FILM AND PUBLICATION BOARD’S 2008/09 ANNUAL REPORT PRESENTATION

10 November 200910 November 2009Home Affairs Parliamentary Portfolio CommitteeHome Affairs Parliamentary Portfolio Committee

PRESENTATION OVERVIEWPRESENTATION OVERVIEW

Mandate

Vision

Strategic Objectives

Performance Information

Performance Information as per Strategic Plan

Financial Overview

1. Legislative Mandate1. Legislative Mandate

The Film and Publication Board (FPB) is a legal entity established in accordance with the Films and Publications Act, 1996, amended in 2009. It performs the functions, exercise powers and discharge duties assigned to it by the Act to ensure that the following objectives of the Act are achieved;

• regulating the creation, production, possession, broadcasting and distribution of films, interactive computer games and certain publications;

• providing consumer advice to enable adults to make informed viewing, reading and gaming choices, both for themselves and for children in their care;

• protecting children from exposure to disturbing and harmful materials and from pre-mature exposure to adult experiences; and

• making the use of children in pornography punishable

2. Where you can find our offices

FPB Head Office

3. Vision

VISIONA credible and visible content- classification authority

Our purpose and statement of highest aspiration is:

“To ensure efficient and effective consumer protection, through regulation of media content, while empowering the public, especially children,

through robust information sharing” 

4. Strategic objectives

1. To ensure an enhanced, integrated and constitutionally sound regulatory framework, so as to enable informed choices about media content whilst creating a healthy and child safe media environment (SO1).

2. To develop and maintain organisational capacity and capability to ensure effective management and implementation of the Act (SO2)

3. To enhance leadership and management of the Film and Publication Board resulting in sound corporate governance and compliance (SO3)

4. To ensure that the business and work of the FPB reflects contemporary norms and values, by forming and maintaining national and international partnerships and coordinating initiatives that support the business of the FPB (SO4)

5. SO5- To position the FPB as a visible and credible , professionally run organisation that regulates media through classification content (SO5)

5. PERFOMANCE 5. PERFOMANCE INFORMATION INFORMATION

HIGHLIGHTSHIGHLIGHTS

5.1 Performance Highlights

SO Target Status

SO1 Align classification system with Amendment Bill

Delays in enactment of Amendments impacted negatively to this target - carried over to 09/10

Development of classification guidelines

New guidelines developed and gazetted for comments and being implementedMore than 50 written submissions received from members of the public

Develop and implement an integrated classification system

Standard Operating Procedures updated as per IA recommendations; Electronic reporting database developed (not implemented yet due to delays in appointment of examiners); improved capturing and reporting of classification info (refer to Graph 1 for classification stats)

Develop capacity and strengthen the compliance monitoring function

10 additional monitors appointed, offsite access to the compliance database by monitors in order to verify classification data displayed in DVDs, publications, fleet expanded to accommodate compliance monitoring function etc

Develop and implement a tracking mechanism for compliance monitoring

Resulted in increased confiscation of unclassified DVDs; increased prosecutions of non compliant distributors; increased compliance monitoring activities etc (refer to graph 2 for stats)

5.2 Performance Highlights

S0 Target Status

SO1 Implement PoA on child protection against pornography

• National Indaba held in June 2008, more than 200 delegates drawn from Government, NGOs, Private Sector, International organisations participated•Establishment of a standalone unit to implement outreach and awareness initiatives •Ministerial Task team established•Internet hotline and call centre established •Infrastructure upgraded •Collaboration between FPB and law enforcement agencies strengthen.

SO2 Upgrade FPB’s financial management system and processes

Finance and SCM policies reviewed, approved in 09/10 and being implemented in order to strengthen controls and accountability

Review and implement HR strategy

•Wellness program targeting all employees, in particular examiners and content analysts for debriefing and desensitization purposes implemented• Competency Assessments for all Managers and Execs (a majority of participants found to be possessing the required competencies)

5.3 Performance Highlights

SO Target Status

SO2 Review and implement HR strategy

•Balanced Scorecard introduced as a pilot• 10% of the staff complement received bursaries, and study assistance• more than 70% of the staff component received relevant training• 5 resignations • 1 disciplinary hearing which led to the HR Manager being dismissed. Case at CCMA currently• 1 dispute lodged with CCMA regarding salary adjustments; matter referred to Labour Court for review as CCMA did not have jurisdiction• 1 dismissal carried over from 2007/8, matter at Labour Court

SO3 Strengthen leadership abilities and competencies

New Managers and Execs enrolled for leadership program

5.4 Performance Highlights

SO Target Status

SO3 Improve FPB compliance with Corporate Governance prescripts

Amendment Bill not yet enacted into legislation, as a result• Council not appointed • Current Board not fully compliant as the number of Executives is more than non Execs• Council Charter not approved

SO4 Develop and implement a stakeholder relations strategy

•Strategy developed and approved• FPB has a database of stakeholders and ongoing engagements held with them in line with organisational strategy

Undertake at least 4 research projects a year in support of the core business objectives

The following is an outline of key research projects undertaken•Survey on Sexually explicit material and Regulation•Interactive Games (Behavioral effect on children)•Corporate paedophilia•Analysis of media reports on child pornography•New media and Youth (Gauteng Schools)

5.5 Performance Highlights

SO Target Status

SO5 Information access Resource centre set up and functional; only serving FPB staff but being expanded and linked to university libraries for research purposes.

