Annual Report - National Government of South Africa

Transcription

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FREEDOM PARK COUNCIL MEMBERS
From Left: Mr II van Niekerk, Mr S Gounden, Mr Nkosana N. Khuzwayo, Prof. EL van Harte,
Dr E M Dikotla, Mr T Ka Plaatji, Dr N Ramndhani (Deputy Chairperson) Mr VB Mchunu
(Chairperson of the Council), Advocate MC Caps Motimela (SC), Ms FD Bogatsu, Dr PM Guma.
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Contents
PART A: GENERAL INFORMATION
1.
2.
3.
4.
5.
6.
7.
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PUBLIC ENTITY’S GENERAL INFORMATION
LIST OF ABBREVIATIONS/ACRONYMS
STRATEGIC OVERVIEW
3.1. Vision
3.2. Mission
3.3. Values
3.4. Strategic Outcome Orientated Goals
LEGISLATIVE AND OTHER MANDATES
ORGANISATIONAL STRUCTURE
FOREWORD BY THE CHAIRPERSON
CHIEF EXECUTIVE OFFICER’S OVERVIEW
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PART B: PERFORMANCE INFORMATION
1.
2.
3.
4.
STATEMENT OF RESPONSIBILITY
FOR PERFORMANCE INFORMATION
AUDITOR’S REPORT: PREDETERMINED OBJECTIVES
OVERVIEW OF FREEDOM PARK’S PERFORMANCE
3.1 Service Delivery Environment
3.2 Organisational Environment
3.3 Key Policy Developments and Legislative Changes
3.4 Strategic Outcome Oriented Goals
PERFORMANCE INFORMATION BY PROGRAMME
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PART C: GOVERNANCE
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2.
3.
4.
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10.
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12.
13.
14.
INTRODUCTION
EXECUTIVE AUTHORITY
THE ACCOUNTING AUTHORITY / COUNCIL
RISK MANAGEMENT
INTERNAL CONTROL UNIT
INTERNAL AUDIT AND AUDIT COMMITTEES
COMPLIANCE WITH LAWS AND REGULATIONS
FRAUD AND CORRUPTION
MINIMISING CONFLICT OF INTEREST
CODE OF CONDUCT
HEALTH, SAFETY AND ENVIRONMENTAL ISSUES
COMPANY / COUNCIL SECRETARY
SOCIAL RESPONSIBILITY
AUDIT COMMITTEE REPORT
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Freedom Park Annual Report 2014/15
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Contents
PART D: HUMAN RESOURCE MANAGEMENT
1. INTRODUCTION
2. HUMAN RESOURCE OVERSIGHT STATISTICS
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PART E: FINANCIAL INFORMATION
1. 2.
3.
4.
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STATEMENT OF RESPONSIBILITY
REPORT OF THE CHIEF EXECUTIVE OFFICER
REPORT OF THE EXTERNAL AUDITOR ANNUAL FINANCIAL STATEMENTS
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PART: A
GENERAL
INFORMATION
REGISTERED NAME:
Freedom Park
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1. FREEDOM PARK’S GENERAL INFORMATION
REGISTRATION NUMBER:
GG No 31443 of 26 September 2008
PHYSICAL ADDRESS:
Cnr Koch and 7th Avenue
Salvokop
Pretoria
POSTAL ADDRESS: PO Box 2710
Pretoria
0001
TELEPHONE NUMBER: 012 336 4000
FAX NUMBER: 012 336 4021
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.freedompark.co.za
EXTERNAL AUDITORS: Auditor General of South Africa BANKERS:
COMPANY SECRETARY:
Nedbank Ntsikelelo Sipeka
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2. LIST OF ABBREVIATIONS/ACRONYMS
ACEO
AGSA
APR
BBBEE
BCOEA
CCMA
CEO
CFO
CRM
CTMM
DAC
DH
DIRCO
EAP
ExCo
GCIS
HSRC
ICT
MANCO
MEC
MINMEC
MoU
LoI
MTEF
NRF
NHC
OHS
PFMA
SABC
SANDF
SCM
SMME
SONA
Acting Chief Executive Officer
Auditor General of South Africa
Annual Performance Report
Broad Based Black Economic Empowerment
Basic Conditions of Employment Act
Commission for Conciliation, Mediation and Arbitration
Chief Executive Officer
Chief Financial Officer
Customer Relations Management
City of Tshwane Metro Municipality
Department of Arts and Culture
Departmental Head
Department of International Relations and Coorporation
Employment Assistance Programme
Executive Committee
Government Information and Communications Services
Human Sciences Research Council
Information Communication Technology
Management Committee
Member of Executive Council
Ministers and Members of the Executive Council
Memorandum of Understanding
Letters of Intent
Medium Term Expenditure Framework
National Research Foundation
National Heritage Council
Occupational Health and Safety
Public Finance Management Act
South African Broadcasting Corporation
South African National Defence Force
Supply Chain Management
Small Medium and Micro Enterprises
State of the Nation Address
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3. STRATEGIC OVERVIEW
3.1Vision
To be a leading national and international icon of humanity and freedom.
3.2
Mission
To provide a pioneering and empowering heritage destination in order to mobilise for reconciliation and nation building
in our country; to reflect upon our past, improving our present and building our future as a united nation; to contribute
continentally and internationally to the formation of better human understanding among nations and peoples.
3.3
Values
In carrying out its mandate, Freedom Park is committed to the following values:
Tolerance of diversity
Inclusivity
Trust
Transparency
Accountability
3.4
Strategic outcome orientated goals
Goal 1:
Goal 2:
Goal 3:
Goal 4:
Goal 5:
Goal 6:
4.
Complete Freedom Park project
Contribute to social cohesion by positioning Freedom Park
Establish mechanisms to promote IKS
Create an environment conducive to attracting talent
Manage Freedom Park
Mobilise institutions through active partnerships
LEGISLATIVE AND OTHER MANDATES
Freedom Park is a Schedule 3A Public Entity in terms of the PFMA.
The mandate of Freedom Park is the creation of a memorial and monument that will narrate a story spanning
a period of 3.6 billion years through the following seven epochs: Earth, Ancestors, Peopling, Resistance &
Colonisation, Industrialisation & Urbanisation, Nationalism & Struggle, Nation Building & Continent Building; as
well as the Garden of Remembrance to acknowledge those that contributed to the freedom of the country.
Freedom Park is governed by inter alia the following legal framework:
The Constitution of the Republic of South Africa, 108 of 1996
Public Finance Management Act, 1 of 1999
National Treasury Regulations
National Heritage Resources Act, 25 of 1999
Public Audit Act, 25 of 2004
Cultural Institutions Act, 119 of 1998 effective from 01 April 2009
The constitutional mandate relevant to Freedom Park includes:
Chapter 1:
Chapter 2:
Chapter 4:
Chapter 9:
Chapter 10:
Chapter 12:
Chapter 13:
Human dignity, citizenship, national anthem, flag and languages.
Bill of Rights
Compliance and adherence to Parliament as the supreme authority.
Schedule 3A Public Entity.
Adhere to basic values and principles governing public administration.
Alignment with the recognition and role of traditional leaders.
Compliance with Treasury Regulations.
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5. FREEDOM PARK ABRIDGED ORGANOGRAM
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6. FOREWORD BY THE CHAIRPERSON
Mr Vusi Mchunu
Chairperson
Freedom Park Council
Introduction
It gives me great pleasure to present the 2014/15 Annual
Report to our principal shareholder, the Department of Arts and
Culture, stakeholders, partners and to fellow south Africans.
The 2014/15 marks an end of a three year tenure of the
Freedom Park Council, that started in turbulence, only
to conclude in relative stability. We are in the process of
handing, an institution well geared for its mandate and
tasks, to a new Council.
Council and Management
The 2014/15 financial year marked an exciting year in
the development of Freedom Park. After weathering
the stormy Freedom Park boat during the 2013/14, the
2014/15 ushered in an era of relative stability, and a
focus on oversight strategic support. My industrious team
comprised Ms FD Bogatsu, Dr EM Dikotla, Mr S Gounden,
Dr PM Guma, Mr T Ka Plaatjie, Nkosana N Khuzwayo,
Adv. Mc Caps Motimele (SC), Dr N Ramdhani (Deputy
Chairperson), Prof EL van Harte, and Mr Ian van Niekerk.
They remain a great inspiration and partners for my
leadership and I owe my profound gratitude to them.
I am deeply humbled by the effort from my winning Council
Team members who took the mandate of Freedom Park to
heart and ensured that the institution is always on a business
growth trajectory. My special thanks go to the Heads of
Departments, Management and Staff of Freedom Park,
who ensured that there were remarkable improvements in
the achievements of targets and an increase in the number
of visitors, growth in revenue collections, during the year
under review. I must mention that working with the Acting Chief Executive
Officer Ms Jane Mufamadi has been a fulfilling experience.
I will always cherish the way how she started and pursued
her acting capacity like a house on fire.
Strategic Relationships
What makes the 2014/15 financial year unique is the
way in which Freedom Park revived its relationships
with stakeholders. Reconnecting with the elders who
conceptualised Freedom Park, including the organic and
academic professors, meant that the institution was not
shy to be put on the spotlight by people who designed
and made the institution into what it is today. Working
with structures like the Parliamentary Portfolio Committee
on Arts and Culture, Names Verifications Committee,
Strategic Committee and Interfaith Committee, confirmed
that Freedom Park continues to recognise and hold high
the collective effort.
During the period under review, key programmes were
implemented in partnership with Robben Island Museum,
The Heritage Foundation, the Free State Provincial
Government, the Mpumalanga Provincial Government,
Metros and Cities of the Province of Gauteng, The
International Youth Group and HWPL headed by Chairman
LEE from South Korea, the African Diaspora connection
with artists from America and the Caribbean Islands. 09
Milestones
Acknowledgement
The launch, by the Minister of Arts and Culture, Mr.
Nathi Mthethwa, of the Freedom Park Book, “Freedom
Park – A Place of Meaning and Emancipation”, is a
singular achievement of the Freedom Park Council and
Management. Praise should also go to the contributors to
this must-collect book.
I want to extend my special appreciation to the Minister of
Arts and Culture, Mr Nathi Mthethwa, MP for his support and
guidance throughout. Freedom Park owes its achievement
to his unwavering commitment and leadership.
A highlight in our African and international dialogues, was
the one with Dr Kenneth Kaunda, the former President of
the Republic of Zambia. He generously donated a unique
set of donations. We also aquired the Vula Connection
equipments from Tim Jenkin. Great institutions are outcomes of vision, expertise, innovation, passion, maintenance, resourcing, perseverance
and partnership with the wider community. We thank South
Africans, the South African Government, our partners in
Africa and the Diaspora and our stakeholders for embracing Freedom Park’s ideals at heart.
Challenges of Sustainability
Freedom Park’s financial sustainability remains a daunting
task to be always put on the radar by any Council. Grants
from national government are dwindling. The main focus
ahead would be to convert stakeholders of Freedom
Park into ardent partners and sponsors of this wonderful
monument. We are building a community of brand loyalists
who would ensure that Freedom Park remains sustainable
and viable. New focus is on marketing, increasing visitor
numbers, conferencing, letting out the facility within
heritage prescripts, and widening the net of corporate
sponsorship. Conclusion
Our dear departed Madiba should be smiling to eternity as
his dream of “A People’s Shrine” is being realised, step by
step and brick by brick.
_________________
Mr Vusi Mchunu
Chairperson
Freedom Park Council
31 July 2015
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7. CHIEF EXECUTIVE OFFICER’S OVERVIEW
Ms Jane Mufamadi
“The great themes of our country… the struggle for
liberation, land and resources – vividly captured – a
magnificent story of how these shaped our social,
economic, political, cultural and historical landscapes.”
President Thabo Mbeki, 2007
It is my pleasure to report on the activities and achievements
of Freedom Park during the past financial year.
Introduction
Freedom Park is national Legacy Project whose mission
is to provide a pioneering and empowering heritage
destination in order to mobilise for reconciliation and nation
building in our country; the core theme embedded in this
mission is the struggle for humanity and freedom, which
symbolises the universality of connections among South
Africans of all backgrounds and all ages – the connections
that are expressed to their fullest through the elements
that constitutes Freedom Park.
The visitor numbers grew steadily from 45 140 (2013/14) to
54 156 (2014/15) during the period under review. In addition
to this; Freedom Park obtained a credible 3 star graded
certificate from the South African Tourism grading Council.
Freedom Park managed to achieve an average of 99%
availability of its ICT systems up-time during the year under
review and implemented the an electronic procurement
systems called the E-workflow system which enabled
submission of procurement motivations electronically whilst the
ticketing point of sale system was implemented successfully
and integrated to RMS (Revenue Management System.
It is about South African voices telling the world who they are,
where they come from, where they are and where they would
like to be. It is about the emancipation of the African voice.
Having said this we are proud to announce an unbroken
record of clean audits for the past four years. However,
when looking back on what we managed to achieve
during the 2014/15, one can only ascribe this to collective
leadership and support from staff.
Performance overview
Research and development
Our revenue receipts from venue hire fees grew by 145%
from R908 330 (2013/14) to R2, 224,579 (2014/15) during
the year under review whilst admission fees grew by 9%
from R964 823 (2013/14) to R1, 048,669 (2014/15) during
the year under review.
Our Research and Development Unit have made
a significant contribution to the achievement of two
organizational goals, namely ‘positioning of Freedom Park
as a symbol of national identity’ and ‘establishment of
mechanisms to promote, protect and preserve Indigenous
Knowledge Systems (IKS). The second major area of
achievement by Research Unit with positive spinoff for the
two organizational goals already mentioned above was
in the production, presentation and publication of high
quantity and quality of opinion pieces and research papers.
The percentage growth on performance targets was
registered at 73% (2014/15) as compared to 65%
(2013/14) the previous financial year. This growth marked
an 8% improvement.
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At the institutional level, the production of IKS informed
opinion pieces and research papers,their presentation in
national and international conferences, their publication
and/or acceptance for publication in various newspapers,
magazines and internationally accredited journals raised
the national and international reputation of Freedom Park.
Six research papers on //hapo epochs and storylines for
permanent exhibitions were completed. Five research
papers were presented at seminars and conferences
during the year under review. The Pan African Archive
unit collected a number of archival materials to bolster
the Archival Collections. There were fourteen dialogues
conducted with key freedom stalwarts including that with
Dr Kenneth Kaunda, the former President of Zambia
during the period under review.
Four temporary exhibitions were conducted namely Ken
Oosterbrook Legacy, Struggle T/Shirt, Mandela Cell and
IK Ben Een Afrikander: The Unequal Conversation. The
Language interpretation including braille was effected in
the seven epochs in //hapo, whilst five Time Travel events
on historic environment education were conducted. All
interfaith sessions with the Interfaith Committee were
successfully held.
Reconciliation and nationbuilding
Reconciliation and Nation building represent one of
the national priorities of our government. The Park is
therefore continuously contributing towards the processes
of reconciliation and nation building from a heritage
perspective by exploring and celebrating the cultural
diversity of the nation. To this end we have embarked on
an extensive programme aimed at promoting reconciliation
and nation building.
•
•
•
reconciliation with previously polarised cultural groups
reconciliation with communities
reconciliation within individuals in terms of identity
Through events like the Storytelling and Khoisan
celebrations, we are acknowledging this individualism,
which undeniably forms part of a larger community, but
has its own specific experiences. Moreover, we are
acknowledging the pain that they have experienced in the
past and honouring the contributions that they have made
to the democracy. Outreach activities featured prominently
As we embark on an extensive roadshow/community
outreach aimed at taking our message of patriotism and
pride in our identity, culture, history and heritage as South
Africans. This is an extremely ambitious endeavour but
one that we believe imperative. Freedom Park is for all
South Africans. Outreach campaigns covered all the
District municipalities of Gauteng namely: City of Tshwane,
Ekurhuleni, Sedibeng, Jo’burg and Mogale City. Ploughing
back to the communities through Social responsibility
projects is also a priority within our Outreach Unit, in
Free State Province, two projects were conducted one
at the Boiketlong Old Age Home and at an Tshireletsong
Orphanage home. Stakeholder relations
As we raise awareness of our work, programmes typically
include commemorative events, festivals, public debate,
and special projects in communities, popular publications,
and media events in conjunction with other government
departments. Measures include monthly newsletters,
quarterly stakeholder’s magazine, staff general meetings,
intranet and website.
•
•
•
•
•
Signing memoranda of understanding with, amongst
others, inbound and outbound tour operators;
including international tour operators form India and
China.
Arranging and hosting consultative seminars in
conjunction with various stakeholder groups
Hosting numerous ceremonies like December 16th
interfaith prayers as well as Freedom Day prayers.
Public awareness was boosted significantly through
the media channels throughout the year under review.
The Park hosted a number of high profile local and
foreign visitors including trade delegations, politicians,
ambassadors and activists viz: Former President of
Ghana His Excellency Mr John Kufuor, Vice Admiral
Sunir Lanba and Defence attaché Capitan Kutt of
India, Ambassador of Russian Ceuebal Bakafoboor,
The First President of the Council of State and of
Ministers of the Republic of Cuba, Mr Miguel DiazCannel Bermudez, Korea’s Chairmen Lee and
Chairwoman Kim. These visits surely are an indication
of the enormous interest that the Park has generated
Looking to the Future
In the new financial year, much of our efforts will be
preoccupied with ensuring the fully functional and
operational Record management System, the completion
and Operation of the Knowledge Centre, the construction
of the permanent gallery of Leaders, the continued
research and inscription of new names on the Wall of
Names, hosting the families of heroes and heroines event
to recognise the role played by families to dedicated their
sons and daughters to the eight conflicts that shaped the
history of our country South Africa.
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Special efforts will be dedicated to increasing visitor
numbers and improving revenue collections. In order
to achieve this attention will be given to the outreach
programme, marketing and promotions and positive brand
building initiatives by maximizing the availability of the
below the line public relations platforms.
Conclusion
In Emerson’s words: “Do not go where the path may lead;
go instead where there is no path and leave a trail.” That is
what we at Freedom Park intend to do.
Acknowledgements /Appreciation
“If your actions inspire others to dream more, learn more,
do more and become more, you are a leader.” – John
Quincy Adams
My efforts to direct Freedom Park to this level wouldn’t
have been possible had it not been the outstanding
leadership of my Council led by its Chairperson Mr Vusi
Mchunu, support from our Minister of Arts and Culture
Mr Nathi Mthethwa and his Deputy minister Ms Rejoice
Mabudafhasi, the Freedom Park staff led by its Union
NEHAWU and the many Freedom Park stakeholders,
partners including ordinary members of the public and
not forgetting our supportive Arts and Culture Portfolio
Committee led by Ms Xoliswa Tom.
