Provider of Efficient and Effective Aviation Services CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CAAB ACRONYMS …
AFCAC African Civil Aviation Commission AGA Aerodromes and Ground Aids AIR Airworthiness of Aircraft AMEL Aircraft Maintenance Engineer’s License AMHS Air Traffic Services Message Handling System AMO Approved Maintenance Organisation ANS Air Navigation Services ASFO Aviation Security Facilitation Officer ASIM Aviation Security Inspector Manual ASSO Aviation Safety Standards Oversight ATCO Air Traffic Controllers ATO Approved Training Organisations ATPL Airline Transport Pilot Licence AVSEC Aviation Security Service CAAB Civil Aviation Authority of Botswana CATV Category V Ethernet cabling CCM Cabin Crew Member CMA Continuous Monitoring Approach CPL Commercial Pilot Licence DAI Directorate of Accidents Investigation EI Effective Implementation EMS Environmental Monitoring System ERM Enterprise Risk Management ESAF Eastern and Southern African Region EU European Union FIA Francistown International Airport FIDS Flight Information Display System FOO Flight Operations Officers IATA International Air Transport Association ICAO International Civil Aviation Organisation ICVM ICAO Coordinated Validation Mission KIA Kasane International Airport MIA Maun International Airport MTC Ministry of Transport and Communications NCAFC National Civil Aviation Security Facilitation Committee NCASCP National Civil Aviation Security Certification Programme NCASFC National Civil Aviation Security and Facilitation Committee NCASP National Civil Aviation Security Programme NCASQCP National Civil Aviation Security Quality Control Programme NCASTP National Civil Aviation Security Training Programme NOTAM Notice to Airmen OPS Aircraft operations PMO Project Management Office PPL Private Pilot Licence SARPs ICAO Standards and Recommended Practices SARPs Standards and Recommended Practices SASO SADC Aviation Safety Organisation SPEDU Selibe Phikwe Economic Diversification Unit SSC Significant Safety Concerns SSKIA Sir Seretse Khama International Airport SSP State Safety Programme USAP Universal Security Audit Programme USOAP Universal Safety Oversight Audit Programme VPN Virtual Private Network
2 \\ // 3 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CORPORATE 1PROFILE
4 \\ // 5 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CORPORATE PROFILE …
The Civil Aviation Authority of Botswana (“CAAB”) is a Statutory Corporation established by the Civil Aviation Authority Act (CAP 71:04) of 2004. The continued existence of CAAB was provided for by the Civil Aviation Act, 2011 which repealed the previous Act establishing the Authority. CAAB is responsible for, amongst others, the regulation of air transport and enforcement of civil aviation regulations, the provision of air navigation services as well as the development and operation of airports and advising Government on civil aviation matters. Most of these functions were previously performed by the former Department of Civil Aviation (DCA). CAAB commenced full operations as an autonomous regulator on 1st April 2009.
VISION STRATEGIC OBJECTIVES as an autonomous organisation responsible for the regulation of air To be a world class provider of safe, Safety transport and enforcement of civil secure and sustainable aviation To enhance safety in the Botswana aviation regulations, the provision services. Civil Aviation system. of air navigation services as well as the operation and development MISSION Security of airports and advising the To enhance the Civil Aviation Government on civil aviation To effectively and efficiently security system in Botswana. matters. regulate and promote a safe, secure and sustainable aviation industry Efficiency Some of the new and additional in line with international standards To enhance the efficiency of the provisions of the Civil Aviation Act and norms. Civil Aviation system in Botswana. are:
VALUE S Sustainability • Establishment of a Directorate To maintain sustainable of Accident Investigation, CAAB commits to the following development and operational separate from CAAB, to which will shape the culture of the continuity by aviation operations in investigate aircraft accidents Conventions on aviation security to which Botswana is party and includes measures to address new and emerging organisation: Botswana. and incidents; threats against civil aviation. • Providing a regulatory Integrity Environmental Protection framework for the licensing Some of the new and additional provisions of the Aviation Security Act are: Act with consistency of actions, To minimise any adverse impact of air transport services to values, methods, measures, on the environment by aviation facilitate the implementation of • Measures to enhance the effectiveness of the aviation security system in Botswana and the capacity of CAAB principles, expectations and activities. air transport liberalisation in and other national security agencies to manage aviation security and respond to acts of unlawful interference outcomes. Botswana; with civil aviation; CIVIL AVIATION • Enhancing and clarifying • Measures for the protection of aircraft, aerodromes, passengers, crew members, ground personnel and air Accountability LEGISLATION further, the role of the Appeals navigation installations against acts of unlawful interference with civil aviation; Act with responsibility in all Tribunal to review the • Prevention against acts of unlawful interference with civil aviation including hijacking, the use of aircraft as interactions