NATIONAL FILM AND VIDEO FOUNDATION (NFVF)

ANNUAL PERFORMANCE PLAN

2016/17

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Foreword 1.1 Foreword by Chairperson of the Council – M Ramagoshi: It is with great pleasure that I present the 2016/17 Annual Performance Plan to our stakeholders, summarising the National Film and Video Foundation (NFVF) strategy and focus areas over the next year. The NFVF continues to successfully deliver on its mandate by addressing the imbalances of the past. With collaborations formed with our key stakeholders, we will continue to create opportunities for all filmmakers, particularly the youth and women filmmakers from disadvantaged communities. We will also continue to globally position our film industry, and improve on our policies through research conducted on a regular basis. Our research programmes enables the NFVF to formulate strategies that assist us in delivering on our mandate and in addressing industry challenges and needs. The issue of transformation of the industry remains a concern in our industry. It is on this basis that the NFVF conducted a Transformation Study to support the ongoing development of a South African Film Criteria and to establish the depth of Black talent across the creative and technical skills pool. Findings from the study confirmed a number of challenges being experienced by the film industry in South Africa. Some of the key findings noted that:

• Government policies have influenced the development of the SA film industry, i.e. policies crafted had a positive impact by directing transformation in the film industry.

• Companies that have embarked on transformation initiatives noted that they are unable to achieve actual transformation and insisted that support from the Government is crucial to enhance genuine transformation in the industry.

• Strides have been made to provide opportunities to people who were disadvantaged especially women. However, there is still more to be done in order to ensure women are able to compete fairly as the industry is still male dominated at all levels.

• The industry is still perceived to be white male dominant and it was not easy for the previously disadvantaged groups to compete with them because of the experience and resources that they have.

In the financial year 2016/17, we will continue to play a leading role in the growth of our industry, addressing the needs from the stakeholders and broader film community. The NFVF has committed to enabling the industry, doing so through production and development, policy and research, funding and governance. I would like to assure the industry that we will continue to implement our strategic priorities with integrity, working towards improving the quality of life of ordinary South Africans. Mmabatho Ramagoshi Chairperson

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CONTENTS Part A: Strategic overview 1 Situational analysis 1.1 Performance delivery environment 1.2 Organisational environment 2 Revisions to legislative and other mandates 3 Overview of 2016/17 budget and MTEF estimates Part B: Programme 4 Programmes 4.1 Strategic objective annual targets for 2017 - 2019 4.2 Programme performance indicators and annual targets for 2017 - 2019 4.3 Quarterly targets for 2016/17 Part C: Links to other plans 5 Links to the long-term infrastructure and other capital plans 6 Conditional grants 7 Public entities 8 Public-private partnerships Part D: 9 Vision 10 Mission 11 Strategic outcome oriented goals Annexures: A: Organisational Structure B: Materiality Framework C: Risk Management Plan D: Audit Plan E: Technical Descriptions F: Statement of Financial Position and Performance

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Part A: Strategic overview 1. Situational Analysis In the service delivery environment intergovernmental relations have improved that has seen a better participation of all the different governmental funding partners and/or broadcasters. The first films created under the Female Filmmaker Project have been screened by SABC 1 to a wider audience reception. The NFVF has moved into the second year of the Youth Filmmaker and the Female Filmmaker Projects, thus creating more viable products ready for broadcast. The NFVF has continued the successful partnership with the MICT-Seta which placed 50 interns successfully and awarded 55 additional bursaries for film related studies. The NFVF has strenghthend its partnership with the KZN Film Commission on its SEDIBA Scriptwriting programme and Youth Filmmaker Project. Programme performance environment Skills Development and Training The film industry is one of the key sectors that can provide job creation and economic growth, given the labour-intensive nature of film production. However, to ensure a sustainable industry that contributes to the national economy, an increase in the number and diversity of individuals trained and mentored is vital to ensure the sustained long-term growth in the number of South African films. The major skills gaps as identified by the NFVF continue to hinder the industry from sourcing adequate and alternative financing resources and/or models to produce films that could perform locally and internationally while providing audiences with engaging and entertaining content. These gaps are dominant in screenwriting, directing and executive producing particularly in the PDI communities. The NFVF continues to commit itself to comply with the national policy of skills development and ensure that the industry benefits from resources available to up-skill itself and build sustainable PDI production companies that can contribute to the eradication of unemployment and under-employment in the sector. The NFVF is also committed to continue its partnerships with a variety of organisations to ensure that industry development is achieved. Particular emphasis is placed on grooming young people to enter into the industry and for those who are already forming a career in film, to secure their longevity in the industry by gaining crucial experience and ongoing upskilling. Production and Development of content Production and Development of Content is at the core of the work the NFVF engages in. It is where the mandate of the organisation is most clearly fulfilled by providing the film industry with critical financial support and technical expertise to take a film project from an idea to a product that can be screened. While the quantity of films produced locally is a decisive factor in the growth and sustainability of the film industry, the quality of films is also important in order to ensure widespread distribution to a loyal market. Feature films, documentaries, short films and television concepts are all considered for development and production funding. Financial support also allows for diversity in the film industry so that PDI filmmakers who would typically be unable to raise financing for their projects are not side-lined. The NFVF therefore is able to focus on breaking down barriers to entry to create a more equitable industry.

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The NFVF will continue to increase the number of projects it supports in development to allow for a better ratio between development and production which remains too low. The ideal number would be 10 scripts developed for every one film produced. This would ensure that only the best projects come to fruition. This increase is an important step in the right direction The NFVF has adopted a 3 tier approach to the financing of both development and production. Tier 1 targets experienced filmmakers who have a track record for developing and producing films. Tier 2 targets filmmakers with limited experience in the industry, but who have developed and produced television fiction, documentaries and commercials seeking to venture into feature film development and production. Tier 3 targets new entrants into the industry, particularly recent film school graduates from historically disadvantaged backgrounds. This intervention will enable first time filmmakers to have a “calling card” into the industry. By securing funding partnerships with other government departments and entities the NFVF will leverage its position with regard to projects budgeted between R5m – R7m and ensure that such projects secure as much of the upfront funding as possible. Research and Policy Development Research projects undertaken and subsequent policy interventions are critical to ensure that the film industry contributes to government imperatives such as job creation and enterprise development. The concomitant creation of a business and regulatory environment that enables sufficient production activity levels and regular employment is critical. The Policy and Research Programme is tasked with providing the NFVF with comprehensive and accurate information by conducting research on the film and video industry in order to make policy recommendations to the NFVF Council. Research conducted also provides critical information and key performance indicators for the South African film industry. Marketing and Distribution

Central to the successful growth of the South African film and television industry is the increase in demand and growth of local audiences through increasing loyalty for the South African film brand and creating new markets for SA film content. The strategic objectives of marketing and distribution include:

• Increases awareness of the SA film industry • Develop and maintain positive stakeholders relations • Increased awareness of NFVF programmes for the film industry • Increased access of SA film content to local audiences • Promote and position SA film industry opportunities locally and globally

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1.1 Performance delivery environment There have not been any significant changes in the performance environment of the organisation 1.2 Organisational environment There are no significant changes relative to the information presented in the Strategic Plan. 2. Revisions to legislative and other mandates There have been no significant changes to the National Film and Video Foundation’s legislative and other mandates.

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3. Overview of the 2016/17 budget and MTEF estimates Programmes:

Strategic Objective

Audited/Actual performance

R’000

Estimated performance

R’000

Medium-term targets

R’000 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Training and Development

10 426 19 197 15 832 13 828 11 800 12 100 13 000

Policy & Research

1 384 3 760 3 440 2 600 3 800 4 000 4 300

Dev and Production of Content

27 084 38 674 80 987 42 956 43 850 45 300 49 000

Marketing and Communications

32 435 33 066 53 778 29 000 31 750 33 900 35 200

Administration 23 525 28 488 31 302 30 017 35 307 37 352 38 895 Total 94 854 123 185 185 339 118 401 126 507 132 652 140 395 Transfers, subsidies and current payments:

Strategic Objective

Audited/Actual performance

R’000

Estimated performance

R’000

Medium-term targets

R’000 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Households 71 329 94 697 154 037 88 384 91 200 95 300 101 500 Current Payments

23 525 28 488 31 302 30 017 35 307 37 352 38 895

Total 94 854 123 185 185 339 118 401 126 507 132 652 140 395

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Current payments:

Strategic Objective

Audited/Actual performance

R’000

Estimated performance

R’000

Medium-term targets

R’000 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Comp - employees

13 002 16 191 18 498 19 850 23 042 24 377 25 381

Advertising 292 307 269 300 300 318 337 Communications 357 313 479 480 504 534 556 Computer services

146 384 314 120 270 286 298

Consultants 843 596 1 313 870 970 1 028 1 077 Travel & Acc 584 916 515 410 450 477 496 Printing & publication

458 584 543 462 540 572 600

Other operating costs:

7 843 9 197 9 371 7 525 9 231 9 760 10 150

Total 23 525 28 488 31 302 30 017 35 307 37 352 38 895 Acquisition of capital assets

Strategic Objective

Audited/Actual performance

R’000

Estimated performance

R’000

Medium-term targets

R’000 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Computer Hardware 295 262 2 541 600 800 800 800 Intangible Assets 194 1 537 1 604 300 800 500 500 Office Equipment 60 0 22 200 200 200 200 Furniture & Fittings 161 129 43 500 500 600 600 Total 710 1 928 4 210 1 600 2 300 2 100 2 100 9

PART B: Programmes 4. Programmes 4.1 Annual targets for 2017 – 2019

Strategic Objective

Audited/Actual performance

R’000

Estimated performance

R’000

Medium-term targets

R’000 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Training and Development

10 426 19 197 15 832 13 828 11 800 12 100 13 000

Policy & Research

1 384 3 760 3 440 2 600 3 800 4 000 4 300

Dev and Production of Content

27 084 38 674 80 987 42 956 43 850 45 300 49 000

Marketing and Communications

32 435 33 066 53 778 29 000 31 750 33 900 35 200

Administration 23 525 28 488 31 302 30 017 35 307 37 352 38 895 Total 94 854 123 185 185 339 118 401 126 507 132 652 140 395 4.2 Programme performance indicators for 2016 – 2018

Strategic Objective

Audited/Actual performance Estimated performance

Medium-term targets

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Number of bursaries provided

59 116 116 60 64 66 68

Number of local content scripts developed

45 42 39 30 66 68 70

Number of local content films produced

48 33 27 25 38 40 42

Number of policies produced

2 4 3 3 3 3 3

Number of films festivals hosted and participated in per year.

