears(36months)effectivefrom01March2015,ending28February2018.Thetransactionhasbeentreatedasafinance leaseaspertherequirementsofGRAP13.Theleasecontractdoesnothaveanannualescalation.
Interest ratesare fixedat thecontractdate.All leaseshave fixed repaymentsandnoarrangementshavebeenenteredintoforcontingentrent.
ANNUAL REPORT 2017/18
8. Payables from exchange transactions
FiguresinRand 2018 2017(Restated)
Tradepayables 3223388 3572005
Paymentsreceivedinadvanced–contractinprocess 1976946 1940595
Debtorswithcreditbalance 1829208 1372608
Pension 453162 498960
PAYE - 100580
Salaryandwagescontrol - 142181
Medicalaid 250355 246081
Otheraccruals 212241 -
7 945 300 7 873 010
9. Provisions
Reconciliation of provisions – 2018 Opening balance
Additions Utilised during the year
Total
Performance bonuses 1 422 699 1 445 778 (1 367 208) 1 501 269
Leave pay 1 224 834 387 899 (463 157) 1 149 576
Litigation and claims 625 339 3 111 048 (51 048) 3 685 339
3 272 872 4 944 725 (1 881 413) 6 336 184
Reconciliation of provisions – 2017 Opening balance
Additions Utilised during the year
Total
Performancebonuses 1306202 1218785 (1102288) 1422699
Leavepay 1020609 298073 (93848) 1224834
Otherprovisions 97218 528121 - 625339
2 424 029 2 044 979 (1 196 136) 3 272 872
ProvisionforperformancebonusisbasedonbudgetedamountofR1501269asper2018/2019budget,paymentforbonusesisnotexpectedtoexceedthebudgetedamount.
Provisionraisedforoutstandingleavebalancesasat31March2018
ProvisionraisedforlitigationandclaimsrelatingtoanarbitrationawardgrantedagainsttheFPBregardingalabourrelationsmatter, the litigation for contractual disputesbetween FPBand service provider and the appeal by themembersofsocietyonthefilm(Inxeba)casethatiscurentlyawaitingthecourtjudgment.
FILM AND PUBLICATION BOARD
10. Revenue
FiguresinRand 2018 2017(Restated)
Regulationfees(classificationandregistrationfees) 7741329 6718708
Transfersfromothergovernmententities 91684000 86472000
99 425 329 93 190 708
The amount included in revenue arising from exchanges of goods or services are as follows:
Regulationfees(classificationandregistrationfees) 7741329 6718708
Otherrevenue 9875 79986
Interestreceived-investment 863674 1062566
8 614 878 7 861 260
The amount included in revenue arising from non-exchange transactions is as follows:
Taxation revenue
Transfer revenue
Transfersfromothergovernmententities 91684000 86472000
11. Other revenue
Saleoftenderdocuments 4500 11100
Otherincomeandrecoveries 5375 68886
9 875 79 986
12. Investment revenue
Interest revenue
Interestfrominvestmentaccounts 863674 1062566
ANNUAL REPORT 2017/18
13. Employees costs
FiguresinRand 2018 2017(Restated)
SalariesandBonuses 29501790 27998445
Classifiersremuneration 5505165 4566343
Medicalaid–companycontributions 2692432 2519607
UnemploymentInsuranceFund 286274 289110
Skillsdevelopmentlevy 60823 388410
Leavepayprovisioncharge (75258) 210972
Retirementfundcontributions 4250969 4060329
Garnishee 55681 147370
PAYE 10945080 9650289
Salarytemporaryemployees 18929 65851
53 241 885 49 896 726
Average staff
Total number of employees as at 31 March 2018 93
Thetotalnumberofclassifierswas39fortheperiodended31March2018andthetotalamountpaidforclassifiers’remuneration
amountedtoR5499727-(31March2017:R4566343)excludingPAYE.
TheFPBhasaninternshipprogrammeinvolving10positions.
FILM AND PUBLICATION BOARD
14. Administrative
FiguresinRand 2018 2017(Restated)
Advertising 471939 6500
Externalauditfees 1867641 1860453
Bankcharges 77760 62402
Cleaning 286188 679933
Internalauditfees 70467 230208
Consultingandprofessionalfees* 5322826 3202595
Leaserentalsonoperatinglease 5859249 4855261
FPBCouncil** 1798353 1924969
Insurance 622778 492385
ITexpenses 4226673 2926236
Fleet 117797 97238
Fuelandoil 663939 538078
Postageandcourier 28754 60760
Printingandstationery 543457 1211155
Publicrelationscompaign 2233067 3945371
Researchanddevelopmentcosts 9850 3593004
Security(guardingofmunicipalproperty) - 1857
Staffdevelopment,recruitmentandwelfare 2414511 2429646
Subscriptionsandmembershipfees 235547 265964
Telephoneandfax 1033915 1282725
Transportandfreight 84453 -
Travel–local 4664024 3990730
Travel–International 466554 1059951
WaterandLights 621330 692831
Disposalsofassets (11561) (23909)
Workshopsandmeetings 2201808 1018636
Lossonforexexchange 350 -
Stakeholdersrelations 36113 -
Leaseexpenses 715726 645355
ReviewBoard(TribunalAppeal) 163635 107297
Storage–classificationmaterial 123415 248064
Receivableswrittenoff - 201731
36 950 558 37 607 426
ANNUAL REPORT 2017/18
ConsultingservicesexpenditureincludesprofessionalfeesforpriorandcurrentyearrelatedtotheprojectsundertakenasoutlinedintheAnnualPerformancePlans.
Administrativeandoperationalexpensesarerelatedtoactivitiestopursueandachievestrategicoutcomes.
*ConsultingfeesisinclusiveoflegalfeesofR3995156.23asat31March2018(R2184700.51,31March2017)
**Councilmembersarepaidformeetingattendance&travelclaims.
15. Other expenses
FiguresinRand 2018 2017(Restated)
Finance leases 187 705 319 784
16. Auditors’ remuneration
FiguresinRand 2018 2017(Restated)
Fees 1 867 641 1 860 453
17. Cash generated from operations
FiguresinRand 2018 2017(Restated)
Surplus 7466311 3840748
Adjustments for:Depreciationandamortisationexpense 2452419 2668576
Lossonsaleofassets - 25021
Gainonsaleofassets (11561) (48930)
Financecosts–Financeleases 187705 319784
Movementsinprovisions 3063312 848843
Changes in working capital:Receivablesfromexchangetransactions (826455) (1021108)
Payablesfromexchangetransactions 72265 4568810
12 403 996 11 201 744
FILM AND PUBLICATION BOARD
18. Employee benefit obligations
Retirement benefit payment
TheFPBcontributes for all qualifyingemployees the retirementbenefits toaFund inwhichassetsareheldandcontrolledbyLibertyLife.Asat31March2018,currentservicescostsofR4250969(31March2017R4060329)wererecognisedasexpenseslimitedtothecontributionsthatwerepaid.Actualcontributionspaidduringthecurrentfinancialyearhavebeendisclosedasnote13.
19. Taxation
NoprovisionhasbeenmadefortaxationastheFPBisexemptfromincometaxintermsofSection10oftheIncomeTaxAct.TheFPBisexempt fromthepaymentofvalueaddedtax (VAT),asaresultVATpaidbytheFPBis notrefundablebySARS.