and are answerable for Two important Civil Aviation regulatory decisions of CAAB; weapons, the infiltration of weapons or hazardous materials and other new and emerging threats and the acts of our decisions and actions. enabling legislation are in force in and unruly or disruptive passengers at airports and on board aircraft; and Botswana. The Civil Aviation Act, • Stricter penalties to facilitate • Stricter penalties with the right deterrent effect to facilitate the effective enforcement of aviation security and Collaboration 2011 and the Aviation Security Act, the effective enforcement of the speedy resolution of security concerns. Work in unity and collaboration 2011 both became effective on 7th civil aviation regulations. with our colleagues, partners and October 2011. key stakeholders. The 2011 Aviation Security Act The Civil Aviation Act 2011 repealed designates CAAB as the appropriate Customer Focus and replaced the Civil Aviation authority responsible for aviation Strive for professionalism and Authority Act of 2004. security in Botswana. The Act serving customers to the best of our updates and modernises the existing ability. Many of the provisions in the enactments relating to aviation 2004 Act have been re-enacted security, brings into force provisions Continuous Improvement in the current Act including of International Work to improve the way we did the establishment of the Civil things before. Aviation Authority of Botswana
6 \\ // 7 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
ORGANISATIONAL ORGANISATIONAL
HISTORY HISTORY [CONTINUED] … …
The Authority commenced full operations on 1st April 2009 as a statutory Corporation under GROWTH ENABLING PROSPECTS the Ministry of Transport and Communications (MTC). The Civil Aviation Authority of Botswana (CAAB) was established by the Civil Aviation Authority Act, 2004 (CAA Act, 2004) Aviation being a complex and highly regulated business, calls which mandated CAAB to promote aviation safety and security and ensure the regular and for discussion between governing and regulatory bodies; and development of appropriate infrastructure. In this 71.32% efficient use and development of Civil Aviation in Botswana. regard, Botswana has in the past few years signed bilateral Botswana‘s rating of Effective Implementation agreements with other countries to facilitate the growth of by ICVM (ICAO Coordinated Validation Mission) GOVERNANCE the industry.
The Civil Aviation Authority of Botswana is a statutory corporation reporting BILATERAL SERVICE AGREEMENTS (BASA) to the Minister responsible for civil aviation, currently being the Minister of Transport and Communications. He is the Aeronautical Authority of Bilateral air service agreements are concluded between two Botswana, with the power to give written directions to CAAB and to delegate contracting countries to liberalise commercial civil aviation some of his or her functions to the Authority. services between those countries. The bilateral air services agreements allow for designated airlines of those countries CAAB is governed by a nine-member Board tasked with responsibility for the to operate commercial flights that cover the transport of general control and guidance on the performance and management of the passengers and cargo between the two countries. undertakings and affairs of the Authority. The Air Service Agreement also regulates frequency and The Civil Aviation Authority of Botswana strives to apply the overarching capacity of air services between countries, pricing and other corporate governance principles of fairness, accountability and transparency commercial aspects. CAAB has concluded these with 23 states and has adopted various measures and practices consistent with best practice worldwide. and implements the recommendations of various governance codes around the world. SAFETY MANAGEMENT SYSTEM AND ICAO COORDINATED VALIDATION MISSION A formal induction programme is arranged for new Board Members. Board Members are appointed for a maximum term of 3 years and are eligible for The Civil Aviation Authority of Botswana is committed to reappointment. enhancing the level of safety in Botswana. Botswana has an Maun accident track record which is above the Eastern and Southern International Airport capacity RULE OF LAW African Region (ESAF) average. 975per peak hour To enact and/or promulgate legal instruments as they become necessary. The Authority is on a continuous drive to improve its services especially in the area of Aviation Safety e.g. guidance material Kasane International Airport runway extension The Civil Aviation Act further authorises the Authority to provide and charge on the implementation of Safety Management System has for the following: been distributed to all stakeholders.
• Safety This will provide for regular exchange of safety data and • Inspection of Aircraft other safety oversight information. • Inssuance, renewal or variation of Personnel Licenses • Aircraft landing The 2015 International Civil Aviation Organisation • Aircraft parking Coordinated Validation Mission (ICVM) has put Botswana‘s 3000metres • Air navigation and communications rating at 71.32% of Effective Implementation compared to • Fuel handling 53.78% in 2013. • Passenger services • Air operator’s certificate • Approval of aircraft maintenance organisations • Noise and environmental pollution • Air transport licenses • Traffic handling • Aircraft handling • Use or rental of any assets of the authority • Any other services related to the operation of aerodromes.