15 14 11 16 18 19 21

Total 169 209 196 134 189 196 204

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4.3 Quarterly targets for 2016/17 ANNUAL MEASURABLE OBJECTIVE for 2015/16

INDICATOR(S) ANNUAL

TARGET(S) ( 2016-2017)

QUARTERLY TARGET

BUGDET REQUIRED REPORTING:

QUARTERLY 1ST

2ND

3RD

4TH

PUBLIC ENGAGEMENT Public Understanding of Arts and Culture Human Capital Development Promotional Events

Internship Programme Skills Development Audience Development for SA Films and Content

Place 20 interns per annum 64 bursaries p.a 3 Training initiatives funded p.a 2 Sediba Programmes p.a 3 Mentorship programmes p.a 1 Schools programme p.a 7 Festival Grants awarded to National Festivals p.a

20 4

N/A - 1

N/A 3

N/A

N/A 1 1 2

N/A 2

N/A

60 1 -

N/A

N/A 1

N/A

N/A 1 1

N/A 1 1

R2.5 R4,5M R1M R2.6M R700 000 R500 000 R5 M

HEAD: PROD & DEV

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ANNUAL MEASURABLE OBJECTIVE for 2015/16

INDICATOR(S) ANNUAL

TARGET(S) ( 2016-2017)

QUARTERLY TARGET

BUGDET REQUIRED REPORTING:

QUARTERLY 1ST

2ND

3RD

4TH

Local activations and promotional events International activations and promotional events Brand Positioning SA Film and TV Industry Awards Stakeholder Relations management

7 Festival Activations p.a Fund 50 Filmmakers p.a to attend Markets and Film Festivals 1 DAC Activation Attend and activate at 7 International Festivals Attend 3 New Markets for SA Film Content 4 Brand activations SA Film and TV Awards (SAFTAs) Quarterly engagement fora with stakeholders

1

15

1 5

1

1

N/A

1

2

15

N/A 1

- 1

N/A 1

3

15

N/A -

1 1

N/A

1

1 5

N/A 1

1

1

1 1

R4.65M R1,8 M R300,000 R4,6M R1M R4.5M R5M R900 000

HEAD: MARKETING & COMMUNICATIONS

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ANNUAL MEASURABLE OBJECTIVE for 2015/16

INDICATOR(S) ANNUAL

TARGET(S) ( 2016-2017)

QUARTERLY TARGET

BUGDET REQUIRED REPORTING:

QUARTERLY 1ST

2ND

3RD

4TH

Implement a communications campaign

Quarterly Communications

1

1

1

1

R1M

BUSINESS DEVELOPMENT Production & Development

An increase in the volume of South African films produced in particularly by PDI’s

66 projects funded in development p.a 38 projects funded in production p.a 1 Women filmmaker slate funded annually 1 First time / Youth filmmaker slate funded annually 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a

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13

N/A

N/A

N/A

N/A

N/A

22

13

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

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12 1 1 1 1 1

R10,4M R17,45M R5M R5M R2M R2,5M

R1,5M

HEAD: PROD & DEV

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ANNUAL MEASURABLE OBJECTIVE for 2015/16

INDICATOR(S) ANNUAL

TARGET(S) ( 2016-2017)

QUARTERLY TARGET

BUGDET REQUIRED REPORTING:

QUARTERLY 1ST

2ND

3RD

4TH

Distribution Policy and Research

Assist to sell and distribute local films Industry research conducted and published Policies approved Certification of National Films

1 Digital Platform for SA film industry implemented 10 Marketing and Distribution grants awarded p.a 4 Research Publications per annum 3 policies approved by Council p.a Certify 90% of applications received annually 3 Co-production activations p.a

N/A

N/A

N/A

N/A

90% 1

N/A

3 1

N/A

90% 1

N/A

3

1

N/A

90%

N/A

1 4 2 3

90% 1

R1 MIL R2M 2.8M R500 000 R500 000

HEAD: MARKETING & COMMUNICATIONS HEAD: POLICY & RESEARCH

ADMINISTRATION Entity Management

Quarterly reporting to Council, DAC and Treasury

Quarterly Reports

1

1

1

1

R11.2M

CFO

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ANNUAL MEASURABLE OBJECTIVE for 2015/16

INDICATOR(S) ANNUAL

TARGET(S) ( 2016-2017)

QUARTERLY TARGET

BUGDET REQUIRED REPORTING:

QUARTERLY 1ST

2ND

3RD

4TH

Finance Administration Risk Management Internal Audit Corporate Services

Unqualified audit report Risk register Internal Audit function Performance Management Human Resources Development Labour and Compliance Payroll

Monthly Management Accounts Conduct an annual risk assessment workshop 4 internal audits per annum Implement PMS 6 staff are trained p.a Compliance with legislation Implement approved structure

3 (Apr – June) Management accounts N/A N/A Sign all performance contracts N/A Conduct workshop Implement approved salaries

3 (July – Sept) Management accounts N/A 1 Performance reviews Completed 1 N/A Approved salary reconciliations

3 (Oct – Dec) Management accounts N/A 2 N/A 2 Conduct workshop Approved salary reconciliations

3 (Jan – Mar) Management accounts 1 Risk Register 1 All Final assessments completed 3 Review of policies Approved salary reconciliation

R24.1M

HEAD: HR

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Part C: Links to Other Plans 5. Links to the long-term infrastructure and other capital plans Not applicable 6. Conditional Grants Not applicable – Applies to departments only 7. Public entities Not applicable – Applies to departments only 8. Public-private partnerships Not applicable – Applies to departments only 16

Annexure 1 Measurable objectives for 2017-2019

Indicator(s) Base year target MTEF TARGET 2017- 2019

Target

2015/16 2016/17 2017/18 2018/19

PUBLIC ENGAGEMENT: Public Understanding of Arts and Culture Human Capital Development Promotional Events

Internship Programme Skills Development Audience Development for SA Films and Content Local activations and promotional events

Place 20 interns in the film industry p.a Award 60 bursaries p.a 3 Training initiatives funded p.a 4 Sediba Programmes p.a 3 Mentorship Programmes p.a N/A 5 Festival Grants awarded to National Festivals 5 Festival Activations p.a.

Place 20 interns in the film industry p.a Award 64 bursaries p.a 3 Training initiatives funded p.a 2 Sediba Programmes p.a 3 Mentorship Programmes p.a 1 Schools Programme p.a 7 Festival Grants awarded to National Festivals 7 Festival Activations p.a.

Place 20 interns in the film industry Award 64 bursaries p.a 3 Training initiatives funded p.a 2 Sediba Programmes p.a 3 Mentorship Programmes p.a 1 Schools Programme p.a 7 Festival Grants awarded to National Festivals 7 Festival Activations p.a.

Place 25 interns in the film industry Award 66 bursaries p.a 3 Training initiatives funded p.a 3 Sediba Programmes p.a 3 Mentorship Programmes p.a ` 1 Schools Programme p.a 7 Festival Grants awarded to National Festivals 7 Festival Activations p.a.

Place 30 interns in the film industry Award 68 bursaries p.a 3 Training initiatives funded p.a 3 Sediba Programmes p.a 3 Mentorship Programmes p.a 1 Schools Programme p.a 9 Festival Grants awarded to National Festivals 8 Festival Activations p.a.

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Measurable objectives for 2017-2019

Indicator(s) Base year target MTEF TARGET 2017- 2019

Target

2015/16 2016/17 2017/18 2018/19

International activations and promotional events Brand Positioning SA Film and TV Industry Awards Stakeholder Relations management Implement a communicationcampaign

Fund 48 filmmakers p.a to attend film festivals 1 DAC Activation Attend 6 International festivals p.a Attend 3 New Markets for SA content p.a Implement Integrated Marketing Campaign Film Industry Awards Quarterly stakeholder engagement fora Quarterly Communications

Fund 50 Filmmakers to attend Markets and Film Festivals 1 DAC Activation Attend and activate at 7 International Festivals Attend 3 New Markets for SA Film Content 4 Brand campaigns p.a. SA Film and TV Awards (SAFTAs) Quarterly stakeholder engagement fora Quarterly Communications

Fund 50 Filmmakers to attend Markets and Film Festivals 1 DAC Activation Attend and activate at 7 International Festivals Attend 3 New Markets for SA Film Content 4 Brand campaigns p.a. SA Film and TV Awards (SAFTAs) Quarterly stakeholder engagement fora Quarterly Communications

Fund 52 Filmmakers to attend Markets and Film Festivals 1 DAC Activation Attend and activate at 8 International Festivals Attend 3 New Markets for SA Film Content 4 Brand campaigns p.a. SA Film and TV Awards (SAFTAs) Quarterly stakeholder engagement fora Quarterly Communications

Fund 55 Filmmakers to attend Markets and Film Festivals 1 DAC Activation Attend and activate at 9 International Festivals Attend 3 New Markets for SA Film Content 4 Brand campaigns p.a. SA Film and TV Awards (SAFTAs) Quarterly stakeholder engagement fora Quarterly Communications

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Measurable objectives for 2017-2019

Indicator(s) Base year target MTEF TARGET 2017- 2019

Target

2015/16 2016/17 2017/18 2018/19

BUSINESS DEVELOPMENT Production & Development Distribution

An increase in the volume of South African films produced in particularly by PDI’s Assist to sell and distribute local films

30 projects funded in development p.a 25 projects funded in production p.a 10 Women filmmaker films funded p.a 10 First time / Youth filmmakers funded p.a 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a 1 Digital Platform for SA Content 10 Direct to DVD/VOD /TV or other movies to be

66 projects funded in development p.a 38 projects funded in production p.a 1 Women filmmaker slate funded p.a 1 First time / Youth slate funded p.a 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a 1 Digital Platform for SA film industry implemented 10 Marketing and Distribution grants awarded p.a.