_______________
Ms Jane Mufamadi
Freedom Park
31 July 2015
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PART: B
PERFORMANCE
INFORMATION
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1. STATEMENT OF RESPONSIBILITY
Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2015
The Accounting Authority is responsible for the preparation of the public entity’s annual financial statements and for the
judgements made in this information.
The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to
provide reasonable assurance as to the integrity and reliability of the annual financial statements.
In my opinion, the financial statements fairly reflect the operations of the public entity for the financial year ended 31
March 2015.
The external auditors are engaged to express an independent opinion on the AFS of the public entity.
The Annual Financial Statements for the year ended 31 March 2015 have been audited by the external auditors and
their report is presented on page 69
The Annual Financial Statements of the public entity set out on page 73 to page 104 have been approved.
Ms Jane Mufamadi
CHIEF EXECUTIVE OFFICER
Freedom Park
31 July 2015
Mr Vusi Mchunu
CHAIRPERSON OF THE COUNCIL
Freedom Park
31 July 2015
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2. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES
The Auditor General of South Africa (AGSA) performed the necessary audit procedures on the performance information in
order to provide reasonable assurance of performance against predetermined objectives in the form of an audit conclusion.
The audit conclusion is included in the report to management, with material findings being reported under the Predetermined
Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.
Refer to page 69 of the Auditors Report, published as Part E: Financial Information.
3.
OVERVIEW OF FREEDOM PARK’S PERFORMANCE
3.1
Service Delivery Environment
The 2014/15 financial year started off at a higher note and ended as such. There was a relative environment of peace
and stability throughout the year with Staff, Management and Council having forged a path of good working relationships
and focus on service delivery and mutual respect. The atmosphere of openness and listening to each other views made
it easier for Freedom Park to improve on its performance targets and improve its relations with its stakeholders.
Due to its improved relationships with stakeholders, many civil society organisations sought to partner with Freedom
Park in implementing a whole number of activities ranging from projects to promote peace and unity, social cohesion,
reconciliation, nation building, youth empowerment and Indigenous Knowledge Systems.
Challenges
Operational Stability
During February 2015, the Department of Arts and Culture informed Freedom Park that an amount of R8mill and R12mil
operational grant has been reduced from the 2015/16 and 2016/17 financial years respectively. The reduction of this
operational grant poses a greater challenge to Freedom Park’s operational stability and will further put the organisation
into financial dire straits. The cutting of the budget would further exacerbate the infrastructure maintenances challenges,
particularly at a time when the UAMP grant seemed to have ceased. An audit on infrastructure and maintenance
requirements was done and a UAMP was completed and submitted to the department in order to solicit more funds, but
with no additional funds secured.
3.2
Organisational environment
Freedom Park enjoyed an atmosphere of relative peace and stability during the period under review. The Long outstanding labour relations cases were decisively dealt with making it possible to move forward on that front. Key vacant
positions such as those of Company Secretary and the Human Resources Manager were filled The sticky point of organisational restructuring which created lots of tension between staff and management was put on hold. Such a decision
created an atmosphere of relative calm amongst staff members.
3.3
Key policy developments and legislative changes
Apart from implementing a practice note on cost cutting measures, the policy and legislative changes remained by and
large pretty much the same as the previous financial year.
3.4
Strategic Outcome Oriented Goals
Apart from implementing a practice note on cost cutting measures, the policy and legislative changes remained by and
large pretty much the same as the previous financial year.
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Visitor Feet through the gate from April 2014 - March 2015
Comparisons for the past three years
Yearly Visitor numbers
2012/ 13
2013/ 14
2014/ 15
23 425
45 140
54 156
Feet through the gate by source – Yearly Comparisons
Description of Activity
2012/13
2013/14
2014/15
Number of Tours
13 675
16 289
24 319
9750
11 779
9 148
Number of Learners
Number of Events
-
Feet through the gate – Quarterly performance report for 2014/15
Comparisons for the past three years
17 072
20 689
2012/ 13
2013/ 14
2014/ 15
1ST Quarter April – June
7230
6741
11 649
2nd Quarter July – September
7362
9129
18 046
4221
8689
16 952
4612
3509
7509
3rd Quarter October – December
4th QuarterJanuary – March
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Quarterly recorded Customer Satisfaction.
94.2% achieved for 2014/15
Outreach
Conducted outreach programmes in Gauteng’s six regions: City of Tshwane, Ekurhuleni, City of Johannesburg, Mogale City
and Sedibeng district Municipality. Thorough stakeholder consultative sessions were conducted in the Free State Province
resulting in the constitution of the Freedom Park Free State Committee. Initiatives were commenced to start preparations
for Mpumalanga and Limpopo Provinces. Youth initiatives during Youth were conducted with Eldorado Park and Delft Youth
where workshops on drug and substance abuse were conducted.
Marketing and Communication
Marketing and communications efforts were conducted through various channels including but not limited to advertorials on
leading travel magazines, billboards, pole adds, radio and a stakeholder targeted campaign where for the first time Freedom
Park signed several agreements with leading Tour Operating Companies to bring visitors to the Park. There were constant
communications with stakeholders through the stakeholder Newsletter which was disseminated on a quarterly basis
Public Relations
For the first time in its recent history, Freedom Park dominated the media space with positive news consistently throughout
the financial year. Never has Freedom Park been given such media attention and time slot than we received during the
year under review for free or on a below the line basis.
Freedom Park appeared 482 times (24%) on print media, 980 times (49%) on broadcast media and at least 540 times
(27%) on Online media space. This resulted in Freedom Park acquiring the Advertising Value Equivalents (AVEs) (money
that should have been paid if the coverage was to be paid) of at least R71 3m.
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Events
Freedom Park hosted several events including high profile events involving National Departments, Embassies, Provincial
Departments, local municipalities including the Corporate sector. Herewith listed hereunder some of the events hosted
at Freedom Park. • Minister of State Internal Affairs Hon Fredrick Ruhindi Republic of Ugandan.
• 15th August 2014 National Interfaith Thanksgiving ceremony, Minister of Social Development Bathabile Dlamini
• 29th August 2014 DOE principals programme Deputy Minister of Arts & Culture Rejoyce Mabudafhasi • 1st September 2014 Minister of Arts & Culture Mr Nathi Mthethwa launches the Heritage Months celebrations. • 25thJuly 2014: Ubuntu indaba at the Nelson Mandela Foundation Centre of memory about 100 people
• 26thJuly 2014: uBuntu walk with Humanity`s team on site about 500 people
Webmaster
Number of websites visits during the year under review stood at 28767, whilst the average time spent on by website
visitors was registered at 2,6 seconds. Facebook followers grew from a paltry 495 to 5909. Freedom Park was ranked
7/43 on the trip advisor during the year under review. Establish Mechanism to promote IKS
Heritage and Knowledge
Pan African Archives
The work to establish a fully functional Records Management System got underway with remarkable progress made during
the period under review. File cabinets for registry were procured, a temporary registry officer was appointed, all staff was
trained on the filing system and the system was fully tested and reviewed. Against the annual target of four dialogues, at
least 14 dialogues were conducted during the period under review with key individuals including seven archival collections
and thus contributing the building of the Freedom Park Pan African Archives collections. Two temporary exhibitions were
conducted. The Language interpretation including braille effected in the seven epochs in //hapo,
Education
For the second year in a row, the Storytelling festival was successfully hosted during the period under review and thus
drawing participation by local and internal artists and practitioners.
The Freedom Park – Bridging Ages partnership programme has resulted in a variety of public programmes which have
contributed to the achievement of Freedom Park goals. The partnership has been enhanced by the Department of Arts
and Culture joining hands with Bridging Ages to consolidate and ensure achievement by other heritage institutions in
South Africa. Key events achieved by this partnership include the following:
•
•
Local History Time Travel event held at Freedom Park with Jopie Fourie Primary School from Salvokop. The Time
Travel was on local history and it was attended by the Swedish Ambassador’s office. Media coverage on the Time
Travel also included publications in Sweden.
Bridging Ages South Africa Conference held at Freedom Park on 3 – 5 March 2014. The conference was jointly
supported by the Department of Arts and Culture, Freedom Park, and Swedish Ambassador.
Research and Development
•
•
Research on names of heroes and heroines of various historical epochs that shaped South African history and
verification were conducted and the output approved. This output would eventually lead to the inscription and
commemoration of approved names on the Wall of Names.
Production, presentation and publication of high quantity and quality of opinion pieces and research papers was
successfully executed including the production of rigorous peer review reports on opinion pieces, research papers,
biographies, education stories and programmes.
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•
The Content Development Committee (CDC) produced IKS-related content for the Signage Project, the naming
of key elements of the Park as part of the emancipation of the African voice and inscriptions for the reburials of
repatriated remains of the liberation struggle icons, Moses Kotane and J.B. Marks, in support of the Department of
Arts and Culture (DAC).
Create an environment conducive to attracting talent
Freedom Park management built a cordial relationship with its personnel and thus making it easier address all labour
cases at its disposal. Never in the history of Freedom Park were so many labour cases efficiently and successfully
conducted and attended to. Meanwhile the two outstanding vacant senior positions of HR and Company Secretary were
advertised and filled.
Manage Freedom Park
Parks Operations
Park Operations Department is comprised of 33 staff members. The Department has two Units headed by Unit Managers
(Security and Facilities Management). The Department is also responsible for the coordination of the retail and logistical
services. Its activities in general are aimed at ensuring full functionality of all elements of Freedom Park at all times and
providing a safer and enjoyable environment for all the visitors
Security and protocol
Strategic objective
Effective, efficient and economical security services
Freedom Park, as a national asset is visited by high profile persons throughout the year. A number of activities and
events take place making it a very important heritage tourism destination. Most government events are held at Freedom
Park to enhance its importance to the nation and the world. The 2014/10 financial year proved to be a safer year to
Freedom Park and its visitors and stakeholders.
Improved security standards and awareness
There were no major incidents reported and impacted on Freedom Park’s operations and the working Environment.
Whilst there were no major events, the Park managed to enhance its security by reassessing and installing additional
cameras in strategic areas around the site. Routine meetings with the State Security continued to take place throughout
the year. We continued to provide security for all the high profile visits by the Liberation Movements of SADC, Ministers,
ambassadors and high commissioners. State Security Agency has been assisting Freedom Park in reviewing its Security
and OHS policies. The process is continuing to unfold.
In an effort to maintain the standards high, Freedom Park appointed a Security Unit Head and two control room officers.
Security awareness programmes within the Park (with staff members) were implemented during the year under review.
As a performing institution, Freedom Park will continue to do well in ensuring that a safer and enjoyable environment
is provided. Because the current Security Company’s contract is coming to an end in February 2016, a tender will be
advertised for the appointment of the new security services provider in the new financial year.
20
Facilities maintenance:
Strategic objective
Functionality of the elements of the Park
Despite limited infrastructural budget, Freedom Park has worked very hard to ensure that the functionality of all the
elements of the park is not affected. Internal repairs were carried out and where recommendations for future work are
raised, they were integrated into the User-Asset Management Plan of the institution (U-AMP).
Effective Management of Infrastructure Grant
The 2014/15 financial year was not a good one for Freedom Park in terms of the Infrastructure maintenance. After
having planned around the R2m that DAC has committed for the fixing of the landmark reed lights and the extension of
visitor parking, this did not happen after the Department withdrew the grant offer to the Institution.
In moving forward, Freedom Park will revise its U-AMP for future infrastructural requirements and resubmit to DAC. The
Freedom Music that plays around the park will be fixed and realigned to play in all the elements. Rare to find lights in the
park will be replaced by locally manufactured ones. The Wall of names that is damaged in some parts will be fixed. The
screen wall dividing Freedom Park and Salvokop will be constructed.
Retail services
Towards the end of the year, Freedom Park had appointed a service provider to operate retail services (Restaurant,
Coffee shop and Canteen). The service provider has started operating the services in phases.
Information and Communication Technology (ICT)
ICT Department’s mission is to support Freedom Park in achieving its strategic objectives by providing information
management services and support in an effective, efficient and economical approach.
The ICT department adheres to best practice, industry benchmarks and legislature that governs the Information
Communication Technology industry by:
• Increasing the productivity and efficiency of ICT systems;
• Decreasing the functioning costs and saving resources;
• Ensuring that the Information Communication Technology infrastructure is adequate and stable;
• Developing adequate systems and processes for harvesting and dissemination of knowledge and information for
all stakeholders.
• Securing digital information assets internally and externally; and
• Pro-actively managing and supporting Freedom Park’s business requirements.
During the year under review, ICT department achievements include:
• Appointment of a service provider to support and maintain //hapo’s audio visual systems to ensure that the
museum runs smoothly.
• Commissioning of an outright purchase of a PABX system (Switchboard) which will see a good return on
investment as compared to a rental PABX system (Switchboard).
• Roll out of organisation wide roaming Wi-Fi which ensures connectivity throughout the Park thereby enhancing
visitor experience.
• Upgrading of the Disaster Recovery failover Infrastructure to recover critical systems within 30 minutes.
• Implementation and testing of the approved Disaster Recovery Plan
• Implementation of the approved ICT Governance Charter and Framework by Council.
• Approval of the ICT Acquisition Plan for the next 4 years.
• A 99% uptime ICT target was achieved during the period under review against the APP target of 98%.
21
4. PERFORMANCE INFORMATION BY PROGRAMME
2014/2015 Programme Performance
Programme 1
Administration
Purpose
The goal of growing the “Golden Mzansi” economy by the Department of Arts and Culture amongst
others is to quantify the contribution of the heritage sector towards the GDP of the country. It is
the initiative of Freedom Park to promote and protect IKS knowledge and objects for posterity and
through rightful patent of such.
The Administration Programme provides leadership, strategic management and administrative
support to the Freedom Park to ensure a sustainable and financially viable institution which can be
utilized optimally to deliver on its mandate.
Sub-Programme 1.1: Entity Management
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation from
planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Strategic Objective 1.1.1
Systematic, uniform and effective enterprise risk and performance management
Strategic and
annual performance planning
and budgeting as
per prescripts
Achieved
2014/2015 Annual
Performance Plan
submitted to DAC
in time.
MTEF/Strategic
Plan and Annual
Performance Plan
developed and
re-aligned to
ensure relevance
2014/2019 MTEF/
Strategic Plan
submitted to Minister of Arts and
Culture.
Efficient financial and non-financial reporting
Achieved
-
-
-
-
-
MTEF/Strategic
Plan and Annual
Performance Plan
were developed
and submitted to
DAC on 30 January 2015.
Submit programme
performance evaluations to DAC as
per prescripts
Achieved
4 quarterly performance reports
Quarterly perforsubmitted to DAC
mance reports were within 1 month
submitted to DAC
after the end of the
in time.
quarter
Achieved
Increase the percentage achievement of planned
targets (baseline
50%)
-
Achieved
70% of planned
targets achieved
during the financial
period
-
Quarterly performance reports were
submitted to DAC
in time.
73% of planned targets were achieved
by 31 March 2015.
22
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation from
planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Evaluate and assess the effectiveness of Council and its Sub-committees as per shareholders compact
Annual assessment of the
achievement of
Council and its
Sub-committees
as per shareholders compact
Not achieved
An evaluation of
the effectiveness
of Council and the
Sub-committees
of Council as per
shareholders
compact was not
done.
Annual performance evaluation
of Council and its
Sub-committees
as per shareholders compact
Sub-Programme 1.2: Corporate Services
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Achieved
-
-
A self-evaluation
process was
followed. Questionnaires were
drafted and submitted to Council
members for
completion. Actual
Achievement
2014/2015
Deviation from
planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Efficient ICT Services
Percentage of ICT
services available
per quarter as
demanded by the
business
Partially achieved
The average
percentage
availability of ICT
infrastructure
services for the
financial period
was 97%.
98% availability
per quarter of all
ICT services that
are provided
Achieved
-
-
Average of
99% availability
achieved for the
financial year.
Capacitate personnel in improving skills to enable them to execute tasks and improve production
(compliance with legislation, Skills Development Act)
Training plan
aligned to the skills
audit report and
approved by SETA
-
Workplace Skills
Plan (WSP)
developed and
approved
Partially achieved
The WSP was
developed and
submitted to
CATHSETA for
funding.
CATHSETA did not
approve funding
for the WSP.
Freedom Park
does not pay the
skills levy and
therefore does not
qualify for WSP
funding.
CATHSETA
advised that
Freedom Park
should rather apply
for the CATHSETA
grant as it provided
funds for training
as well. 23
Performance
Indicator
Number of personnel trained per
annum
Actual
Achievement
2013/2014
-
Target
2014/2015
100% of planned
training executed
per annum
Actual
Achievement
2014/2015
Not achieved
28% of planned
training was
executed during
the financial year.
Deviation from
planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Difference of 72%
from the planned
target.
Training had to be
scheduled without
the expected
funding from
CATHSETA.
Address past imbalances in the workplace in compliance with legislation (Employment Equity Act)
Percentage of
designated group
members recruited
per annum
-
20% of recruited
staff to be from
designated groups
Achieved
100% of recruited
staff was from the
designated groups.
Target exceeded
by 80%.
Appointments
were largely from
designated groups.
A reviewed organisational structure
was not developed
and approved.
Council decided
to postpone the
organisational
restructuring until
appointment of
the new CEO. This target was
carried forward to
2015/2016.
-
-
Effective and efficient organisational development
Review of the
organisational
structure
-
Reviewed structure aligned to key
performance areas
approved
Not achieved
Phase I of the restructuring process
was completed.
Organisational
restructuring was
put on hold.
Fair and equitable conflict management and discipline
Labour cases
addressed and
finalised (100%
compliance)
Partially achieved
Five disputes were
lodged during the
financial period,
of which two were
resolved. Three
disputes had been
referred to Council
that were not
finalised yet. All labour cases
addressed and
finalised (100%
compliance)
Achieved
All due labour
cases were
finalised. Freedom Park Annual Report 2014/15
24
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation from
planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Job satisfaction through effective Employee Wellness Programme
Number of
employee wellness
cases attended to
by service provider
Achieved
Quarterly statistic
reports on the usage of Careways
services were
submitted to the
HR Committee.
All reported employee wellness
cases attended
to by the service
provider
Sub-Programme 1.3: Office Accommodation
Performance Indicator
Actual Achievement 2013/2014
Target
2014/2015
Achieved
-
-
Quarterly statistic
reports on the
cases attended
to by the service
provider were
submitted to the
HR Committee.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on deviations
Functionality of the elements at the Park
Preventative and
reactive maintenance
Achieved
Reports on general
repairs and
maintenance work
were submitted to
MANCO as part of
the departmental
quarterly reports.