8 \\ // 9 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
GLOBAL AVIATION CLIMATE TARGETS & TOURISM TRENDS 1,402 Commercial airlines 35% Improve 1.5% Air transport carries around Aviation will improve its fleet fuel … e ciency by an average of 1.5% per 35% of world trade by value annum between 2009 and 2020, a figure ($6.4 trillion in 2014) and less The world of air Beyond the industry 3,883 the industry is currently exceeding than 1% by volume transport, 2014 Aviation’s global employment and GDP impact, 2014 Airports with scheduled Stabilise com m ercial flights From 2020, net carbon emissions from 62.7 million $2.7 trillion (there are 41,788 airfields in the High value, time sensitive aviation will be capped through carbon- All figures are for 2014, unless otherwise world, including military and neutral growth 36.3 million $892.4 billion Proportion of global trade stated, to give a single set of data for one general aviation) year. Where available, the latest figures are Tourism transported by air Reduce 50% also noted. These should be viewed as a catalytic By 2050, net aviation carbon emissions snapshot of the aviation sector in 2014 and will be half of what they were in 2005 not as part of a trend. Although previous Aviation: Benefits Beyond Borders reports 5.2 million $355 billion Induced have used the same economic impact 11.2 million $761.4 billion Indirect 173 technique, di erences in data sources ENVIRONMENTAL Air navigation service providers 34.6% available between years mean many of the 9.9 million $664.4 billion Aviation direct annual reports are not directly comparable. By value PROGRESS JOBS GDP The air transport industry has made significant progress in reducing its 26,065 environmental impact: Commercial aircraft in service CO2 emissions per seat kilometre 62.7MILLION $2.7 TRILLION 3.5% » 70%+ since first jet aircraft Jobs supported by aviation Aviation’s global economic impact of global GDP supported by aviation Perceived noise worldwide (including direct, indirect, induced and » 75%+ since first jets tourism catalytic) 51,554 0.5% By volume » Over nine billion tonnes of CO 2 Routes served globally in 2014 These figures represent a snapshot of the avoided since 1990 through a DIRECT JOBS benefits that aviation activities deliver to the (in 2015 the number was 52,964). combination of new technology, global economy. They do not include other 3.3 BILLION Of these, 17,370 unique city-pairs operational e ciencies and economic benefits of aviation, such as the are served Passengers carried by airlines infrastructural improvements, 447,500 jobs or economic activity generated when including airlines spending $3 companies or whole industries exist because Airport operators (in 2015, 3.57 billion passengers trillion on over 25,000 new aircraft (work for the airport operator) air travel makes them possible. Neither do were carried) they include the intrinsic value that the speed » The industry has invested in new and connectivity of air travel provides, or 32.8 MILLION 739 MILLION technology, better operations and 5,468,000 domestic tourism and trade. Including these Asia-Pacific in front infrastructure improvements Other on-airport would increase the employment and global Commercial flights worldwide Tonnes of carbon dioxide (CO2) Regional passenger tra c split (retail, car rental, government economic impact numbers several-fold. (in 2015, there were 34.8 million flights) emitted by airlines » Civil aerospace spends $15 billion agencies such as customs and per year on e ciency-related R&D immigration, freight forwarders 5% 3% (in 2015, it was 781 million tonnes). This is and some catering) 8% 2% of the global human emissions of 36 » Sustainable aviation fuels could 33% reduce the sector’s CO2 footprint by as Asia-Pacific billion tonnes. Around 80% of aviation 2,669,000 Europe CO2 is emitted from flights over 1,500 much as 80%. Over 2,200 commercial 21st North America Airline sta kilometres in length, for which there is flights have taken place so far If aviation were a country, it would rank Latin America (flight and cabin crews, executives, 25% & Caribbean no practical alternative form of transport » Air tra c management 21st in size by GDP Middle East ground services, check-in, training, modernisation could save millions maintenance sta ) Africa of tonnes of CO2 1,101,000 26% Civil aerospace sta 3.8x (engineers and designers of civil aircraft, engines and components) Aviation jobs are, on average, 3.8 times more productive than other jobs. By opening markets, enabling knowledge 224,000 transfer and other catalytic e ects, 54% Air navigation aviation also makes jobs in other sectors service providers of international tourists (air tra c controllers, executives) more productive travel by air Source AVIATON BEYOND BORDERS - GLOBAL SUMMARY JUNE 2016
10 \\ // 11 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CHAIRMAN’S 2REVIEW
12 \\ // 13 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CHAIRMAN’S REVIEW …
nother financial year has gone by and I, once again, have the pleasure and privilege Ato make this statement, this time as part of the Civil Aviation Authority of Botswana (CAAB) Annual Report for the year 2015/2016. CAAB’s continued recognition that it is a significant driver of other sectors of the economy was a factor in its growth during the period under review. In this regard, it was gratifying to note that CAAB made strides in achieving the objective for which it was established which is to promote the safe, regular, secure and efficient use and development of civil aviation in the country.