20. Operating lease
20.1 Operating lease – head office
FPBhasanoutstandingcommitmentinrespectofoperatingleaseforheadofficesituatedinCenturion.Theleaseagreementwasenteredintoforaperiodof5yearseffectivefrom1February2012.
InFebruary2014,theFPBaquiredadditionalofficespaceforitsheadofficesituatedinCenturion,Theleaseagreementwasenteredintoforaperiodof3yearseffectivefrom1February2014.Operatingleasesliabilitiesforthesetwoleasesfalldueasfollows:
Annualescalations 10%
FiguresinRand 2018 2017(Restated)
Future minimum lease payments
Upto1year 3693286 3052302
5ormoreyears - -
20.2 Operating lease – Durban office
TheFPBaquiredadditionalofficespaceforitsregionalofficesituatedinDurban,Theleaseagreementwasenteredintoforaperiodof3yearseffectivefrom1August2015.Operatingleasesliabilitiesforthisleasefalldueasfollows:
Annualescalations 9%
ANNUAL REPORT 2017/18
FiguresinRand 2018 2017(Restated)
Future minimum lease paymentsUpto1year 177913 519050
2-5years - 177913
5ormoreyears - -
177 913 696 963
20.3 Operating lease – Cape Town office
TheFPBaquiredadditionalofficespacefortheirregionalofficesituatedinCapeTown,Theleaseagreementwasenteredintoforaperiodof5yearseffectivefrom1March2016.Operatingleasesliabilitiesforthisleasefalldueasfollows:
Annualescalations 5.5%
FiguresinRand 2018 2017(Restated)
Future minimum lease payments
Upto1year 496148 470282
2-5years 1027333 1523481
5ormoreyears - -
1 523 481 1 993 763
21. Contingencies
1) Thisamount relates to labourdisputesbetweenFPBand threeemployeeswho institutedproceedingsat theCCMAforconstructivedismissalandunfairdismissal.
2) ThisamountrelatestolegalcoststhatFPBwillincurforlabour-relateddisputesforrepresentationincourtandCCMA3) This amount relates to a contract disputes between FPB and the service provider. The amount is for legal
representation.
FiguresinRand 2018 2017(Restated)
Contingentliabilityforlabourdisputes - 2825199
Contingentliabilityforlabourdisputes(1) 1875000 -
Contingentliabilityforlegalcost(2) 700000 -
Contingentliabilityforcontractdispute(3) 300000 -
2 875 000 2 825 199
FILM AND PUBLICATION BOARD
22. Events after the reporting date
Therearenoevents thatcameto theattentionofmanagementafter the reportingdate that require the reportedfiqurestobeadjusted.
23. Related parties
Related-party transactions
FiguresinRand 2018 2017(Restated)
Funding – operating grants
DepartmentofCommunications 91684000 86472000
Remuneration of management
Councillors/Board members
Non-executive members - Council Fee 2018 2017
MpumlwanaNFT(Chairperson) 276464 276464 207773
MangenaS(DeputyChairperson) 432408 432408 416801
DitlhakeM 186116 186116 220648
NevondweLT 138228 138228 146367
SkeepersN 245299 245299 239173
DubazanaN 170223 170223 142657
MudununguA 18940 18940 143435
MhlakazaNM 28960 28960 -
MakhasiY* - - -
1 496 638 1 496 638 1 516 854
Independent – Audit and Risk Committee members 2018 2017
DhladhlaM 45202 51604
NkosiZ 114732 12181
159 934 63 785
ANNUAL REPORT 2017/18
23. Related parties (continued)
ICT Steering Committee members 2018 2017
BaloyiN 21728 -
NdabaS 50369 -
MenyeVC 22417 -
Subtotal 94514 -
94 514 -
*MakhasiYisemployedbystateanddoesnotearnCouncilfeefromFPB
FILM AND PUBLICATION BOARD
23. Related parties (continued)
2018 – Executive management Salary Perfo-mance
bonuses
Retirementfund
contribu-tions
Medical aid
contribu-tions
Settlementpayout
Total
WakasheTP–ChiefExecutiveOfficer* 1159510 - 59270 29816 1273679 2522275
RisibaS–ChiefOperationsOfficer*** 427280 - 19757 16488 453969 917494
KadiP–SharedServiceExecutive**** 378112 49440 9780 5908 - 443240
PhahlaDL–ChiefInformationOfficer***** 833159 46968 75638 34872 - 990637
GouwsR–ChiefFinancialOfficer** 201572 51482 10286 - - 263340
DzebuM–ActingChiefExecutiveOfficer 104452 - - - - 104452
Subtotal - - - - 1727648 -
3 104 085 147 890 174 731 87 084 1 727 648 5 241 438
2017 - Executive management Salary Perfor-mance
bonuses
Retirementfund
contribu-tions
Medical aid
contribu-tions
Total
WakasheTP–ChiefExecutiveOfficer 1397112 38645 69270 40787 1545814
RisibaS–ChiefOperationsOfficer 1147371 32204 57725 40787 1278087
KadiP–SharedServiceExecutive 1143872 31882 57148 40787 1273689
PhahlaDL–ChiefInformationOfficer 1032761 30594 54839 40787 1158981
GouwsR–ChiefFinancialOfficer 1272111 22356 60109 - 1354576
5 993 227 155 681 299 091 163 148 6 611 147
*WakasheTPresignedastheCEOinAugust2017
**GouwsRresignedastheCFOinApril2017
***RisibaSresignedastheCOOinMay2017
****KadiPresignedastheSSEinJuly2017
*****PhahlaDLresignedastheCIOinNovember2017
ANNUAL REPORT 2017/18
24. Risk management liquidity risk
TheFPBisexposedtoliquidityriskonlywithregardtothepaymentofitspayablesandcommitments.Thesepayablesareallduewithintheshort-term.TheFPBmanagesitsliquidityriskbyholdingsufficientcashinitsbankaccount,supplementedbycashavailableininvestmentaccounts.
At 31 March 2018 Less than 1 year Between 1 and 2 years
Between 2 and 5 years
Over 5 years
Tradeandotherpayables 7945300 - - -
Commitments 7723998 361922 - -
At 31 March 2017 Less than 1 year Between 1 and 2 years
Between 2 and 5 years
Over 5 years
Tradeandotherpayables 7873010 - - -
Commitments 13799108 1748176 - -
Interest rate risk
TheFPBinvestssurpluscashonwhichitearnsinterestincome.Theinterestincomeisnotindependentofchangesinmarketinterestrates.
Credit risk
Creditriskconsistsmainlyofcashdeposits,cashequivalents,derivativefinancialinstrumentsandtradedebtors.Theentitydepositscashonlywithmajorbankswithhighqualitycreditstandingandlimitsexposuretoanyonecounterparty.
TradereceivablesareexposedtoalowcreditriskasmostofFPB’srevenuetransactionsrequiredeposits.
25. Fruitless and wasteful expenditure
FiguresinRand 2018 2017(Restated)
OpeningBalance 48746 231878
InterestpenaltybyTelkom(1) - 7482
Flightmissedbyemployees(2) 6303 9240
Accomodationbookedandpaidfor,notutilisedbyemployee(3) - 6190
Carrentalforextradaysnotauthorised(4) 1482 5069
Settlementoftheformeremployees(5) 2880068 -
Servicesrenderedandpaidforbutnotauthorised(6) 61406 -
Less:Amountswrittenoff - (201731)
Less:Amountsrecovered - (9382)
Total 2 998 005 48 746
FILM AND PUBLICATION BOARD
25. Fruitless and wasteful expenditure (continued)
1) TheFPBmadepaymentsontime.However,theaccountreferencewasnotcorrect.Telkomhasbeenrequestedto reallocate amounts to correct accounts.Confirmation of reversal of interest has been requested and theemployeehasbeenissuedwithawarningletter.