Quarterly reports
on internal
repairs and recommendations
on future
maintenance
projects submitted
for budget
provisions
Achieved
-
-
DAC approval not
granted.
DAC approval not
granted.
Internal repairs
were conducted
and reported. There were no
large scale items
that required additional budgetary
allocations.
Effective management of infrastructure grant
Develop
business plan for
infrastructure grant
annually
-
Annual business plan for
developed and approved by Council
and DAC
Partially achieved
Two infrastructure
business plans
and the User-asset
Management
Plan (U-AMP) for
2015/16 were
developed and
approved by
Council; however
DAC advised that
approval of the
projects was not
granted.
25
Report spending
trends on
-
Target
2014/2015
Quarterly reports
indicating spending trends submitted to Council and
DAC
Not achieved
No expenditure
was incurred.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Expenditure
reports were
not submitted to
Council and DAC.
No funds were
received from
DAC; therefore no
spending trends to
report on.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Sub-Programme 1.4: Security Management
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Effective, efficient and economical security services
Number of
performance
standard
assessments
conducted against
Service Level
Agreement (SLA)
with security
service provider
Achieved
Performance
standard
assessments
were reported to
MANCO as part of
the departmental
quarterly reports.
Performance
standard
assessments
conducted against
SLA with security
service provider
Achieved
-
-
Quarterly
performance
standard
assessment were
conducted and
reported.
26
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Security awareness sessions
were not conducted in the 1st and 4th
quarters.
Security awareness presentations
were given at staff
meetings. No
planned general
staff meeting took
place during the 1st
quarter.
Improved security standards and awareness
Number of security
awareness sessions conducted
for staff
Partially achieved
A security
awareness session
was conducted
during a staff
meeting in July
with regards to
the reporting
procedures for
all health and
safety workplace
accidents.
During the second
half of the year,
the focus was
on analysing the
State Security
Audit Report. An
implementation
plan on State
Security
recommendations
including security
awareness was
developed and
presented to
MANCO.
Quarterly security
awareness sessions conducted
for staff
Partially achieved
Security
awareness
sessions were
conducted for staff
in the 2nd and 3rd
quarters.
In the 4th quarter,
the awareness
presentation given
at MANCO was
discontinued to
allow management
to attend to other
pressing issues.
27
Contribution of the programme to the achievement of Freedom Park’s strategic outcome orientated goals
The strategic objectives of the Administration Programme are aimed to “manage Freedom Park as a customer focused
financially sustainable cultural institution”. Furthermore, the programme is also aimed at “creating an environment
conducive to attract, engage and retain effective and knowledgeable talent”. During the year under review, Freedom Park was managed in such a way that it was incident and accident free with
regard to the safety of its staff members and national and international guests. Park Operations did well in ensuring that
its customers had the best tourism experience by continuously maintaining the infrastructure through the execution of
both reactive and planned maintenance.
Human Resources programmes were directed to ensure that the institution achieved its development oriented objectives. The development and implementation of these programmes emphasised effective compliance to the skills development
and employment equity legislations in a positive labour relations environment.
Strategies to overcome areas of underperformance
Seeing that no funds was allocated by DAC for the implementation of the business plan and the User-Asset Management Plan
(U-AMP) during the financial year, Freedom Park would embark on a process to review and resubmit the business plan and the
U-AMP in the 2015/16 financial year. Park Operations was also expecting to complete the development of a security awareness plan
with the input of State Security for implementation in the 2015/16 financial year.
The review of the organisational structure was deferred to the new financial year to coincide with the appointment of the Chief
Executive Officer. Employee skills development initiatives would be prioritised through individual work plans and performance
agreements, which would be followed and monitored through an annual training plan framework.
28
Programme 2
Business Development
Purpose
Freedom Park as an icon of humanity and freedom seeks to position itself as a symbol of national
identity. In pursuance of its vision, the architecture reflects the African identity. The exhibitions in //
hapo further reflect what binds humanity. It also educates the visitor as it narrates the story from
creation to achievement of democracy and how we contribute to nation and continent building.
Biodiversity, being one of the five categories of IKS, should be adequately documented for
communities to practise and learn. The rural communities being custodians of such knowledge
should be in the forefront in the implementation thereof. Freedom Park sees its role to establish
mechanisms to preserve IKS. Sub-Programme 2.1: Documentation, Assessment, Acquisition, Collections and
Digitization
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Effective public interface
Establish Records
Management
System
Achieved
The file plan was
provisionally
approved by
NARS. Permission
was given for
implementation on
a trial run.
Operationalise
Records
Management
System
Achieved
-
-
The digitisation
system was not
established by 31
March 2015.
The envisaged
timeframe for
installation of
infrastructure could
not be realised
because the partitioning project was
outstanding owing
to delays in quantity surveying of the
whole construction
work. File cabinets for
registry were
procured;
A temporary
registry officer was
appointed; All staff
was trained on the
filing system; and
The system was
reviewed.
The system
was ready for
implementation
from April 2015.
Establish digitisation system
-
Digitisation system
established by 31
March 2015
Not achieved
The study was
completed
and the submission was approved
by the Phase II
Committee.
A service provider
was appointed to
plan the lay-out
of the PAA space. The drawings were
completed but the
equipment and
infrastructure were
not procured and
installed yet.
29
Sub-Programme 2.2: Heritage, Preservation and Conservation Management
Target
2014/2015
Deviation from
planned target to Actual
Achievement for
2014/2015
Maintain and preserve all physical collections, exhibition infrastructure and facilities in //hapo museum
Number of object
and archival
material condition
assessments
completed per
annum
Partially achieved
Object condition
reports were
submitted to
MANCO monthly,
except for the first
quarter.
Number of infrastructure and
facility assessments
conducted in //hapo
per annum
Quarterly object
and archival
material condition
assessments
conducted
-
-
Quarterly
Achieved
infrastructure and
facility assessments Quarterly
of //hapo conducted infrastructure and
facility assessments
of //hapo was
conducted and
reported to
MANCO.
-
Integrated
conservation
management plan
developed
SAHRA did
not approve
the declaration
application
because Freedom
Park did not
meet the cultural
and historical
significance criteria. An appeal process
is in place.
Integrated conservation management plan
Develop integrated
conservation
management plan
-
Achieved
Quarterly object
and archival
material condition
assessments
were conducted
and reported to
MANCO.
Not achieved
A grading meeting
was held with
the South African
Heritage Resources
Agency Grading
Committee
(SAHRA); however
Freedom Park was
not declared as a
heritage site.
The integrated
conservation
management plan
was not developed.
30
Sub-Programme 2.3: Collection Management (including curation and accessioning,
restoration and conservation of collections, also books and articles)
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Create user friendly access to the archiving and collection knowledgebase
Number of archival
collections related
to the 7 epochs
of the exhibition
acquired per
annum
Achieved
Number of
dialogues
conducted per
annum
-
Number of archival
documents and
materials related
to the 7 epochs
of the exhibition
processed
according to
archival standards
per annum
Achieved
Pan African
Archives week
held per annum
Achieved
A total of 3 996
Eric Singh archival
materials were
counted and
accessioned.
A total of 3 996
Eric Singh archival
materials were
counted and
accessioned.
A Pan African
Archives event
was held from 26
to 28 March 2014
at Freedom Park.
5 archival collections acquired per
annum
Achieved
4 dialogues
conducted per
annum
Achieved
1 000 archival
documents and
materials related
to the 7 epochs
of the exhibition
accessioned and
catalogued per
annum
Achieved
Pan African Archives week held
by 30 June 2014
Achieved
7 collections were
acquired.
14 dialogues were
conducted.
2 042 materials
were accessioned
and catalogued.
PAA hosted
the Operation
VULA event
on 22 October
2014 to teach
the public about
the underground
activities of the
liberation struggle.
Target exceeded
by 2 collections.
Previous
endeavours were
realised.
Target exceeded
by 10 dialogues.
A visit to Zambia
afforded more
dialogue
opportunities than
expected.
Target exceeded
by 1 042 materials
accessioned and
catalogued.
The processing
backlog was
reduced to cover
the shortfall from
previous years.
-
The PAA week for
2013 was held in
March 2014, which
was too close to
the next target of
June 2014.
31
Sub-Programme 2.4: Research and Development
Performance
Indicator
Actual Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
500 names were
not inscribed on
the Wall of Names
by 31 March 2015.
Delays with
procurement of a
service provider to
do the inscriptions
were experienced.
The Gallery of
Leaders was not
operationalised
as a fully-fledged
permanent
exhibition by 31
March 2015.
It was decided to
proceed with the
appointment of an
exhibition designer
first before the
appointment of a
service provider to
fabricate and install
the permanent
exhibition.
Liberation struggle
biographies were
not updated on the
touch screens.
All key issues
on the names
database had to
be resolved and
clearly stated to
pave the way for
the appointment of
a service provider.
Integrate the natural and cultural landscape for contemplation, reflection and reconciliation
Number of names
across the 8
conflict areas
inscribed on the
Wall of Names
-
Transform Gallery
of Leaders
from temporary
to permanent
exhibition
Partially achieved
All biographies
of leaders to be
memorialised in the
Gallery of Leaders
were peer-reviewed.
Images and audiovisual material
were sourced. A
gap analysis and
business plan was
completed and the
procurement of a
service provider for
the installation of
the exhibition had
commenced. 500 names across
the 8 conflict areas
inscribed on the
Wall of Names by
31 March 2015
Not achieved
Operation of
Gallery of Leaders
as a fully-fledged
permanent
exhibition by 31
March 2015
Not achieved
No inscription took
place.
The tender
process for the
procurement of a
service provider to
fabricate and install
the exhibition was
completed but no
appointment was
made because the
bidding companies
failed to qualify.
Subsequently
a request for
proposals for the
procurement of an
exhibition designer
was advertised
during March 2015. Biographies of
31 leaders to
be exhibited in
the Gallery of
Leaders were peer
reviewed by the
Quality Assurance
Committee.
Names database
clean-up
Not achieved
The names database
was not accessible
pending the
resolution of a legal
case. An agreement
was reached and
the service provider
delivered the names
database server to
Freedom Park but it
was not deployed.
Interfaced and
coherent names
database and
liberation struggle
biographies on the
touch screens
Not achieved
A motivation and
specifications were
submitted for the
appointment of a
service provider for
the synchronization
and clean-up of the
names database
system and touchscreen platforms. Freedom Park Annual Report 2014/15
32
Performance
Indicator
Actual Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Integrate history, culture and spirituality in a manner that will portray a national identity
Number of
completed
research articles
that integrate
history, culture
and spirituality
for the Garden of
Remembrance
Achieved
Two research papers
were completed (one
on commemoration
of women in the
liberation struggle;
the other on
commemoration
of Steve Biko) and
developed into two
research articles.
Achieved
Four researched
articles were
published in The New
Age and Pretoria
News newspapers:
Honouring Women in
Power;
Biko’s legacy still
resonates if we listen;
Racism Alive & (Un)
Well; and
Protests come with
responsibilities.
Three academic
research papers
were published in the
Oral History Journal
of South Africa:
Riemvasmaak;
Photojournalism; and
Traditional Health.
2 research papers
on the Garden of
Remembrance
completed by 31
March 2015
Achieved
2 publications of
researched articles
completed by 31
March 2015
Achieved
Comment on
deviations
-
-
-
-
2 research papers
on the Garden of
Remembrance
were completed.
2 publications of
researched articles
were completed.
33
Performance
Indicator
Actual Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Continuously educate visitors about cultural, historical and spiritual issues focusing on the national,
continental and international world
Number of
temporary
exhibitions per
annum
Achieved
Three temporary
exhibitions were
completed:
Develop and
display two
temporary
exhibitions
Achieved
-
-
2 temporary
exhibitions were
displayed.
Celebration of the
Mandela Legacy;
Freedom: Human
Trafficking; and
16 days of Activism
against Women and
Child Abuse.
Install and update the seven epochs in //hapo in accordance with IKS standards
Number of frontend evaluation
workshops
annually to
ensure relevance
of permanent
exhibitions
Not achieved
Language
interpretation
including braille
effected in the
seven epochs in //
hapo
Achieved
Front-end evaluations of temporary
exhibitions were not
conducted.
2 front-end
evaluation
workshops for
the permanent
exhibitions
annually
Achieved
Develop language
interpretation
concept including
braille in the seven
epochs in //hapo
by 30 September
2014
Achieved
-
-
-
-
2 front-end
evaluation
workshops were
conducted.
The Content
Committee
evaluated the //hapo
exhibition closeup report received
from the production
manager.
The Audio-system
and language
interpretation
was reviewed by
the South African
Council of the Blind
and the Content
Committee.
Information
received from Blind
SA and DPSA
was consolidated
and re-aligned
with the language
interpretation plan.
34
Performance
Indicator
Actual Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Portray the history of Southern Africa and Africa going back 3.6 billion years
Number of stories
developed to
portray the history
of Southern Africa
and Africa
-
6 stories
developed and
approved per
annum
Partially achieved
17 stories, 4 songs
and 4 poems were
developed.
Approval by the
Quality Assurance
Committee (QAC)
outstanding.
Roadshows and
events such as
the Time Travel
programme
encouraged the
creation of new
songs, poems and
stories.
The approval
process was
delayed due to a
backlog of signage
reviews.
One Storytelling
Festival per annum
Achieved
Number of Time
Travel events
on historic
environment
education
-
A Storytelling
Festival was held
from 10 to 15
March 2014. Three
linked events took
place, namely a
Storytelling Seminar,
the Festival Opening
and the Storytelling
Festival.
Storytelling
festival/week
conducted by 31
March 2015
Achieved
1 Time Travel
event on historic
environment
education
conducted by 30
September 2014
Achieved
-
-
Target exceeded
by 4 Time Travel
events.
DAC and Bridging
Ages International
partnered with
Freedom Park
to conduct more
time travel events.
The events were
co-sponsored by
DAC and Freedom
Park.
The Storytelling
Festival was held
from 6 -14 March
2015.
5 Time Travel
events were held.
35
Performance
Indicator
Number of
research papers
on //hapo epochs
and storylines
for permanent
exhibitions per
annum
Actual Achievement
2013/2014
Achieved
Target
2014/2015
4 distinct research
papers on //hapo
Nine research papers epochs completed
were completed:
by 31 March 2015
Land Restitution in
Riemvasmaak;
Actual
Achievement
2014/2015
Achieved
6 research papers
were completed.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Target exceeded by
2 research papers.
Comment on
deviations
More time was
allowed for
researchers to
focus on fieldwork
and writing of
research papers.
Emancipating the
African Voice through
Photojournalism;
Reclaiming spiritual
space: The use of
sacred spaces by
African traditional
healers;
Intricacies of land
restitution: Social
capital in Mkambati;
Storytelling as a
method for acquiring
mathematic
understanding and
skill;
Museum Storytelling:
//hapo interactive
space case study;
Social cohesion
vs coercion: How
Freedom Park
seeks to unite South
Africans under one
nationalism through
inclusive nationalism;
Using Freedom Park
as an educative
centre within history,
culture and spirituality
in the South African
context; and
The meaning of
reconciliation at
Freedom Park: The
Calvinia experience.
36
Performance
Indicator
Number of
research papers
presented at
seminars and
conferences
attended per
annum
Actual Achievement
2013/2014
Achieved
Nine research
papers were
presented at
conferences:
Target
2014/2015
4 research papers
presented at
seminars and
conferences
attended per
annum
International IKS
Conference in
Johannesburg from
17 to19 April 2013;
Oral History
Conference in
Northern Cape from
8 to 11 October
2013 (three papers);
Actual
Achievement
2014/2015
Achieved
5 research papers
were presented
at seminars and
conferences
attended.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Target exceeded
by 1 research paper presented.
Comment on
deviations
More than one
paper was
presented at two
conferences.
South African
Museum Association
(SAMA) Conference
in Kimberley from 22
to 24 October 2014
(three papers);
Courageous
Conversations
Conference in
Ncome (KZN) from
6 to 8 November
2013; and
IKS Conference
in Pretoria on 26
November 2013.
Ensure that FP remains relevant to its role within the national priorities by using IKS platforms
Number of
Interfaith
Committee
sessions
conducted per
annum
Achieved
Quarterly Interfaith
Committee meetings
were held.
4 Interfaith
Committee
sessions
conducted per
annum
Achieved
4 Interfaith
Committee
sessions were
conducted.
-
-
37
Sub-Programme 2.5: Educational Programmes and Activities
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Mobilise educational institutions to educate learners to engender social cohesion
Number of
educational
programmes
developed and
presented per
annum
-
7 educational
programmes
developed and
presented
Achieved
12 educational
programmes
were developed
and presented
at events and to
learners visiting
Freedom Park.
Target exceeded
by 5 educational
programmes.
Special events
and regular
visits by schools
encouraged the
development of
more educational
programmes.
Contribution of the programme to the achievement of Freedom Park’s strategic outcome orientated goals
The business development programme made a significant contribution to the achievement of two organisational goals,
namely “positioning of Freedom Park as a symbol of national identity” and “establishment of mechanisms to promote,
protect and preserve Indigenous Knowledge Systems (IKS)”.
More specifically, a positive contribution was made in the following two niche areas. The first main area of progress
was in the continual improvement of the Wall of Names – another key element that favourably positions Freedom Park
by drawing national and international visitors to the Park. This was achieved through research on names of heroes and
heroines of various historical epochs that shaped South African history and verification and approval of such research
output for eventual inscription and commemoration on the Wall of Names.
The second major area of achievement of this programme relevant to the abovementioned goals was in the production,
presentation and publication of high quantity and quality of opinion pieces and research papers. At the institutional
level, the production of IKS-informed opinion pieces and research papers, their presentation in national and international
conferences, their publication and/or acceptance for publication in various newspapers, magazines and internationally
accredited journals raised the national and international reputation of Freedom Park. More importantly, the publication
of a book titled “Freedom Park: A Place of Emancipation and Meaning” provided a key measure of research proposed,
conducted and reported at Freedom Park. The maxim of ‘publish or perish’, which encouraged a high quantity and quality
of research output, is in line with the current process for the establishment of a Knowledge Centre at Freedom Park. The Knowledge Centre is intended to take Freedom Park to new heights in ground-breaking research undertakings,
knowledge production and dissemination.
Another area of achievement was in high quality peer reviews and content development by the Quality Assurance
Committee (QAC) and the Content Development Committee (CDC). The achievement relates to the production of
rigorous peer review reports on opinion pieces, research papers, biographies, education stories and programmes. The CDC produced IKS-related content for the Signage Project, the naming of key elements of the Park as part of the
emancipation of the African voice and inscriptions for the reburials of repatriated remains of the liberation struggle icons,
Moses Kotane and J.B. Marks, in support of the Department of Arts and Culture (DAC). These peer review and content
development mechanisms and their outputs enhanced the reputation of the Freedom Park in general as the epicenter
of the historiography of the struggle for freedom and humanity and the custodian of African scholarship in IKS, African
Renaissance, Diaspora and philosophy of Ubuntu (Botho).