In the fulfilment of its mandate of providing strategic The development and modernisation of major airports direction and leadership including setting goals and continued during the period under review. Notably, the objectives for the organisation, the Board approved a development of the Sir Seretse Khama International Strategic Plan covering the period 2015 - 2020 during Airport passenger terminal building was completed the period under review. As part of the process in the and the terminal building was officially opened by His development of the Strategic Plan, a detailed review Excellency the President Lt. General Dr. Seretse Khama Ian of the internal and external environment, which Khama on 16th October 2015. Works for the improvement enabled the Authority to identify a SWOT analysis, was of Maun and Kasane International Airports, entailing undertaken. The process entailed extensive consultations the construction of a new Air Traffic Control Tower and with stakeholders to ascertain their expectations and Equipment Room in Maun; a passenger terminal building; receive inputs. The Strategic Plan defines the Strategic an Air Traffic Control Tower and Equipment Room in Foundations of the Authority in terms of its Vision, Kasane, continued during the period under review. Mission and Values. It also sets out CAAB’s Strategic Intent which is to transform the Authority into an effective and CAAB achieved its mandate during the year 2015/2016 innovative regulator that contributes to the development largely due to the unwavering commitment of the Board, of a sustainable and environmentally friendly aviation Management and staff of CAAB as well as the support industry by investing in its human capital and increasing of the aviation industry in Botswana. I am particularly its revenue base, thus reducing Government subventions. pleased that, following a huge amount of hard work, the Following the approval of the Strategic Plan, CAAB signed Country was able to come out of the Significant Safety a Shareholder Performance Agreement (Shareholder Concerns (SSCs) situation resulting from an assessment Compact) with the Government of Botswana represented by the International Civil Aviation Organisation (ICAO) by the Ministry of Transport and Communications. Coordinated Validation Mission (ICVM) of 2013. My The purpose of the Shareholder Compact is to enhance sincere thanks therefore go to everyone who played a role the productivity and governance of CAAB through in the work that was carried out to achieve this important an effective relationship between CAAB and the milestone. Government as the Shareholder. The Shareholder Compact defines the mandate from the Shareholder to In conclusion, I would like to thank members of the the Board and to inform the Board of the Shareholder’s CAAB Board, past and present, whose support was objectives and expectations. The Compact also sets out instrumental in providing leadership and support to certain undertakings required from the Shareholder by Management and staff. My thanks could be incomplete the CAAB Board and Management. without special mention of the Ministry of Transport and Communications which went a long way to enable CAAB The Board held meetings to address key issues affecting to fulfil its mandate. the Authority as required under the Civil Aviation Act, 2011. However, the regularity of meetings of Board Committees was affected by vacancies in the membership of the Board which took some time to be filled. This notwithstanding, the observance of good corporate governance was not affected as the Authority continued to adhere to applicable good corporate governance principles such as transparency, accountability and Mark John Sampson fairness which have been incorporated onto the Strategic Chairman Plan.
14 \\ // 15 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
BOARD BOARD
MEMBERS MEMBERS [CONTINUED] … …
The Board works through Committees to ensure that matters receive closer scrutiny while improving the effectiveness and pace of high level decision making. The current Board and Committee composition is set out below:
1. MARK JOHN SAMPSON 5. MOTEBELE RASHIMI SENTLE BOARD CHAIRMAN BOARD MEMBER Captain Mark John Sampson was first appointed Chairman of the Civil Aviation Authority of Botswana’s in April Mr Motebele Rashimi Sentle was appointed to the CAAB Board in 2013. Mr Sentle is a retired Air Traffic Controller 2011. Captain Sampson is a veteran Pilot having received his wings in1974. He became an airline Captain in 1980 having served the Department of Civil Aviation as an Air Traffic Controller from 1975 to 2010 when he retired. and was one of the first citizens to get this qualification. Captain Sampson has 16 000 hours flying and has been an At his retirement, he held the position of Chief of Air Traffic Services. Mr Sentle is a pioneer Air Traffic Controller Advanced Flight Instructor for twenty (20) years. and was one of the first citizen qualified Controllers. He previously acted for more than a year as Director of Civil Aviation. 