2) TheemployeesmissedtheflightforvariousreasonsandtheflightwasbookedandpaidforbyFPB.Stepsweretakenagainsttheemployeesconcerned.
3) AccommodationwasbookedandpaidforbyFPB,butnotutilisedbyemployees.Theamountwasrecoveredfromoneemployeeandstepsweretakenfortheotheremployee.
4) AnemployeedelayedreturningthehiredvehicletoarentalcompanybytwodaysandthecarrentalcompanychargedtheFPBapenalty.Aninvestigationisunderway.
5) TheFPBmadeasettlementpaymenttotheformerCEOandCOOfollowinganinvestigationintoallegedimproperconduct.Alegalopinionhasbeenobtainedwhereinthisamountisclassifiedasfruitlessandwastefulexpenditure.
6) Theapplicantsfortheexcutivepositionsweresenttoawrongserviceproviderforassessmentsandtheresultsoftheassessmentswerenotutilised.
26. Irregular expenditure
FiguresinRand 2018 2017(Restated)
Openingbalance 50054 254735
Add:Irregularexpenditure–currentyear 1220865 -
Less:Amountscondoned - (204681)
Irregular expenditure awaiting condonement/payment 1 270 919 50 054
TheFPBincurredirregularexpenditureofR114912inrespectofwebsitemaintenance.TheFPBrequestedproposalsin2016.Althoughthetermsofreferencedonotmakereferencetothedurationofthecontract,allproposalswerefora12monthperiod.However,theSLAisfora24monthperiod.TheterminationdateaccordingtothePOandSLAisJuly2017andApril2019respectively.
TheFPBincurredirregularexpenditureofR1105952.76inrespectofafterhourscallroutingbynotterminatingthecontractwithaserviceproviderandtheserviceprovidercontinuedtorendertheserviceoutsidethecontract.Theamounttobepaidtotheserviceproviderisstillunderdispute.
ANNUAL REPORT 2017/18
27. Prior-period errors
27.1 Provision of expense
Duringthereviewofprovisionfor2017/18itwasnotedthatacertainamountofprovisionforlabourdisputeswasnotcateredfor.Therefore,basedontheaccrual,accountingprinciple,aportionoftheprovisionneedstoberecognisedindifferentaccountingperiods.
FiguresinRand 2018 2017(Restated)
Statement of financial position
Provisionofexpense - 477073
Statement of financial performance
Legalexpense - (477073)
28. Commitments
FiguresinRand 2018 2017(Restated)
Authorisedcapitalexpenditure
Already contracted for but not provided for• Property,plantandequipment 3525290 6737485
Total capital commitmentsAlreadycontractedforbutnotprovidedfor 3525290 6737485
Authorised operational expenditure
Already contracted for but not provided for• Expenditure1 4560630 8809799
Total operational commitmentsAlreadycontractedforbutnotprovidedfor 4560630 8809799
Commitmentsdisclosedrelatestocontractsawardedbutnotcompletedbefore31March2018.Theoperatingleasecommitmentshavebeendisclosedinnote20.Cashandcashequivalentsbalancedisclosedinnote3aswellastheMTEFbudgetwillbeutilisedtofinancethesecommitmentsduringthe2018/2019financialyear.Thenotehasbeenrestatedasaresultofthecorrectiononsomeofthecontracts.
29. Changes in accounting estimate
GRAP17– Infrastructure,PlantandEquipment requires the reviewof theuseful lifeofanassetat leastateachfinancialyearend.TheFPBdidnotreviseitsusefullifeasat31March2018.
FILM AND PUBLICATION BOARD
PERFORMANCE INFORMATION REPORT
ANNUAL REPORT 2017/18
FILM AND PUBLICATION BOARD
Strategic Outcome 1
Effectiveandvisiblemonitoringofindustrythroughouttheentirevaluechain(contentcreators,producersanddistributorsofFPGs)fortheprotectionofconsumersandprimarilychildrenandadultsthroughinformation.
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
%ofcontentclassified 100%(1805)ofalleligiblesubmissions
wereclassified
100%ofeligiblesubmissions(games,
films,publications)classified
100%(1886)ofeligiblesubmissionswere
classified
Achieved None
Nooftrendanalysisreports
%changeintherateofsubmissions,
registrationsandrenewals
QuarterlytrendsanalysisreportQ1-Q4
(2016/2017)compiled
4trendanalysisreportsontherateof
classificationsubmissions,registrations
and/orrenewalscompiled
All4trendanalysisreportsontherateof
classificationsubmissions,registrations
andrenewalscompiled
Achieved None
LevelsofadherencetoClassification
GovernanceFramework
TrainingontheGovernanceFramework
wasconductedwiththe8Durban
classifiersinFebruary2017
TrainingwasconductedwiththeDurban
chiefclassifiersinFebruary2017
TrainingontheGovernanceFramework
wasconductedwiththe9newGauteng
chiefclassifiersinJanuaryandFebruary
2017
Trainingwasconductedwithallthe
GautengclassifiersinMarch2017
Reviewandimplementtheapproved
ClassificationGovernanceFramework,
achievingmoderatelevelsofadherence
ClassificationGovernanceFramework
hasbeenreviewed,approvedand
implemented
Achieved None
Numberofworkshopsconducted 40FPBclassifiersand4contractedonline
distributorsweretrained.
Gamestrainingwasconductedwith7
Gautengclassifiers
3Gautengand1Durbanpre-workshop
meetingsconductedaspartofneeds
analysisfortraining.
6workshopsandtrainingwasconducted
withtheGautengandDurbanclassifiers
ascompulsoryquarterlytrainingand
debriefings.
TrainingwasconductedwithOn-Tap
TVandPrideTVandfeedbackonthe
classificationreportswasprovidedto
Showmaxmanagement
8workshopsonClassificationGuidelines
conductedwithclassifiersandcompliance
monitors
11workshopsconductedwithclassifiers
(FPBandonlinedistributorclassifiers)
Achieved Workshopsincludedonlinedistributors
whohaverecentlysignedlicensing
agreements–thisresultedinthe
overachievementoftarget
ANNUAL REPORT 2017/18
Strategic Outcome 1
Effectiveandvisiblemonitoringofindustrythroughouttheentirevaluechain(contentcreators,producersanddistributorsofFPGs)fortheprotectionofconsumersandprimarilychildrenandadultsthroughinformation.
