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ANNUAL REPORT 2017/18

ANNUAL REPORT

FILM AND PUBLICATION BOARD


SECTION 1: GENERAL INFORMATION 2 PublicEntity’sGeneralInformation 4 ListofAbbreviations 5

SECTION 2: PERFORMANCE INFORMATION 6 StatementofResponsibilityregardingperformanceinformation 7

SECTION 3: STRATEGIC OVERVIEW 8 StrategicOverview 9 FPB’sOrganisationalEnvironment 12 Minister’sForeword 13 DeputyMinister’sForeword 16 MembersoftheCouncil 18 ExecutiveCommittee2017/2018 20 Chairperson’sForeword 22 ACEOForeword 25 OverviewofFPB’sPerformance 26

SECTION 4: GOVERNANCE 36 CorporateGovernanceReport 37

SECTION 5: HUMAN RESOURCE MANAGEMENT 42 HumanResourceManagement 43

SECTION 6: FINANCIAL INFORMATION 54 Index 55 ListofAbbreviations 56 AuditandRiskCommitteeReport 57 ReportoftheAuditor-GeneraltoParliamentontheFilmandPublicationBoard 60 AccountingAuthority’sResponsibilitiesandApproval 66 AccountingAuthority’sReport 67 StatementofFinancialPositionasat31March2018 69 StatementofFinancialPerformance 70 StatementofChangesinNetAssets 71 CashFlowStatement 72 StatementofComparisonofBudgetandActualAmounts 73 AccountingPolicies 74 NotestotheFinancialStatements 88

SECTION 7: PERFORMANCE INFORMATION REPORT 104 StrategicOutcome1 106 StrategicOutcome2 112 StrategicOutcome3 114 StrategicOutcome4 118 StrategicOutcome5 120


GENERAL INFORMATION


RegisteredName: FilmandPublicationBoard

ContactDetails:

HeadOffice: 420WitchHazelAvenue

EcoGlades2

EcoPark

Centurion

0157

Tel:0120031400

Fax:0126610074

CapeTown: 9LongStreet3rdfloorCnrRiebeekandLongstreet

CapeTown

Tel:0214183083

Fax:0214618126

Durban: 4SilverOaks

36SilvertonRoad

Durban

Tel:0312012158

Fax:0312617130

Email: [email protected]

Website: www.fpb.org.za

ExternalAuditors: Auditor-GeneralofSouthAfrica(GRAP)

InternalAuditors: AuditandRiskManagementServices

Bankers’Information: Absa

CouncilSecretary: MrTMokutu


AGSA Auditor-GeneralofSouthAfrica

AGM AnnualGeneralMeeting

APP AnnualPerformancePlan

ACEO ActingChiefExecutiveOfficer

AVE Advertisingvalueequivalent

CPU ChildProtectionUnit

CWU CommunicationsWorkersUnion

CSAM ChildSexualAbuseMaterial

DIFF DurbanInternationalFilmFestival

DTT DigitalTerrestrialTelevision

DoC DepartmentofCommunications

ECPAT EndChildProstitutionandTrafficking

ERMS ElectronicReportManagementSystem

FCS Familyviolence,ChildprotectionandSexualOffencesUnit

FPGs Films,PublicationsandGames

FPB FilmandPublicationBoard

GRAP GenerallyRecognisedAccountingPractice

HR HumanResource

INHOPE InternationalAssociationofInternetHotlines

IARC InternationalAppsRatingCoalition

ICT InformationandCommunicationsTechnology

KM KnowledgeManagement

KING III KingCodeofCorporateGovernance

LGBTQI+ Lesbian,Gay,Bisexual,TransgenderQueerandIntersex

MMA MediaMonitoringAfrica

MTEF Medium-TermExpenditureFramework

OCR OnlineContentRegulationSystem

ORP OnlineRegulationPolicy

PFMA PublicFinanceManagementAct

SADC SouthAfricanDevelopmentCommunity

SAPS SouthAfricanPoliceService

SARS SouthAfricanRevenueService

SCM SupplyChainManagement

SID SaferInternetDay

VAT ValueAddedTax

VOD VideoonDemand

S/VOD SubscriptionVideoonDemand


PERFORMANCE INFORMATION


Yoursfaithfully

_____________________________ _____________________________Acting Chief Executive Officer Council Chairperson MrSandileNene MrsThokoMpumlwana

Tothebestofmyknowledgeandbelief, Iconfirmthefollowing:

All information and amounts disclosed in the annualreport are consistent with the Annual FinancialStatementsauditedbytheAuditor-General.

Theannualreportiscomplete,accurateandisfreefromanyomissions.

The annual report has been prepared in accordancewith theguidelineson theannual reportas issuedbyNationalTreasury.

TheAnnualFinancialStatements(Section6)havebeenpreparedinaccordancewiththeGenerallyRecognisedAccounting Practice (GRAP) standards applicable tothepublicentity.

The Accounting Authority is responsible for thepresentation of the financial statements and for thejudgmentsmadeinthisinformation.

TheAccountingAuthorityisresponsibleforestablishingandimplementingasystemofinternalcontrolthathasbeen recognised to provide reasonable assuranceas to the integrity and reliability of the performanceinformation, the human resource information and theannualfinancialstatements.

The external auditors are engaged to express anindependentopinionontheAnnualFinancialStatements.

In our opinion, the annual report fairly reflects theoperations, the performance information, the humanresources information and the financial affairs of thepublicentityforthefinancialyearended31March2018.

FILM AND PUBLICATION BOARDFILM AND PUBLICATION BOARD

STRATEGIC OVERVIEW

ANNUAL REPORT 2017/18ANNUAL REPORT 2017/18

FPB Mandate

DerivedfromtheFilmsandPublicationsAct65of1996asamended in2004and2009, theFPB ismandatedto regulate: (1) the creation, production, possessionanddistributionofcertainpublicationsandcertainfilmsby means of classification; (2) the imposition of agerestrictionsandgivingconsumeradvice;and(3)makeexploitativeuseofchildreninpornographicpublications,films, or on the internet punishable. Therefore, themandateoftheFPBcanbesummarisedasfollows:(i) Regulatethecreation,production,possessionand

distributionoffilms,gamesandcertainpublicationsbywayofclassification,

(ii) Protect children from exposure to disturbing andharmfulmaterial and from premature exposure toadultmaterial,

(iii) Render the use of children in and exposure ofchildrentopornographyapunishableoffence.

Vision

“Aleadingandcrediblecontentregulator”.

Mission

“Ensure effective child protection, empowerment ofconsumersandacontributiontotheeconomicgrowthoftheindustrythroughregulationofmediacontent”.

Key priorities for the next five years

TheFPBCouncilendorsed the followingkeyprioritiesasstrategicprioritiestoinfluencetheapplicationofthestrategy;a) Technology-drivencontentclassification.b) Consumereducation(empoweradultsandprotect

children).c) Legislativereview(platformneutrallegislativeregime).d) Local and international partnerships (to ensure

betterregulationoftheweb).e) Research, compliance monitoring and monitoring

andevaluationtoinformfuturepriorities.f) Fundingandresourcemobilisation.g) Integrateinformalbusinessintoformalbusiness.

Principles central to FPB Regulations

a) Protectionofchildrenfromearlyexposuretoadultmaterialanduseinchildpornographyproductions–childpornographypunishablebylaw.

b) Provideconsumeradviceonmediacontent–‘WeInform,YouChoose’.

c) Provide designated areas for distribution of adultmaterial(pornography).

Values

The FPB embraces the Batho Pele (People First)principles of government as the core values of theorganisation that are to be observed at all times anddemonstratedbyallemployees inall itsengagementswithbothinternalandexternalstakeholders.Theabove


principlesarekeydeterminantsthataremeanttoenableeffectiveness. The strategy will promote the followingvalues:a) Accountabilityb) HumanDignityc) SocialJusticed) Integritye) Transparencyf) Professionalism.

Legislative and other mandates

Constitutional mandates

TheFPBdoesnothaveadirectconstitutionalmandateas the FPB is a classificationbody, a regulator and aquasi-judicial body, because it licenses, regulates,adjudicatesandissuessanctions.

However,theFPBcarriesoutitsworkwithdueregardfortherightscontainedintheConstitutionoftheRepublicof South Africa, which recognises and protects therights of every citizen, thereby ensuring an open anddemocraticsociety.

Of particular importance are sections 16, 28, 32 and36of theConstitutionof theRepublicofSouthAfricaandActNo108of1996,whichstipulatethateveryonehas the right to freedom of expression. This includesfreedomofthepressandothermedia,artisticcreativityand the freedom to receive or impart information orideas,therighttohaveaccesstoinformation,therighttohumandignityandtherighttofreedomofchoice.

Section16oftheConstitutioncontainslimitationstotherighttofreedomofspeech,namely:propagandaforwar;incitementofimminentviolence;oradvocacyofhatredthatisbasedonrace,ethnicity,genderorreligion,andthatconstitutesincitementtocauseharm.

These limitationscanbe found innumerouspiecesoflegislationissuedsince1994,notablyintheEqualityActand,morespecifically,theFilmsandPublicationsAct16of1996asamended.

Section28oftheConstitutionguaranteesthateverychildwillbeprotectedfromanydegradation,abuse,exposureto harmfulmaterials or exposure to child pornographyand that the child’s best interests are of paramountimportanceineverymatterconcerningthechild.

Moreover, theFPB’swork isaligned toOutcome14oftheNationalDevelopmentPlan,whichseekstoachievesocialcohesionandnationbuilding.Asasuboutcome,fosteringconstitutionalvaluesformspartofwhattheFPBdoesinschoolswithitskeymessagingregardingcybersafety,whichoutlinestherighttoprivacyandintegrity.

Legislative mandates

ItisimportanttolocatetheroleoftheFilmandPublicationBoard,asmandatedthroughtheFilmsandPublicationsAct of 1996 (as amended), in the context of a raft oflegislation that is relevant and related to thebusinessoftheFPB.ThissectionoutlinesthefollowingpiecesoflegislationthatformpartoftheFPB’smandate.

• ConstitutionoftheRepublicofSouthAfrica• ChildJusticeAct75of2008• CriminalLaw(SexualOffencesandRelatedMatters)

AmendmentAct32of2007(forexamplesections10 and 19 of the Criminal Law Act of 2008 andSection15oftheChildJusticeActof2008).

The Protection of Personal Information Act proclaimsthat the right to privacy includes a right to protectionagainsttheunlawfulcollection,retention,disseminationanduseofpersonalinformation(POPIAct4of2013).

ThisActhas implicationsforthe increasing incidencesof online abuse, such as the so-called revenge porn,thedistributionofexplicitimagesofpeoplewithouttheirconsentandthedistributionofcyber-bullyingcontent–allofwhichmanifestinmulti-layeredvictimisation.

Taking action against such abuse is within themandate of the FPB. The ElectronicCommunicationsAct of 2005 as amended regulates electronic media,particularly in the milieu of media convergence. ThePreventionandCombatingofTraffickinginPersonsAct,2013 pronounces on the recruitment and exploitationof children in sex trafficking and in the production ofpornography.

Inpursuing itsstrategicvision, theFPBwillbeguidedby these laws, while upholding the values of ourconstitution.

Asacrediblecontentclassifier,theFPBisresponsibleforexecutingactivitiesandinitiativesaimedatsuccessfullymonitoring the creation, production, distribution and


The FPB’s work seeks to achieve social cohesion and nation building. As a

sub-outcome, fostering constitutional values forms part of what the FPB

does in schools with its key messaging regarding cyber safety, which outlines

the right to privacy and integrity.

possession of legal adult entertainment, through theclassification of the content of films, publications andinteractivegames.Toensure theobjectivesof theActarecarriedoutsuccessfully,theFPBisresponsiblefordevelopingpolicies,proceduresandprocesses.

Initspursuitofkeyoutcomesandobjectives,theFPBis further tasked with the protection of children andthe empowerment of adults against exploitative andharmfulmaterial,anditthusplaysakeyleadershiproleinimplementinganti-childpornographycampaigns.Theorganisationoperates inanenvironmentthat is largelyinfluencedby rapid technological innovations inmediacommunicationchannelsandaproliferationofavarietyofmediaplatforms.

One of the FPB’s challenges is occasioned bynoncompliance and limitations on the technologyplatforms, for which the content is regulated or dueforregulation.Akeyprogrammeofthisstrategy isthelegislative reviewprocess,whichwillultimately lead toanenhancedlegislativeframeworkfortheorganisation.ThelegislativereviewwillfocusonempoweringtheFPBto institute penalties in the event of non-compliance.Further,itwillensurethatthelegislationandtechnologyare neutral in ensuring that the legislation remainsrelevant,despitechangesintechnology.

Policy mandates

Thereisnopolicymandate,astheFPBisanimplementingentityfortheDepartmentofCommunication(DoC).


ExecutiveAuthority

AppealsTribunal

Council

CEO

CouncilSecretary

SharedServicesChiefFinancialOfficer

ChiefOperatingOfficer

ChiefInformationOfficer

InternalAudit

IT

LegalandRegulatoryAffairs

SCM ResearchPolicyandAdvocacy

CommunicationsandPublicEducation

FinanceandAdminClientSupport

andAdmin

OperationsHumanResources


The Film and Publication Board (FPB) is a statutorybodyestablishedintermsoftheFilmsandPublicationsActof1996,asamended.TheBoardisentrustedwiththe regulation of production, creation and distributionof films, games and certain publications throughclassification. In termsof theAct, theFPB’smandateisfundamentallytoprotectchildren.Itisforthatreasonthatallmediaandentertainmentcontentisclassifiedfor

age-appropriateness. This, in turn, provides parents,caregivers and children in their care with sufficientknowledge to make informed viewing, gaming andreadingchoices.

At theheartof theFPB’smandate is the imperative tofosternational social cohesion in termsof theNationalDevelopmentPlan(NDP)2030,andtoalignthe

The children of any nation are its future. A country, a movement, a person that does not value its youth and children does not deserve

its future.


distributionofcontentacrossallplatformswiththenormsandstandardsofSouthAfricansociety.Thisdeliberatefocusonchildrenisaimedprimarilyatempoweringthemand ensuring that they are not prematurely exposedto adult experiences, violence and other sociallyinappropriatemediacontent.Most importantly, theActmakes the exposure of children to, and their use in,pornographyunlawfulandcriminallypunishable. In thiscase,thedefinitionofcommercialsexualexploitationofchildrenintheChildren’sActof2005,isinstructive.TheActdefinescommercialsexualexploitationofachildas“procurementof achild toperformsexual activities forfinancial or other reward, including acts of prostitutionor pornography, regardless of who receives such areward,ortraffickingofachildforuseinsexualactivities,pornography or prostitution”. It is noteworthy that anypersonwhoallowssuchcommercialsexualexploitationof a child on his or her property, or anywhere else, isequallyguiltyofthatcrime.

ThisreportprovidesanoverviewoftheactivitiesoftheFPBoverthe2017/2018financialyear,andreflectsthework undertaken by the FPB in dispatching its childprotectionandcontentclassificationmandate.

TheCounciloftheFPBwasfullyconstitutedduringthereportingperiod,andhascompliedwithallitsstatutoryobligations,which includedthetimeoussubmissionofquarterlyperformanceinformationandfinancialreportsto the Executive Authority and Parliament. The FPBhassupported theMinistry in itscommunityoutreachprogrammes,whichincludeDigitalTerrestrialTelevision(DTT)awarenessandrollout.

TheAppeal Tribunal is fully constituted andhasbeenabletoperformitsdutiesasmandatedbytheAct.Ihavebeeninformedthatinthereportingperiod,theTribunalheardonlyfourappealsagainstclassificationdecisionsissuedbytheFPB.Inthebiggerschemeofthings,thisshows that, as a society, we are maturing and havea better understanding of a regulatory body such asthe FPB. This is testament to the united efforts of allstakeholders,includinggovernment,thelegislatureandthebroadercivilsocietyinensuringthatwecollectivelyprotect our children, who represent the future of ourgreatdemocracy.

On6March2018,theNationalAssemblyfinallyadoptedtheFilmsandPublicationsAmendmentBill,whichhasnowbeenreferredtotheNationalCouncilofProvinces

forfurtherprocessing.Thisisahugemilestonethatmustbe celebrated, given how far the process has come.In addition, the Online Regulation Policy is receivingattention,andwillmostlikelybefinalisedoncetheBillisapprovedandsignedintolaw.

StatisticsSA2016GeneralHouseholdSurveyreportedthat only 3.5% of households across the country donothaveaccesstoeither landlinesorcellularphones.Mostof thosewere in theNorthernCape (9.7%)andtheEasternCape (6.9%).Thesame reportnotes that59.3% of households had at least one person withinternetaccess,andthat87%ofhouseholdsexclusivelyusedcellphones.

An internet studybyWorldWideWorx, conducted inJuly 2016, found that 21million South Africanswereusingtheinternet,andthatthemajoritywereaccessingtheinternetusingmobiledevices.Thishasmarkedanincrease of about 7% since 2012, thereby increasingthe amount of content distributed and consumedonline.Thenumberwasprojectedtoreach22.5millionbytheendof2017.

If anything, these developments place children at anevengreaterriskofbeingluredintodarkanddangerouspursuitsbyunscrupuloussexualpredators,whousetheinternetas theirhuntingground.Throughthe internet,anumberofchildrenareabductedforuse inthe illicitsex-trade industry which, unfortunately, takes placeacross borders. This, therefore, calls for parents andcaregivers to exerciseextra vigilanceandmonitor theonlineactivitiesoftheirchildrenandthoseintheircare.

Thisyearmarks thecentenarycelebrationof thebirthofourformerpresidentandstruggleicon,thefatherofour democratic nation,DrNelsonRolihlahlaMandela,aswellas thatofMamaNontsikeleloAlbertinaSisulu,one of the most dedicated heroines of our liberationstruggle.I,therefore,urgeeachmemberofoursociety,regardlessofcolour,creed,politicalorreligiouspursuit,todedicate time todoingactsof kindnessaspartofcelebratingthelegacyofthesegiants.

Iamsatisfiedthat,despitethechallengesfacedbytheorganisationduring the reportingperiod (including thedeparture of the entire ExecutiveManagement team),the entity was able to focus on its core business,whichisevidentinitsachievementof80%ofitsannualperformancemilestones.


Giventherecenttrendofallmediacontentbeingmainlytransmittedonline,theFPBneedstoinvestmoreinitsIT infrastructure to ensure that it continues to be aneffectiveregulator.InOctober2016,theDepartmentofTelecommunications and Postal Services, supportedby the Department of Communications, released aWhitePaperonNationalIntegratedICTPolicyforpubliccomment.Workinthisregardisstillongoing.

In November 2017, the Department of Science andTechnology released a White Paper on Science,Technology and Innovation. The White Paper setsthe long-term policy direction for the South Africangovernment to ensure a growing role for science,technologyand innovation (STI) inamoreprosperousandinclusivesociety.ItfocusesonusingSTItoaccelerateinclusive economic growth,make the economymorecompetitiveandimprovepeople’severydaylives.ItaimstohelpSouthAfricabenefitfromglobaldevelopmentssuch as rapid technological advancements andgeopolitical and demographic shifts. Finally, theElectronic Communications Act of 2005 is currentlyunderreview,withtheobjectiveofstrengtheningnationalpolicy and legislation regulating ICT in general andaccesstoinformationandcommunicationinparticular.Theabovepiecesof legislationandpolicydocumentsarebut someof the key initiatives undertakenbyourgovernment to ensure that developments in, and theuse of, information and communications technology,with all its promised benefits, are properly regulatedandgearedfortheadvancementofourcountry’ssocio-economicdevelopmentalpriorities.

TheDepartmentwillcontinuetoavailresourceswithinitsmeanstoensurethattheFPB’spublicservicefunctioniseffectivelyperformed.

Letmeconcludebyquotingoneoftheleadingstalwartsinthefightfordemocracyinourcountry,OliverReginaldTambo,whenhesaidofchildren:“Thechildrenofanynationareitsfuture.Acountry,amovement,apersonthat does not value its youth and children does notdeserveitsfuture.”

IwouldliketothanktheChairpersonandthemembersof the Council for their commitment, resilience,stewardship and leadership in ensuring that the FPBcontinues to fulfil itsmandate. Letme thank the staffandmanagementforhavingkepttheireyesontheball,thusensuringthattheFPB’smandateisdeliveredinachallengingenvironment.

Finally, let me thank the Portfolio Committee onCommunications for its continued support andpersistence inensuringcompliancewiththeprinciplesofgoodgovernancenotonlybytheFPB,butbyallDoCentitiesatalltimes.OnourpartwiththeDeputyMinister,we will continue to hold the Council accountableto its statutory obligations, and for sound financialmanagement.

Thankyou

_____________________________Ms Nomvula Mokonyane (MP) MinisterofCommunications


TheFilmandPublicationBoard(FPB)isastatutorybodyestablishedintermsoftheFilmsandPublicationsAct,Act65of1996,asamended,toregulatemediacontentand protect children through classification of films,games and certain publications. Such classificationserves as consumer advice to parents, caregiversandchildren in their care, toempower them tomakeinformedviewing,gamingandreadingchoices.

The FPB’s mandate falls within Outcome 14 ofthe NDP 2030, which talks to nation building andsocial cohesion. Itsmandate is derived directly from

Section 28 of the South African Constitution, whichprovides, among others, that “every child has aright to be protected from maltreatment, neglect,abuse or degradation, as well as exploitative labourpractices”. Section 28 provides that children shouldnotbe requiredorpermitted toperformwork that isinappropriatefortheirageorplacestheirwellbeingatrisk.Finally,itstatesthatthechild’sbestinterestsareparamount in all matters affecting them [Subsection(2)]. This, therefore, callsonall of usasa society tovigilantly protect the interests of our most preciousassets,ourchildren.

Let us get to work and safeguard a brighter future for our children and young people. We owe them that much.


TheNDP’svision is thatby2030,SouthAfricanswillhaveuniversalearlychildhoodeducation,high-qualityschooling, furthereducationandtraining.Outcome1of theNDPemphasisesbasiceducation,comprisingEarly Childhood Development (ECD) and schooleducation as the bedrock of the education system.The NDP advocates training and education of thehighestquality,characterisedbysignificantlyimprovedlearning outcomes, as education is instrumental inensuringthatallindividualshaveequalaccesstolife’sopportunities.

Therefore,allofus,blackorwhite,youngoroldandregardlessofourideologicalandpoliticalpreferenceshaveanobligationtouniteoureffortsinensuringthatwe afford our children themost effective protection.In linewith theNDP,wehaveanobligation to infuseeducationinthedailylivesofourchildren.It isinthiscontextthattheFPBhasanextensivepublicoutreach,education and awareness programme spanning thewhole country. We will be failing as a democracy ifweneglectECDandeducation ingeneral.However,in pursuance of this noble developmental goal, ourgovernmenthasalreadyallocatedsignificantresourcesto ECD and education. This ismanifest in generousfunding for theprimaryeducationphase throughno-feeschoolsandtheextendedschoolfeedingschemeprogramme.TheFPBis,thus,avitalcoginthenationalmovementtoensurethatourchildrenareprotectedasbestwecan.When armed with knowledge, our children areempowered tomakewisedecisions,which in certaininstances,canbelife-saving.IfindthefollowingNigerianproverb very useful in illustrating this point: “Home iswherelifeisfoundinallitsfullness”.Inshort,thismeansthat, since the FPB cannot be in every corner of ourcountry, or indeed in every household, parents andcaregivers bear the primary responsibility of ensuringthat children are exposed to good teachings. This isfurther illustrated by the following African proverb: “Achildisaparableofthelifeofaparent”.

Therefore, in line with the imperatives of our much-reveredConstitution, I imploreallofyou, fellowSouthAfricans,toensurethatthemostbasiceducationandthe teaching of values that should take place in ourhomes, do indeed take place. Let us empower ourchildrentobecomemature,responsibleandproductiveadultcitizensasenvisagedbytheNDP,Vision2030.

Ourchildrenliveinaworldlitteredwithallkindsofevilcreatures,includingthosewhosesolemissionistoinflictpain and the cruellest forms of violence on innocentchildren.Itisourcollectivedutyasanation,therefore,tosay“notinmyname”.

Iampleasedtonotethat inthereportingperiod,theFPB has achieved no less than 80% of its annualtargets, but was able to spend just over 93% of itsallocatedbudget.

Partnershipsremaincriticaltothegovernmentandallpublicentitiesdeliveringontheirrespectivemandates.Let us, therefore, form lasting and meaningfulpartnerships in assisting the FPB to achieve itsmandate. I would like to call upon scholars andresearchinstitutionstoallocatemoreresourcestothestudyoftheillsafflictingthemostvulnerablemembersofoursociety,aswellasexplorepossiblesolutions.

As the Ministry, we will continue to support andguidetheFPBinattainingitsgoalsandensuringthatits reach isbroadened toeven themost rural ofourcommunities. Parents, educators, civil society, thereligioussectorandindustryallhaveanimportantroletoplayinthisregard.