2. ANTHONY GLYNDWR REES BOARD MEMBER 6. THEMBINKOSI JOHNSON Mr Anthony Glyndwr Rees is a Chartered Civil Engineer and a Fellow of the Chartered Institute of Highways BOARD MEMBER and Transportation. Mr Rees is the Managing Director and sole shareholder of Haas Consult-SRA (Pty) Ltd. He has Thembinkosi Johnson is a pilot by Profession. He joined the Military, Botswana Defence Force in 1987. He retired over 50 years professional experience as Resident Engineer, Roads Engineer Geotechnical/Materials Engineer and from active military at a rank of Lt Colonel in October 2011 after 24 years of active service. Project Manager/Director for numerous construction projects and new roads projects throughout Africa. He holds a BSc (Hons) from the University of Wales. A helicopter Pilot, Mr Johnson qualified as a pilot in April 1990. In 1994, four years after qualifying as a pilot he became a qualified Flying Instructor. In January 1990, he was appointed a Squadron Commander. He later, in 2006, 3. ONALENNA SECHELE joined the VVIP squadron as Chief Helicopter Pilot. BOARD MEMBER Ms Onalenna Sechele was appointed in the CAAB Board as the mother Ministry of Transport and Communications Currently running Defence and Aviation Services, a consultancy company that deals with Defence procurement representative on 1 January 2016. She is Deputy Permanent Secretary, Ministry of Transport and Communication and associated Aviation services, he was appointed to the Civil Aviation Authority Board in February 2016. responsible for Transport. 7. ASAD PETKAR He was appointed Deputy Permanent Secretary for Transport on 1 September 2015. With a civil service career BOARD MEMBER spanning over 16 years, her responsibilities as Deputy Permanent Secretary - transport include and not limited Mr Asad Petkar is currently the Chief Operating Officer and a shareholder at EOH Consulting, a management to Strategic Planning for the entire transport sector, overseeing of project for the sector including those of the consultancy firm. He joined the Civil Aviation Authority of Botswana Board in January 2016. Ministry’s Parastatals. Throughout his career spanning over 15 years, Mr Petkar has focused on developing and applying innovative Ms Sechele completed a post Graduate Certificate in Telecommunication Regulation and Masters in Communications solutions in a number of areas that focused on Corporate Performance Improvement. Policy with a dissertation in Exploring Synergies that exist between the Postal services, Telecommunication and ICT. His consulting experience has covered a number of areas in strategy development, audit and execution training and project management amongst others. 4. LT. GENERAL TEBOGO MASIRE (RTD) BOARD MEMBER Asad Petkar is a fellow of the Advanced Performance Institute (API), which provides research, consulting and Lt. General Tebogo Masire (Rtd) is the former Commander of the Botswana Defence Force. He retired from the training in Performance Management to organisations globally. In addition, he is a Certified Balanced Scorecard military in July 2012 after 5 years as the Commander of the Defence Force. He joined the Civil Aviation Authority Practitioner. of Botswana Board in 2013. A Master in Commerce (Information Technology) graduate, has served on a number of Boards. An avid Aviator, Lt. General Masire has over 4000 flying hours on fixed wing and helicopters. His flying career has taken him to over 35 countries as a pilot. Lt General Masire first worked for the Department of Civil Aviation 8. GEOFFREY PUSELETSO MOSHABESHA (a Precursor of the CAAB) as an Air Traffic Controller before joining the Botswana Defence Force at its inception in CEO AND EX OFFICIO BOARD MEMBER 1977, as an Officer Cadet. Geoffrey Puseletso Moshabesha assumed duty as Chief Executive Officer of the Civil Aviation Authority of Botswana on 5th January 2015. Mr Moshabesha has 45 years’ experience in the aviation industry. He served his During his 35 year illustrious military career, Lt. General Masire held various operational, staff and command native country, Lesotho, as Director of Civil Aviation before joining the International Civil Aviation Organisation appointments. He reached the pinnacle of his career in 2006 when he was appointed Commander of the BDF - (ICAO) at its Head Office in Montreal, Canada and as well as ICAO Regional Office (Nairobi, Kenya) as Director for making him the Fourth to ever hold that position. Some of the major developments during his command include the Eastern and Southern Africa Region. He served ICAO for a cumulative period of over 15 years. An aviation the induction of the first female officers in 2007 and the establishment of the Defence Command Staff College. expert, Mr Moshabesha has also been a Civil Aviation Management Adviser to the various Southern African Governments including Botswana, Mozambique and Zambia. He holds both a BSc (Aviation Administration) and Lt. General Masire is a graduate of the Air Force Command and Staff College and Naval Postgraduate School. He MBA (Aviation Administration) all acquired from the Embry Riddle Aeronautical University, Florida, USA. is an International Honour Roll Inductee of the US Air University. He holds a Diploma and BSc from Troy State University and an MBA from University of Southern Queensland, Australia.
16 \\ // 17 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
BOARD BOARD
MEMBERS [CONTINUED] MEMBERS [CONTINUED] … …
Mark John Sampson Board Chairman
Anthony Glyndwr Rees Onalenna Sechele Board Member Board Member
Lt. General Tebogo Masire (Rtd) Motebele Rashimi Sentle Board Member Board Member
Thembinkosi Johnson Asad Petkar Board Member Board Member
18 \\ // 19 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CHIEF EXECUTIVE OFFICER’S3 REVIEW
20 \\ // 21 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CHIEF EXECUTIVE OFFICER’S REVIEW …
wish to present the mandatory report on the operation of the Civil Aviation Authority Iof Botswana (CAAB) for the Financial Year beginning April 2015 to March 2016. During the year under review, as it will be demonstrated in the entire body of this report, we have recorded the highest safety record Botswana has ever achieved in its entire 50 years as a sovereign state. A feat which has by-passed the Africa Region’s and the world’s safety average. This has been achieved through the concerted efforts of our shareholder, the Board and indeed those who serve the Organisation on a full-time basis - the employees.
