castle control board presentation to the portfolio committee on defence and military veterans...
TRANSCRIPT
Castle Control Board
Presentation to the Portfolio Committee on Defence and Military Veterans
Presented by:Lt. Gen. JT Nkonyane & CT Gilfellan
10 October 2013
1
Aim
The aim of this short presentation is to provide:
1.A brief organizational update on the CCB2.A summary of our 2012/13 Annual Report
• Performance against pre-determined objectives• Financial performance• Major issues identified by the AG and progress in
addressing them
3.The Board’s new Vision and Strategic Foci4.Question and the Way Forward
CCB OrganogramCCB Organogram
The CCB BoardThe CCB Board
Organization/Constituency NameRepresentative of the South African National Defence Force – Chief of Logistics
Lieutenant General J.T. Nkonyane (Chairperson)
Representative of the Cape Town Regional Chamber of Commerce and Industry
Mr K. Jimba
Representative of the Iziko Museums of South Africa
Ms R. Omar
Representative of the Department Of Public Works
Mr F. Johnson
Representative of the South African Heritage Resources Agency
Mr G. Ontong
Officer Commanding Army Support Base Western Cape
Colonel R. Mongo
Representative of the City of Cape Town Mr D. HartRepresentative of the South African Tourism Board (WESGRO)
Mr M. Parker
Representative of the Western Cape Provincial Legislature
Mr C. Dowman
Executive Director Vacant as on 31 March 2013Two representatives appointed by the Minister of Defence
Adv. D. MitchellMs A. Aggenbach
Board Secretary Mr D Williams
Mandates• The CCB is mandated in terms of the
Constitution of South Africa, Act 108 of 1996• Legislative mandates of the CCB:
Legislation Responsibility
Castle Management Act, Act 207 of 1993
Mandated the CCB to govern and manage the Castle on behalf of the MOD&MV
Public Finance Management Act, Act 1 of 1999
Designated the CCB a public entity (Schedule 3A)
Defence Endowment Property and Account Act, Act 33 of 1922
The Castle of Good Hope, as defence endowment property, was transferred to the ‘defence organisations’ for the exclusive use by, and benefit of the SANDF and DOD
National Heritage Resources Act, Act 25 of 1999
The Castle of Good Hope is a declared heritage site and should be managed within the legislative framework
CCB Strategic ObjectivesCCB Strategic Objectives
• To preserve and protect the military and cultural heritage at the Castle
• To maximize the Castle’s tourism potential
• To optimize public access to the Castle
The foundation for the efficient and cost-effective discharging of the mandate is good corporate governance, risk-management and sound financial management and best-practice administrative systems
Key Points from the Audit Key Points from the Audit
CommitteeCommittee Unqualified audit report from the Auditor-General
(with KPMG), shows good progress achieved
Audit Committee in place, process to appoint new internal audit service provider underway
Ensuring adherence to all Policies and Procedures to comply with all SCM and procurement prescripts
Performance management information needs a more precise definition and focus; significant progress
R13.9m in accumulated surplus – National Treasury approval now obtained
Appointment of CFO will strengthen management team and improve delivery
Executive Summary of Executive Summary of
Performance Against Pre-Performance Against Pre-determined Objectivesdetermined Objectives
Highly successful Military Tattoo (4000 spectators)Shell-UK Awards evening with their top 300 executives Jive Slave marathon with 5000 runners through the
CastleAnglo-Boer War Philatelic Exhibition attracted 3000
visitorsAnnual paying tourist figures increased by 3519Month of Photography (October) attracted more than
3000Annual trading surplus of R883 000 achievedHeritage Day 2012 (free access) numbers exploded
from 1795 to 3265Brazilian National Day and Exhibition in September
2012
Programme 1: Programme 1: Administration & Corporate Administration & Corporate
GovernanceGovernance
Performance Indicator
Reporting Intervals
Annual Target Actual Performance
No. Board Meetings
Quarterly 4 9
Number of Audcom Meetings
Quarterly 4 4
HR Management
Quarterly R1 369 000 R863 829
Supply Chain Quarterly To be reviewed and approved
Not approved
Audit Reports Quarterly R329 000 R328 000
Programme 2: Programme 2: Preservation & Interpretation Of Preservation & Interpretation Of
Castle As Heritage SiteCastle As Heritage Site
Performance Indicator
Reporting Intervals
Annual Target Actual Performance
No. of visiting learners
Quarterly 21 000 29 012
Number of displays
Quarterly R242 000 R254 174
Repairs and maintenance
Quarterly R2 941 000 R122 006
Lean and safe environment
Quarterly R255 000 R195 040
Programme 3: Programme 3: Maximizing The Castle’s Maximizing The Castle’s
Tourism PotentialTourism Potential
Performance Indicator
Reporting Intervals
Annual Target Actual Performance
Tourist numbers Quarterly 136 000 140 888
Programme 4: Programme 4: Increase Castle’s Public Increase Castle’s Public Profile And Community Profile And Community
Access Access
Performance Indicator
Reporting Intervals
Annual Target Actual Performance
Income from events and other tourism activities
Quarterly R262 500 R426 950
Marketing and publications
Quarterly R93 000 R95 234
FY 2012/13: Summary Of Financial FY 2012/13: Summary Of Financial PerformancePerformance
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
1.Predetermined Objectives:•Performance indicators and targets not well defined
Corrective Actions:•Appointment of Executive Director and now CFO, trained on the requirements of the FMPPI•Board and management will redefine performance indicators to be more specific as to address the required outcome•Management engaged AG & Treasury and it is now done for new FY. E.g. Annual increase in the total number of visitors to the Castle*
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
2. Predetermined Objectives:•Strategic Plan incomplete
Corrective Actions:•Accounting Officer in consultation with Board will update and ensure that Strategic Plan guidelines are adhered to.•Done and reflected in 2014/15 APP
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
3. Budgets: •Non-approval from National Treasury to retain surplus
Corrective Actions
•Letter was submitted to the new Executive Authority and Treasury. •Done, approval obtained in September 2013
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
4. Expenditure Management:•Accounting Authority did not take effective steps to prevent irregular expenditure
Corrective Actions:•Internal Controls are being developed to prevent occurrence of irregular expenditure•Accounting Officer and Accounting Authority will maintain an irregular expenditure register, which will contain detailed schedule for financial year listing and irregular expenditures incurred. •Done: this was immediately put in place.