Letusgettoworkandsafeguardabrighterfutureforourchildrenandyoungpeople.Weowethemthatmuch.

IwouldliketothanktheChairpersonandthemembersof the Council for their commitment and focus inproviding leadership to this important entity, thusensuring that our people receive the services theyexpect fromacaringstatesuchasours. Iwould liketo thank all the FPB staff and all stakeholders whocontributetotheworkoftheFPB.

Here’s to another fruitful and service-oriented year,underpinnedbytheprinciplesofBathoPele.

Thankyou

_____________________________Ms Pinky Kekana (MP) DeputyMinisterofCommunications


Ms Thoko Mpumlwana CouncilChairperson

Ms Sarah Mangena DeputyCouncilChairperson

Ms Yoliswa Makhasi CouncilMember

Adv Anderson Mudunungu CouncilMember


Ms Nobuntu Dubazana CouncilMember

Mr Matone Ditlhake CouncilMember

Adv Lufuno Nevondwe CouncilMember

Ms Nomvuyo Mhlakaza CouncilMember

Dr Natalie Skeepers CouncilMember


Mr Sandile Nene ActingChiefExecutiveOfficer

Mr Vuledzani Matidza ActingChiefFinancialOfficer

Mr Khensani Khoza ActingChiefInformationOfficer

Mr Tlale Mokutu CouncilSecretary

Ms Abongile Mashele ActingChiefOperationsOfficer


Introduction

Three years ago, the FPB embarked on a processto review and propose amendments to its foundinglegislation. TheFilmsandPublicationsAmendmentBillwasadoptedbytheNationalAssemblyinMarch2018,andhassincebeen referred to theNationalCouncilofProvinces (NCOP) for furtherprocessing.At thisstage,wearewaitingfortheNCOPprocess,andwehopethattheBill will be finalised during the 2018/2019 financial

year.Thenew,amendedlegislationwilladdmuch-desiredimpetus to our focus on regulating content distributedthroughtheinternetandotheronlineplatforms.

MobilephoneshavebecomeapopularandprevalentformofvoiceanddatacommunicationsamongmanysectorsofthepopulationinSouthAfrica,especiallyforuseininformalbusiness.Cellphonesare,infact,takingtheplaceofcomputer internetaccessand,as recentreportsshow,morethan75%ofSouthAfricansownor

Our mandate entails classification, provision of consumer advice and compliance monitoring, and through these, we seek to

provide full information to parents and caregivers, so that they can adequately protect children in their care.


haveaccesstocellphonesandothermobiledevices.StatisticsrevealthatSouthAfricahasoneofthelargesttelecommunicationsmarketsontheAfricancontinent.A2013studybyImagi-social,anonlineresearchplatform,showsthatover60%ofcellphoneownersregularlyusecellphonestoaccesstheinternet,andthatover75%ofinformalbusinessesusesocialmedia.TheyestimatethattherearemoreactiveusersofthemobileinternetinSouthAfricathantherearetraditionalinternetusers.Thestudy ranked South Africa as the fifth-highestmobiledata-usingmarket,behindRussiainthefirstspot,andfollowedbytheUSAintheseventh.

According to a survey by parenting site, Netmums.com, the average age at which children start to usetheinternetisthree,andmostchildrenspendtwiceaslong online as their parents think they do. The studyhas found that many children view self-harm, violentpornography, animal cruelty and eating disorderwebsites and that more than a quarter admit theypretendtobeoldertoaccesscertainsites.Thestudyhas found thatmany children are spending somuchtimeonlinethatoneinthreenowstruggleswithofflineactivitiesthatrequireconcentration,suchasreadingabook.Althoughtwothirdsofthechildrensurveyedsaidtheyhadhadanegativeexperienceonline,only22%ofparentsrealisedthis.Thisprovesthatparentsarerarelyawareoftheirchildren’sinternetactivity.

Itisaknownfactinoursocietythatchildrenareregularlyexposedtoinappropriateonlinebehavioursuchascyber-bullying, child abuse images, identity theft and cyber-racism. There are sexual predators who lure childrenonlineusing falsepersonalprofiles. Thisoften leads tochildren being abducted and exposed to all sorts ofnefarious activities, including slavery, pornography andprostitution, if not callously killed. Inadequate parentalsupervision therefore, contributes to the vulnerability ofchildren.

TheFPBisastrategicpartnerinthebattletominimisetheexposureofchildrentoharmfulmediaandentertainmentcontent.Forthatweneedthecooperationofallsectorsof our society, including parents, educators, and lawenforcement agencies. It should be noted that, giventhe enormity of the task at hand, FPB simply doesnot have resources to go it alone. We cannot reacheverycornerofourvastcountry,orindeedbeineveryhousehold. It is in this context that we call on thelegislature to strengthen the punishment regime for

crimesperpetratedagainstchildren. In thesamevein,we call on industry and internet service providers toimplementfiltersandblockingmechanismstopreventchildrenfrombeingexposedtoinappropriatecontent.

As the FPB, we are fully aware of the need for, andimportance of, partnerships in implementing ourmandate. We, therefore, continue to reach out to allrelevant entitieswho share our objectives.We engagerobustly with government departments to extend ourreachandmakeameaningfulimpactinsociety.

We are called upon to strike a balance betweenconflictingconstitutionalrights,whichincludetherightsofchildrencontainedinSection28oftheConstitutionontheonehand,againstthebroadersocio-economic,commercialandartisticrightsontheother.

Former State President, Dr Nelson Mandela, at thelaunchoftheNelsonMandelaChildren’sFund,inMay1995, aptly summed up the need for cooperation inprotectingchildrenandyoungpersons,whenhesaid:“Wecomefromapastinwhichthelivesofourchildrenwere assaulted and devastated in countless ways.It would be no exaggeration to speak of a nationalabuse of a generation by a society which it shouldhavebeenable to trust.”Heproceeded to state: “AswesetaboutbuildinganewSouthAfrica,oneofourhighestprioritiesmustthereforebeourchildren.Thisisessentiallyanationaltask.Theprimaryresponsibilityisthatofgovernment, institutionsandorganisedsectorsofcivilsociety.Butatthesametime,weareallofus,asindividuals,calledupontogivedirectionandimpetustothechangesthatmustcome.”

Wewillalldowelltoheedthestatesman’swisecounselinourendeavourtobuildabetter,saferandmoresecuresocietywhereourchildrenhaveanopportunitytoreachtheirfullpotential.

Political mandate and reporting

The FPB reports to theMinister of CommunicationsasitsExecutiveAuthority,aswellasParliamentastheultimate oversight body. In the reporting period, wesharedplatformswiththeMinistryandDepartmentofCommunications (DoC) in joint community outreach,awarenessandImbizocampaignsacrossthecountry.These involved all other entities reporting to theMinister.


Key activities for 2017/2018

Phase one of the Online Content Regulation systemwasfullyimplementedandtherolloutofphasetwohadcommenced.Throughthiswehadcreatedaseamlessand quicker process of distributor registration andcontentclassificationsubmissions.

We have managed to register and license no fewerthan six online content distributors, twomore than intheprevious financial year. Engagements are ongoingtobringevenmoredistributorsonboard.

FPBhasremainedtheonlymemberoftheInternationalAssociation of Internet Hotlines (INHOPE) on thecontinent.Throughthismembership,weareabletogetundesirable,inappropriateandoffensiveonlinecontenttakendown.FPBhadaseatontheINHOPEBoarduntiltheendofAugust2017.

Inthereportingperiod,welaunchedapublicconsultationprocessonthereviseddrafttariffs,whichwillformthebasisofournewfundingmodel.

Theone-yearcertificatecourseinclassificationlaunchedinconjunctionwiththeUniversityofSouthAfrica(UNISA)hasreceivedsatisfactorysupport,withourcounterpartsinKenyashowinganinterestinenrollingtheirclassifiers.

Asstatedabove,theAmendmentBillhasbeenadoptedby the National Assembly and is currently before theNCOP.TheCouncilisstillfullyconstitutedandcontinuestodispatchitsmandateinaccordancewiththedictatesoftheAct.

The Appeal Tribunal is fully constituted and this year,theAppealTribunalreceivedandadjudicatedoverfourappeals,aslightincreaseontheaverageoftwoappealsperannumoverthelasttwoyears.

The only blight on the organisation for the reportingperiod is the fact that we lost our entire ExecutiveManagementteamduringthe2017/2018financialyear.

However, due to the resilience of staff and thestewardshipofCouncil, I amhappy to report thatweachievedalmost90%ofouroverallannualtargets.

Conclusion

Inconclusion,Iwouldliketostatethateventhoughwehave hadmore than oneMinister during the financialyear, our accountability instruments remained robust,andtherewasnointerruptionofservicedelivery.Onthecontrary,thetransition intheDepartmentwassmoothandCouncil issatisfiedwiththelevelofsupportithascontinuedtoreceive.

Weremainfocusedonthetaskathandandwebelievewestillhavealottocontributeinshapingthenecessarysocietal awareness about the benefits and potentialdangersof the internetandaccesstoonlineservices.Finally,wewill complete the tariff reviewprocess andensurethatallstakeholdersaretakenonboardaswebuildabettersocietyunderpinnedbythekeyprinciplesincludedinboththeConstitutionandtheNDP.

Atthisstage,IwouldliketothankCouncil,theMinister,AppealTribunal,staffandmanagementoftheFPB,forongoingdedicationandsupportforalltheinitiativesputinplacetofullyachieveourmandate.

_____________________________Mrs NF Thoko Mpumlwana CouncilChairperson


The level of public interest and conversation thatthe ‘Inxeba’ appeal garnered has shown to SouthAfricansthattheprocessofclassificationisacomplexsystem that has to reflect broad societal norms andvalues. The FPBmust contribute to social cohesionin South Africa without unreasonably or unjustifiablylimitingotherrights.Classification includesexaminingcontent against the purpose, guiding principles andclassifiable elements of the classification guideline,yet proportionally balancing rights enshrined in theConstitution,otherActsandlegalprescripts.

The‘Inxeba’(TheWound)appealprovedaninterestingcase study for the FPB in its efforts to contribute tocohesion in contemporary society. The appeal wasa rareoccurrence in that itwassubmittednotby thedistributor,butbythepublic.Our lastdeliberationsonpublic appealswere in 2012, on the painting entitledTheSpear,andin2014,inthematterofCONDEFSAonthewebsitewww.ulwaluko.co.za.

The 16 LS classification decision given by the FPBfor ‘Inxeba’ – The Wound was overturned by the

Media engagement has improved considerably and we have created dialogue on our social media platforms through numerous

campaigns.


Appeal Tribunal, which assigned an X18 restrictivedistribution category. The Appeal Tribunal decisionwas opposed by the distributor in the NorthernGautengHighCourt.Prior to theset-downdate fortheheadsof argument, all parties settled for an18age-restriction to allow for the film to be screenedand sold in registered premises. Judgment wasmade by Judge Raulinga, overturning the decisionof the Appeal Tribunal. The judge overturned thedecision basedon the contravention by theAppealTribunal of the key principles of the Protection ofAdministrative JusticeAct. The judge ruled that theprocess undertaken by the Tribunal to be null andvoid and the original decision by the FPBof 16 LSnowstands. The judgment, and theentireprocess,hasprovidedmanylessonsfortheFPB.Ithasmadeit apparent that themandate to classify in linewithsocietal valuesandnorms is a complexmatter in adiversesocietysuchasours.

The Spear, ‘Ulwaluko’ and ‘Inxeba’ were significantchallengestotheFPBinitseffortstocreatesocialcohesioninacountrythatisstilldeeplydividedacrossracial,culturalandsocio-economicclassdivisions.Furthermore,theseworkscreateadebateontheproportionalbalancingofrightsagainstthepurposeoftheclassificationguidelinesthatmustbalanceclassificationofcontentwiththerightstofreedomofexpression,accesstoinformation,equalityandhumandignity.

Classification Guidelines Review

It is for this reason that classification guidelines arecontinuously reviewed to assess their alignment tosocietalnormsandstandards.Thecurrentclassificationguidelines were last reviewed in 2012, with partialadditions inOctober 2014.Historically, the guidelineswere reviewed every two years, but the FPBCouncilchangedthistoeveryfiveyearsasitfeltthattwoyearsistooshortaperiodtoenabletheorganisationtotestandassessshiftsinsocietalnormsandstandards.

Thereviewoftheguidelinesstartedinthe2017/2018financial year with a discussion paper launched in

Gauteng,followedbypublicconsultationsinallnineprovinces.ThediscussionpaperlaunchedinFebruaryprovided an opportunity for the FPB to illustrateresearchthathasbeenconductedonthe impactofmediamaterialonchildren,publicperceptionsurveys(convergence surveys), aswell as classification andfilmdistributiontrends.Thediscussiondocumenthasraised somepertinent questions,whichweused tocanvass public input. These have ranged from thesuitabilityoftheFPBageratingandthepsychologicaldevelopmentofchildren,tohowweshouldconsiderculturalrightsinfuture.Stakeholderinputswillinformthe revision,afterwhichpublicconsultationswill beconductedonthereviseddocument.

Appointment of New Classifiers

Classifiers are appointed on four-year independentcontractsbytheFPBCouncil.ThepublicisinvitedtonominatecandidatestobeClassifiers.TheymustbeSouthAfricancitizensasdeterminedinChapter24A(2)(b) of theFilmsandPublicationsAct andcomplywithanyotherrequirementsoftheAct.

Followingan intensive recruitment exercise,Councilappointedanewpoolof38classifiersinOctober2017.ThisdiverseandrepresentativeteamofSouthAfricanprofessionals – comprising13 classifiers (appointedfor a second term), 15 new classifiers, five gamersand five personswith disability. Theywill undertakethe content classification on behalf of the FPB forthe next four years. The group is representative inrace,genderandage,andhailsfromawiderangeofacademicandprofessionalworkbackgrounds.

Classifiers should have a broad understanding ofSouth African Constitutional principles, knowledgeof FPB legislation, the classification guidelines, theFilmsandPublicationsRegulations,andtheabilitytointerpretandapplylegislation.Inaddition,theyshouldhave excellent report writing, critical thinking andanalyticalskills,andstrongpersonalandprofessionalintegrityandworkethic.Classifiersmusthaveagoodunderstanding of visual and digital media and newmediatechnologies.

Classification Trends

Forthefinancialyear2017/2018,FPBclassifiedatotalof1886eligiblesubmissions,whichamountedto2726


hours (163566mins) of feature content equalling341working days, excluding value addedmaterials (VAM)andtrailers.Ofthetotalfeatureshours,only378hourswerecontentsuitableforfamilyviewing(A-PG)whilst1620hourswerefor13-16years.Interestingisthat247hoursoffeaturecontentsuppliedto,andconsumedby, our society were classified as adult viewing (18)- 131 hours (16 working days) more than what is

supplied to themarket for family viewing.Of concernhas been the escalating violent content, followed bystrong language, encountered by FPB classificationcommittees. Considering the high levels of violentcrimesinSouthAfrica,thereisaneedforustotryandunderstandwhetherearlyexposuretocertaintypesofcontent contributes in anyway to the challenges thecountrycurrentlyfaces.

Male Female

Belowgraphicillustrationsindicatethebreakdownofthepoolofclassifiersintermsofgender,ageandrace.

Genderbreakdown

Agebreakdown

18

20

20-30 31-40 41-50 61-7051-60 71-80

7 7

6

15

21

16

14

12

10

8

6

4

2

0

25

20

15

10

5

0


The classification process takes into account thescourge of child abuse in South Africa and therevictimisationofsexualabusesurvivorswhenassigningconsumer advice for sexual violence (SV). This goesbeyond child abuse to gender-based violence, abuseandvictimisationbasedonsexualorientation.

In the year under review, we saw an emergence ofcontent that contained elements of gender-basedviolence and violence against children. The mostchallengingclassificationthatFPBhadtodealwiththathadtheseelementsarticulatedabovewastheAfrikaansshortfilmtitled‘Langsaan’featuredattheSilwerskermFees.Thefilmwasoriginallysubmittedaspartofagroupoffilmsforexhibitioninafilmfestival.Uponexaminationofthesynopsisofthefilm,thecommitteereferreditforfullclassification.Thefilm‘Langsaan’highlightshiddendangersfacedbytheyoutharoundsexualexploitation.Itisacompellingdramathatbringstolifethestoryofagirlwhobecomesavictimofsexualexploitationbythoseshemosttrusts–herclosestfamilylivingnextdoor.Thefilmfeaturedachildactressinasceneofsexualconductsimulatedand implied through the use of breakaway camera

scenes. As it was a short film, it portrayed a younggirl losingher innocence,theperpetratorneverbeingbrought tobookand familymembersneverknowingaboutthesexualexploitation.Duetothethinlinebetweensexualexploitationofminorsclassifiedaschildpornography,theFPBhadtosubjecttheexaminationofthisfilmtotwodifferentclassificationcommittees. The results examined the title and wereconflicted. One committee felt there was a bona fidestoryline that raised awareness of just how close thedangerswere,whilsttheothercontemplatedthedefinitionofchildpornographyinrefusingclassificationofthefilmintheabsenceofaconcretepro-socialoutcome.Thefinaldecisionassignedto‘Langsaan’bytheFPBwas18SV.

Appeals Received

In theyearunder review, theAppealTribunal receivedfourappeals fromthe totalnumberof titlessubmittedfor classification. The Tribunal upheld only one ofthese classification decisions. Appeal rulings serveasan important tool for theFPBclassifiers to identifyshortcomingsintheinterpretationandapplicationoftheFPBGuidelines.

CT D H IAT L N P S SV V B PPS

%oftotal 0.21 12.78 7.07 1.21 36.19 4.28 5.28 11.85 1.93 50.11 0.43 0.71

Nooftotal 3 179 99 17 507 60 74 166 27 702 6 10

No.oftitles

2017/2018consumeradvice:generalmaterial

Classifiableelements

800

700

600

500

400

300

200

100

03

179

99

17

507

60 79

166

27

702

6 10


Registrations and renewals

A total of 573 new registrations was processedduring the 2017/2018 financial year, a 21.9%increase over 2016/2017. There was a decline of17% of new registrations between 2015/2016 and2016/217. Gauteng had themost registrations (211),followed by KwaZulu-Natal (161) and Western Cape(106).ThelowestnumberofregistrationsnationallywasfromNorthWest(six).

There were three international registrations forthe financial year, a 16.5% decline compared to2015/2016 to 2016/2017, due to distributors closingandmarketshift.However,2363annualrenewalswereprocessedduring the2017/2018financialyear,whichisa25%increasecomparedtothe2016/2017financialyear.Gautenghadthehighestnumberofrenewals(1079), followed by KwaZulu-Natal (386) and WesternCape(373)renewals.Therewasonlyoneinternationalrenewal in 2017/2018. Some 465 applications wererejectedfornon-complianceandnolongerconductingbusiness. A strategy has beenput in place to refunddistributors who no longer require a licence and tofollowuponthosewhorequiresupportingdocuments.

Tariff Review

TheFPBhasreviewedandrevisedthepricingmodelofitscurrentregulationfeestructureandhasdevelopedan

appropriateandjustifiablepricingmodelforallplatformsand distributor sizes to ensure that the organisationremainsviable.Therevisedtariffsstructurewillestablishapenaltysysteminlinewithinternationalstandards.

Publicandstakeholderconsultationswereheldtosolicitinputs to the draft tariff structure. Inputs have beenincorporated into the draft tariff document,whichwillneedtheMinister’sapprovalbeforebeinggazetted.

Online Content Regulation

During the year, the FPB licensed five online contentdistributors thatwill formpart of the co-regulating, toensurecompliancebyonlinestreamingservicestotheFPB Classification Guidelines. A distributor registerswiththeFPBasadistributorofthecontentintermsofSection18oftheFilmsandPublicationsAct.AmutualexecutionoftheagreementbetweentheFPBandtheonline distributor constitutes such registration andauthorisesthedistributortoactasalicenseddistributorof content.Adistributor’s licence is renewedannuallybythesigningofanonlinedistributionagreementandpayment of the annual licence fee determinedby theMinister.

Workshopswereconductedwithonlinedistributorsaspertheco-regulationagreementand25classifiersandcontentaggregatorsweretrainedontheapplicationoftheclassificationguidelines.

Movie Title Applicant Application Date

FPB Classification Committee Decision

Appeal Tribunal Decision

High Court Ruling

DespicableMe3

UnitedInternationalPictures(UIP)

14June2017 7-9PG PGV

Jumanji:WelcometotheJungle

SterKinekorEntertainment

7December2017

13LV 13LV

Inxeba–TheWound

MenandBoyFoundationHouseofTraditionalLeaders

6March2018 16LS X18LNPSV 16LS

GringoEmpireEntertainment

12March2018 18DLSV 16DLSV


The FPB has gone a long way in developing anautomatedsystemthatwilleaseFPBprocesseswhenservicing industry and will better service the onlinecontentdistributionmarket.TheFPBhassuccessfullylaunched a first-of-its-kind Online Content Regulation(OCR)systeminAfrica.ThissystemwillassisttheFPBtomeetthedemandsofan industryundergoingrapidtransformation towards online-driven platforms. TheOCR allows distributors to submit film content onlinefrom anywhere around the globe for classification bythe FPB. It is envisaged that the systemwill improveturnaround times and service delivery to the FPB’sclientsandstakeholders.

In addition, the FPB has set its sights on improvingorganisationalefficienciesandintendstobeincreasinglytech-savvy,usingtechnologymorebroadlybycreatingmobile platforms to reach out to stakeholders andeffectively reducing the cost of doing business whilstdeliveringonitsmandate.

Labelling Strategy

AlabellingstrategyhasbeendevelopedtosafeguardtheFPBlogoanditsusebydistributorsaftertheclassificationof content. The strategywill be incorporated into theOCRsystemaspartofphasetwoofitsdevelopment.

ThetrademarkpolicydefinesandidentifiesthepatentedFPB trademarks (FPB classification triangle and theslogan‘WeInform.YouChoose’),confirmsownershipofthesetrademarks.ThepolicyfurtherregulatestherightusebyauthorisedusersanddefinesprohibitedactionsandusesbyauthorisedusersoftheFPBtrademarksbyjuristicandnaturalpersons.

Child Protection

The FPB has a child protection unit that consists oftwochildprotectionofficersandtwoonlinecompliancemonitors. The FPB is amember of INHOPE,which isaninternationalnetworkofhotlinesoperatorsthatdealswith child pornography content distributed online. Thenetworkiscommittedtoensuringthatchildpornographyiseradicatedfromtheinternet.

ThechildprotectionteamoftheFPBworksverycloselywith law enforcement agencies. Their partnershipincludes analysis of suspected child pornographyimages for criminal cases under investigation by the

SouthAfricanPoliceService (SAPS).Membersof theteamacquiredtheircontentanalysisskillsandhavebeencertifiedandaccreditedbyINHOPEasinternetcontentanalysts.Thechildprotectionteammanagestheanti-child pornography reporting tools: the toll-free hotlineand the child pornography website. These reportingtoolsallowmembersofthepublicandstakeholderstoreport child pornographywebsites discovered on theinternet.

Inthe2017/18financialyear,456casesofsuspectedchild pornography were reported through the FPBhotline website. Eighteen of these cases had to bereferredtootherINHOPE-affiliatedhotlinesforanalysis.Sixteen of the cases were subjected to analysis forchild pornography, a total of 116 960 images andvideoswereanalysedandexpertanalysisreportsweregeneratedtoformpartof theevidenceforthecourts.AsaresultoftheexpertanalysisreportsissuedbytheFPB, three cases were successfully prosecuted andthree convictions issued. Two prominent cases wereinGauteng at the BoksburgMagistrate Court, wherethe perpetrator was given 32 life sentences and anadditional 170 years’ imprisonment; and another intheWestern Cape, Bellville, where a paedophile wassentenced to three lifesentenceandanadditional57years’imprisonment.

Compliance Monitoring

The FPB online monitoring sub-unit continues toensure compliance with the Films and PublicationsAct, conducting inspections of online distributorsand monitoring compliance. Distributor complianceis monitored for registration, submission of materialfor classification and display of classification detailson material displayed for consumption. A total of3886online inspectionswasconducted,whichweremade up of 1 861 online inspections, 752 analysisverifications, 456 FPB hotline reports and 817 socialmediainspections.

The physical compliance monitoring team conductsinspections of more traditional distribution platformssuch as DVD shops, cinemas and internet serviceproviders (ISPs). A total of 11 183 inspections wasconducted, which included 8 118 inspections onregistereddistributors (3430unregistereddistributorswere identified), 1 386 ISPs and 2 115 publications.Some116noticeswere issuedfornon-complianceof


unclassifiedmaterial,unregistereddistributorsandnon-renewaloflicences.TheFPBconducted93raidswithlaw enforcement agencies, which resulted in 41 559discsbeing confiscatedand60casesbeingopened.Atotalof113686discswithastreetvalueofR11368600 were destroyed. Our regional coordinators wereasked to testify in court cases as a result of the101analysisreportstheyhadwritten.