The long awaited implementation of the organisational Branding of the Authority and Organisational Structure structure was completed in August 2015. We had rationalisation. This strategy will be rolled out and anticipated that Phase II of the implementation of the cascaded to all staff members in the New Year. structure would be completed by December 2015. However, this was not finalised, and we are committed to The country underwent an ICAO Coordinated Validation closing this matter during the next review period. Mission (ICVM) in December 2015. Following the validation, ICAO lifted the two Significant Safety During the implementation of this project, we have Concerns (SSCs) identified during an ICVM of May 2013. appreciated that job profiling, which includes Jobs The Validation mission also revealed that the country analysis and Job evaluation processes, was a critical task improved in effective implementation of ICAO Standards which required urgent attention for CAAB to position it’s and Recommended Practices (SARPs) from 53.78 % to self as an employer of choice in the industry. 71.32%.
This review of the organisational structure has included On Infrastructure Development, the long awaited performance management contracts for staff. It will improvement of the Sir Seretse Khama International ensure that contracts are tied to the objectives of the Airport (SSKIA) terminal building was completed and Authority as outlined in the Strategic Plan. The aim is to handed over to the Authority during this review period. proactively change the way business has been conducted in the Authority while ensuring that everyone is The introduction of Ethiopian Airlines into SSKIA was accountable and delivers as prescribed. Despite the yet another welcomed development which shows the various challenges during the transition, CAAB’s staff confidence of the industry in the Country’s infrastructure. continued to serve the country with pride. I must thank all of the staff for diligently performing their tasks during During this review period, maintenance works done this challenging time in our history. included dry-grading works, fog spraying, runway resurfacings and markings at a number of the strategic During the period under review, the Board and the airfields throughout the country. shareholder, the Government, approved the Strategic Plan covering the period 2015 - 2020. CAAB now has The construction of the new state-of-the-art terminal an ambitious and transformative plan which is aimed building at the Kasane International Airport with all at converting the Authority into a higher performing the environmental considerations is progressing well entity. The Plan has identified eight areas under its and completion is expected in the next financial year. change agenda. These being Financial Sustainability The completion of these Infrastructure works will bring and Growth; Leadership and Culture; Governance, to 3 out of 4 of our recently re-developed International Risk and Compliance; Stakeholder Management; Talent airport’s terminal buildings. Management; Infrastructure and Operational Efficiency;
22 \\ // 23 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CHIEF EXECUTIVE OFFICER’S EXECUTIVE
REVIEW [CONTINUED] TEAM … …
Work on the construction of the Air Traffic Controller tower and Technical Block at the Maun International Airport 1. MR. GEOFFREY PUSELETSO MOSHABESHA is on schedule and is planned for completion during the next reporting period. Once completed, the old Tower will be CHIEF EXECUTIVE OFFICER turned into a Fire and Rescue workshop. 2. MR. DAVID FANI The Selibe Phikwe Airport runaway was completed during the year under review through the partnership of CAAB CORPORATE SECRETARY and the Selibe Phikwe Economic Diversification Unit (SPEDU). 3. MR. SILAS SILAS As improvements of infrastructure continue to enable connecting communities, the assessment of the utilisation of the DIRECTOR, AIR NAVIGATION SERVICES facilities against the investments was conducted. In this regard, passenger movements during the period under review 4. MR. JUSTICE MASOLE indicated a combined total of 727 912 passengers travelling through Sir Seretse Khama International Airport (SSKIA), DIRECTOR, AIRPORTS Maun International Airport (MIA), Kasane International Airport (KIA) and Francistown International Airport (FIA). 5. MR. KABO PHUTIETSILE The above figures represent a decrease of 1.7% compared to 740 733 passengers that were recorded in the previous year DIRECTOR, AIRPORTS ENGINEERING & MAINTENANCE (2014/15). Domestic traffic made up 43% of the total, a slight decrease from the 44.4% it accounted for in the previous reporting period. 6. MRS. BOITUMELO WADIKONYANA HEAD, HUMAN CAPITAL & ADMINISTRATION International traffic recorded in the year under review was 415 624, an increase of 0.7 % year on year. SSKIA is the only airport that recorded passenger increase this year, with a growth of 2.2% from the 378 752 that was registered in the 7. MRS. MPHO MPHAFE-FISH year 2014/15. The increase is attributed to scheduled movements, since the introduction of Ethiopian Airlines flights DIRECTOR, FINANCE effective from 30 June 2015, with its services between Addis Ababa and Gaborone. Regrettably, our other three main airports recorded decreases in comparison to the last reporting period. The Executive Management Team (EMT) executes the strategic objectives and implements policies as set by the Board. EMT is headed by the Chief Executive Officer, and consists of During the review period, in pursuant of safe flying over national airspace, through our provision of air navigation services and to enhance the safety of our skies, the implementation of the Air Traffic Services Message Handling System Directors of the following Directorates: (AMHS) and ICAO Flight Plan were completed on the 12 February 2016; and the improvement of communication in the lower airspace project was completed. Head of Human Capital and Administration, Finance, Airports, Air Transport, Flight Safety, Corporate Secretariat and Air Navigation Services. The CAAB has also played an important role with regard to supporting Tourism, which is one of Botswana’s key industry sectors. Besides maintaining international best practice at all the facilities, the Organisation’s continued partnership CAAB has an internal audit function reporting administratively to the CEO and functionally to the Board and the With aviation events such as the Wesbank Botswana International Airshow based at Matsieng Air Strip in Rasesa. Finance and Audit Committee. CAAB contributes to keeping the country on the international calendar for leisure aviation events. An Internal Audit Charter that reaffirms the independence of the audit function has been approved by the Board. Financially, the above projects and the drive to be internationally compliant with the ICAO requirements means that The Authority’s accounts are audited by an Auditor appointed by the Board in terms of Section 37 of the Civil the Authority’s operational costs continue to increase. The Authority strives to assist the shareholder in achieving the Aviation Act 2011. diversification of the country’s economy by connecting communities. We therefore, wish to express appreciation of the stewardship of the Board and the support of the Shareholder in realising these achievements. CAAB consults with stakeholders from time to time on matters such as legislation, regulatory requirements, charges and other matters of interest to various players in the aviation industry.