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
%ofcontentclassified 100%(1805)ofalleligiblesubmissions
wereclassified
100%ofeligiblesubmissions(games,
films,publications)classified
100%(1886)ofeligiblesubmissionswere
classified
Achieved None
Nooftrendanalysisreports
%changeintherateofsubmissions,
registrationsandrenewals
QuarterlytrendsanalysisreportQ1-Q4
(2016/2017)compiled
4trendanalysisreportsontherateof
classificationsubmissions,registrations
and/orrenewalscompiled
All4trendanalysisreportsontherateof
classificationsubmissions,registrations
andrenewalscompiled
Achieved None
LevelsofadherencetoClassification
GovernanceFramework
TrainingontheGovernanceFramework
wasconductedwiththe8Durban
classifiersinFebruary2017
TrainingwasconductedwiththeDurban
chiefclassifiersinFebruary2017
TrainingontheGovernanceFramework
wasconductedwiththe9newGauteng
chiefclassifiersinJanuaryandFebruary
2017
Trainingwasconductedwithallthe
GautengclassifiersinMarch2017
Reviewandimplementtheapproved
ClassificationGovernanceFramework,
achievingmoderatelevelsofadherence
ClassificationGovernanceFramework
hasbeenreviewed,approvedand
implemented
Achieved None
Numberofworkshopsconducted 40FPBclassifiersand4contractedonline
distributorsweretrained.
Gamestrainingwasconductedwith7
Gautengclassifiers
3Gautengand1Durbanpre-workshop
meetingsconductedaspartofneeds
analysisfortraining.
6workshopsandtrainingwasconducted
withtheGautengandDurbanclassifiers
ascompulsoryquarterlytrainingand
debriefings.
TrainingwasconductedwithOn-Tap
TVandPrideTVandfeedbackonthe
classificationreportswasprovidedto
Showmaxmanagement
8workshopsonClassificationGuidelines
conductedwithclassifiersandcompliance
monitors
11workshopsconductedwithclassifiers
(FPBandonlinedistributorclassifiers)
Achieved Workshopsincludedonlinedistributors
whohaverecentlysignedlicensing
agreements–thisresultedinthe
overachievementoftarget
FILM AND PUBLICATION BOARD
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
Phasesofimplementation StrategysubmittedforCouncilapproval All4phasesofthedevelopmentofthe
labellingstrategyforphysicalfilmand
gamesimplemented
All4phasesofthedevelopmentofthe
labellingstrategyachieved:
Phase1:Consultationsconductedwith
DistributorsontheLabellingStrategyand
inputsobtained
Phase2:LabellingStrategydeveloped
andapproved
Phase3:Enhancementssubmittedto
CouncilontheLabellingStrategythatwas
approvedinQuarter3
Phase4:OCRsystemlivewithlabelling
componentincluded
Achieved None
Phasesofimplementation Guidelinesreviewscopeandplan
developed
All4phasesoftheclassificationguidelines
reviewplanimplemented
2phasesachieved:
Phase1:Discussionpaperdevelopedand
approved
Phase2:Publicconsultationsheldinall9
provinces
Notachieved Phase3:Draftingofrevisedguidelines
underway–secondroundofPublic
consultationsontherevisedclassification
guidelinestobedoneinQ1andQ2
Phase4:Approvalandgazetteofthe
revisedclassificationguidelines
Numberoffocusgroupsheld 6focusgroupdiscussionsconductedin6
provinces
4focusgroupstoassessimplementation
ofclassificationguidelinesconducted
15focusgroupsconvenedintheyear Achieved None
Phasesofimplementation FPBrevisedfeesandtariffswere
approvedbyCouncil
4phasesoftariffstructureimplemented 3phasesoftariffstructureimplemented:
Drafttariffstructuredeveloped
Notachieved Requestbyindustrytoextend
consultationperiodgranted,which
ledtodelaysintheapprovalofthetariffs
byCouncilandMinister
Noofreportscompiled ProcesseddraftBillinParliament 4reportsontheprogressmadein
theenactmentofFPAmendmentBill
compiled
3reportsgeneratedontheprogressofBill Notachieved 1reportoutstandingastherewasno
progressmadeontheBillinQ2
Numberofunregistereddistributors
identified
2848unregistereddistributorsidentified 2000unregistereddistributorsonphysical
platformsidentified
3789inspectionsconductedto
unregistereddistributors
Achieved Moreunregistereddistributorswere
identifiedwhileconductinginspections
thanwhatreflectedonFPBonlinesystem
Strategic Outcome 1 (continued)
ANNUAL REPORT 2017/18
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
Phasesofimplementation StrategysubmittedforCouncilapproval All4phasesofthedevelopmentofthe
labellingstrategyforphysicalfilmand
gamesimplemented
All4phasesofthedevelopmentofthe
labellingstrategyachieved:
Phase1:Consultationsconductedwith
DistributorsontheLabellingStrategyand
inputsobtained
Phase2:LabellingStrategydeveloped
andapproved
Phase3:Enhancementssubmittedto
CouncilontheLabellingStrategythatwas
approvedinQuarter3
Phase4:OCRsystemlivewithlabelling
componentincluded
Achieved None
Phasesofimplementation Guidelinesreviewscopeandplan
developed
All4phasesoftheclassificationguidelines
reviewplanimplemented
2phasesachieved:
Phase1:Discussionpaperdevelopedand
approved
Phase2:Publicconsultationsheldinall9
provinces
Notachieved Phase3:Draftingofrevisedguidelines
underway–secondroundofPublic
consultationsontherevisedclassification
guidelinestobedoneinQ1andQ2
Phase4:Approvalandgazetteofthe
revisedclassificationguidelines
Numberoffocusgroupsheld 6focusgroupdiscussionsconductedin6
provinces
4focusgroupstoassessimplementation
ofclassificationguidelinesconducted
15focusgroupsconvenedintheyear Achieved None
Phasesofimplementation FPBrevisedfeesandtariffswere
approvedbyCouncil
4phasesoftariffstructureimplemented 3phasesoftariffstructureimplemented:
Drafttariffstructuredeveloped
Notachieved Requestbyindustrytoextend
consultationperiodgranted,which
ledtodelaysintheapprovalofthetariffs
byCouncilandMinister
Noofreportscompiled ProcesseddraftBillinParliament 4reportsontheprogressmadein
theenactmentofFPAmendmentBill
compiled
3reportsgeneratedontheprogressofBill Notachieved 1reportoutstandingastherewasno
progressmadeontheBillinQ2
Numberofunregistereddistributors
identified
2848unregistereddistributorsidentified 2000unregistereddistributorsonphysical
platformsidentified
3789inspectionsconductedto
unregistereddistributors
Achieved Moreunregistereddistributorswere
identifiedwhileconductinginspections
thanwhatreflectedonFPBonlinesystem
FILM AND PUBLICATION BOARD
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
Numberofonlineinspectionsconducted Annualtotalsforfinancialyear2016/17
areasfollows:
Onlineinspections:1776
ISPinspections:1015
iTunesinspections:960
Socialnetworks:781
2500onlineinspectionsconductedto
checkcompliance
Totalof3886onlineinspections
conductedtocheckcompliance
Achieved Additionalonlinedistributorsregistered
withFPBandresultedinanincreaseinthe
numberofinspectionsconducted
Numberofraidsconducted 94raidshavebeenconducted 36raidswithlawenforcementtoenforce
compliancewiththeActconducted
93raidsconducted Achieved Improvedrelationswithlawenforcement
agencies,whichresultedinthem
supportingrequestsforraids
Numberofinspectionsconductedto
existingdistributors
6126distributorshavebeeninspected 7000targetedinspectionstoexisting
distributorsonphysicalplatforms
conducted
8118targetedinspectionstoexisting
distributorsonphysicalplatforms
conducted
Achieved Improvedplanningresultedinincreased
inspectionsconducted
%ofqueriesresolvedwithinset
turnaroundtimes
Implementationofcustomercare
standards.
Servicedeliveryandcustomercare
standards-reportonsurveyfindings
reviewandrecommendationsreport
compiled.