Research Focus Groups – Awareness on FPB Classification Guidelines

Theresearchunit’sthree-yearfocusgroupprogrammeclosedattheendofthe2017/2018financialyear,with186 learners,educatorsandparents from15schoolsin four provinces (Eastern Cape, Gauteng, KwaZulu-Natal and North West) having participated. Issuesdiscussedindepthincludedchallengesassociatedwithsmartphonesinschoolandhomelives.

Objectives of the programme

The programme set out to ensure continuity in therelationships between the FPB and participatingschools,once-offvisitstoschoolshavingbeendeemed

inadequate toensure that theFPB’smandateand itscyber-safetymessagingwouldhavethedesiredeffects.

Focusgroupdiscussionssupplementedthedatagainedthroughourquantitativemethods,givingusinsightintoattitudes to, and reasons and motivations for onlinebehaviour,andtheextentofknowledgeofgoodcyber-citizenshipforallthreestakeholdercategories.

Summary of key findings

Understanding of the FPB’s mandate was advancedamong theselectedcyber-champions.Educatorsandlearnersreported improvedsensitivity toonlineabuse,withsomereportingmarkedbehaviouralchanges.

Life orientation educators and school principals areenthusiasticaboutongoingengagementwiththeFPB,astheyfeelcyber-safetyeducationiscritical.Weintendtousethefindingsfromthesefocusgroupstolobbyforintegrationofgreatermedialiteracyinthelifeorientationcurriculum,enabling learners tobe responsiblemediaconsumers.WewillusetheinformationfromthefocusgroupstobetterinformthecontentandstructureoftheFPBoutreachandawarenesscampaigns.

Prior knowledge of the FPB and its mandate

WastodaythefirsttimeyoulearntabouttheFPB?

%PROPORTIONALTO

N=PERPROVINCE

EasternCape Gauteng KZN NorthWest

Yes No

62%

38%

49% 51%

25%

75%

38%

62%

100

90

80

70

60

50

40

30

20

10

0


Human Resources

The human resources (HR) unit has focused onsupporting the capacity and capability componentsof the strategyandensuring that the requiredhumancapitalresources,skillsandperformancerequirementsareinplace.

The organisational structure was reviewed in termsof future capacity requirements and the FPB hasdecidedtoundertakeaformalorganisationaldesignreviewprocess,whichwillconfirmthatthestructuresupports the business plans and strategy in future.This exercise will be a prerequisite for addressingcurrentrequestsbystaffforajobregradingexerciseattheFPB.

The FPB has continued to take cognisance of equityprofilesinitsrecruitmentandstaffingprocesses.Forthe2017/2018period,theorganisationreportedgenerallyequitable representation across race and gender.Currently,56%ofstaffarefemale.Forsometime,theorganisation has been under-represented in the areaofpersonswithdisability.During the reportingperiod,goodprogresswasmade and personswith disabilitynowconstitute2.4%ofthestaffcomplement(againstatargetof2%)and13%oftheclassifierpoolasaresultoftheaforementionedtargetedselectionprogramme.

The FPB ran its fourth internship programme from1 October 2016 through to 30 September 2017.Ten interns were appointed to the following units:Finance, Legal, Client Support, ICT, HR, Research,Communications, Governance, Classification andOperations.This teamofyoungprofessionalssettledinwellandenjoyedabroad-basedlearningexperienceat the FPB. In return, the interns provided the FPBwith significant administrative support for a varietyof projects and programmes. The programme wassupported by a career development and personalexcellence intervention that assisted the interns toprepareforpost-internshipcareers.

Oftheeightinternswhocompletedtheirfullinternship,two were appointed permanently in the organisation,whilethreewereappointedonfixed-termcontracts.

Team-basedtraininginterventionsforthereportingperiodincluded the abovementioned career developmentprogrammeforinternsandselectedjuniorstaffmembers,internalaudittrainingfortheInternalAuditteam,Prince2projectmanagementfoundationcourseandastaffvaluesworkshopprocessthatstartedinQ4.

The recruitment function ishandled in-houseand thisresulted in a response handling and placement costsavingofR343265.

Familiarity with the FPB’s classifiable elements

Horror

Sex

Drugs

Language

Violence

Prejudice

Sexual

Violence

Nudity

Imitable

Acts

LEVEL OFFAMILIARITYIN

%

Correctanswer Incorrectornoanswer

24%

75%

97.4%

2.6%

76.3%

23.6%

100% 100%

0%0% 2.6%

97.4%

19.4%

80.6%

92%

8% 12%

88%

100

90

80

70

60

50

40

30

20

10

0


The in-housingofthepayrolladministrationandqueryfunctionsinceOctober2014continuestoconstituteanannualcostsavingofapproximatelyR520000.

Communications and Public Education

Wehavecontinuedto implement thecommunicationstrategy of improving the FPB’s brand by deliveringhigh-visibility and high-impact campaigns. This wasdelivered through multi-unit campaign approachesimplemented in the previous financial year. Throughthese campaigns, we launched digital literacycampaignsonsocialmediawithcutting-edgethemesand digital concepts that increased and improvedonlinetractionandimpressions.

Thegender-basedviolencestakeholderdialoguehostedduringWomen’sMonthinpartnershipwiththeCommissionforGenderEqualityprovedoneofourmostsuccessfulmulti-unitcampaigns.The robustconversationscarriedon social media through #GBVInMedia #FPBDialoguesawustrendingnumber twoonTwitter.Thethemeforthedialogueswas‘Sexualviolenceanditsprevalenceinthemedia’. The dialogue launched the review thatwillmeasure whether the classification guidelines are stillreflectiveofSouthAfrica’ssocietalnorms.

SaferInternetDay(SID)wascelebratedintheWesternCape with the theme ‘Create, connect and sharerespect:Abetterinternetstartswithyou’.Childrenaregrowinginaconnected,digitalisedsocietywheretheyareexposedtotechnologybeforetheyevenunderstandtherisksassociatedwithonlineactivities,andareoftenexposed to inappropriate content. Teachers, parentsand learnerspledged topractice safer internet habitsand report child pornography. The pledge took onspecialsignificancewhenDeafSAtaughtalldelegatestomake thepledge insign language.Wecontinue tochairtheSaferInternetDayCommitteeinSouthAfrica.Our country is one ofmore than 100worldwide thatmarkSID,whichiscelebratedonthesecondTuesdayofthesecondmonthannually.

The schools outreach programme is still one of ourmost successful campaigns and we have started

engaging schools for the deaf. In the next financialyear,weareplanningtoincludeschoolsfortheblindanddisabled.

Workshops and Engagements conducted

Stakeholders engaged Engagement number

Numberofparents 1148

Numberofeducators 728

Numberofschools 65

Numberoflearners 19711

Lawenforcementworkshops 598

In-cinemaworkshops 271

Media Relations and Social Media

Mediaengagementhasimprovedconsiderablyandwehave created dialogue on our social media platformsthroughnumerouscampaigns.

The release of the Kalushi movie afforded theorganisation an excellent platform toposition itself asa thought-leader thatencouragesrobustconversationonsocial illsandsupportslocalcontent.Alsotrendingwas the #Backtoschool campaign, which educatesparents, learners and teachers about the dangers ofposting imagesofminors in uniformon socialmedia.Thecampaignwasreceivedpositivelybymediaandledto various interviews, resulting in both broadcast andprintmediacoverage.

Unfortunately, a tweet that we released as a hoaxwasmisinterpretedasinferringthattheLesbian,Gay,Bisexual,Transgender,QueerandIntersex(LGBTQI+)communitywas adding pedosexuals to its acronym.This created quite an uproar, particularly amonginternational Twitter users.We subsequently deletedthe tweet and apologised for the furore it caused.This was a lesson learnt in content verification andcontingency measures have been put in place topreventarecurrence.


Media Coverage

Media Statistics % Annual Increase (Target) 2016/2017 baseline 2017/2018 TargetsAdvertisingValueEstimate(AVE) 944% R20745741 R216607575

Circulation 368% 276244830 1294387749

NumberofClips 150% 1380 3458

Social Media

Social Media Platform % annual increase Facebook 20%increaseinpageengagements

Twitter 354%increaseinpageimpressions

Strategic Partnerships

The year under review saw the development of apartnership with the United Nations Population Fund(UNFPA)andtheCommissionofGenderEquality.Themainaimistodriveconversationwithsociety,especiallyyouths,onsocialissues.Thepartnershipwasresponsiblefor the Women’s Month ‘Gender-based violence inmedia’dialogueandthe16DaysofActivism‘Genderviolenceandtheusageoftechnology’dialogue.Thesetwodialoguesincludednon-governmentalorganisations(NGOs) in child protection, youth development andgenderequality.

In terms of our two flagship projects – the review ofthe tariff structure and the review of the classificationguidelines – we implemented a more interactiverelationship with our stakeholders, visiting all nineprovincestoengageindustrystakeholders,society,civilsociety,caregiversandlawenforcementagentsontheimpactoftheFPBontheirdailyworkandinteractions.

Internationalengagementswereimplementedinlinewiththeapprovedschedule. In termsof thememorandumofunderstandingbetweentheFPBandtheKenyaFilmClassification Board (KFCB), the FPB attended andpresentedattheinauguralKenyaFilmConvention.Weparticipated intheCommonwealthTelecommunicationOrganisation’s ICT forum to engage ICT stakeholdersand keep abreast of trends. As media convergencerequires us to proactively seek ways of classifyingcontentondifferentplatforms,weattendedtheSouthernAfricanDevelopmentCommunity(SADC)ICTMinistersmeetingandtheClassificationConference inSweden.InlinewithourINHOPEmembership,weattendedtheannualgeneralmeeting,forumandtraining.


FINANCIAL TRENDS

Revenue Collection

The total revenue of R100 298 878 received by FPBfortheyearcamefromoperatingsubsidiesgrantedbytheDoC(R91684000),regulationfees(R7741329),interestreceived(R863674)andotherincome(R9875).This incomewas, however, not sufficient tomeet therisingoperatingcosts.

Agrant subsidy increasedby6%on theR86472000receivedinthepreviousfinancialyear.RegulationfeesofR7741329weregeneratedinthecurrentfinancialyearcompared toR6718708 in thepreviousfinancial year,an increase of 15%. The increase on regulation fees isattributabletoonlinelicensingfeesandclassificationfees.

Registration fees continued to decline in linewith thedropinthenumberofnewregistrationsofmoviesandgamesdistributors.FPBinvesteditssurplusfundswiththeCorporationforPublicDeposits(CPD)andgeneratedinterestofR863674,lessthantheR1062566oftheprevious year, but attributable tomostprojects in theyearunderreviewbeingexecutedontime.

TheFPBispilotinganonlinecontentregulationsystem,whichisscheduledtogoliveinthe2018/2019financialyear.This initiativewillensurethatcontent isclassifiedanytimeandanywhere,whichisexpectedtoboostouronlinelicencerevenue.

Operating Expenditure

Operatingexpenditure increasedby7%,themaincostdriverbeingpersonnel.Administrativecostswerebroughtdownby5%,fromR32752165toR31091309,andan accounting surplus of R7 466 311 was recordedcomparedtoR3840748inthepreviousfinancialyear.

Cash Flow

CashandcashequivalentsinthestatementoffinancialpositionattheendoftheyearwereonlyR15297830,allcommitted.

Sources of Revenue

2017/18

Estimate Actual Amount Collected (Over)/Under Collection

R’000 R’000 R’000Operationalgrant 91684 91684 -

Regulationfees 8016 7741 275

Otherrevenue - 9 9

Interestincome 626 864 (237)

Total 100 327 100 298 29

Sources of Revenue

2016/17

Estimate Actual Amount Collected (Over)/Under Collection

R’000 R’000 R’000Operationalgrant 86472 86472 -

Regulationfees 6065 6718 (654)

Otherrevenue - 80 (80)

Interestincome 772 1062 (290)

Total 93 309 94 332 (1 024)


GOVERNANCE


Council and Committees

TheFPB’sCouncilwasestablishedintermsofSection3(1) of the Act and is the Accounting Authority intermsofSection49(1)and(2)(a)ofthePublicFinanceManagement Act. The Council reports on the FPB’sperformance to the Executive Authority in terms ofSection4A (1)of theAct.Counciland itscommitteesarefullyeffectiveincarryingouttheirwork.

AnewAppealTribunalwasappointedduringthisfinancialyearandmembershavestartedtheirworkinearnest.

Institutional Governance

ThefollowingisabriefoutlineoftheactivitiesofCouncilanditscommitteesforthisreportingyear:

Council

Councilisfullyconstitutedandhascontinuedtodoitswork diligently. Our relationship with theMinistry andParliament has remained cordial, and our reportinghasbeenstrictly in linewith legislationandapplicableNationalTreasuryRegulations.

Audit and Risk Committee

The Audit and Risk Committee continues to playa pivotal role in ensuring general compliance withfinancial regulations and governance obligations. TheCommittee continues tobe thoroughand rigorous inensuringthatweadheretosoundfinancialcontrolsandmitigationofrisks.Thein-houseinternalauditunithasgainedmomentum, and the process to gradually doawaywiththeco-sourcedmodel,withlimitedfinancialauditing,isongoing.

Council hascontinued to receiveassurance that FPBwascompliantwiththeprovisionsofthePublicFinanceManagementActandtothatend,quarterlycompliancereportshavebeenconfirmedasaccurateandmeetingallregulatoryrequirementsbyNationalTreasury.

Chairpersons Committee

ThisCommittee,comprisingChairpersonsofallCouncilCommittees, has the responsibility of attending to

urgent corporate governance matters in betweenCouncil meetings. The Committee focusesmainly onmonitoring strategy implementation and compliancewiththeCodeofEthics.Duringtheyearunderreview,theCommitteeheld fourquarterlymeetingsandthreespecialmeetings.

Finance Committee

TheFinanceCommitteeisoneofthemostimportantCouncilCommitteesasitensuresthattheorganisationisfinanciallysound.TherobustnessoftheCommitteein scrutinising financial statements and ensuringaccurate financial reporting remains one of the keypillars of FPB’s success and financial sustainability.Duringtheyearunderreview,theFinanceCommitteeheld four quarterly meetings and two joint meetingswith the Audit and Risk Committee in line withthe Annual Council Schedule. The joint meetingsconsidered the Annual Financial Statements, AnnualPerformance Information Report and the Auditor-General’sManagementReport.

Human Resources (HR) and Remuneration Committee

The HR and Remuneration Committee is primarilyresponsible for monitoring the human capitalmanagement policies and all related aspects oforganisational capacity, including training andremuneration. During the reporting period, theCommittee held all four scheduled meetings. TheCommitteehascontinuouslyreviewedpoliciestoensurecomplianceandalignmentwithrelevantlegislationandthenationalpolicyframework.TheCommitteeheldfourquarterlymeetings.

Operations and ICT Committee

TheOperationsandICTCommitteeisresponsibleforoverseeing all aspects of the organisation’s strategicoperations, which include classification, distributorregistrations,compliancemonitoring,childprotection,communications,research,ICTgovernance,aswellasstakeholderrelations.Duringtheperiodunderreview,the Committee oversaw the launch of the conceptdocumentforthereviewofthetariffmodel.


Corporate Governance

All governance structures, which include Council, itscommittees,aswellastheAuditandRiskCommittee,areingoodstanding.

TheAppealTribunalisinplaceandisfullyconstituted.

AllCouncilmembersfiledtheirdeclarationsofinterestswithinthestipulatedtimeincompliancewiththePFMAandPublicServiceActof1994,asamended.

CouncilmemberswereremuneratedbasedonNationalTreasuryGuidelines.

The Council Charter, Code of Conduct and Ethics,as well as Terms of Reference for committees werereviewed and updated. The governance agreement,withtheExecutiveAuthoritywasreviewedandadoptedfortheyearunderreview.

The FPB’s governance instruments are, therefore,uptodateandvalid. IcanconfirmthattheFPBis ina healthy state of finances, and therefore remains agoingconcern.

Meetings

CouncilandallcommitteesheldmeetingsinaccordancewiththeAnnualCouncilProgrammeasfollows:

Council – 11 Meetings

Ordinary Meetings14June201714September201706December201702March2018

Special/urgent Meetings 17May201727September201719October201730November201725January201826February201816March2018

Workshops21-22August2017–CouncilStrategyReviewOctober2017–CouncilStrategyPlanning

Audit and Risk Committee – 6 Meetings11May201726May2017(JointmeetingwithFincom)27July2017(JointmeetingwithFincom)05September201728November201730January2018

Chairpersons Committee – 7 Meetings

Ordinary Meetings12June201714August201707October201716February2018

Special/urgent Meetings15March201806April201726June201728August2017

Finance Committee – 6 Meetings11May201726May2017(JointmeetingwithAC)27July2017(JointmeetingwithAC)05September201728November201720February2018

Human Resources and Remuneration Committee – 5 Meetings16May201716August201721February201808March201806November2017(Specialmeeting)17November2017(Specialmeeting)

Operations and ICT Committee – 4 Meetings29May201729August201728November201708February2018

Appeal Tribunal - 4 Hearings28June2017–Inxeba-TheWound(Film)17October2017–Gringo(Film)21December2017–Jumanji(Film)13February2018–Inxeba-TheWound(Film)13April2017–TrainingWorkshop


ICT Steering Committee – 5 Meetings20April201715August201708November201726January201807February2018(Specialmeeting)

Member Attendance

Council Number of Council and Committee meetings attended

MrsNFTMpumlwana(Chairperson) 14**

MsSMangena(DeputyChairperson) 20

MrMDitlhake 19

AdvMudunungu 12*

MsYMakhasi 18

MsNDubazana 19

AdvLNevondwe 15*

DrNSkeepers 20

MsVMhlakaza 10

Note: Attendance above includes all Council andCommitteemeetings.

** Council Chairperson attends only Council andChairpersonsCommitteemeetings.

*ThesemembersbelongonlytooneCouncilcommitteeeach.

Audit and Risk Committee Number of meetings attended

MsZNkosi(Chairperson) 6

DrNSkeepers 5

MrMGDhladhla 6

MsSMangena 5

Internal Audit

The Internal Audit activity of the FPB obtains itsmandate from the Public Finance ManagementAct (PFMA) and its regulations. The Internal Auditfunctionwasestablished in termsofSection51 (1)(a)(ii)ofthePFMA.

The FPB has established a system of Internal Auditunder the control anddirectionof theAudit andRiskCommittee. As such, the Committee has during thefinancialyearendedMarch2018reviewed:• TheactivitiesandeffectivenessoftheInternalAudit

function;• Theaccountingandauditingconcernsidentifiedas

aresultoftheinternalaudits;and• Theeffectivenessofinternalcontrolsystems.

TheprimaryfunctionofInternalAuditistogiveobjectiveassurance to the Audit and Risk Committee thatadequatemanagementprocessesareinplacetoidentifyandmonitor risks, and that effective internal controlsare in place to manage those risks. Internal Auditindependently audits and evaluates the effectivenessof the FPB’s risk management, internal controls andgovernance processes. In addition, Internal AuditprovidesconsultingservicestoaddvalueandimprovetheFPB’soperations.

The Internal Audit Unit has executed 100% of theapproved Internal Audit Plan. Based on the workperformed, InternalAuditwould like to report that thesystemsofinternalcontrolfortheperiodunderreviewwereeffectiveandefficient.

Risk Management and Fraud Prevention

Risk Management

Riskmanagementisatthecoreoftheoperationsandmanagement of the FPB. The FPB has developedan enterprise risk management framework and riskmanagement policy, which guide the process ofidentifying and managing risks. The FPB continuedto implement riskmanagement processes as per theapprovedRiskManagementPolicyandStrategy.

A formal risk assessment was carried out to identifythe strategic andoperational risksof theFPB.Actionplansweredevelopedbymanagementtomitigatetherisksidentified.Asaresult,astrategicriskregisterandoperational risk registers were developed which aremonitoredbyInternalAuditforeffectivenessandbytheAudit andRiskCommittee in its oversight role.Whileprogress has been noted in mitigating certain risks,therewerechallenges inmitigatingsome risksdue tohumanresourceconstraints.


Fraud Prevention

The FPB is aware of the dangers of theft, corruptionand fraudulent activities that will negatively affect itsbusiness performance. It has, therefore, developed aFraudPreventionStrategyandPlanwhichitevaluateson a continuous basis. The Fraud Hotline continuesto be implemented and appropriate action taken toinvestigate and resolve all received complaints,whicharetreatedinthestrictestconfidence.ThereisaCodeofEthics,which isusedtomanagethedeclarationofinterestsbyCouncilmembersandstafftomanageFPBtransactions and ensure ethical business practices.Fraud awareness is conducted by Internal Audit viapresentations at the quarterly staff workshops andregularfraud-relatedarticlesviaemailtoallstaff.

Conclusion

Inconclusion,mayIsaythattheFPBcontinuestomakean impact in the lives of ordinary SouthAfricans.Wehavemadestridesinensuringthatcontentclassificationis recognised as a necessary intervention in nationbuildingand fosteringsocialcohesion,especiallyas itpertainstotheprotectionofchildren.

ThenextstepfortheFPBistoattainasingleclassificationsystem,whichwillensurethatthereisageneralstandardofcontentclassificationthroughoutthecountry,whichisnotbasedonanyspecificplatform.

WiththeimpendingfinalisationoftheAmendmentBill,theFPBwill be in amuchstronger regulatory footingthanitisnow.

_____________________________Mr Tlale D Mokutu CouncilSecretary


HUMAN RESOURCE MANAGEMENT


TheHRReportprovidesanoverviewofsomeof theactivitiesand trends thathaveoccurredover the12-monthreportingperiod. These include statistical data relating to staffmovements, employment equity and race/genderrepresentation,staff-relatedexpenditurepatternsandlabourrelations.

Expenditure

The following tables summarise final auditedexpenditurebyprogrammeandby salarybands. Inparticular, theyprovideanindicationoftheamountspentonpersonnelcostsintermsoftheprogrammesorsalarybandswithinthedepartment.

