an agency of the Department of Arts and Culture

REGISTERED OFFICE , DF Malan Street, 8001

RP275/2012 ISBN: 978-0-621-41236-9 P.O.BOX 4107 CAPE TOWN 8000

Artscape Switchboard 021 410 9800 Fax 021 421 5448 Email [email protected] Website www.artscape.co.za 2011 | 2012

an agency of the ANNUAL REPORT Department of Arts and Culture an agency of the Department of Arts and Culture

VISION To be a vehicle for growth and transformation through the performing arts.

MISSION To facilitate, produce and promote the arts in ways that advance nation building and to establish business partnerships involving all stakeholders.

VALUES • Professionalism • Urgency • Client-centredness • Innovation

LEGISLATIVE MANDATE Artscape was declared a cultural institution in terms of Section 3 of the Cultural Institutions Act, 1998 (Act No. 119 of 1998) on 1 April 2003. Effective from this date, Artscape became subject to the Public Finance Management Act, 1999 (Act No. 1 of 1999). Artscape is listed as a Schedule 3A (national entity) under the Public Finance Management Act, 1999 (Act No. 1 of 1999). contents

SUBMISSION TO THE EXECUTIVE AUTHORITY 2 CEO’S REPORT 4 MANAGEMENT 5 ARTISTIC AND OPERATIONAL OVERVIEW 6 PRODUCTIONS AND EVENTS 7 STRATEGIC PLAN REVIEW 11 HUMAN RESOURCES MANAGEMENT 19 OVERVIEW OF FINANCIAL STATEMENTS 21 REPORT OF THE AUDIT AND RISK COMMITTEE 23 REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT 24 ANNUAL FINANCIAL STATEMENTS 26 ACKNOWLEDGEMENTS 45

Somebody to Love Submission to the Executive Authority Minister, it is with great pleasure that I submit the 2012 Annual Report on behalf of Artscape, refl ecting on its activities in accordance with the provisions of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA).

CORPORATE GOVERNANCE

The Artscape Council and Management remain The Human Resources Committee tirelessly committed to the principles of good corporate monitored employee-related policies and governance as prescribed by the King III practices. Over the past year the staff vacancy Report. The Artscape team strives to uphold the rate was reduced by 2%. Artscape achieved highest standards of professionalism, integrity further progress with its set targets for staff and ethics. We are satisfi ed that the institution demographics. Three employees completed has applied adequate corporate practices of the University of Stellenbosch Management transparency, integrity and accountability for Development Programme, two of whom plan the year. to undergo further training. A total of 23 staff members attended various external courses. The Council continued its risk management oversight through the Audit and Risk Committee. Council met four times during the review period The Disaster Management Plan was tested by and implemented systems for internal control, means of a comprehensive fi re drill at Artscape risk management, budgets and strategic plans and an evacuation drill at the Epping workshop. to maximise effi ciencies in fulfi lling its statutory mandate. Urgent matters were dealt with by the Executive Committee and ratifi ed by full Council.

COUNCIL MEMBERS’ ATTENDANCE OF MEETINGS – April 2011 to March 2012

Human Number of Executive Audit and Risk Member Council Resources Meetings Committee Committee Committee 4 Meetings 2 Meetings 3 Meetings 2 Meetings *Basson, N 1 of 1 1 of 1 N/A N/A N/A Benjamin-Swales, R 9 of 9 4 of 4 2 of 2 3 of 3 N/A **Biko, B 0 of 2 0 of 2 N/A N/A N/A Cloete-Hopkins, D 5 of 5 4 of 4 1 of 1 N/A N/A *Figaji, B 3 of 3 1 of 1 N/A 2 of 2 N/A **Fikeni, S (Chairperson) 4 of 6 3 of 4 1 of 2 N/A N/A **Horne, A 2 of 4 2 of 4 N/A N/A N/A *Khan, B 1 of 3 1 of 1 N/A 0 of 2 N/A **Losper, B 3 of 5 2 of 4 N/A 1 of 1 N/A **Lucouw, M 2 of 4 2 of 4 N/A N/A N/A Mazwi-Tanga, L 4 of 6 2 of 4 N/A N/A 2 of 2 Mtetwa, N (Deputy Chairperson) 5 of 6 3 of 4 2 of 2 N/A N/A **Muyanga, N 3 of 5 2 of 4 N/A N/A 1 of 1 *Ngaba, S 0 of 2 0 of 4 N/A N/A N/A Tsukudu, T 6 of 8 2 of 4 2 of 2 N/A 2 of 2

*Until 31 July 2011 **From 1 August 2011

2 ARTSCAPE ANNUAL REPORT 2011 • 2012

High Schools Drama Fesstival !AÏA “From cave to sky”

Orchestra Ensemble National Youth Music Competition 2011

STATEMENT OF RESPONSIBILITY

The PFMA requires Artscape to keep full and In the opinion of Council, the annual fi nancial proper records of its fi nancial affairs. statements fairly present the fi nancial position and fi nancial performance of Artscape as at The fi nancial statements for the year ended 31 March 2012, and the Code of Corporate 31 March 2012 as set out on pages 28 to 42 Practices and Conduct has been adhered to. were submitted for auditing on 31 May 2012. Human Number of Executive Audit and Risk Artscape, has, once again received an The new Council, which assumed its position on Member Council Resources Meetings Committee Committee unqualifi ed audit report from the Auditor-General. 1 August 2011, is grateful for the well-managed Committee entity that it inherited from the previous Council. 4 Meetings 2 Meetings 3 Meetings 2 Meetings Sound management and good corporate By building on this solid foundation, the new *Basson, N 1 of 1 1 of 1 N/A N/A N/A governance ensured optimal cost effi ciency and Council was able to devise clear strategies on Benjamin-Swales, R 9 of 9 4 of 4 2 of 2 3 of 3 N/A productivity, enabling Artscape to report a surplus how to steer this successful ship for further **Biko, B 0 of 2 0 of 2 N/A N/A N/A of R55 million for the 2011/12 fi nancial year. growth and development to the advantage of the Cloete-Hopkins, D 5 of 5 4 of 4 1 of 1 N/A N/A entire country. *Figaji, B 3 of 3 1 of 1 N/A 2 of 2 N/A In view of its current sound fi nancial position, **Fikeni, S (Chairperson) 4 of 6 3 of 4 1 of 2 N/A N/A Council has every reason to believe that I would like to record my deep gratitude **Horne, A 2 of 4 2 of 4 N/A N/A N/A Artscape will be a going concern in the year and appreciation to all Council members, *Khan, B 1 of 3 1 of 1 N/A 0 of 2 N/A ahead. It has thus continued to adopt the management and staff for their continued ‘going concern’ basis in preparing the fi nancial dedication and hard work to build Artscape into a **Losper, B 3 of 5 2 of 4 N/A 1 of 1 N/A statements. crown jewel of arts and culture in Africa. **Lucouw, M 2 of 4 2 of 4 N/A N/A N/A Mazwi-Tanga, L 4 of 6 2 of 4 N/A N/A 2 of 2 Dr Somadoda Fikeni Mtetwa, N (Deputy Chairperson) 5 of 6 3 of 4 2 of 2 N/A N/A CHAIRPERSON **Muyanga, N 3 of 5 2 of 4 N/A N/A 1 of 1 *Ngaba, S 0 of 2 0 of 4 N/A N/A N/A Tsukudu, T 6 of 8 2 of 4 2 of 2 N/A 2 of 2

ARTSCAPE ANNUAL REPORT 2011 •3 2012 3

Brotherhood Seashells

Youth Jazz Festival CEO’S REPORT As the oldest State-owned theatre complex in the country, the Artscape Theatre Centre strives to remain at the forefront of responding to the challenges facing ’s blossoming democracy.

As such, it is constantly adapting its business My management team and I wish to strategies to address the national imperatives to express our warm appreciation to the build a robust economy, create job opportunities, Artscape Council, the National Department promote social cohesion and transfer skills for of Arts and Culture, the Western Cape Provincial sustainable growth, especially in the arts and Government, our dedicated staff, and our culture sector. generous sponsors in helping Artscape achieve its goal of becoming a leading performing arts During 2011/12, Artscape presented 750 centre on the African continent. performances and events, employed 515 staff and provided facilities and support for a further 816 jobs in the performing arts and culture sector. Its total direct and indirect contribution to the national Gross Domestic Product (GDP) is estimated at about R541 million. Michael Maas CEO Over the past year, over 317 000 people visited the theatre centre to attend a multitude of events, such as stage productions, community gatherings and other culturally enriching activities.

As part of its ongoing skills transfer and training programmes, fi ve trainees took part in the one-year University of Stellenbosch accredited technical training programme. The students who have graduated from the programme have all managed to fi nd full-time employment as theatre practitioners across South Africa.

The wardrobe, which renders a specialised service to stage productions, this year, took in three interns and two trainees. Job shadowing opportunities were also offered to several learners and students. Four MBA students from Belgium based their practical research on Artscape.

Artscape also formed a cooperative agreement with the of Cape Town and established new cultural links with various countries. Mike van Graan was appointed as associate playwright, producing new South African work that is performed to much acclaim. National Youth Music Competition 2011

4 National Youth Music Competition 2011 ARTSCAPE ANNUAL REPORT 2011 • 2012 Michael Maas Chief Executive Offi cer

Pieter Lourens Alastair Cockburn Marlene le Roux Mzwakhe (Sticks) Lungisani Nkomo Chief Financial Director: Operations Director: Audience Mdidimba Manager: Human Offi cer & Planning Development & Manager: Resources Education Indigenous Arts

Finance Stage Services Audience Community Arts Development Organisations

Decor Studio Information Technology Resource Centre Wardrobe & Hiring Compliance School Liaison

Maintenance Supply Chain Management Rural Outreach Planning

Support Services Theatre Management

Transport Marketing & Box Offi ce Communications Offi ce Services Front of House Drama

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Outsourced Services (Cleaning/Catering)

Security

ARTSCAPE ANNUAL REPORT 2011 •5 2012 5 Artistic and Operational Overview

Over the past year, Artscape’s space optimisation initiatives started to bear fruit. The increased seating capacity in the House provided economies of scale to the institution, as well as to outside hirers. This helped the institution to fulfi l its mandate of being a vehicle of economic growth and social transformation through the arts.

An innovative product mix and skilled technical SOCIAL COHESION staff helped to grow new audiences, and expose The universal language of the performing historically neglected performing genres by arts offers an ideal vehicle to promote social staging internationally acclaimed shows that cohesion. The Artscape product mix represents contributed towards revenue generation. various genres that serve to bridge cultural divides and age gaps. SPACE OPTIMISATION During the year under review, Artscape Over the past year the institution hosted embarked on the biggest construction venture leading international stage shows such as The since the offi cial opening of the Theatre Centre Phantom of the Opera and The Nutcracker on in 1971. These included the refurbishment Ice. In addition, it also staged performances of the restaurant and dressing rooms, the that refl ected the diverse arts and cultural mix reconfi guration of existing areas to relocate of the Western Cape and South Africa as a the manufacturing wardrobe from its satellite whole. These range from indigenous music location, as well as the upgrading of the to crossover productions where classical and reception foyer at the stage door. emerging arts were showcased.

Successful building works included two new SKILLS DEVELOPMENT fl oors of offi ce and rehearsal room space on the Five trainees completed the one-year technical roof of the theatre wing. The additional space training course that is accredited by the will be used to accommodate the Audience University of Stellenbosch. These trainees Development and Education and Indigenous earned a SAQA-accredited qualifi cation, Arts departments, the Jazzart Theatre equalling a NQF level 6 qualifi cation. Other Dance Company, the Siyasanga Cape Town initiatives to stimulate development and skills Theatre Company, the Artscape New Writing transfer include the Acting Programme, as well as additional rehearsal Competition, the Artscape National Youth Music rooms. Competition, the annual youth jazz and classical music festivals, the High School Drama Festival RURAL OUTREACH and the annual Schools Arts Festival during Artscape continued its endeavours to take which 92 schools from all over the Province theatre to the people by staging a fully-fl edged participated in a two-week kaleidoscope of production in a rural area. These outreach performing arts. programmes create opportunities for nation building by bringing the pride of the performing The synergy of these programmes contributes arts to communities who would otherwise to job creation and helps nurtures a love for the never have access to live theatre. During performing arts. the past year, about 1 800 residents of the Theewaterskloof region attended an 80-minute production of Kunstetreffers. Complementing the show, were various workshops which provided career guidance and skills transfer opportunities to some 660 learners from 11 local schools.

6 ARTSCAPE ANNUAL REPORT 2011 • 2012

La Traviata Swan Lake

Gianni Schicchi High School Drama Festival PRODUCTIONS AND EVENTS

1 APRIL 2011 TO 31 MARCH 2012 AUDIENCE DEVELOPMENT AND EDUCATION GENRE NO OF NO OF DEPARTMENT EVENTS PERFORMANCES EVENT VENUE Audience Development & Education Projects 47 N/A 2012 Projects Launch Theatre Foyer & Piazza Concerts 50 67 Art Exhibition Offi cial Opening Marble Foyer *Corporate Events 7 N/A Arts Administration Workshop iSibaya Dance 30 142 Book Launch Theatre Foyer Drama/Comedy 45 210 Brundibar Exhibition Theatre Foyer *Exhibitions 30 N/A Brundibar Workshops Various Venues *Film and Photo Shoots 45 N/A Climate Change Workshop Marble Foyer Films 33 46 Department of Cultural Affairs and Sport funding briefi ng Resource Centre *Hospitality Events 77 N/A Department of Cultural Affairs and Sport Workshop VIP Room Musicals 9 128 Exchange Student Programme Theatre Foyer Opera 9 29 French Consular Function for !AÏA Theatre Foyer Other Events (including meetings) 296 N/A High Schools Drama Festival Director’s Workshop Arena *Rehearsal Room Hire 17 N/A How to Make Money from Music Workshop iSibaya Variety Shows 8 24 Humanities Workshop iSibaya Youth Theatre 11 104 iKapa Jazz Movement Workshop iSibaya TOTAL 714 750 Info Connectionz Arena *Corporate events, exhibitions, fi lm and photo shoots, hospitality events and rehearsal room iSiXhosa Conference Theatre hire not included below. IT Skillz Workshop Resource Centre Jason Cock Performance Opera House LOK Symposium Chandelier Foyer Lunch for Set Works Companies Opera Bar Member Anniversary Function Resource Centre Music Industry Workshops and Exhibition Opera Bar & Theatre Foyers Organisational Development Workshops Theatre Foyer & Opera Bar MUSICALS Performance of Field Bands Piazza PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER Pink Drive Breast Cancer Testing Chandelier Foyer & iSibaya Fiddler on the Roof Opera 21 14,539 Cape Town Gilbert and Play reading Theatre Foyer House Sullivan Society (G&S) Plus Minus Equal Workshop Theatre Godspell Arena 10 889 Pinelands Players Proposal Writing Workshop iSibaya Ibhekile’Evuyazo Arena 5 616 Artscape Raymond Ackerman Academy Entrepreneurship Programme Resource Centre Jesus Christ Superstar Opera 18 14,214 Pieter Toerien Productions Stakeholders Meeting Theatre Foyer House Travelling Poet Exhibition Marble Foyer Le Moulin Rouge Theatre 5 2,604 Carnivals of the Heart Wesgro Meeting / Xhosa Conference Launch iSibaya Never Too Late Theatre 1 377 Darul Islam Primary School WHEAT Trust Awards Theatre Stuur Groete aan Theatre 13 7,033 Stuur Groete Produksies Women’s Festival Activities Various venues Mannetjies Roux World Take a Child to Theatre Day Theatre Foyer The Phantom of the Opera Opera 53 73,357 Pieter Toerien Productions House YES Festival Launch Opera Bar Trein Smash Chandelier 2 184 SOF YES Festival Workshop X 5 Chandelier Foyer Foyer Youth Day Workshop Chandelier Foyer