38
In compliance to the National Archive and Records Service of South Africa Act (Act 43 of 1996), Freedom Park completed
a File Plan, which was approved by the National Archive and Records Service. In order to ensure effective and efficient
management of records all staff were trained on the file system and all the necessary requirements such as cabinets and
security doors were put in place. The registry system was reviewed and it was ready for implementation.
Nine collections relevant to the //hapo storyline were collected, which included amongst others the ANC Operation
Vula collection, the World War II Uniform, the Eric Singh collection, the Zambian collection, the Kgosi Mampuru prison
collection, TRC books as well as fourteen dialogues on the South African Liberation Struggle of which one was with the
former President of Zambia (His Excellency K.K Kaunda). More dialogues were conducted with George Bizizos, Tim
Jenkin and many others to collect their personal memory with regard to the contribution they made during the Liberation
Struggle. This was done to ensure that the Pan African Archive was indeed practically dialogic and discursive. In
addition, 1 700 liberation struggle archival materials were collected. The condition of all heritage collections and audio-visual exhibition infrastructure were at all times ensured by conducting
quarterly archival collection condition and audio-visual infrastructure assessments to identify conservation risks and
intervention thereof where necessary. All objects and archival materials were found to be in good state.
Three exhibitions were mounted, namely the Freedom Mandela 27 years exhibition, the Freedom and Struggle T-shirt
exhibition and the Ken Oosterbroek legacy photographic exhibition. This was in response to Freedom Park’s mandate
that requires the organisation to challenge visitors by reflecting on the country’s past, improving the present and building
the future. The exhibitions focused mainly on history, especially the liberation struggle.
In responding and addressing the strategic goal “to establish mechanisms to promote IKS” the Freedom Park
International Storytelling Festival is organised annually. This financial year’s festival themed, “Ungasali” took place from
07 to 14 March 2015. The programme included experienced South African Storytellers such as Mam Gcina Mhlophe
and Majesty Mnyandu, as well as international storytellers such as Baba Jamal and Amina Blackwood. Media coverage
for the event was impactful and included interviews with radio stations such as Power FM and others. The festival had
a rich programme with a variety of outcomes which included the following:
•
Media launch;
•
Storytelling Training Workshop;
•
Seminar on Storytelling;
•
Outreach programme to prisons; and
•
A Storytelling Festival which commenced with a carnival.
In responding to the organisational goal “to mobilise educational institutions to educate learners to engender social
cohesion”, the strategic partnership with Bridging Ages International which is based in Kalmars, Sweden utilised the
Time Travel methodology to address amongst others, the issue of social cohesion. The Freedom Park – Bridging Ages
partnership programme resulted in a variety of public programmes which contributed to the achievement of Freedom
Park goals. The partnership was enhanced by the Department of Arts and Culture joining hands with Bridging Ages
to consolidate and ensure achievement by other heritage institutions in South Africa. Key events achieved by this
partnership included the following:
•
•
Attendance by the Education Manager of the Bridging Ages International conference held in Kenya from 25 to 30
August 2014. The conference with the theme “Education, Heritage and Community Building” and organised by
Bridging Ages Northern Kenya (BANK) resulted in important discussions and recommendations on how Time Travel
could contribute to education and community building.
Local History Time Travel event held at Freedom Park with Jopie Fourie Primary School from Salvokop. The Time
Travel was on local history and it was attended by the Swedish Ambassador’s office. Media coverage on the Time
Travel also included publications in Sweden.
39
•
Bridging Ages South Africa Conference held at Freedom Park from 03 to 05 March 2014. The conference was jointly
supported by the Department of Arts and Culture, Freedom Park, and the Swedish Ambassador. Freedom Park
benefited through media coverage which included studio presence in SABC 2 – Morning Live. The conference’s
keynote address was presented by the Deputy Minister of Arts and Culture, Ms R Mabudafhasi who expressed
wholehearted support for Bridging Ages and Time Travel. The conference ended with an annual general meeting
for Bridging Ages South Africa and the election of the Freedom Park Education Manager as the Chairperson of
Bridging Ages South Africa. It was decided that a South African DAC delegation should go to Sweden to consolidate
partnership agreements on Arts and Culture.
The Swedish Ambassador had shown increased interest and support for Bridging Ages and Time Travel events. Reception events organised and funded by the Swedish Ambassador’s office enhanced the quality of Bridging Ages
South Africa programmes held.
In furtherance of the same objective of mobilising educational institutions to educate learners to engender social
cohesion, the Education Unit developed and presented educational programmes aimed at a variety of educational
publics including scholars, university students, etc.
Strategies to overcome areas of underperformance
One area of underperformance was in the transformation of the Gallery of Leaders from temporary to permanent
exhibition. The mitigating strategy would be the appointment of an exhibition designer to be responsible for processes
of design, fabrication and installation of the permanent exhibition in accordance with Freedom Park specifications.
The other area of underperformance was with data clean-up of the Names Database System. The proposed strategy
to address the challenge would be the procurement of a service provider to revamp the Names Database System and
re-open access to the system to enable the process of cleaning-up data of liberation struggle biographies. Subsequent
to that, more names would be inscribed on the Wall of Names.
Furthermore, the Integrated Conservation Plan, a tool required to protect the cultural significance of Freedom Park would
be developed in the new financial year pending approval of Grade I status by the South African Heritage Resources
Agency.
40
Sub-Programme 3.1: Local and International Partnerships
Performance
Indicator
Actual Achievement
2013/2014
Target
2014/2015
Actual Achievement
2014/2015
Deviation from
planned target to
Actual Achievement
for 2014/2015
Comment on
deviations
Target exceeded
by 1 MOU/letter of
intent.
An opportunity
with Blue Train
presented itself
which could not be
missed.
Mobilise institutions through active partnerships with national, continental and international institutions to
emancipate the African voice
Number of signed
agreements
(MOUs) with
national and
continental
institutions per
annum
Achieved
A number of
eleven MOAs
were signed and
implemented
with the following
institutions and
individuals during
the financial
period:
Prof Kotze;
Hantam
Municipality;
Institute for Justice
and Reconciliation
(IJR);
Institute for
Healing of
Memories (Fr
Lapsley);
Book writing
contributors;
Fusion Worx;
Switzerland
Embassy;
Rev Chikane;
Adv Julialynne
Walker;
Plan Art Studio
(Dr Jean Marie
Jullienne; and
Erfenisstigting.
6 signed MOUs
with national
and continental
institutions per
annum
Achieved
7 MOUs/letters of
intent were signed.
41
Performance
Indicator
Number of
national, provincial
and local public
institutions
mobilised to
partner with
Freedom Park
Actual Achievement
2013/2014
-
Target
2014/2015
Mobilise 2 national
institutions,
2 provincial
institutions and 2
municipalities to
support Freedom
Park programmes
Actual Achievement
2014/2015
Deviation from
planned target to
Actual Achievement
for 2014/2015
Achieved
Target exceeded
by 2 national
institutions,
2 provincial
institutions and
6 municipalities
mobilised to
partner with
Freedom Park.
The Roadshow
programme
opened a host
of avenues for
partnerships with
Municipalities.
-
-
-
-
Project plans
were developed
for partnerships
with 3 national
institutions,
3 provincial
institutions and 7
municipalities.
Comment on
deviations
Partnerships were
Implemented
with 1 national
institution,
1 provincial
institution and 1
municipality.
Number of
partnerships
established
with civil society
organisations
such as NPOs and
NGOs
-
Advocacy and
lobbying of the
NCOP and political
parties
Achieved
Advocacy and
lobbying of the
NCOP was
implemented as
part of the Calvinia
project where buyin was sought from
political parties
and Parliament
into the project.
Establish
partnerships with
4 civil society
organisations
such as NPOs and
NGOs to enhance
Freedom Park
objectives and
programmes
Achieved
Two parliamentary
stakeholder
engagements
implemented per
annum
Achieved
4 partnerships
with civil society
organisations were
implemented.
2 parliamentary
stakeholder
engagements were
implemented.
A delegation
comprising Council
Members and
Senior Managers
was taken to Parliament to present
the Annual Report
to the DAC Portfolio Committee in
October 2013.
42
Sub-Programme 3.2: Outreach
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Advocate for nation building and social cohesion by servicing major stakeholders
Number of
institutions of
higher learning
mobilised to visit
Freedom Park -
Number of
schools mobilised
nationwide to visit
Freedom Park
-
Number of
corporate social
responsibility
projects
implemented
-
10 institutions of
higher learning to
visit Freedom Park Achieved
200 schools
nationwide to visit
Freedom Park
Partially achieved
2 corporate social
responsibility
projects
implemented
Achieved
31 institutions of
higher learning
visited Freedom
Park.
103 schools
nationwide visited
Freedom Park.
Target exceeded
by 21 institutions.
Institutions of
higher learning
were attracted to
Freedom Park due
to the high level of
content displayed
at Freedom Park. Difference of 97
school visits from
the planned target.
Schools
complained about
high admission
fees. Admission
fees were
therefore reduced.
-
-
2 corporate social
responsibility
projects were
implemented.
Sub-Programme 3.3: Events Management (including cultural and commemorative events)
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Grow revenue base and leverage on events
Number of corporate companies recruited to conduct
paid for events at
Freedom Park on
a higher premium
basis
-
30 corporate
companies
recruited to
conduct paid for
events at Freedom
Park on a higher
premium basis
Achieved
31 corporate
events were held
at Freedom Park.
Target exceeded
by 1 corporate
event.
Additional revenue
sourced from
venue hiring.
43
Performance
Indicator
Number of events
as per target
groups for national
holidays at
Freedom Park
Actual
Achievement
2013/2014
Partially achieved
Events for five
national holidays
were held at
Freedom Park
where women,
youth and religious
groupings were
mobilised to
attend:
Target
2014/2015
Actual
Achievement
2014/2015
6 events as per
target groups for
national holidays
held at FP per
annum
Achieved
4 events in
partnership with
civil society
conducted
Achieved
R4 million raised
annually
Not achieved
7 events for
national holidays
were held.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Target exceeded
by 1 event.
More institutions
were partnering
with Freedom
Park in celebrating
national holiday
events, which
was good for the
Freedom Park
brand.
Target exceeded by
1 event.
More civil society
organisations are
partnering with
Freedom Park,
which is good for
the Freedom Park
brand.
R4 million not
raised.
Staffing issues
and poor planning
impacted on the
functioning of the
unit.
Freedom Day;
Youth Day;
Women’s Day;
Heritage Day; and
Day of
Reconciliation.
Number of
partnership events
with civil society
conducted -
Resource
mobilisation
(including
fundraising)
Partially achieved
A Resource
Mobilisation
Strategy was
drafted.
5 events in
partnership with
civil society were
conducted.
No funds were
raised during
the period under
review.
Sub-Programme 3.4: Guest Relations (Hospitality Management)
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Improve customer service
High quality visitor
experience offered
to all visitors
-
-
90% customer
satisfaction
Achieved
Obtain grading
certificate from SA
Grading Council
Achieved
94.2% customer
satisfaction was
recorded.
Target exceeded
by 4.2%.
-
-
-
Freedom Park
obtained a 3-star
grading level.
44
Performance
Indicator
Actual
Achievement
2013/2014
-
Number of Heads
of State and VIP
visits hosted
-
Target
2014/2015
Actual
Achievement
2014/2015
All Freedom Park
Tour Guides accredited
Achieved
24 Heads of State
and VIP visits
hosted
Achieved
Deviation
from planned
target to Actual
Achievement for
2014/2015
-
-
Target exceeded
by 12 visits.
VIP visits would
enhance Freedom
Park’s profile
on national,
continental and
international
platforms.
All Freedom Park
Tour Guides were
accredited (i.e. 4
Tour Guides).
36 Heads of State
and VIP visitors
were hosted.
Sub-Programme 3.5: Marketing, Communication & Media Liaison
Performance
Indicator
Actual
Achievement
2013/2014
Target
2014/2015
Comment on
deviations
Actual
Achievement
2014/2015
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Increase visitor numbers
Number of tourist
arrivals increased
Partially achieved
Number of
international/
domestic trade
and marketing
platforms shared
Achieved
There was a total
number of
45 140 visitors
at Freedom Park
period.
Ten community
gatherings and
road shows
targeting amongst
others, religious
groupings and
youth were
held; and nine
exhibitions were
conducted.
Increase visitor
numbers to 89 000
Partially achieved
Participate in
2 international
trade platforms
and 6 domestic
marketing
platforms
Achieved
54 156 tourist
arrivals.
(Numbers through
the gate).
Participated in
2 international
trade platforms
and 6 domestic
marketing
platforms.
Target not
achieved by
34 844 visitors.
Marketing efforts
did not achieve the
desired results.
-
-
45
Performance
Indicator
Number of
marketing
materials
disseminated to
target groups
Actual
Achievement
2013/2014
Achieved
The following
information
literature was reprinted:
A5 flyers;
z-folded self-guided brochures; and
Venue hire brochures.
Target
2014/2015
10 000
e-marketing and
print materials
disseminated to
target groups
Actual
Achievement
2014/2015
Achieved
62 012 marketing
materials were
disseminated
to various
stakeholders.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Target exceeded
by 52 012
marketing
materials
disseminated.
Comment on
deviations
More materials
were disseminated
during the
roadshow, events,
exhibitions and
the outreach
programme in an
attempt to increase
visitor numbers.
46
Performance
Indicator
Number of
partnerships with
tour operators
concluded
Actual
Achievement
2013/2014
Achieved
Freedom Park
participated
in seven joint
initiatives with
tourism bodies
period:
SA Tourism Indaba
in May 2013.
GTA round table
discussion about
the ‘Attract Brands’
in Gauteng in June
2013.
Collaborative
session with tourist
guides in partnership with Voortrekker Monument in
July 2013.
Workshop with
tour operators in
partnership with
Tshwane Tourism
in September
2013.
Tshwamazing
Race event in
partnership with
Tshwane Tourism
in November 2013.
Hosted the Sansui
event in collaboration with GTA Tourism in November
2013.
Workshop with
the Guest House
Association in the
Tshwane Area
(GATE) in February 2014.
Target
2014/2015
Signed
agreements
with 2 leading
tour operators
to incorporate
Freedom Park in
their tours
Actual
Achievement
2014/2015
Achieved
4 agreements with
tour operators
were signed.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Target exceeded
by 2 signed
agreements.
Comment on
deviations
More agreements
were signed in an
attempt to increase
visitor numbers.
47
Performance
Indicator
Number of abovethe -line marketing
advertisements
activated
Actual
Achievement
2013/2014
-
-
Achieved
A total of
seven paid for
advertisements
were placed in
magazines:
Target
2014/2015
Actual
Achievement
2014/2015
3 billboard
advertisements
placed
Not achieved
2 electronic media
partnerships
activated
Achieved
6 paid for publications Achieved
10 000 audience
reached and 1 000
converted to being
Freedom Park
guests
Partially achieved
4 newsletters
for the public
produced and
disseminated
Achieved
1 billboard and
two sets of pole
ads were placed in
Tshwane.
6 electronic media
partnerships were
activated.
8 paid for
publications were
placed.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Difference of
2 billboard
advertisements not
placed.
The billboards
were more costly
than anticipated
during budgeting
and the placement
of the remaining
billboards was
abandoned.
Target exceeded
by 4 partnerships
activated.
Radio media
coverage is
governed by the
advent of events.
Target exceeded
by 6 paid for
publications.
Additional
advertisements
were placed
to optimise the
profiling and brand
positioning of
Freedom Park.
Target exceeded
by 18 424
audience reached.
Freedom Park
was becoming
a popular social
media platform;
however the
methodology
to measure
conversion was yet
to be implemented.
Explore (two
editions); Inspire
SA (three editions);
The Leadership;
and
Equinox.
Number of the
target market
reached and
converted through
digital/e-marketing
Not achieved
Number of
stakeholder
newsletters
produced and
disseminated
-
Website links
with tourism
bodies were not
established.
28 424 audience
were reached
on social media
networks.
1 000 audience not
converted to being
Freedom Park
guests.
-
-
4 public
newsletters were
produced and
disseminated.
48
Performance
Indicator
Actual
Achievement
2013/2014
Number of
occurrences of
media coverage
for events and
activities managed
by Freedom Park
Achieved
Number of media
releases published
Achieved
Number of news
feeds on the
website and social
media networks
Partially achieved
Freedom Park
received coverage
through SABC
Television, radio
shows and
newspapers with
regards to the
celebration of five
national holidays
held at Freedom
Park.
Media releases
were issued to the
print and electronic
media for the
celebration of five
national holidays
held at Freedom
Park.
Content status
reports were
submitted to
MANCO as part
of the monthly
departmental
reports, except for
the period from
October 2013 to
January 2014.
Target
2014/2015
Actual
Achievement
2014/2015
200 occurrences
of media coverage
for events and
activities managed
by Freedom Park
Achieved
36 media releases
published
Partially achieved
12 news feeds
on the website
and social media
networks
Achieved
714 media
occurrences
were registered
for Freedom
Park events and
activities.
21 media releases
were published.
100 news feeds
were made on the
website and social
media networks.
Deviation
from planned
target to Actual
Achievement for
2014/2015
Comment on
deviations
Target exceeded
by 514
occurrences of
media coverage.
The prime nature
of the events
covered attracted
more media
attention.
15 media releases
not published.
The publication of
media releases are
governed by the
advent of events.
Target exceeded
by 72 news feeds.
There were
numerous
opportunities to
flight news feeds
on social media
and the website.
49
Contribution of the programme to the achievement of Freedom Park’s strategic outcomes orientated goals
The strategic objectives of the Public Engagement Programme are primarily guided by two entity goals namely:
“positioning of Freedom Park as a symbol of national identity” and “mobilise institutions through active partnerships”. The effort to claim Freedom Park as a symbol of national identity took off through special campaigns and roadshows
under the theme: “Your visit an honour to our liberation heroes and heroines”. This campaign saw Freedom Park taking
its message throughout all the regions of Gauteng Province and Free State Province with plans ready to roll out through
all nine provinces. The campaign was weaved into billboards, pole adds and marshalled through community and
national radio stations, television and social media channels.