Implementthecallloggingsystemtotrack
andresolveatleast95%ofquerieswithin
thesetturnaroundtimes(Internally=2
workingdays;Externally=8workingdays)
99,25%queriesresolvedwithin
turnaroundtimes
Achieved TheNethelpdeskcallloggingsystemhas
improvedefficiency
Numberofrespondentstothesurveys 168surveysconducted
162online
6physical
250surveysadministeredtoassessthe
qualityofservicesrendered
290surveysadministeredandan
assessmentreportcompiled
Achieved Distributedsurveysonlineandmanuallyto
reachamaximumnumberofparticipants
%ofsettargetsachieved Decentraliseadministrationofdistributor
licenceapplicationstoDurbanregional
office
4reportsassessingtheeffectivenessof
theDurbanpilotcompiled
Effectivenessofthedecentralisation
project(Durban)assessed
Achieved None
Numberofdecisionsissuedwithin10
workingdays
Numberofregistrationsandrenewals
certificatesissuedwithin10workingdays
100%oflicencesissuedwithin10-day
turnaroundtimes
Atleast95%ofclassificationdecisions,
registrationsandrenewalslicencesissued
within8workingdays
89%ofclassificationdecisionsissued
within8days
84%ofregistration/renewalslicences
issuedwithin8days
Notachieved Delaysinapprovalofclassification
decisionsowingtoQAmechanismthatis
inplace
Strategic Outcome 1 (continued)
ANNUAL REPORT 2017/18
Performance Indicator Actual Achievement 2016/17
Planned Target2017/18
Actual Achievement2017/18
Deviation from Planned Target to Actual Achievement for 2017/18
Comments on Deviations
Numberofonlineinspectionsconducted Annualtotalsforfinancialyear2016/17
areasfollows:
Onlineinspections:1776
ISPinspections:1015
iTunesinspections:960
Socialnetworks:781
2500onlineinspectionsconductedto
checkcompliance
Totalof3886onlineinspections
conductedtocheckcompliance
Achieved Additionalonlinedistributorsregistered
withFPBandresultedinanincreaseinthe
numberofinspectionsconducted
Numberofraidsconducted 94raidshavebeenconducted 36raidswithlawenforcementtoenforce
compliancewiththeActconducted
93raidsconducted Achieved Improvedrelationswithlawenforcement
agencies,whichresultedinthem
supportingrequestsforraids
Numberofinspectionsconductedto
existingdistributors
6126distributorshavebeeninspected 7000targetedinspectionstoexisting
distributorsonphysicalplatforms
conducted
8118targetedinspectionstoexisting
distributorsonphysicalplatforms
conducted
Achieved Improvedplanningresultedinincreased
inspectionsconducted
%ofqueriesresolvedwithinset
turnaroundtimes
Implementationofcustomercare
standards.
Servicedeliveryandcustomercare
standards-reportonsurveyfindings
reviewandrecommendationsreport
compiled.
Implementthecallloggingsystemtotrack
andresolveatleast95%ofquerieswithin
thesetturnaroundtimes(Internally=2
workingdays;Externally=8workingdays)
99,25%queriesresolvedwithin
turnaroundtimes
Achieved TheNethelpdeskcallloggingsystemhas
improvedefficiency
Numberofrespondentstothesurveys 168surveysconducted
162online
6physical
250surveysadministeredtoassessthe
qualityofservicesrendered
290surveysadministeredandan
assessmentreportcompiled
Achieved Distributedsurveysonlineandmanuallyto
reachamaximumnumberofparticipants
%ofsettargetsachieved Decentraliseadministrationofdistributor
licenceapplicationstoDurbanregional
office
4reportsassessingtheeffectivenessof
theDurbanpilotcompiled
Effectivenessofthedecentralisation
project(Durban)assessed
Achieved None
Numberofdecisionsissuedwithin10
workingdays
Numberofregistrationsandrenewals
certificatesissuedwithin10workingdays
100%oflicencesissuedwithin10-day
turnaroundtimes
Atleast95%ofclassificationdecisions,
registrationsandrenewalslicencesissued
within8workingdays
89%ofclassificationdecisionsissued
within8days
84%ofregistration/renewalslicences
issuedwithin8days
Notachieved Delaysinapprovalofclassification
decisionsowingtoQAmechanismthatis
inplace
FILM AND PUBLICATION BOARD
Strategic Outcome 2
Informedconsumers,generalmembersofthepublicandindustryaboutthemandate,programmesandoperationsoftheFPB.
Performance Indicator Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Approvedmediaplan
Noofinterviews
Noofprintonlinearticles
3opinionpieces
4mediadialogueshosted
44televisioninterviewsconducted
70radiointerviewsconducted
884print&onlinearticles
Mediarelationsplanreviewedand
implemented:
4broadcastInterviewsconducted
16print/onlinearticlespublished
Mediarelationsplanimplemented:
287broadcastinterviewsconducted
1597print/onlinearticlespublished
Achieved Exceededtargetduetoaccessto
broadcastinterviews,print/onlinearticles
publishednationally.
Numberofmulti-unitactivitiesconducted
Numberofdigitalliteracycampaigns
32outreachactivitieswereconducted
4quarterlyoutreachandpubliceducation
Digitalliteracycampaignandoutreach
plandeveloped,approvedand
implemented
1digitalliteracycampaignimplemented
3multi-unitoutreachactivitiesconducted
Digitalliteracycampaignandoutreach
plandeveloped,approvedand
implemented
Digitalliteracycampaignconductedwith
SaferSchools
3multi-unitcampaignsconducted
Achieved None
NumberofM&Ereports
Numberofpeoplereached
M&Ereportscompiled M&Ereportsofalldigitalliteracyand
awarenesscampaignscompiled
4quarterlydigitalandoutreachM&E
reportcompiled
Achieved None
Numberofparents,learnersand
educatorsreached
1599reportshavebeenreceivedforthe
year
Rolloutcybersafetyandchildprotection
initiativesin6differentprovincestargeting
200parents,800learnersand400
educators
Rolloutcybersafetyandchildprotection
initiativeshavebeenconductedin8
provincesreaching19711learners,
1148parentsand728Educators.
Notachieved Targetoverachieved
Managementfailedtotabletheannual
evaluationreportforapprovalbyExco
Percentageincreaseinsocialmedia
engagements
Socialmedianumbersincreasedby
16.5%
4quarterlydigitalmediaM&Ereports
compiled
EngagementonFPB’sdigitalandsocial
mediaplatformsimprovedby20%
4digitalmediaM&Ereportscompiled
Facebookincreasedby20%
Twitterincreasedby354%
4digitalmediaM&Ereportscompiled
Achieved Postedfalsenewsarticleontwitter,which
ledtohugeincreaseinimpressions
Noofstaffworkshopsconvened 4staffworkshopsconvened 4staffworkshopsconvened 4quarterlystaffworkshopswere
convened
Achieved None
Noofinternalnewslettersissued 7internalnewslettersissued 8internalnewslettersissued 7internalnewslettersissued Notachieved Managementfailedtoexerciseoversightin
sendingnewslettersinternally
ANNUAL REPORT 2017/18
Strategic Outcome 2
Informedconsumers,generalmembersofthepublicandindustryaboutthemandate,programmesandoperationsoftheFPB.