66 projects funded in development p.a 38 projects funded in production p.a 1 Women filmmaker slate funded p.a 1 First time / Youth slate funded p.a 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a

1 Digital Platform for SA film industry implemented

10 Marketing and Distribution grants awarded p.a.

68 projects funded in development p.a 40 projects funded in production p.a 1 Women filmmaker slate funded p.a 1 First time / Youth slate funded p.a 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a Maintain Digital Platform for SA film industry 12 Marketing and Distribution grants awarded p.a.

70 projects funded in development p.a 42 projects funded in production p.a 1 Women filmmaker slate funded p.a 1 First time / Youth slate funded p.a 1 fiction slate funded p.a 1 animation slate funded p.a 1 documentary slate funded p.a Maintain Digital Platform for SA film industry 15 Marketing and Distribution grants awarded p.a.

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Measurable objectives for 2017-2019

Indicator(s) Base year target MTEF TARGET 2017- 2019

Target

2015/16 2016/17 2017/18 2018/19

Policy and Research Provide Reliable & Accurate industry information Development & monitoring of policies Certification of National Films

Industry research conducted and published Policies approved No of films certified as National Films

funded p.a 2 Research Publications per annum Annual approval of 3 policies. Certify 90% of qualifying films depending on applications received

4 Research Publications per annum Annual approval of 3 policies. Certify 90% of qualifying films depending on applications received

4 Research Publications per annum Annual approval of 3 policies.

Certify 90% of qualifying films depending on applications

received

4 Research Publications per annum Annual approval of 3 policies. Certify 90% of qualifying films depending on applications received

4 Research Publications per annum Annual approval of 3 policies. Certify 90% of qualifying films depending on applications received

ADMINISTRATION Entity Management Finance Administration Risk Management

Quarterly reporting to Council, DAC and Treasury Unqualified audit report

Reporting quarterly, biannually and annually Unqualified audit report

Quarterly Reports Monthly Management Accounts

Quarterly Reports Monthly Management Accounts

Quarterly Reports Monthly Management Accounts

Quarterly Reports Monthly Management Accounts

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Measurable objectives for 2017-2019

Indicator(s) Base year target MTEF TARGET 2017- 2019

Target

2015/16 2016/17 2017/18 2018/19

Internal Audit Corporate Services

Risk register Internal Audit function Performance Management Human Resources Development Labour and Compliance

Conduct an annual risk assessment workshop 2 internal audits

per annum

Implementation of the Performance Management System

Staff attend training annually as per Workplace Skills Plan (WSP) and Personal Development Plan (PDP) Compliance with legislation

Conduct an annual risk assessment workshop 4 internal audits per annum Implementation of the Performance Management System Staff attend training annually as per Workplace Skills Plan (WSP) and Personal Development Plan (PDP) Compliance with legislation

Conduct an annual risk assessment workshop 4 internal audits per annum Review, monitoring & implementation Staff attend training annually as per WSP and PDP Compliance with legislation

Conduct an annual risk assessment workshop 4 internal audits per annum Review, monitoring & implementation Staff attend training annually as per WSP and PDP Compliance with legislation

Conduct an annual risk assessment workshop 4 internal audits per annum Review, monitoring & implementation Staff attend training annually as per WSP and PDP Compliance with legislation

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Part D 9 VISION To be a leader towards a sustainable and diverse audio-visual industry 10 MISSION To provide developmental support and guidance throughout the audio-visual value chain by collaborating with all stakeholders towards a thriving South African audio-visual industry. 11 STRATEGIC OUTCOME ORIENTED GOALS OF THE INSTITUTION Strategic Outcome Oriented Goal 1 Increase number of SA films and PDI’s producing them Goal Statement Increase volume of films produced. Empower entrepreneurs from PDI communities to access and

participate in the film industry. Strategic Outcome Oriented Goal 2 Increase number of people trained in the industry, particularly in areas of scarce skills Goal Statement Encourage formal training by awarding 64 bursaries annually. Address skills gap and incubation

programmes and focus on 3 areas of development to upskill the industry over the next 3 years. Encourage sustainable black business. Encourage skills transfer to PDI’s.

Strategic Outcome Oriented Goal 3 Promote the SA film industry locally and internationally Goal Statement Increased awareness of NFVF programmes by the film industry. Strategic Outcome Oriented Goal 4 Increase audience access to SA film Goal Statement Create access and open new markets for SA film content. Strategic Outcome Oriented Goal 5 Policy & Research Goal Statement Development of appropriate policies and Key Performance Indicators (KPIs) for the Film Industry Strategic Outcome Oriented Goal 6 Entity Administration Goal Statement To fulfil statutory and governance obligations of NFVF as set out in relevant legislation

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NFVF ORGANISATIONAL STRUCTURE

CEO

PA to CEO

Head: Production

and Development

PA to Heads

Head: Marketing &

Communications

Head: Policy &

Research

Head: Corporate

Services

PA to

Heads

CFO

Council

Administrator

Production &

Development

Manager:

Fiction

Production &

Development

Coordinator:

Fiction

Production &

Development

Manager:

Documentaries

Production &

Development

Coordinator:

Marketing

Coordinator

Events

Coordinator

Manager:

Film

Certification

Policy &

Legal Officer

Economic

Analyst

Researcher

Research

Coordinator

HR Manager

Training

Coordinator

Training

Manager

General

Office

Assistant

Receptionist

Finance

Manager

Finance

Officer

IT Manager

IT Support

Technician

Supply Chain

Officer

Marketing &

Communications

Manager

Applications

Officer

Applications

Coordinator

Distribution

Manager:

Communications

Coordinator

Stakeholder

Relations Manager

Manager:

Monitoring &

Evaluation

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ANNEXURE A

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ANNEXURE B MATERIALITY AND SIGNIFICANCE FRAMEWORK: 2016/17 – 2018/19

1. Definitions and standards

Audited financial statements: 2014/2015 (AFS) Approved annual budget: 2016/17 – 2018/19 Approved strategic and annual performance plan: 2016/2017 to 2018/2019(APP) Event: An activity that has the elements of income and expenditure Trading venture: An activity that has the elements of buying and selling of products and/or services Total income: Total income excluding the income from events and trading ventures Total expenditure: Total expenditure excluding event and trading venture expenditure

2. Applicable sections of the PFMA

Section 50(1) Section 55(2) Section 54(2) Section 66(1)

3. Treasury regulation

28.1.5

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4. Framework

4.1 Section 50: Fiduciary duties of Accounting Authority

Value(Quantitative) Nature of event(Qualitative)

(1) Accounting authority must- (c) on request, disclose to the Executive Authority responsible, all material facts which in any way may influence the decisions or actions of the Executive Authority

(a)Any unbudgeted transaction of which the amount exceeds 1% of the total value of assets per AFS (b)Any budgeted event where income is a legitimate expectation(eg theatrical production) where the actual income is less than 5% of the total expenditure (c)Any trading venture where income is exceeded by expenditure by more than 5.% of income (d)Total actual income is less than budgeted income by more than 5% of budgeted income (e)Total actual expenditure is more than budgeted expenditure by more than 15% of budgeted expenditure

(a)Any unplanned event that affects the core purpose or mandate of entity per the APP (b)Any activity that is outside the parameters of each public entity’s enabling legislation Any unplanned event per the APP that may affect the core purpose or mandate of the entity

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4.2 Section 54:Information to be submitted by the Accounting Authority

Value(Quantitative) Nature of event(Qualitative)

(2) before a public entity concludes any of the following transactions, the Accounting Authority for the entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its Executive Authority for approval of the transaction:

(b) participation in a significant partnership, trust, unincorporated joint venture or similar arrangement (c) acquisition of disposal of a significant shareholding in a company (d) acquisition or disposal of a significant asset (e) commencement or cessation of a significant business activity

N/a Any transaction of which the amount exceeds10% of the total value of assets per AFS Any transaction of which the amount exceeds10% of the total value of assets per AFS Any transaction of which the amount exceeds20% of the total value of assets per AFS

Any unplanned event per the APP that may affect the core purpose or mandate of the entity Any unplanned event per the APP that may affect the core purpose or mandate of the entity Any unplanned event per the APP that may affect the core purpose or mandate of the entity

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4.3 Section 55: Annual Report and Annual Financial Statements

Value(Quantitative) Nature of event(Qualitative)

(2) the annual report and financial statements must:

(b) include particulars of: (i) any material losses through criminal conduct and, any irregular expenditure and fruitless and wasteful expenditure that occurred during the year (iii) any losses recovered or written off

(a)Any loss of which the amount exceeds1% of the total value of assets per AFS (b) Any loss of a National Estate as defined in section 3 of the National Heritage Resources Act , 1999(Act no 25 of 1999) All All

Any unplanned loss per the APP that may affect the core purpose or mandate of the entity All All

4.4 Section 66: Restrictions on borrowing, guarantees and other commitments

Not applicable Not applicable

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ANNEXURE C RISK MANAGEMENT PLAN Risk management is an ongoing strategic and operational discipline at the NFVF. The NFVF conducts an annual formalised, participative risk assessment to assess key risks related to the NFVF’s ability to achieve its strategic and business plan objectives. The risk assessment process involves the executive management team of the NFVF, the internal auditors and the Audit Committee. Each risk was rated and action plans and responsible individuals were assigned to ensure that the risks are addressed and thus minimized. Timeframes were also stated for each action plan. All levels of staff in the organization, including the internal auditors and the Audit Committee are encouraged to continuously identify risks in the organization and to bring this to the attention of relevant managers so that can be discussed at the Executive Management meetings, held on a monthly basis. The internal audit plans are also aligned to the risks that have been identified and cognizance taken of the effectiveness of the internal control environment. The risk register is monitored on a quarterly basis and progress is tabled at the Management Committee meetings. Specific controls and action plans are in place to mitigate and manage the identified risks going forward. In addition to the risks detailed in this section, the plan also responds to specific risks identified during routine internal audit reviews. The strategic risks facing the NFVF, as identified in the 2015 assessment, are detailed in the table below.