Through this campaign Freedom Park attracted lots of partnerships and collaborative efforts with national institutions
to drive the message of nation building, social cohesion and national reconciliation. Such partnerships included
collaboration with the Independent Electoral Commission to pray for peaceful national and provincial elections during
May 2014; the commemoration of the SADF Wall of Remembrance in partnership with Die Erfenisstigting and all the
former liberation movements to promote national reconciliation; as well as collaboration with Ubuntu Conscious South
Africa to promote national unity through an annual Ubuntu Walk event.
In order to take the message of Freedom Park to the children of South Africa, Freedom Park partnered with the Department
of Basic Education, commencing with implementation of collaborative programmes with the Gauteng Department of
Education where a number of partnership events where held at Freedom Park. Similarly, Freedom Park mobilised
institutions of higher learning which resulted in an upswing in the number of such institutions visiting Freedom Park. For the first time in its founding history, Freedom Park signed agreements with tour operators to bring their guests to
Freedom Park and include Freedom Park in their itinerary. Strategies to overcome areas of underperformance
During the 2014/15 financial year, the public engagement programme registered a few areas of underperformance that
would be addressed through the following strategies:
•
Continue efforts to position Freedom Park as a national liberation heritage monument with national campaigns and
roadshows throughout South Africa to address the low visitor numbers.
•
Adjust the fees for learners, students, adults and the overseas market and establish a single fee structure for the
entire destination to make Freedom Park more affordable and accessible.
•
Partner with tour operators to increase visitor numbers.
•
Appoint firms, individuals or Freedom Park ambassadors to assist with fundraising efforts on a commission based
approach.
•
Raise the brand profile of Freedom Park through below-the-line marketing efforts by frequently issuing media releases
to feature Freedom Park in newspapers and radio programmes, publishing opinion pieces in leading newspapers
and publications and advertising Freedom Park in leading travel guides and publications. Freedom Park Annual Report 2014/15
50
PART: A
GOVERNANCE
51
1.INTRODUCTION
Corporate Governance embodies processes and systems by which public entities are directed, controlled and held to
account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act,
corporate governance with regard to public entity’s is applied through the precepts of the Public Finance Management
Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.
Parliament, the Executive and the Accounting Authority of Freedom Park are responsible for Corporate Governance.
2. EXECUTIVE AUTHORITY
The following reports were submitted to the Executive Authority: Submit final Quarterly Report to Department for 2013/14 financial year
Submit signed AFS for 2013/14 and management reports to Treasury and Auditor- General/
External auditor for 2013/14 & Submit list of all banking accounts to Treasury & Submit Annual
Report performance measurement details to Auditor-General
Submit signed Treasury AFS Template to Treasury (unaudited)
First Quarterly Report to Department for 2013/14 financial year:
Audit Report issued for 2013/14 & Audited financial statements to Treasury for 2013/14 and
Final AFS consolidation template (Reviewed by AG/Auditors) Submit 1st draft Annual Performance Plan to Dept. for 2014/15
Second Quarterly Report to Department for 2013/14 & Audit Outcomes Improvement Plans
Submit 2nd Annual Performance Plan for 2015/16
Submit final Annual Performance Plan to Dept. for 2014/15 & Submit third quarterly Report to
Department for 2013/14 financial year & Audit Outcomes Plans
1st Draft Shareholder’s Compact
Table final APP for 2014/15 in Parliament & Submit the Final Shareholders Compact
30 April 2015
31 May 2015
31 May 2015
30 July 2014
31 July 2014
31 August 2014
30 October 2014
15 December 2014
30 January 2015
15 February 2015
15 February 2015
3. THE ACCOUNTING AUTHORITY / COUNCIL
Introduction
The Public Finance Management Act of 1999 requires that the Council Members exercise the duty of utmost care to
ensure reasonable protection of the assets and records of the Freedom Park. They must act with fidelity, honesty,
integrity and in the best interests of the Freedom Park in managing the financial affairs of the Freedom Park. They must
furthermore be able to disclose on request from the Department of Arts and Culture all material facts, including those
reasonably discoverable, which in any way may influence the decisions or actions of the Department.
The role of the Council is as follows:
The Council is ultimately accountable and responsible for the performance and affairs of the Freedom Park and the
Council has responsibility in the following areas:
• Strategic Role
• Determination of Policy and Procedures and Levels of Materiality to ensure the Integrity of the Freedom
• Park’s Risk Management and Internal Controls
• Monitoring of Operational Performance and Management
52
Member
10
Apr
2014
17 Apr 29 Apr
2014
2014
29
May
2014
30
July
2014
31
July
2014
1 Aug
2014
28
Aug
2014
29
Oct
2014
3 Dec
2014
4 Dec
2014
28
Jan
2015
26
Feb
2015
Ms FD Bogatsu
√
√
√
√
√
√
√
X
√
√
√
√
√
Dr EM Dikotla
X
√
√
√
√
√
√
√
√
√
√
√
√
Mr S Gounden
√
X
X
√
√
√
√
X
√
√
√
√
√
Dr PM Guma
√
√
√
√
√
X
√
√
X
√
√
√
√
Mr T ka Plaatjie
X
X
√
X
X
X
X
√
√
X
√
X
√
Prince N
Khuzwayo
√
√
√
√
√
√
√
√
√
√
√
√
√
Mr VB Mchunu
√
√
√
√
√
√
√
√
√
X
X
√
X
Adv Mc Caps
Motimele (SC)
X
X
√
√
√
X
√
√
√
√
√
X
√
Dr N Ramdhani
√
X
√
√
√
√
X
X
√
X
√
√
√
Prof EL van Harte
X
X
X
√
√
√
√
√
√
X
X
X
√
Mr II van Niekerk
√
√
√
√
√
√
√
√
√
√
√
√
√
•
•
Chairperson / Council Member Orientation / Induction and Succession Planning
Conflict of Interest and Independence
Council Charter
The Council Charter is in accordance to the Public Finance Management Act (PFMA) and run in tandem with the
principles contained in the King’s Report on Corporate Governance. Compliance to the Charter is handled effectively
and transparently.
Composition of the Council and meetings attended
Council Members were appointed on the 1st June 2012 and there are no outgoing Council members;
53
Committees
Committee
No of Meetings held
No of members
Name of members
Audit Committee
6
2 Council Members and 2
additional members
Mr II van Niekerk
Mr S Gounden
Mr S Tibini
Mr P Fourie
Bid Adjudication Committee
4
1 Council Member plus 3
additional Members
Finance Committee
2
2 Council members plus 3
additional members
Dr PM Guma
Procurement Officer
HR & Remuneration Committee
4
2 Council members plus 4
additional members
Phase II Committee
5
3 Council Members
Ethics Committee
7
4 Council Members plus 4
additional members
Mr T ka Plaatjie
Ms FD Bogatsu
Dr EM Dikotla
Dr N Ramdhani
Chief Financial Officer DH:
Human Resources
Prof E van Harte
Prince N Khuzwayo
Dr M Guma
Adv Mc Caps Motimele (SC)
Prof E van Harte
Mr T ka Plaatjie
Mr I van Niekerk
Company Secretary
Remuneration of council members
•
•
•
Remuneration of Council Members is determined by National Treasury Service benefit Packages for Office Bearers
of certain Statutory institutions.
One member was deemed a government official and was therefore not remunirated for meetings attended.
Travel expenses are paid according to the Department of Transport Rates, reimbursed by Freedom Park.
54
The following remuneration was paid to each Council Member:
Members
Total Remuneration for Member
Total Travel
GRAND TOTAL
Bogatsu, D
83 818,00
11065,74
94 883,74
Dikotla, EM
98 688,00
12053,76
110 741,76
Gounden, S
53 674,00
10147,52
63 821,52
Guma, PM
111 688,00
1050,00
112 738,00
Khuzwayo, N (Prince)
89 184,00
0
89 184,00
Mchunu, VD
80 448,00
3998,00
84 446,00
Motimela, AM
80 352,00
16419,44
96 771,44
Plaatjie, T
35 072,00
17591,20
52 663,20
Ramdhani, N
64 649,00
2146,93
66 795,93
van Harte, EL
- 0,00
- van Niekerk, II
103 665,00
Total for Month
7121,96
801 238,00
110 786,96
81594,55
882 832,55
4. RISK MANAGEMENT
The Council is ultimately accountable for the governance of risk management within the group and for ensuring compliance
with all applicable legislation and regulations. Management is responsible for the integration of the risks identified.
A Risk Committee was established during the Financial Year to:
• Communicate the Freedom Park’s strategic intent with regards to the role of risk management in achieving business
objectives and in aligning with principles of good governance;
• Formalise the enterprise wide risk management approach to be followed with regards to risk management within the
Freedom Park;
• Outline different governance structures and their role in enterprise-wide risks management;
• Outline key stakeholder roles and responsibilities in managing risks.
• Assists management in determining the Freedom Park’s appetite and tolerance for risk and to communicate this
throughout the organisation.
Nature of risk management:
The Institution makes use of a risk management program (Cura), to facilitate the timeous identification, measurement,
analysis and evaluation of risks. Each department is required to update the risk management program on a monthly
basis, together with an up-to-date risk detailing, quantifying and prioritising risks, and containing details of plans and
actions, both to mitigate risks and to exploit opportunities. The effectiveness of controls to manage the risks identified is
evaluated by the Deputy Chief Executive Officer, internal audit and is formally reported to the Audit Committee.
5. INTERNAL CONTROL UNIT
Freedom Park maintained internal controls and systems designed to provide reasonable assurance about the integrity
and reliability of the financial statements and adequately safeguard, verify and maintain accountability for its assets.
Such controls were based on established policies and procedures and implemented with the appropriate segregation
of duties. The internal audit function operated under the direction of the Audit Committee, which approve the scope of
work to be performed. Freedom Park Annual Report 2014/15
55
6. INTERNAL AUDIT AND AUDIT COMMITTEES
Internal audit is an element of the internal control framework established by the Council to examine, evaluate and report on
accounting and other controls on operations. Internal audit assists the Council in the effective discharge of its responsibilities
and functions by examining and evaluating controls. The objectives of internal audit include promoting effective control at
reasonable cost and assisting the Council generally in the pursuit of value for money.
The internal audit generally entails:
• review of information systems and related internal controls;
• examination of financial and operating information for management;
• review of the economy, efficiency and effectiveness of operations and of the functioning of non-financial indicators
and controls in this regard;
• review of the implementation of corporate policies, plans and procedures;
• special investigations.
• The audits comprise of planning, execution, reporting, risk assessment;
• The audit programmes and working papers are approved by Freedom Park before audits commence;
• Liaise with the external auditors to reduce the scope of work.
Key activities and objectives of the audit committee
In terms of the Public Finance Management Act the Council have to comply with the compulsory establishment of an
effective internal audit function, and an Audit Committee to monitor the scope and effectiveness of the internal audit
function in an entity. The purpose of the Committee is to assist management in fulfilling its oversight responsibilities for the system of internal
control and risk management, the audit process, and Freedom Park’s process for monitoring compliance with all applicable
legal requirements and accounting standards. Functions of the Audit Committee are inter alia as follows:
1. Responsibilities related to , compliance and internal control
2. Responsibilities related to the Internal Audit Function
3. Responsibilities related to the external audit function
4. Responsibilities relating to risk
5. Responsibilities related to the Annual Financial Statements
Attendance of audit committee meetings by audit committee members :
Audit Committee Meetings
Member
23 Apr 2014
27 May 2014
28 July 2014
20 Oct 2014
2 Dec 2014
26 Jan 2015
Mr I van Niekerk
√
√
√
√
√
√
Mr S Gounden
X
X
√
√
X
√
Mr P Fourie
√
√
√
Mr S Tibini
√
X
√
X
√
X
√
√
√
56
7. COMPLIANCE WITH LAWS AND REGULATIONS
To ensure compliance with all relevant legislation, policies and procedures
• Through monitoring the compliance within the organisation.
• Providing training, advising and providing guidance. Training on: Contract Management, Cultural Institutions Act
and Good Governance.
• Ensure the effective, efficient and economical implementation of organisational strategies and policies in accordance
with relevant legislation and policies.
• To draft and advise on policies as well as compiling manuals and procedural guidelines to ensure good governance.
• To provide guidance and advice within the organisation on matters of ethics, good governance, compliance and
legal matters in order to promote compliance and good governance.
• Ensuring all applicable Statutory Registers is in place and updated.
• Review and updating authority Structure and Terms of Reference of said structure
• Communicate Key Statutory Deadlines timeously to Council, Committees of Council and Management
• Review and update delegations of authority of the Institution.
• Ensuring the availability of well researched legal opinions and advice.
• Management, through the Institution’s Attorneys of litigation by and against Freedom Park
8. FRAUD AND CORRUPTION
The Fraud Policy of Freedom Park is zero tolerance to fraud and corruption. In addition, all fraud and corruption allegations
will be investigated and followed up by the application of all remedies available within the full extent of the law and the
implementation of appropriate prevention and detection controls. These prevention controls include the existing financial
and other controls and checking mechanisms as prescribed in the systems, policies and procedures of Freedom Park.
The efficient application of Treasury Regulations issued in terms of the PFMA instructions contained in the policies
and procedures of Freedom Park, is one of the most important duties to be applied by every employee in the execution
of their daily tasks.
The Fraud Response Plan takes into account the risks of fraud and corruption as identified in risk assessments initiated
by Freedom Park a review of other pertinent documentation and interviews with selected Freedom Park officials. The
Plan addresses strategic fraud and corruption risks that must be addressed and which could jeopardise the successful
implementation of each component of the Plan. The Plan is dynamic and it will continuously evolve as Freedom Park
makes changes and improvements in its drive to promote ethics, as well as to fight fraud and corruption.
Steps to be taken when fraud is detected:
• It is the responsibility of all employees to immediately report all allegations or incidents of fraud and corruption to
their immediate manager.
• All managers are responsible for the detection, prevention and investigation of fraud and corruption and must report
all incidents and allegations of fraud and corruption to the Chief Executive Officer. The Chief Executive Officer will
initiate an investigation into the matter.
• Should employees wish to report allegations of fraud and corruption anonymously, they can contact any member of
management, the CEO or the Chairperson of the Audit Committee or phone the fraud prevention hotline.
57
9. MINIMISING CONFLICT OF INTEREST
A policy is in place regulating Conflict of interest which states inter alia:
• Council members and Executive Management shall annually declare direct or indirect business interests that he/she
or a family member may have in any matter which is relevant to Freedom Park
• Council members and officials of Freedom Park shall declare, by way of a notice in writing, direct or indirect business
interests that he/she or a family member may have in any contract/tender or proposed contract/tender which has
been or is to be entered into by the Freedom Park or who so becomes interested in any such contract/tender after
it has been entered into.
Before every meeting a declaration of interest is signed and should any member declare any interest he will be recused
from the meeting. Freedom Park has a zero tolerance on this policy and a Senior Manager was dismissed for not
declaring an interest.
10. CODE OF CONDUCT
The Code of Conduct refers to Ethical philosophical study of values and rules that humans live by. Within the environment
of Freedom Park, ethics refers to our Institution’s values and rules, as it execute its mandate individually and as a team.
Ethical conduct refers to correct, fitting, decent, honourable and principled behaviour. Freedom Park must ensure that
official relationships reflect integrity, respect for human dignity, the rights of others, honesty and commitment to do what
is right, fair, legal and just.
Keeping in mind that ethics refers to the Institutions principles of conduct, employees of Freedom Park must at all times
comply with the following values in the execution of their tasks and official interactions:
• Honesty / Integrity;
• Respect;
• Commitment;
• Professionalism;
• Equity; and
• Openness
11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES
Aligned with the related guidelines in King III, Freedom Park is committed to ensuring that its activities do not compromise
environmental, health and safety legislation. Although its major activities do not pose a significant threat to the environment,
the organisation’s management activities focus on compliance with the key features of existing regulations.
12. COMPANY / COUNCIL SECRETARY
The role and responsibilities of the company secretary is:
• To ensure compliance and good corporate governance throughout the Institution by providing legal guidance
and support to the Council, management and employees to enable them to discharge their fiduciary and other
responsibilities effectively.
• To provide guidance and advice within the Institution on matters of ethics, good governance, compliance and legal
matters in order ensure compliance and good governance.
58
•
•
•
•
•
•
•
•
To ensure compliance with all relevant legislation, policies and procedures through monitoring the compliance within
the Institution.
To promote compliance and good corporate governance within the Institution by amongst others training, advising
and providing guidance.
To provide effective and efficient support to council, management and staff by, amongst others, effective minute
taking, co-ordination of statutory meetings and distribution of relevant information.
To negotiate and draft agreements and provide opinions and interpretations of agreements to ensure the interest of
the Institution is protected.
To ensure the effective, efficient and economical implementation of Institutional strategies and policies in accordance
with relevant legislation and policies.
To draft and advise on policies as well as compiling manuals and procedural guidelines to ensure good governance.
To formulate and manage the departmental budget and business plan in order to ensure achievement of Institutional
strategies.
To manage the Human Resource functions within department to ensure optimal departmental performance.
13. SOCIAL RESPONSIBILITY
Freedom Park sees social responsibility as a form of self-regulation of their corporate conscience and citizenship. The
goal of social Freedom Park’s social responsibility is to encourage the Institution’s actions towards the positive impact
of stakeholder, community and employee responsibility.
Freedom Park aligns himself with appropriate Institutions to create a better environment to live and work in . Community
Development takes place within the Salvokop Community where the Institution is situated. Other outreach projects to
communities were inter alia to Hermanstad, Calvinia and youth projects by developing social community awareness. This
kind of collective activism is reached by social education and awareness goals.
14. AUDIT COMMITTEE REPORT
We are pleased to present our report for the financial year ended 31 March 2015.
Audit Committee Responsibility
The Audit Committee reports that it has complied with its responsibilities arising from Section 51 (1)(a)(ii) of the Public
Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted
appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this
charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in
accounting policies and practices.
The Effectiveness of Internal Control
Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the public
entity revealed certain weaknesses, which were then raised with the public entity.
59
The following internal audit work was completed during the year under review:
• Review on the Heritage Department operations
• Review on the Public Participation Department operations
• Follow up audit on previous internal and external audit findings raised
• Supply chain management
• There were no areas that raised specific concern.
In-Year Management and Monthly/Quarterly Report
The public entity has submitted monthly and quarterly reports to the Executive Authority.
Evaluation of Financial Statements
The Audit Committee reviewed and discussed the Annual Financial Statements of Freedom Park, as audit by the Auditor
General of South Africa and included in this annual report. Amongst others, the Committee reviewed the principles,
policies and accounting practices and standards adopted in preparation of the Annual Financial Statements and
commented thereon and monitored compliance with all statutory/legal/regulatory requirements.
Since the Annual Financial Statements complied, in all material aspects, with the aforementioned and appropriate
Internal and Generally Recognised Accounting Practise, and subject to the above, and to other related matters, the
Committee has approved and recommended the Annual Financial Statements for approval to the Council.