DANCE PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER CAPA Student Choreography Theatre 1 115 Cape Academy of Performing Arts (CAPA) Cape Dance Company Theatre 8 1,131 Cape Dance Company Cape Town International Ballet Competition Opera House 6 1,961 Cape Town International Ballet Competition Colour Contrast Theatre 2 596 Artscape & Renovation Dance Company Coppelia Theatre 10 3,567 CTCB Dance in the City Opera House 1 624 CTCB Dance International Theatre 7 2,066 CTCB Dancers for Dancers Opera House 1 1,399 CTCB & Theatre Dance Association Danscape Theatre 5 1,359 Jazzart Dance Theatre Dream Catcher Theatre 4 1,137 CAPA Fuse Arena 3 228 Artscape & Ikapa Dance Theatre Genée Dance Challenge Theatre 1 522 Royal Academy of Dance (RAD) Genée International Ballet Competition Finale Opera House 1 1,448 RAD Genée International Ballet Competition Semi-Finals Theatre 2 941 RAD Hybrid Dancers Piazza 2 30 SOF Jazzart Dance Joint Arena 4 327 Jazzart Dance Theatre Mixing It Up Opera House 2 1,375 Artscape & British Council Poetry in Motion Opera House 5 2,829 CTCB Popcorn! Theatre 3 1,854 Kit Davies School of Ballet Prague Scholarship Competition Opera House 1 383 CTCB Showcase of Dance Theatre 8 3,427 The WP Dance Teachers’ Association Sizodanisa Theatre 1 200 RAD & CTCB Soar Like An Eagle Theatre 3 409 Artscape & Circle of Dance Somebody to Love Theatre 6 1,200 Mzansi Productions Swan Lake Opera House 6 8,018 CTCB The Imperial Russian Ballet - The Nutcracker Theatre 5 2,698 Edouard Miasnikov The Italian Affair Theatre 7 1,993 CTCB The Nutcracker on Ice Opera House 30 39,572 Pieter Toerien Productions Two as One Theatre 1 326 Artscape, Spiral Prods & An Creative Waiting for Rain Theatre 6 868 Jazzart Dance Theatre ARTSCAPE ANNUAL REPORT 2011 •7 2012 7

Swan Lake

Afri-Spaans CONCERTS

PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER Afri-spaans Opera House 2 1,672 Just Imagine Communications Alexander Sinton High School Jazz Extravaganza Opera House 1 306 Artscape Ashley Pienaar Piazza 3 40 Suidoosterfees (SOF) Auriol Hays Chandelier Foyer 2 91 SOF Battle of the Youth Jazz Bands Theatre 1 342 Artscape Ben Schoeman Recital Theatre 1 258 CPO Calvyn Protestant Choral Gala Theatre 1 253 Artscape Cape Philharmonic Youth Orchestra Concert (CPYO) Theatre 1 520 CPO Choral Sounds Theatre 1 270 Artscape Choral Tribute to Madiba (Cape Philharmonic) Theatre 1 627 Artscape Choral Tribute to Madiba (choirs only) Theatre 1 350 Artscape Cool Classic Kids Theatre Foyer Well 2 80 SOF Delft Big Band Theatre 1 228 SOF Die Burger Pops Opera House 1 2,676 Media 24 Die Central Karoo Review Theatre 1 272 SOF Edith Plaatjies Piazza 1 40 SOF Festival Chamber Concert Theatre 1 284 CPO Garden Synagogue Concert Theatre 1 358 Ian Cammisar Ghoema Entertainers Piazza 2 50 SOF Huisgenoot Gospel Concert Opera House 1 1,545 SOF Indigenous Orchestra & Imbira Ensemble Theatre 3 869 Artscape International Opera Gala Opera House 1 1,440 CPO Kaap Rapport / ATKV Choir Competition Opera House 1 1,250 SOF Klassiek Chandelier Foyer 1 87 SOF KykNET vir Mimi Opera House 1 1,261 SOF Loud Piazza 1 30 SOF Loukmann Adams Piazza 1 100 SOF Macassar Mannekoor Piazza 1 40 SOF Miriam Batsashvili Piano Recital Opera Bar 1 120 CPO Monox Piazza 1 40 SOF Music and Praise Poetry Theatre 1 308 Artscape Music of Paraguay Theatre Foyer 1 50 Paraguayan Consulate National Youth Music Competition Finale Theatre 1 414 Artscape Nicodémus Olivier - 5 Years 5 Shows Arena 6 205 Nicodémus Olivier Nubuhle Ketelo Piazza 1 40 SOF Odidiva Chandelier Foyer 2 117 SOF Onderweg Theatre 1 127 Agterplaas Produksies One 4 One Piazza 1 30 SOF Protégé Piazza 1 40 SOF Rachelle Jordaan Piazza 1 40 SOF Ringo Madlingozi Opera House 1 818 SOF Rocco, Kore and Kaapse Band Theatre 1 382 SOF Rock ‘n Rouge Arena 1 109 McDonald Enterprises Sterling EQ and the Tenors Arena 2 250 Five Seasons Entertainment Symphony Concert Opera House 1 1,406 CPO The Voice of Azania Theatre 1 138 Artscape & 25 2 1 Productions Victor Ntoni Tribute Concert Theatre 2 584 Artscape Voices of Cape Town Theatre 1 190 Artscape Western Cape Youth Music Festival Theatre 1 497 Artscape Youth Jazz Festival Theatre 2 794 Artscape

OPERA PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER Amanda Echalaz / Johan Opera House 1 1,419 CTO Botha Gala Concert Brundibar Theatre 5 2,349 Artscape, CTO & Holocaust Centre Die Entführung aus dem Serail Theatre 5 1,714 CTO La Traviata Opera House 5 6,453 CTO Lost in the Stars Theatre 4 1,026 CTO Lunchbox Concert Chandelier Foyer 2 140 CTO Suor Angelica/Gianni Schicchi Theatre 4 1,715 CTO Viva la Mamma Theatre 3 970 SOF

YOUTH THEATRE PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER The Tale of Peter Rabbit Theatre Foyer 12 2,113 Artscape & Well Stagecraft Make Way for Noddy Theatre Foyer 16 3,003 Artscape & Well Stagecraft Vlooi en die Vlieënde Mat Theatre 36 18,000 Artscape & Krazy Katz Schools Arts Festival Theatre 9 2,787 Artscape High Schools Drama Festival Arena 5 404 Artscape Schools Arts Festival Gala Theatre 1 508 Artscape Noddy’s Special Treat Theatre Foyer 13 2,226 Artscape & Well Stagecraft Lollos Theatre 1 30 SOF Liewe Heksie Theatre Foyer 2 100 SOF Well Children’s Theatre Foyer 1 201 Artscape & Well Tales of Little Grey Rabbit Theatre Foyer 8 2,205 Stagecraft Well Tianjin Acrobat Company DRAMA/COMEDY

PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER ‘n Plekkie in die Son Theatre 2 1,043 SOF Amaza Theatre 11 5,351 Artscape Baby Theatre 2 316 SOF Baby Theatre 6 2,940 Artscape Banyana Republic Arena 3 325 Artscape Bash or be Bashed Arena 8 663 Artscape Brief Lives Arena 6 162 Claremont Dramatic Society Productions Brothers in Blood Arena 5 709 Artscape & Mike van Graan Productions Bullets Over Theatre 1 261 SOF Butlers and Blackmail Arena 3 310 Slick ‘n Sleeve Theatre Collective Butlers and Bunny Chows Arena 4 472 Slick ‘n Sleeve Theatre Collective Bye Ma, Jaypee Chandelier Foyer 2 300 SOF CA 12 – 6 Arena 13 750 Siyasanga Cape Town Drama Company (Siyasanga) Careful Arena 15 624 Artscape Casper de Vries Live Opera House 1 1,462 SOF Children of the Mist Arena 5 275 Artscape City of Cape Town Acting Competition Theatre 1 500 Artscape & City of Cape Town Cockroach Arena 1 76 SOF Dit Voel Leeg Arena 5 302 SOF Dress to Impress Arena 4 175 Jeremeo Le Cordeur For Generations Arena 3 252 Artscape Gif Arena 2 186 SOF Groet die Grotoupa Theatre 3 167 Lefra Productions Hol Arena 8 411 Artscape Howzit my Bra Arena 3 264 SOF Jonas Arena 3 230 SOF Krismis van Map Jacobs Theatre 10 4,962 Artscape Madam Touxflouwe Arena 9 489 The Space Behind the Couch Mary and the Conqueror Arena 13 772 Artscape My Naam is Ellen Pakkies Theatre 3 2,060 SOF Nando’s Cape Town Comedy Festival Opera House 8 10,124 Huntalive New Play Readings Arena 1 20 Artscape Other People’s Lives Arena 4 140 Artscape Out of Order Theatre 2 1,000 Grahamstown Foundation Romeo and Juliet Theatre 3 702 Carnivals of the Heart Rose Red Theatre 4 1,000 Grahamstown Foundation Seashells Arena 9 414 Artscape Shakespeare Schools Festival SA Arena 2 236 Educape The Beneficiary Arena 10 337 Artscape The Dogs Must be Crazy Theatre 4 1,000 Grahamstown Foundation The Tragedy of Richard III Theatre 2 1,000 Grahamstown Foundation Uhlazo Arena 1 92 SOF Weskus Drama Festival Arena 2 38 SOF YES Festival Arena 2 245 Artscape YES Festival Finale Theatre 1 375 Artscape

FILMS VARIETY SHOWS PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER PRODUCTION VENUE SHOWS ATTENDANCE PRESENTER Freedom Opera 1 1,474 The Campio Burns A Country for my Daughter iSibaya 2 25 Cape Winelands Film House Group Festival (CWFF) Tianjin Acrobatic Opera 1 1,429 Artscape & Chinese A New World iSibaya 1 9 CWFF Company House Consul Bezness Opera Bar 1 20 Africa Arts Institute Funny Kaap Theatre 3 1,468 Artscape (AAI) & Artscape !AÏA – From the Cave Arena 13 1,394 Artscape & Taliipot Captor Captive iSibaya 1 17 CWFF to the Sky Theatre Co Cinema Komunisto iSibaya 1 9 CWFF I Dream a Dream Theatre 3 1,147 Artscape & VSA Climbing Elements iSibaya 1 11 CWFF (Very Special Arts) Dawn of a New Day iSibaya 1 25 CWFF Close up Magic Arena 1 129 Artscape & College Eggs for Later iSibaya 2 18 CWFF Championships of Magic Estradeiros iSibaya 2 22 CWFF Stage Magic Theatre 1 317 Artscape & College Heritage Opera Bar 1 20 AAI & Artscape Championships of Magic Hip Hop Nafita iSibaya 2 25 CWFF Stars of Comedy and Theatre 1 493 Artscape & College Magic of Magic In my Mother’s Arms iSibaya 2 17 CWFF Karmen Gei Opera Bar 1 20 AAI & Artscape Kinshasa Symphony iSibaya 1 24 CWFF Komeda: Soundtrack for Life iSibaya 1 8 CWFF Le Petite Vendome de Soleil Opera Bar 1 20 AAI & Artscape Life in Stills iSibaya 2 21 CWFF Lucky Opera House 1 743 CWFF Mama Africa iSibaya 1 19 CWFF Mama Goema iSibaya 1 14 CWFF Nannies iSibaya 2 16 CWFF Our School iSibaya 2 16 CWFF Out in the Silence iSibaya 1 9 CWFF Pearls on the Ocean Floor iSibaya 1 8 CWFF Raising Resistance iSibaya 2 18 CWFF Samba Beats iSibaya 2 21 CWFF TAC: Taking Heart iSibaya 2 20 CWFF The Cradock Four iSibaya 1 9 CWFF The Joy iSibaya 1 10 CWFF The Well / Tropical Amsterdam iSibaya 1 8 CWFF Ubuntu Teen Film Screening Arena 1 80 Artscape & Living IT Voices in the Clouds iSibaya 2 16 CWFF War Matador iSibaya 2 29 CWFF OTHER EVENTS

