CASTLE CONTROL BOARDCASTLE CONTROL BOARD

Presentation of the 2013/14 Annual Presentation of the 2013/14 Annual Report and Financial Statements to Report and Financial Statements to the Portfolio Committee on Defence the Portfolio Committee on Defence

and Military Veteransand Military Veterans

Lt. Gen (Ret) JT Nkonyane & Mr. CT Gilfellan Lt. Gen (Ret) JT Nkonyane & Mr. CT Gilfellan 16 October 201416 October 2014

Presentation Purpose & Presentation Purpose & OutlineOutline

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 2013/14b.Outline of programme performancec.Area/Programmes that require more fundingd.Challenges that impacted on the achievement of objectives/reasons for underperformancee.Plans and resources needed to address such challenges

A: An Overview of Overall A: An Overview of Overall ExpenditureExpenditure

Description 2013/14R’000

2012/13R’000

Explanation

Salaries and Wages

1 775 864 New appointments: Executive Director, Marketing Co-ordinator, Heritage Coordinator

Audit Fees 309 328 Statutory item, we always try to reduce cost

Cleaning Services

154 123 Standing contract, Cleaning material purchases

Special Days 144 0 King Cetshwayo exhibition; Freedom Day; Heritage Day

Advertising 141 73 Promotion of the CGH through extensive marketing campaigns

B: Outline of Programme B: Outline of Programme Performance Performance

Program 1: Administration Through Good Program 1: Administration Through Good Corporate GovernanceCorporate Governance

Strategic objectives

Actual Achievement 2012/13

Planned Target2013/2014

Actual Achievement2013/2014

Deviation from planned target to Actual Achievement for 2013/2014

Comment on deviations

Number of Castle Control Board meetings

9 4

 

 

7 Exceeded 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

4 4 3 Missed target by 1 Although the Audcom had more than four (4) meetings, the engagements with the AGSA were not recorded as such.

B: Outline of Programme B: Outline of Programme PerformancePerformance

Programme 2: Preservation, Interpretation Programme 2: Preservation, Interpretation and Showcasing of he History of the Castleand Showcasing of he History of the CastleKey

Performance Indicators

Actual Achievem

ent 2012/13

Planned Target

2013/2014

Actual Achievem

ent2013/201

4

Deviation from

planned target to

Actual Achievemen

t for 2013/2014

Comment on deviations

Number of learners visiting the Castle of Good Hope.

29 012 25 200 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 174 R259 000 R262 764

 

 

On target

 

 

 

Repairs and Maintenance of the Castle of Good Hope

R122 006 R797 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 040 R271 000 R276 605

 

On target  

B: Outline of Programme B: Outline of Programme PerformancePerformance

Program 3: Maximizing the Tourism Program 3: Maximizing the Tourism Potential of the Castle of Good HopePotential of the Castle of Good HopeKey

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.

140 888 145 000 141 084 Missed 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.

B: Outline of Programme B: Outline of Programme PerformancePerformance

Program 4: Increased Public Profile and Program 4: Increased Public Profile and Positive Perception Across All Sectors of Positive Perception Across All Sectors of

the Communitythe CommunityKey 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

Projected income from events, film and fashion shoots.

R426 950

 

 

R275 625 R585 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 000 R69 011 Missed target by R34 989

With the appointment of the chief executive (who is a marketing expert) all marketing collateral was reviewed and some suspended; hence this saving

C: Focus Areas/Programmes C: Focus Areas/Programmes That Require More FundingThat 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

D: Challenges that Impacted on D: Challenges that Impacted on the Achievement of the Achievement of

Objectives/Reasons for DeviationsObjectives/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.

E: Plans and Resources E: Plans and Resources Needed To Address Such Needed To Address Such

ChallengesChallengesChallengesChallenges

1. Underspent in Repairs and Maintenance

2. Slight underperformance in attracting bona fide tourists

3. Slight underspent in marketing material

Plans to Address ThemPlans to Address Them1. 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

E: Plans and Resources E: Plans and Resources Needed To Address Such Needed To Address Such

ChallengesChallengesChallengesChallenges

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 ThemPlans to Address Them4. 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.