The Council has subsequently approved the Annual Financial Statements.
Auditor’s Report
The Audit Committee reviewed Freedom Park’s implementation plan for audit issues raised in the prior year and we are
satisfied that the matters have been adequately resolved. There are no matters that need special mention.
The Audit Committee concurs and accepts the conclusions of the external auditor on the annual financial statements and
is of the opinion that the audited annual financial statements be accepted and read together with the report of the auditor.
Ian van Niekerk
Chairperson of the Audit Committee
Freedom Park
31 July 2015
60
PART: D
HUMAN
RESOURCE
MANAGEMENT
61
1.INTRODUCTION
Employee relations and recognition agreement with trade union: the participation and consultative forum for
management and labour to engage is positive with the recognised worker leaders. There is standard schedule for
monthly consultative meeting, and substantive discussion are held. The review for the recognition agreement is pending
although both parties are committed to work on it.
Recruitment and retention of critical skills: The council and management team made resolution that contract of
employment of senior managers their term to be increase to five (5) years, because the three (3) years period is short
and for retention of skill for continuity. The Employment Equity policy was approved by Management Committee and
recruitment will be in line with the employment equity plan. Training and development: the workplace skills plan was approved by the management committee and aligned with
the Annual Performance Plan for job requirements to close skills gaps. In respect of the financial study assistance for
the year under review a total of eighteen (18) employees benefitted for study assistance for part time academic studies.
Employee Wellness: Freedom Park’s Employee Assistance Programme (EAP) hosted a Wellness Day on the 27
March 2015, for the promotions of the employee wellbeing, the event included service awareness and financial skills.
62
2. HUMAN RESOURCE OVERSIGHT STATISTICS
Personnel Cost by programme
Programme
Total
Expenditure
for the entity
(R’000)
Personnel
Expenditure
(R’000)
Personnel exp.
as a % of total exp. (R’000)
No. of
employees
Average
personnel cost
per employee
(R’000)
Staff welfare
212 653
47 181 864
0.45
105
2 025.55
Staff Training
592 849
47 181 864
1.26
105
5 646.18
Personnel cost by salary band
Level
Personnel Expenditure
(R’000)
% of personnel exp.
to total personnel cost
(R’000)
No. of employees
Average personnel
cost per employee
(R’000)
Top Management
2 166 235
4.59
2
1 083 117
Senior Management
7 899 695
16.74
10
789 970
Professional qualified
17 742 063
37.60
30
591 402
Skilled
13 789 190
29.23
33
417 854
Semi-skilled
2 540 943
5.39
12
211 745
Unskilled
3 043 738
6.45
18
169 097
47 181 864
100
105
3 263 185
TOTAL
Performance Rewards
Programme
Top Management
Performance rewards
42832
Personnel Expenditure
(R’000)
% of performance rewards to total personnel cost
(R’000)
2 166 235
0.09
Senior Management
90646
7 899 695
0.19
184510
17 742 063
0.39
Skilled
171904
13 789 190
0.36
Semi-skilled
21655
2 540 943
0.05
Unskilled
17295
3 043 738
0.04
528 842
47 181 864
1.12
TOTAL
63
Training Costs
Directorate/ Business Unit
Personnel
Expenditure
(R’000)
Training
Expenditure
(R’000)
No. of employees
trained
Avg training cost
per employee
1
6.29
2 969 923
Corporate Governance
1 378 136
Nil
0
2.92
Human Resource
1 951 072
95 584.00
49
4.14
Park Operations
8 203 579
102 806.00
14
17.39
Public Participation
9 206 130
76100.00
15
19.51
14 707 353
234 432
26
31.17
Finance
8 765 671
87658.00
8
18.58
TOTAL
47 181 864
586 353
113
100.00%
Heritage &Knowledge
12 141.00
Employment and vacancies
Programme
2014/2015
No. of
Employees
2014/2015
Approved Posts
2014/2015
Vacancies
% of vacancies
Top Management
1
2
1
0.01%
Senior Management
4
5
1
0.01%
27
29
2
0.02%
Skilled
32
35
3
0.02%
Semi-skilled
11
12
1
0.01%
Unskilled
18
18
0
0
TOTAL
93
101
8
0.07%
Employment changes
Provide information on changes in employment over the financial year. Turnover rates provide an indication of trends in
employment profile of the public entity.
Salary Band
Employment at
beginning of period
Appointments
Terminations
Employment at end of the
period
Top Management
2
0
1
1
Senior Management
4
1
1
1
5
4
3
1
Skilled
1
0
2
2
Semi-skilled
4
1
1
3
Unskilled
0
0
0
0
16
6
8
8
Total
64
Reasons for staff leaving
Reason
Number
% of total no. of staff leaving
Death
1
1%
Resignation
3
0.37%
Dismissal
2
0.12%
Retirement
0
0
Ill health
0
0
Expiry of contract
2
0.25%
Other
0
0
TOTAL
8
1.74%
Labour Relations: Misconduct and disciplinary action
Nature of disciplinary Action
Number
Verbal Warning
1
Written Warning
1
Final Written warning
1
Dismissal
2
TOTAL
5
Equity Target and Employment Equity Status
Levels
MALE
African
Current
Coloured
Target
Current
Indian
Target
Current
White
Target
Current
Target
Top Management
0
0
0
0
0
0
1
0
Senior Management
3
0
0
0
0
0
0
0
11
0
0
0
0
0
0
0
Skilled
11
0
0
0
0
0
0
0
Semi-skilled
6
0
0
0
0
0
0
0
Unskilled
9
0
2
0
0
0
0
0
TOTAL
40
0
2
0
0
0
1
0
65
Levels
FEMALE
AFRICAN
Current
COLOURED
Target
Current
INDIAN
Target
Current
WHITE
Target
Current
Target
Top Management
0
0
0
0
0
0
1
0
Senior Management
1
0
0
0
0
0
0
0
11
0
0
0
1
0
1
0
Skilled
16
0
0
0
0
0
0
0
Semi-skilled
7
0
3
0
0
0
3
0
Unskilled
8
0
0
0
0
0
0
0
TOTAL
43
0
3
0
1
0
1
0
Levels
Disabled Staff
Male
Female
Current
Target
Current
Target
Top Management
0
0
0
0
Senior Management
0
0
0
0
0
0
0
0
Skilled
0
0
0
0
Semi-skilled
0
0
0
0
Unskilled
0
0
0
0
TOTAL
0
0
0
0
NB: The institution currently has no approved equity plan only approved equity policy in place.
66
PART: E
FINANCIAL
INFORMATION
67
1. STATEMENT OF RESPONSIBILITY
Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2015
The Accounting Authority is responsible for the preparation of the public entity’s annual financial statements and for the
judgements made in this information.
The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to
provide reasonable assurance as to the integrity and reliability of the annual financial statements.
In my opinion, the financial statements fairly reflect the operations of the public entity for the financial year ended 31
March 2015.
The external auditors are engaged to express an independent opinion on the AFS of the public entity.
The Annual Financial Statements for the year ended 31 March 2015 have been audited by the external auditors and
their report is presented on page 69
The Annual Financial Statements of the public entity set out on page 73 to page 104 have been approved.
Ms Jane Mufamadi
CHIEF EXECUTIVE OFFICER
Freedom Park
31 July 2015
Mr Vusi Mchunu
CHAIRPERSON OF THE COUNCIL
Freedom Park
31 July 2015
68
2. REPORT OF THE CHIEF EXECUTIVE OFFICER
The 2014/2015 financial year marked a remarkable improvement in the revenue receipts albeit at a lower base than
what was projected. Revenue receipts derived from venue hire fees grew by 145% from R908 330 (2013/14) to R2,
224,579 (2014/15) during the year under review. Admission fees grew by a moderate 9% from R964 823 (2013/14) to
R1, 048,669 (2014/15) during the year under review. Interest revenue generated amounted to R4 558.079. The capital
reserves have declined significantly as most capital projects have been completed.
Total expenditure amounted to R35 893 147 which is 30% of total revenue. A deficit of R14 140 674 was disclosed as
at 31st March 2015.
The percentage growth on performance targets was registered at 73% (2014/15) as compared to 65% (2013/14) the
previous financial year. This growth marked an 8% improvement.
The paying visitor numbers stood at 21 051 during the period under review. In addition to this; Freedom Park obtained
a credible 3 star graded certificate from the South African Tourism grading Council.
Ms Jane Mufamadi
ACTING CHIEF EXECUTIVE OFFICER
Freedom Park
31 July 2015
69
3. REPORT OF THE EXTERNAL AUDITOR
72
104
70
28
40
49
28
40
36
49
36
71
21
49
72
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015
2015
2014
Notes
R
R
Restated
ASSETS
Non - current assets
Property, plant and equipment
2
719 141 548
732 195 620
Intangible assets
3
18 494 170
18 810 149
Heritage assets
3.1
148 250
148 250
737 783 968
751 154 019
Current assets
Trade and other receivables
4
1 190 310
1 200 431
Cash and cash equivalents
5
91 461 770
100 324 109
Inventories
6
782 692
8 249
93 434 772
101 532 789
831 218 740
852 686 808
7
87 677 403
93 772 476
Trade and other payables
8
4 229 163
5 269 293
Provisions
9
1 477 124
1 161 136
Deferred Income
7
3 442 696
4 008 433
9 148 983
10 438 862
96 826 386
104 211 338
734 334 794
748 475 470
57 560
- 831 218 740
852 686 808
TOTAL ASSETS
LIABILITIES
Non - current liabilities
Deferred income
Current Liabilities
TOTAL LIABILITIES
Net assets
Accumulated surplus
Revaluation reserve
TOTAL NET ASSETS AND LIABILITIES
73
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDING 31 MARCH 2015
2015
2014
Notes
R
R
Restated
Exchange revenue
10
3 289 597
1 967 808
Non exchange revenue
11
82 124 347
92 129 517
Employee costs
(49 149 997)
(46 401 454)
Operating expenses
(35 893 147)
(34 566 744)
370 800
13 129 127
4 558 079
5 110 779
(18 940 852)
(15 980 179)
(128 701)
- (14 140 674)
2 259 727
Operating surplus
Interest received
Depreciation and amortisation
(Deficit)/Surplus on the disposal of assets
(Deficit)/Surplus for the year
3
74
STATEMENT OF CHANGES IN NET ASSETS
Revaluation
reserve
Note
Accumulated
Surplus
Total net assets
R
R
Balance at 1 April 2013
-
746 067 491
746 067 491
Surplus for the year
- 2 401 590
2 401 590
Correction of prior period error
23
- (141 863)
(141 863)
Implementation of Heritage Asset standard
23
- 148 250
148 250
-
748 475 468
748 475 468
Balance at 1 April 2014
(Deficit)/Surplus for the year
Revaluation raised for the year
Balance at 31 March 2015
(14 140 674)
(14 140 674)
57 560
- 57 560
57 560
734 334 794
734 392 354
75
CASH FLOW STATEMENT FOR THE YEAR ENDING 31 MARCH 2015
2015
2014
Notes
R
R
Restated
Cash flow from operating activities
Revenue from exchange and non exchange transactions
Revenue from non-exchange transactions: Grants
3 299 718
1 239 648
82 124 347
92 129 517
Interest income
4 558 079
5 110 779
Employee costs
(49 149 997)
(46 401 454)
Operating expenses and suppliers
(37 391 736)
(35 794 650)
3 440 411
16 283 839
(4 978 192)
(7 693 822)
- - (1 682 619)
(9 345 022)
- - 987 620
196 075
31 249
- (5 641 941)
(16 842 769)
(6 660 810)
(21 394 503)
- 12 587 563
Net cash from financing activities
(6 660 810)
(8 806 940)
Total cash movement for the year
(8 862 340)
(9 365 870)
Cash at the beginning of the year
100 324 109
109 689 979
91 461 770
100 324 109
Net cash from operating activities
15
Cash flows from investing activities
Purchase of property, plant and equipment
Disposal of property, plant and equipment
Purchase of other intangible assets
Disposal of other intangible assets
Movement of asset classification correction
Proceeds / deficit on disposal of assets
Net cash from investing activities
Cash flows from financing activities
Movement in long-term liability
Capital grants received
Net increase / (decrease) in cash and cash equivalents
76
ACCOUNTING POLICIES
1
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
1.1
Presentation of the annual financial statements
Basis of preparation
The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting
Practice (GRAP) as determined by Directive 5 (Determining the GRAP Reporting Framework) issued by the Accounting
Standards Board (ASB) in accordance with Section 55 and 89 of the Public Finance Management Act, Act No. 1 of 1999
(as amended by Act 29 of 1999).
Directive 5 details the GRAP Reporting Framework comprising the effective standards of GRAP, interpretations (IGRAPs) of such standards issued by the ASB, ASB guidelines, ASB directives, standards and pronouncements of other standard
setters, as identified by the ASB on an annual basis.
Accounting policies for material transactions, events or conditions not covered by the GRAP Reporting Framework, as
detailed above, have been developed in accordance with paragraph 7, 11 and 12 of GRAP 3 and the hierarchy approved in
Directive 5 issued by the Accounting Standards Board.
The following statements were approved and effective at the reporting date:
GRAP 1 Presentation of Financial Statements
GRAP 2 Cash Flow Statements
GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors
GRAP 4 The Effects of Changes in Foreign Exchange Rates
GRAP 5 Borrowing Costs
GRAP 6 Consolidated and Separate Financial Statements
GRAP 7 Investments in Associates
GRAP 8 Interests in Joint Ventures
GRAP 9 Revenue from Exchange Transactions
GRAP 10 Financial Reporting in Hyperinflationary Economies
GRAP 11 Construction Contracts
GRAP 12 Inventories
GRAP 13 Leases
GRAP 14 Events After the Reporting Date
GRAP 16 Investment Property
GRAP 17 Property, Plant and Equipment
GRAP 18 Segment Reporting
GRAP 19 Provisions, Contingent Liabilities and Contingent Assets
GRAP 20 Related Party disclosure
GRAP 21 Impairment of non-cash-generating assets
GRAP 23 Revenue from Non-exchange Transactions (Taxes and Transfers)
77
GRAP 25 Employee Benefits
GRAP 24 Presentation of Budget Information in the Financial Statements
GRAP 26 Impairment of cash-generating assets
GRAP 100 Non-current Assets Held for Sale and Discontinued Operations
GRAP 101 Agriculture
GRAP 102 Intangible Assets
GRAP 103 Heritage Assets
GRAP 104 Financial Instruments
Functional and presentation currency
The financial statements have been prepared under the historical cost convention, as modified by the accounting policies
listed below. The financial statements have been presented in the South African Rand (ZAR), as this is the currency in
which the majority of the transactions are denominated. All amounts have been rounded to the nearest R1.
1.2
The land on which Freedom Park operates is not brought to account as it is not the property of the Park but government
owned and only managed by the Park on behalf of government. Improvement costs incurred by the Park with regard to these
assets are capitalized and depreciated over the estimated useful lives of these assets. The buildings constructed and utilised
by the Park is recognised as owner occupied property. Where management has dual usage of a building and has commenced
use for investment purposes and this use is not material in relation to the total cost of the building, the building will be reflected
as owner occupied and will not be proportionately split into investment and owner occupied property.
The cost of an item of property, plant and equipment is recognised as an asset when:
- It meets the definition of an asset
- It is probable that future economic benefits associated with the item will flow to the entity; and
- The cost of the item can be measured reliably.
Property plant and equipment that qualifies for recognition as an asset shall be measured at its cost.
Where an asset is acquired at no cost or for a nominal cost, its cost shall be measured at its fair value as at the date of
acquisition.
Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred
subsequently to add to or replace part of it. If a replacement cost is recognised in the carrying amount of an item of property,
plant and equipment, the carrying amount of the replaced part is derecognised.
Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.
Item
Average useful life
Buildings
10 - 65 years
Library material
10 - 15 years
Office equipment
4 - 15 years
Furniture and fittings
5 - 20 years
Vehicles
5 - 7 years
IT equipment
4 - 10 years
Artwork
Indefinite
78
The actual useful lives of the assets and residual values are assessed annually and may vary depending on a number of
factors. In re-assessing asset useful lives, factors such as technological innovation, product life cycles and maintenance
programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. The residual value of assets is considered insignificant and therefore
immaterial in the calculation of the depreciable amount of assets.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item
shall be depreciated separately.
The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of
another asset. The depreciable amount shall be allocated on a straight line basis over the assets useful life.
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit
when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment
is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.
Assets under construction will not be depreciated until project completion and all costs attributable to bringing the asset to
the condition necessary for it to be capable of operating in the manner intended by the Council, will be capitalised as part
of the cost of the asset.
The GRAP framework section 74 to 76 states that:”Many assets, for example, receivables and property, are associated with
legal rights, including the right of ownership.
The requirement that the rights or other access should be controlled by the entity treating them as its assets means that a
particular right or other access to future economic benefits or service potential will appear in only one set of single entity
financial statements, because such rights or access can be directly controlled by only one entity.”
Collections/Artifacts on loan are still accounted for by the owners of the loan collections/artifacts and therefore are not considered under the beneficial control of Freedom Park.
1.3
Intangible assets
An intangible asset is recognised when:
- It meets the definition of an intangible asset
- It is probable that the expected future economic benefits that are attributable to the asset will flow to the entity
- The cost of the asset can be measured reliably.
Intangible assets are initially recognised at cost.
Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.
An intangible asset arising from development (or from the development phase of an internal project) is recognised when:
- It is technically feasible to complete the asset so that it will be available for use or sale;
- There is an intention to complete and use or sell it;
- There is an ability to use or sell it;
- It will generate probable future economic benefits;
- There are available technical, financial and other resources to complete the development and to use or sell the asset;
- The expenditure attributable to the asset during its development can be measured reliably.
79
Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.
An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows. Amortisation is not provided for these
intangible assets. For all other intangible assets amortisation is provided on a straight line basis over their useful life.
The amortisation period and the amortisation method for intangible assets are reviewed every period-end.
Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:
1.4
Item
Useful life
Computer software
4 - 8 years
Films and animations
Indefinite
Intangible assets under development:
1 year
Exhibition development
Indefinite/10 years
Heritage assets
Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.
A heritage asset will only be recognised as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the entity and the cost or fair value of the asset can be measured reliably.
To identify heritage assets consideration should be given to the characteristics that heritage assets often display as listed in
GRAP 103. It should be noted that not all heritage assets will necessarily display the listed characteristics.
If uncertainty still exist after the above criteria and characteristics have been considered, the main intention or purpose of
the asset should be considered, i.e. is the asset used to execute the entity’s activities (to fulfil the mandate of Freedom Park)
or for another purpose. The intention of the standard is not to preserve replica assets.