Though wholly owned by the Government of Botswana, CAAB is administratively autonomous.
CAAB’s operational and financial oversight is achieved through a series of statutory requirements including the obligations to produce a 5 year business plan, audited statements for each financial year, annual budget and an annual report. Geoffrey P Moshabesha Chief Executive Officer The financial year runs from 1st April of one year to 31st March of the following year. CAAB is preparing to enter into a performance agreement with the Government, one that will enhance its capacity to meet the operational and financial targets set out in the Business Plan.
24 \\ // 25 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
EXECUTIVE EXECUTIVE
TEAM [CONTINUED] TEAM [CONTINUED] … …
Geoffrey Puseletso Moshabesha Chief Executive Officer
David Fani Silas Silas Corporate Secretary Director, Air Navigation Services
Justice Masole Kabo Phutietsile Director, Airports Director, Airports Engineering & Maintenance
Boitumelo Wadikonyana Mpho Mphafe-Fish Head, Human Capital & Director, Finance Administration
26 \\ // 27 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CAAB 2015/16 …
727 912 passengers travelling through Sir Seretse Khama International Airport (SSKIA), Maun International Airport (MIA), Kasane International Airport (KIA) and Francistown International Airport (FIA). 727 912 passengers travelling through Sir Seretse Khama International Airport (SSKIA)
The above figures represent a decrease of 1.7% compared to 740 733 passengers that were recorded in the previous year (2014/15). Domestic traffic made up 43% of the total, a slight decrease from the 44.4% it accounted for in the previous reporting period.
International traffic recorded in the year under review was 415 624, an increase of 0.7 % year on year. SSKIA is the only airport that recorded passenger increase this year, with a growth of 2.2% from the 378 752 that was registered in the year 2014/15. 0.7% 2.2% 378 752 Increase SSKIA growth Arrivals
119 842 55 662 19 466 44 714
Total flights in Domestic arrivals/ International Over flights Botswana Airspace departures arrivals/departures
This represented a significant improvement, placing Botswana above both the African average of 48.24% and the world average of 64.44%, evidence that Botswana has one of the safest skies in the world.
28 \\ // 29 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT AND COMPLIANCE4
30 \\ // 31 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT OVERSIGHT
AND COMPLIANCE AND COMPLIANCE [CONTINUED] … …
INTRODUCTION PERSONNEL LICENSING AND TRAINING
Personnel Licensing and Training carries out all of the safety oversight responsibilities assigned by the Civil Aviation CAAB is both a regulatory body and service provider on matters Act and its Regulations, as well as ensuring that Botswana fulfils its obligations under the Convention on International pertaining to civil aviation in the country. As a regulatory Civil Aviation. This function performs the Civil Aviation Authority obligations of maintaining regular safety oversight body, CAAB provides Safety and Security Oversight functions of all personnel licensing and training aspects of aviation in Botswana, which includes; on behalf of the State. This is on the basis that Botswana, as a Contracting State of the International Civil Aviation Organisation • Certification and surveillance of air operators, approved maintenance organisations. • Approved training organisations and oversight of any other person or organisation involved in the operation of (ICAO), has an obligation to provide safety and security oversight aircraft. functions. • Maintenance/modification/repair of aircraft and training aspects of personnel engaged in civil aviation. • Licensing/approval of maintenance personnel, pilots, cabin crew members, flight operations officers, air traffic States execute such safety and security oversight responsibilities by establishing controllers, designated aviation medical examiners and remotely piloted aircraft. oversight organisations which are staffed with inspectors in various specialty fields such as Aerodromes and Ground Aids (AGA), Air Navigation Services (ANS), Airworthiness of Aircraft (AIR), Aircraft Operations (OPS) and Aviation Security. These inspectorate units audit, inspect and check various facilities, equipment, FLIGHT OPERATIONS operational procedures and personnel for the purpose of certificating, licensing, authorising and approving them to be engaged in safe aviation related activities. This function performs the Authority’s obligations of maintaining regular safety oversight of the operation of aircraft (both commercial and private) in the Country. These obligations include, the certification and surveillance of air operators, aerial work organisations, approved training