29

COMPLETE STRATEGIC RISK REGISTER

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

1

Sta

kehold

er

Matt

ers

Lin

ked t

o m

ultip

le/

all

stra

tegic

obje

ctiv

es

Failu

re t

o m

eet

share

hold

er

and k

ey s

takehold

er

expect

ations

#Political risk #Loss of stakeholder support and confidence

#Legislative framework

Cata

stro

phic

5

Alm

ost

Cert

ain

5 25

Adequate

80% 5

#Monitoring

pending changes in legislation.

#Contributing to the changes in

current legislation.

Council and CEO

Ongoing

# Change in political directives

#Diminished relevance of the NFVF

# Monitoring of legislative environment and industry trends

#Inadequate funding #Strategic plan

# Inability to attract and retain appropriate skills within the NFVF

# Structured periodic reporting to DAC and Council

# Inadequate infrastructure, investment and maintenance

#Communication & Engagement with stakeholders

#non-compliance with mandate

#Communication with DAC, Portfolio Committee and other relevant departments

# Poor corporate governance

#Funding criteria

# inadequate service delivery

#Publication & distribution of the annual report

# Non-compliance with legislation

#Structured stakeholder engagement forums

#Inadequate engagement with the film industry and the public

#Shareholder Compact

30

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

#Poor engagement with Shareholder

#Stakeholder engagement strategy

2

Serv

ice D

eliv

ery

Lin

ked t

o m

ultip

le/

all

stra

tegic

obje

ctiv

es

Inadequate

capaci

ty t

o s

upport

the S

outh

Afr

ican F

ilm a

nd V

ideo

indust

ry

#Inadequate funding #Under-developed South African film industry

#Legislated funding allocation

Cata

stro

phic

5

Alm

ost

Cert

ain

5 25

Adequate

80% 5 None Council, CEO and

CFO N/A

#Inappropriate funding criteria

#Loss of stakeholder support and confidence

#Appropriate funding criteria/ policy

# Cumbersome funding application process

#Diminished relevance of the NFVF

#Monitoring of compliance with funding criteria

#Non-compliance with funding criteria/ policy

#Non-competitiveness of the South African film industry

#Human Resources strategy

# Inadequate assessment and monitoring of projects

#Reputational damage #Communication and stakeholder management strategy

#Inadequate skills and capacity

#Developmental training programmes/ interventions

#Inadequate consultation with stakeholders

#Regular national stakeholder forums

#Review of funding policies

3

Corp

ora

t

e

Govern

an

ce

Lin

ked t

o

multip

le/

all

stra

tegic

obje

ctiv

e

s Poor

corp

ora

te

govern

an

ce #Inadequate corporate

governance practices and structures

#Poor oversight #Corporate governance manual

Cata

stro

p

hic

5

Alm

ost

Cert

ain

5 25

Adequate

80% 5 None Council

and CEO N/A

31

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

#Inadequate policies and procedures

#Business inefficiencies

#Appropriate policies, procedures and Charters in place which are reviewed annually.

#High cost of compliance #Non-compliance with relevant legislation and regulations

#Appropriate key governance structures in place

#Oversight committees in place (AC, Exco, Transformation & HR)

#Compliance with all relevant legislation and regulations.

4

Reputa

tion

Lin

ked t

o m

ultip

le/

all

stra

tegic

obje

ctiv

es

Negative r

eputa

tion

#Non-compliance with mandate, regulatory and legal obligations

#Increased going concern risk

#Strategic Plan and Shareholders Compact

Critica

l

4

Hig

h

4 16

Adequate

80% 3 None

Council, CEO, CFO,

Heads of policy

Marketing and HR

N/A

#Poor communication with stakeholders

#Loss of stakeholder trust

#Regular stakeholder communication and engagement

#Breach of confidentiality

#Loss of confidential documents and information

#Regular monitoring of changes in legislation & adherence thereto.

#Poor service delivery #IT system security, confidentiality policy & Access to Information Policy.

5

Tech

nolo

gy

Lin

ked t

o

multip

le/

all

stra

tegic

obje

ctiv

es

Inadequate

secu

rity

of

confidential

info

rmation a

nd

IT G

overn

ance

#Poor information physical security

#Litigation against NFVF

#Contractual confidentiality clauses G37 (NFVF with staff, service providers, clients and Panel)

Critica

l

4

Hig

h

4 16

Adequate

80% 3 None

Council, CEO, CFO, HoDs

N/A

32

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

#Unauthorised use of intellectual property (third parties)

#Loss of confidential documents and information

#Adequate security of IT systems

#Poor IT system security #Reputational risk #Adequate physical security

#Inadequate information security policy

#Non-adherence to best practice standards

#Business Continuity Plan (BCP), which includes IT information back up plan

#Inadequate Information system procedures

#Loss of IT integrity #Records archiving system in place

#Inadequate Information Technology resource and strategy planning

# Reduced organisational performance

#Information Technology not aligned to Business objectives

#T Strategy document in place

#Inadequate information system infrastructure (including network, hardware, software, communication and interface, etc)

# IT Governance framework and policies in place

6

Anti F

raud

and

Corr

uption

Lin

ked t

o

multip

le/

all

stra

tegic

obje

ctiv

es

Fra

ud a

nd

corr

uption

#Inadequate policies & procedures

#Loss of resources (Financial, IT, etc)

#Appropriate policies and procedures that are aligned to relevant legislation

Cata

stro

phic

5

Hig

h

5 25

Adequate

80% 5

#Improve awareness

on the Fraud

Council, CEO, CFO,

Head of

Immediately

33

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

- Ineffective enforcement and monitoring of policies and procedures

#Poor service delivery #Effective enforcement and monitoring

Hotline policy

#Conflicts of interest & Collusion

#Negative publicity #Adequate security over assets

#Override of controls #Loss of stakeholder trust

#Conflict of interest Policy.

#Inadequate segregation of duties

#Litigation #Fraud prevention plan

#Hotline in place through DAC.

#Breach of confidentiality

#Negative audit reports

7

Perf

orm

ance

Monitoring a

nd E

valu

ation

Lin

ked t

o m

ultip

le/

all

stra

tegic

obje

ctiv

es

Poor

org

anis

ational perf

orm

ance

monitoring a

nd

evalu

ation

#Poor organisational performance

#Strategic planning guidelines

Critica

l

4

Hig

h

4 16

Adequate

80% 3 None Council,

CEO, CFO

N/A

# Lack of a performance information reporting framework

#Non-achievement of business goals and objectives

#Strategic and operational plans approved by Council and Shareholder

- Lack of/ non-alignment of individual performance agreements to strategy

#Non compliance with Shareholders Compact #Quarterly performance

reporting and monitoring

#Inadequate strategic and Annual Performance Plan

#Poor service delivery #All annual employee performance agreements aligned to strategic plan

#Loss of stakeholder trust

#Quarterly employee performance reviews

34

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

#Monthly management reporting

#Dashboard report for collating and monitoring performance information.

#Implementation plan per business unit

8

Hum

an R

eso

urc

es

Lin

ked t

o m

ultip

le/

all

stra

tegic

obje

ctiv

es

Inadequate

Hum

an R

eso

urc

e s

trate

gy a

nd p

roce

sses

#Inadequate policies and procedures

#Poor organisational performance

Appropriate Human Resource policies and procedures

Critica

l

4

Hig

h

4 16

Adequate

80% 3 None

Council, CEO,

CFO and Head of Human Resourc

es

#Ineffective implementation and monitoring of policies and procedures

#Low staff morale

#Effective implementation and monitoring of Human Resource policies and procedures

N/A

#Non-compliance with HR related legislation

#Failure to attract and retain staff with critical skills

#Policies aligned to legislation

#Limited funding through legislation (legislative cap on operational costs of 25%)

#Litigation #Transformation & HR Committee

#Performance management system

35

Ris

k N

um

Ris

k C

ate

go

ry

Str

ate

gic

Ob

jecti

ve

Ris

k D

escri

pti

on

Contributory Factor(s) Consequences Existing Controls

Inh

ere

nt

Imp

act

Inh

ere

nt

Imp

act

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Pro

ba

bil

ity

Inh

ere

nt

Ris

k R

ati

ng

Co

ntr

ol

ad

eq

ua

cy r

ati

ng

Qu

ali

tati

ve

Co

ntr

ol

Ad

eq

ua

cy

Ra

tin

g

Re

sid

ua

l R

isk

Ra

tin

g

Control Improve

ment Plans

Risk owner

Due date

(va

lue

)

(va

lue

)

36

ANNEXURE D STRATEGIC INTERNAL AUDIT PLAN

1. TERMS OF REFERENCE

The National Film and Video Foundation (“NFVF”) has an outsourced internal audit function. The Internal Audit Strategic Plan for the three years ending 31 March 2018, has been approval by the NFVF Audit Committee. This plan is informed by the results of a risk assessment that was facilitated by Internal Auditors with management and the audit committee in February 2015. The approach was to formulate a risk-based plan to align the priorities of the internal audit activity with the objectives and goals of NFVF and to focus on remedial actions implemented by management on internal audits performed during the previous financial year.

2. THE ROLE OF INTERNAL AUDIT The Institute of Internal Auditors defines internal auditing as: “An independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.” The internal audit activity should therefore evaluate and contribute to the improvement of risk management, control and governance systems of the organisation. Typical input/responsibilities of the internal audit function includes, amongst others:

2.1 Governance The Internal Audit function will assist NFVF’s Management in achieving its goals by evaluating the process through which: Goals and values are established and communicated, The accomplishment of goals is monitored and Accountability is ensured and corporate values are preserved.

37

2.2 Risk Management

The Internal Audit function will assist NFVF in identifying, evaluating and assessing significant organisational risks and provide assurance as to the effectiveness of related internal controls. Furthermore Internal Audit will evaluate the risk management process of NFVF for efficiency and effectiveness.