Assets may be reclassified as heritage assets after initial recognition and subsequent measurement when an asset subsequently meets the definition of a heritage asset.
Dual purpose assets (used for service delivery and preserved and defined as a heritage asset) can only be classified as a
heritage asset when a significant portion of the asset meets the definition of a heritage asset.
Please refer to the following management assumptions and conclusions reached relating to the classification of infrastructure heritage assets. Please also refer to Annexure 1 to the AFS for the detailed analysis:
• The infrastructure may house movable heritage objects it does not present any cultural significance since any matters
worthy to note or of any meaning culturally was created by constructing it. The creation is merely a symbolic copy of traditional beliefs.
• There is no historical significance, the Park is newly built therefore it is not of the past. The buildings and collections may
depict items that are historically significant however the buildings have no significant historical association. Historical significance lays in the names itself and not the building/wall constructed to commemorate such fallen people.
80
• Although the Park could be considered a work of art (referring to the way buildings and elements were designed to mimic
certain landscapes and historic building techniques) the Park was not designed by a notable artist nor was the techniques
used to design and build artistically unique therefore it has no specific artistic meaning or matters worthy to note.
• The infrastructure does not have any environmental, natural, scientific or technological significance to note as the land
has no significant environmental impact, no natural elements are being produced and no significant scientific method or
technological innovation are present in the buildings.
• It is the vision of Park management as well as the Department of Arts and Culture to hold this asset indefinitely as an
eternal memorial and museum so that our present and future generations can understand the story of South Africa’s history.
Management further applied guidance given by GRAP 103, indicating typical characteristics that heritage assets usually
display:
* The infrastructure have been recently constructed it is possible to reflect the cultural and artistic value in monetary terms.
The value of the infrastructure does not lie in their historical significance as the elements can be replaced, updated or replicated at any other site.
* The value of the infrastructure (due to the fact that it is newly built and replaceable) will not increase overtime if it is not
well maintained and will not appreciate in value such as artwork, historical buildings and scarce assets.
* The infrastructure is not irreplaceable, architectural drawings and indigenous knowledge research is readily available to
reproduce all elements within the Park should it for some reason cease to exist
* The infrastructure does not have indefinite useful lives; it will not appreciate over time due to their historical, cultural and
artistic significance as it is not declared as a heritage site as at 31 March 2013; it is not a historical monument; it is not a
conservation area; it is not a work of art; it is not a particular building type, style, period or done by an architect of architectural significance.
• There are no ethical, legal and/or statutory obligations that impose prohibitions or severe stipulations on disposal by sale;
• The infrastructure is not specifically protecteded, kept unencumbered, cared for and preserved. There is no specialised
infrastructure preservation required only general repairs and maintenance which is dependent on external funding.
After applying the definition and testing Freedom Park infrastructure assets against the characteristics of heritage assets it
is managmenets judgement that the infrastructure elements of Freedom Park do not meet the definition of a heritage asset
and the current classification as property, plant and equipment still applies
A heritage asset that qualifies for recognition as an asset shall be measured at its cost, if acquired through a non exchange
transaction it will be measured at its fair value
After recognition as an asset, a class of heritage assets, whose fair value can be measured reliably, shall be carried at at
a revalued amount, being its fair value at the date of revaluation less any subsequent impairment losses. Annual assessments by the curators should be performed to assess condition detoriation and revaluations should be performed at least
every 5 years
Where no value can be placed on an item, it will not be recognised, however information will be disclosed about such items
and why they could not be valued
81
A Collection of heritage assets is a grouping of assets of a similar nature or function. At Freedom Park heritage assets area
classified according to their donor. Due to this manner of classification, in some cases a collection may contain Heritage
assets which belong to multiple classes and where the monetary value and historical significance would lie in the collection
as a whole and not with individual items or classes.
A collection of rare copies do not meet the definition of an assets and will be referred to as reference material
A collection’s service potential can only be realised when a collection has been accessioned/catalogued. Valuation of the
collection can only commence after this step. Therefore Freedom Park cannot recognise a collection until accessioning/
cataloguing and valuation has been concluded.
1.5
Investments
All surplus cash is invested in accordance with Treasury Regulations and internal policies and procedure. All funds are
invested with financial institutions as approved by the National Treasury. Investment periods do not exceed 12 months. All
investments are accounted for as per section 1.5 below.
1.6
Financial instruments
Financial instruments carried at the statement of financial position date include receivables and trade creditors. These
financial assets and liabilities are non-derivative instruments with fixed or determinable payments that are not quoted in
an active market. They are included in current assets and liabilities as the maturities are not more than 12 months
Initial recognition and measurement
Financial instruments are recognised initially when the Park becomes a party to the contractual provisions of the instruments.
Assets and liabilities arising out of non-contractual arrangements do not meet the definition of a financial asset or a financial
liability.
The Park classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial
liability or an equity instrument in accordance with the substance of the contractual arrangement.
Trade and other receivables (Financial Assets)
Trade and other receivables are measured at initial recognition at fair value, and are subsequently measured at amortised
cost using the effective interest rate method.
Appropriate allowance for estimated irrecoverable amounts are recognised in surplus of deficit when there is objective
evidence that the asset is impaired
These financial assets will not be discounted prior to their date for payment due to the fact that credit periods are in line with
operating terms in the public sector.
Trade and other payables (Financial Liabilities)
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective
interest rate method.
These financial liabilities will not be discounted prior to their date for payment due to the fact that credit periods are in line
with operating terms in the public sector.
82
Cash and cash equivalents (Financial Assets)
Cash and cash equivalents are classified as current assets and comprise of cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.
1.7
Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease
is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
Finance leases - lessee
Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair
value of the leased property or, if lower, the present value of the minimum lease payments.
The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance
charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.
The depreciation policy for depreciable leased assets is consistent with that for depreciable assets that are owned. The
depreciation recognised for depreciable leased assets is calculated in accordance with GRAP 17: Property, Plant and
Equipment and GRAP 102: Intangible Assets. A depreciable leased asset is depreciated over:
- Its useful life if there is reasonable certainty that the lessee will obtain ownership by the end of the lease term.
- The shorter of: the assets useful life; or the lease term.
If there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully
depreciated over the shorter of the lease term and its useful life
The entity applies GRAP 21: Impairment of Non Cash Generating Assets to determine whether the leased asset has become impaired.
Operating leases - lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset.
The lease of the land is treated as an operating lease due to the fact that it has an indefinite economic life and the title is not
expected to pass to Freedom Park by the end of the lease term. The non-renewable operating lease for land is recognised
in the Statement of Financial Performance when the cash based expense is incurred.
1.8
Impairment of assets (Non cash generating assets)
The majority of the assets held by Freedom Park are non cash generating assets due to the fact the the primary reason
these assets are held is for service delivery purposes. The significance of any cash inflows which may relate to some assets
are immaterial.
The Park assesses at each statement of financial position date whether there is any indication that an asset may be impaired. If any such indication exists, the Park estimates the recoverable amount of the asset.
83
Irrespective of whether there is any indication of impairment, the Park also tests intangible assets with an indefinite useful
life or intangible assets not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed during the annual period and at the same time every period.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. That reduction is an impairment loss.
An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately
as a surplus or deficit.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. The increased carrying amount due to reversal should not be more than what the depreciated and amortised historical cost
would have been, if the impairment had not been recognised.
Financial assets, other than those at fair value through surplus or loss, are assessed for indicators of impairment at each
balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events
that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been
impacted.
1.9
Employee benefits
Defined contribution plans
Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. The defined plan
is a provident fund plan under which the Park pays fixed monthly contributions to a separate entity that will have legal or
constructive obligations to pay further contribution if the fund does not hold sufficient assets to pay all the employee benefits
relating to the employee service in the current and prior period. The Park pays contributions to a publicly administered provident fund on a mandatory, contractual or voluntary basis. Once the contribution is paid, the Park has no further obligations.
The cost of short term employee benefits (those payable within 12 months such as leave pay-outs 13th cheques) are recognised in the period in which these services are rendered.
The expected cost of bonus payment is recognised as an expense where there is a legal or constructive obligation to make
such payments as a result of past performance
1.10
Provisions and contingencies
Provisions are recognised when:
- The Park has a present obligation as a result of a past event;
- It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
- A reliable estimate can be made of the obligation.
The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the
reimbursement is recognised when, and only when, it is certain that the reimbursement will be received if the Park settles
the obligation and is then recognised in the Statement of Financial Performance. Provisions are reviewed at each balance
sheet date and adjusted to reflect the current best estimate.
Employees’ entitlement to a 13th cheque (issued in December) indicates a certainty in timing, although the amount is still
an uncertainty (due to annual escalations, performance evaluation outcomes and resignations) and is therefore classified
as a provision
84
Contingencies will be disclosed in the annual financial statements when a possible obligation arises from past events and
whose existence can only be confirmed by the occurrence or non occurrence of uncertain future events such as claims
and litigation initiated against Freedom Park of which the opinion would be that there is no probable outflow of resources
to settle or the amount or outcome cannot be reliable measured. Management will indicate its best estimate of the financial
effect of the contingency in the note of the financial statements
1.11
Revenue from non-exchange transactions
Government grants are recognised when there is reasonable assurance that:
- The entity will comply with the conditions attaching to them; and the grants will be received.
Government grants are recognised as income over the periods necessary to match them with the related costs that they
are intended to compensate. A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose
of giving immediate financial support to the entity with no future related costs is recognised as income of the period in
which it becomes receivable. Government grants related to assets, including non-monetary grants at fair value, shall be recognised as revenue, except
to the extent that a liability (Deferred revenue) is also recognised in respect of the inflow. As the obligation of the grant related to assets is satisfied, the carrying amount of the liability recognised shall be reduced
and recognise an amount of revenue equal to that reduction.
1.12
Revenue from exchange transactions
Revenue is measured at the fair value of the consideration received or receivable. Revenue from the sale of goods shall be recognised when all of the following conditions have been satisfied:
- the significant risk and rewards of ownership of the goods are transferred to the purchaser;
- neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the
goods sold are retained;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits or service potential associated with the transaction will flow to
Freedom Park; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue from rendering a service shall be recognised when:
the outcome of the transaction can be estimated reliably; and
- revenue associated with the transaction shall be recognised by reference to the stage of completion at the reporting
date.
The outcome of revenue from rendering a service can be estimated reliably when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits or service potential associated with the transaction will flow to Freedom Park; - the stage of completion of the transaction at the reporting date can be measured reliably; and - the cost incurred and to complete the transaction can be measured reliably.
Interest revenue, arising from the use by others for the entity’s assets, is recognised:
- Using the effective interest method when:
- It is probable that the economic benefits associated with the transaction will flow to the entity; and
- The amount of the revenue can be measured reliably
85
1.13
Translation of foreign currencies
Foreign currency transactions
A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the
spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from
those at which they were translated on initial recognition during the period or in previous annual financial statements are
recognised in surplus or deficit in the period in which they arise.
1.14
Comparative figures
Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.
1.15
Research and development expenditure
Research costs are charged against operating surplus as incurred. Development costs are recognised as an expense in
the period in which they are incurred unless the following criteria are met:
- The product or process is clearly defined and the costs attributable can be separately identified and measured reliably;
- The technical feasibility of the product or process can be demonstrated;
- The existence of a market or, if to be used internally rather than sold, its usefulness to the Park can be demonstrated;
- Adequate resources exist to complete the project and then market or use the product or process; and
- The asset is separately identifiable.
1.16
Risk management
Interest rate risk is managed by investing excess cash in Financial Instruments at approved financial institutions. The
Park’s exposure to credit risk is insignificant. Liquidity risk is managed by keeping sufficient cash available from short
dated financial instruments.
1.16
Fruitless and wasteful and irregular expenditures
Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. Irregular expenditure means expenditure, other than unauthorised expenditure, incurred in
contravention of or that is not in accordance with a requirement of any applicable legislation including the Public Finance
Management Act.
All irregular and fruitless and wasteful expenditures are charged against the surplus in the period in which they occur.
1.17
Inventory
Inventories are assets held for sale or distribution in the ordinary course of operations. Inventories that qualify for recognition as an asset shall initially be measured at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value as at the date of acquisition. Cost generally refers to the purchase price, cost of
conversion and any other cost in bringing the inventories to their current location and condition.
Inventories shall subsequently be measured at the lower of cost and net realisable value, unless where they are to be
distributed at no or nominal charge, in which case they are measured at the lower of cost and current replacement cost.
When inventories are sold, exchanged, distributed written off or consumed, the carrying amount of those inventories shall
be recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the
expense is recognised when the goods are distributed, or related service is rendered. Freedom Park Annual Report 2014/15
86
1.18 Commitment
The commitment disclosure note is a voluntary disclosure and does not relate to any GRAP requirement, only capital
commitments are required for disclosure as per GRAP 17
Management elected to disclose commitments related to capital related projects which is consistently applied
1.19 Related party transactions
A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant
influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.
Related party relationships where control exists shall be disclosed, irrespective of whether there have been transactions
between the related parties. An entity shall disclose the name of its controlling party and if different, the ultimate controlling party.
The nature of the related party relationship as well as information about those transactions and outstanding balances,
including commitments shall be disclosed for all related party transations
Related party transactions do not require disclosure if the transactions occurred in a normal supplier/client relationship
with no more or less favourable conditions and which occurred within the normal operating parameters established by that
reporting entity’s legal mandate.
2.
R
2 765 108
57 560
547 302
638 416
829 904
- 732 195 620
Reconciliation of property, plant and equipment - 2014
Total
Library material
5 035 752
57 560
45 600
- 1 150
8 244 225
Exhibition assets under development
Art work
- 4 040 233
Property under construction
1 744 413
1 172 557
R
Additions
3 646 299
13 737 760
723 322
49 772 983
652 029 648
R
Opening Balance
(97 613 812)
- - - - (2 696 810)
(7 805 286)
(1 714 213)
(7 501 865)
(77 895 638)
R
R
- - (154)
(159 950)
- - (14 800)
- (28 767)
(116 229)
R
Disposals
719 141 548
57 560
46 751
8 229 425
- 4 455 575
12 183 549
1 050 895
47 209 573
645 908 220
R
-
- - - (4 040 233)
- - - - 4 040 233
R
Transfers
813 155 344
- 1 150
8 244 225
4 040 233
6 497 386
19 117 388
2 217 806
54 103 436
718 933 720
(17 929 875)
- - - - (906 371)
(2 610 539)
(219 729)
(3 201 672)
(10 991 565)
R
Depreciation
(80 959 724)
- - - - (2 851 087)
(5 379 628)
(1 494 484)
(4 330 453)
(66 904 072)
R
Accumulated
Depreciation
Cost /valuation
Accumulated
depreciation
Carrying value
2014
2015
IT equipment
Office equipment
Motor vehicles
Buildings
Reconciliation of property, plant and equipment - 2015
816 755 360
Library material
Total
46 751
8 229 425
- 7 152 385
Art work
IT equipment
19 988 835
Motor vehicles
Office equipment
54 711 438
723 803 858
Cost /valuation
Buildings
R
719 141 548
57 560
46 751
8 229 425
- 4 455 575
12 183 549
1 050 895
47 209 573
645 908 220
R
Total
732 195 620
- 1 150
8 244 225
4 040 233
3 646 299
13 737 760
723 322
49 772 983
652 029 648
Carrying Value
87
3.
8 244 225
Art work
Total
Total
Intangible assets under development
18 810 149
987 620
13 444 159
4 378 370
Computer software, other
Films and other
R
Opening Balance
21 995 089
- Reconciliation of intangible assets - 2015
Total
13 776 989
8 218 100
Films
R
Computer software
Cost /valuation
735 101 851
1 710 065
51 308 041
4 268 531
IT equipment
1 070 441
2 834 421
13 198 441
Motor vehicles
Intangible assets
R
652 467 686
Opening Balance
Office equipment
Buildings
71 405
774 162
295 273
710 326
1 682 619
- 60 000
1 622 619
R
Additions
(3 500 919)
- (313 655)
(3 187 264)
R
2015
Accumulated
depreciation
7 693 822
3 822 540
2 020 116
R
Additions
-
R
Disposals
-
- - - 18 494 170
- 13 463 334
5 030 836
R
Carrying value
R
Disposals
- - (987 620)
(987 620)
R
Transfers
21 391 219
987 620
13 716 989
6 686 610
R
Cost /valuation
4 926 255
(55 129 431)
310 052
11 747 765
38 463 367
9 534 502
R
Transfers
R
(1 010 978)
- (40 825)
(970 153)
R
Amortisation
(2 581 070)
- (272 830)
(2 308 240)
R
2014
Accumulated
Depreciation
(15 526 308)
(693 637)
(1 618 588)
(347 119)
(2 184 098)
(10 682 866)
Depreciation
R
18 494 170
- 13 463 334
5 030 836
R
Total
18 810 149
987 620
13 444 159
4 378 370
R
Carrying Value
732 195 620
1 150
8 244 225
4 040 233
3 646 299
13 737 760
723 322
49 772 983
652 029 648
Total
88
383 396
- - -
Historical papers*
Total
Opening Balance
Arts and artefacts
Reconciliation of heritage assets - 2014
R
- 148 250
Historical papers*
Total
148 250
R
Arts and artefacts
Opening Balance
Reconciliation of heritage assets - 2015
148 250
- Historical papers
Total
148 250
R
Cost /valuation
15 041 327
4 096 148
10 561 783
R
Opening Balance
Arts and artifacts
3.1 Heritage assets
Total
Films
Computer software, other
Reconciliation of intangible assets - 2014
R
-
- -
- - 148 250
- 148 250
Additions
R
Additions
R
2015
Accumulated
depreciation
9 345 023
7 735 861
12 814
1 596 348
R
Additions
R
-
- - -
- - -
- 148 250
Disposals
R
- - 148 250
Disposals
R
Carrying value
R
Disposals
R
Transfers
R
-
- - -
- 148 250
- 148 250
Transfers
R
Cost /valuation
(5 122 330)
(10 842 636)
2 881 250
2 839 056
R
Transfers
-
- -
- - -
- - Amortisation
R
R
Amortisation
R
2014
Accumulated
Depreciation
(453 870)
(1 752)
(11 688)
(440 430)
R
Amortisation
148 250
R
R
- 148 250
148 250
- 148 250
Total
148 250
- 148 250
Total
R
Carrying Value
18 810 149
987 620
13 444 159
4 378 370
R
Total
89
5.
4.