EVENT VENUE DAYS PRESENTER EVENT VENUE DAYS PRESENTER Acting Workshops Opera Bar 5 Siyasanga Lecture demonstration for the University of ORR 1 CPO Aerobics Classes Opera Bar On going CTO the Third Age from Lecture Demonstration: Artistic Gambling Theatre 3 Grahamstown 28/03/12 Foundation Africa 101 – lectures and play readings Foyers, VIP 6 AAI & Artscape Lecture Demonstration: Shakespeare is Arena 3 Grahamstown Room & Greek to me Foundation iSibaya Lecture for Die Entführung aus dem Serail Theatre Foyer 1 CTO After show party for Die KykNET Fiestas Chandelier 1 KykNET Lighting Workshop I VIP Room 2 Artscape & Electrosonic Foyer Lighting Workshop II iSibaya 4 Artscape & Electrosonic After show party for KykNET vir Mimi Arts Café 1 KykNET Lunch venue for delegates attending meeting Marble Foyer 1 Department of Public After show party for Viva la Mamma Arts Café 1 Wagner Society Works and Transport Annual Maintenance Arena 13 Artscape Make up workshop for Fiddler on the Roof RR308 1 G & S Annual Maintenance Opera House 16 Artscape Master Class for the SA Figure Skating Opera House 2 Imperial Ice Stars Annual Maintenance and installation of new Theatre 2 Artscape Association dimmers Mayoral speech Piazza 1 City of Cape Town Arts and Poetry Awards Opera Bar 1 City of Cape Town Media Briefi ng for Subsiding of the Nile Opera Bar 1 City of Cape Town Artscape National Youth Music Competition: Theatre 5 Artscape art work Elimination Media interview with Shammy Isaacs Opera Bar 1 Media 24 Artscape Precinct presentation iSibaya 1 Artscape & GAPP Media Interviews for The Phantom of the iSibaya 1 Pieter Toerien Architects Opera Productions Artscape Wellness Day Chandelier 1 Artscape & Discovery Media Talk for Lost in the Stars Theatre Foyer 1 CTO Foyer & VIP Health Room Meetings Various 133 Various Institutions Venues Artscape Workshop Opera Bar 4 Artscape Melantho Workshop Opera Bar & 2 CTO Auditions Opera House 2 CTO ORR Auditions ORR 11 Artscape, CTO, CPO Memorial Services Marble Foyer 5 Artscape & CPYO & Opera Bar Auditions Theatre 2 CTO Musical Theatre Summer School RR301 11 Duane Alexander and Auditions for Brothers in Blood Opera Bar / 2 Mike van Graan Anton Luitingh RR301 Productions Musical Theatre Summer School Showcase Arena 1 Duane Alexander and Auditions for Brundibar RR308 1 CTO Anton Luitingh Auditions for Green Man Flashing ORR 2 Artscape & Mike van Nando’s pre show promotions Chandelier 6 Nando’s & Huntalive Graan Productions Foyer Auditions for La Traviata L4 1 CTO Nedbank feedback session for Artscape Staff iSibaya 1 Artscape & Nedbank Auditions for Noddy Theatre Foyer 1 Artscape & Stagecraft Noise test Theatre 1 Boshard Construction Auditions for Noddy’s Special Treat Theatre Foyer 1 Stagecraft Old Mutual National Choir Festival Marble Foyer, 1 Old Mutual Auditions for The Comedy of Errors RR301 2 Artscape / Maynardville Workshops iSibaya & Theatre Trust RR301 Baby Shower for staff Opera Bar 2 Artscape Performance Management Workshop Planning 17 Artscape Boardroom & Ballet Workshops Opera House 1 CTCB Opera Bar Belgian Students Business Presentation iSibaya 1 Artscape & Vlerick Performance of the CPO Masidlale Chandelier 1 CPO Leuven Gent Ensemble Foyer Management School Pink Drive mobile testing Piazza 3 Artscape Birthday Party Opera Bar 1 Timothy Harding Prayer Rooms iSibaya & VIP 1 Darul Islam Primary BMW Car Display Piazza 1 Auto Atlantic Room School Book Launch for Mitchell’s Plain se Mense Theatre Foyer 1 SOF Pre show lectures ORR 25 CPO, CTO, SOF Call back auditions for The Comedy of Errors ORR & 6 Artscape / Maynardville Pre show talks for Brundibar ORR & 4 CTO iSibaya Theatre Trust Theatre Foyer CAPA Graduation Theatre 1 CAPA Pre show talks for Die Entführung aus dem Opera Bar 7 CTO Catering unit for fi lm shoot Piazza 1 Egg Films Serail Chandelier bulb check and maintenance Chandelier 5 Artscape Private Party Stage Café 1 Democratic Alliance Foyer Record & DVD sale Marble Foyer 6 Dynamite Music Children’s birthday party Theatre Bar 1 Helen Johns Record & DVD sales Theatre Foyer 45 Dynamite Music City of Cape Town Interfaith and Mayoral Opera Bar & 1 City of Cape Town Rehearsals for CTO’s National Tour Opera Bar 5 CTO Function iSibaya Rehearsals for Grahamstown Festival Opera House 4 CTCB Colin Lee master class ORR 1 CTO production of Swan Lake CWFF Offi cial Opening and Party Opera House 1 CWFF & City of Cape Rehearsals for Mandela Trilogy Opera House 9 CTO & Piazza Town Rehearsals for Rewind Cantata Theatre Foyer 2 CTO Die Burger Schools Tours All available 52 Die Burger venues Rehearsals for WeCCMA Choirs ORR 1 CPO Die KykNET Fiestas Opera House 4 KykNET Removal of assets Stage Cafe 2 Headline Leisure Management Drama Auditions Arena 1 Artscape Rig and view Sithengi movie screen Opera House 1 CWFF Drama Auditions iSibaya 1 Artscape Risk Assessment Workshop iSibaya 1 Artscape Drama Workshop RR301 1 SOF RSG Tent Piazza 5 SOF Drumming Workshop Piazza 1 High School Screening of Fiddler on the Roof archival Theatre 1 G & S End of Financial Year Function Opera Bar 1 Artscape DVD Exhibition offi cial opening Marble Foyer 1 SOF Script read through for Yeoman of the Guard VIP Room 1 G & S Exhibition opening Marble Foyer 1 Gerda Louw Showcase performance of Is it Because RR308 1 Mike van Graan / Fairy and Princes Parade Theatre 1 CTCB I’m Jack Article 27 Film Writer’s Workshop iSibaya 2 The Writing Studio Staff Interviews VIP Room 1 Artscape Final dress rehearsal with audience ORR 1 Artscape Stage and Machinery Maintenance Opera House 45 Artscape Financial Education Workshop Opera Bar 3 Artscape Street Art and Hip Hop Trade Display Chandelier 3 Artscape & British Financial Education Workshop iSibaya 1 Artscape Foyer Council Financial Education Workshop VIP Room 1 Artscape Suidooster Suite iSibaya 6 SOF Financial Education Workshop Chandelier 1 Artscape Technical inspection for The Phantom of Opera House 2 Pieter Toerien Foyer the Opera Productions Christmas Lunch Theatre Bar 1 Fine Music Radio Technical Trainees Graduation Opera Bar 1 Artscape George Stevens lecture Opera Bar 1 CTO Technical Trainees Welcome and Induction iSibaya 1 Artscape Gianni Schicchi/Suor Angelica Lecture Theatre & 1 CTO Tour of Building Various 5 Various Institutions Chandelier Venues Foyer Two as One Workshops Theatre Foyer 1 Spiral Productions & An Health and Wellness for staff VIP Room 1 Artscape & Discovery & RR301 Creative Health Values Workshop Opera Bar 1 Artscape Holding area for fi lm extras Chandelier 1 Moonlighting Films Wellness Day in conjunction with Chandelier 1 Artscape Foyer International AIDS Day Foyer & Holding space for fi lm extras Marble Foyer 1 Moonlighting Films Opera Bar Insight evening for Dance International Theatre 1 CTCB Western Cape Schools Festival Offi cial Theatre 2 Grahamstown Opening Foundation 10 Insight evening for The Italian Affair Theatre 1 CTCB ARTSCAPE ANNUAL REPORT 2011 • 2012 Western Cape Schools Festival Workshops Various 4 Grahamstown Interviews for Stuur Groete aan Mannetjies Chandelier 1 Taxi Radio Venues Foundation Roux Foyer Yoga Class ORR 68 CPO Kuier Valentynsdans Chandelier 1 SOF Foyer Zumba Class Opera Bar 34 Artscape Laughter Workshop Opera Bar 1 Artscape Zumba Class RR308 1 Artscape Strategic Plan Review PREDETERMINED OBJECTIVES – 31 MARCH 2012 KEY MANDATE On 1 April 2003, the Department of Arts & Culture declared Artscape a Cultural Institution in terms of the Cultural Institutions Act, 1998 (Act No. 119 of 1998).

Artscape manages the Artscape Theatre Centre which belongs to the Provincial Government of the Western Cape. Artscape is a facilitator of stage performances, community arts activities, training programmes, as well as audience development initiatives to sustain all forms of the performing arts. It is home to community arts programmes and houses major independent performing arts companies in the Western Cape.

1 INCOME 1.1 Indicator: Revenue generated Defi nition: Revenue is generated through rental income, box offi ce takings, sponsorships, and interest on short term investments. Unit of measure: Rand value Budget: R13.994m Actual: R19.932m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target Venue rentals budget R4.190m Actual: R 4.794m To maximise income To achieve maximum Increased venue rental and • Increase venue rental rates by • The venue rental rates for 2011 were from rental of venues. bookings for venues. revised venue rental rates to at least 5% per annum. revised by an average of 11%. accommodate infl ation and other • Improvement of 5% per annum • Venue rental increased by 21% to market variables. on the baseline of 2010/2011. R4.794m. Overall, the target for venue rental was achieved. Sponsorship budget R3.667m Actual: R 3.418m To obtain long- To negotiate long- • A writing programme to • Source annual sponsorship • R1.718m was raised as general term, sustainable term, sustainable develop and produce new of R2m for Artscape’s sponsorship income. As no funding sponsorships for the sponsorships of performing arts products. audience development for the internship programme was Resource Centre, mutual benefi t for • Dedicated training and outreach programmes, obtained, the target for sponsorship Writing Programme, Artscape and the programmes for arts drama productions, the New income was not achieved. training initiatives sponsors. practitioners. Writing programme, internship • Achieved. The Lotteries committed and other dedicated • A well funded artistic programme and the Resource R5m to Artscape - spread over 3 performing arts programme. Centre projects. years. The fi rst tranche of R1.7m programmes and • Secure lottery funding for artistic was received this year. projects. programmes of R5m spread over 3 years. Marketing and advertising budget R1.486m Actual: R1.072m To generate additional To offer marketing Increased income from • Generate revenue from • Additional revenue is earned through income by offering and advertising marketing and advertising the provision of marketing, advertising and publicity services. marketing and services to venue services. advertising and other publicity • Not achieved. Only 84% of advertising services to hirers. services. the baseline of 2010/2011 was venue hirers. • Annual improvement of 5% on achieved, due to declining demand the 2010/2011 baseline. from productions requiring such services. Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target Other income budget R3.376m Actual: R8.793m To increase production To present artistic Earn additional income from • Generate additional revenue • Additional revenue was earned from revenue productions and box offi ce and other production from box offi ce, programme box offi ce, programme sales and projects with the income sales and other production other production related income. potential to generate related income. • Achieved. Production revenue additional income. • Improvement of 5% per annum increased by 13% to R2.812m. on the 2010/2011 baseline. To increase revenue To create an income Generate suffi cient revenue • Increase revenue from the • Additional revenue was earned from manufacturing and stream from other to ensure the future viability of provision of wardrobe services through the provision of wardrobe other related industries. services. the wardrobe and other service to artistic producers, hiring services to artistic producers, offerings. revenue and other services that hiring, and other services (such as generate revenue. transport). • Improvement of 5% per annum • Achieved. Other revenue increased on the 2010/2011 baseline. due to the disclosure of revenue from catering services. Investment Income budget R1.275m Actual: R1.855m To increase investment To invest funds not Increase and maintain the Maintain investment income Achieved. Interest revenue earned income. immediately required, current level of investment above the 2010/2011 baseline. was 71% above the 2010/2011 in interest-bearing income. baseline. accounts.

ARTSCAPE ANNUAL REPORT 2011 • 2012 11

Fiddler on the roof

Stars of Comedy and Magic The Nutcracker on Ice Baby 2 EXPENDITURE 2.1 Indicator: Marketing and advertising Defi nition: Marketing, publicity and advertising expenditure necessary to ensure Artscape’s achievement of its vision of excellence, growth and transformation, and revenue targets. Unit of measure: Rand value and as per service delivery indicator and target Budget: R2.378m Actual: R2.697m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To ensure public To increase brand Coverage in print and electronic • Produce a quarterly brochure • Achieved. 43 000 brochures were awareness of Artscape, awareness through media to publish productions on productions and events at distributed quarterly. its products and correct positioning in and events. Artscape. • Achieved. Regular listings appeared services through print and electronic • Weekly listing of theatre in Die Burger, Argus, Cape Times public relations and media. programmes in the main and community newspapers. communication. regional newspapers. • Achieved. The website was updated • Maintain a website containing regularly with the latest news and current and forthcoming events. upcoming events and content. • Issue a monthly e-newsletter to • Achieved. An electronic newsletter all website subscribers. was regularly circulated to over • Utilise social networks for 4 000 website subscribers. marketing and advertising • Achieved. Facebook and Twitter purposes. were used to market and advertise productions. Currently, Artscape has 2 498 Facebook members and 597 Twitter followers.

2.2 Indicator: Maintenance Defi nition: Maintenance expenditure to ensure that Artscape’s physical infrastructure and equipment are properly maintained. Unit of measure: Rand value and as per service delivery indicator and target Budget: R0.610m Actual: R4.168m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To maintain the Ongoing Annual maintenance of Full maintenance of each theatre • Achieved. Routine maintenance physical infrastructure refurbishment infrastructure in order to once a year during a scheduled of building fi xtures and fi ttings took and equipment to and maintenance minimise disruptions due to ‘dark period’. place as the need arose and when no the highest possible of the physical equipment and plant breakdown. productions were held in the theatres. standards. infrastructure. In addition to routine maintenance, new dimmers were installed in the theatre venue. Major refurbishment took place at facilities such as the restaurant, marble foyer, dressing rooms and reconfi guration of existing spaces in order to relocate the manufacturing wardrobe from its satellite location to the Artscape building as well as upgrading of the stage door reception foyer.

2.3 Indicator: Stage services Defi nition: Departmental spend on all aspects of stage services, including sound and lighting, to ensure excellence in the presentation of artistic productions, through skilled technical staff. Unit of measure: Rand value and as per service delivery indicator and target Budget (Department): R5.539m Actual: R5.429m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To ensure reliable, To enhance • Provide stage equipment, • Successful staging of • During the current year 714 effective and effi cient appropriate service infrastructure and services to productions meeting the productions/ events were staged, stage services within provision to the enable the presentation of any expectations of producers or including “Phantom of the Opera”, and beyond the desired quality and artistic production. hirer. “Nutcracker on Ice” and the annual Artscape facility. safety standards • Employ highly skilled and • Evaluation of the performance “Suidoosterfees”. The annual through an effi cient technically competent stage of technical staff upon Shakespeare production – “Comedy and productive services staff. completion of major of Errors” took place at the service delivery. productions. Maynardville Open Air Theatre. • The Stage Manager completed a performance report for productions per performance. Overall, this target was achieved.

2.4 Indicator: Security Defi nition: Expenditure necessary to ensure security of Artscape facilities, staff and patrons. Unit of measure: Rand value and as per service delivery indicator and target Budget: R3.4m Actual: R3.220m

12 ARTSCAPE ANNUAL REPORT 2011 • 2012

Tianjin Acrobat Company Children of the Mist Le Moulin Rouge Brundibar Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To provide a safe and To implement a A secure environment for staff, • Maintain a daily record of all • Theft incidents were kept to a secure environment in dedicated security tenants, visitors and patrons. security incidents. minimum due to on-going vigilance. and around Artscape strategy and plan. • Monthly contract meeting with • Daily reports were kept. Regular for its staff, tenants, service provider to ensure testing and inspections of alarms visitors and patrons. that security concerns are and safety equipment were adequately addressed. conducted at all Artscape sites. • Monthly construction safety reports were received from Frontline consultants. • Monthly contract meetings were held with Thorburn to address service matters. Overall, this target was achieved.

2.5 Indicator: International Relations Defi nition: In order for Artscape to keep the theatre and performing arts programmes, projects and productions in line with world trends, it is important that fi rst hand knowledge and experience regarding artistic, technical and governance matters relevant to the institution, is achieved. Unit of measure: As indicated in service delivery indicator and target Budget: R0.200m Actual: R0.285m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To stay abreast To participate • Membership of international • Annual renewal of membership • Membership to ISPA was renewed. of international in international performing arts associations of performing arts associations • Artscape was also represented artistic and technical performing arts and organisations. and organisations. at the annual ISPA Conference developments. conferences, • Participation in international • Attend at least 2 international in Canada and the Auditoriums seminars and training festivals and conferences. conferences/seminars per Meet Conference in Ireland. The courses. annum. Director of ADE attended the African • Attend international festivals, Network for Evidence-to-Action on where Artscape has a presence. Disability (AfriNEAD) conference in Zimbabwe. • Artscape took part in the Prague Quadrennial and the CEO was part of the SA delegation to the Edinburgh Festival. Overall, this target was achieved.

2.6 Indicator: Audience Development & Education Defi nitions: Audience Development & Education Artscape regards audience development and education as vitally important to enhance the level of appreciation for the performing arts among communities, introduce new audiences to the performing arts, develop new talent and provide developmental opportunities to the broader community. Unit of measure: Rand value and number of events/productions as indicated in the service delivery indicator and target Rural outreach In its endeavours to embrace all communities in the Western Cape, Artscape embarked on an annual programme of structured community outreach programmes in rural communities throughout the Western Cape. Unit of measure: Number of outreach programmes as indicated in the service delivery indicator and target New writing programme Artscape’s New Writing Programme (ANWP) receives solicited and unsolicited scripts from the general public written in Afrikaans, English and isiXhosa. Playwriting workshops are conducted whereby delegates are introduced to techniques of professional playwriting. Unit of measure: Rand value and number of scripts / workshop attendees as indicated in the service delivery indicator and target Budget 2011/2: R2.610m Actual: R4.058m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To attract and develop To ensure that the • Nation-building through • Present artistic programmes • Achieved. 63 diverse artistic culturally diverse performing arts are cross-cultural audiences and to introduce audiences to the programmes aimed at audience audiences. accessible to the performing arts education performing arts. development and education were diverse audiences of initiatives to enhance theatre • Introduce new and diverse presented. the Western Cape. experience in historically audiences through Final Dress • Achieved. The partnership with marginalised communities. Rehearsals – target 5 000 Golden Arrow continues to transport • Greater awareness and persons annually. audiences to FDRs. Due to the involvement in the performing • Present an annual women’s reduction in the bus allocation; only arts in non-urban areas festival during women’s month. 2187 people were transported in 39 through outreach programmes. buses.