Performance Indicator Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Approvedmediaplan
Noofinterviews
Noofprintonlinearticles
3opinionpieces
4mediadialogueshosted
44televisioninterviewsconducted
70radiointerviewsconducted
884print&onlinearticles
Mediarelationsplanreviewedand
implemented:
4broadcastInterviewsconducted
16print/onlinearticlespublished
Mediarelationsplanimplemented:
287broadcastinterviewsconducted
1597print/onlinearticlespublished
Achieved Exceededtargetduetoaccessto
broadcastinterviews,print/onlinearticles
publishednationally.
Numberofmulti-unitactivitiesconducted
Numberofdigitalliteracycampaigns
32outreachactivitieswereconducted
4quarterlyoutreachandpubliceducation
Digitalliteracycampaignandoutreach
plandeveloped,approvedand
implemented
1digitalliteracycampaignimplemented
3multi-unitoutreachactivitiesconducted
Digitalliteracycampaignandoutreach
plandeveloped,approvedand
implemented
Digitalliteracycampaignconductedwith
SaferSchools
3multi-unitcampaignsconducted
Achieved None
NumberofM&Ereports
Numberofpeoplereached
M&Ereportscompiled M&Ereportsofalldigitalliteracyand
awarenesscampaignscompiled
4quarterlydigitalandoutreachM&E
reportcompiled
Achieved None
Numberofparents,learnersand
educatorsreached
1599reportshavebeenreceivedforthe
year
Rolloutcybersafetyandchildprotection
initiativesin6differentprovincestargeting
200parents,800learnersand400
educators
Rolloutcybersafetyandchildprotection
initiativeshavebeenconductedin8
provincesreaching19711learners,
1148parentsand728Educators.
Notachieved Targetoverachieved
Managementfailedtotabletheannual
evaluationreportforapprovalbyExco
Percentageincreaseinsocialmedia
engagements
Socialmedianumbersincreasedby
16.5%
4quarterlydigitalmediaM&Ereports
compiled
EngagementonFPB’sdigitalandsocial
mediaplatformsimprovedby20%
4digitalmediaM&Ereportscompiled
Facebookincreasedby20%
Twitterincreasedby354%
4digitalmediaM&Ereportscompiled
Achieved Postedfalsenewsarticleontwitter,which
ledtohugeincreaseinimpressions
Noofstaffworkshopsconvened 4staffworkshopsconvened 4staffworkshopsconvened 4quarterlystaffworkshopswere
convened
Achieved None
Noofinternalnewslettersissued 7internalnewslettersissued 8internalnewslettersissued 7internalnewslettersissued Notachieved Managementfailedtoexerciseoversightin
sendingnewslettersinternally
FILM AND PUBLICATION BOARD
Strategic Outcome 3
Effective,efficientandsustainablemanagementofFPBoperations.
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
PhasesofImplementationofCouncil-
approvedstructure
Recruitmentinresponsetoturnover
developmentandimplementationof
Durbanpilotprogrammeforclassifiers
FPBStructurereview–reporttoExco
Review,approveandimplementall4
phasesoftheFPBorganizationalstructure
Phase1:Reviewofunitstaffing
requirements
Phase2:Submittedproposedstructure
toExco
Recruitmentinresponsetoturnover
trends
Notachieved Excodecisiontodeferimplementation
ofadditionalpoststotheODexercisein
2018/19
Numberofanalysisreportsdeveloped Remunerationanalysisconducted 4remunerationanalysisreportsdeveloped Four4remunerationanalysisreports
developed
Achieved None
Phasesofimplementationofchange
managementprogramme
Conclusionofcoachingagreementwith
FreshThinking.
Valuesanddiversityworkshopconducted
forstaff–23September2016.
culturaldiversityworkshopheldfor
classifiers.
Team-basedcoachingreportsubmittedto
HR/Remco.
Individualcoachingimplementedfor1
staffmember.
Meetingswithunitmanagers
All3phasesofFPBchangemanagement
programmeimplemented
Actionplanstoaddressissuesraisedin
staffsurvey
Valuesworkshopconvened
Achieved None
Numberoftraininganddevelopment
activitiesundertaken
WorkplaceSkillsplansuccessfully
submittedtoMICTSeta
4traininganddevelopmentactivities
undertaken
Developtalentmanagementstrategy
trainingsfacilitated
Educationalassistancepaidforindividuals
intermsofapprovedassistance
AnnualSkillsPlandeveloped
Achieved None
Numberofcoachingsessions Formulationanddraftofsuccessionplan.
ApprovalofsuccessionplanbyExco.
Implementationofactingarrangementsas
peractingallowancepolicy.
9coachingsessionsforsuccessor
candidatesconducted
3coachingsessionsforsuccessor
candidates
Notachieved Delaysincommencingprocurement
process
%Implementationofcostsavingplan Costsavingsinitiativesimplemented 50%ofthecostsavinginitiativesasper
theplanimplemented
56%ofthecost-savinginitiativesasper
planimplemented
Achieved Constantmanagementandmonitoring
ofdatausage,includingrecoveryofhigh
usage.
Subsistenceandtravelpolicyamendment
inrelationtoNationalTreasuryinstruction
noteoncostcontainmentmeasures.
Formalisationandimplementationoftheft
andlosscommittee,includingrecoveryon
negligentsituation
ANNUAL REPORT 2017/18
Strategic Outcome 3
Effective,efficientandsustainablemanagementofFPBoperations.
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
PhasesofImplementationofCouncil-
approvedstructure
Recruitmentinresponsetoturnover
developmentandimplementationof
Durbanpilotprogrammeforclassifiers
FPBStructurereview–reporttoExco
Review,approveandimplementall4
phasesoftheFPBorganizationalstructure
Phase1:Reviewofunitstaffing
requirements
Phase2:Submittedproposedstructure
toExco
Recruitmentinresponsetoturnover
trends
Notachieved Excodecisiontodeferimplementation
ofadditionalpoststotheODexercisein
2018/19
Numberofanalysisreportsdeveloped Remunerationanalysisconducted 4remunerationanalysisreportsdeveloped Four4remunerationanalysisreports
developed
Achieved None
Phasesofimplementationofchange
managementprogramme
Conclusionofcoachingagreementwith
FreshThinking.
Valuesanddiversityworkshopconducted
forstaff–23September2016.
culturaldiversityworkshopheldfor
classifiers.
Team-basedcoachingreportsubmittedto
HR/Remco.
Individualcoachingimplementedfor1
staffmember.
Meetingswithunitmanagers
All3phasesofFPBchangemanagement
programmeimplemented
Actionplanstoaddressissuesraisedin
staffsurvey
Valuesworkshopconvened
Achieved None
Numberoftraininganddevelopment
activitiesundertaken
WorkplaceSkillsplansuccessfully
submittedtoMICTSeta
4traininganddevelopmentactivities
undertaken
Developtalentmanagementstrategy
trainingsfacilitated
Educationalassistancepaidforindividuals
intermsofapprovedassistance
AnnualSkillsPlandeveloped
Achieved None
Numberofcoachingsessions Formulationanddraftofsuccessionplan.
ApprovalofsuccessionplanbyExco.
Implementationofactingarrangementsas
peractingallowancepolicy.
9coachingsessionsforsuccessor
candidatesconducted
3coachingsessionsforsuccessor
candidates
Notachieved Delaysincommencingprocurement
process
%Implementationofcostsavingplan Costsavingsinitiativesimplemented 50%ofthecostsavinginitiativesasper
theplanimplemented
56%ofthecost-savinginitiativesasper
planimplemented
Achieved Constantmanagementandmonitoring
ofdatausage,includingrecoveryofhigh
usage.