Short-term deposits
Cash on hand
R
99 870 787
100 324 109
453 322
91 461 770
2014
90 436 852
1 024 918
2015
1 200 431
1 190 310
502 943
553 082
427 108
382 074
219 757
50 624
Trade receivables
R
2014
Prepaid expenses
35 397
219 757
R
R
2015
Deposits
Staff loans and accruals
These collections have been assessed as having heritage value, however assigning cash value to historical papers is problematic. While the collection is of historical value,
it goes against the spirit both of existing heritage legislation and professional ethics, to assign cash value to these writings even if the items are by definition, unique and
irreplaceable. There is also the issue of intellectual property and personal and community interest and whether it is appropriate to reduce that to a cash value.
** Historical Papers
The arts and artefacts were valued as at 31 March 2014 to the amount of R148 250, which will serve as the opening and closing balance for implementation according to
Directive 12. An independent expert evaluator (The Valuator Group) was appointed to facilitate the process. The assessment of assets under the heading of Fair Value falls
within the discipline of Open Market Value (OMV) of movable assets.
* Arts and artifacts
90
7.
6.
- - Cash available - National Lottery
91 120 099
Cash available - Department of Arts and Culture(Infrastructure maintenance grant)
91 120 099
Cash available - Department of Arts and Culture and the Department of Public Works
- National Lotteries Board
Balance of funds left unspent
- Department of Public Works
(6 660 810)
- Amount released to the income statement
-
Department of Arts and Culture (Infrastructure Maintenance)
97 780 909
3 442 696
87 677 403
R
2015
Capital grants receipts:
Opening balance
Reconciliation of closing balances
Contracts to be completed within the next financial year
Current liabilities
Contracts to be completed in more than one year
Non-Current liabilities
Deferred income comprises:
- 85 193 346
85 193 346
(21 394 501)
12 587 563
- - 12 587 563
106 587 847
4 008 433
93 772 476
R
2014
Deferred income represents the movement in capital grants received. Deferred income is recognised in the statement of financial performance based on actual capital
expenditure incurred during the financial year.
Deferred income
8 249
2 503
5 746
782 692
R
2014
- 730 306
8 090
Freedom Park Book
2 306
Vending Machine Stock
R
2015
ICD Armbands
Inventories
91
9.
8.
R
Opening balance
R
Additions
341 013
3 329 211
176 591
1 161 136
Provision for litigation and claims
2 939 062
834 896
Annual 13th Cheque
49 136
149 649
COIDA provision (Workmans compensation)
Reconciliation of provisions - 2015
Provisions
(35 867)
(3 013 223)
(45 000)
(2 932 356)
R
Utilised during
the year
472 604
841 602
162 918
1 477 124
R
Total
5 269 293
1 553 986
2 328 414
4 229 163
R
2014
1 386 893
382 164
2 311 460
Other accrued expenses
1 535 539
Accrued leave pay
R
2015
Trade payables
Capital grants have been presented in the Statement of Financial Position as deferred income and have been allocated to the Statement of Financial Performance based
actual spending on Park infrastructure and other capital items. Deferred revenue represents amounts previously received from government as well as private grants that
will be utilised in future against the respective conditions of the grants.
General:
A total grant of R30,247,000 was allocated by the National Lotteries Board for the funding of exhibition development at //hapo. The funding is made available in tranches based on the conditions as stipulated in the Grant Agreement with the National Lotteries Board that was finalised during the 2008/2009 financial year. The second
tranche payment of R6 409 437 was received on 19 March 2010. To date, all funding has been received and spent. A progress report on spending on the final tranche has
been sent to the National Lotteries Board. To date, no feedback has been received.
Although there has been expenditure incurred on the funds received from the National Lotteries Board it has not been released pending approval from the National Lotteries Board. The available cash at year-end indicates the amount available for use in future financial periods for the completion of the Freedom Park.
Lotto Funding:
92
11.
10.
3 514 000
774 425
21 394 501
92 129 517
70 735 016
6 660 810
75 463 537
Operating grant
R
2014
82 124 347
R
Transfer from deferred income: Capital grant
2015
1 967 808
908 330
964 823
3 289 597
Non exchange revenue
R
2014
94 655
2 224 579
176 591
834 896
149 649
1 161 136
R
Total
16 319
1 048 699
Other income
- (3 303 880)
Venue hiring fees received
R
2015
- (3 303 880)
R
Utilised during
the year
Admission fees received
Exchange revenue
- 176 591
3 445 345
68 655
Provision for litigation and claims
80 994
R
Additions
693 431
R
Opening balance
Annual 13th Cheque
COIDA provision (Workmans compensation)
Reconciliation of provisions - 2014
93
12.
73 680
- 14 001
103
718 294
5 883
- 1 503
813 463
664 611
- 268 839
244 092
783 212
858 088
828 892
1 017 134
4 664 866
RANK
F Jiyane (CEO)#
Deputy Chief Executive Officer#
## Received Acting Allowance (CEO) 28 April 2014
# Contract expired 30/09/2014
** Appointed 01/12/2014
*Resigned 31/07/2014
R Gouws (CFO)
T Nemaheni (Departmental Head: Park Operations)
K Matibe (Departmental Head: Public Participation)
J Mufamadi (Departmental Head: Heritage)##
N Sipeka (Company Secretary)**
A Ramalotja (Departmental Head: HR)*
13Th Cheque & Performance
Bonus
Travel & Other
Allowances/Reimburse
Annual Basic
Salary
507 819
133 806
76 749
76 749
76 749
5 734
42 157
- 95 875
Remuneration of senior management
Employee costs (Continued)
414 490
74 560
92 097
62 901
94 351
19 267
20 235
- 51 078
Provident Fund
Contribution
106 635
- - - 43 434
11 889
- - 51 312
Medical Aid
Contribution
6 416 355
1 121 392
893 441
691 760
766 811
940 435
437 699
- 1 564 817
Total Costs
2014
46 401 454
49 149 997
634 429
3 428 165
708 347
381 602
640 409
246 996
170 104
754 896
3 468 013
Temporary wages
1 020 808
13th cheques
446 797
Overtime payments
Acting allowance
606 123
1 108 401
168 628
2 365 399
243 885
2 485 955
548 822
R
2014
37 582 118
38 541 554
R
2015
Employment benefits
Leave pay provision charge
UIF
Medical aid contributions
Performance bonus
Basic remuneration
Employee costs
94
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Mr V Mchunu (Chair Person)
Dr N Ramdhani (Deputy Chair Person)
Mr I van Niekerk
Ms FD Bogatsu
Mr S Gounden
Dr PM Guma
Mr ST KaPlaatjie
Prince N Khuzwayo
Prof EL van Harte*
Adv Mc Caps Motimele (SC)
126 026
934 423
120 252
*Deemed a government official and were therefore not remunerated for 8 meetings attended
- 90 854
31 814
105 782
58 456
95 697
122 356
65 226
129 380
108 832
Honorarium
29 708
- - 15 991
1 471
11 750
11 514
26 765
2 063
7 566
13 425
Disbursements
2015
The new Council were appointed by the Minister of Arts and Culture effective from 1 June 2012 for a three year term
Active
Member status
Member
Dr E Dikotla
Remuneration of Council
1 054 675
155 734
- 90 854
47 805
107 253
70 206
107 211
149 121
67 289
136 946
987 277
84 852
84 753
96 338
58 537
122 621
80 912
120 068
51 423
67 429
103 616
116 728
R
R
122 257
Total
Total
2014
95
14.
13.
2 273 301
4 496 325
2 587 394
2 466 799
Legal and other consultant fees
ICT related expenses
2 834 802
2 895 395
34 566 742
5 236 486
Should GRAP13.48 be applied, an estimated average lease expense of R309 399 203 per annum needs to be recognised in the Statement of Financial Performance for
the year with a resulting deferred liability in the Statement of Financial Position. Management concluded that compliance with the GRAP13.48 would be misleading and
calculated over 99 years will distort the entity’s performance for the period under review due to the lengthy lease period.
The Park entered into a 99 year non-renewable lease agreement for land at Salvokop, Pretoria commencing on 24 June 2002. GRAP 13 requires operating lease payments to be recognized as an expense using the straight-line method.
A lease for four multi-function copiers was intered into on 1 June 2013. The lease is for 36 months. The monthly installment per copier is R1 872
A 36 month lease was entered into on the 1st June 2012. The lease is for the Cape Town office rental. The monthly instalment is R6 448.70 escalating at 9%pa.
Operating lease
6 562 893
Other operating expenditure
35 893 147
2 686 368
Programme 3: Public engagement - Positioning of Freedom Park
5 298 886
4 635 838
1 949 470
Strategic projects
Programme 2: Busines development - To protect and preserve IKS
1 180 689
1 021 386
Marketing and advertising
1 476 245
678 196
Comprehensive Insurance
Landscaping services
3 535 555
4 096 683
Security related expenses
2 471 394
5 159 416
2 530 194
Water and Electricity
Repairs and maintenance
2 121 435
1 050 988
290 868
2 170 761
1 399 164
R
2014
External audit fees
1 698 004
161 785
R
2015
Internal audit fees
Council remuneration and other expenses
Operational Expenditure
96
15.
89 856
- 16 283 839
210 120
(1 572 423)
(728 160)
- 15 980 179
2 401 592
3 440 411
R
2014
(7 466)
998 517
112 320
15 323
186 539
121 795
90 675
30 644 711 830
R
2014
(774 447)
315 988
Inventory
(1 040 130)
Movements in provisions
10 121
128 701
18 940 851
Changes in working capital:
(Proceeds) / Deficit on sale of assets
Depreciation and amortisation
- Adjustments for:
R
(14 140 674)
(Deficit) / Surplus before taxation
2015
30 644 014 888
1 252 539
22 464
Cash generated from (used in) operations
Land
Payable after five years:
Land
Office equipment
Premises
Payable within two to five years:
208 924
Office equipment
Land
15 323
R
2015
Premises
Payable within one year:
The future minimum lease payments under non-cancellable operating leases for equipment and premises are as follow:
97
16.
-
Adjustments
-
-
- - -
- - - -
76 951 817
26 161 692
50 790 125
76 951 817
70 470 000
2 400 000
4 081 817
Final budget
2015
(1 731 931)
85 043 144
35 893 147
49 149 997
78 317 676
70 470 000
4 558 079
3 289 597
Actual amounts
on comparable
basis
1 731 931
(8 091 327)
(9 731 455)
1 640 128
6 359 396
(4 995 537) (2 158 079)
792 220
Difference
between final
budget and actual
N2: Over expenditure budgeted for due to the approval of the surplus retention by the National Treasury
N1: The budget difference relates to the recognition of non exchange revenue recognised for the payment made by the Department of Arts and Culture to the Department of Public works for the municipal accounts of Freedom Park
Explanation of material difference between the
final budget and actual
Net Receipts/ (payments)
Total Payments
Other expenditure
Materials and bulk purchases
76 951 817
26 161 692
Operating expenses
Finance charges
50 790 125
Employee costs
N2
76 951 817
Total Receipts
Payments
70 470 000
Grant revenue
2 400 000
Approved
Budget
4 081 817
N1
Notes
Investment revenue
Rendering of services
Receipts
Statement of comparison of budget and actual amounts
98
17.
Total Revenues
Total expenses
- (104 112 697)
- 84 978 486
R
2015
Outstanding payments against contracts
4 015 300
Net cash flows
Investing
(9 563 830)
-
- - - - - - -
- - - - (6 660 810)
Less: Total payments made until 31 March
-
- - - - Net cash flows
Financing
2015
(6 660 811)
- - - (6 660 810)
Investing
13 579 130
Net cash flows
from Operating
- (6 660 811)
Financing
2015
Value of total contracts
Already contracted for but not provided for (not completed):
Capital Commitments
Commitments
Actual amount in the financial statements
Entity differences
- (19 069 553)
(85 043 144)
- 6 660 810
78 317 676
Timing differences
Basis difference (Accounting)
Actual amount on comparable basis
as presented in the budget and actual
comparative statement
Reconciliation
3 440 411
- Entity differences
Actual amount in the cash flow
- Timing differences
10 165 879
Operating
Basis difference
(6 725 468)
Reconciliation
Actual amount on comparable basis as presented in the budget and actual
comparative statement
4 008 433
(11 368 495)
15 376 928
R
2014
(14 140 674)
- - (12 408 743)
(1731 931)
Total
(9 881 210)
- - (3 155 742)
(6 725 468)
Total
99
19.
18.
R
70 470 000
Department of Arts and Culture: Operating grant
- National Lotteries Board
12 587 563
- - 70 735 016
R
2014
Financial assets: Cash, trade and other receivables
Categories of financial instruments
Operational risk is the risk of loss arising from system failure, human error or external events. When controls fail to perform, operational risk can cause damage to
reputation, have legal or regulatory implications or can lead to financial loss. The Park cannot expect to eliminate all operational risks, but by initiating a rigorous
control framework and by monitoring and responding to potential risk, the Park is able to manage the risk. Controls include effective segregation of duties, access
control, authorisation and reconciliation procedures, employee education and assessment processes.
Operational risk
In the course of the Park’s operations it is exposed to credit, liquidity and market risk. The Park has developed a comprehensive Risk Strategy in terms of Treasury
Regulation 28.1 in order to monitor and control these risks. Internal Audit Function reports quarterly to the Audit and Risk Committee, and independent body that
monitors risks and policies implemented to mitigate risk exposures. It should be noted that financial instrument exposure to risk is minimal. The risk management
process relating to each of these risks is discussed under the headings below.
Financial instruments
Refer to key management disclosure. Note 12
- Department of Tourism: Operational grant
Department of Arts and Culture: Operational grant for service in kind (Municipal account paid for on behalf of
Freedom Park)
4 993 537
2015
Related party transactions
Department of Arts and Culture as the Executive Authority.
Relationships
Related parties
100
2015
9,25
%
Change in prime rate
91 461 770
R
2015
100 324 109
R
2014
Trade payables
Financial Liabilities
R
4 229 163
2015
R
5 269 293
2014
The Park manages liquidity risk through proper management of working capital, capital expenditure and actual versus forecast cash flows and its cash management policy. Adequate reserves and liquid resources are also maintained.
Liquidity risk
100 827 052
502 943
100 324 109
R
92 014 852
2014
91 461 770
R
2015
553 082
Financial Assets
Credit risk arises from cash and cash equivalents and deposits with banks as well as credit exposures to customers, including outstanding receivables. Financial
assets, which potentially subject the Park to the risk of non performance by counter parties consist mainly of cash. The Park limits its treasury counter party exposure by only dealing with well established financial institutions approved by National Treasury.
Credit risk
Financial Assets
The museum has interest bearing assets and the income and operating cash flows are subsequently dependent on the changes in the market interest rate. This risk
is the potential financial loss as a result of adverse movement in interest rates that affects the value of receivables and bank balances. Nominal interest rate risk can
be split into real interest rate risk and inflation risk. Interest rate risk is managed by investing funds in highly liquid call accounts, at reputable financial institutions,
earning market related interest.
Market risk
Financial liabilities: Trade and other payables
101
22.
21.
20.
Performance Bonus
Nature
Finance Department: CFO
Lodged in
879 142
Fruitless and wasteful expenditure awaiting condonation
Details of current fruitless and wasteful expenditure:
(5 074)
Less: Amounts recoverable
- 669 061
Add: Fruitless and wasteful - current year
Less: Amounts condoned
215 155
R
2015
Opening balance
Fruitless and wasteful expenditure
R
2014
215 155
- 215 155
- R 381 561
Potential liability
The performance review committee did not made a final review of the performance outcomes for 2014/2015. The uncertainty arises due to limited funding
being available after operational grant reductions. Management is in talks with the Union to forego performance bonusses. 0.99% of actual basic salaries
were applied as an estimate
Details:
1 Freedom Park Staff
Parties
The contingent liabilities are in respect of contractual or service related claims, as well as labour related claims arising in the ordinary course of business
and comprise of:
Contingent liabilities
Freedom Park is a schedule 3A listed entity as well as a registered Cultural Institution that will always be dependent on state for subsidy. The statement of
financial position do however indicate that the total liabilities exceed to current assets, however this is only an indication of an unfavourable liquidity ratio and does
not affect the basis of preparation. The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and
commitments will occur in the ordinary course of business.
Liquidity
102
23.
The Council of Freedom Park elected an ad hoc committee (of Counicl members) to appoint a forensic investigator for
allegations of fraud and misconduct against the previous CEO. The appointment of the ad hoc committee was required
due to the fact that the normal bid structures involved mangagment which may not get invovled in the process to ensure
objectivity in the process is maintained. Although the ad hoc committee motivated for deviation it was identified by the AGSA
that the services provider scoring the highest points was not selected and grounds not to select the tender with the highest
points are not sufficiently justifiable. However this was subsequently ratified by the Council. Incident
399 000
Irregular Expenditure awaiting condonation
Details of Irregular Expenditure not recoverable (not condoned) - 2015
- - - 399 000
- Less: Amounts recoverable (not condoned)
R
Amount not recoverable. Not condoned
The amount relates to procurement made in the 2010/11
financial year. An investigation was launched to determine
whether the supplier delivered as per contractual
requirement. Legal proceedings followed without successful
conclusion on the matter. It was determined that to incur any
additional cost relating to legal proceeding would possibly
lead to additional fruitless and wasteful expenditure
2015
To be investigated
Amount recovered
Fine for late payment to SARS
Flight missed by employee.
Amount recovered
Investigation ongoing.
Not condoned
Fines for late payment to SARS. Attempts for write off not
sucessful. Majority of penalties due to timing difference
between payment released and reflecting in SARS bank
account.
Interfaith member incurred a traffic fine.
Action
Description
Less: Amounts not recoverable (not condoned)
Less: Amounts condoned
Add: Irregular Expenditure - current year
Opening balance
Irregular Expenditure
657 620
6 617
SARS
Underpressure Agency
4 824
250
214 905
Amount R
SAA
Traffic fines (Opening balance)
SARS (Opening balance)
Supplier
Amount R
R
2014
No
Yes
Yes
Yes
No
-
- - - - 399 000
Recoverable
103
R
- Increase in Heritage Assets
Increase in accumulated surplus
- Decrease in accumulated surplus
- - Increase in trade and other payables
Decrease in retained earnings
Statement of financial position
- Increase in operational expenditure
Statement of financial performance
2 Accounted for in the incorrect accounting period
- Statement of financial position
1 Hertigate assets
Effect on 31 March 2013
Transactions related to various expenditure accounts were recorded in the incorrect financial period
2
2015
Accounting for Heritage Assets
1
Correction of error/Implementation of GRAP 103
24.
R
141 863
148 250
148 250
(141 863)
141 863
(141 863)
2014
104
RP 204/2015
ISBN: 978-0-621-43763-8
Freedom Park, Annual Report 2014/2015

Annual Report - National Government of South Africa

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