Presentation to the PORTFOLIO COMMITTEE ON DEFENCE on the CASTLE of GOOD HOPE ANNUAL REPORT 08/09

AIM The aim of the presentation is to report to the Portfolio Committee on Defence (PCD) on the Castle of Good Hope Annual Report 08/09.

SCOPE The contents of the Annual Report for the year ended 31 March 2009 ito: Introduction Management Report Performance Information Corporate Governance HR Management A-G Report

INTRODUCTION Annual Report (A/R) is submitted to Parliament on the activities of the Castle Control Board (CCB) according to PFMA (sec 65) Applicable Legislation: Constitution of RSA PFMA Treasury Regulations Castle Management Act (CMA) Defence Endowment and Property Account Act Defence Endowment Property and Account Act (act 33 of 1922) transferred the Castle for the benefit of defence force organisations and to conserve the value of the property. Since then the Castle has been governed by the MoD.

COMPOSITION OF THE CCB The CCB was established ito the CMA and include the following representatives: DOD ASB Western Cape IZIKO Museums of Cape Town DPW CT Regional Chamber of Commerce and Industry City of Cape Town SA Tourism Board Western Cape Provincial Legislature Minister of Defence (2 representatives) Executive Director According the Castle Management Act, castle placed under juristic control of the CCB All posts on CCB filled with the exception of Western Cape Provincial Legislature representative, CCB have requested nominations on numerous occasions. Executive Director fulfills the role of the Secretary to the CCB.

MANAGEMENT REPORT Events at the Castle Total of 135 948 visitors to the Castle Daily management supported by stakeholders Facilities Management: Allocation of funding for maintenance remains a challenge Preventative maintenance ensures further damage to the structure EVENTS Many events at the Castle included the Timbuktu Exhibition, Breathing Spaces, Cape Town Military Tattoo and the International Chief of Chaplains Conference. Events were also managed together with other stakeholders at the Castle such as Iziko Museums of Cape Town. In addition to the 136 000 visitors to the Castle, additional 25 000 guests attended functions and events at the Castle. Film and Fashion Shoots remain a respectable source of income – R521 602-00 in FY. The five traditional Cape Regiments showed their presence by displaying colours during various parades such as El Alamein and the Opening of Parliament. VISITORS Castle shown a significant increase in visitors during 2008. DAILY MANAGEMENT Castle Section manages the Castle with limited resources, receive support from various departments and organizations. Castle Section focused attention on day-to-day maintenance of the Castle and effective service delvery. As educational institution, the Castle increased school groups by 6,8% - significant increase when compared to 2007. FACILTIIES MANAGEMENT Challenge remains the allocation of maintenance funding. This requires active involvement of DOD, DPW and South African Heritage Resources Agency. Currently doing preventative maintenance as interim measure.

MANAGEMENT REPORT Improvement to non-compliance matters Audit Committee Composition of the Board Appointment of Executive Director and CFO Supply Chain Management Policy Risk Management Policy Income Tax Exemption AUDIT COMMITTEE Established within approved terms of reference. COMPOSITION OF BOARD With exception of Western Cape Provincial Legislature all vacancies have been filled EXECTIVE DIRECTOR AND CFO Castle Manager fulfills the tasks of the Executive Director Appointment of the CFO is dependant of financial sustainability of the Castle. SCMP A policy had been established with the assistance of Defence Procurement specialists. RISK MANAGEMENT POLICY Risks identified and managed in conjunction with Audit Committee ICOME TAX EXEPTION Board has been successful in applying for Income Tax Exemption.

MANAGEMENT REPORT Transfer of the Castle to Department of Arts and Culture (DAC) Castle Management Act Repeal Bill PCD recommended Repeal Bill be withdrawn Minister of Defence remains Executive Authority to the CCB Ministerial Instruction dd July 2008 terminating the transfer of the Castle to DAC DOD appeared before the PCD deliberating the future management and administrative control of the Castle with the framework of the transfer process according to Castle Management Repeal Bill. PCD considered inputs from DOD and Dept of Arts and Culture. Thereafter is was recommended that the Castle Management Act Repeal Bill was withdrawn in June 2008. Withdrawal of Repeal Bill results in confirmation MoD remains Executive Authority to CCB Decision formalised by Ministerial Instruction instructing the transfer of the Castle be terminated and all discussions with the Dept of Arts and Culture ito the transfer was concluded with immediate effect..