ARTSCAPE ANNUAL REPORT 2011 • 2012 13

Waiting for Rain Madame Touxfl ouwe Benefi ciary The Tradegy of Richard III Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To facilitate and present To promote the • Present dedicated performing • Present 1 major outreach • Achieved. The women’s festival a writing programme development of arts programmes that programme for non-urban was presented over three days with in order to identify and new writers and showcase young talent. areas annually reaching 5 000 the theme “Equal justice”. mentor promising new encourage new talent. • Present dedicated performing persons. • Achieved. The outreach writing talent. arts programmes for the • Present 3 dedicated programme was presented in the benefi t of schools and programmes that will Theewaterskloof region of Caledon. learners. showcase youth talent (a The 80-minute production of • Annual presentation of a classical music festival; a “Kunstetreffers” featured genres playwriting workshop to attract youth jazz festival and a such as ballet, indigenous music, and develop new writing national youth classical music opera, jazz and contemporary talent. competition). dance. An estimated 1 800 attended • Commissioning and editing of • Host programmes that will the production. 660 learners from 11 new scripts sourced through attract at least 10 000 school schools attended. the new writing programme. children per annum. • Achieved. A classical music festival, • Annually present a High youth jazz festival and a national School Drama Festival youth classical music competition in which an average of were presented. 50 schools participate\ in • Achieved. The children’s community festivals and at theatre productions attracted an least 10 schools participate in attendance of 31 577. the main festival. • Achieved. A total of 52 schools • Annually present a school took part in the mini High School arts festival where at least Drama Festival while 16 schools 80 schools showcase their participated in the main festival. productions. • Achieved. 92 schools participated • Present at least 2 setwork in the Schools Arts Festival. In productions for Grade 12 addition, ten schools participated learners per annum that are in the YES Environmental Drama representative of the offi cial Festival, held in association with languages of the Western the City of Cape Town. Cape. • Achieved. The isiXhosa • One playwriting workshop per production “Amaza” and the annum, attended by at least 10 Afrikaans Grade 12 setworks persons. “Krismis van Map Jacobs” and • Commission three scripts per “Baby” were presented this year. annum. • Achieved. A Playwriting Workshop • Edit fi ve scripts per annum. was held at the University of the Western Cape, attended by 14 delegates. • Achieved. Three scripts were commissioned. • Not achieved. Four scripts were edited this quarter. The number of scripts edited depends on the quality of scripts received. In addition, 25 unsolicited play scripts were received for assessment.

2.7 Indicator: Capacity Building Defi nition: In response to the skills shortage in the theatre industry and the lack of proper technical training, Artscape offers a training programme in stage technology, including lighting, sound and stage management. The internship programme provides training and skills transfer in arts administration and management and is fully dependant on dedicated funding. The Resource Centre facilitates training programmes for emerging artists and arts practitioners. Unit of measure: Number of trainees or interns and Rand value Budget 2011/2: R0.480m Actual: R0.331m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To enhance skills To provide training in Presentation of a dedicated • Enrol at least six trainees on • Achieved. Five trainees completed training and skills specialised theatre technical training programme. a one year technical training the 2011 training course. Following transfer. services and offer programme. an interview process in December internships in theatre • Present specialised 2011, four new trainees started the management. programmes in lighting, sound 2012 training course. and stage management. • Specialised programmes in lighting, sound and stage management are presented to the trainees.

14 ARTSCAPE ANNUAL REPORT 2011 • 2012

The Tradegy of Richard III Make way for Noddy High School Drama Festival Jesus Christ Superstar Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To increase capacity To provide job • Dedicated funding of • To ensure dedicated funding of • No funding was secured for the building with the aid shadowing internship programme. at least R200 000 towards the internship programme. of donor funding and programmes that • Shadowing programmes for internship programme. • Job shadowing opportunities were sponsorships. promote the transfer learner arts practitioners. • Provide job shadowing provided to an HR student from of performing arts • A system of internships that opportunities to learners and University of skills and increase would ensure skills transfer to students interested in careers Technology, and learners from De skills capacity within interns. in the arts. Kuilen and Settlers high schools. the performing arts • Annually recruit interns from • Two interns (with disabilities) were industry. diverse backgrounds with an hosted by the Resource Centre as interest in the performing arts, part of the Careers for Youth with when funding is available. Disabilities SA programme. An intern from Netherlands is completing her research into Artscape’s transformation. Four Belgian students selected Artscape for their MBA research. • Three interns and two trainees were recruited by the wardrobe division. Resource Centre To facilitate training To utilise trainers • A database of available • Maintain and utilise a database • The Resource Centre maintains programmes for within the performing trainers in the performing arts of available trainers in the a database of available trainers emerging artists and arts industry to industry. performing arts industry. in the performing arts industry. A arts practitioners. present training • Dedicated training • Present at least two dedicated new service provider was used for programmes to programmes for emerging training programmes for the Arts Administration Workshop emerging artists and artists and arts practitioners. emerging artists and arts (sourced via the Department of arts practitioners. practitioners. Cultural Affairs and Sport). • Workshops were held on proposal writing, music industry expo, basic computer skills, arts administration and basic IT skills. To provide access to • To develop • Information sessions and • Annually conduct at least • Eight participants attended the available performing information seminars for emerging artists two appropriate information Department of Culture, Arts and arts resources and sessions and and arts practitioners. sessions for emerging artists Sports funding information session. expertise for arts seminars for • Record of Resource Centre and arts practitioners. Events included a briefi ng session practitioners. artists and arts members and users. • Maintain a record of Resource by the Raymond Ackerman practitioners. Centre members and their Academy of Entrepreneurship, a • To set targets for usage of the facilities. networking session dubbed “Info Resource Centre Connectionz”, and a World Puppetry usage. Showcase and seminar. • Records were kept of the Resource Centre members and their usage of the facilities. The Centre has over 500 members on their mailing list and more than 400 Facebook friends.

2.8 Indicator: Performing Arts Programme Defi nitions: Indigenous arts programme One of Artscape’s key goals is to encourage indigenous arts and creativity. The focus is on creating opportunities for communities who have had no previous opportunity to perform on stage – especially the Xhosa, Khoi, San and Griqua communities. Unit of measure: Rand value and number of events/productions Spring Drama Season Artscape annually presents a Spring Drama Season, consisting purely of new South African works, many by fi rst-time playwrights. Productions are presented in the three offi cial languages of the Western Cape. Previously disadvantaged individuals are able to take part as assistant directors, or in a wide range of technical, stage management and other positions. Unit of measure: Rand value and number of events/productions Other artistic presentations To promote, present, co-present, co-produce or invest in performing arts productions as allowed by budgetary constraints. Unit of measure: Rand value and number of events/productions Budget 2011/2: R4.302m Actual: R6.785m Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To develop, promote To introduce a A well-differentiated arts • A diverse artistic programme • A diverse artistic programme was and present a diverse differentiated programme that meets the that caters for the diverse presented during this year. artistic programme. programme mix that preferences of a diversity of needs of all Western Cape • 714 different productions correlates with the audiences. communities. and events, resulting in 750 diverse audience • To present at least 500 diverse performances were presented. preferences. productions and events per annum.

ARTSCAPE ANNUAL REPORT 2011 • 2012 15

Youth Jazz Festival Coppelia Mary and the Conqueror Ibhekile Evuyazo Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To present a spring To facilitate the • Presentation of main • At least three productions in the • Three full productions were staged drama festival. production of plays productions during an annual spring drama festival. during the 7th Artscape Spring that has emerged spring drama festival. • One showcase production per Drama Season. In addition, a revival through the new • Showcase new plays. annum. of one of the most successful plays writing programme. • Try out plays through staged • One open stage reading per was presented. closed and open readings. annum. • A showcase production this year. • Two closed stage readings per • No open stage readings were held annum. as no suitable scripts were received. • Three closed readings were held this year. To present an To provide a platform • To present and showcase an • Showcase at least 5 indigenous • Three productions formed part of the indigenous programme for indigenous art indigenous arts programme. productions annually. Umbiyozo Youth Festival that is representative forms that were • Three productions were presented of the previously previously excluded as part of the Imvelo “Heritage” marginalised art forms. from professional Festival. stages. • Two productions were done in collaboration with Indigenous Orchestra (with Mbira ensemble) and Voice of Azania. To present or co- To present or • To present productions other • Annually present a • The “Comedy of Errors”, was present other artistic co-present artistic than those identifi ed above Shakespearean production at the presented. productions with artistic productions at within budgetary constraints. Maynardville Open-Air Theatre. • The partnership with Mike van Graan merit. Artscape or other • Present or co-present at least one as associate playwright resulted in performing arts additional production annually, two additional productions being venues. within budgetary constraints. staged.

2.9 Indicator: Governance Defi nition: As a public entity, Artscape constantly strives to maintain a system of good corporate governance. Unit of measure: As indicated in service delivery indicator and target Budget: To be implemented within the budget allocation for administrative and general expenses Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target Corporate governance Ensure good corporate • To ensure • Compliance with the PFMA • Unqualifi ed Audit Report. • Artscape, once again, received an governance. compliance with and relevant Treasury • Implement internal control unqualifi ed audit report. Public Finance regulations. measures which comply with • Matters previously raised by the Management Act. • Internal audit compliance. guidelines of the Auditor- Auditor-General were implemented. • To maintain a • Maintain a register of major General and Internal Audit The AG conducts regular key control system of internal operational and strategic risks. reports. reviews and Internal Audit completed control. • Annual risk assessment. their fi eldwork for the internal audit • Development, maintenance and plan. reporting on the risk register. • An annual risk assessment was conducted and the outcomes were discussed by the Audit & Risk Committee and Council. • The risk register is updated regularly and reported upon at meetings of the Audit Committee meetings and the Council. Supply chain management A proper supply chain • To maintain a • A database of all service • Maintain a database of • A database of procurement contracts management strategy database of service providers and procurement procurement contracts that are was maintained. A public call was and system that providers. contracts. annually reviewed and updated made for suppliers to register on ensures best practice. • To develop a pro- • Service level agreements for with tax clearance and banking Artscape’s supplier database. forma service level contractual service providers. details. • Service level agreements for existing agreement for the • A properly maintained asset • Service level agreements and new service providers were purchase of goods register. for existing and new service maintained. and services. providers. • An up to date asset register was • To maintain an • Enhanced asset management maintained. updated asset system to provide easier In addition, three tenders were register. identifi cation of assets. awarded this year. Stricter controls were implemented in line with the new PPPFA legislation that came into effect in December 2011. Health and safety To create an • To monitor • Quarterly meetings to monitor • Quarterly health and safety • Quarterly health and safety meetings environment that meets adherence to the adherence to the health and meetings to ensure that the were held, where all injuries were effective and effi cient Artscape health safety strategy. strategy is being adhered to. reported. health and safety and safety strategy. • Identify and train staff • Annually identify and attend to • The Health & Safety Manager and requirements. • To regularly test members in health and safety. relevant health & safety training. two other employees attended the key aspects • Regular testing of the disaster • Testing of disaster management theatre safety policy workshop in of the disaster management plan. plan systems at least once per Pretoria. The Manager also attended management plan. annum. the follow up meeting in March 2012. • Weekly inspections are held at all Artscape facilities by Health and Safety representatives. The disaster management plan was tested by means of a fi re drill at Artscape and an evacuation drill at the Epping ARTSCAPE ANNUAL REPORT 2011 • 2012 16 workshop. Brundibar Battle of the Youth Jazz Bands Amaza Ibhekile Evuyazo 3. ORGANISATIONAL MANAGEMENT Defi nition: Excellent organisational management through an effective human resources department, and adequate investment in employee wellness initiatives. Budget: R0.920m Actual: R1.150m 3.1 Human resource strategy Key objective Strategy Output Service delivery indicator ACTUAL PERFORMANCE and target To retain staff with To identify and Retention of staff with the Develop and implement training Three staff members completed the potential to be develop employees potential to be promoted. plans for staff with the potential for the University of Stellenbosch promoted into key with the potential to promotion. Management Development management positions. be promoted into key Programme, and two others received management positions. training for future promotions. To review job grades Annual revision of job Ensure that staff are employed Annual revision of job grades Job grading was revised according to continuously as the grades. and remunerated according to based on changes to the scope job changes. scope of the jobs the correct grade. of the job. change. To fi ll vacancies To determine Appointments that meet Movement towards achieving The change in the status of employees created in line with Employment Equity Employment Equity targets. the Employment Equity targets from contract to permanent had a the organisation’s targets in line with the that are representative of the negative impact on the current staff Employment Equity demographics of the demographics of the Western profi le. Where possible, vacancies were plans. Western Cape. Cape. fi lled in line with employee equity targets. To maintain training To develop training An approved training and Identifi cation of training A total of 14 employees received and development plans and development development plan. requirements and an annual effective operational supervisor that will ensure a highly plans that will ensure update of the training and training, an employee attended the skilled workforce in a highly skilled development plan. public sector IT governance workshop, Artscape. workforce in Artscape. an employee attended the HR strategic conference, an employee attended the E-Marketing training course, four employees received project management training and two employees received training in Light Jockey and MAC software.

3.2 Numerical targets and progress towards 31 March 2014 Category Permanent Percentage Total Target Percentage Total Demographics Western Staff as at Percentage Staff Percentage Cape 31 March 2012 (Based on 2001 Census)

White Males 6 6.6% 14.3% 8 8.0% 17.0% 18.40% White Females 7 7.7% 9 9.0% Coloured Males 40 43.9% 70.3% 34 34.0% 56.0% 53.91% Coloured Females 24 26.4% 22 22.0% African Males 8 8.8% 13.2% 14 14.0%% 25.0% 26.69% African Females 4 4.4% 11 11.0% Asian Males 1 1.1% 2.2% 1 1.0% 2.0% 1.00% Asian Females 1 1.1% 1 1.0% TOTAL 91 100

Financial performance & expenditure trends Income 2007/8 2008/9 2009/10 2010/11 2011/12 R ‘000 R’000 R’000 R’000 R’000 State contribution 31 490 35 501 37 704 54 297 42 332 State contribution – essential capital works - - 32 024 30 536 67 239 Venue rentals 2 689 3 596 3 449 3 956 4 794 Marketing & sponsorships 6 155 5 654 3 435 4 461 4 489 Business ventures/Other income 759 685 1 407 2 693 5 983 Performing arts programme 2 990 2 625 2 176 2 492 2 812 Investment income 875 1 152 2 231 1 086 1 855 TOTAL 44 958 49 213 82 426 99 521 129 504 EXPENDITURE Administrative expenses (excluding capitalised maintenance expenditure) 16 784 19 223 21 852 27 254 35 524 Compensation of employees 17 135 20 811 23 775 25 467 27 869 Performing arts programme 9 556 9 477 9 060 10 861 10 843 Other non – operating expenses 6 868 (1 081) 5 964 2 926 269 TOTAL 50 343 48 430 60 651 66 508 74 505 (DEFICIT) / SURPLUS (5 385) 783 21 775 33 013 54 999

ARTSCAPE ANNUAL REPORT 2011 • 2012 17

Tianjin Acrobat Company Nutcracker on Ice HOL

Howzit my Bra Financial position summary BALANCE SHEET DATA 2007/08 2008/09 2009/10 2010/11 2011/12 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Carrying value of assets 3 301 3 010 32 896 56 827 111 889 Investments - - - - - Inventory 20 25 24 38 256 Loans - - - - - Receivables and prepayments 2 600 5 232 2 526 1 764 5 543 Cash and cash equivalents 4 953 4 809 20 260 42 353 23 068 Total assets 10 874 13 076 55 706 100 982 140 756 Capital and reserves 4 860 (525) 22 033 55 045 110 044 Finance lease liability (non-current) 7 5 1 5 1 Post-retirement benefi ts 1 845 1 396 1 159 1 220 1 303 Trade and other payables 4 162 5 073 20 583 44 552 29 234 Provisions - 7 127 11 930 160 174 Managed funds - - - - - Total equity and liabilities 10 874 13 076 55 706 100 982 140 756 Contingent liabilities - - - - -

• The fi nancial position as refl ected in the balance sheet refl ects a positive fi nancial position. • The surplus as calculated is a result of the projected capitalisation of maintenance expenditure and does not • indicate any plans to accumulate surplus funds.

Income and expenditure trends Income 2007/8 2008/9 2009/10 2010/11 2011/12 Annual Subsidy 70% 72% 45% 55% 33% Essential maintenance contribution 0% 0% 38% 31% 52% Other income 30% 28% 17% 14% 15% TOTAL 100% 100% 100% 100% 100% EXPENDITURE Administrative expenses 34% 39% 36% 42% 48% Compensation of employees 34% 43% 39% 38% 37% Performing arts programme 19% 20% 15% 16% 14.6% Other non – operating expenses 13% (2%) 10% 4% 0.4% TOTAL 100% 100% 100% 100% 100%

• Artscape’s main source of funding consists of the transfers from the Department of Arts & Culture. The funding from government grants account for 85% of the total income, due to the additional capital funding received in the current year. • Additional revenue is generated through rental income, box offi ce takings and sponsorship from local donors and business enterprises. • Except for the additional spending on the current building works, no major changes to current spending areas are expected.