2.3 Controls

Internal audit evaluates whether the controls, which management relies on to manage the risks down to acceptable levels, are appropriate and functioning as intended (i.e. are they effective yet efficient) and develop recommendations for enhancement or improvement.

2.4 General

The internal audit function is authorised to: Have unrestricted access to all functions, records, property and personnel. Have full and uninhibited access to the Audit Committee. Allocate resources, set frequencies, select subjects, determine scopes of work in conjunction with NFVF’s management, and apply the

techniques required to accomplish audit objectives. Obtain the necessary assistance of personnel in divisions/areas/components of NFVF where we perform audits, as well as other

specialised services from within or outside the organisation. The internal audit function is not authorised to: Perform any operational duties for NFVF. Initiate or approve accounting transactions external to the Internal Auditing Function. Direct the activities of any organisation employee not employed by the Internal Auditing Function, except to the extent that such

employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors in carrying out investigations. The internal audit function will conduct audits in accordance with the “Code of Ethics” and “Standards for the Professional Practice of Internal Auditing” of The Institute of Internal Auditors.

38

3. MANAGEMENT RESPONSIBILITY

Management is responsible for the establishment and maintenance of an effective system of governance to:

Establish and communicate organisational goals and values, Monitor the accomplishment of goals and Ensure accountability and values are preserved. Management is further responsible for the establishment and maintenance of an effective system of internal control. The objectives of the system of internal control are, inter alias, to provide management with reasonable, but not absolute, assurance that: Risks are properly managed, Assets are safeguarded, Financial and operational information are reliable, Operations are effective and efficient and Laws, regulations and contracts are complied with. The principal safeguard against fraud, misstatement and irregularities is an effective system of internal control. It must, however, be recognised that there are inherent limitations in any system of internal control – including human error and circumventions through collusion. The prevention and detection of fraud is therefore management’s responsibility.

4. SCOPE OF WORK AND YOUR EXPECTATIONS The critical success factors for an effective internal audit plan are that it: Is aligned with strategic objectives of the organisation, Covers the strategic risk areas facing the organisation, not just the financial risks and controls, Is risk based – addresses the key risks areas/concerns of management, Is prepared in co-operation with management, the audit committee and external auditors, Matches assurance needs with available resources. Assistance with respect to special services such as forensic audits, computer implementations, taxation, and general accounting assistance will be provided when requested.

39

Although investigating fraud and other irregularities are not the primary focus of the internal audit approach, internal audit will maintain close liaison with management should internal audit identify any such issues, and will recommend the appropriate forensic teams or other related specialists capable of addressing those issues that require specific attention. Internal audit will commit to provide a value-added service that will satisfy and exceed NFVF expectations through: Timely reporting; Effective communication with management; Value added recommendations; and Assistance to management to implement and maintain an effective internal control environment.

5. ENGAGEMENT REPORTING STRUCTURE Communication, particularly through reports, is an essential element of the internal audit process. Reports will clearly demonstrate the control and operational concerns arising from the audit, the potential impact and the practical, reasonable recommendations for change. Internal audit regards the reporting of audit findings as one of the most important steps of the internal audit process and the approach could be summarised as follows: Present draft reports to management for comments within 10 days of completion of fieldwork. Obtain management comments within 10 days from issuing of draft report. Present final report to management within 7 days of receiving comments. Present summary of significant matters to the Audit Committee on a periodic basis. Report implementation status of management actions on internal audit and external audit reports to management and Audit

Committee. Report on status of our work against plan and any subsequent changes to the plan on a periodic basis.

6. PROJECT MANAGEMENT

Included in the plan is the time necessary for the management of internal audit services. This involves the day-to-day running of services and will include the following functions:

40

Liaison with management and external auditors. Keeping abreast of changes within NFVF, regarding new business, new systems and new risk areas. Participating in committees where control expertise is required. Quality control of individual internal audit assignments. Reporting to management and audit committee. Preparation of audit plans.

7. REPORTING TO THE AUDIT COMMITTEE

Internal Audit will report quarterly to the Audit Committee and Senior Management. The report will include, inter alias: Details of the internal audit activities for the preceding period/quarter. Results of the internal audit reviews undertaken and finalised during the preceding period/quarter. Progress against the approved Annual Internal Audit Operational Plan – including any deviations from the approved plan.

All reports will be discussed and agreed with line management/process owners before being finalised and distributed to senior management and the Audit Committee. Where obtaining management comments and approval will unduly delay the finalisation of audit reports these may be distributed marked “Issued without Management Comment”.

8. LIAISON WITH EXTERNAL AUDITORS

Internal audit will liaise closely with the External Auditors to avoid unnecessary duplication of audit effort, and facilitate sharing of audit plans and working papers. Liaison with the External Auditors will include holding regular meetings to allow them to consider and conclude on the level of reliance that they will place on the internal audit work.

41

9. STRATEGIC THREE-YEAR INTERNAL AUDIT PLAN – THREE YEAR PERIOD ENDING 31 MARCH 2018

Auditable

Area Risk Identified

Risk ref Scope for 2015/2016

Assurance Provider 2015/

2016

2016/

2017

2017/

2018 EA I

A MGT Other

Nature of

review

GENERAL MANAGEMENT

Management

of the Internal

Audit Function

Not

Applicable

N/A Updating of Internal Audit

and Audi Committee

Charters.

Strategic and Operational

Planning.

Discussion of reports with

Senior Management.

Preparing for and

Attending NFVF Audit

Committee meetings.

Liaison with external

auditors

Liaison with the Chief Risk

Officer.

Project Management.

Not Applicable

AUDIT ACTIVITIES

Project

Funding

Inadequate

capacity to

support the

South African

Film and

Video industry

Failure to

meet

shareholder

and key

stakeholder

expectations

1,2 Review the adequacy

and effectiveness over

the controls over the

funding of projects,

marketing festivals, etc

- Compliance

Governance

Review

Poor

corporate

1,3,4 Review compliance with

key legislative and

- Compliance

42

Auditable

Area Risk Identified

Risk ref Scope for 2015/2016

Assurance Provider 2015/

2016

2016/

2017

2017/

2018 EA I

A MGT Other

Nature of

review

governance

Failure to

meet

shareholder

and key

stakeholder

expectations

Poor

Reputation

governance processes

IT Review Inadequate

security of

confidential

information

and IT

Governance

5 IT General Controls

Review

- Compliance

Fraud and

Corruption

(Including

Supply Chain

Management)

Fraud and

corruption

6 Review the adequacy

and effectiveness of

controls over NFVF Supply

Chain Management

processes

- Compliance

/Financial

Human

Capital

Inadequate

Human

Resource

strategy and

processes

8 Compliance with NFVF

Human Resources Policies

and Procedures

- Compliance,

Operational

Audit of

Predetermine

d Objectives

Poor

organisational

performance

monitoring

and

evaluation

7 Usefulness and accuracy

of performance

Information (Quarterly

Audits)

- Performance

43

10. OPERATIONAL INTERNAL AUDIT PLAN FOR THE FINANCIAL YEAR ENDING 31 MARCH 2016

The annual coverage plan provides stakeholders with information regarding the areas to be covered, budgeted hours and

amounts as well as the timing thereof. The three year rolling plan is updated on an ongoing basis as and when risk assessments are

conducted.

It should be noted that the proposed audit approach and the audit scope for each assignment will be confirmed and agreed with

management before the audit is started. Internal Audit will send out an Audit Planning Memorandum that sets out these details

which will be agreed upon, prior to the execution of any audit work. The audit scope will cover the risks identified and other

management concerns, at the time of the audit.

No Activity Timing

ADMINISTRATION

1 Compile Three Year Rolling Strategic and Annual Operational Internal Audit

Plan

Feb 2015

2 Update Internal Audit Charter (No Charge) May 2015

3 Assessment of the Audit Needs Feb 2015

4 Management Liaison and Reporting Ongoing

INTERNAL AUDIT

ACTIVITIES

5 Project Funding June 2015

6 Human Capital & Payroll Sept 2015

7 Information Technology Review Jan 2016

8 Audit of Predetermined Objectives (Quarterly) Aug 2015, Nov 2015,

Jan 2016, April 2016

9 Supply Chain Management Oct 2015

10 Follow up Prior Period Findings Jan 2016

REPORTING

11 Reporting to Audit Committee Quarterly

44

AN

NE

XU

RE

E

TE

CH

NIC

AL D

ES

CR

IPT

IO

NS

Indica

tor title

B

urs

ary

fun

din

g fo

r diffe

ren

t leve

ls o

f train

ing

Short d

efin

ition

Pro

vid

e b

ursa

ries to

students stu

dyin

g a

t tertia

ry in

stitutio

ns to

obta

in a

filmm

akin

g d

egre

e/ce

rtificate

/dip

lom

a

Purp

ose

/importa

nce

Ensu

re p

revio

usly

disa

dvanta

ged y

outh

are

bro

ught to

the

main

stream

of film

makin

g

Source

/colle

ction o

f data

G

rant F

undin

g sy

stem

(PTS)

Meth

od o

f ca

lcula

tion

Num

ber o

f bursa

ries a

ppro

ved a

t Council m

eetin

gs

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

H

igher b

ursa

ry ta

rgets a

re d

esira

ble

as th

is will co

ntrib

ute

to

gre

ate

r levels o

f skills d

evelo

pm

ent w

ithin

the film

industry

.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

In

tern

sh

ip P

rog

ram

me

Short d

efin

ition

A p

rogra

m a

imed to

giv

e g

raduate

s experie

ntia

l train

ing

Purp

ose

/importa

nce

G

ive th

e g

raduate

s an o

pportu

nity

to g

ain

work

pla

ce

experie

nce

which

will m

ake th

em

em

plo

yable

Source

/colle

ction o

f data

G

rant F

undin

g sy

stem

s

Meth

od o

f ca

lcula

tion

Num

ber o

f inte

rns in

the p

rogra

ms

Data

limita

tions

None

Type o

f indica

tor

No sp

ecific

Calcu

latio

n ty

pe

Annual

Reportin

g cy

cle

Quarte

rly

New

indica

tor

no

Desire

d

perfo

rmance

Low

attritio

n ra

tes

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

Indica

tor title

S

pe

cia

lists

up

–sk

illed

in th

eir a

rea

of p

rofe

ssio

n

thro

ug

h th

e s

up

po

rt of p

rog

ram

me

s

Short d

efin

ition

Scrip

twritin

g a

nd P

roducin

g P

rogra

mm

es

Purp

ose

/importa

nce

U

p sk

ill pre

dom

inate

ly b

lack

filmm

akers in

the a

reas o

f scre

enw

riting a

nd th

e b

usin

ess o

f film.