Table1PersonnelCostsbyProgramme2017/2018

Programme Total Expenditure

(R’000)

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Professional and Special

Services

(R’000)

Personnel Costs as a % of Total

Expenditure(R’000)

Average Personnel Cost Per Employee

(R’000)Staff 47637 46340 1297 0.00 97% 521

Classifiers 6902 6902 0.00 0.00 100% 192

Total 54539 53242 1297 0.00

Table2PersonnelCostsbySalaryBands2017/2018

Salary Band Personnel Expenditure(R’000)

% of total personnel cost

(R’000)

Average personnel cost per employee

(R’000)Classifiers 6902 13% 192

SupportStaff 33364 63% 452

SeniorManagement 8621 16% 958

Executive 4355 8% 726

Total 53242 100%

Employment and Vacancies

Table3EmploymentandVacanciesbySalaryBands,31March2018

Salary Band Number of Posts

Number of Posts Filled

Vacancy Rate %

Additional to the establishment

– (added to FPB structure)

SupportStaff 74 67 9.40% 5

SeniorManagement 11 9 18.18% 0

ExecutiveManagement 5 0 0.00% 0

ProgrammeTotal 90 76 15.56% 5


Table4 JobEvaluation

Posts Upgraded Posts Downgraded

Salary Band Number of Posts

Number of Jobs Graded

% of Posts

Evaluated by Salary

Band

Number % of Posts Upgraded

Number % of Posts Downgraded

ExecutiveManagers 1 0 0% 0 0% 0 0%

SeniorManagers 9 0 0% 0 0% 0 0%

SupportStaff 74 12 17% 0 0% 0 0%

Total 84 12 14% 0 0% 0 0%

Table 5 Employees whose Salary Level Exceeds the Grade Determined by Job Evaluation, 01 April 2017 to31March2018

Occupation Number of Employees

Job Evaluation

Level

Remuneration Level

Reason for Deviation

ExecutiveAssistant(AF) 1 C3 C4PostsreviewedaspartoftheFPBturnaroundimplementation

AdministrativeOfficer–AssistanttoCouncil(AF)

1 B4 C1PostsreviewedaspartoftheFPBturnaroundimplementation

LegalAdminAssistant(AF) 1 B3 B4PostsreviewedaspartoftheFPBturnaroundimplementation

RegionalCoordinator(CM) 1 C3 C5PostsreviewedaspartoftheFPBturnaroundimplementation

RegionalCoordinator(AM) 1 C3 C4 Historic

PublicationsMonitor(AF) 1 C2 C3PostsreviewedaspartoftheFPBturnaroundimplementation

AssistantManager:ClientSupport(IM)

1 C3 C4PostsreviewedaspartoftheFPBturnaroundimplementation

AdminandClientSupportOfficer(AF)


CoordinatorStrategicPartnerships(AF)


AssistantManagerInspectionandPublicEducation

1 C4 C5AssistantManagersalariesbenchmarkedforretentionpurposes

AssistantManagerClassification(WF)



Occupation Number of Employees

Job Evaluation

Level

Remuneration Level

Reason for Deviation

AssistantManagerSupplyChain(AM)


Totalnumberofemployeeswhosesalariesexceededtheleveldeterminedbyjobevaluationin2017/2018 12

Percentageoftotalemployment12/90 13.33%

Table6ProfileofEmployeeswhoseSalaryLevelExceedstheGradeDeterminedbyJobEvaluation–01April2017to31March2018(fromtable5)

Beneficiaries African Indian Coloured White TotalFemale 7 0 0 1 8

Male 2 1 1 0 4

Total 9 1 1 1 12

Employment Changes

Table7AnnualTurnoverRatesbySalaryBandsfortheperiod01April2017to31March2018

Salary Bands Number of Employees per Level as at 01

April 2017

Appointments and Transfers In

Terminations and Transfers Out

Turnover Rate %

SupportStaff 74 16 16 20%

SeniorManagement 11 0 2 18%

ExecutiveManagement 5 2 7 100%

Total 90 18 24 22.2%

Note:Turnoverstatsincludethecompletionoftheinternshipcontractsx10andterminationoffixed-termcontracts

Turnoverrate=Terminationsdividedby(numberofemployees+appointments)

ActualTurnover(excludinginternsandFTC)

90 18 10 9.2%


Table8ReasonswhyStaffareLeavingtheDepartment

Termination Type Number % of total Death 0 0%

Resignation 7 29%

ExpiryofContract 15 63%

Dismissal-organisationalchanges 0 0%

Dismissal–misconduct 0 0%

Dismissal–inefficiency 0 0%

Dischargeduetoill-health 0 0%

Retirement 0 0%

Other 2 8%

Total 24 100%

Totalnumberofemployeeswholeftasa%ofthetotalemployment 27%

Employment Equity

Table9TotalnumberofEmployees(includingPeoplewithDisabilities)ineachofthefollowingOccupationalCategoriesasat31March2018:

Occupational Categories

Male FemaleTotalAfrican Coloured Indian White African Coloured Indian White

SupportStaff 23 3 4 1 40 0 1 2 74

SeniorManagement 3 0 1 1 4 0 0 0 9

ExecutiveManagement 1 0 0 0 0 0 0 0 1

Total 27 3 5 2 44 0 1 3 84

PersonswithDisabilities– included in theabovetable

0 0 0 0 2 0 0 0 2

Table10RecruitmentforthePeriod01April2017to31March2018

Occupational BandsMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

SupportStaff 6 0 0 0 9 0 0 0 16



Total 7 0 0 0 10 0 0 0 18


Table11TerminationsforthePeriod01April2017to31March2018

Occupational BandsMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

SupportStaff 2 0 0 0 12 0 1 0 15



Total 5 0 0 1 15 1 1 1 24

Table12DisciplinaryActionforthePeriod01April2017to31March2018–disciplinaryregister


DisciplinaryAction 0 0 0 0 5 0 0 0 5

Table13SkillsDevelopmentforthePeriod01April2017to31March2018



SupportStaff 22 0 4 0 43 0 1 2 72



Total 27 0 5 1 46 0 1 2 82

PersonswithDisabilities 0 0 0 0 2 0 0 0 2


Performance Rewards

Table14PerformanceRewards,byRace,GenderandDisability,01April2017to31March2018

Number of Beneficiaries

Total Number of Employees

in Group

% of Total Within Group

Cost Average Cost per Employee

African

Male 20 27 74% 380794.59 19039.73

Female 37 44 84% 671290.36 18142.98

Indian

Male 4 5 80% 83246.95 20811.74

Female 2 1 200% 39067.67 19533.84

Coloured

Male 3 3 100% 52775.81 17591.94

Female 0 0 0% 0 0

White

Male 3 2 150% 100177.41 33392.47

Female 2 2 100% 39855.39 19927.70

Total 71 84 84.5% 1367209.38 19256.00

EmployeeswithDisability

0 0 0 0 0


Table15PerformanceRewardbySalaryBandforPersonnelbelowSeniorManagementService,01April2017to31March2018

Salary Band Number of Beneficiaries

Number of Employees


Cost Average Cost per

Employee

Total Cost as % of Total

Personnel CostSupportStaff 60 68 88% 943587 15726 2.8%

Total 60 68 88% 943587 15726 2.8%

Table16Performancerelatedrewardsbysalaryband,forSeniorManagementService,01April2017to31March2018

Salary Band Number of Beneficiaries

Number of Employees


Cost Average Cost per

Employee

Total Cost as % of Total

Personnel CostSeniorManagement&ExecutiveManagement

11 16 69% 423622 38511 9.7%

Total 11 16 69% 423622 38511 9.7%

Leave Utilisation for the Period 01 April 2017 – 31 March 2018

Table17SickLeave,01April2017to31March2018

Salary Band Total Days % Certification

No. of Employees Using Sick

Leave

% Of Total Employees Using Sick

Leave

Average Per

Employee

Estimated Cost

SupportStaff 602.5 76% 65 88% 9.27 833464.90

SeniorManagement

62 67% 11 100% 5.6 196832.12

ExecutiveManager

10 60% 2 40% 3.346216.98

Total 674.5 76% 78 87% 8.5 1076514

Table18AnnualLeave,01April2017to31March2018

Salary Bands Total Days Taken Number Of Employees In Grade

Average per Employee

SupportStaff 1589.3 74 21.5

SeniorManagement 158.5 9 17.6

ExecutiveManagement 0 1 0

Total 1747.8 84 20.8


Table19LeavePayoutsforthePeriod01April2017to31March2018

Reason Total Amount Number of Employees Average Payment per Employee

Leavepayoutfor2017/18duetonon-utilisation

0 0 0

CappedLeavepayoutsonterminationofservice

0 0 0

Currentleavepayoutonterminationofservice

443459.04 21 21117.09

Total443459.04

21 21117.09

Table20:HIV/AidsandHealthPromotionProgrammes

Details of Health Promotion and HIV and AIDS Programmes (tick the relevant boxes and provide the requiredinformation)

Question Yes No Details, if yesHasthedepartmentdesignatedamemberoftheSMStoimplementtheprovisionscontainedinPartVIofChapter1ofthePublicServiceRegulations,2001?Ifso,providehis/hernameandposition.

X

AndreMichauxHRManager

Doesthedepartmenthaveadedicatedunitorhasit designated specific staff members to promotethehealthandwellbeingofyouremployees?Ifso,indicatethenumberofemployeeswhoareinvolvedinthistaskandtheannualbudgetthatisavailableforthispurpose.

X

HRUnit

Has the department introduced an EmployeeAssistance or Health Promotion Programmefor employees? If so, indicate the key elements/servicesofthisProgramme.

X

HealthandWellbeingSurveyWellnessDaysMonthlyWellnessNewsletterWellnessCallCentreOn-siteCounsellingServicesEAPReferralSystemHealthAwarenessInterventionsCompulsoryTraumaDebriefings forSpecifiedJobCategories.

Has the department established a committee(s)as contemplated in Part VI E5 (e) of Chapter 1of the Public Service Regulations, 2001. If so,pleaseprovidethenamesof themembersof thecommitteeandthestakeholder(s)theyrepresent.

X

JudasMatlakaleMphoMooketsiZangeMgolombaneNosiphoDladlaNomfundoRalanteThandoMlamboKagisoMmitsiKomillaMoodleyJacquelineSteynAndreMichauxStakeholder=FPBEmployees.


Question Yes No Details, if yesHas the department reviewed its employmentpoliciesandpracticestoensurethatthesedonotunfairly discriminate against employees on thebasisoftheirHIVstatus?Ifso,listtheemploymentpolicies/practicessoreviewed.

X

HealthandSafetyPolicyBereavementPolicyEmployeeWellnessPolicyEmployeeAssistanceProgrammeLeavePolicySexualHarassmentPolicyHIV/AIDSPolicy

Has the department introduced measures toprotectHIV-positiveemployeesorthoseperceivedtobeHIV-positivefromdiscrimination.Ifso,listthekeyelementsofthesemeasures.

X

Covered in theHIV/Aidsandotherapplicablepolicies.

DoesthedepartmentencourageitsemployeestoundergoVoluntaryCounsellingandTesting?Ifso,listtheresultsthatyouhaveachieved. X

VCTconductedannually0% response for Voluntary Counselling andTestinginthepreviousreportingperiod.

Has the department developed measures/indicators tomonitor and evaluate the impact ofits health promotion programme. If so, list thesemeasures/indicators.

X

Employee Assistance – counselling referralsandcallcentreutilisationHIVVCTWellnessProgrammeAnnualReportProductivity –SickLeave trends tobewithin2%ofdaysworked(actual=3.2%)

Labour Relations

Table21:CollectiveAgreements,01April2017to31March2018

Thefollowingcollectiveagreementswereenteredintowithtradeunionswithinthedepartment.

Subject Matter DateMulti-YearWageSettlementAgreement–2017/2018and2018/2019

08September2017

Table22MisconductandDisciplinaryHearingsFinalised,01April2017to31March2018

Outcomes of Disciplinary Hearings Number % of totalCorrectionalCounselling(includedlettersofcautioninthis) 0 0%

VerbalWarning 5 100%

WrittenWarning 0 0%

FinalWrittenWarning 0 0%

SuspendedwithoutPay 0 0%

Fine 0 0%

Demotion 0 0%

Dismissal 0 0%

Casewithdrawn 0 0%

Other 0 0%

Total 5 100%


Table23TypesofMisconductAddressedatDisciplinaryHearings

Type of Misconduct Number % of totalFruitlessandwastefulexpenditure 0 0

Negligence/non-compliancewithprocedures 4 80%

Unauthorisedabsence 1 20%

Failuretomeetperformancedelivery 0 0%

Derelictionofduty 0 0%

TheftofFPBmaterials 0 0%

Dishonesty/bringingnameofFPBintodisprepute 0 0%

Non-disclosureofpendinglabourcourtcase 0 0%

5 100%

Table24Grievanceslodgedfortheperiod01April2017to31March2018

Numberofgrievanceslodged 4

Table25Disputeslodgedwithcouncils/CCMAfortheperiod01April2017to31March2018

Numberofdisputeslodged 3

Table26Strikeactionsfortheperiod01April2017to31March2018

Strikeactionsfortheperiod None

Table27Precautionarysuspensionsfortheperiod01April2017to31March2018

Precautionarysuspensionsfortheperiod 2

Skills Development

Table28:Trainingprovided01April2017to31March2018


Gender No. of Employees

as at 01 April 2017

HC

Training Provided Within The Reporting PeriodLearnerships Skills

Programmes and other

Short Courses

other Forms of Training

Total

SupportStaffMale 31 0 21 21 42

Female 43 0 24 45 79

SeniorManagementMale 5 0 3 5 8

Female 4 0 3 3 6

ExecutiveManagement

Male 1 0 0 2 2

Female 0 0 0 0 0

SubtotalMale 37 0 24 28 52

Female 47 0 27 48 75

Total 84 0 51 76 127


Injury on Duty

Table29:InjuryonDuty,01April2017to31March2018

Nature of Injury Number % of totalRequiredbasicmedicalattentiononly 0 0

Temporarytotaldisablement 0 0

Permanentdisablement 0 0

Fatal 0 0

Total 0 100%


FINANCIAL INFORMATION


FINANCIAL INFORMATION

ListofAbbreviations 56

AuditandRiskCommitteeReport 57

ReportoftheAuditor-GeneraltoParliamentontheFilmandPublicationBoard 60

AccountingAuthority’sResponsibilitiesandApproval 66

AccountingAuthority’sReport 67

StatementofFinancialPositionasat31March2018 69

StatementofFinancialPerformance 70

StatementofChangesinNetAssets 71

CashFlowStatement 72

StatementofComparisonofBudgetandActualAmounts 73

AccountingPolicies 74

NotestotheFinancialStatements 88


COID CompensationforOccupationalInjuriesandDiseases

CRR CapitalReplacementReserve

DBSA DevelopmentBankofSouthAfrica

SA GAAP SouthAfricanStatementsofGenerallyAcceptedAccountingPractice

GRAP GenerallyRecognisedAccountingPractice

GAMAP GenerallyAcceptedMunicipalAccountingPractice

HDF HousingDevelopmentFund

IAS InternationalAccountingStandards

IMFO InstituteofMunicipalFinanceOfficers

IPSAS InternationalPublicSectorAccountingStandards

MEs MunicipalEntities

MEC MemberoftheExecutiveCouncil

MFMA MunicipalFinanceManagementAct

MIG MunicipalInfrastructureGrant(PreviouslyCMIP)


The audit and risk committee is established in terms of Section 51(1) (a) (ii), Section 77 of the Public FinanceManagementActreadtogetherwithTreasuryRegulation27.1andactsasagovernancestructureoftheentity.Asrequired,theauditandriskcommitteereportispreparedinlinewiththerequirementsofTreasuryRegulation27.1.

Thecommittee,whichcomprisesfourmembers(refertotablebelow),hasbeenmandatedwithoversightonauditmatters,accounting,riskandcompliance.Duringtheyearunderreview,thecommitteeheldallitsscheduledmeetings,includingjointmeetingswiththeFinanceCommittee,andmemberscontinuedtoactwithduediligenceandcareinthedischargeoftheirduties.

Members and attendance

Member 1 April 2017 – 31 March 2018 11/05/2017 26/05/2017 27/07/2017 05/09/2017 28/11/2017 31/01/2018

MsZNkosi(Chairperson) 1 1 1 1 1 1

MsMMangena 1 0 1 1 1 1

MrGDhladhla 1 1 1 1 1 1

DrNSkeepers 1 1 0 1 1 1

Charter

ThecommitteehasadoptedacharterapprovedbyCouncilandcanconfirmthatfortheyearunderreview,ithascompliedwithboththecharterandtheresponsibilitiesasdetailedintheregulationsmentionedabove.

Effectiveness of internal controls

Infulfillingitsresponsibilitiesfortheyearunderreview,thecommittee:- Reviewedsignificantissuesraisedbyboththeinternalandexternalauditprocesses.- Reviewedtheeffectivenessoftheentity’sfinancialcontrolsandreceivedassurancefrommanagement,

internalandexternalaudit.- Reviewedtheactionplansinplacetoaddresstheshortcomingsidentifiedincontrols.- Recommendedinternalcontrolandcomplianceactivities.

Althoughineffectivenesshasbeenidentifiedinsomeareas,thecommitteeissatisfiedintheadequacyandeffectivenessofcontrolsinmostoftheentity’sactivities.Wherecontroldeficiencieswereidentified,actionplansareinplaceandthecommitteewillcontinuetomonitoronaquarterlybasis.


Internal audit

Theinternalauditperformsanindependentassurancefunctionbyconductingperiodicalassessmentsontheactivitiesoftheentityandreportingthefindingsthereoftothecommittee.

Insupportofthefunction,fortheyearunderreview,thecommittee:- Approvedtheannualandthree-yearrollingplan.- Reviewedandapprovedtheinternalauditcharter.- Reviewedquarterlyinternalauditreportshighlightingissuesidentifiedfromtheentity’sinternalcontrols,

systemsandprocesses.- Reviewedtheeffectivenessofinternalauditbyquarterlymonitoringprogressandqualityofwork.- Consideredtheinternalauditresourcestoensureeffectivedischargeoffunctions.

Duringtheyear, internalauditwasable tocomplete itsplanandthecommittee issatisfiedthat the functionwasdischargedeffectivelyandefficiently.

Risk management

Asanessentialelementofgovernance,theroleofthecommitteeistoprovideoversightonthesystemsandprocessesofriskmanagementwithintheentity.

Infulfillingthisrolefortheyearunderreview,thecommittee:- Reviewedriskdocumentssuchastheriskmanagementpolicy,procedureandtheimplementationplan.- Reviewedonaquarterlybasis,thestrategicriskregisterandtheimplementationoftheplannedmitigating

actions.- Consideredonaquarterlybasisanyemergingrisks,includingthosearisingfromfraudorwhistleblowing.

Althoughthecommitteehasnotedanoverallprogressinriskmanagement,thereisaneedfortheentitytostrengthenitsprocesses,ensuringthatriskmanagementisatthecoreofitsoperations.Thecommitteewillcontinuetomonitorriskmanagementonaquarterlybasis.

Compliance with laws and regulations

Infulfillingitsresponsibilitiesfortheyearunderreview,thecommittee:- Monitoredcompliancewithlawsandregulations.- Reviewedbothinternalandexternalauditsreportstoidentifyanycomplianceissues.

Thecommitteeissatisfiedwiththeentity’scompliancetorelevant,significantlawsandregulations.


Quarterly reporting

Forthefinancialyearunderreview,thecommitteereviewedandapprovedbothquarterlyfinanceandperformancereportsforsubmissiontotheExecutiveAuthorityinaccordancewiththerequirementsofPFMA.

Thecommitteeissatisfiedwiththeentity’scompliancetothesereportingrequirements.

Finance function

Thecommitteehasconsideredtheexpertiseandadequacyoftheresourceswithinthefinanceunitandnotedthatinthecurrentyear,theentityoperatedwithouthavingapermanentCFO.Anactingincumbentwasinplaceuntiltheendofthefinancialyearwhilerecruitmentprocesseswereunderway.

Evaluation of annual financial statements and performance information

The committee evaluated the financial statements togetherwith the performance information and based on theprocessesandassuranceobtained,recommendstheinformationtotheCouncilforapproval.

Auditor’s report

In fulfilling itsresponsibilities foroverseeingtheexternalauditprocess,thecommittee independentlymetwiththeexternal auditors and can confirm that they are independent and have conducted the audit without influence.Implementationplansforauditissuesraisedinthepreviousyearwerereviewedandthereissatisfactionastotheresolutionofallmatters.

ThecommitteediscussedtheauditoutcomeswithbothmanagementandAGSA.Basedonthesediscussions,thecommitteeacceptstheconclusionsandisoftheopinionthattheauditedfinancialstatementsbeacceptedandreadtogetherwiththereportoftheAuditor-General.

Appreciation

ThecommitteeexpressesitsappreciationtotheAccountingAuthority,theseniormanagementteam,internalauditandtheAuditor-Generalfortheircontinuedsupportanddedicationduringtheyearunderreview.

_____________________________Zanele NkosiChairperson:AuditandRiskCommittee


Opinion

1. I haveaudited the financial statementsof theFilmandPublicationBoard (FPB) setoutonpages69 to103,whichcomprise thestatementoffinancialpositionasat31March2018, thestatementoffinancialperformance,statementofchangesinnetassets,andcashflowstatementandthestatementofcomparisonofbudgetandactualamounts for theyear thenended,aswellas thenotes to thefinancialstatements,includingasummaryofsignificantaccountingpolicies.

2. Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofFPBasat31March2018,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithStandardsofGenerallyRecognisedAccountingPractice(StandardsofGRAP)andtherequirementsofthePublicFinanceManagementActofSouthAfrica,1999(ActNo.1of1999)(PFMA).

Basis for opinion

3. IconductedmyauditinaccordancewiththeInternationalStandardsonAuditing(ISAs).Myresponsibilitiesunder those standards are further described in the auditor-general’s responsibilities for the audit of thefinancialstatementssectionofthisauditor’sreport.

4. I am independent of the public entity in accordance with the International Ethics Standards Board forAccountant’sCodeofethicsforprofessionalaccountants(IESBAcode)andtheethicalrequirementsthatarerelevanttomyauditinSouthAfrica.IhavefulfilledmyotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBAcode.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis formyopinion.

Responsibilities of the Accounting Authority for the financial statements

6. TheAccountingAuthorityisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithStandardsofGRAPandtherequirementsofthePFMA,andforsuchinternalcontrolastheAccountingAuthoritydeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

7. Inpreparingthefinancialstatements,theAccountingAuthorityisresponsibleforassessingtheFPB’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoingconcernbasisofaccountingunless theAccountingAuthorityeither intends to liquidate thepublicentityortoceaseoperations,orhasnorealisticalternativebuttodoso.


Auditor-General’s responsibilities for the audit of the financial statements

8. Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesmyopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeISAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

9. Afurtherdescriptionofmyresponsibilitiesfortheauditofthefinancialstatementsisincludedintheannexuretothisauditor’sreport.

Introduction and scope

10. InaccordancewiththePublicAuditActofSouthAfrica,2004(ActNo.25of2004)(PAA)andthegeneralnoticeissuedintermsthereof,Ihavearesponsibilitytoreportmaterialfindingsonthereportedperformanceinformationagainstpredeterminedobjectivesforselectedprogrammespresentedintheannualperformancereport.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.

11. My procedures address the reported performance information, whichmust be based on the approvedperformance planning documents of the public entity. I have not evaluated the completeness andappropriatenessoftheperformanceindicatorsincludedintheplanningdocuments.Myproceduresdidnotextendtoanydisclosuresorassertionsrelatingtoplannedperformancestrategiesandinformationinrespectoffutureperiodsthatmaybeincludedaspartofthereportedperformanceinformation.Accordingly,myfindingsdonotextendtothesematters.

12. Ievaluated theusefulnessand reliabilityof the reportedperformance information inaccordancewith thecriteriadevelopedfromtheperformancemanagementandreportingframework,asdefinedinthegeneralnotice, for the followingselectedprogrammespresented in theannualperformance reportof thepublicentityfortheyearended31March2018:

Programmes Pages in annual performance report

Programme1-IndustryCompliance 106-111

Programme2-PublicEducationandAwareness 112-113

Programme4-OnlineandMobileContentRegulation 118-119


13. Iperformedprocedurestodeterminewhetherthereportedperformanceinformationwasproperlypresentedandwhetherperformancewasconsistentwiththeapprovedperformanceplanningdocuments.Iperformedfurtherprocedurestodeterminewhethertheindicatorsandrelatedtargetsweremeasurableandrelevant,and assessed the reliability of the reported performance information to determinewhether it was valid,accurateandcomplete.

14. Thematerialfindingsinrespectoftheusefulnessoftheselectedprogrammeisasfollows:Programme2-PublicEducationandAwareness

15. Theplannedtargetsforthefollowingindicatorswerenotspecificinclearlyidentifyingthenatureandrequiredlevelofperformanceandarethereforenotmeasurable:

Performance indicators per APP Planned targets per APP

NumberofM&Ereports

Numberofpeople reached

CompileM&Ereportsofdigitalliteracyandawareness

Percentageincreaseinsocialmediaengagements

NumberofdigitalmediaM&Ereports

Engagement on FPB’s digital and social mediaplatformsimprovedby20%4digitalmediaM&Ereportscompiled

16. Ididnotraiseanymaterialfindingsontheusefulnessandreliabilityofthereportedperformanceinformationforthefollowingprogrammes:

• Programme1-IndustryCompliance

• Programme4-OnlineandMobileContentRegulation

Other matters

17. Idrawattentiontothemattersbelow.

Achievement of planned targets

18. Refertotheannualperformancereportonpage104to121forinformationontheachievementofplannedtargetsfortheyearandexplanationsprovidedfortheunder/overachievementofanumberoftargets.Thisinformationshouldbeconsideredinthecontextofthematerialfindingsontheusefulnessandreliabilityofthereportedperformanceinformationinparagraph15ofthisreport.


Adjustment of material misstatements

19. I identifiedmaterial misstatements in the annual performance information report submitted for auditing.Thesematerialmisstatementswereonthereportedperformanceinformationofthefollowingprogrammes:

• Programme1-IndustryCompliance• Programme2-PublicEducationandAwareness• Programme4-OnlineandMobileContentRegulation

Asmanagementsubsequentlycorrectedonlysomeofthemisstatements,Iraisedmaterialfindingsontheusefulnessofthereportedperformance informationforProgramme2-Publiceducationandawareness.Thematerialfindingsthatwerenotcorrectedareincludedintheparagraph15above.

Introduction and scope

20. InaccordancewiththePAAandthegeneralnoticeissuedintermsthereof,Ihavearesponsibilitytoreportmaterialfindingsonthecomplianceofthepublicentitywithspecificmattersinkeylegislation.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.

21. I did not raisematerial findingsoncompliancewith the specificmatters in key legislation set out in thegeneralnoticeissuedintermsofthePAA.

Other information

22. The Accounting Authority is responsible for the other information. The other information comprises theinformationincludedintheannualreport.Theotherinformationdoesnotincludethefinancialstatements,theauditor’sreportandthoseselectedprogrammespresentedintheannualperformancereportthathavebeenspecificallyreportedinthisauditor’sreport.

23. Myopiniononthefinancialstatementsandfindingsonthereportedperformanceinformationandcompliancewith legislationdonotcover theother informationand Idonotexpressanauditopinionorany formofassuranceconclusionthereon.

24. Inconnectionwithmyaudit,myresponsibility istoreadtheother informationand, indoingso,considerwhether the other information is materially inconsistent with the financial statements and the selectedprogrammes presented in the annual performance report, or my knowledge obtained in the audit, orotherwiseappearstobemateriallymisstated.Ihavenothingtoreportinthisregard.