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
5.Internal Audit Function:
•No Internal Audit function for some part of the year
Corrective Action:
•Internal procurement process was aborted due to SCM challenges•New process has been initiated •Imminent appointment of CFO will also assist
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
6. Procurement and Contract Management:•Goods and services with transaction value below 500 000 procured without obtaining required price quotations, as required by Treasury Regulation 16A6.1•Contracts and quotations awarded to suppliers whose tax matters had not been declared by SARS to be in order as required by TR 16A9.1(d) and Preferential Procurement Regulations•The preference point system was not applied in all procurement of goods and services above R30 000 as required by section 2(a) of the PPPFA and TR16A6.3(b) •Contracts were awarded to bidders based on preference points that were not calculated in accordance with requirements of the PPPFA
Corrective Actions•Issues raised by the Auditor-General assimilated and addressed by the newly appointed Accounting Officer•The SCM policy being amended to address these issues
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
7. Annual Financial Statements:•The financial statements not prepared in all material respects in accordance with requirements of section 55(1)(b) of PFMA
Corrective Action:•Material misstatements were corrected resulting in the financial statements receiving an unqualified opinion
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
8. Leadership:•Accounting authority did not establish and communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.•Accounting authority did not implement SCM and performance reporting framework that complies to requirements of PFMA and SCM Regulations, as issued by National Treasury Regulations•Castle Manager has not been trained on and exposed to the requirements of the FMPPI•Accounting authority has not implemented internal policies and procedures for performance information management and reporting
Corrective Actions:•Shortcomings in the SCM policy being addressed – new draft updated•Appointment of the CFO will ensure all procurement is done in terms of PFMA regulations and Treasury prescripts
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
9. Financial And Performance Reporting:•Lack of monitoring and review to ensure correct application of the requirements of legislation ito SCM•Management has no supervisory and review function in place to govern the procurement of expenditure relating to the Castle Control Board to ensure that irregular and wasteful expenditure is timeously identified.•The entity relied on consultants to prepare the annual financial statements and the responsibility to review the financial statements was not delegated to any of the personnel at the entity as the finance personnel do not have the necessary knowledge to perform such a review.
Corrective Actions:•Internal control mechanisms in place were inadequate as they were determined by a SCM policy not fully compliant with the PFMA•Misstatements in the financial statements occurred in the draft, submitted for audit and adjustments were made after deliberation between management and the Auditor-General
Issues Raised by the AG & Our Issues Raised by the AG & Our Corrective ActionsCorrective Actions
10. Governance:•Internal Audit not adequately resourced and functional for duration of the year
Corrective Actions:•Previous contract with IA expired 31 October 2012 and new appointment to follow shortly•Board initiated process aborted due to SCM contradictions•New advert already placed and appointment imminent
The Board’s New Vision and The Board’s New Vision and Strategic FociStrategic Foci
Strategic planning session 15 August: Castle positioned as SA’s next UNESCO World Heritage Site
Ten-point Heritage Tourism Action Plan adopted – the Castle repositioned as a living, vibrant and inclusive heritage precinct
Seven strategic themes identified dealing with: (1) protecting the cultural significance of the site, (2) exploiting the full tourism potential, (3) marketing, public relations & communication, (4) human resource development, (5) a customer-focus, (6) heritage enterprise development and (7) demonstrate leadership with partners in the heritage and tourism field.
Thank You & QuestionsThank You & QuestionsCONTACT DETAILS:
Calvyn GilfellanExecutive Director/CEOCastle Control Board