Media relations intensified• covered in approximately 250 media platforms from various mediums•62% of the coverage favourable to FPB’s reputation• Outreach and awareness extended to non traditional platforms such as SEXPO,

FPB website revamped

5.6 Performance Highlights

• Child Pornography Cases Reported 51 online reports received

• 9 confirmed child pornography, and hosted outside SA

• None Hosted in SA• 1 Referred to police (Sondeza, not hosted in SA

but had images looking like SA children)

Graph 1: Classification Stats

Graph 2: Compliance Monitoring Stats

Compliance Monitoring

Statistics

Q1 Q2 Q3 Q4 Total

Compliance Visits 790 1841 1537 1687 5855

Registrations 805 323 309 280 1717

Raids 24 34 15 29 102

Cases Opened 10 33 26 47 116Material Confiscated 12250 16777 26290 28845 84162Training - Law Enforcement 824 555 740 2119Training - Cinema Staff 25 13 17 55

6. FINANCIAL PERFOMANCE

6.1 STATEMENT OF FINANCIAL PERFORMANCE

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DESCRIPTION 2009(RANDS)

2008(RANDS)

REVENUE 45,292,472 32,239,648

GRANT SUBSIDY 33,519,000 19,206,000

REGULATION FEES 10,234,743 12,032,682

OTHER INCOME 1,538,729 1,000,966

EXPENDITURE (53,570,514) (34,399,272)

PERSONNEL EXPENDITURE (21,442,050) (17,319,177)

OTHER OPERATING EXPENDITURE (32,128,464) (17,080,095)

(DEFICIT)/ SURPLUS (8,278,033) (2,159,624)

6.2 TREND ANALYSIS – GRANT SUBSIDY, REGULATION FEES AND OTHER INCOME

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6.3 TREND ANALYSIS INCOME AND EXPENDITURE

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6.4 TREND ANALYSIS PERSONNEL AND OTHER OPERATING EXPENDITURE

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5.5 STATEMENT OF FINANCIAL POSITION

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DESCRIPTION 2009(RANDS)

2008(RANDS)

ASSETS 8,793,777 14,425,446

NON CURRENT ASSETS 5,842,221 6,738,243

CURRENT ASSETS 2,951,556 7,687,203

EQUITY AND LIABILITIES 8,793,777 14,425,470

RESERVES 136,120 8,414,153

NON CURRENT LIABILITY 199,056 440,956

CURRENT LIABILITIES 8,458,601 5,570,361

5.6 CASH FLOW STATEMENT

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DESCRIPTION 2009(RANDS)

2008(RANDS)

CASH RECEIPTS FROM CLIENTS AND GOVERNMENT

41,794,815 30,269,408

CASH PAID TO SUPPLIERS AND EMPLOYEES (43,212,417) (28,874,847)

NET CASH OUTFLOW FROM OPERATIONS (1,417,602) 1,394,561

CASH FLOW FROM INVESTING ACTIVITIES (2,524,304) (5,707,263)

FINANCE LEASE PAYMENTS (493,941) -

NET DECREASE IN CASH AND CASH EQUIVALENTS

(4,435,846) (4,312,702)

CASH EQUIVALENT AT THE BEGINNING OF THE YEAR

5,437,411 9,750,112

CASH AND CASH EQUIVALENTS AT END OF YEAR

1,001,565 5,437,411

5.7 REASONS FOR QUALIFICATION

1.Useful lives of assets with zero balance book value not re-valued.2.Inaccurate financial reporting of Finance lease3.Irregular expenditure4.Inaccurate Calculations on the Cash flow

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5.8 KEY ACTIONS BEING IMPLEMENTED

1.Management Action Plan developed to implement recommendations of both external and internal audits.2.Committee established to oversee implementation of the recommendations, convened by COO and reports to Audit Committee and Exco on a regular basis.3.Strengthen capacity of the Procurement, Finance and HR units (staffing and skills)4.Policies revised and new ones developed where gaps exist5.Development and Implementation of systems to track non – compliance with procurement and finance processes on a regular basis6.Review of asset management processes and asset register7.Improve staff awareness on internal policies, procedures and applicable legislation

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THANK YOU