Source

/colle

ction o

f data

W

ork

shop a

ttendance

registe

rs and m

ento

r reports.

Meth

od o

f ca

lcula

tion

Num

bers o

f train

ed le

arn

ers

45

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

H

igher ta

rgets o

f write

rs and p

roduce

rs.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

S

up

po

rt org

an

isa

tion

s th

at o

ffer tra

inin

g in

sp

ecific

g

ap

are

as

Short d

efin

ition

Giv

e g

rants to

org

anisa

tions th

at o

ffer tra

inin

g in

specific g

ap

are

as n

ot o

ffere

d a

t public in

stitutio

ns.

Purp

ose

/importa

nce

In

crease

num

ber o

f skille

d b

lack

filmm

akers.

Source

/colle

ction o

f data

G

rant F

undin

g sy

stem

, PTS

Meth

od o

f ca

lcula

tion

Num

ber o

f train

ing co

mpanie

s appro

ved a

t Council m

eetin

g.

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Learn

ers a

re sk

illed in

that sp

ecific d

isciplin

e.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

M

en

tors

hip

an

d S

kills

tran

sfe

r pro

gra

mm

es

Short d

efin

ition

Fundin

g o

f students to

atte

nd in

dustry

festiv

als lo

cally

and

inte

rnatio

nally

.

Purp

ose

/importa

nce

To d

evelo

p th

e ca

reer p

ath

of y

oung film

makers a

nd a

lso to

expose

them

to th

e b

usin

ess o

f filmm

akin

g d

urin

g th

eir p

rime

years.

Source

/colle

ction o

f data

Request fo

r expenditu

re

Meth

od o

f ca

lcula

tion

Num

ber o

f students se

lecte

d to

particip

ate

at th

ese

foru

ms.

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

One m

onth

afte

r the re

turn

of th

e stu

dents fro

m th

e p

articu

lar

festiv

al.

New

indica

tor

No

Desire

d

perfo

rmance

Tw

o stu

dents a

ttend a

loca

l film fe

stival a

nd tw

o stu

dents

atte

nd a

n in

tern

atio

nal film

festiv

al.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

46

Indica

tor title

S

ed

iba

Scrip

twritin

g P

rog

ram

me

Short d

efin

ition

Pro

gra

mm

e a

imed a

t pro

vid

ing scre

enw

riting a

nd scrip

t editin

g

skills to

industry

script w

riters.

Purp

ose

/importa

nce

U

p sk

ill pre

dom

inate

ly b

lack

filmm

akers in

the a

reas o

f scre

enw

riting a

nd th

e b

usin

ess o

f film.

Source

/colle

ction o

f data

W

ork

shop a

ttendance

registe

rs and m

ento

r reports.

Meth

od o

f ca

lcula

tion

Num

bers o

f train

ed le

arn

ers

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

H

igher ta

rgets o

f write

rs and p

roduce

rs.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

Lo

ca

l & in

tern

atio

na

l Activ

atio

ns

Short d

efin

ition

Film

activ

atio

ns a

nd N

FVF P

rese

nce

at In

tern

atio

nal a

nd L

oca

l m

ark

ets a

nd fe

stivals.

Purp

ose

/importa

nce

To p

ositio

n a

nd stre

ngth

en th

e N

FVF b

rand a

nd S

outh

Africa

n

film in

dustry

natio

n-w

ide a

nd g

lobally

Source

/colle

ction o

f data

Activ

atio

n re

port

Meth

od o

f ca

lcula

tion

Revie

w o

f report

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Activ

ity

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Per p

roje

ct

New

indica

tor

No

Desire

d

perfo

rmance

To h

ave p

articip

ate

d a

t the ta

rgete

d a

nd id

entifie

d in

dustry

pla

tform

s

Indica

tor

resp

onsib

ility

Head: M

ark

etin

g &

Com

munica

tions

Indica

tor title

A

ud

ien

ce

De

ve

lop

me

nt fo

r SA

films

Short d

efin

ition

Conduct o

utre

ach

pro

gra

mm

es a

imed a

t audie

nce

develo

pm

ent a

nd e

xposin

g S

outh

Africa

n p

ublic to

loca

l co

nte

nt.

Purp

ose

/importa

nce

To stim

ula

te th

e cu

lture

of film

appre

ciatio

n a

nd cin

em

a g

oin

g

with

in co

mm

unitie

s

Source

/colle

ction o

f data

Report

47

Meth

od o

f ca

lcula

tion

Revie

w o

f report

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Activ

ity

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Per p

roje

ct

New

indica

tor

No

Desire

d

perfo

rmance

G

row

th a

nd in

crease

d d

iversity

in S

outh

Africa

n a

udie

nce

s that

have a

ccess to

and d

em

and fo

r loca

l conte

nt.

Indica

tor

resp

onsib

ility

Head: M

ark

etin

g &

Com

munica

tions

Indica

tor title

C

om

mu

nic

atio

n

Short d

efin

ition

Pro

file a

nd co

mm

unica

te th

e N

FVF a

nd In

dustry

activ

ities w

ith

the a

im o

f positio

nin

g b

oth

the N

FVF a

nd S

A film

industry

lo

cally

and in

tern

atio

nally

Purp

ose

/importa

nce

The N

FVF to

be re

cognise

d a

s the cu

stodia

n o

f film, n

ot o

nly

w

ithin

the film

com

munity

but a

mong th

e p

ublic a

nd se

ctors

who a

re n

ot d

irect in

volv

ed in

the in

dustry

and fo

r the lo

cal

film in

dustry

to b

e th

e “n

um

ber o

ne” p

roduct in

the m

inds o

f genera

l consu

mers.

Source

/colle

ction o

f data

M

edia

monito

ring, p

ublica

tions, p

ress re

lease

s

Meth

od o

f ca

lcula

tion

Advertisin

g v

alu

e E

quiv

ale

ncy

(AVE)

Data

limita

tions

The se

rvice

mig

ht n

ot b

e a

ble

to ca

ptu

re a

ll the A

VE re

giste

red

in sp

ecific m

onth

s

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Cum

ula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

H

igher p

erfo

rmance

is desira

ble

as th

is indica

tes th

at

com

munica

tion h

as re

ach

ed b

eyond th

e ta

rget a

udie

nce

.

Indica

tor

resp

onsib

ility

Head: M

ark

etin

g &

Com

munica

tions

Indica

tor title

A

n in

cre

ase

in th

e v

olu

me

of S

ou

th A

frica

n film

s

pro

du

ce

d

Short d

efin

ition

An in

crease

in th

e n

um

ber o

f South

Africa

n film

s pro

duce

d

Purp

ose

/importa

nce

An in

crease

in th

e n

um

ber o

f South

Africa

n film

s pro

duce

d

ensu

res cre

atin

g a

more

com

petitiv

e a

nd su

stain

able

industry

. It w

ould

also

have a

dire

ct and p

ositiv

e im

pact o

n a

udie

nce

develo

pm

ent.

Source

/colle

ction o

f data

G

rant F

undin

g sy

stem

(PTS)

Meth

od o

f ca

lcula

tion

Num

ber o

f films su

pporte

d fo

r pro

ductio

n.

Data

limita

tions

No lim

itatio

ns

48

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

None

Desire

d

perfo

rmance

A re

turn

on in

vestm

ent o

n film

s pro

duce

d fo

r both

investo

rs and p

roduce

rs, so th

at th

e in

dustry

contin

ues to

be

eco

nom

ically

via

ble

.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

A

n in

cre

ase

in th

e n

o. o

f PD

I’s

su

cce

ssfu

lly a

pp

lyin

g fo

r N

FV

F fu

nd

ing

Short d

efin

ition

An in

crease

in th

e n

o. o

f PD

I’s aw

ard

ed N

FVF fu

ndin

g.

Purp

ose

/importa

nce

To tra

nsfo

rm th

e in

dustry

for th

e b

ette

rment o

f pre

vio

usly

disa

dvanta

ged g

roups.

Source

/colle

ction o

f data

G

rant F

undin

g sy

stem

(PTS)

Meth

od o

f ca

lcula

tion

Num

ber o

f PD

I’s supporte

d.

Data

limita

tions

No lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

None

Desire

d

perfo

rmance

An in

crease

in th

e n

um

ber o

f PD

I’s particip

atin

g in

the film

in

dustry

in H

OD

role

s.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

Indica

tor title

A

ssis

t loca

l films in

dis

tribu

tion

Short d

efin

ition

Assist in

distrib

utin

g lo

cal film

s.

Purp

ose

/importa

nce

To fin

d in

novativ

e m

eth

ods to

distrib

ute

loca

l titles to

have a

s w

ide a

reach

as p

ossib

le.

Source

/colle

ction o

f data

D

istributio

n a

nd b

ox o

ffice re

ports.

Meth

od o

f ca

lcula

tion

Reco

upm

ent re

ports.

Data

limita

tions

No lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non-cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

None

Desire

d

perfo

rmance

Loca

l titles to

do w

ell o

n a

ll distrib

utio

n p

latfo

rms.

Indica

tor

resp

onsib

ility

Head: P

roductio

n a

nd D

evelo

pm

ent

49

Indica

tor title

In

du

stry

rese

arc

h c

on

du

cte

d a

nd

pu

blis

he

d

Short d

efin

ition

Num

ber o

f rese

arch

pro

jects co

nducte

d in

the film

and v

ideo

industry

Purp

ose

/importa

nce

Rese

arch

is importa

nt a

s it info

rms p

olicy

. It also

pro

vid

es

insig

ht in

to th

e sta

te o

f the film

industry

by h

ighlig

htin

g th

e

statistics, g

aps, ch

alle

nges a

nd o

pportu

nitie

s by p

rovid

ing

reco

mm

endatio

ns o

n h

ow

these

can b

e a

ddre

ssed.