Subsistenceandtravelpolicyamendment
inrelationtoNationalTreasuryinstruction
noteoncostcontainmentmeasures.
Formalisationandimplementationoftheft
andlosscommittee,includingrecoveryon
negligentsituation
FILM AND PUBLICATION BOARD
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
%Changeinthenumberoftransactions
awarded
50%ofalltransactionsoverR100000.00
awardedtocompanieswithBBBEE
credentials
60%ofalltransactionsoverR100,000
areawardedtocompanieswithaBBBEE
contributionlevelof3orlower
Over67%ofalltransactionsover
R100,000areawardedtocompanieswith
aBBBEEcontributionlevelof3orlower
Achieved Accesstoblack-ownedcompaniesdueto
fullutilizationofCentralSupplierDatabase
Phasesofimplementation Officeexpansionplandevelopedasper
organisationalneeds
All4phasesoftheapprovedshort-term
officeexpansionstrategyimplemented
Phases2-4notachieved
Phase1:Developedspaceneedsanalysis
andsubmittedtoDPWtoinitiatedlong
termofficeprocurementforFPBHead
Office
Notachieved Lackofcapacitytodeliveronthetargetin
Q1-Q2
CorporateServicesSpecialistappointed
onlyinQ3tofacilitatetheofficeexpansion
process
Numberofreportssubmitted Timeoussubmissionofquarterlyfinancial
reporttoDOC
Submissionofall4financialreportsto
DoCasperthelegislateddeadline
All4financialreportssubmittedtoDOC Achieved None
Numberofreportscompiled N/A Internalauditplandevelopedand
approved
Fourquarterlyinternalauditreports
compiled
InternalAuditplandevelopedand
approvedbyARC
AllfourInternalAuditquarterlyreports
compiledandpresentedtotheARC
Achieved None
Numberofreportscompiled N/A 4riskmanagementimplementation
reportscompiled.
Allfourriskmanagementreportscompiled Achieved None
Numberofquarterlyreportssubmitted Quarterlyperformanceinformationreports
preparedandsubmittedtotheMinister,
DeputyMinisterandDirectorGeneralof
theDepartmentofCommunicationsasthe
DepartmentofNationalTreasury
4performanceinformationreports
compiledandsubmittedtotheExecutive
Authority
Allfourperformanceinformationreports
compiledandsubmittedtotheExecutive
Authority
Achieved None
StrategicPlan
AnnualPerformancePlan
ManagementdevelopmentofAPP
Councilreviewandapprovalofstrategy
andAPP
Submissionof3versionsofstrategyand
APPtoDoCandNT
StrategicPlan,5-yearplanandAnnual
PerformancePlantotheExecutive
Authoritydevelopedandsubmitted
Revised5-yearStrategicPlandeveloped
andsubmitted
Developed2018/19AnnualPerformance
Plan
BothsubmittedtotheExecutiveAuthority
Achieved None
%ofimplementation 100%compliancewithrequirementsof
corporategovernanceframework
100%implementationandcompliance
withtheAnnualCorporateGovernance
Framework
100%compliancewiththeAnnual
CorporateGovernanceFramework
Achieved None
Strategic Outcome 3 (continued)
ANNUAL REPORT 2017/18
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
%Changeinthenumberoftransactions
awarded
50%ofalltransactionsoverR100000.00
awardedtocompanieswithBBBEE
credentials
60%ofalltransactionsoverR100,000
areawardedtocompanieswithaBBBEE
contributionlevelof3orlower
Over67%ofalltransactionsover
R100,000areawardedtocompanieswith
aBBBEEcontributionlevelof3orlower
Achieved Accesstoblack-ownedcompaniesdueto
fullutilizationofCentralSupplierDatabase
Phasesofimplementation Officeexpansionplandevelopedasper
organisationalneeds
All4phasesoftheapprovedshort-term
officeexpansionstrategyimplemented
Phases2-4notachieved
Phase1:Developedspaceneedsanalysis
andsubmittedtoDPWtoinitiatedlong
termofficeprocurementforFPBHead
Office
Notachieved Lackofcapacitytodeliveronthetargetin
Q1-Q2
CorporateServicesSpecialistappointed
onlyinQ3tofacilitatetheofficeexpansion
process
Numberofreportssubmitted Timeoussubmissionofquarterlyfinancial
reporttoDOC
Submissionofall4financialreportsto
DoCasperthelegislateddeadline
All4financialreportssubmittedtoDOC Achieved None
Numberofreportscompiled N/A Internalauditplandevelopedand
approved
Fourquarterlyinternalauditreports
compiled
InternalAuditplandevelopedand
approvedbyARC
AllfourInternalAuditquarterlyreports
compiledandpresentedtotheARC
Achieved None
Numberofreportscompiled N/A 4riskmanagementimplementation
reportscompiled.
Allfourriskmanagementreportscompiled Achieved None
Numberofquarterlyreportssubmitted Quarterlyperformanceinformationreports
preparedandsubmittedtotheMinister,
DeputyMinisterandDirectorGeneralof
theDepartmentofCommunicationsasthe
DepartmentofNationalTreasury
4performanceinformationreports
compiledandsubmittedtotheExecutive
Authority
Allfourperformanceinformationreports
compiledandsubmittedtotheExecutive
Authority
Achieved None
StrategicPlan
AnnualPerformancePlan
ManagementdevelopmentofAPP
Councilreviewandapprovalofstrategy
andAPP
Submissionof3versionsofstrategyand
APPtoDoCandNT
StrategicPlan,5-yearplanandAnnual
PerformancePlantotheExecutive
Authoritydevelopedandsubmitted
Revised5-yearStrategicPlandeveloped
andsubmitted
Developed2018/19AnnualPerformance
Plan
BothsubmittedtotheExecutiveAuthority
Achieved None
%ofimplementation 100%compliancewithrequirementsof
corporategovernanceframework
100%implementationandcompliance
withtheAnnualCorporateGovernance
Framework
100%compliancewiththeAnnual
CorporateGovernanceFramework
Achieved None
FILM AND PUBLICATION BOARD
Strategic Outcome 4
Effectiveandinnovativeregulationofthecontentdistributedononline,mobileandrelatedplatformsfortheprotectionofchildren,youthandadultsthroughinformation.
Performance Indicator Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Phasesofimplementation OCRsystemdevelopedandisinpilot
phase
All4phasesoftheOCRsystem
implemented
All4phasesofOCRsystemimplemented:
Phase1:OCRsystemintroducedto
industrythroughprovincialdistributor
workshops
Phase2:OCRsystemdemonstratedto
FPBstaffatstaffworkshop
Phase3:Postimplementationreviewand
sign-offonOCRsystemdoneinQ3
Achieved None
%ofsystemavailability 98.8%systemavailabilityachieved Ensuresystemavailabilityat98% Achieved98%availabilityoncritical
systems
Achieved None
Numberofcasesattendedto 1599reportshavebeenreceivedforthe
year
100%ofchildsexualabusematerialcases
referredtoFPBrespondedtowithin10
workingdays
100%ofthe16caseswithatotalof116
960contentswerereportedtotheFPB
fromSAPSandanalysisofcontentwas
conducted
However,only44%(7outofthe16cases)
wererespondedtowithin10days
Notachieved None
LevelsofcompliancetoINHOPEaction
plan
Recreationalequipmenthasbeen
procured
Development,approvaland
implementationoftheINHOPEactionplan
INHOPEimplementationplandeveloped
andapproved
AttendedINHOPEAGMandICCAM
training
MoUwithWASPAsigned
Childprotectionandonlinemonitoring
teamrelocatedtoabiggerofficespace
Achieved None
ANNUAL REPORT 2017/18
Strategic Outcome 4
Effectiveandinnovativeregulationofthecontentdistributedononline,mobileandrelatedplatformsfortheprotectionofchildren,youthandadultsthroughinformation.