MANAGEMENT REPORT Implementation of recommendations as tabled in a PCD Report Addressing all non-compliance matters Strategic Business Plan Financial Sustainability International Best Practices Holistic Preservation and Maintenance of Castle of Good Hope Responsible Management of the Castle as Immovable Military Heritage Asset The PCD tabled a report on 17 November 2008 including recommendations towards effectively addressing non-compliance matters as well as future improvement on corporate governance and management aspects. ADDRESSING ALL NON-COMPLIANCE MATTERS The Board focused on rectification of non-compliance matters duer year under review. STRATEGIC BUSINESS PLAN The need for the establishment of such a plan was reiterated as one of the key focus areas towards successful management practices. A draft document was established. FINANCIAL SUSTAINABILITY Additional sources of income should be explored to achieve financial sustainability and all income generated in the Castle should be reinvested in the Castle Management in order to fund maintenance projects, the development of social and educational programmes and critical management appointments. A process to transfer the Het Bakhuys function and venue hire facility from the ASB Western Cape to the CCB was initiated. INTERNATION BEST PRACTICES

MANAGEMENT REPORT Events after the Reporting Date – Transfer of Het Bakhuys In order to obtain self-sustainability, a decision was made to transfer the Het Bakhuys function and venue hire facility from ASB Western Cape to the CCB A comprehensive analysis was completed on DOD Funds and Institutions policy, assets, personnel and financial statements and ito ASB WC Officers’ Club’s legal grounds wrt occupation

PERFORMANCE INFORMATION Highlights The majority of non-compliance matters raised in previous audits were resolved during FY08/09 Challenges Self-sustainability: CCB is exploring additional sources of funding in order to appoint Executive Director and CFO

PERFORMANCE INFORMATION Departmental Support SANDF personnel from ASB Western Cape (Rm1.8) CCB Chairperson – Chief Logistics DOD support bmo subsistence and travel allowance Logistics Division provide monthly feedback to C SANDF ito PCD recommendations SAAF assisted with procurement specialist advice towards Supply Chain Management Policy DOD Fin Div plays an advisory role to the CCB ito PFMA requirements Strategic Objectives A/R summarises progress made towards achieving the three strategic objectives

CORPORATE GOVERNANCE Castle Control Board Castle placed under juristic control of CCB Established ito Castle Management Act Held 6 meetings to ensure successful implementation of objectives All vacancies filled on Board with exception of Western Cape Provincial Legislature and Executive Director

CORPORATE GOVERNANCE Policy Development and Implementation Human Resources Management Plan Conservation Management Plan Strategic Business Plan Maintenance Plan Supply Chain Management Policy Materiality and Significance Framework 09/10

CORPORATE GOVERNANCE Report of the Audit Committee Audit Committee Charter, Members and Attendance Responsibilities Internal Control Internal Audit Risk Management and other policies Quality of Management Reporting Evaluation of Financial Statements

HUMAN RESOURCES MANAGEMENT Statistics and information published ito Chapter 1, Part III J.3 of the Public Service Regulations of 2001 Castle Section – 18 members: 10 remunerated by DOD (SANDF and PSAP) 8 remunerated by CCB (3 Castle Guides, bookkeeper, fin clerk, cashier, assistant and museum assistant) Salaries 10% of Castle’s annual income CCB endeavours paying a honorarium to members

AUDITOR-GENERAL REPORT Report on the Financial Statements and Performance Information for the year ended 31 March 2009 Unqualified report by Auditor-General, highlighting non-compliance matters ito applicable legislation and matters of governance

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