Source

/colle

ction o

f data

Film

financie

rs (DTI, N

FVF), d

esk

top re

search

, stakehold

ers in

th

e film

industry

, rese

arch

papers,

Meth

od o

f ca

lcula

tion

Num

ber o

f rese

arch

pro

jects co

nducte

d

Data

limita

tions

Unaudite

d fin

ancia

ls for p

roductio

n b

udget, O

verla

p in

re

portin

g p

erio

ds

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Actu

al p

erfo

rmance

is desire

d a

s underp

erfo

rmance

mig

ht

mean th

at m

uch

needed in

dustry

info

rmatio

n is n

ot a

vaila

ble

to

driv

e p

olicy

develo

pm

ent a

nd ch

anges.

Indica

tor

resp

onsib

ility

Head: P

olicy

& R

ese

arch

Indica

tor title

P

olic

ies a

pp

rove

d

Short d

efin

ition

Develo

p a

nd re

vie

w in

tern

al a

nd e

xte

rnal p

olicie

s of th

e

org

anisa

tion to

support th

e b

usin

ess

Purp

ose

/importa

nce

Pro

vid

e cle

ar p

olicie

s on h

ow

beneficia

ries ca

n a

ccess a

nd

qualify

for v

ario

us g

rants a

s well a

s settin

g o

ut v

ario

us p

olicie

s to

ensu

re e

ffectiv

e g

overn

ance

and a

dm

inistra

tion

Source

/colle

ction o

f data

N

FVF A

ct, vario

us g

overn

ment a

cts and re

gula

tion a

s well a

s best p

ractice

s.

Meth

od o

f ca

lcula

tion

Num

ber o

f policie

s appro

ved b

y C

ouncil

Data

limita

tions

Policy

appro

vals m

ay so

metim

es re

quire

Min

isteria

l and b

uy in

fro

m sta

kehold

ers w

hich

can b

e g

rante

d o

r with

held

which

im

pacts n

egativ

ely

on th

e d

esire

d p

erfo

rmance

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Actu

al p

erfo

rmance

that is ta

rgete

d is d

esira

ble

Indica

tor

resp

onsib

ility

Head: P

olicy

& R

ese

arch

Indica

tor title

C

ertific

atio

n o

f Na

tion

al F

ilms

Short d

efin

ition

Certify

films a

s qualify

ing n

atio

nal film

s under o

fficial tre

aty

sig

ned b

y S

outh

Africa

or S

outh

Africa

n film

s that w

ill be

distrib

ute

d o

utsid

e S

outh

Africa

.

50

Purp

ose

/importa

nce

To e

nsu

re th

at film

s that a

re ce

rtified co

mply

with

the tre

aty

re

quire

ment a

nd S

outh

Africa

n film

s can b

e d

istribute

d

inte

rnatio

nally

.

Source

/colle

ction o

f data

Applica

tion fo

rms fo

r advance

and fin

al ru

ling

Applica

tion fo

rms fo

r certifica

tes o

f natio

nality

Meth

od o

f ca

lcula

tion

Num

ber o

f pro

jects e

valu

ate

d a

nd ce

rtified

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

H

igher n

um

ber o

f certifica

tion is d

esira

ble

as m

ore

co-

pro

ductio

ns w

ill contrib

ute

to th

e fro

th in

the n

um

ber o

f annual p

roductio

ns a

nd jo

bs cre

ate

d lo

cally

Indica

tor

resp

onsib

ility

Head: P

olicy

& R

ese

arch

Indica

tor title

E

ffectiv

e re

po

rting

Short d

efin

ition

Regula

r reportin

g o

f the o

rganisa

tions ta

rgets a

nd

perfo

rmance

Purp

ose

/importa

nce

Regula

r reportin

g a

ssists in th

e e

valu

atio

n a

nd m

onito

ring o

f th

e o

rganisa

tions p

erfo

rmance

and ta

rgets a

nd a

ssists in

ensu

ring th

at co

rrectiv

e a

ction, if n

ece

ssary

, is taken tim

eously

Source

/colle

ction o

f data

Q

uarte

rly re

ports

Meth

od o

f ca

lcula

tion

Revie

w o

f Reports

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Q

uarte

rly re

ports

Indica

tor

resp

onsib

ility

CFO

Indica

tor title

E

ffectiv

e g

ove

rna

nce

Short d

efin

ition

A sy

stem

that e

nsu

re th

at th

e o

rganisa

tion’s g

overn

ance

stru

cture

s are

effe

ctive a

nd e

fficient

Purp

ose

/importa

nce

To e

nsu

re a

fully

functio

nin

g a

nd e

fficient o

rganisa

tion th

at

fulfils its sta

tuto

ry o

blig

atio

ns in

term

s of th

e N

FVF A

ct and th

e

PFM

A a

nd fu

lly m

eets th

e n

eeds o

f its stakehold

ers.

Source

/colle

ction o

f data

Fin

ancia

l Reports a

nd p

erfo

rmance

managem

ent re

ports

Meth

od o

f ca

lcula

tion

Audito

r’s report

51

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

U

nqualifie

d a

nnual fin

ancia

l state

ments

Indica

tor

resp

onsib

ility

CFO

Indica

tor title

M

ain

ten

an

ce

of ris

k re

gis

ter

Short d

efin

ition

A re

giste

r that id

entifie

s the m

ajo

r risks o

f the o

rganisa

tion

Purp

ose

/importa

nce

To e

nsu

re th

at th

e o

rganisa

tion h

as m

itigatin

g co

ntro

ls to

counte

r risks id

entifie

d

Source

/colle

ction o

f data

Risk

Registe

r

Meth

od o

f ca

lcula

tion

Num

ber o

f risks id

entifie

d

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Lim

itatio

n to

the n

um

ber o

f findin

gs o

n in

tern

al a

udit re

ports

Indica

tor

resp

onsib

ility

CFO

Indica

tor title

In

tern

al a

ud

it fun

ctio

n

Short d

efin

ition

An in

dependent, o

bje

ctive a

ssura

nce

and co

nsu

lting a

ctivity

desig

ned to

add v

alu

e a

nd im

pro

ve a

n o

rganiza

tion's

opera

tions.

