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

2. 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.

3. 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

4. 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.

5. 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.

6. MANAGEMENT REPORT Events at the Castle
Total of 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 visitors to the Castle, additional guests attended functions and events at the Castle.
Film and Fashion Shoots remain a respectable source of income – R 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.

7. 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.

8. 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..

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Questions