18 ARTSCAPE ANNUAL REPORT 2011 • 2012

Dance International

Huisgenoot Gospel Concert Brothers in Blood Fiddler on the Roof Human Resources Management 1. PERSONNEL EXPENDITURE As at 31 March 2012 Artscape employed 91 persons on a permanent basis and 18 persons on an annual contractual basis. Depending on operational requirements, additional staff are appointed on a part-time or casual basis.

Operating expenses Compensation of Training & Capacity Other staff Total staff cost Total staff cost as Part time employees Building overheads a percentage of R’000 R’000 R’000 R’000 R’000 operating expenses R’000 74 236 27 869 331 819 29 019 39% 695

Analysis of permanent staff compensation Salary & other benefi ts Overtime Provident fund Medical Assistance Cost of Employment Permanent Average staff Permanent % % % % compensation staff permanent permanent permanent permanent (Excluding Expenditure (R’000) staff cost (R’000) staff cost (R’000) staff cost (R’000) staff cost part time) (R’000) 21 285 78.33% 1 367 5.03% 2 777 10.22% 1 745 6.42% 27 174 249

2. EMPLOYMENT AND VACANCIES AS AT 31 MARCH 2012 Number of posts Number of posts Vacancy Vacancy Rate fi lled Permanent staff 94 91 3 3% Annual contractual staff 20 18 2 10% TOTAL 114 109 5 4% Staff turnover for the period 1 April 2011 – 31 March 2012 Staff as at 31 New Transfer from Terminations Staff as at 31 March 2011 Appointments contract to March 2012 permanent Permanent staff 77 3 13 (2) 91 Annual Contract staff 29 2 (13) – 18 TOTAL 106 5 – (2) 109

Reasons for leaving the Institution Termination type Number of employees % of total terminations % of total number of employees Deceased 1 50% 0.9% Dismissed 1 50% 0.9% TOTAL 2 100% 1.8%

Staff Profi le Post level MALE FEMALE TOTAL African Coloured Indian White Total African Coloured Indian White Total Permanent staff profi le as at 31 March 2012 Management 1 1 0 2 4 0 1 0 0 1 5 Middle management 1 4 0 2 7 0 0 0 1 1 8 Supervisor, high level skilled / clerical 5 26 1 2 34 2 12 0 3 17 51 Lower level skilled (clerical) 0 8 0 0 8 1 9 1 3 14 22 Very low skilled 1 1 0 0 2 1 2 0 0 3 5 TOTAL at 31 March 2012 8 40 1 6 55 4 24 1 7 36 91 Annual contractual staff profi le as at 31 March 2012 Management 0 0 0 0 0 0 0 0 0 0 0 Middle management 0 0 0 0 0 0 0 0 1 1 1 Supervisor, high level skilled / clerical 0 1 0 0 1 0 2 0 0 2 3 Lower level skilled (clerical) 1 1 0 1 3 1 2 0 0 3 6 Very low skilled 0 6 0 0 6 0 2 0 0 2 8 TOTAL at 31 March 2012 1 8 0 1 10 1 6 0 1 8 18

ARTSCAPE ANNUAL REPORT 2011 • 2012 19

Lost in the Stars

Shakespeare Schools Festival Viva la Mama !AÏA “From cave to sky” STAFF SUMMARY as at 31 March 2012 Post level MALE FEMALE TOTAL African Coloured Indian White Total African Coloured Indian White Total Permanent 8 40 1 6 55 4 24 1 7 91 Annual contractual staff 1 8 0 1 10 1 6 0 1 18 TOTAL 9 48 1 7 65 5 30 1 8 109

Persons with disabilities Post level MALE FEMALE TOTAL African Coloured Indian White Total African Coloured Indian White Total Management 10001010012 Supervisor, high level skilled/clerical 0 0 0 1 1 0 0 0 0 0 1 Lower level skilled (clerical) 00000000000 TOTAL persons with disabilities 10012010013

3. HIV/AIDS and Health Promotion Programmes Artscape seeks to minimise the impact of the HIV/AIDS pandemic by committing resources and leadership to implement appropriate interventions within the organisation. The following steps were taken to reduce the risk of occupational exposure: ● Workshops on HIV/AIDS in the workplace ● HIV/AIDS programme on 1 December ● Referral of infected and affected staff to social workers and counsellors ● Equipping all fi rst-aid kits with rubber gloves and antiseptics ● Providing for HIV/AIDS Counselling and Testing on the Corporate Wellness Day (15 employees were voluntarily tested at the 2011 Wellness Day)

4. Misconduct and Disciplinary Hearings for permanent and annual contractual employees fi nalised 4.1 Permanent and Annual contractual employees Type of misconduct Number Outcome Dishonesty, falsifi cation of documents and forgery 1 Dismissal Misuse of Artscape motor vehicle; misuse of position 1 Final written warning

4.2 Part-time employees None

5. SKILLS DEVELOPMENT 5.1 Training needs identifi ed and provided to permanent and annual contractual employees for the period 1 April 2011 to 31 March 2012 Gender Number of Training needs identifi ed and provided employees Learnerships Skills Development Other forms of training TOTAL Male 91 1 17 163 181 Female 18 0 10 95 105 TOTAL 109 1 27 258 286

5.2 Technical training programme trainees for the period 1 April 2011 to 31 March 2012 The technical training programme is accredited by the University of Stellenbosch.

Gender Number of trainees Number of trainees (April 2011 –December 2011) (February 2012 – March 2012) Male 3 1 Female 2 3 TOTAL 5 4

20

La Traviata Somebody to Love

Make way for Noddy Schools Arts Festival Gala Overview of Financial Statements FOR THE YEAR ENDING 31 MARCH 2012

FINANCIAL PERFORMANCE Total revenue increased by 30% from R99.521m to R129.504m.

✦ The annual grant from the Department of Arts & Culture (DAC) increased by 6%, from R39.787m to R42.332m. ✦ Additional grants for capital maintenance were received from DAC and the Provincial Government of the Western Cape (PGWC). R34.182m of DAC funding was released to revenue in the current year. The PGWC grant deferred in the previous year was fully released to revenue. In total an amount of R33.057m of the PGWC grant received over the last 2 years was released to revenue. ✦ Other operating revenue increased by 33% from R13.603m to R18.078m. This increase is primarily due to revenue from venue rentals (up by 21% to R4.794m), revenue from cafeteria, restaurant and bars (up by 262% to R4.727m), production revenue (up by 13% to R2.812m) and sponsorship revenue (up by 7% to R3.418m). The increase in sponsorship includes the fi rst tranche of the R5m grant from the National Lotteries Board. Other revenue is not materially different to that of the previous year. ✦ Interest received increased by 71% from R1.086m to R1.885m due to the increase in total revenue and effi cient management of cash resources.

80,000 Interest 70,000 received 1% 60,000 50,000 Other operating 40,000 revenue 14% Government grant 30,000 (Operational) 33% 20,000 10,000 Government grant 0 (Capital works) 52% Government grant Government grant Government grant Other operating Interest (Operational) (Capital works) (Special) revenue received 2012 REVENUE

Government grant Government grant Government grant Other operating Interest received (Operational) (Capital works) (Special) revenue 2012 / Rm 42,332 67,239 – 18,078 1,855 2011 / Rm 39,878 30,535 14,419 13,603 1,086

OPERATING EXPENSES ✦ Administrative expenses increased by 17% from R27.256m to R35.308m. Substantial increases include: • audit fees (up by 53% to R0.851m); • internal audit fees (up by 62% to R0.397m, due to more internal audits being carried out in the current year); • catering (up by 217% to R6.019m) due to the insourcing of bar and restaurant services; • cleaning (up by 17% to R2.670m); • depreciation on property, plant and equipment (up by 39% to R3.896m); • repairs, maintenance and refurbishment (up by106% to R4.168m). ✦ The impact of these increases has been reduced by signifi cant decreases in: • consultancy fees (down by 18% to R0.298m); • insurance (down by13% to R0.177m); • manufacturing consumables (down by 56% to R0.224m); • operating leases (down by 28% to R0.390m). ✦ Compensation of employees increased by 9% from R25.467m to R27.869m. ✦ Other operating expenses, such as the spending on the artistic programme and other special projects, did not change materially from that of the previous year.

Administrative 40,000 Other operating expenses 48% expenses 14% 35,000

30,000 Compensation of employees 38% 25,000

20,000 2012 EXPENDITURE

15,000

10,000 21 5,000 Administrative Compensation of Other operationg expenses employees expenses 0 Administrative Compensation of Other operating 2012 / Rm 35,524 27,869 10,843 expenses employees expenses 2011 / Rm 27,256 25,467 10,861 OPERATING SURPLUS An operating surplus of R55.268m (2011: R35.937m) was achieved for this fi nancial year. The operating surplus resulted from the government grant for capital works being utilised to improve the value of the leased property.

PROVISION FOR POST-RETIREMENT MEDICAL BENEFIT The actuarial valuation, as well as current contributions paid, resulted in an additional expense of R269 000 being incurred for the post-retirement medical benefi t.

SURPLUS An accounting surplus of R54.999m (2011: R33.012m) was recorded for the year ended 31 March 2012.

FINANCIAL POSITION The increase in non-current assets is due to the improvements on leased property (roof extensions and other space optimisation projects and upgrades) and other minor increases in other non-current assets.

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0,000 Non-current Current assets – Current assets – TOTAL ASSETS Non-current Current liabilities – Current liablilites – TOTAL assets non cash cash resources liabilities other deferred government LIABILITIES grant

Non-current assets Current assets – Current assets – TOTAL ASSETS Non-current liabilities Current liabilities – Current liabilities – TOTAL LIABILITIES non cash cash resources other deferred government grant 2012 / Rm 111,888 5,800 23,068 140,756 1,304 13,197 16,211 30,712 2011 / Rm 56,827 1,802 42,353 100,982 1,225 4,683 40,029 45,937

The increase in non-cash current assets is due to the decrease in receivables and the increase in cash resources, due to the government grants unutilised at year-end.

Non-current liabilities did not change materially from the previous year.

Current liabilities (other) increased primarily due to the liability for building works raised at the end of the fi nancial year. In line with the utilisation of the funding for capital works, the deferred government grant dropped to R16.211m.

Cash and cash equivalents dropped from R42.353m to R23.068m due to the utilisation of the government grant deferred from the previous year. The remainder of the grant will be fully utilised during 2012/2013 as part of the completion of the tender for the space optimisation projects awarded on 1 April 2011.

THE FINANCIAL PERFORMANCE AND FINANCIAL POSITION AS AT 31 MARCH 2012 INDICATE A FIRM CONTROL OVER INCOME AND EXPENDITURE AND A SOUND MANAGEMENT OF CASH RESOURCES.

22 ARTSCAPE ANNUAL REPORT 2011 • 2012

The Italian The Benefi ciary Affair

Rocco, Kore en die Kaapse Band KykNet vir Mimi Phantom of the Opera Report of the Audit and Risk Committee We are pleased to present our report for the fi nancial year ended 31 March 2012.

Members and Attendance The Audit and Risk Committee consists of the members listed hereunder and meets at least twice per annum as required by the Public Finance Management Act, 1999 (Act No. 1 of 1999), and as per its approved terms of reference.

Current members Number of meetings attended Ms R Benjamin-Swales (Council member and Chairperson) 3 Mr B Losper (Council member appointed 1 August 2011) 1 Mr MA Khan (Independent member) 3

Former members Mr B Khan (Former Council member not reappointed after 31 July 2011) – Prof B Figaji (Former Council member not reappointed after 31 July 2011) 2

Audit and Risk Committee Responsibility The Audit and Risk Committee reports that it has complied with its responsibilities arising from section 51(1)(a) of the PFMA and Treasury Regulation 27.1.10. The Committee also reports that it has adopted appropriate formal terms of reference as its charter; regulated its affairs in compliance with this charter; and discharged all its responsibilities as contained therein.

Risk management The Audit and Risk Committee reviewed the outcomes of the risk management workshop and ensured that risks are continuously monitored and that the risk register is updated regularly.

Effectiveness of internal control The system of internal control is considered effective as the various reports of the Internal Auditors and the Auditor-General have not reported any signifi cant or material non-compliance with prescribed policies and procedures and laws and regulations, other than the non-compliance with Treasury Regulation 16A6.1., whereby the required number of price quotations for goods and services with a transaction value below R500 000 were not obtained.

The other matters identifi ed in the management letter of the Auditor-General will be monitored by the Audit and Risk Committee and the Internal Auditors in the following year.

Quality of quarterly reports The Committee is satisfi ed with the content and quality of quarterly reports prepared and issued by the Institution during the year under review.

Evaluation of Financial Statements and Predetermined Objectives The Audit Committee has: ● Reviewed the audited annual fi nancial statements to be included in the annual report; ● Reviewed the report on predetermined objectives to be included in the annual report; ● Reviewed the Auditor-General’s management letter and management’s response; and ● Reviewed the report of the Auditor-General for the year ended 31 March 2012.

The Audit Committee concurs and accepts the conclusions of the Auditor-General on the annual fi nancial statements and is of the opinion that the audited annual fi nancial statements be accepted and read together with the report of the Auditor-General.

R Benjamin-Swales Chairperson of the Audit and Risk Committee Date: 31 July 2012

ARTSCAPE ANNUAL REPORT 2011 • 2012 23

Brundibar Mary and the Conqueror Waiting for Rain

Orchestra Ensemble Report of the Auditor-General to P arliament

REPORT ON THE FINANCIAL STATEMENTS

Introduction 1. I have audited the fi nancial statements of Artscape set out on pages 28 to 42, which comprise the statement of fi nancial position as at 31 March 2012, the statement of fi nancial performance, statement of changes in net assets and the cash fl ow statement for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting authority’s responsibility for the fi nancial statements 2. The accounting authority is responsible for the preparation and fair presentation of these fi nancial statements in accordance with Sout h African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Publ ic Finance Management Act of South Africa, 1999 (Act No.1 of 1999)(PFMA), and for such internal control as the accounting authority determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Aud itor-General’s responsibility 3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements. 5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Opinion 6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of Artscape as at 31 March 2012, and its fi nancial performance and cash fl ows for the year then ended in accordance with SA Standards of GRAP and the requirements of the PFMA.

Emphasis of matter 7. I dr aw attention to the matter below. My opinion is not modifi ed in respect of this matter.

Restatement of corresponding fi gures 8. As disclosed in note 26 to the fi nancial statements, the corresponding fi gures for 31 March 2011 have been restated as a result of errors discovered during 31 March 2012 in the fi nancial statements of Artscape and for the year ended, 31 March 2011. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 9. In accordance with the PAA and the General Notice issued in terms thereof, I report the following fi ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives 10. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 11 to 18 of the annual report.

24 ARTSCAPE ANNUAL REPORT 2011 • 2012

Sour Angelica La Traviata Amaza Tianjin Acrobat Company 11. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information. 12. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately refl ects the facts (i.e. whether it is valid, accurate and complete). 13. There were no material fi ndings on the annual performance report concerning the usefulness and reliability of the information.

Compliance with laws and regulations 14. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual fi nancial statements, performance and annual reports 15. The fi nancial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 55(1)(b) of the PFMA. Material disclosure misstatements identifi ed by the auditors were subsequently corrected, resulting in the fi nancial statements receiving an unqualifi ed audit opinion.

Procurement and contract management 16. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

Expenditure management 17. The accounting authority did not take effective and appropriate steps to prevent irregular expenditure, as per the requirements of section 51(1)(b) of the PFMA.

Internal con trol 18. I considered internal control relevant to my audit of the fi nancial statements, performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the signifi cant defi ciencies that resulted in the fi ndings on compliance with laws and regulations included in this report.

Financial and Performance Management 19. The fi nancial statements were not adequately reviewed for accuracy and completeness of disclosures prior to submission for audit, resulting in material misstatements that were corrected by management. 20. Inadequate processes are in place to review and monitor compliance with applicable laws and regulations which has resulted in irregular expenditure that was not prevented or detected by management.