Performance Indicator Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Phasesofimplementation OCRsystemdevelopedandisinpilot
phase
All4phasesoftheOCRsystem
implemented
All4phasesofOCRsystemimplemented:
Phase1:OCRsystemintroducedto
industrythroughprovincialdistributor
workshops
Phase2:OCRsystemdemonstratedto
FPBstaffatstaffworkshop
Phase3:Postimplementationreviewand
sign-offonOCRsystemdoneinQ3
Achieved None
%ofsystemavailability 98.8%systemavailabilityachieved Ensuresystemavailabilityat98% Achieved98%availabilityoncritical
systems
Achieved None
Numberofcasesattendedto 1599reportshavebeenreceivedforthe
year
100%ofchildsexualabusematerialcases
referredtoFPBrespondedtowithin10
workingdays
100%ofthe16caseswithatotalof116
960contentswerereportedtotheFPB
fromSAPSandanalysisofcontentwas
conducted
However,only44%(7outofthe16cases)
wererespondedtowithin10days
Notachieved None
LevelsofcompliancetoINHOPEaction
plan
Recreationalequipmenthasbeen
procured
Development,approvaland
implementationoftheINHOPEactionplan
INHOPEimplementationplandeveloped
andapproved
AttendedINHOPEAGMandICCAM
training
MoUwithWASPAsigned
Childprotectionandonlinemonitoring
teamrelocatedtoabiggerofficespace
Achieved None
FILM AND PUBLICATION BOARD
Strategic Outcome 5
ExpansionoftheFPBfootprintandaqualitativeimpactmadethrougheffectivepartnershipsandstakeholderrelationshipsinpursuanceofourmandate.
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Numberofstrategicpartnershipsreviewed
andsecured
Stakeholderrelationsstrategyapproved
Africanengagementdocumentapproved
Stakeholdersurveysconducted
Approvedstakeholderrelationsplan
implemented
Approvedstakeholderrelations
implemented:
Stakeholderengagementsessionsat10
differentplatforms
Achieved None
NumberofsignedMoUs Partnerwithatleast2universitiesto
leverageresearchcapacityandassistwith
FPBknowledgecreation
Planofactioninmaintainingpartnerships
with2universitiestoleverageresearch
capacityandassistwithFPBknowledge
creationdeveloped
Planofactionnotdeveloped Notachieved Termsofreferencedevelopedtotestthe
market
Delaysinadvertisingforprospective
universitypartners
Numberoffilmandgamingfestivals
attended
Thefollowingfilmfestivalswereattended:
• EkurhuleniFilmFestival
• DurbanInternationalFilmFestival
• DISCOP
• JoburgFilmFestival
• FestivalofFame
Threefilmorgamingfestivalsattended&
participatedat
Attendedandparticipatedatfivefilmand
gamingfestivals
Achieved
Numberofstakeholdersengaged FPBattendedtheAfricaSocialImpact
SummithostedbyGoogleinKenya
FPBhostedtheKenyanFilmClassification
BoardstudytourinSouthAfrica
FPBembarkedonacontentregulation
informationsharingtriptoNamibia,where
itvisitedorganisationswithinthecontent
regulationfield
FPBembarkedonacontentregulation
informationsharingtriptoGhana,where
theyvisitedorganisationswithinthe
contentregulationfield
Twostakeholdersinthecontinent
engaged
4engagementsheldonthecontinent:
• FPBattendedtheSADCMinistersfor
ICTandCommunicationsmeetingin
KwaZulu-Natal
• FPBattendedthe
TelecommunicationsOrganisation’s
ICTforuminMozambique
• FPBattendedandpresentedatthe
KenyaFilmConvention
• FPBattendedtheAfricaInternet
AcademyhostedbyGoogleSAin
Mauritius
Achieved None
ANNUAL REPORT 2017/18
Strategic Outcome 5
ExpansionoftheFPBfootprintandaqualitativeimpactmadethrougheffectivepartnershipsandstakeholderrelationshipsinpursuanceofourmandate.
Performance Indicators Actual Achievement2016/2017
Planned Target2017/2018
Actual Achievement2017/2018
Deviation from Planned Target to Actual Achievement for 2017/2018
Comment on Deviations
Numberofstrategicpartnershipsreviewed
andsecured
Stakeholderrelationsstrategyapproved
Africanengagementdocumentapproved
Stakeholdersurveysconducted
Approvedstakeholderrelationsplan
implemented
Approvedstakeholderrelations
implemented:
Stakeholderengagementsessionsat10
differentplatforms
Achieved None
NumberofsignedMoUs Partnerwithatleast2universitiesto
leverageresearchcapacityandassistwith
FPBknowledgecreation
Planofactioninmaintainingpartnerships
with2universitiestoleverageresearch
capacityandassistwithFPBknowledge
creationdeveloped
Planofactionnotdeveloped Notachieved Termsofreferencedevelopedtotestthe
market
Delaysinadvertisingforprospective
universitypartners
Numberoffilmandgamingfestivals
attended
Thefollowingfilmfestivalswereattended:
• EkurhuleniFilmFestival
• DurbanInternationalFilmFestival
• DISCOP
• JoburgFilmFestival
• FestivalofFame
Threefilmorgamingfestivalsattended&
participatedat
Attendedandparticipatedatfivefilmand
gamingfestivals
Achieved
Numberofstakeholdersengaged FPBattendedtheAfricaSocialImpact
SummithostedbyGoogleinKenya
FPBhostedtheKenyanFilmClassification
BoardstudytourinSouthAfrica
FPBembarkedonacontentregulation
informationsharingtriptoNamibia,where
itvisitedorganisationswithinthecontent
regulationfield
FPBembarkedonacontentregulation
informationsharingtriptoGhana,where
theyvisitedorganisationswithinthe
contentregulationfield
Twostakeholdersinthecontinent
engaged
4engagementsheldonthecontinent:
• FPBattendedtheSADCMinistersfor
ICTandCommunicationsmeetingin
KwaZulu-Natal
• FPBattendedthe
TelecommunicationsOrganisation’s
ICTforuminMozambique
• FPBattendedandpresentedatthe
KenyaFilmConvention
• FPBattendedtheAfricaInternet
AcademyhostedbyGoogleSAin
Mauritius
Achieved None
FILM AND PUBLICATION BOARD
NOTES
ANNUAL REPORT 2017/18
NOTES
124 FILM AND PUBLICATION BOARD
125ANNUAL REPORT 2017/18
126 FILM AND PUBLICATION BOARD
HeadOffice:
420WitchHazelAvenueEcoGlades2EcoParkCenturion0157
Tel:0120031400Fax:0126610074
Website:www.fpb.org.za
RP391/2018ISBN:978-0-621-46816-8
FPBZA|@FPB_ZA|fpbza