Internal control deficiencies

25. Iconsideredinternalcontrolrelevanttomyauditofthefinancialstatements,reportedperformanceinformationandcompliancewithapplicablelegislation;however,myobjectivewasnottoexpressanyformofassuranceonit.Thematterreportedbelowislimitedtothesignificantinternalcontroldeficienciesthatresultedinthefindingonannualperformancereportincludedinthisreport.


Leadership

Oversight responsibility

26. LeadershipdidnotexerciseadequateoversightresponsibilityregardingperformancereportingandrelatedinternalcontrolsresultingintheAPPnotbeingreviewedtimeouslyandsufficiently.Thishasresultedinsometargetsnotbeingmeasurable

Pretoria

31July2018


Annexure – Auditor-General’s responsibility for the audit

1. AspartofanauditinaccordancewiththeISAs,Iexerciseprofessionaljudgmentandmaintainprofessionalscepticism throughoutmy audit of the financial statements, and the procedures performedon reportedperformanceinformationforselectedprogrammesandonthepublicentity’scompliancewithrespecttotheselectedsubjectmatters.

Financial statements

2. Inadditiontomyresponsibilityfortheauditofthefinancialstatementsasdescribedinthisauditor’sreport,I:• identifyandassesstherisksofmaterialmisstatementofthefinancialstatementswhetherduetofraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethatissufficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol

• obtain anunderstandingof internal control relevant to theaudit in order todesignaudit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectivenessofthepublicentity’sinternalcontrol

• evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimatesandrelateddisclosuresmadebytheAccountingAuthority,whichconstitutestheAccountingAuthority

• conclude on the appropriateness of the Accounting Authority, which constitutes the AccountingAuthority’suseofthegoingconcernbasisofaccountinginthepreparationofthefinancialstatements.Iconclude,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubt

• ontheFPB’sabilitytocontinueasagoingconcern.IfIconcludethatamaterialuncertaintyexists,Iamrequiredtodrawattention inmyauditor’sreporttotherelateddisclosures inthefinancialstatementsabout thematerial uncertainty or, if such disclosures are inadequate, to modify the opinion on thefinancialstatements.Myconclusionsarebasedonthe informationavailabletomeatthedateofthisauditor’sreport.However,futureeventsorconditionsmaycauseapublicentitytoceasecontinuingasagoingconcern

• evaluate the overall presentation, structure and content of the financial statements, including thedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Communication with those charged with governance

3. I communicate with the Accounting Authority regarding, among other matters, the planned scope andtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatIidentifyduringmyaudit.

4. I confirm to the Accounting Authority that I have compliedwith relevant ethical requirements regardingindependence,andcommunicateallrelationshipsandothermattersthatmayreasonablybethoughttohaveabearingonmyindependenceand,whereapplicable,relatedsafeguards.


ThemembersarerequiredbytheCompaniesAct,71of2008,tomaintainadequateaccountingrecordsandareresponsibleforthecontentandintegrityofthefinancialstatementsandrelatedfinancialinformationincludedinthisreport.Itistheresponsibilityofthememberstoensurethatthefinancialstatementsfairlypresentthestateofaffairsoftheentityasattheendoftheyearandtheresultsofitsoperationsandcashflowsfortheyearthenended.Theexternalauditorsareengagedtoexpressanindependentopiniononthefinancialstatementsandgivenunrestrictedaccesstoallfinancialrecordsandrelateddatafortheiraudit.

ThefinancialstatementshavebeenpreparedinaccordancewithGenerallyRecognisedAccountingPractice(GRAP)includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.

The financial statements arebaseduponappropriate accountingpolicies consistently applied and supportedbyreasonableandprudentjudgmentsandestimates.

Themembersacknowledgethattheyareultimatelyresponsibleforthesystemofinternalfinancialcontrolestablishedbytheentityandplaceconsiderableimportanceonmaintainingastrongcontrolenvironment.Toenablethememberstomeet these responsibilities, theAccountingAuthoritysetsstandards for internalcontrolaimedat reducing therisk of error or deficit in a cost effectivemanner. The standards include the proper delegation of responsibilitieswithinaclearlydefinedframework,effectiveaccountingproceduresandadequatesegregationofdutiestoensureanacceptable levelof risk.Thesecontrolsaremonitoredthroughout theentityandallemployeesarerequiredtomaintainthehighestethicalstandardsinensuringtheentity’sbusinessisconductedinamannerthatinallreasonablecircumstancesisabovereproach.Thefocusofriskmanagementintheentityisonidentifying,assessing,managingandmonitoringallknownformsofriskacrosstheentity.Whileoperatingriskcannotbefullyeliminated,theentityendeavourstominimise itbyensuringthatappropriate infrastructure,controls,systemsandethicalbehaviourareappliedandmanagedwithinpredeterminedproceduresandconstraints.

Themembersareoftheopinion,basedontheinformationandexplanationsgivenbymanagement,thatthesystemofinternalcontrolprovidesreasonableassurancethatthefinancialrecordsmaybereliedonforthepreparationofthefinancialstatements.However,anysystemofinternalfinancialcontrolcanprovideonlyreasonable,andnotabsolute,assuranceagainstmaterialmisstatementordeficit.

Theentity isdependentontheDepartmentofCommunicationsforcontinuedfundingofoperations.ThefinancialstatementsarepreparedonthebasisthattheentityisagoingconcernandthattheDepartmentofCommunicationshasneithertheintentionnortheneedtoliquidateorcurtailmateriallythescaleoftheentity.

TheAccountingAuthorityisprimarilyresponsibleforthefinancialaffairsoftheentityandtheseareauditedbytheentity’sexternalauditors.

Thefinancialstatementssetoutonpages69to103,whichhavebeenpreparedonthegoingconcernbasis,wereapprovedbytheAccountingAuthorityon29May2018andweresignedonitsbehalfby:

_____________________________ _____________________________Mr S Nene Mrs NFT MpumlwanaChiefExecutiveOfficer(Acting) ChairpersonofCouncil


Thememberssubmittheirreportfortheyearended31March2018.

1) Legal form and nature of business

TheFilmandPublicationBoardisapublicentitywhichwasestablishedintermsoftheFilmandPublicationsActandcommencedbusinessinMarch1998.Itislistedasaschedule3AintermsofthePublicFinanceManagementActof1999.TheExecutiveAuthorityistheDepartmentofCommunications.

2) Review of activities

Main business and operations

TheFilmandPublicationBoardregulates,bymeansofclassification,agerestrictionsandconsumeradvice,thecre-ation,production,possessionanddistributionoffilms,computergamesandcertainpublicationsto:• Enableadultstomakeinformedviewing,reading,andgamingchoices,bothforthemselvesandforthechildren

intheircare,and• Protect children from exposure to disturbing and harmful materials and from premature exposure to adult

experiences,and• Contribute to the protection of children from sexual abuse and exploitation in pornographic films, computer

games,publicationsandontheinternet.

3) Results for the year

Thefinancialoperatingresultsfortheperiodweresatisfactory.TheFilmandPublicationBoardrecordedanetsurplusofR7466311(2017:surplusR3840748)

4) Going concern

Wedrawattentiontothefactthatat31March2018,theentityhadanaccumulatedsurplus(deficit)ofR22300980(R1483467031March2017)andthattheentity’stotalassetsexceeditsliabilitiesbyR22300980(R1483467031March2017).

Thefinancialstatementshavebeenpreparedonthebasisofaccountingpoliciesapplicabletoagoingconcern.Thisbasispresumesthatfundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettlementofliabilities,contingentobligationsandcommitmentswilloccurintheordinarycourseofbusiness.

5) Funding

TheFilmandPublicationBoardreceivedaGovernmentGrantofR91684000fortheperiodended31March2018andR86472000fortheyearended31March2017.


6) Subsequent events

MsNthabisengMaywasappointedActingCOOwitheffectfromApril2018andMsLesegoMogoatlheActingCFOwitheffectfromMay2018.SubsequentlyanewExecutiveCommitteewasappointedinJuly.

7) Accounting policies

ThefinancialstatementshavebeenpreparedinaccordancewiththeStandardsofGenerallyRecognisedAccountingPractices(GRAP),includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.

Thefinancialstatementssetoutonpages69to103,whichhavebeenpreparedonthegoingconcernbasis,wereapprovedbytheAccountingAuthorityon29May2018andweresignedonitsbehalfby:

_____________________________ _____________________________Mr S Nene Mrs NFT MpumlwanaChiefExecutiveOfficer(Acting) ChairpersonofCouncil


FiguresinRand Note(s) 2018 2017

(Restated)

AssetsCurrent AssetsReceivablesfromexchangetransactions 4 3910520 3084065

Cashandcashequivalents 3 15297829 8554586

19 208 349 11 638 651

Non-Current AssetsProperty,plantandequipment 5 7642661 8782162

Intangibleassets 6 10401165 7057248

18 043 826 15 839 410

Total Assets 37 252 175 27 478 061

Liabilities

Current LiabilitiesFinanceleaseobligation 7 669708 827801

Payablesfromexchangetransactions 8 7945300 7873010

Provisions 9 6336184 3272872

14 951 192 11 973 683

Non-Current LiabilitiesFinanceleaseobligation 7 - 669708

Total Liabilities 14 951 192 12 643 391

Net Assets 22 300 983 14 834 670

Accumulatedsurplus 22 300 980 14 834 670

70 FILM AND PUBLICATION BOARDFILM AND PUBLICATION BOARD

FiguresinRand Note(s) 2018 2017

(Restated)Revenue

Revenue from non-exchange transactions

Transfersfromothergovernmententities 10 91684000 86472000

Revenue from exchange transactions

Regulationfees 10 7741329 6718708

Otherincome 11 9875 79986

Interestreceived–investment 12 863674 1062566

Total revenue from exchange transactions 8 614 878 7 861 260

Total revenue 100 298 878 94 333 260

Expenditure

Personnel 13 (53241885) (49896726)

Depreciationandamortisationexpenses (2452419) (2668576)

Financecosts 15 (187705) (319784)

Leaserentalsonoperatinglease 14 (5859249) (4855261)

Administrative 14 (31091309) (32752165)

Total expenditure (92 832 567) (90 492 512)

Surplus for the period 7 466 311 3 840 748

71ANNUAL REPORT 2017/18ANNUAL REPORT 2017/18

FiguresinRandAccumulated

surplus/(deficit)Total net

assets

Balance at 31 March 2016 10 993 922 10 993 922

Surplusfortheperiod 3840748 3840748

Totalchanges 3840748 3840748

Openingbalanceaspreviouslyreported 15311742 15311742

Adjustments

Prioryearadjustments (477073) (477073)

Restated* Balance at 31 March 2017 as restated* 14 834 669 14 834 669

Surplusfortheperiod 7466311 7466311

Totalchanges 7466311 7466311

Balance at 31 March 2018 22 300 980 22 300 980


FiguresinRand Note(s) 2018 2017(Restated)

Cash flows from operating activities

Receipts

Grants 91684000 86472000

Interestreceived 863674 1062566

Otherreceipts - 31056

Regulationfees 6914874 5697600

99462548 93263222

Payments

Employeecosts (56782270) (50268496)

Suppliers (30274596) (31792982)

Otherexpenses (1686) -

(87058552) (82061478)

Net cash flows from operating activities 17 12 403 996 11 201 744

Cash flows from investing activities

Purchaseofplantandequipment 5 (1164225) (3229028)

ProceedsfromsaleofInfrastructure,plantandequipment 5 25530 174863

Purchaseofintangibleassets 6 (3506551) (5441240)

Net cash flows from investing activities (4 645 246) (8 495 405)

Cash flows from financing activities

Financeleasepayments (827801) (709369)

Financecost (187705) (319784)

Net cash flows from financing activities (1 015 506) (1 029 153)

Net increase/(decrease) in cash and cash equivalents 6 743 244 1 677 186

Cashandcashequivalentsatthebeginningoftheperiod 8554586 6877399

Cash and cash equivalents at the end of the period 3 15 297 830 8 554 585


Budget on Cash Basis

Figures in Rand Approvedbudget Adjustments Final Budget

Actual Amounts on Comparable

Basis

Differencebetween FinalBudget and

Actual

Reference

Statement of Financial PerformanceRevenueRevenue from exchangeTransactionsRegulationfees 7206431 810000 8016431 7741329 (275102) (a)

Otherrevenue - - - 9875 9875 (b)

Interestreceived–investment 626622 - 626622 863674 237052 (c)

Total revenue from exchange transactions

7833053 810000 8643053 8614878 (28175)

Revenue from non-exchange transactionsTransfer revenueTransfersfromothergovernmententities 91684000 - 91684000 91684000 -

Total revenue 99517053 810000 100327053 100298878 (28175)

ExpenditurePersonnel (54633645) 1216817 (53416828) (53241885) 174943 (d)

Depreciationandamortisationexpenses - - - (2452419) (2452419)

Financecosts (6672148) 300000 (6372148) (187705) 6184443

Leaserentalsonoperatinglease - - - (5859249) (5859249)

Administrative (38211260) (2326817) (40538077) (31091309) 9446768 (d)

Total expenditure (99517053) (810000) (100327053) (92832567) 7494486

Surplus before taxation - - - 7466311 7466311

Surplus for the year from continuing operations

- - - 7466311 7466311

Actual Amount on Comparable - - - 7466311 7466311

Basis as Presented in the Budget and Actual Comparative Statement

Thebudgetfor2017/2018financialyearwasapprovedandpreparedontheaccrualbasis(exceptfordepreciationandamortisation)andalltransactionswereaccountedforonaccrualbasis.TransfersreceivedduringthecurrentfinancialyearwerefromtheDepartmentofCommunicationsandentitiesincludedinthebudgetweredisclosedinNote23.

a) Mid-termrevenueprojectionsindicatedanincreaseofregulationfeestobecollectedfortheremainderoftheyear.Budgetwas,therefore,adjustedupwards.Thisismainlyduetoanincreaseofcontentdistributedonlineandnotthroughtraditionalmeans.

b) Otherrevenuenotbudgetedforduetonotbeingmaterialanditsadhocnaturec) Additionalinterestrevenuegeneratedduetoproperplanningofthesurpluscashandinvestmentdecisionthat

aredoneontime.ThesurplusfundsareinvestedintheCPDaccountandAbsacallaccountd) Admincostisduetothefactthatmanagementimplementedcostcontainmentmeasuresonlineitemsliketravel,

workshopsanddatacosts.


1. Presentation of financial statements

ThefinancialstatementshavebeenpreparedinaccordancewiththeStandardsofGenerallyRecognisedAccountingPractice(GRAP),includinganyinterpretations,guidelinesanddirectivesissuedbytheAccountingStandardsBoard.

These financial statements have been prepared on an accrual basis of accounting and are in accordancewithhistoricalcostconventionunlessspecifiedotherwise.TheyarepresentedinSouthAfricanRand.

Asummaryofthesignificantaccountingpolicies,whichhavebeenconsistentlyapplied,isdisclosedbelow.

1.1 Significant judgments and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affecttheamountsrepresented inthefinancialstatementsandrelateddisclosures.Useofavailable informationandtheapplicationofjudgmentisinherentintheformationofestimates.Actualresultsinthefuturecoulddifferfromtheseestimates whichmay bematerial to the financial statements. Significant judgmentsmade relates to: Useful lifeestimations,provisionsandcontingentliabilities

Trade receivables and receivables

The entity assesses its trade receivables and receivables for impairment at the endof each reportingperiod. Indeterminingwhetheranimpairmentlossshouldberecordedinsurplusordeficit,thesurplusmakesjudgmentsastowhetherthereisobservabledataindicatingameasurabledecreaseintheestimatedfuturecashflowsfromafinancialasset.

Theimpairmentfortradereceivablesandreceivablesiscalculatedonaportfoliobasis,basedonhistoricallossratios,adjustedfornationalandindustry-specificeconomicconditionsandother indicatorspresentatthereportingdatethatcorrelatewithdefaultsontheportfolio.Theseannuallossratiosareappliedtoloanbalancesintheportfolioandscaledtotheestimatedlossemergenceperiod.

Impairment testing

Property,plantandequipmentandIntangibleassetsareconsideredforimpairmentifthereisareasontobelievethatanimpairmentmaybenecessary.

Thefuturecashflowsexpectedtobegeneratedbytheassetsareprojectedtakingintoaccountmarketconditionsandtheexpectedusefullivesoftheassets.Thepresentvalueofthesecashflows,determinedusinganappropriatediscountrate,iscomparedtothecurrentcarryingvalueand,iflower,theassetsareimpairedtothepresentvalue.

Provisions

Provisionswere raised andmanagement determined an estimate based on the information available. Additionaldisclosureoftheseestimatesofprovisionsisincludedinnote9-Provisions.


Going Concern Assumption

TheAnnualFinancialStatementshavebeenpreparedonagoingconcernbasis.

Offsetting

Assets,liabilities,revenuesandexpenseshavenotbeenoffsetexceptwhenoffsettingisrequiredorpermittedbyaStandardofGRAP.

1.2 Property, plant and equipment

Property,plantandequipmentaretangiblenon-currentassets(includinginfrastructureassets)thatareheldforuseintheproductionorsupplyofgoodsorservices,rentaltoothers,orforadministrativepurposes,andareexpectedtobeusedduringmorethanoneperiod.

Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetwhen:• itisprobablethatfutureeconomicbenefitsorservicepotentialassociatedwiththeitemwillflowtotheentity;and• thecostofthe i temcanbemeasuredreliably.

Property,plantandequipmentisinitiallymeasuredatcost.

Thecostofanitemofproperty,plantandequipmentisthepurchasepriceandothercostsattributabletobringtheassettothelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement.Tradediscountsandrebatesaredeductedinarrivingatthecost.

Whereanassetisacquiredthroughanon-exchangetransaction,itscostisitsfairvalueasatdateofacquisition.

Wherean itemofproperty,plantandequipment isacquired inexchange foranon-monetaryassetormonetaryassets,oracombinationofmonetaryandnon-monetaryassets,theassetacquiredisinitiallymeasuredatfairvalue(thecost).Iftheacquireditem’sfairvaluewasnotdeterminable,itsdeemedcostisthecarryingamountoftheasset(s)givenup.

When significant components of an item of property, plant and equipment have different useful lives, they areaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.

Costs includecosts incurred initially toacquireorconstructan itemofproperty,plantandequipmentandcostsincurredsubsequently toaddto, replacepartof,orservice it. Ifa replacementcost is recognised in thecarryingamountofanitemofproperty,plantandequipment,thecarryingamountofthereplacedpartisderecognised.

Recognitionofcostsinthecarryingamountofanitemofproperty,plantandequipmentceaseswhentheitemisinthelocationandconditionnecessaryforittobecapableofoperatinginthemannerintendedbymanagement.

Property,plantandequipmentiscarriedatcostlessaccumulateddepreciationandanyimpairmentlosses.


1.2 Property, plant and equipment (continued)

Property, plant andequipment aredepreciatedon the straight-linebasisover their expecteduseful lives to theirestimatedresidualvalue.

Property,plantandequipmentiscarriedatcostlessaccumulateddepreciationandanyimpairmentlosses.Theusefullivesofitemsofproperty,plantandequipmenthavebeenassessedasfollows:

Item Average useful lifeFurnitureandfittings 12-20 years

Motor vehicles 5 years

Officeequipment 4-15 years

Computerequipment 4-8 years

Leaseholdimprovements 2-10 years

Leasedassets 3-5 years

Thedepreciableamountofanassetisallocatedonasystematicbasisoveritsusefullife.

Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemisdepreciatedseparately.

Theentityassessesateachreportingdatewhetherthereisanyindicationthattheentityexpectationsabouttheusefullifeofanassethavechangedsincetheprecedingreportingdate.Ifanysuchindicationexists,theentityrevisestheexpectedusefullifeand/orresidualvalueaccordingly.Thechangeisaccountedforasachangeinanaccountingestimate.

Thedepreciationchargeforeachperiodisrecognisedinsurplusordeficitunlessitisincludedinthecarryingamountofanotherasset.

Itemsofproperty,plantandequipmentarederecognisedwhentheassetisdisposedoforwhentherearenofurthereconomicbenefitsorservicepotentialexpectedfromtheuseoftheasset.

Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisincludedinsurplusordeficitwhentheitemisderecognised.Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthenetdisposalproceeds,ifany,andthecarryingamountoftheitem.

1.3 Intangible assets

Anassetisidentifiableifiteither:• isseparable,i.e.iscapableofbeingseparatedordividedfromanentityandsold,transferred,licensed,rented

orexchanged,eitherindividuallyortogetherwitharelatedcontract,identifiableassetsorliability,regardlessofwhethertheentityintendstodoso;or

• arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferableorseparablefromtheentityorfromotherrightsandobligations.


Abindingarrangementdescribesanarrangementthatconferssimilarrightsandobligationsonthepartiestoitasifitwereintheformofacontract.

Anintangibleassetisrecognisedwhen:• itisprobablethattheexpectedfutureeconomicbenefitsorservicepotentialthatareattributabletotheassetwill

flowtotheentity;and• thecostorfairvalueoftheassetcanbemeasuredreliably.

Theentityassessestheprobabilityofexpectedfutureeconomicbenefitsorservicepotentialusingreasonableandsupportableassumptionsthatrepresentmanagement’sbestestimateofthesetofeconomicconditionsthatwillexistovertheusefullifeoftheasset.

Whereanintangibleassetisacquiredthroughanon-exchangetransaction,itsinitialcostatthedateofacquisitionismeasuredatitsfairvalueasatthatdate.

Expenditureonresearch (orontheresearchphaseofan internalproject) isrecognisedasanexpensewhen it isincurred.An intangible asset arising fromdevelopment (or from thedevelopmentphaseof an internalproject) isrecognisedwhen:• itistechnicallyfeasibletocompletetheassetsothatitwillbeavailableforuseorsale.• thereisanintentiontocompleteanduseorsellit.• thereisanabilitytouseorsellit.• itwillgenerateprobablefutureeconomicbenefitsorservicepotential.• thereareavailabletechnical,financialandotherresourcestocompletethedevelopmentandtouseorsellthe

asset.• theexpenditureattributabletotheassetduringitsdevelopmentcanbemeasuredreliably.

An intangibleasset is regardedashavingan indefiniteuseful lifewhen,basedonall relevant factors, there isnoforeseeable limittotheperiodoverwhichtheasset isexpectedtogeneratenetcashinflowsorservicepotential.Amortisationisnotprovidedfortheseintangibleassets,buttheyaretestedforimpairmentannuallyandwheneverthereisanindicationthattheassetmaybeimpaired.Forallotherintangibleassetsamortisationisprovidedonastraight-linebasisovertheirusefullife.

Theamortisationperiodandtheamortisationmethodforintangibleassetsarereviewedateachreportingdate.

Reassessingtheusefullifeofanintangibleassetwithafiniteusefullifeafteritwasclassifiedasindefiniteisanindicatorthattheassetmaybeimpaired.Asaresulttheassetistestedforimpairmentandtheremainingcarryingamountisamortisedoveritsusefullife.

Internallygeneratedbrands,mastheads,publishingtitles,customerlistsanditemssimilarinsubstancearenotrecognisedasintangibleassets.

Internallygeneratedgoodwillisnotrecognisedasanintangibleasset.


1.3 Intangible assets (continued)

Amortisation isprovided towritedown the intangibleassets,onastraight linebasis, to their residualvaluesasfollows:

Item Depreciation method Average useful lifeComputersoftware Straightline 3-12years

Theentitydisclosesrelevantinformationrelatingtoassetsunderconstructionordevelopment, inthenotestothefinancialstatements(seenote5).

Intangibleassetsarederecognised:• ondisposal;or• whennofutureeconomicbenefitsorservicepotentialareexpectedfromtheiruseordisposal.

1.4 Financial instruments classification

Theentityclassifiesfinancialassetsandfinancialliabilitiesintothefollowingcategories:• Held-to-maturityinvestment• Loansandreceivables• Available-for-salefinancialassets

Classificationdependsonthepurposeforwhichthefinancialinstrumentswereobtained/incurredandtakesplaceatinitialrecognition.Classificationisre-assessedonanannualbasis,exceptforderivativesandfinancialassetsdesignatedasatfairvaluethroughsurplusordeficit,whichshallnotbeclassifiedoutofthefairvaluethroughsurplusordeficitcategory.

Initial recognition and measurement

Financial instrumentsarerecognised initiallywhentheentitybecomesapartytothecontractualprovisionsoftheinstruments.

The entity classifies financial instruments, or their component parts, on initial recognition as a financial asset, afinancialliabilityoranequityinstrumentinaccordancewiththesubstanceofthecontractualarrangement.

Financial instrumentsaremeasuredinitiallyatfairvalue,exceptforequity investmentsforwhichafairvalueisnotdeterminable,whicharemeasuredatcostandareclassifiedasavailable-for-salefinancialassets.

