1. CASTLE CONTROL BOARD Presentation of the 2013/14 Annual Report and Financial Statements to the Portfolio Committee on Defence and Military Veterans Lt. Gen (Ret) JT Nkonyane & Mr. CT Gilfellan 16 October 2014 CASTLE CONTROL BOARD Presentation of the 2013/14 Annual Report and Financial Statements to the Portfolio Committee on Defence and Military Veterans Lt. Gen (Ret) JT Nkonyane & Mr. CT Gilfellan 16 October 2014

2. Presentation Purpose & Outline The aim of the presentation is to respond to an invitation from the Portfolio Committee on Defence and Military Veterans to present the CCB’s 2013/14 financial and programme performance: a.Overview of overall expenditure for the financial year 2013/14 b.Outline of programme performance c.Area/Programmes that require more funding d.Challenges that impacted on the achievement of objectives/reasons for underperformance e.Plans and resources needed to address such challenges

3. A: An Overview of Overall Expenditure Description2013/14 R’000 2012/13 R’000 Explanation Salaries and Wages1 775 864New appointments: Executive Director, Marketing Co-ordinator, Heritage Coordinator Audit Fees 309 328Statutory item, we always try to reduce cost Cleaning Services 154 123Standing contract, Cleaning material purchases Special Days 144 0King Cetshwayo exhibition; Freedom Day; Heritage Day Advertising 141 73Promotion of the CGH through extensive marketing campaigns

4. B: Outline of Programme Performance Program 1: Administration Through Good Corporate Governance Strategic objectives Actual Achievement 2012/13 Planned Target 2013/2014 Actual Achieveme nt 2013/2014 Deviation from planned target to Actual Achievement for 2013/2014 Comment on deviations Number of Castle Control Board meetings 9 4 7Exceeded target by 3 Two (2) extraordinary Board meetings were held to finalise the ED’s appointment and contract and another (1) to bid farewell to the chairperson. Number of Audit and Risk Committee meetings 443Missed target by 1Although the Audcom had more than four (4) meetings, the engagements with the AGSA were not recorded as such.

5. B: Outline of Programme Performance Programme 2: Preservation, Interpretation and Showcasing of he History of the Castle Key Performance Indicators Actual Achievement 2012/13 Planned Target 2013/2014 Actual Achievement 2013/2014 Deviation from planned target to Actual Achievement for 2013/2014 Comment on deviations Number of learners visiting the Castle of Good Hope. 29 01225 200 29 391 Exceeded target by 4 191 The collective marketing efforts and programmes of the CCB and its partners such as Iziko could have attributed to this healthy increase Expenditure for maintenance and development of displays at the Military Museum R254 174R259 000 R262 764 On target Repairs and Maintenance of the Castle of Good Hope R122 006R797 000 R117 518 Missed target by R679 482 This significant underspent is due to bona fide savings in lieu of the DPW and DOD preventative maintenance on the site, anticipation of the major Castle overhaul to take place in the new year and imprecise budgeting at the beginning of the MTEF cycle. Expenditure to ensure a clean and safe environment. R195 040R271 000R276 605 On target

6. B: Outline of Programme Performance Program 3: Maximizing the Tourism Potential of the Castle of Good Hope Key Performance Indicator Actual Achievement 2012/13 Planned Target 2013/2014 Actual Achievement 2013/2014 Deviation from planned target to Actual Achievement for 2013/2014 Comment on deviations Total expected number of visitors to the Castle of Good Hope. 140 888145 000141 084Missed target by 3 916 (2.7%) The closing of the Castle (15 December 2013) and activities on the Grand Parade around the passing on of former President Nelson Mandela in December 2013 saw a decrease for what is usually our best month. We are nevertheless slightly up on the previous financial year.

7. B: Outline of Programme Performance Program 4: Increased Public Profile and Positive Perception Across All Sectors of the Community Key Performan ce Indicators Actual Achievement 2012/13 Planned Target 2013/2014 Actual Achievement 2013/2014 Deviation from planned target to Actual Achievement for 2013/2014 Comment on deviations Projected income from events, film and fashion shoots. R426 950 R275 625R585 200 Exceeded target by R309 575 As the public exposure and image of the Castle is boosted, so does its appeal as a filming, events and exhibition site; hence the significant overachievement Printing, publication and marketing of the Castle of Good Hope. R95 234 R104 000R69 011Missed target by R34 989With the appointment of the chief executive (who is a marketing expert) all marketing collateral was reviewed and some suspended; hence this saving

8. C: Focus Areas/Programmes That Require More Funding 1.Expansion of heritage exchange programme 2.Development of the Integrated Conservation Management Plan 3.Increased funding for marketing 4.Increased resources for security R298 000 R710 000 R978 000 R760 000

9. D: Challenges that Impacted on the Achievement of Objectives/Reasons for Deviations Of the nine (9) pre-determined objectives articulated in the 2013/14 Annual Performance Plan of the CCB, only three (3) were not fully met. They are: Page 24, Programme 1, Number of Audit and Risk Committee Meetings: The reason for this deviation is that although the Audcom had more than four (4) meetings, the engagements with the AGSA were not recorded as such. Page 26, Programme 2, Repairs and maintenance of the Castle of Good Hope: This significant underspent is due to bona fide savings in lieu of the DPW and DOD preventative maintenance on the site, anticipation of the major Castle overhaul to take place in the new year and imprecise budgeting at the beginning of the MTEF cycle. Page 27, Programme 3, Total expected number of visitors to the castle of Good Hope: The closing of the Castle (15 December 2013) and activities on the Grand Parade around the passing on of former President Nelson Mandela in December 2013 saw a decrease for what is usually our best month. We are nevertheless slightly up on the previous financial year.

10. E: Plans and Resources Needed To Address Such Challenges Challenges 1. Underspent in Repairs and Maintenance 2. Slight underperformance in attracting bona fide tourists 3. Slight underspent in marketing material Plans to Address Them 1. This perennial issue will be addressed through the renovations programme and we have now acquired the maintenance plan of Phase 1 helping us with scheduling. 2. Appointed a tourism coordinator and will increase marketing 3. New CEO is a marketing specialist and reviewed all material with a view to go e-marketing and social media marketing

11. E: Plans and Resources Needed To Address Such Challenges Challenges 4. Various problems with our predetermined objectives 5. Various issues with the procurement of goods and services 6. Various issues relating to internal control Plans to Address Them 4. We were unsuccessful trying to correct this during the year – now corrected 5. This was driven by two major contracts (cleaning & hygiene) that now has been put out to tender 6. We have now appointed a CEO, a CFO, an internal audit team and the Audit Committee is fully operational.