Cape Town 31 July 2012

AUDITOR-GENERAL SOUTH AFRICA

Auditing to build public con dence

ARTSCAPE ANNUAL REPORT 2011 • 2012 25

The Shakespeare Schools Festival

The Tradegy of Richard III Baby CA12-6 Statement of Responsibility

The Public Finance Management Act, 1999 (Act No. 1 of 1999) requires the Accounting Authority to ensure that Artscape keeps full and proper records of its fi nancial affairs. The annual fi nancial statements should fairly present the state of affairs of Artscape, its fi nancial results, its performance against predetermined objectives and its fi nancial position at year end.

The Annual Financial Statements are the responsibility of the Accounting Authority. The Auditor- General is responsible for independently auditing and reporting on the fi nancial statements.

The fi nancial statements have been prepared in accordance with the South African Standards of Generally Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board. The annual fi nancial statements are based on appropriate accounting policies, supported by reasonable and prudent judgements and estimates.

The Accounting Authority is responsible for the Institution’s internal controls and risk management. These controls are designed to provide reasonable, but not absolute assurance as to the reliability of the fi nancial statements, and to adequately safeguard, verify and maintain accountability for assets and to prevent and detect material misstatements and loss. Nothing has come to the attention of the Accounting Authority to indicate any material breakdown in the functioning of these controls, procedures and systems during the year under review.

In view of our current fi nancial position, the Accounting Authority has every reason to believe that Artscape will be a going concern in the year ahead and has continued to adopt the going concern basis in preparing the fi nancial statements.

SUBMISSION OF ANNUAL FINANCIAL STATEMENTS The annual fi nancial statements for the year ended 31 March 2012, set out on pages 28 to 42, were submitted for auditing on 31 May 2012 in terms of Section 51(1)(f) of the Public Finance Management Act, 1999 (Act No. 1 of 1999).

______Michael Maas Pieter Lourens Chief Executive Offi cer Chief Financial Offi cer

Cape Town Cape Town

26 Accounting Authority Report FOR THE YEAR ENDING 31 MARCH 2012

Artscape is a declared Cultural Institution in terms of Section 3 of the Cultural Institutions Act, 1998 (Act No. 119 of 1998). The entity is listed as a schedule 3A entity (national entity) under the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA).

Artscape’s council acts as the accounting authority in terms of the PFMA.

COUNCIL The following council members, as appointed by the Minister of Arts & Culture on 1 August 2011, were in offi ce at 31 March 2012: Prof Somadoda Fikeni (Chairperson) Prof Nomvula Mtetwa (Deputy Chairperson) Ms Ruth Benjamin-Swales Mr Dudley Cloete–Hopkins Mr Tiisetso Tsukudu Prof Lineo Mazwi-Tanga Mr Brandon Losper Ms Bandi Biko Ms Marian Lucouw Mr Andrew Horne Mr Neo Muyanga

The following council members’ terms ended on 31 July 2011 and were not reappointed by the Minister of Arts & Culture: Prof Brian de Lacey Figaji Mr Blum Khan Prof Nicholas Basson Ms Sindi Ngaba

EXECUTIVE DIRECTORS The executive directors are responsible for the day-to-day management of the Institution and are in full-time employ of the Institution. Chief Executive Offi cer: Michael Maas (also an ex-offi cio member of Council) Chief Financial Offi cer: Pieter Lourens Director: Planning and Operations: Alastair Cockburn Director: Audience Development and Education: Marlene le Roux

NATURE OF BUSINESS The main objective is to advance, promote and preserve the performing arts in South Africa, but predominantly in the Western Cape.

CONTROLLING ENTITY The Department of Arts and Culture is the controlling entity and has ownership control of Artscape.

ADDRESSES The Institution’s business and postal addresses are as follows:

BUSINESS ADDRESS POSTAL ADDRESS ARTSCAPE Theatre Centre P O Box 4107 DF Malan Street CAPE TOWN CAPE TOWN, 8001 8000

Country of incorporation: Republic of South Africa

27 Statement of Financial Position AS AT ENDING 31 MARCH 2012 Note 2012 Restated R 2011 R ASSETS Non-current assets 111 888 387 56 827 368 Property, plant and equipment 2.1 111 549 323 56 752 121 Intangible assets 2.2 339 064 75 247

Current assets 28 867 992 44 154 397 Inventory 3 255 768 37 643 Trade and other receivables 4 5 233 910 1 727 300 Net expenditure on future productions 5 310 339 36 306 Cash and cash equivalents 6 23 067 975 42 353 148

TOTAL ASSETS 140 756 379 100 981 765

LIABILITIES Non-current liabilities 1 303 660 1 225 281 Provisions 7 1 303 000 1 220 000 Finance lease liability 8 660 5 281

Current liabilities 29 408 487 44 711 079 Trade and other payables 9 12 692 020 3 960 904 Deferred government grant revenue 10 16 211 391 40 028 867 Unutilised sponsorships 11 321 915 550 290 Short term portion of fi nance lease liability 8 9 161 11 018 Provisions 7 174 000 160 000

TOTAL LIABILITIES 30 712 147 45 936 360

NET ASSETS 110 044 232 55 045 405

TOTAL NET ASSETS 140 756 379 100 981 765

Statement of Financial Performance FOR THE YEAR ENDED 31 MARCH 2012 Note 2012 Restated R 2011 R

REVENUE 129 503 879 99 520 680 Government grant – Operational (DAC) 22 42 332 000 39 878 000 Government grant – Special virement (DAC) 7.2 - 14 419 000 Government grant – Capital Works (DAC) 10 34 181 891 12 973 118 Government grant – Capital Works (PGWC) 10 33 057 323 17 562 144 Other operating revenue 12 18 077 439 13 602 543 Interest received – cash resources 1 812 441 1 033 991 Interest received – non cash resources 42 785 51 884

OPERATING EXPENSES 74 235 777 63 583 330 Administrative expenses 13 35 523 688 27 255 565 Compensation of employees 14 27 869 130 25 466 686 Other operating expenses (Performing Arts) 10 842 959 10 861 079

OPERATING SURPLUS 55 268 102 35 937 350 Provision for post-retirement medical benefi t expense 7.1 (269 275) (231 293) Provision for pension fund liability loss 7.2 - (2 693 614) SURPLUS FOR THE PERIOD 54 998 827 33 012 443 28 Statement of Changes in Net Assets FOR THE YEAR ENDED 31 MARCH 2012 2012 Restated R 2011 R RESERVES Accumulated surplus Balance at beginning of period 55 045 405 22 032 962 Surplus for the period 54 998 827 33 012 443 Balance at end of period 110 044 232 55 045 405

Cash Flow Statement FOR THE YEAR ENDED 31 MARCH 2012 Note 2012 Restated R 2011 R Cash fl ows from operating activities

Cash received from government grants and customers 95 766 421 123 054 612 Cash paid to suppliers and employees 57 715 649 75 237 400

Net cash fl ow from operating activities 15 38 050 772 47 817 212 Interest received – cash resources 1 812 441 1 033 991 39 863 213 48 851 203

Cash fl ows from investing activities (59 141 908) (26 765 515)

Additions to property, plant and equipment 16 (58 696 959) (26 778 901) Additions to intangible assets (456 949) (21 614) Proceeds on disposal of property, plant and equipment 12 000 35 000

Cash fl ows from fi nancing activities (Decrease) / Increase in fi nance lease liability 8 (6 478) 7 599

Net (decrease) / increase in cash and cash equivalents (19 285 173) 22 093 287

Cash and cash equivalents at beginning of period 42 353 148 20 259 861

Cash and cash equivalents at end of period 6 23 067 975 42 353 148

29 Notes to the Annual Financial Statements FOR THE YEAR ENDED 31 MARCH 2012 1. ACCOUNTING POLICIES The following are the principle accounting policies of Artscape, which are consistent, in all material respects, with those applied in previous years.

1.1 BASIS OF PREPARATION The annual fi nancial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP), including any interpretations and directives issued by the Accounting Standards Board. The following standards and pronouncements were applied in the preparation of the annual fi nancial statements:

REFERENCE TOPIC GRAP Framework Framework for the preparation and presentation of fi nancial statements GRAP 1 Presentation of fi nancial statements GRAP 2 Cash fl ow statements GRAP 3 Accounting policies, changes in accounting estimates and errors GRAP 5 Borrowing costs GRAP 12 Inventories GRAP 13 Leases GRAP 14 Events after the reporting date GRAP 16 Investment property GRAP 17 Property, plant and equipment GRAP 19 Provisions, contingent liabilities and contingent assets GRAP 102 Intangible assets IFRS 7 Financial instruments: Disclosures IAS 19 Employee benefi ts IAS 32 Financial instruments: Presentation IAS 39 Financial instruments: Recognition and measurement IPSAS 20 Related party disclosures

At the date of authorisation of the fi nancial statements the following Standards of GRAP are effective but not yet adopted:

REFERENCE TOPIC GRAP 21 Impairment of non-cash generating assets (effective 1 April 2012) GRAP 23 Revenue from non-exchange transactions (effective 1 April 2012) GRAP 24 Presentation of budget information in fi nancial statements (effective 1 April 2012) GRAP 26 Impairment of cash-generating assets (effective 1 April 2012) GRAP 103 Heritage assets (effective 1 April 2012)

At the date of authorisation of the fi nancial statements the following Standards of GRAP are approved but not yet effective: REFERENCE TOPIC GRAP 18 Segment Reporting GRAP 20 Related party disclosures GRAP 25 Employee benefi ts GRAP 104 Financial instruments GRAP 105 Transfer of functions between entities under common control GRAP 106 Transfer of functions between entities not under common control GRAP 107 Mergers

In order to comply with the requirements of GRAP 3, budget information has been prepared based on the principles of GRAP 24, without adopting the standard.

Changes in accounting policies are only effected if a standard of GRAP requires a change, or if it results in the fi nancial statements providing reliable and more relevant information about the impact of the effects of transactions, other events or conditions on the fi nancial position, fi nancial performance or cash fl ow. Changes in accounting policies are applied either retrospectively or prospectively.

Estimates In the preparation of the fi nancial statements, estimates are only made based on reliable available information that does not undermine the reliability of fi nancial statements. The effect of accounting changes is recognised prospectively, by including them in surplus or defi cit in the period of the change, if the change effects that period only, or in the period of the change and future periods, if the change affects both.

Errors Prior period errors are errors or omissions from and misstatements in the fi nancial statements for one or more prior periods arising from a failure to use, or the misuse of reliable information. Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts and fraud. Errors need not be corrected retrospectively if it is impractical to determine either the period-specifi c or cumulative effect of the error.

1.2 PROPERTY, PLANT AND EQUIPMENT Land and buildings are registered in the name of the Provincial Government of the Western Cape (PGWC) and are made available to 30 Artscape on a permanent basis. Land and buildings not belonging to Artscape are not recognised as property, plant and equipment.

Property, plant and equipment are stated at historical cost less accumulated depreciation. Improvements to the property belonging to PGWC is capitalised and are stated at cost less accumulated depreciation. Work in progress on improvements to leased property are capitalised and are stated at cost and transferred to improvements to leased property upon completion. Vehicles, equipment, music instruments, furniture and fi ttings and computers are depreciated on a straight-line basis over their estimated useful lives to their residual value. The useful life of an item of property, plant and equipment is the period over which the assets are expected to be available for use by Artscape. The residual value is the estimated amount that Artscape would obtain from the disposal of the asset, after deducting the estimated costs of disposal, if the asset was already of the age and in the condition expected at the end of its useful life.

Assets held under fi nance leases are depreciated over their expected useful lives on the same basis as owned assets, or over the term of the lease, where the lease period is shorter (as listed in note 1.5.1 below).

Surpluses and losses on disposal of property, plant and equipment are credited or charged to the statement of fi nancial performance and is recognised as a profi t or loss on disposal.

Depreciation is calculated on the straight-line method, to write off the cost of each asset to estimated residual values over its estimated useful life as follows: Improvement to leasehold property : 10 – 25 years Motor vehicles : 4 – 5 years Cellular phones : 2 years Equipment : 5 years Musical instruments, furniture and fi ttings : 10 years Computer equipment : 3 years Artworks are not depreciated as their current residual value is expected to be greater than their carrying amount. Work in progress is not depreciated and is transferred to improvement to leasehold property upon completion.

ANNUAL REASSESSMENT OF USEFUL LIFE The useful life of an item of property, plant and equipment is the period over which the asset is expected to be available for use by Artscape.

The useful life of assets is reassessed on an annual basis to ensure that the estimated useful lives are still appropriate.

Where a change in the estimated useful life is identifi ed, the change is accounted for as a change in accounting estimate on a prospective basis. In other words, the remaining value is written off on a straight-line basis over the remaining newly assessed useful life.

RESIDUAL VALUES Residual values are reviewed each year and, where estimates differ from those previously determined, the difference is accounted for as a change in accounting estimates on a prospective basis.

IMPAIRMENT At each balance sheet date, Artscape reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that those assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment losses are immediately recognised as an expense, unless the relevant asset is carried at a revalued amount under another Standard, in which case the impairment loss is treated as a revaluation decrease under that other Standard.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years.

A reversal of an impairment loss is immediately recognised as revenue, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash fl ows are discounted to their present value that refl ects current market assessments of the time value of money and the risks specifi c to the asset.

Where the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is written down to its recoverable amount through the statement of fi nancial performance by way of a provision for impairment of carrying value.

1.3 INTANGIBLE ASSETS Intangible assets, being identifi able non-monetary assets without physical substance, are accounted for in terms of the cost model, at cost less accumulated depreciation and any accumulated impairment losses.

Intangible assets comprise of computer software and have been assessed as having a useful life of 3 years with the depreciation charge thereon recognised on a straight line basis.

The residual value of an intangible asset is assumed to be zero as there is no expectation of disposing of it before the end of its economic life.

1.4 INVENTORY Inventory is valued at the lower of cost, determined on the fi rst-in fi rst-out basis, and net realisable value (the estimated selling price in the ordinary course of business, less the costs necessary to make the sale).

1.5 LEASES 1.5.1 Financial Leases Leases are classifi ed as fi nance leases where substantially all the risks and rewards associated with ownership of an asset are transferred to Artscape. Assets subject to fi nance lease agreements are capitalised at their cash cost equivalent and the corresponding liabilities are raised. The cost of the assets is depreciated at appropriate rates on the straight-line basis over the estimated useful lives of the assets. Lease payments are allocated between the lease fi nance cost and the capital repayment using the effective interest rate method. Lease fi nance costs are expensed when incurred. 31

1.5.2 Operating Leases Operating leases are those leases which do not fall within the scope of the above defi nition. Payments made under operating leases are charged to the statement of fi nancial performance on a straight-line basis over the period of the lease. 1.6 FINANCIAL INSTRUMENTS Financial instruments recognised on the statement of fi nancial position, include cash and cash equivalents, trade and other receivables, and trade and other payables. Management determines the classifi cation of its fi nancial assets and fi nancial liabilities at initial recognition. The classifi cation depends on the purpose for which the fi nancial assets were acquired.

1.6.1 Trade and other receivables Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for doubtful debts. Trade and other receivables are assessed individually for impairment in terms of recoverability.

1.6.2 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as deposits held on call with banks and are stated at cost. Interest on cash in bank and call accounts are accrued on a monthly basis and disclosed as interest received in the statement of fi nancial performance.

1.6.3 Trade and other payables Trade and other payables comprise trade payables, accruals and amounts owed to third parties in relation to employee costs. Trade and other payables are categorised as a fi nancial instrument under current liabilities and recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, where applicable.

1.7 PROVISIONS Provisions are recognised where the Institution has a present legal or constructive obligation as a result of a past event; a reliable estimate of the obligation can be made and it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation.

1.8 EMPLOYEE BENEFITS From 1 January 1997, employees could elect to join either the existing pension fund, a defi ned benefi t fund, or the newly formed Provident Fund for the Performing Arts Institutions, a defi ned contribution fund.