Forfinancialinstrumentswhicharenotatfairvaluethroughsurplusordeficit,transactioncostsareincludedintheinitialmeasurementoftheinstrument.

Subsequent measurement

Loans and receivables are subsequently measured at amortised cost, using the effective interest method, lessaccumulatedimpairmentlosses.


Held-to-maturityinvestmentsaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessaccumulatedimpairmentlosses.

Available-for-salefinancialassetsaresubsequentlymeasuredatfairvalue.Thisexcludesequityinvestmentsforwhichafairvalueisnotdeterminable,whicharemeasuredatcostlessaccumulatedimpairmentlosses.

Gains and losses arising from changes in fair value are recognised in equity until the asset is disposed of ordeterminedtobeimpaired.Interestonavailable-for-salefinancialassetscalculatedusingtheeffectiveinterestmethodisrecognisedinsurplusordeficitaspartofotherincome.Dividendsreceivedonavailable-for-saleequityinstrumentsarerecognisedinsurplusordeficitaspartofotherincomewhentheentity’srighttoreceivepaymentisestablished.

Changesinfairvalueofavailable-for-salefinancialassetsdenominatedinaforeigncurrencyareanalysedbetweentranslationdifferencesresultingfromchangesinamortisedcostandotherchangesinthecarryingamount.Translationdifferencesonmonetary itemsare recognised insurplusordeficit,while translationdifferencesonnon-monetaryitemsarerecognisedinequity.

Financialliabilitiesatamortisedcostaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod.

Trade and other receivables

Tradereceivablesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinsurplusordeficitwhenthereisobjectiveevidencethattheassetisimpaired.Significantfinancialdifficultiesofthedebtor,probability that thedebtorwill enterbankruptcyor financial reorganisation, anddefault ordelinquency inpayments(morethan30daysoverdue)areconsideredindicatorsthatthetradereceivableisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.

Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountofthedeficitisrecognisedinsurplusordeficitwithinoperatingexpenses.Whenatradereceivable isuncollectible, it iswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpensesinsurplusordeficit.

Tradeandotherreceivablesareclassifiedasloansandreceivables.

Payables from exchange transactions

Tradepayables are initiallymeasuredat fair value, andare subsequentlymeasuredat amortisedcost, using theeffectiveinterestratemethod.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquidinvestmentsthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchangesinvalue.Theseareinitiallyandsubsequentlyrecordedatfairvalue.


1.5 Leases

Alease isclassifiedasafinance lease if it transferssubstantiallyall therisksandrewards incidental toownership.Aleaseisclassifiedasanoperatingleaseif itdoesnottransfersubstantiallyalltherisksandrewardsincidentaltoownership.

Finance leases – lessee

Financeleasesarerecognisedasassetsandliabilitiesinthestatementoffinancialpositionatamountsequaltothefairvalueoftheleasedpropertyor,iflower,thepresentvalueoftheminimumleasepayments.Thecorrespondingliabilitytothelessorisincludedinthestatementoffinancialpositionasafinanceleaseobligation.

Thediscountrateusedincalculatingthepresentvalueoftheminimumleasepaymentsistheinterestrateimplicitinthelease.

Minimumleasepaymentsareapportionedbetweenthefinancechargeandreductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateoftheremainingbalanceoftheliability.

Anycontingentrentsareexpensedintheperiodinwhichtheyareincurred.

Operating leases – lessee

Operatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm.Thedifferencebetweentheamountsrecognisedasanexpenseandthecontractualpaymentsarerecognisedasanoperatingleaseassetorliability.

1.6 Employee benefits

Short-term employee benefits

Thecostofshort-termemployeebenefits,(thosepayablewithin12monthsaftertheserviceisrendered,suchaspaidvacationleaveandsickleave,bonusesandnon-monetarybenefitssuchasmedicalcare),arerecognisedintheperiodinwhichtheserviceisrenderedandarenotdiscounted.

Defined contribution plans

Paymentstodefinedcontributionretirementbenefitplansarechargedasanexpenseastheyfalldue.

ThedefinedbenefitplanisapensionfundunderwhichtheFPBpaysfixedmonthlycontributionstoaseparateentitythatwillhavelegalorconstructiveobligationstopayfurthercontributionifthefunddoesnotholdsufficientassetstopayalltheemployeebenefitsrelatingtotheemployeeserviceinthecurrentandpriorperiod.Oncethecontributionispaid,theFPBhasnofurtherobligations.


1.7 Provisions and contingencies

Provisionsarerecognisedwhen:• theentityhasapresentobligationasaresultofapastevent;• itisprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredto

settletheobligation;and• areliableestimatecanbemadeoftheobligation.

Theamountofaprovision is thebestestimateof theexpenditureexpected tobe required tosettle thepresentobligationatthereportingdate.

Wheretheeffectoftimevalueofmoneyismaterial,theamountofaprovisionisthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligation.

Wheresomeoralloftheexpenditurerequiredtosettleaprovisionisexpectedtobereimbursedbyanotherparty,thereimbursement isrecognisedwhen,andonlywhen, it isvirtuallycertainthatreimbursementwillbereceivediftheentitysettlestheobligation.Thereimbursementistreatedasaseparateasset.Theamountrecognisedforthereimbursementdoesnotexceedtheamountoftheprovision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions arereversedifitisnolongerprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredtosettletheobligation.

A provision is used only for expenditures for which the provision was originally recognised. Provisions are notrecognisedforfutureoperatingsurplus(deficit).

Contingentassetsandcontingentliabilitiesarenotrecognised.Contingenciesaredisclosedinnote21.

1.8 Revenue from exchange transactions

Revenueisthegrossinflowofeconomicbenefitsorservicepotentialduringthereportingperiodwhenthoseinflowsresultinanincreaseinnetassets,otherthanincreasesrelatingtocontributionsfromowners.

Anexchangetransaction isoneinwhichtheentityreceivesassetsorservices,orhas liabilitiesextinguished,anddirectlygivesapproximatelyequalvalue(primarilyintheformofgoods,servicesoruseofassets)totheotherpartyinexchange.

Fairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.

Measurement

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netoftradediscountsandvolumerebates.


1.8 Revenue from exchange transactions (continued)

Sale of goods

Revenuefromthesaleofgoodsisrecognisedwhenallthefollowingconditionshavebeensatisfied:• theentityhastransferredtothepurchaserthesignificantrisksandrewardsofownershipofthegoods;• theentityretainsneithercontinuingmanagerialinvolvementtothedegreeusuallyassociatedwithownershipnor

effectivecontroloverthegoodssold;• theamountofrevenuecanbemeasuredreliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;

and• thecostsincurredortobeincurredinrespectofthetransactioncanbemeasuredreliably.

Rendering of services

Whentheoutcomeofatransactioninvolvingtherenderingofservicescanbeestimatedreliably,revenueassociatedwiththetransactionisrecognisedbyreferencetothestageofcompletionofthetransactionatthereportingdate.Theoutcomeofatransactioncanbeestimatedreliablywhenallthefollowingconditionsaresatisfied:• theamountofrevenuecanbemeasuredreliably;• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity;• thestageofcompletionofthetransactionatthereportingdatecanbemeasuredreliably;and• thecostsincurredforthetransactionandthecoststocompletethetransactioncanbemeasuredreliably.

Whenservicesareperformedbyanindeterminatenumberofactsoveraspecifiedtimeframe,revenueisrecognisedonastraight-linebasisoverthespecifiedtimeframeunlessthereisevidencethatsomeothermethodbetterrepresentsthestageofcompletion.Whenaspecificactismuchmoresignificantthananyotheracts,therecognitionofrevenueispostponeduntilthesignificantactisexecuted.

When theoutcomeof the transaction involving the renderingofservicescannotbeestimated reliably, revenue isrecognisedonlytotheextentoftheexpensesrecognisedthatarerecoverable.

Servicerevenueisrecognisedbyreferencetothestageofcompletionofthetransactionatthereportingdate.Stageofcompletionisdeterminedbyservicesperformedtodateasapercentageoftotalservicestobeperformed.

Interest

Interestisrecognised,insurplusordeficit,usingtheeffectiveinterestratemethod.

1.9 Revenue from non-exchange transactions

Non-exchangetransactionsaredefinedastransactionswheretheentityreceivesvaluefromanotherentitywithoutdirectlygivingapproximatelyequalvalueinexchange.


Revenueisthegrossinflowofeconomicbenefitsorservicepotentialduringthereportingperiodwhenthoseinflowsresultinanincreaseinnetassets,otherthanincreasesrelatingtocontributionsfromowners.

Fairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.

Measurement

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netoftradediscountsandvolumerebates.

Government grants

Governmentgrantsarerecognisedasrevenuewhen:• itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity,• theamountoftherevenuecanbemeasuredreliably,and• totheextentthattherehasbeencompliancewithanyrestrictionsassociatedwiththegrant.

Theentityassessesthedegreeofcertaintyattachedtotheflowoffutureeconomicbenefitsorservicepotentialonthebasisoftheavailableevidence.Certaingrantspayablebyonelevelofgovernmenttoanotheraresubjecttotheavailabilityoffunds.Revenuefromthesegrantsisrecognisedonlywhenit isprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowtotheentity.Anannouncementatthebeginningofafinancialyearthatgrantsmaybeavailableforqualifyingentitiesinaccordancewithanagreedprogrammemaynotbesufficientevidenceoftheprobabilityoftheflow.Revenueisthenrecognisedonlyonceevidenceoftheprobabilityoftheflowbecomesavailable.

Restrictionsongovernmentgrantsmayresultinsuchrevenuebeingrecognisedonatimeproportionbasis.Wherethereisnorestrictionontheperiod,suchrevenueisrecognisedonreceiptorwhentheActbecomeseffective,which-everisearlier.

Whengovernmentremitgrantsonareimbursementbasis,revenueisrecognisedwhenthequalifyingexpensehasbeenincurredandtotheextentthatanyotherrestrictionshavebeencompliedwith.

1.10 Borrowing costs

Borrowingcostsare interestandotherexpensesincurredbyanentity inconnectionwiththeborrowingoffunds.Borrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

1.11 Comparative figures

Wherenecessary,comparativefigureshavebeenreclassifiedtoconformtochangesinpresentationinthecurrentyear.


1.12 Fruitless and wasteful expenditure

Fruitlessexpendituremeansexpenditurewhichwasmadeinvainandwouldhavebeenavoidedhadreasonablecarebeenexercised.

Allexpenditurerelatingtofruitlessandwastefulexpenditureisrecognisedasanexpenseinthestatementoffinancialperformance in the year that theexpenditurewas incurred.Theexpenditure is classified in accordancewith thenatureoftheexpense,andwhererecovered,itissubsequentlyaccountedforasrevenueinthestatementoffinancialperformance.

1.13 Irregular expenditure

IrregularexpenditureasdefinedinSection1ofthePFMAisexpenditureotherthanunauthorisedexpenditure,incurredincontraventionoforthatisnotinaccordancewitharequirementofanyapplicablelegislation,including-a) thisAct;orb) theStateTenderBoardAct,1968(ActNo.86of1968),oranyregulationsmadeintermsoftheAct;orc) anyprovinciallegislationprovidingforprocurementproceduresinthatprovincialgovernment.

NationalTreasurypracticenoteno.4of2008/2009,whichwasissuedintermsofsections76(1)to76(4)ofthePFMA,requiresthefollowing(effectivefrom1April2008):

Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialandwhichwascondonedbeforeyearendand/orbeforefinalisationofthefinancialstatementsmustberecordedappropriatelyintheirregularexpenditureregister.Insuchaninstance,nofurtheractionisrequiredwiththeexceptionofupdatingthenotetothefinancialstatements.

Irregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandforwhichcondonementisbeingawaitedatyearendmustberecordedintheirregularexpenditureregister.Nofurtheractionisrequiredwiththeexceptionofupdatingthenotetothefinancialstatements.

Whereirregularexpenditurewasincurredinthepreviousfinancialyearandisonlycondonedinthefollowingfinancialyear,theregisterandthedisclosurenotetothefinancialstatementsmustbeupdatedwiththeamountcondoned.

IrregularexpenditurethatwasincurredandidentifiedduringthecurrentfinancialyearandwhichwasnotcondonedbyNationalTreasuryortherelevantauthoritymustberecordedappropriatelyintheirregularexpenditureregister.Ifliabilityfortheirregularexpenditurecanbeattributedtoaperson,adebtaccountmustbecreatedifsuchapersonisliableinlaw.

Immediate stepsmust thereafter be taken to recover the amount from thepersonconcerned. If recovery is notpossible,theAccountingOfficerorAccountingAuthoritymaywriteofftheamountasdebtimpairmentanddisclosesuchintherelevantnotetothefinancialstatements.Theirregularexpenditureregistermustbeupdatedaccordingly.Iftheirregularexpenditurehasnotbeencondonedandnopersonisliableinlaw,theexpenditurerelatedtheretomustremainagainsttherelevantprogramme/expenditureitem,bedisclosedassuchinthenotetothefinancialstatementsandupdatedaccordinglyintheirregularexpenditureregister.


1.14 Budget information

Entityaretypicallysubjecttobudgetarylimitsintheformofappropriationsorbudgetauthorisations(orequivalent),whicharegiveneffectthroughauthorisinglegislation,appropriationorsimilar.

Generalpurposefinancialreportingbyentityshallprovideinformationonwhetherresourceswereobtainedandusedinaccordancewiththelegallyadoptedbudget.

Theapprovedbudgetispreparedonaaccrualbasisandpresentedbyeconomicclassificationlinkedtoperformanceoutcomeobjectives.

Theapprovedbudgetcoversthefiscalperiodfrom1April2017to31March2018.

Thebudgetfortheeconomicentityincludesalltheentitiesapprovedbudgetsunderitscontrol.

The financial statements and thebudget areon the samebasisof accounting, therefore a comparisonwith thebudgetedamountsforthereportingperiodhavebeenincludedinthestatementofcomparisonofbudgetandactualamounts.

1.15 Related parties

Arelatedpartyisapersonoranentitywiththeabilitytocontrolorjointlycontroltheotherparty,orexercisesignificantinfluenceovertheotherparty,orviceversa,oranentitythatissubjecttocommoncontrol,orjointcontrol.

Control is thepower togovern the financial andoperatingpoliciesof anentity soas toobtainbenefits from itsactivities.

Jointcontrol istheagreedsharingofcontroloveranactivitybyabindingarrangement,andexistsonlywhenthestrategicfinancialandoperatingdecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol(theventurers).

Related-partytransactionisatransferofresources,servicesorobligationsbetweenthereportingentityandarelatedparty,regardlessofwhetherapriceischarged.

Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsofanentity,butisnotcontroloverthosepolicies.

Managementarethosepersonsresponsibleforplanning,directingandcontrollingtheactivitiesoftheentity,includingthosechargedwiththegovernanceoftheentityinaccordancewithlegislation,ininstanceswheretheyarerequiredtoperformsuchfunctions.

Closemembersof the familyofapersonareconsidered tobe those familymemberswhomaybeexpected toinfluence,orbeinfluencedby,thatmanagementintheirdealingswiththeentity.


1.15 Related parties (continued)

Theentityisexemptfromdisclosurerequirementsinrelationtorelatedpartytransactionsifthattransactionoccurswithinnormalsupplierand/orclient/recipientrelationshipsontermsandconditionsnomoreorlessfavourablethanthosewhichit isreasonabletoexpecttheentitytohaveadoptedifdealingwiththat individualentityorpersoninthesamecircumstancesandtermsandconditionsarewithinthenormaloperatingparametersestablishedbythatreportingentity’slegalmandate.

Wheretheentityisexemptfromthedisclosuresinaccordancewiththeabove,theentitydisclosesnarrativeinformationaboutthenatureofthetransactionsandtherelatedoutstandingbalances,toenableusersoftheentity’sfinancialstatementstounderstandtheeffectofrelated-partytransactionsonitsfinancialstatements.

2. New standards and interpretations

ThefollowingstandardsofGRAPhavebeenissuedbutarenotyeteffectivefortheyearended31March2016:

GRAP 20 – Related-Party DisclosuresThe objective of this Standard is to ensure that a reporting entity’s financial statements contain the disclosuresnecessarytodrawattentiontothepossibilitythatitsfinancialpositionandsurplusordeficitmayhavebeenaffectedbytheexistenceofrelatedpartiesandbytransactionsandoutstandingbalanceswithsuchparties.

GRAP 32 – Service Concession Arrangements: GrantorTheobjectiveofthisStandardistoprescribetheaccountingforserviceconcessionarrangementsbythegrantor,apublicsectorentity.

GRAP 34 – Separate Financial StatementsTheobjectiveofthisStandardistoprescribetheaccountinganddisclosurerequirementsforinvestmentsincontrolledentities,jointventuresandassociateswhenanentitypreparesseparatefinancialstatements.

GRAP 35 – Consolidated Financial StatementsTheobjectiveofthisStandardistoestablishprinciplesforthepresentationandpreparationofconsolidatedfinancialstatementswhenanentitycontrolsoneormoreotherentities.

GRAP 36 – Investments in Associates and Joint Ventures The objectiveofthisStandardistoprescribetheaccountingforinvestmentsinassociatesandjointventuresandtosetouttherequirementsfortheapplicationoftheequitymethodwhenaccountingforinvestmentsinassociatesandjointventures.

GRAP 37 – Joint ArrangementsTheobjective of thisStandard is to establishprinciples for financial reportingby entities that have an interest inarrangementsthatarecontrolledjointly(i.e.jointarrangements).


GRAP 38 – Disclosure of Interests in Other EntitiesTheobjectiveofthisStandardistorequireanentitytodiscloseinformationthatenablesusersofitsfinancialstatementstoevaluate.

GRAP 108 – Statutory ReceivablesTheobjectiveofthisStandardistoprescribeaccountingrequirementsfortherecognition,measurement,presentationanddisclosureofstatutoryreceivables.

GRAP 109 – Accounting by Principals and AgentsTheobjectiveof thisStandard is tooutlineprinciples tobeusedby an entity to assesswhether it is party to aprincipal-agentarrangement,andwhetheritisaprincipaloranagentinundertakingtransactionsintermsofsuchanarrangement.

GRAP 110 – Living and Non-living ResourcesTheobjectiveofthisStandardistoprescribethe:

- Recognition,measurement,presentationanddisclosurerequirementsforlivingresources;and- Disclosurerequirementsfornon-livingresources.


FiguresinRand 2018 2017(Restated)

3. Cash and cash equivalentsCashandcashequivalentsconsistof:

Cashonhand 4118 5937

Bankbalances 15238573 5709743

Short-termdeposits 55138 2838906

15 297 829 8 554 586

Current year cash andcash equivalentsbalancewill be used to finance commitmentsdisclosed in note28duringthe2017/2018financialyear.

4. Receivables from exchange transactionsTradedebtors 23316 114615

Debtors 3047250 2768209

Prepayments 839954 201241

3910520 3084065

Fair value of trade and other receivables

Tradeandotherreceivables 3 910 520 3 084 065

5. Property, plant and equipment

2018 2017

Cost Accumulateddepreciation

Carrying value


Carrying value

Furnitureandfittings 3522336 (1210163) 2312173 3522336 (1002809) 2519527

Motorvehicles 693291 (404061) 289230 693291 (294891) 398400

Officeequipment 2339153 (1157593) 1181560 1778562 (969349) 809213

Computerequipment 6351985 (3330744) 3021241 5768373 (2614458) 3153915

Leaseholdimprovements 1968866 (1696781) 272085 1968866 (1424695) 544171

Leased–officeequipment 363001 (363001) - 363001 (252084) 110917

Leased–motorvehicles 2038941 (1472569) 566372 2038941 (792922) 1246019

Total 17 277 573 (9 634 912) 7 642 661 16 133 370 (7 351 208) 8 782 162


Reconciliation of property, plant and equipment – 31 March 2018

Opening balance

Additions Disposals Depreciation Impairmentloss

Total

Furnitureandfittings 2519527 - - (207354) - 2312173

Motorvehicles 398400 - - (109170) - 289230

Officeequipment 809213 560591 - (188244) - 1181560

Computerequipment 3153915 603664 (13969) (722369) - 3021241

Leaseholdimprovements 544171 - - (272086) - 272085

Leased–officeequipment 110917 - - (110917) - -

Leased–motorvehicles 1246019 - - (679647) - 566372

8 782 162 1 164 255 (13 969) (2 289 787) - 7 642 661Reconciliation of property, plant and equipment – 31 March 2017

Opening balance

Additions Disposals Depreciation Total

Furnitureandfittings 2417329 318165 - (215967) 2519527

Motorvehicles 414353 193331 (104765) (104519) 398400

Officeequipment 616050 403261 - (210098) 809213

Computerequipment 1692885 2314271 (46187) (807054) 3153915

Leaseholdimprovements 816256 - - (272085) 544171

Leased–officeequipment 231917 - - (121000) 110917

Leased–motorvehicles 1925666 - - (679647) 1246019

8 114 456 3 229 028 (150 952) (2 410 370) 8 782 162

Other information

Therewerenoassetsheldassecurityatreportingdate.

6. Intangible assets

2018 2017


Carrying value


Carrying value

Computersoftware 12315602 (1914437) 10401165 8809052 (1751804) 7057248


6. Intangible assets (continued)

Reconciliation of intangible assets – 2018 Opening balance

Additions Amortisation Total

Computersoftware 7057248 3506551 (162634) 10401165

Reconciliation of intangible assets – 2017 Opening balance

Additions Amortisation Total

Computersoftware 1874214 5441240 (258206) 7057248

7. Finance lease obligation


Minimum lease payments due

-withinoneyear 721169 1015507

-insecondtofifthyearinclusive - 721169

721169 1736676

less:futurefinancecharges (51460) (239167)

Present value of minimum lease payments 669 709 1 497 509

Non-currentliabilities - 669708

Currentliabilities 669708 827801

669 708 1 497 509

TheFPBhasenteredintoanewleaseagreementfor11vehiclesforaperiodofthreeyearseffectivefrom05February2016,ending31January2019.Thetransactionhasbeentreatedasafinance leaseaspertherequirementsofGRAP13.Theleasecontractdoesnothaveanannualescalation.

TheFPBhasenteredintoaleaseagreementforsixphotocopiersforaperiodofthreeyears(36months)effectivefrom01March2015,ending28February2018.Thetransactionhasbeentreatedasafinance leaseaspertherequirementsofGRAP13.Theleasecontractdoesnothaveanannualescalation.

Interest ratesare fixedat thecontractdate.All leaseshave fixed repaymentsandnoarrangementshavebeenenteredintoforcontingentrent.


8. Payables from exchange transactions


Tradepayables 3223388 3572005

Paymentsreceivedinadvanced–contractinprocess 1976946 1940595

Debtorswithcreditbalance 1829208 1372608

Pension 453162 498960

PAYE - 100580

Salaryandwagescontrol - 142181

Medicalaid 250355 246081

Otheraccruals 212241 -

7 945 300 7 873 010

9. Provisions

Reconciliation of provisions – 2018 Opening balance

Additions Utilised during the year

Total

Performance bonuses 1 422 699 1 445 778 (1 367 208) 1 501 269

Leave pay 1 224 834 387 899 (463 157) 1 149 576

Litigation and claims 625 339 3 111 048 (51 048) 3 685 339

3 272 872 4 944 725 (1 881 413) 6 336 184

Reconciliation of provisions – 2017 Opening balance

Additions Utilised during the year

Total

Performancebonuses 1306202 1218785 (1102288) 1422699

Leavepay 1020609 298073 (93848) 1224834

Otherprovisions 97218 528121 - 625339

2 424 029 2 044 979 (1 196 136) 3 272 872

ProvisionforperformancebonusisbasedonbudgetedamountofR1501269asper2018/2019budget,paymentforbonusesisnotexpectedtoexceedthebudgetedamount.

Provisionraisedforoutstandingleavebalancesasat31March2018

ProvisionraisedforlitigationandclaimsrelatingtoanarbitrationawardgrantedagainsttheFPBregardingalabourrelationsmatter, the litigation for contractual disputesbetween FPBand service provider and the appeal by themembersofsocietyonthefilm(Inxeba)casethatiscurentlyawaitingthecourtjudgment.


10. Revenue


Regulationfees(classificationandregistrationfees) 7741329 6718708

Transfersfromothergovernmententities 91684000 86472000

99 425 329 93 190 708

The amount included in revenue arising from exchanges of goods or services are as follows:

Regulationfees(classificationandregistrationfees) 7741329 6718708

Otherrevenue 9875 79986

Interestreceived-investment 863674 1062566

8 614 878 7 861 260

The amount included in revenue arising from non-exchange transactions is as follows:

Taxation revenue

Transfer revenue

Transfersfromothergovernmententities 91684000 86472000

11. Other revenue

Saleoftenderdocuments 4500 11100

Otherincomeandrecoveries 5375 68886

9 875 79 986

12. Investment revenue

Interest revenue

Interestfrominvestmentaccounts 863674 1062566


13. Employees costs


SalariesandBonuses 29501790 27998445

Classifiersremuneration 5505165 4566343

Medicalaid–companycontributions 2692432 2519607

UnemploymentInsuranceFund 286274 289110

Skillsdevelopmentlevy 60823 388410

Leavepayprovisioncharge (75258) 210972

Retirementfundcontributions 4250969 4060329

Garnishee 55681 147370

PAYE 10945080 9650289

Salarytemporaryemployees 18929 65851

53 241 885 49 896 726

Average staff

Total number of employees as at 31 March 2018 93

Thetotalnumberofclassifierswas39fortheperiodended31March2018andthetotalamountpaidforclassifiers’remuneration

amountedtoR5499727-(31March2017:R4566343)excludingPAYE.