Purp

ose

/importa

nce

It h

elp

s an o

rganisa

tion a

ccom

plish

its obje

ctives b

y b

ringin

g a

sy

stem

atic, d

isciplin

ed a

ppro

ach

to e

valu

ate

and im

pro

ve th

e

effe

ctiveness o

f risk m

anagem

ent, co

ntro

l and g

overn

ance

pro

cesse

s

Source

/colle

ction o

f data

In

tern

al A

udit re

ports

Meth

od o

f ca

lcula

tion

Num

ber o

f audits p

erfo

rmed

Data

limita

tions

No sp

ecific lim

itatio

ns

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Lim

itatio

n to

the n

um

ber o

f findin

gs o

n in

tern

al a

udit re

ports

Indica

tor

resp

onsib

ility

CFO

52

Indica

tor title

P

erfo

rma

nce

Ma

na

ge

me

nt

Short d

efin

ition

A to

ol to

measu

re e

mplo

yee p

erfo

rmance

Purp

ose

/importa

nce

M

easu

re a

nd o

r asse

ss indiv

idual e

mplo

yee p

erfo

rmance

and

for tra

ckin

g th

at e

mplo

yees d

eliv

er o

n th

eir co

ntra

cts

Source

/colle

ction o

f data

Perfo

rmance

contra

cts

Meth

od o

f ca

lcula

tion

Sco

res

Data

limita

tions

Subje

ctive m

easu

rem

ent d

oesn

’t acco

mm

odate

measu

ring

perso

nality

attrib

ute

s e.g

. attitu

de

Type o

f indica

tor

efficie

ncy

Calcu

latio

n ty

pe

cum

ula

tive

Reportin

g cy

cle

Half y

early

New

indica

tor

No

Desire

d

perfo

rmance

H

igher p

erfo

rmance

alw

ays re

quire

d fo

r serv

ice d

eliv

ery

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

Indica

tor title

H

um

an

Re

so

urc

es D

eve

lop

me

nt

Short d

efin

ition

Tra

inin

g o

f staff

Purp

ose

/importa

nce

To ca

pacita

te e

mplo

yees w

ith th

e sk

ills and k

now

ledge to

do

their w

ork

and to

learn

new

ways o

f doin

g th

ings

Source

/colle

ction o

f data

PD

P( p

erso

nal d

evelo

pm

ent p

lans) a

nd p

erfo

rmance

revie

ws

Meth

od o

f ca

lcula

tion

Work

pla

ce sk

ills pla

n

Data

limita

tions

none

Type o

f indica

tor

outp

ut

Calcu

latio

n ty

pe

cum

ula

tive

Reportin

g cy

cle

Quarte

rly

New

indica

tor

none

Desire

d

perfo

rmance

M

ore

staff a

re th

e re

quire

d sk

ills the m

ore

serv

ice d

eliv

ery

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

Indica

tor title

M

en

tors

hip

Pro

gra

mm

e

Short d

efin

ition

To p

rovid

e e

mplo

yees w

ith su

pport fro

m th

eir ca

reer

pro

gre

ssion

Purp

ose

/importa

nce

To p

rovid

e su

pport, fe

edback

to e

mplo

yees in

line w

ith th

eir

care

er a

spira

tion a

nd sk

ills transfe

r

Source

/colle

ction o

f data

PD

P

Meth

od o

f ca

lcula

tion

Num

ber o

f em

plo

yees m

atch

ed w

ith M

ento

rs

53

Data

limita

tions

No sp

ecific lim

itatio

n

Type o

f indica

tor

input

Calcu

latio

n ty

pe

cum

ula

tive

Reportin

g cy

cle

annual

New

indica

tor

No

Desire

d

perfo

rmance

H

igher p

erfo

rmance

is desira

ble

as sk

ills transfe

r is valu

able

to

the o

rganisa

tion

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

Indica

tor title

E

mp

loye

e W

elln

ess

Short d

efin

ition

A p

reventa

tive p

rogra

m o

n a

health

asp

ects th

at a

ffect

em

plo

yees

Purp

ose

/importa

nce

To e

nsu

re th

at th

e o

rganisa

tion h

as a

health

y w

ork

force

, re

duce

abse

nte

eism

and stre

ss there

by in

creasin

g p

roductiv

ity

Source

/colle

ction o

f data

Leave re

cord

s

Meth

od o

f ca

lcula

tion

Num

ber o

f days a

bse

nt

Data

limita

tions

Non d

isclosu

re

Type o

f indica

tor

impact

Calcu

latio

n ty

pe

cum

ula

tive

Reportin

g cy

cle

month

ly

New

indica

tor

NO

Desire

d

perfo

rmance

Low

er a

bse

nte

eism

leads to

incre

ase

perfo

rmance

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

Indica

tor title

La

bo

ur a

nd

Co

mp

lian

ce

Short d

efin

ition

Ensu

re th

at th

e o

rganisa

tion a

dhere

s to la

bour le

gisla

tion a

nd

policie

s

Purp

ose

/importa

nce

To m

onito

r and re

gula

te e

mplo

yer a

nd e

mplo

yee re

latio

nsh

ip

Source

/colle

ction o

f data

Legisla

tion a

nd p

olicie

s and p

roce

dure

s

Meth

od o

f ca

lcula

tion

Num

ber o

f discip

linary

case

s and co

mplia

nce

ord

ers

Data

limita

tions

No sp

ecific lim

itatio

n

Type o

f indica

tor

impact

Calcu

latio

n ty

pe

cum

ula

tive

Reportin

g cy

cle

quarte

rly

New

indica

tor

No

Desire

d

perfo

rmance

Low

er ca

ses a

nd o

rders

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

54

Indica

tor title

P

ayro

ll

Short d

efin

ition

Em

plo

yees sa

larie

s

Purp

ose

/importa

nce

To e

nsu

re th

at co

rrect sa

larie

s are

paid

to th

e rig

ht p

eople

on

time

Source

/colle

ction o

f data

Em

plo

yees a

ppoin

tment co

ntra

cts, schedule

s of sa

lary

in

crease

s

Meth

od o

f ca

lcula

tion

As p

er th

e sa

lary

schedule

Data

limita

tions

None

Type o

f indica

tor

Outp

ut

Calcu

latio

n ty

pe

Non cu

mula

tive

Reportin

g cy

cle

month

ly

New

indica

tor

no

Desire

d

perfo

rmance

100%

com

plia

nce

with

the sch

edule

s

Indica

tor

resp

onsib

ility

Head: H

um

an R

eso

urce

s

AN

NEX

UR

E FSTA

TEMEN

T OF FIN

AN

CIA

L PO

SITION

2016/172017/18

2018/19Statem

ent of Financial Position

R'000

R'000

R'000

ASSETS

Current assets

59 181

51 458

43 602

Current investment s

197

197

197

Trade and other receivables from exchan ge transactions

1 000

1 000

1 000

Prepayments

2 000

2 000

2 000

Cash and cash equivalent s55 984

48 261

40 405

Non-current assets

7 463

6 500

3 500

Property, plant and equipmen t

3 563

3 000

2 000

Intan gible assets3 900

3 500

1 500

Total assets66 644

57 958

47 102

LIAB

ILITIES

Current liabilities

32 741

28 155

22 302

Trade and other payables from exchan ge transactions

2 000

2 000

1 000

Current provisions30 741

26 155

21 302

Leave

750

700

650

Provisions for operational liabilities29 991

25 455

20 652

Non-current liabilities

28 153

24 053

19 050

Operatin g Lease Liability

153

53

50

Non-current provision s

28 000

24 000

19 000

Total liabilities60 894

52 208

41 352

NET A

SSETS5 750

5 750

5 750

Accumulated surplus

5 750

5 750

5 750

55

AN

NEX

UR

E FQ

UA

RTER

LY STA

TEMEN

T OF FIN

AN

CIA

L PO

SITION

Statement of Financial P

ositionA

SSETSQ

1Q

2Q

3Q

4

Current assets

53 505

45 003

38 675

59 181

Current investment s

197

197

197

197

Trade and other receivables from exchan ge transactions

1 300

-

1 000

1 000

Prepayments

-

-

-

2 000

Cash and cash equivalent s52 008

44 806

37 478

55 984

Non-current assets

6 059

6 359

5 724

7 463

Property, plant and equipmen t

4 031

3 999

3 524

3 563

Intan gible assets2 028

2 360

2 200

3 900

Total assets59 564

51 362

44 399

66 644

LIAB

ILITIES

Current liabilities

34 764

32 945

26 982

32 741

Trade and other payables from exchan ge transactions

800

3 400

1 000

2 000

Current provisions33 964

29 545

25 982

30 741

Leave

490

620

680

750

Provisions for operational liabilities33 474

28 925

25 302

29 991

Non-current liabilities

19 050

16 050

15 050

28 153

Operatin g Lease Liability

50

50

50

153

Non-current provision s

19 000

16 000

15 000

28 000

Total liabilities53 814

48 995

42 032

60 894

NET A

SSETS5750

2 367

2 367

5 750

Accumulated surplus / (deficit)

5 750

2 367

2 367

5 750

Total net assets and liabilities59 564

51 362

44 399

66 644

56

AN

NEX

UR

E FSTA

TEMEN

T OF FIN

AN

CIA

L PER

FOR

MA

NC

E

2016/172017/18

2018/19

R Thousand

Budget

Estimate

Budget

Estimate

Budget

Estimate

Cash receipts from

DA

C122 907

129 052

136 795

Interest

3 600

3 600

3 600

Transfers and subsidies91 200

95 300

101 500

Training and Developm

ent11 800

12 100

13 000

Policy and Research

3 800

4 000

4 300

Developm

ent and Production of Content-

-

Tier 1

8 600

8 900

9 500

Tier 223 500

24 200

26 000

Tier 3

11 750

12 200

13 500

Marketing and Com

munications

31 750

33 900

35 200

Current paym

ents35 307

37 352

38 895

C

ompensation of em

ployees23 042

24 377

25 381

Goods and service s

12 265

12 976

13 514

Accounting Fees620

657

683

Advertising &

Promotions

300

318

331

Audit Fees750

795

827

Bank Charges

72

76

79

Cleaning66

70

73

Com

puter Expenses270

286

298

Courier &

Postage240

254

265

Conferences

100

106

110

Depreciation

1 740

1 844

1 918

Electricity & W

ater624

661

688

Equipm

ent Hire

456

483

503

Facilitation & D

ocumentation

300

318

331

Food & Beverage

30

32

33

General O

ffice Supplies5

5

6

H

onorarium1 058

1 121

1 166

Insurance

100

106

110

Legal Fees80

85

90

M

embership fees

70

74

79

Plants & Flow

ers72

76

81

Printing &

Stationery240

254

270

Personnel Recruitm

ent Services350

371

393

Rent Paid

2 469

2 592

2 696

Repairs & M

aintenance56

59

63

Security

240

254

265

Staff Training & D

evelopment

680

721

750

Subscriptions - Other

33

35

37

Telephone & Fax

504

534

556

Travel & Accom

modation

450

477

496

Venue and Catering costs110

117

121

W

ebsite Expenses180

191

198

Surplus/Deficit

0

-0

0

57

AN

NEX

UR

E FQ

UA

RTER

LY STA

TEMEN

T OF FIN

AN

CIA

L PER

FOR

MA

NC

E

R Thousand

Total Q

uarter1 Q

uarter2 Q

uarter3 Q

uarter4 C

ash receipts from D

AC

122 907

30 727

30 727

30 727

30 727

Interest3 600

900

900

900

900

Transfers and subsidies91 200

22 800

22 800

22 800

22 800

Training and Developm

ent11 800

2 950

2 950

2 950

2 950

Policy and Research

3 800

950

950

950

950

Developm

ent and Production of Content43 850

10 963

10 963

10 963

10 963

M

arketing and Comm

unications31 750

7 938

7 937

7 937

7 937

Current paym

ents35 307

8 827

8 827

8 827

8 827

Com

pensation of employees

23 042

5 761

5 761

5 761

5 761

Goods and services

12 265

3 066

3 066

3 066

3 066

Accounting Fees610

153

153

153

153

Advertising &

Promotions

300

75

75

75

75

Audit Fees730

183

183

183

183

Bank Charges

72

18

18

18

18

Cleaning78

20

20

20

20

Com

puter Expenses240

60

60

60

60

Courier &

Postage264

66

66

66

66

Conferences

150

38

38

38

38

Depreciation

1 680

420

420

420

420

Electricity & W

ater660

165

165

165

165

Equipm

ent Hire

480

120

120

120

120

Facilitation & D

ocumentation

350

88

88

88

88

Food & Beverage

30

8

8

8

8

General O

ffice Supplies5

1

1

1

1

H

onorarium1 058

265

265

265

265

Insurance

85

21

21

21

21

Legal Fees75

19

19

19

19

M

embership fees

80

20

20

20

20

Plants & Flow

ers78

20

20

20

20

Printing &

Stationery240

60

60

60

60

Personnel Recruitm

ent Services350

88

88

88

88

Rent Paid

2 383

596

596

596

596

Repairs & M

aintenance36

9

9

9

9

Security

240

60

60

60

60

Staff Training & D

evelopment

680170

170

170

170

Subscriptions - O

ther32

8

8

8

8

Telephone & Fax

540135

135

135

135

Travel &

Accomm

odation450

113

113

113

113

Venue and Catering costs110

28

28

28

28

Website Expenses

18045

45

45

45

-

Surplus/Deficit

-0

-0

0

0

0

2016/17

58

87 Central Street, Houghton, 2198 Tel: +27 11 483 0880; Fax +27 11 483 0881

Email: info@nfvf.co.za ; www.nfvf.co.za

RP29/2016

ISBN: 978-0-621-44266-3