DEFINED BENEFIT PLANS The Institution continued to contribute to the Performing Arts Institutions Pension Fund, a defi ned benefi t plan, until 30 September 2009. This fund is registered under and governed by the Pension Funds Act, 1956 as amended. The Pension Fund of the Performing Arts Institutions qualifi es as a multi-employer plan as defi ned by IAS 19. The assets of the funds are pooled. Insuffi cient information is available to determine Artscape’s proportionate share of the planned assets and employment benefi t costs of the defi ned benefi t plan. Hence, the plan has been accounted for as if it were a defi ned contribution plan. Contributions payable to the fund are recognised as an expense in the year to which they relate.

DEFINED CONTRIBUTION PLANS Contributions in respect of defi ned contribution plans are recognised as an expense in the year to which they relate. Multi-employer funds, as defi ned by IAS19 Employee Benefi ts, where the enterprise is unable to determine its proportionate share of the fund’s obligation and assets are treated as defi ned contribution plans.

POST-RETIREMENT MEDICAL BENEFITS With effect from 31 March 2000 the Institution changed its accounting policy relating to post-retirement medical benefi t costs. Provision is made for post-retirement benefi ts in the form of medical aid benefi ts for certain employees who were pensioned prior to 1997. The total cost is assessed in accordance with the advice of qualifi ed and independent actuaries. The amount accrued for post-retirement medical benefi ts are included as provisions. The cost of providing benefi ts under this plan is determined using the projected unit credit actuarial valuation method. The current service in respect of the defi ned benefi t plan is recognised as an expense in the current period. Past service costs and actuarial gains and losses relating to the above-mentioned retired employees are charged to the statement of fi nancial performance in full in the current period.

1.9 REVENUE Revenue includes the following:

1.9.1 Turnover Turnover comprises the total grants received from government departments (recognised as per note 1.10), as well as venue rental revenue, marketing and publicity services, costume manufacturing and hiring of costumes and other décor and sponsorship received.

Sponsorship received is recognised as revenue, on a systematic basis, over the period necessary to match them with the related costs, which they are intended to compensate.

1.9.2 Interest Interest is recognised at the effective yield on a time proportion basis over the period held.

1.10 GOVERNMENT GRANTS The principles of GRAP 23 (revenue from non-exchange transactions) were applied. The principles of this standard require that the government grant is recognised on the day the institution is satisfi ed that the conditions of the grant have been complied with.

Government grants that carry a condition that, if it is not used it must be repaid, are deferred as revenue until such time as it is utilised or becomes repayable. Deferred government grants will only be released to revenue once the conditions of the grant have been complied with.

1.11 IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE Irregular expenditure means expenditure incurred in contravention of, or not in accordance with a requirement of any applicable legislation, including the PFMA.

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised.

All irregular and fruitless and wasteful expenditure is charged against income in the period in which they were incurred.

32 1.12 COMPARATIVE FIGURES Comparative fi gures have been adjusted to conform to changes in the presentation of the current year, where necessary. 2. FIXED PROPERTY 2.1 PROPERTY, PLANT AND EQUIPMENT 2012 Improvements Motor Musical Furniture to leased Work in vehicles Equipment instruments and fi ttings Computers property Progress Artworks Total (R) Beginning of year - cost 983 212 6 543 813 464 765 3 496 276 1 341 563 49 449 798 4 908 935 80 649 67 269 011 - accumulated depreciation (855 720) (4 000 715) (404 189) (1 992 723) (1 076 418) (2 187 125) – – (10 516 890) Net book value 127 492 2 543 098 60 576 1 503 553 265 145 47 262 673 4 908 935 80 649 56 752 121 Current year movements - additions – 4 697 353 – 1 305 521 413 631 4 102 911 48 072 728 104 815 58 696 959 - transfers – – – – – 2 089 998 (2 089 998) – – - depreciation (84 985) (925 925) (8 273) (342 382) (206 195) (2 328 545) – – (3 896 305) - assets scrapped / sold – (3 419) – (5) (28) – – – (3 452) - cost – (163 395) – (11 804) (155 192) – – – (335 391) - accumulated depreciation – 6 311 107 – 11 799 155 164 – – – 331 939

Balance at end of year 42 507 6 311 107 52 303 2 466 687 472 553 51 127 037 50 891 665 185 464 111 549 323 Made up as follows: - assets at cost 983 212 11 072 771 464 765 4 789 993 1 600 002 55 642 707 50 891 665 185 464 125 630 579 - accumulated depreciation (940 705) (4 761 664) (412 462) (2 323 306) (1 127 449) (4 515 670) – – (14 081 256) Net book value 42 507 6 311 107 50 303 2 466 687 472 553 51 127 037 50 891 665 185 464 111 549 323 Carrying value of fully depreciated assets still in use 12 332 41 258 118 – –– 761

RESTATED 2011 Improvements Motor Musical Furniture to leased Work in vehicles Equipment instruments and fi ttings Computers property Progress Artworks Total (R) Beginning of year - cost 1 057 006 4 371 527 441 265 2 828 269 1 122 180 30 820 909 – 80 649 40 721 805 - accumulated depreciation (844 527) (3 389 273) (396 310) (1 702 616) (977 886) (638 224) – – (7 948 836) Net book value 212 479 982 254 44 955 1 125 653 144 294 30 182 685 – 80 649 32 772 969 Current year movements - additions – 2 302 773 23 500 672 536 242 268 23 537 824 4 908 935 – 26 778 901 - depreciation (84 986) (737 949) (7 879) (294 614) (121 415) (1 548 901) – – (2 795 744) - assets scrapped / sold (1) (3 980) – (22) (2) – – – (4 005) - cost (73 794) (130 487) – (4 529) (22 885) – – – (231 695) - accumulated depreciation 73 793 126 507 – 4 507 22 883 – – – 227 690

Balance at end of year 127 492 2 543 098 60 576 1 503 553 265 145 52 171 608 4 908 935 80 649 56 752 121 Made up as follows: - assets at cost 983 212 6 543 813 464 765 3 496 276 1 341 563 54 587 705 4 908 935 80 649 67 269 011 - accumulated depreciation (855 720) (4 000 715) (404 189) (1 992 723) (1 076 418) (2 189 415) – – (10 516 890) Net book value 127 492 2 543 098 60 576 1 503 553 265 145 52 171 608 4 908 935 80 649 56 752 121 Carrying value of fully depreciated assets still in use 12 326 41 246 118 – – – 743

33 Restated 2012 2011 R R 2.2 INTANGIBLE ASSETS Carrying amount at beginning of year 75 247 122 722 - Cost 555 965 534 351 - Accumulated depreciation (480 718) (411 629) Current year movements - Additions 456 949 21 614 - Depreciation (193 130) (69 089) - Assets scrapped / no longer in use (2) – Cost (2 271) – Accumulated depreciation 2 269 – Carrying amount at end of year, made up as follows 339 064 75 247 - Cost 1 010 644 555 965 - Accumulated depreciation (671 580) (480 718)

3. INVENTORY Consumables – cafeteria, restaurant and bars 255 768 37 643

4. TRADE AND OTHER RECEIVABLES Trade receivables (analysed below) 4 608 311 1 101 738 Prepayments 156 185 107 168 Other receivables 469 414 324 790 National Lotteries Distribution Trust Fund - 193 604 5 233 910 1 727 300

Provision for doubtful debts has been made for debts where recovery appears to be doubtful.

Trade receivables analysis Current 333 894 176 867 Less than 30 days 2 836 497 139 630 Less than 60 days 444 534 103 732 Less than 90 days 87 653 79 745 Over 90 days 1 172 396 833 101 Provision for doubtful debts (266 663) (231 337) 4 608 311 1 101 738 As at 31 March, the ageing analysis of trade receivables are as follows: Past due but not impaired Neither past due Total nor impaired Current <30 days <60 days <90 days >90 days 2012 4 608 311 3 251 866 162 774 75 983 125 733 81 715 910 240 2011 1 101 738 391 491 16 708 41 572 51 575 58 523 541 869

Provision for doubtful debts Carrying amount at beginning of year 231 337 279 249 Provisions this year 35 326 17 708 Provisions reversed – (65 620) Carrying amount at end of year 266 663 231 337

5. NET EXPENDITURE ON FUTURE PRODUCTIONS All revenue and expenditure relating to productions and projects in respect of which the majority of the performances have not been presented by 31 March 2012 is deferred to the following fi nancial year, to the extent that such expenses are considered recoverable from future production revenue. 310 339 36 306

6. CASH AND CASH EQUIVALENTS Cash on hand 38 859 27 976 Cash at bank – ABSA 22 570 27 421 Cash at bank – Nedbank 1 287 849 180 238 Funds on deposit – Nedbank 21 718 697 42 117 513 23 067 975 42 353 148

34 Restated 2012 2011 R R 7. PROVISIONS Non-current liabilities 1 303 000 1 220 000 Current liabilities 174 000 160 000 1 477 000 1 380 000 Consisting of:

7.1 POST-RETIREMENT MEDICAL BENEFITS Provision is made for certain post-retirement medical benefi ts by funding a portion of the medical aid contributions of eligible retired employees. Refer to note 20.2. Gross carrying amount at beginning of year 1 380 000 1 309 000 Post-retirement medical benefi t expense (calculated below) 269 275 231 293 Contributions paid (172 275) (160 293) Gross carrying amount at end of year 1 477 000 1 380 000 accounted for as follows: Non – current liabilities 1 303 000 1 220 000 Current liabilities 174 000 160 000 1 477 000 1 380 000 Post-retirement medical benefi t expense Interest cost (119 275) (113 293) Actuarial loss (150 000) (118 000) (269 275) (231 293) 7.2 PENSION FUND LIABILITY Gross carrying amount at beginning of year – 11 780 091 Increase in provision – 2 2 693 614 Settlement – Special virement – DAC – (14 419 000) Settlement – Artscape – (54 705) Gross carrying amount at end of year – – The pension fund liability was fully settled on 31 March 2011.

8. FINANCE LEASE LIABILITY Finance lease liability 9 821 16 299 Less: Short term portion (Due within one year) 9 161 11 018 Due later than one year but not later than 5 years 660 5 281 The fi nance lease liability is in respect of cellular phone contracts and is classifi ed as fi nance leases.

9. TRADE AND OTHER PAYABLES Trade payables 11 783 393 2 430 803 Accruals 780 283 890 608 Credit card 26 722 26 788 Other 101 622 612 705 12 692 020 3 960 904

10. DEFERRED GOVERNMENT GRANT REVENUE Carrying amount at beginning of year 40 028 867 14 562 144 Amount received during the current year – DAC 26 650 000 36 716 400 Amount received/invoiced during the current year – PGWC 16 771 738 19 285 585 Amount utilised during the year – DAC (34 181 891) (12 973 118) Amount utilised during the year – PGWC (33 057 323) (17 562 144) Carrying amount at end of year 16 211 391 40 028 867 Consisting of: Funding from DAC 16 211 391 23 743 282 Funding from PGWC – 16 285 585 16 211 391 40 028 867

In terms of GRAP 23 the deferred government grant will be released to revenue as and when the conditions of the grant have been complied with. Refer to note 22.

35 11. UNUTILISED SPONSORSHIPS Closing Opening Balance Received Utilised Balance ARTSCAPE PROJECTS Department of Social Development (Fair Play Fair Life) 203 595 – – 203 595 Grandwest Corporate Social Investment 204 671 400 000 604 671 – Department of Social Services (Mitchell’s Plain Oral Project) 29 814 – 14 917 14 897 ABSA (Mitchell’s Plain Oral Project) 29 100 – 29 100 – Grandwest Corporate Social Investment (Wellington Minstrels) – 60 000 16 501 43 499 Department of Cultural Affairs & Sport (Mural Project) 20 000 – 20 000 – ABSA – 143 500 143 500 – Acnode – 7 000 7 000 – Canon – 24 000 24 000 – Computicket – 100 000 100 000 – Cederberg Festival – 55 000 55 000 – Department of the Premier – 32 141 32 141 – Die Rupert Musiekstigting – 80 000 80 000 – Distell – 110 000 110 000 – Dr AH Brody – 5 000 5 000 – Media 24 – 140 590 140 590 – Netto Financial Services – 30 000 30 000 – Page Automation – 100 000 100 000 – Pauline Nossel – 4 000 4 000 – Pieter Schoeman – 4 000 4 000 – Foundation – 20 000 20 000 – Simm-Net – 18 866 18 866 – Theatre Taliipot – 75 000 75 000 – Theewaterskloof Municipality – 80 000 80 000 – Yalta Menuhin Memorial Fund – 4 000 4 000 – (Utilised disclosed as sponsorship received) 487 180 1 493 097 1 718 286 261 991

HOSTED PROJECTS (not sponsorship) SIDA – Musical & Choral Project 41 066 – 186 40 880 Western Cape Education Dept. (Artists in residence) 19 044 – – 19 044 Uthando Project 3 000 – 3 000 – 550 290 1 493 097 1 721 472 321 915

2012 Restated R 2011 R 12. OTHER OPERATING REVENUE Venue rental 4 793 613 3 955 574 Manufacturing services & hiring 930 759 949 255 Marketing and advertising 1 071 783 1 268 746 Production revenue 2 812 107 2 491 551 Profi t on disposal of assets 8 546 30 995 Revenue – cafeteria, restaurant and bars 4 727 385 1 304 780 Other revenue 314 960 410 017 Sponsorship – General (refer to note 11) 1 718 286 2 027 621 Sponsorship – National Lotteries Distribution Trust Fund 1 700 000 1 164 004 18 077 439 13 602 543

36 2012 Restated R 2011 R 13. ADMINISTRATIVE EXPENSES Auditors’ remuneration (external) 851 304 556 589 Auditors’ remuneration (internal) 396 572 245 506 Bad debts 35 326 17 708 Bank charges 127 825 127 891 Catering – cafeteria, restaurant and bars 6 019 170 1 905 410 Cleaning 2 669 997 2 273 258 Consultancy fees 297 884 362 930 Council and audit committee members’ remuneration 42 238 43 940 Depreciation – property, plant & equipment 3 896 305 2 795 744 Depreciation – intangible assets 193 130 69 089 Electricity and water 5 011 680 5 048 802 Insurance 177 272 204 671 IT maintenance and support 373 307 357 231 Legal fees 109 034 76 066 Manufacturing consumables 223 567 504 748 Marketing and publicity 2 696 918 2 797 989 Offi ce costs and telephone 972 923 922 669 Operating consumables 266 504 308 389 Operating leases 390 329 542 302 Other sundry expenses 619 408 673 328 Repairs and maintenance 4 168 218 2 025 388 Security 3 220 429 3 165 978 Staff related expenses 1 149 795 1 143 206 Transport and travelling (including after hours transport) 1 614 553 1 086 733 35 523 688 27 255 565

14. COMPENSATION OF EMPLOYEES Provident fund contributions 2 777 023 2 368 874 Medical aid contributions 1 745 043 1 463 895 Gross salaries and wages 23 347 064 21 633 917 27 869 130 25 466 686

15. CASH FLOWS FROM OPERATING ACTIVITIES Net surplus for the year 54 998 827 33 012 443 Adjustments: Depreciation 4 089 435 2 864 833 Interest received – cash resources (1 812 441) (1 033 991) Profi t on disposal of assets (8 546) (30 995) Post-retirement medical expense 97 000 71 000 Operating surplus before working capital changes 57 364 275 34 883 290 (Increase) / Decrease in trade and other receivables (3 506 610) 664 032 (Increase) / Decrease in net expenditure to be incurred on future productions (274 033) 97 942 (Increase) in inventory (218 125) (13 341) (Decrease) / Increase in current liabilities (excluding short term lease and short term post- retirement medical provision) (15 314 735) 12 185 289 38 050 772 47 817 212

16. ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT Equipment (4 697 353) (2 302 773) Musical Instruments – (23 500) Furniture & Fittings (1 305 521) (672 536) Computers (413 631) (242 268) Improvements to leased property (4 102 911) (18 628 889) Work in progress (48 072 728) (4 908 935) Artworks (104 815) – (58 696 959) (26 778 901)