TheFPBhasaninternshipprogrammeinvolving10positions.


14. Administrative


Advertising 471939 6500

Externalauditfees 1867641 1860453

Bankcharges 77760 62402

Cleaning 286188 679933

Internalauditfees 70467 230208

Consultingandprofessionalfees* 5322826 3202595

Leaserentalsonoperatinglease 5859249 4855261

FPBCouncil** 1798353 1924969

Insurance 622778 492385

ITexpenses 4226673 2926236

Fleet 117797 97238

Fuelandoil 663939 538078

Postageandcourier 28754 60760

Printingandstationery 543457 1211155

Publicrelationscompaign 2233067 3945371

Researchanddevelopmentcosts 9850 3593004

Security(guardingofmunicipalproperty) - 1857

Staffdevelopment,recruitmentandwelfare 2414511 2429646

Subscriptionsandmembershipfees 235547 265964

Telephoneandfax 1033915 1282725

Transportandfreight 84453 -

Travel–local 4664024 3990730

Travel–International 466554 1059951

WaterandLights 621330 692831

Disposalsofassets (11561) (23909)

Workshopsandmeetings 2201808 1018636

Lossonforexexchange 350 -

Stakeholdersrelations 36113 -

Leaseexpenses 715726 645355

ReviewBoard(TribunalAppeal) 163635 107297

Storage–classificationmaterial 123415 248064

Receivableswrittenoff - 201731

36 950 558 37 607 426


ConsultingservicesexpenditureincludesprofessionalfeesforpriorandcurrentyearrelatedtotheprojectsundertakenasoutlinedintheAnnualPerformancePlans.

Administrativeandoperationalexpensesarerelatedtoactivitiestopursueandachievestrategicoutcomes.

*ConsultingfeesisinclusiveoflegalfeesofR3995156.23asat31March2018(R2184700.51,31March2017)

**Councilmembersarepaidformeetingattendance&travelclaims.

15. Other expenses


Finance leases 187 705 319 784

16. Auditors’ remuneration


Fees 1 867 641 1 860 453

17. Cash generated from operations


Surplus 7466311 3840748

Adjustments for:Depreciationandamortisationexpense 2452419 2668576

Lossonsaleofassets - 25021

Gainonsaleofassets (11561) (48930)

Financecosts–Financeleases 187705 319784

Movementsinprovisions 3063312 848843

Changes in working capital:Receivablesfromexchangetransactions (826455) (1021108)

Payablesfromexchangetransactions 72265 4568810

12 403 996 11 201 744


18. Employee benefit obligations

Retirement benefit payment

TheFPBcontributes for all qualifyingemployees the retirementbenefits toaFund inwhichassetsareheldandcontrolledbyLibertyLife.Asat31March2018,currentservicescostsofR4250969(31March2017R4060329)wererecognisedasexpenseslimitedtothecontributionsthatwerepaid.Actualcontributionspaidduringthecurrentfinancialyearhavebeendisclosedasnote13.

19. Taxation

NoprovisionhasbeenmadefortaxationastheFPBisexemptfromincometaxintermsofSection10oftheIncomeTaxAct.TheFPBisexempt fromthepaymentofvalueaddedtax (VAT),asaresultVATpaidbytheFPBis notrefundablebySARS.

20. Operating lease

20.1 Operating lease – head office

FPBhasanoutstandingcommitmentinrespectofoperatingleaseforheadofficesituatedinCenturion.Theleaseagreementwasenteredintoforaperiodof5yearseffectivefrom1February2012.

InFebruary2014,theFPBaquiredadditionalofficespaceforitsheadofficesituatedinCenturion,Theleaseagreementwasenteredintoforaperiodof3yearseffectivefrom1February2014.Operatingleasesliabilitiesforthesetwoleasesfalldueasfollows:

Annualescalations 10%


Future minimum lease payments

Upto1year 3693286 3052302

5ormoreyears - -

20.2 Operating lease – Durban office

TheFPBaquiredadditionalofficespaceforitsregionalofficesituatedinDurban,Theleaseagreementwasenteredintoforaperiodof3yearseffectivefrom1August2015.Operatingleasesliabilitiesforthisleasefalldueasfollows:

Annualescalations 9%



Future minimum lease paymentsUpto1year 177913 519050

2-5years - 177913

5ormoreyears - -

177 913 696 963

20.3 Operating lease – Cape Town office

TheFPBaquiredadditionalofficespacefortheirregionalofficesituatedinCapeTown,Theleaseagreementwasenteredintoforaperiodof5yearseffectivefrom1March2016.Operatingleasesliabilitiesforthisleasefalldueasfollows:

Annualescalations 5.5%


Future minimum lease payments

Upto1year 496148 470282

2-5years 1027333 1523481

5ormoreyears - -

1 523 481 1 993 763

21. Contingencies

1) Thisamount relates to labourdisputesbetweenFPBand threeemployeeswho institutedproceedingsat theCCMAforconstructivedismissalandunfairdismissal.

2) ThisamountrelatestolegalcoststhatFPBwillincurforlabour-relateddisputesforrepresentationincourtandCCMA3) This amount relates to a contract disputes between FPB and the service provider. The amount is for legal

representation.


Contingentliabilityforlabourdisputes - 2825199

Contingentliabilityforlabourdisputes(1) 1875000 -

Contingentliabilityforlegalcost(2) 700000 -

Contingentliabilityforcontractdispute(3) 300000 -

2 875 000 2 825 199


22. Events after the reporting date

Therearenoevents thatcameto theattentionofmanagementafter the reportingdate that require the reportedfiqurestobeadjusted.

23. Related parties

Related-party transactions


Funding – operating grants

DepartmentofCommunications 91684000 86472000

Remuneration of management

Councillors/Board members

Non-executive members - Council Fee 2018 2017

MpumlwanaNFT(Chairperson) 276464 276464 207773

MangenaS(DeputyChairperson) 432408 432408 416801

DitlhakeM 186116 186116 220648

NevondweLT 138228 138228 146367

SkeepersN 245299 245299 239173

DubazanaN 170223 170223 142657

MudununguA 18940 18940 143435

MhlakazaNM 28960 28960 -

MakhasiY* - - -

1 496 638 1 496 638 1 516 854

Independent – Audit and Risk Committee members 2018 2017

DhladhlaM 45202 51604

NkosiZ 114732 12181

159 934 63 785


23. Related parties (continued)

ICT Steering Committee members 2018 2017

BaloyiN 21728 -

NdabaS 50369 -

MenyeVC 22417 -

Subtotal 94514 -

94 514 -

*MakhasiYisemployedbystateanddoesnotearnCouncilfeefromFPB


23. Related parties (continued)

2018 – Executive management Salary Perfo-mance

bonuses

Retirementfund

contribu-tions

Medical aid

contribu-tions

Settlementpayout

Total

WakasheTP–ChiefExecutiveOfficer* 1159510 - 59270 29816 1273679 2522275

RisibaS–ChiefOperationsOfficer*** 427280 - 19757 16488 453969 917494

KadiP–SharedServiceExecutive**** 378112 49440 9780 5908 - 443240

PhahlaDL–ChiefInformationOfficer***** 833159 46968 75638 34872 - 990637

GouwsR–ChiefFinancialOfficer** 201572 51482 10286 - - 263340

DzebuM–ActingChiefExecutiveOfficer 104452 - - - - 104452

Subtotal - - - - 1727648 -

3 104 085 147 890 174 731 87 084 1 727 648 5 241 438

2017 - Executive management Salary Perfor-mance

bonuses

Retirementfund

contribu-tions

Medical aid

contribu-tions

Total

WakasheTP–ChiefExecutiveOfficer 1397112 38645 69270 40787 1545814

RisibaS–ChiefOperationsOfficer 1147371 32204 57725 40787 1278087

KadiP–SharedServiceExecutive 1143872 31882 57148 40787 1273689

PhahlaDL–ChiefInformationOfficer 1032761 30594 54839 40787 1158981

GouwsR–ChiefFinancialOfficer 1272111 22356 60109 - 1354576

5 993 227 155 681 299 091 163 148 6 611 147

*WakasheTPresignedastheCEOinAugust2017

**GouwsRresignedastheCFOinApril2017

***RisibaSresignedastheCOOinMay2017

****KadiPresignedastheSSEinJuly2017

*****PhahlaDLresignedastheCIOinNovember2017


24. Risk management liquidity risk

TheFPBisexposedtoliquidityriskonlywithregardtothepaymentofitspayablesandcommitments.Thesepayablesareallduewithintheshort-term.TheFPBmanagesitsliquidityriskbyholdingsufficientcashinitsbankaccount,supplementedbycashavailableininvestmentaccounts.

At 31 March 2018 Less than 1 year Between 1 and 2 years

Between 2 and 5 years

Over 5 years

Tradeandotherpayables 7945300 - - -

Commitments 7723998 361922 - -

At 31 March 2017 Less than 1 year Between 1 and 2 years

Between 2 and 5 years

Over 5 years

Tradeandotherpayables 7873010 - - -

Commitments 13799108 1748176 - -

Interest rate risk

TheFPBinvestssurpluscashonwhichitearnsinterestincome.Theinterestincomeisnotindependentofchangesinmarketinterestrates.

Credit risk

Creditriskconsistsmainlyofcashdeposits,cashequivalents,derivativefinancialinstrumentsandtradedebtors.Theentitydepositscashonlywithmajorbankswithhighqualitycreditstandingandlimitsexposuretoanyonecounterparty.

TradereceivablesareexposedtoalowcreditriskasmostofFPB’srevenuetransactionsrequiredeposits.

25. Fruitless and wasteful expenditure


OpeningBalance 48746 231878

InterestpenaltybyTelkom(1) - 7482

Flightmissedbyemployees(2) 6303 9240

Accomodationbookedandpaidfor,notutilisedbyemployee(3) - 6190

Carrentalforextradaysnotauthorised(4) 1482 5069

Settlementoftheformeremployees(5) 2880068 -

Servicesrenderedandpaidforbutnotauthorised(6) 61406 -

Less:Amountswrittenoff - (201731)

Less:Amountsrecovered - (9382)

Total 2 998 005 48 746


25. Fruitless and wasteful expenditure (continued)

1) TheFPBmadepaymentsontime.However,theaccountreferencewasnotcorrect.Telkomhasbeenrequestedto reallocate amounts to correct accounts.Confirmation of reversal of interest has been requested and theemployeehasbeenissuedwithawarningletter.

2) TheemployeesmissedtheflightforvariousreasonsandtheflightwasbookedandpaidforbyFPB.Stepsweretakenagainsttheemployeesconcerned.

3) AccommodationwasbookedandpaidforbyFPB,butnotutilisedbyemployees.Theamountwasrecoveredfromoneemployeeandstepsweretakenfortheotheremployee.

4) AnemployeedelayedreturningthehiredvehicletoarentalcompanybytwodaysandthecarrentalcompanychargedtheFPBapenalty.Aninvestigationisunderway.

5) TheFPBmadeasettlementpaymenttotheformerCEOandCOOfollowinganinvestigationintoallegedimproperconduct.Alegalopinionhasbeenobtainedwhereinthisamountisclassifiedasfruitlessandwastefulexpenditure.

6) Theapplicantsfortheexcutivepositionsweresenttoawrongserviceproviderforassessmentsandtheresultsoftheassessmentswerenotutilised.

26. Irregular expenditure


Openingbalance 50054 254735

Add:Irregularexpenditure–currentyear 1220865 -

Less:Amountscondoned - (204681)

Irregular expenditure awaiting condonement/payment 1 270 919 50 054

TheFPBincurredirregularexpenditureofR114912inrespectofwebsitemaintenance.TheFPBrequestedproposalsin2016.Althoughthetermsofreferencedonotmakereferencetothedurationofthecontract,allproposalswerefora12monthperiod.However,theSLAisfora24monthperiod.TheterminationdateaccordingtothePOandSLAisJuly2017andApril2019respectively.

TheFPBincurredirregularexpenditureofR1105952.76inrespectofafterhourscallroutingbynotterminatingthecontractwithaserviceproviderandtheserviceprovidercontinuedtorendertheserviceoutsidethecontract.Theamounttobepaidtotheserviceproviderisstillunderdispute.


27. Prior-period errors

27.1 Provision of expense

Duringthereviewofprovisionfor2017/18itwasnotedthatacertainamountofprovisionforlabourdisputeswasnotcateredfor.Therefore,basedontheaccrual,accountingprinciple,aportionoftheprovisionneedstoberecognisedindifferentaccountingperiods.


Statement of financial position

Provisionofexpense - 477073

Statement of financial performance

Legalexpense - (477073)

28. Commitments


Authorisedcapitalexpenditure

Already contracted for but not provided for• Property,plantandequipment 3525290 6737485

Total capital commitmentsAlreadycontractedforbutnotprovidedfor 3525290 6737485

Authorised operational expenditure

Already contracted for but not provided for• Expenditure1 4560630 8809799

Total operational commitmentsAlreadycontractedforbutnotprovidedfor 4560630 8809799

Commitmentsdisclosedrelatestocontractsawardedbutnotcompletedbefore31March2018.Theoperatingleasecommitmentshavebeendisclosedinnote20.Cashandcashequivalentsbalancedisclosedinnote3aswellastheMTEFbudgetwillbeutilisedtofinancethesecommitmentsduringthe2018/2019financialyear.Thenotehasbeenrestatedasaresultofthecorrectiononsomeofthecontracts.

29. Changes in accounting estimate

GRAP17– Infrastructure,PlantandEquipment requires the reviewof theuseful lifeofanassetat leastateachfinancialyearend.TheFPBdidnotreviseitsusefullifeasat31March2018.


PERFORMANCE INFORMATION REPORT


Strategic Outcome 1

Effectiveandvisiblemonitoringofindustrythroughouttheentirevaluechain(contentcreators,producersanddistributorsofFPGs)fortheprotectionofconsumersandprimarilychildrenandadultsthroughinformation.

Performance Indicator Actual Achievement 2016/17

Planned Target2017/18

Actual Achievement2017/18

Deviation from Planned Target to Actual Achievement for 2017/18

Comments on Deviations

%ofcontentclassified 100%(1805)ofalleligiblesubmissions

wereclassified

100%ofeligiblesubmissions(games,

films,publications)classified

100%(1886)ofeligiblesubmissionswere

classified

Achieved None

Nooftrendanalysisreports

%changeintherateofsubmissions,

registrationsandrenewals

QuarterlytrendsanalysisreportQ1-Q4

(2016/2017)compiled

4trendanalysisreportsontherateof

classificationsubmissions,registrations

and/orrenewalscompiled

All4trendanalysisreportsontherateof


andrenewalscompiled

Achieved None

LevelsofadherencetoClassification

GovernanceFramework

TrainingontheGovernanceFramework

wasconductedwiththe8Durban

classifiersinFebruary2017

TrainingwasconductedwiththeDurban

chiefclassifiersinFebruary2017


wasconductedwiththe9newGauteng

chiefclassifiersinJanuaryandFebruary

2017

Trainingwasconductedwithallthe

GautengclassifiersinMarch2017

Reviewandimplementtheapproved

ClassificationGovernanceFramework,

achievingmoderatelevelsofadherence

ClassificationGovernanceFramework

hasbeenreviewed,approvedand

implemented

Achieved None

Numberofworkshopsconducted 40FPBclassifiersand4contractedonline

distributorsweretrained.

Gamestrainingwasconductedwith7

Gautengclassifiers

3Gautengand1Durbanpre-workshop

meetingsconductedaspartofneeds

analysisfortraining.

6workshopsandtrainingwasconducted

withtheGautengandDurbanclassifiers

ascompulsoryquarterlytrainingand

debriefings.

TrainingwasconductedwithOn-Tap

TVandPrideTVandfeedbackonthe

classificationreportswasprovidedto

Showmaxmanagement

8workshopsonClassificationGuidelines

conductedwithclassifiersandcompliance

monitors

11workshopsconductedwithclassifiers

(FPBandonlinedistributorclassifiers)

Achieved Workshopsincludedonlinedistributors

whohaverecentlysignedlicensing

agreements–thisresultedinthe

overachievementoftarget


Strategic Outcome 1

Effectiveandvisiblemonitoringofindustrythroughouttheentirevaluechain(contentcreators,producersanddistributorsofFPGs)fortheprotectionofconsumersandprimarilychildrenandadultsthroughinformation.






%ofcontentclassified 100%(1805)ofalleligiblesubmissions

wereclassified

100%ofeligiblesubmissions(games,

films,publications)classified

100%(1886)ofeligiblesubmissionswere

classified

Achieved None

Nooftrendanalysisreports

%changeintherateofsubmissions,

registrationsandrenewals

QuarterlytrendsanalysisreportQ1-Q4

(2016/2017)compiled

4trendanalysisreportsontherateof


and/orrenewalscompiled

All4trendanalysisreportsontherateof


andrenewalscompiled

Achieved None

LevelsofadherencetoClassification

GovernanceFramework


wasconductedwiththe8Durban

classifiersinFebruary2017

TrainingwasconductedwiththeDurban

chiefclassifiersinFebruary2017


wasconductedwiththe9newGauteng

chiefclassifiersinJanuaryandFebruary

2017

Trainingwasconductedwithallthe

GautengclassifiersinMarch2017

Reviewandimplementtheapproved

ClassificationGovernanceFramework,

achievingmoderatelevelsofadherence

ClassificationGovernanceFramework

hasbeenreviewed,approvedand

implemented

Achieved None

Numberofworkshopsconducted 40FPBclassifiersand4contractedonline

distributorsweretrained.

Gamestrainingwasconductedwith7

Gautengclassifiers

3Gautengand1Durbanpre-workshop

meetingsconductedaspartofneeds

analysisfortraining.

6workshopsandtrainingwasconducted

withtheGautengandDurbanclassifiers

ascompulsoryquarterlytrainingand

debriefings.

TrainingwasconductedwithOn-Tap

TVandPrideTVandfeedbackonthe

classificationreportswasprovidedto

Showmaxmanagement

8workshopsonClassificationGuidelines

conductedwithclassifiersandcompliance

monitors

11workshopsconductedwithclassifiers

(FPBandonlinedistributorclassifiers)

Achieved Workshopsincludedonlinedistributors

whohaverecentlysignedlicensing

agreements–thisresultedinthe

overachievementoftarget







Phasesofimplementation StrategysubmittedforCouncilapproval All4phasesofthedevelopmentofthe

labellingstrategyforphysicalfilmand

gamesimplemented

All4phasesofthedevelopmentofthe

labellingstrategyachieved:

Phase1:Consultationsconductedwith

DistributorsontheLabellingStrategyand

inputsobtained

Phase2:LabellingStrategydeveloped

andapproved

Phase3:Enhancementssubmittedto

CouncilontheLabellingStrategythatwas

approvedinQuarter3

Phase4:OCRsystemlivewithlabelling

componentincluded

Achieved None

Phasesofimplementation Guidelinesreviewscopeandplan

developed

All4phasesoftheclassificationguidelines

reviewplanimplemented

2phasesachieved:

Phase1:Discussionpaperdevelopedand

approved

Phase2:Publicconsultationsheldinall9

provinces

Notachieved Phase3:Draftingofrevisedguidelines

underway–secondroundofPublic

consultationsontherevisedclassification

guidelinestobedoneinQ1andQ2

Phase4:Approvalandgazetteofthe

revisedclassificationguidelines

Numberoffocusgroupsheld 6focusgroupdiscussionsconductedin6

provinces

4focusgroupstoassessimplementation

ofclassificationguidelinesconducted

15focusgroupsconvenedintheyear Achieved None

Phasesofimplementation FPBrevisedfeesandtariffswere

approvedbyCouncil

4phasesoftariffstructureimplemented 3phasesoftariffstructureimplemented:

Drafttariffstructuredeveloped

Notachieved Requestbyindustrytoextend

consultationperiodgranted,which

ledtodelaysintheapprovalofthetariffs

byCouncilandMinister

Noofreportscompiled ProcesseddraftBillinParliament 4reportsontheprogressmadein

theenactmentofFPAmendmentBill

compiled

3reportsgeneratedontheprogressofBill Notachieved 1reportoutstandingastherewasno

progressmadeontheBillinQ2

Numberofunregistereddistributors

identified

2848unregistereddistributorsidentified 2000unregistereddistributorsonphysical

platformsidentified

3789inspectionsconductedto

unregistereddistributors

Achieved Moreunregistereddistributorswere

identifiedwhileconductinginspections

thanwhatreflectedonFPBonlinesystem

Strategic Outcome 1 (continued)







Phasesofimplementation StrategysubmittedforCouncilapproval All4phasesofthedevelopmentofthe

labellingstrategyforphysicalfilmand

gamesimplemented

All4phasesofthedevelopmentofthe

labellingstrategyachieved:

Phase1:Consultationsconductedwith

DistributorsontheLabellingStrategyand

inputsobtained

Phase2:LabellingStrategydeveloped

andapproved

Phase3:Enhancementssubmittedto

CouncilontheLabellingStrategythatwas

approvedinQuarter3

Phase4:OCRsystemlivewithlabelling

componentincluded

Achieved None

Phasesofimplementation Guidelinesreviewscopeandplan

developed

All4phasesoftheclassificationguidelines

reviewplanimplemented

2phasesachieved:

Phase1:Discussionpaperdevelopedand

approved

Phase2:Publicconsultationsheldinall9

provinces

Notachieved Phase3:Draftingofrevisedguidelines

underway–secondroundofPublic

consultationsontherevisedclassification

guidelinestobedoneinQ1andQ2

Phase4:Approvalandgazetteofthe

revisedclassificationguidelines

Numberoffocusgroupsheld 6focusgroupdiscussionsconductedin6

provinces

4focusgroupstoassessimplementation

ofclassificationguidelinesconducted

15focusgroupsconvenedintheyear Achieved None

Phasesofimplementation FPBrevisedfeesandtariffswere

approvedbyCouncil

4phasesoftariffstructureimplemented 3phasesoftariffstructureimplemented:

Drafttariffstructuredeveloped

Notachieved Requestbyindustrytoextend

consultationperiodgranted,which

ledtodelaysintheapprovalofthetariffs

byCouncilandMinister

Noofreportscompiled ProcesseddraftBillinParliament 4reportsontheprogressmadein

theenactmentofFPAmendmentBill

compiled

3reportsgeneratedontheprogressofBill Notachieved 1reportoutstandingastherewasno

progressmadeontheBillinQ2

Numberofunregistereddistributors

identified

2848unregistereddistributorsidentified 2000unregistereddistributorsonphysical

platformsidentified

3789inspectionsconductedto

unregistereddistributors

Achieved Moreunregistereddistributorswere

identifiedwhileconductinginspections

thanwhatreflectedonFPBonlinesystem







Numberofonlineinspectionsconducted Annualtotalsforfinancialyear2016/17

areasfollows:

Onlineinspections:1776

ISPinspections:1015

iTunesinspections:960

Socialnetworks:781

2500onlineinspectionsconductedto

checkcompliance

Totalof3886onlineinspections

conductedtocheckcompliance

Achieved Additionalonlinedistributorsregistered

withFPBandresultedinanincreaseinthe

numberofinspectionsconducted

Numberofraidsconducted 94raidshavebeenconducted 36raidswithlawenforcementtoenforce

compliancewiththeActconducted

93raidsconducted Achieved Improvedrelationswithlawenforcement

agencies,whichresultedinthem

supportingrequestsforraids

Numberofinspectionsconductedto

existingdistributors

6126distributorshavebeeninspected 7000targetedinspectionstoexisting

distributorsonphysicalplatforms

conducted

8118targetedinspectionstoexisting


conducted

Achieved Improvedplanningresultedinincreased

inspectionsconducted

%ofqueriesresolvedwithinset

turnaroundtimes

Implementationofcustomercare

standards.

Servicedeliveryandcustomercare

standards-reportonsurveyfindings

reviewandrecommendationsreport

compiled.