37 17. RECONCILIATION OF BUDGET SURPLUS WITH THE SURPLUS IN THE STATEMENT OF FINANCIAL PERFORMANCE 2012 Restated R 2011 R Net surplus per the statement of fi nancial performance 54 998 827 33 012 443 Adjusted for: Increase in operational grant from DAC – – Increase in special grant from DAC for settlement of pension fund liability – (14 419 000) Increase in capital works grant from DAC and PGWC (22 239 214) (21 288 111) Increase in other operating revenue (5 358 794) (1 572 006) Increase in interest received (580 226) (226 114) Decrease in administrative expenses (due to the capitalisation of repairs and maintenance) (30 617 412) (1 675 956) Increase / (Decrease) in compensation of employees 292 030 (859 400) Increase in other operating expenses (performing arts) 3 450 959 4 344 079 Increase in provisions 54 275 2 684 907 Net surplus per approved budget 445 842

18. OPERATING LEASES The operating leases comprise rentals charged for the leases of telephone and photocopier equipment. The minimum operating lease commitments for these non-cancellable operating leases are: Due within one year 143 097 386 380 Due later than one year but not later than 5 years 63 784 15 308

19. REMUNERATION 19.1 EMOLUMENTS OF COUNCIL, AUDIT COMMITTEE AND HUMAN RESOURCES COMMITTEE Non–executive directors (fees as council members) Prof S Fikeni (Chairperson) 6 578 – Prof N Mtetwa (Deputy–Chairperson) 4 300 7 840 Ms R Benjamin-Swales (payable to Ernst & Young) 3 910 4 200 Mr D Cloete-Hopkins 3 710 6 560 Mr T Tsukudu 2 580 3 600 Prof L Mazwi-Tanga 1 290 1 800 Mr N Muyanga 1 380 – Mr B Losper 1 380 – Mr A Horne 1 610 – Ms M Lucouw 1 610 – Ms B Biko (employed by City of Cape Town – no fee payable) – – Prof B de Lacey Figaji (donated to school) 600 1 200 Mr B Khan (payable to MHG) 600 1 200 Prof N Basson 600 1 200 Ms S Ngaba (employed by public entity – no fee payable) – – 30 148 27 600 Audit Committee Members (fees as members) Ms R Benjamin-Swales (payable to Ernst & Young) 2 940 4 900 Mr B Losper 980 – Mr MA Khan (donated to charity) 2 940 1 960 Mr B Khan (payable to MHG) – 2 940 Prof B de Lacey Figaji (donated to school) 1 960 2 940 8 820 12 740 Human Resources Committee Members Mr T Tsukudu 1 290 1 800 Prof L Mazwi-Tanga 1 290 1 800 Mr N Muyanga 690 – 3 270 3 600 42 238 43 940

38 19.2 EMOLUMENTS OF EXECUTIVE DIRECTORS Basic Salary and Social Contributions 2012 2011 allowances (Retirement & Medical) TOTAL TOTAL Mr M Maas 1 073 416 216 419 1 289 835 1 140 976 Mr P Lourens 906 353 209 604 1 115 957 986 605 Mr A Cockburn 808 399 176 054 984 453 876 084 Ms M Le Roux 808 464 188 484 996 948 887 562 3 596 632 790 561 4 387 193 3 891 227

20. RETIREMENT BENEFIT INFORMATION 20.1 PROVIDENT FUND CURRENT YEAR CONTRIBUTIONS The defi ned contribution Provident Fund, which covers 98 employees (2011: 89) at year-end, employer and employee contributions in the current year amounted to R4 031 685 (2011: R3 431 668).

20.2 POST-RETIREMENT MEDICAL BENEFIT Artscape operates a post-retirement benefi t scheme for eligible retired employees. The liability raised in note 7 above is in respect of the 7 (2011: 7) qualifying employees. The cost of this is recognised, as determined by independent actuaries, over the estimated service lives of the employees concerned. The most recent valuation of this liability was 31 March 2012.

Trend Information The trend information as required by IAS 19 for the previous 5 years, determined by the independent actuaries is:

R’ Million Mar-12 Mar-11 Mar-10 Mar-09 Mar-08 Present Value of Obligations 1.477 1.380 1.309 1.247 1.396 Fair Value of Plan Assets – – – – – Present Value of Obligations in excess of Plan Assets 1.477 1.380 1.309 1.247 1.396 Experience Adjustments (Actuarial Gain/(Loss) before Changes in Assumptions) In respect of Present Value of Obligations (0.105) (0.077) (0.104) 0.054 0.345 In respect of Fair Value of Plan Assets – – – – –

Valuation method and main assumptions The actuarial valuation method used by the actuaries to value the liabilities is the Projected Unit Credit Method prescribed by IAS19. Future benefi ts valued are projected using specifi c actuarial assumptions and the liability for in-service members is accrued over expected working lifetime. Any plan assets are valued at current market value as required by IAS19. In order to undertake the valuation, it is necessary to make a number of assumptions. The most signifi cant assumptions used for the current and previous valuations were a discount rate of 8.25% (2011: 9.25%) and medical cost infl ation of 7.50% (2011: 8%).

Sensitivity Results The results of the valuation are extremely sensitive to the assumptions used. The valuation results set out above are based on a number of assumptions. The value of the liability could turn out to be overstated or understated, depending on the extent to which actual experience differs from the assumptions adopted. The liability was recalculated to show the effect of: • A one percentage point decrease or increase in the rate of health care cost infl ation; • A fi ve or ten percentage point increase in the rate of health care cost infl ation for the next fi ve years, thereafter returning to a health care cost infl ation of 7.50% p.a.; • A one percentage point decrease or increase in the discount rate.

Central Assumption Health Care Cost Infl ation 7.50% -1% 1% Accrued Contributions Liability (R’ Million) 1.477 1.394 1.569 % Change – -5.6% +6.2% Current Service Cost + Interest Cost (R’ Million) 0.114 0.107 0.121 % Change – -6.1% +6.1% Central Assumption Health Care Cost Infl ation Sensitivity results from previous valuation 8.0% -1% 1% Current Service Cost + Interest Cost 2010/2011 (R’ Million) 0.119 0.112 0.127 % Change – -5.9% +6.7% Central Assumption Health Care Cost Infl ation 7.50% +5% for 5 years +10% for 5 years Accrued Contributions Liability (R’ Million) 1.477 1.742 2.051 % Change – +17.9% +38.9% Central Assumption Discount rate 8.25% -1% +1% Accrued Contributions Liability (R’ Million) 1.477 1.572 1.392 39 % Change – +6.4% -5.8% 21. FINANCIAL INSTRUMENTS Financial instruments carried on the statement of fi nancial position are classifi ed as fi nancial assets and as fi nancial liabilities in terms of IAS39 and consist of receivables and prepayments, cash and cash equivalents and trade and other payables.

21.1 FAIR VALUES At 31 March 2012 and 31 March 2011 the carrying values of fi nancial instruments reported in the fi nancial statements approximate their fair value. 21.2 MARKET RISK Interest rate Artscape deposits short-term cash surpluses with a major bank of a high quality credit standing and therefore has low interest rate exposure on its bank accounts. These deposits attract interest at rates linked directly to the prime overdraft rate. Currency and other price risk Artscape is not exposed to any of the above named risks.

21.3 CREDIT RISK Cash and cash equivalents Credit risk is mitigated by the fact that Artscape only deposits cash surpluses with major banks of high credit standing. The maximum exposure to credit risk at the reporting date is the bank balances as disclosed in the Cash Flow Statement. The table below shows the credit rating and balances of the banks used by Artscape. Rating 2012 2011 Nedbank Limited BBB 23 006 546 42 297 751 ABSA Bank Limited AA+ 22 570 27 421

Accounts and other receivables Credit risk is mitigated through management’s assessment of the credit quality of debtors, taking into account their fi nancial position, payment history, their production track record and the perceived perception of the quality of the production prior to it being staged. Each production is assessed individually and the agreement is negotiated and assessed in consultation with the respective producer or promoter. Without classifying debtors differently, the assessment is done to ensure a fair practice and an equitable agreement for all users of the same space whilst ensuring the presentation of excellent and varied products, meeting audience expectations and public demand. No collateral is held for any debtor.

The maximum exposure to credit risk at the reporting date is the fair value of trade and other receivables as disclosed in note 4. Five debtors that constitute 88% of the trade receivables balance have a favourable payment history. The recoverability of amounts due by the professional arts companies associated with Artscape is dependent on the continued public and private funding for these arts companies which is needed to continue their operations. Management is of the opinion that these debts are fully recoverable. 21.4 LIQUIDITY RISK Artscape manages liquidity risk by monitoring its cash fl ow requirements. Council is of the opinion that the net carrying value of the liabilities approximate their fair value and that Artscape has suffi cient resources to settle its short term liabilities. The table below analyses Artscape’s fi nancial liabilities into maturity groupings based on the remaining period at the reporting date to the contractual maturity date. Less than Maturity analysis 2012 12 Months Over 12 Months Trade payables 11 783 393 – Accruals 780 283 – Credit cards 26 722 – Other payables 101 622 – Unutilised sponsorships 321 915 Finance lease liability 9 161 660 Post-retirement medical liability 174 000 1 303 000 13 197 096 1 303 660

Less than Maturity analysis 2011 12 Months Over 12 Months Trade payables 2 430 803 – Accruals 890 608 – Credit cards 26 788 – Other payables 612 705 – Unutilised sponsorships 550 290 – Finance lease liability 11 018 5 281 Post-retirement medical liability 160 000 1 220 000 4 682 212 1 225 281

The deferred government grant revenue is not a fi nancial liability as it is similar to revenue received in advance, and has been excluded from the maturity analysis. It will only become a fi nancial liability if it becomes re-payable.

40 2012 2011 21.5 FINANCIAL INSTRUMENTS PER CATEGORY R R 21.5.1 Loans and receivables Assets per statement of fi nancial position Trade and other receivables (excluding prepayments) 5 190 111 1 620 132 Cash and cash equivalents 23 067 975 42 353 148 28 258 086 43 973 280 21.5.2 Liabilities at fair value Liabilities as per statement of fi nancial position Trade and other payables 12 692 020 3 960 904 Unutilised sponsorship income 321 915 550 290 Finance lease liabilities 9 821 16 299 Post-retirement medical liability 1 477 000 1 380 000 14 500 756 5 907 493 22. RELATED PARTIES 22.1 DEPARTMENT OF ARTS & CULTURE The National Department of Arts & Culture (DAC) has ownership control over Artscape. DAC provides Artscape with an operational grant, additional funding for essential maintenance and funding for special projects and events. Details of the transactions between DAC and Artscape are as follows: Revenue received Operational grant 42 332 000 39 878 000 Capital works grant 26 650 000 36 716 400 Special virement – pension fund liability – 14 419 000 Government grant deferred 16 211 391 23 743 282 The deferred government grant will be fully utilised during the 2012/2013 fi nancial year as part of the completion of the space optimisation projects (Tender ART1/2011 for the Artscape Complex Extension and Alteration).

22.2 PROVINCIAL GOVERNMENT OF THE WESTERN CAPE The Provincial Government of the Western Cape (PGWC) owns the Artscape Theatre Centre. No rental for the use of the premises is being charged to Artscape. PGWC is responsible for the structural maintenance of the building and the maintenance of stages. Details of the transactions between Artscape and PGWC are as follows: Revenue received Annual maintenance 142 000 135 000 Contribution to the refurbishment of the Opera House – 3 813 028 Compliance, stage equipment and theatre roof 16 771 738 15 258 000 Geotechnical surveys and consulting fees – 214 557 Government grant deferred – 16 285 585

Amount outstanding (included in Trade receivables) 2 800 481 –

23. IRREGULAR EXPENDITURE Opening balance 5 130 934 1 934 163 Add: Irregular expenditure – current year 2 224 166 3 196 771 7 355 100 5 130 934 Analysis of expenditure awaiting condonation per age classifi cation Current year 2 224 166 3 196 771 Prior year 5 130 934 1 934 163 7 355 100 5 130 934 Expenditure incurred without applying the preference point system to all procurement of goods and services above R30 000 as required by section 2(a) of the Preferential Procurement Policy Framework Act, 2000 (Act No.5 of 2000). 1 745 839 3 196 771

Expenditure incurred without obtaining at least three written quotations for expenses between R10 000 and R500 000 as required by Practice Note 8 of 2007/2008 478 327 – 2 224 166 3 196 771 24. CONTINGENT LIABILITIES Section 53(3) of the Public Finance Management Act, 1999 (Act No. 1 of 1999) indicates that a public entity may not budget for a defi cit and may not accumulate surpluses unless the prior written approval of the National Treasury has been obtained.

Artscape requested approval from the executive authority (DAC) to retain the accumulated surplus as at 31 March 2012, but to date the approval has not been obtained. Based on approval obtained in prior years, management is of the opinion that National Treasury will grant such approval. Should approval not be obtained, a liability for the accumulated surplus of R54 998 827 may exist.

41 25. PUBLIC FINANCE MANAGEMENT ACT, 1999 (ACT NO. 1 OF 1999) Section 55 (2) No material losses through criminal conduct or fruitless or wasteful expenditure were incurred during the year. Irregular expenditure has been disclosed in note 23. Section 55 (3) Council may not accumulate surpluses unless written approval of the National Treasury has been obtained. Approval for the retention of the accumulated surplus as at 31 March 2011 was obtained. Section 54 (2) In terms of the PFMA and Treasury Regulation 28.1.5 the Council has developed and agreed to a framework of acceptable levels of materiality and signifi cance.

26. PRIOR PERIOD ADJUSTMENTS Revenue – cafeteria, restaurant and bars Prior to the current year, revenue from the catering services (staff canteen) was set off against the catering expenses. In terms of GRAP 1 revenue may not be set off against expenditure. The effect of this adjustment on the prior year balances is as follows: Net effect on the Statement of Financial Performance Increase in other operating revenue 1 304 780 Increase in administrative expenses (catering, food & beverages) 1 304 780 Effect on operating surplus –

Net effect on the Statement of Financial Position –

Property, plant & equipment Prior to the current year, work in progress was included in improvements to leased property. In the current year the disclosure of property, plant and equipment was amended to separately disclose work in progress. The effect of this adjustment on the prior year balances is as follows: Net effect on the Statement of Financial Performance –

Net effect on the Statement of Financial Position Increase in work and progress 4 908 935 Decrease in improvements to leased property (4 908 935) Effect on property, plant & equipment –

42 Acknowledgements Artscape wishes to thank all sponsors and partners which have contributed towards the past year’s success.

• ABSA • Acnode • Alliance Francaise • Austrian Consulate General • British Council • Canon Business Solutions • Cape Eye Hospital • Cape Philharmonic Orchestra • • • Cederberg Festival • City of Cape Town • Computicket • Dance for All • Department of Arts & Culture • Die Burger • Die Son • Distell Foundation • Dr AH Brody Jesus Christ • Field Band Foundation Superstar • Fine Music Radio • French Consulate General • Golden Arrow Bus Company (GABS) • Grandwest Corporate Social Investment • HCI Foundation • Heart 104.9 FM • iKapa Dance Theatre • Jazzart Dance Theatre • Jikeleza Dance Company • Mamela Project • Maynardville Theatre Arts Trust • Media24 • Mike van Graan • National Lotteries Distribution Trust Fund (NLDTF) • Netto Financial Services • Performing Arts Network of South Africa (PANSA) • Page Automation (Canon) • Pauline Nossel • Pieter Schoeman • Rupert Musiekstigting • Sanlam Foundation • Simm-Net • Siyasanga • Stigting vir die Bemagtiging van Afrikaans (SBA) • Suidoosterfees • Theatre Taliipot (!AÏA Project) • Theewaterskloof Municipality • Uthando Project • Western Cape Choral Music Association (WECCMA) • Western Cape Cultural Commission • Western Cape Department of the Premier • Western Cape Department of Cultural Affairs, Sport and Recreation • Western Cape Department of Economic Development and Tourism • Western Cape Department of Social Development and Poverty Alleviation • Western Cape Department of Transport and Public Works • Western Cape Education Department • Yaltah Menuhin Memorial Fund • ZipZap Circus School