Implementthecallloggingsystemtotrack

andresolveatleast95%ofquerieswithin

thesetturnaroundtimes(Internally=2

workingdays;Externally=8workingdays)

99,25%queriesresolvedwithin

turnaroundtimes

Achieved TheNethelpdeskcallloggingsystemhas

improvedefficiency

Numberofrespondentstothesurveys 168surveysconducted

162online

6physical

250surveysadministeredtoassessthe

qualityofservicesrendered

290surveysadministeredandan

assessmentreportcompiled

Achieved Distributedsurveysonlineandmanuallyto

reachamaximumnumberofparticipants

%ofsettargetsachieved Decentraliseadministrationofdistributor

licenceapplicationstoDurbanregional

office

4reportsassessingtheeffectivenessof

theDurbanpilotcompiled

Effectivenessofthedecentralisation

project(Durban)assessed

Achieved None

Numberofdecisionsissuedwithin10

workingdays

Numberofregistrationsandrenewals

certificatesissuedwithin10workingdays

100%oflicencesissuedwithin10-day

turnaroundtimes

Atleast95%ofclassificationdecisions,

registrationsandrenewalslicencesissued

within8workingdays

89%ofclassificationdecisionsissued

within8days

84%ofregistration/renewalslicences

issuedwithin8days

Notachieved Delaysinapprovalofclassification

decisionsowingtoQAmechanismthatis

inplace








Numberofonlineinspectionsconducted Annualtotalsforfinancialyear2016/17

areasfollows:

Onlineinspections:1776

ISPinspections:1015

iTunesinspections:960

Socialnetworks:781

2500onlineinspectionsconductedto

checkcompliance

Totalof3886onlineinspections

conductedtocheckcompliance

Achieved Additionalonlinedistributorsregistered

withFPBandresultedinanincreaseinthe

numberofinspectionsconducted

Numberofraidsconducted 94raidshavebeenconducted 36raidswithlawenforcementtoenforce

compliancewiththeActconducted

93raidsconducted Achieved Improvedrelationswithlawenforcement

agencies,whichresultedinthem

supportingrequestsforraids

Numberofinspectionsconductedto

existingdistributors

6126distributorshavebeeninspected 7000targetedinspectionstoexisting


conducted

8118targetedinspectionstoexisting


conducted

Achieved Improvedplanningresultedinincreased

inspectionsconducted

%ofqueriesresolvedwithinset

turnaroundtimes

Implementationofcustomercare

standards.

Servicedeliveryandcustomercare

standards-reportonsurveyfindings

reviewandrecommendationsreport

compiled.

Implementthecallloggingsystemtotrack

andresolveatleast95%ofquerieswithin

thesetturnaroundtimes(Internally=2

workingdays;Externally=8workingdays)

99,25%queriesresolvedwithin

turnaroundtimes

Achieved TheNethelpdeskcallloggingsystemhas

improvedefficiency

Numberofrespondentstothesurveys 168surveysconducted

162online

6physical

250surveysadministeredtoassessthe

qualityofservicesrendered

290surveysadministeredandan

assessmentreportcompiled

Achieved Distributedsurveysonlineandmanuallyto

reachamaximumnumberofparticipants

%ofsettargetsachieved Decentraliseadministrationofdistributor

licenceapplicationstoDurbanregional

office

4reportsassessingtheeffectivenessof

theDurbanpilotcompiled

Effectivenessofthedecentralisation

project(Durban)assessed

Achieved None

Numberofdecisionsissuedwithin10

workingdays

Numberofregistrationsandrenewals

certificatesissuedwithin10workingdays

100%oflicencesissuedwithin10-day

turnaroundtimes

Atleast95%ofclassificationdecisions,

registrationsandrenewalslicencesissued

within8workingdays

89%ofclassificationdecisionsissued

within8days

84%ofregistration/renewalslicences

issuedwithin8days

Notachieved Delaysinapprovalofclassification

decisionsowingtoQAmechanismthatis

inplace


Strategic Outcome 2

Informedconsumers,generalmembersofthepublicandindustryaboutthemandate,programmesandoperationsoftheFPB.

Performance Indicator Actual Achievement2016/2017




Comment on Deviations

Approvedmediaplan

Noofinterviews

Noofprintonlinearticles

3opinionpieces

4mediadialogueshosted

44televisioninterviewsconducted

70radiointerviewsconducted

884print&onlinearticles

Mediarelationsplanreviewedand

implemented:

4broadcastInterviewsconducted

16print/onlinearticlespublished

Mediarelationsplanimplemented:

287broadcastinterviewsconducted


Achieved Exceededtargetduetoaccessto

broadcastinterviews,print/onlinearticles

publishednationally.

Numberofmulti-unitactivitiesconducted

Numberofdigitalliteracycampaigns

32outreachactivitieswereconducted

4quarterlyoutreachandpubliceducation

Digitalliteracycampaignandoutreach

plandeveloped,approvedand

implemented

1digitalliteracycampaignimplemented

3multi-unitoutreachactivitiesconducted



implemented

Digitalliteracycampaignconductedwith

SaferSchools

3multi-unitcampaignsconducted

Achieved None

NumberofM&Ereports

Numberofpeoplereached

M&Ereportscompiled M&Ereportsofalldigitalliteracyand

awarenesscampaignscompiled

4quarterlydigitalandoutreachM&E

reportcompiled

Achieved None

Numberofparents,learnersand

educatorsreached

1599reportshavebeenreceivedforthe

year

Rolloutcybersafetyandchildprotection

initiativesin6differentprovincestargeting

200parents,800learnersand400

educators


initiativeshavebeenconductedin8

provincesreaching19711learners,

1148parentsand728Educators.

Notachieved Targetoverachieved

Managementfailedtotabletheannual

evaluationreportforapprovalbyExco

Percentageincreaseinsocialmedia

engagements

Socialmedianumbersincreasedby

16.5%

4quarterlydigitalmediaM&Ereports

compiled

EngagementonFPB’sdigitalandsocial

mediaplatformsimprovedby20%

4digitalmediaM&Ereportscompiled

Facebookincreasedby20%

Twitterincreasedby354%


Achieved Postedfalsenewsarticleontwitter,which

ledtohugeincreaseinimpressions

Noofstaffworkshopsconvened 4staffworkshopsconvened 4staffworkshopsconvened 4quarterlystaffworkshopswere

convened

Achieved None

Noofinternalnewslettersissued 7internalnewslettersissued 8internalnewslettersissued 7internalnewslettersissued Notachieved Managementfailedtoexerciseoversightin

sendingnewslettersinternally


Strategic Outcome 2

Informedconsumers,generalmembersofthepublicandindustryaboutthemandate,programmesandoperationsoftheFPB.






Approvedmediaplan

Noofinterviews

Noofprintonlinearticles

3opinionpieces

4mediadialogueshosted

44televisioninterviewsconducted

70radiointerviewsconducted

884print&onlinearticles

Mediarelationsplanreviewedand

implemented:

4broadcastInterviewsconducted


Mediarelationsplanimplemented:

287broadcastinterviewsconducted


Achieved Exceededtargetduetoaccessto

broadcastinterviews,print/onlinearticles

publishednationally.

Numberofmulti-unitactivitiesconducted

Numberofdigitalliteracycampaigns

32outreachactivitieswereconducted

4quarterlyoutreachandpubliceducation



implemented

1digitalliteracycampaignimplemented

3multi-unitoutreachactivitiesconducted



implemented

Digitalliteracycampaignconductedwith

SaferSchools

3multi-unitcampaignsconducted

Achieved None

NumberofM&Ereports

Numberofpeoplereached

M&Ereportscompiled M&Ereportsofalldigitalliteracyand

awarenesscampaignscompiled

4quarterlydigitalandoutreachM&E

reportcompiled

Achieved None

Numberofparents,learnersand

educatorsreached

1599reportshavebeenreceivedforthe

year


initiativesin6differentprovincestargeting

200parents,800learnersand400

educators


initiativeshavebeenconductedin8

provincesreaching19711learners,

1148parentsand728Educators.

Notachieved Targetoverachieved

Managementfailedtotabletheannual

evaluationreportforapprovalbyExco

Percentageincreaseinsocialmedia

engagements

Socialmedianumbersincreasedby

16.5%

4quarterlydigitalmediaM&Ereports

compiled

EngagementonFPB’sdigitalandsocial

mediaplatformsimprovedby20%


Facebookincreasedby20%

Twitterincreasedby354%


Achieved Postedfalsenewsarticleontwitter,which

ledtohugeincreaseinimpressions

Noofstaffworkshopsconvened 4staffworkshopsconvened 4staffworkshopsconvened 4quarterlystaffworkshopswere

convened

Achieved None

Noofinternalnewslettersissued 7internalnewslettersissued 8internalnewslettersissued 7internalnewslettersissued Notachieved Managementfailedtoexerciseoversightin

sendingnewslettersinternally


Strategic Outcome 3

Effective,efficientandsustainablemanagementofFPBoperations.

Performance Indicators Actual Achievement2016/2017





PhasesofImplementationofCouncil-

approvedstructure

Recruitmentinresponsetoturnover

developmentandimplementationof

Durbanpilotprogrammeforclassifiers

FPBStructurereview–reporttoExco

Review,approveandimplementall4

phasesoftheFPBorganizationalstructure

Phase1:Reviewofunitstaffing

requirements

Phase2:Submittedproposedstructure

toExco


trends

Notachieved Excodecisiontodeferimplementation

ofadditionalpoststotheODexercisein

2018/19

Numberofanalysisreportsdeveloped Remunerationanalysisconducted 4remunerationanalysisreportsdeveloped Four4remunerationanalysisreports

developed

Achieved None

Phasesofimplementationofchange

managementprogramme

Conclusionofcoachingagreementwith

FreshThinking.

Valuesanddiversityworkshopconducted

forstaff–23September2016.

culturaldiversityworkshopheldfor

classifiers.

Team-basedcoachingreportsubmittedto

HR/Remco.

Individualcoachingimplementedfor1

staffmember.

Meetingswithunitmanagers

All3phasesofFPBchangemanagement

programmeimplemented

Actionplanstoaddressissuesraisedin

staffsurvey

Valuesworkshopconvened

Achieved None

Numberoftraininganddevelopment

activitiesundertaken

WorkplaceSkillsplansuccessfully

submittedtoMICTSeta

4traininganddevelopmentactivities

undertaken

Developtalentmanagementstrategy

trainingsfacilitated

Educationalassistancepaidforindividuals

intermsofapprovedassistance

AnnualSkillsPlandeveloped

Achieved None

Numberofcoachingsessions Formulationanddraftofsuccessionplan.

ApprovalofsuccessionplanbyExco.

Implementationofactingarrangementsas

peractingallowancepolicy.

9coachingsessionsforsuccessor

candidatesconducted


candidates

Notachieved Delaysincommencingprocurement

process

%Implementationofcostsavingplan Costsavingsinitiativesimplemented 50%ofthecostsavinginitiativesasper

theplanimplemented

56%ofthecost-savinginitiativesasper

planimplemented

Achieved Constantmanagementandmonitoring

ofdatausage,includingrecoveryofhigh

usage.

Subsistenceandtravelpolicyamendment

inrelationtoNationalTreasuryinstruction

noteoncostcontainmentmeasures.

Formalisationandimplementationoftheft

andlosscommittee,includingrecoveryon

negligentsituation


Strategic Outcome 3

Effective,efficientandsustainablemanagementofFPBoperations.






PhasesofImplementationofCouncil-

approvedstructure


developmentandimplementationof

Durbanpilotprogrammeforclassifiers

FPBStructurereview–reporttoExco

Review,approveandimplementall4

phasesoftheFPBorganizationalstructure

Phase1:Reviewofunitstaffing

requirements

Phase2:Submittedproposedstructure

toExco


trends

Notachieved Excodecisiontodeferimplementation

ofadditionalpoststotheODexercisein

2018/19

Numberofanalysisreportsdeveloped Remunerationanalysisconducted 4remunerationanalysisreportsdeveloped Four4remunerationanalysisreports

developed

Achieved None

Phasesofimplementationofchange

managementprogramme

Conclusionofcoachingagreementwith

FreshThinking.

Valuesanddiversityworkshopconducted

forstaff–23September2016.

culturaldiversityworkshopheldfor

classifiers.

Team-basedcoachingreportsubmittedto

HR/Remco.

Individualcoachingimplementedfor1

staffmember.

Meetingswithunitmanagers

All3phasesofFPBchangemanagement

programmeimplemented

Actionplanstoaddressissuesraisedin

staffsurvey

Valuesworkshopconvened

Achieved None

Numberoftraininganddevelopment

activitiesundertaken

WorkplaceSkillsplansuccessfully

submittedtoMICTSeta

4traininganddevelopmentactivities

undertaken

Developtalentmanagementstrategy

trainingsfacilitated

Educationalassistancepaidforindividuals

intermsofapprovedassistance

AnnualSkillsPlandeveloped

Achieved None

Numberofcoachingsessions Formulationanddraftofsuccessionplan.

ApprovalofsuccessionplanbyExco.

Implementationofactingarrangementsas

peractingallowancepolicy.


candidatesconducted


candidates

Notachieved Delaysincommencingprocurement

process

%Implementationofcostsavingplan Costsavingsinitiativesimplemented 50%ofthecostsavinginitiativesasper

theplanimplemented

56%ofthecost-savinginitiativesasper

planimplemented

Achieved Constantmanagementandmonitoring

ofdatausage,includingrecoveryofhigh

usage.

Subsistenceandtravelpolicyamendment

inrelationtoNationalTreasuryinstruction

noteoncostcontainmentmeasures.

Formalisationandimplementationoftheft

andlosscommittee,includingrecoveryon

negligentsituation







%Changeinthenumberoftransactions

awarded

50%ofalltransactionsoverR100000.00

awardedtocompanieswithBBBEE

credentials

60%ofalltransactionsoverR100,000

areawardedtocompanieswithaBBBEE

contributionlevelof3orlower

Over67%ofalltransactionsover

R100,000areawardedtocompanieswith

aBBBEEcontributionlevelof3orlower

Achieved Accesstoblack-ownedcompaniesdueto

fullutilizationofCentralSupplierDatabase

Phasesofimplementation Officeexpansionplandevelopedasper

organisationalneeds

All4phasesoftheapprovedshort-term

officeexpansionstrategyimplemented

Phases2-4notachieved

Phase1:Developedspaceneedsanalysis

andsubmittedtoDPWtoinitiatedlong

termofficeprocurementforFPBHead

Office

Notachieved Lackofcapacitytodeliveronthetargetin

Q1-Q2

CorporateServicesSpecialistappointed

onlyinQ3tofacilitatetheofficeexpansion

process

Numberofreportssubmitted Timeoussubmissionofquarterlyfinancial

reporttoDOC

Submissionofall4financialreportsto

DoCasperthelegislateddeadline

All4financialreportssubmittedtoDOC Achieved None

Numberofreportscompiled N/A Internalauditplandevelopedand

approved

Fourquarterlyinternalauditreports

compiled

InternalAuditplandevelopedand

approvedbyARC

AllfourInternalAuditquarterlyreports

compiledandpresentedtotheARC

Achieved None

Numberofreportscompiled N/A 4riskmanagementimplementation

reportscompiled.

Allfourriskmanagementreportscompiled Achieved None

Numberofquarterlyreportssubmitted Quarterlyperformanceinformationreports

preparedandsubmittedtotheMinister,

DeputyMinisterandDirectorGeneralof

theDepartmentofCommunicationsasthe

DepartmentofNationalTreasury

4performanceinformationreports

compiledandsubmittedtotheExecutive

Authority

Allfourperformanceinformationreports


Authority

Achieved None

StrategicPlan

AnnualPerformancePlan

ManagementdevelopmentofAPP

Councilreviewandapprovalofstrategy

andAPP

Submissionof3versionsofstrategyand

APPtoDoCandNT

StrategicPlan,5-yearplanandAnnual

PerformancePlantotheExecutive

Authoritydevelopedandsubmitted

Revised5-yearStrategicPlandeveloped

andsubmitted

Developed2018/19AnnualPerformance

Plan

BothsubmittedtotheExecutiveAuthority

Achieved None

%ofimplementation 100%compliancewithrequirementsof

corporategovernanceframework

100%implementationandcompliance

withtheAnnualCorporateGovernance

Framework

100%compliancewiththeAnnual

CorporateGovernanceFramework

Achieved None








%Changeinthenumberoftransactions

awarded

50%ofalltransactionsoverR100000.00

awardedtocompanieswithBBBEE

credentials

60%ofalltransactionsoverR100,000

areawardedtocompanieswithaBBBEE

contributionlevelof3orlower

Over67%ofalltransactionsover

R100,000areawardedtocompanieswith

aBBBEEcontributionlevelof3orlower

Achieved Accesstoblack-ownedcompaniesdueto

fullutilizationofCentralSupplierDatabase

Phasesofimplementation Officeexpansionplandevelopedasper

organisationalneeds

All4phasesoftheapprovedshort-term

officeexpansionstrategyimplemented

Phases2-4notachieved

Phase1:Developedspaceneedsanalysis

andsubmittedtoDPWtoinitiatedlong

termofficeprocurementforFPBHead

Office

Notachieved Lackofcapacitytodeliveronthetargetin

Q1-Q2

CorporateServicesSpecialistappointed

onlyinQ3tofacilitatetheofficeexpansion

process

Numberofreportssubmitted Timeoussubmissionofquarterlyfinancial

reporttoDOC

Submissionofall4financialreportsto

DoCasperthelegislateddeadline

All4financialreportssubmittedtoDOC Achieved None

Numberofreportscompiled N/A Internalauditplandevelopedand

approved

Fourquarterlyinternalauditreports

compiled

InternalAuditplandevelopedand

approvedbyARC

AllfourInternalAuditquarterlyreports

compiledandpresentedtotheARC

Achieved None

Numberofreportscompiled N/A 4riskmanagementimplementation

reportscompiled.

Allfourriskmanagementreportscompiled Achieved None

Numberofquarterlyreportssubmitted Quarterlyperformanceinformationreports

preparedandsubmittedtotheMinister,

DeputyMinisterandDirectorGeneralof

theDepartmentofCommunicationsasthe

DepartmentofNationalTreasury

4performanceinformationreports


Authority

Allfourperformanceinformationreports


Authority

Achieved None

StrategicPlan

AnnualPerformancePlan

ManagementdevelopmentofAPP

Councilreviewandapprovalofstrategy

andAPP

Submissionof3versionsofstrategyand

APPtoDoCandNT

StrategicPlan,5-yearplanandAnnual

PerformancePlantotheExecutive

Authoritydevelopedandsubmitted

Revised5-yearStrategicPlandeveloped

andsubmitted

Developed2018/19AnnualPerformance

Plan

BothsubmittedtotheExecutiveAuthority

Achieved None

%ofimplementation 100%compliancewithrequirementsof

corporategovernanceframework

100%implementationandcompliance

withtheAnnualCorporateGovernance

Framework

100%compliancewiththeAnnual

CorporateGovernanceFramework

Achieved None


Strategic Outcome 4

Effectiveandinnovativeregulationofthecontentdistributedononline,mobileandrelatedplatformsfortheprotectionofchildren,youthandadultsthroughinformation.






Phasesofimplementation OCRsystemdevelopedandisinpilot

phase

All4phasesoftheOCRsystem

implemented

All4phasesofOCRsystemimplemented:

Phase1:OCRsystemintroducedto

industrythroughprovincialdistributor

workshops

Phase2:OCRsystemdemonstratedto

FPBstaffatstaffworkshop

Phase3:Postimplementationreviewand

sign-offonOCRsystemdoneinQ3

Achieved None

%ofsystemavailability 98.8%systemavailabilityachieved Ensuresystemavailabilityat98% Achieved98%availabilityoncritical

systems

Achieved None

Numberofcasesattendedto 1599reportshavebeenreceivedforthe

year

100%ofchildsexualabusematerialcases

referredtoFPBrespondedtowithin10

workingdays

100%ofthe16caseswithatotalof116

960contentswerereportedtotheFPB

fromSAPSandanalysisofcontentwas

conducted

However,only44%(7outofthe16cases)

wererespondedtowithin10days

Notachieved None

LevelsofcompliancetoINHOPEaction

plan

Recreationalequipmenthasbeen

procured

Development,approvaland

implementationoftheINHOPEactionplan

INHOPEimplementationplandeveloped

andapproved

AttendedINHOPEAGMandICCAM

training

MoUwithWASPAsigned

Childprotectionandonlinemonitoring

teamrelocatedtoabiggerofficespace

Achieved None


Strategic Outcome 5

ExpansionoftheFPBfootprintandaqualitativeimpactmadethrougheffectivepartnershipsandstakeholderrelationshipsinpursuanceofourmandate.






Numberofstrategicpartnershipsreviewed

andsecured

Stakeholderrelationsstrategyapproved

Africanengagementdocumentapproved

Stakeholdersurveysconducted

Approvedstakeholderrelationsplan

implemented

Approvedstakeholderrelations

implemented:

Stakeholderengagementsessionsat10

differentplatforms

Achieved None

NumberofsignedMoUs Partnerwithatleast2universitiesto

leverageresearchcapacityandassistwith

FPBknowledgecreation

Planofactioninmaintainingpartnerships

with2universitiestoleverageresearch

capacityandassistwithFPBknowledge

creationdeveloped

Planofactionnotdeveloped Notachieved Termsofreferencedevelopedtotestthe

market

Delaysinadvertisingforprospective

universitypartners

Numberoffilmandgamingfestivals

attended

Thefollowingfilmfestivalswereattended:

• EkurhuleniFilmFestival

• DurbanInternationalFilmFestival

• DISCOP

• JoburgFilmFestival

• FestivalofFame

Threefilmorgamingfestivalsattended&

participatedat

Attendedandparticipatedatfivefilmand

gamingfestivals

Achieved

Numberofstakeholdersengaged FPBattendedtheAfricaSocialImpact

SummithostedbyGoogleinKenya

FPBhostedtheKenyanFilmClassification

BoardstudytourinSouthAfrica

FPBembarkedonacontentregulation

informationsharingtriptoNamibia,where

itvisitedorganisationswithinthecontent

regulationfield


informationsharingtriptoGhana,where

theyvisitedorganisationswithinthe

contentregulationfield

Twostakeholdersinthecontinent

engaged

4engagementsheldonthecontinent:

• FPBattendedtheSADCMinistersfor

ICTandCommunicationsmeetingin

KwaZulu-Natal

• FPBattendedthe

TelecommunicationsOrganisation’s

ICTforuminMozambique

• FPBattendedandpresentedatthe

KenyaFilmConvention

• FPBattendedtheAfricaInternet

AcademyhostedbyGoogleSAin

Mauritius

Achieved None


Strategic Outcome 5

ExpansionoftheFPBfootprintandaqualitativeimpactmadethrougheffectivepartnershipsandstakeholderrelationshipsinpursuanceofourmandate.






Numberofstrategicpartnershipsreviewed

andsecured

Stakeholderrelationsstrategyapproved

Africanengagementdocumentapproved

Stakeholdersurveysconducted

Approvedstakeholderrelationsplan

implemented

Approvedstakeholderrelations

implemented:

Stakeholderengagementsessionsat10

differentplatforms

Achieved None

NumberofsignedMoUs Partnerwithatleast2universitiesto

leverageresearchcapacityandassistwith

FPBknowledgecreation

Planofactioninmaintainingpartnerships

with2universitiestoleverageresearch

capacityandassistwithFPBknowledge

creationdeveloped

Planofactionnotdeveloped Notachieved Termsofreferencedevelopedtotestthe

market

Delaysinadvertisingforprospective

universitypartners

Numberoffilmandgamingfestivals

attended

Thefollowingfilmfestivalswereattended:

• EkurhuleniFilmFestival

• DurbanInternationalFilmFestival

• DISCOP

• JoburgFilmFestival

• FestivalofFame

Threefilmorgamingfestivalsattended&

participatedat

Attendedandparticipatedatfivefilmand

gamingfestivals

Achieved

Numberofstakeholdersengaged FPBattendedtheAfricaSocialImpact

SummithostedbyGoogleinKenya

FPBhostedtheKenyanFilmClassification

BoardstudytourinSouthAfrica


informationsharingtriptoNamibia,where

itvisitedorganisationswithinthecontent

regulationfield


informationsharingtriptoGhana,where

theyvisitedorganisationswithinthe

contentregulationfield

Twostakeholdersinthecontinent

engaged

4engagementsheldonthecontinent:

• FPBattendedtheSADCMinistersfor

ICTandCommunicationsmeetingin

KwaZulu-Natal

• FPBattendedthe

TelecommunicationsOrganisation’s

ICTforuminMozambique

• FPBattendedandpresentedatthe

KenyaFilmConvention

• FPBattendedtheAfricaInternet

AcademyhostedbyGoogleSAin

Mauritius

Achieved None


NOTES

124 FILM AND PUBLICATION BOARD

125ANNUAL REPORT 2017/18

126 FILM AND PUBLICATION BOARD

HeadOffice:

420WitchHazelAvenueEcoGlades2EcoParkCenturion0157

Tel:0120031400Fax:0126610074

Website:www.fpb.org.za

RP391/2018ISBN:978-0-621-46816-8

FPBZA|@FPB_ZA|fpbza

annual report - national government of south africa · annual report 2017/18 agsa auditor-general...

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