organisations and oversight of any operation of aircraft INTERNATIONAL CIVIL AVIATION ORGANISATION engaged in civil aviation. Flight Operations carries out all of the safety oversight responsibilities assigned by the Civil COORDINATED VALIDATION MISSION (ICVM) Aviation Act and its Regulations as well as ensuring that Botswana fulfils its obligations under the Convention on International Civil Aviation. The country was subjected to an International Civil Aviation Organisation (ICAO) Coordinated Validation Mission (ICVM) under the ICAO Universal Safety AIRWORTHINESS OF AIRCRAFT Oversight Audit Programme (USOAP) in December 2015; as a follow up to the 2013 ICVM that identified two Significant Safety Concerns (SSCs). During the Air worthiness obligations are to maintain regular safety oversight of the maintenance and continuing airworthiness ICVM that was carried out in December 2015, CAAB achieved an aviation safety of aircraft operating in Botswana, which includes certification and surveillance of air operators, approved maintenance oversight Effective Implementation (EI) of 71.58% up from 53.78% in the year 2013, organisations, approved training organisations and oversight of any organisation involved in the operation of aircraft, surpassing the international EI average of 68%. maintenance/modification/repair of aircraft engaged in civil aviation. The Airworthiness function carries out all of the safety oversight responsibilities assigned by the Civil Aviation Act and its Regulations as well as ensuring that As a result of the level of Effective Implementation (EI), and as recommended by Botswana fulfils its obligations under the Convention on International Civil Aviation. ICAO for countries which have attained an EI of 60% and above, the CAAB has embarked on the implementation of a State Safety Program. The program aims to ensure that States either sustain or improve their level of implementation.
Following the resolution of the SSCs there has been an increase in activities in the aviation sector with four Maintenance Organisations, Three Training Organisations and Two Air Operators applying for certification. It is anticipated that there is going to be an increase in investors’ interest in the aviation industry of Botswana.
AVIATION SAFETY SERVICES
The Aviation Safety Directorate of the Authority exists to implement the safety oversight requirements of the International Civil Aviation Organisation (ICAO), a United Nations (UN) agency established in 1947 as contained in the Articles of the Chicago Convention and its Standards and Recommended Practices (SARPS) found in the Annexes to the Convention within the following three functions;
• Personnel Licensing and Training (ICAO Annex 1), • Flight Operations (ICAO Annex 6), and • Airworthiness of Aircraft (ICAO Annex 8).
32 \\ // 33 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT OVERSIGHT
AND COMPLIANCE [CONTINUED] AND COMPLIANCE [CONTINUED] … …
AVIATION SAFETY OVERSIGHT STATISTICS AVIATION SAFETY OVERSIGHT STATISTICS (CONTINUED)
AIRWORTHINESS STATISTICS UNDER THE REVIEW PERIOD PERSONAL LICENSING
S/N Type of Activity Total # Issued Licences Total Issued Issued in 2015/16 Current 01. Aircraft Registration 15 Private Pilot Licence (PPL) 537 58 203 02. Aircraft Deregistration 8 Commercial Pilot Licence (CPL) 1031 92 300 03. Export Certificate of Airworthiness (C of A) 8 Airline Transport Pilot Licence (ATPL) 304 8 98 04. Issue and Renewal of C of As 165 Cabin Crew Member (CCM) 44 30 43 05. Mode of Transponder Registration 6 Air Traffic Controllers (ATCO) 108 54 06. Special Flight Permits Issuance 12 Flight Operations Officers (FOO) 8 8 8 07. Approval of Major Repairs & Modifications 28 Aircraft Maintenance Engineer’s License (AMEL) 114 15 103 08. Foreign AMO Approvals & Validations 6 09. Renewals of Local AMO Approvals 0 BOTSWANA DESIGNATED EXAMINERS 10. Local AMOs Recertification 2 11. Validation of Foreign Permit to Fly 132 Designated Examiners Total Issued Issued In 2014/15 Current 12. Issue and Renewal of Local Permit to Fly 16 Pilots 83 25 29 Cabin Crew Members 3 3 3 FLIGHT OPERATIONS STATISTICS Aviation Medical Examiners 8 6 7 Aviation Medical Assessor 1 1 1 S/N Type of Activity Total # Issued Aircraft Maintenance Engineer 1 1 1 01. Approval (Re-certification) of local Air Operator (Balloon certification at phase 3) 1 02. Renewal of local Air Operator 12 APPROVED TRAINING ORGANISATIONS (ATOS) DURING THE UNDER REVIEW 03. Validation of Foreign Air Operator 4 04. Renewal of Foreign Air Operator 1 Atos Foreign ATOS Local ATOS Issued in 2014/15 05. Aerial work Operator 1 Total 8 0 8 06. Surveillance on local Air Operators 55 07. Surveillance on Foreign Air Operators 15 08. Surveillance on Aerial work operator 0 09. Development of Technical Guidance Material 2 10. Closure of ICAO corrective action plan 10
34 \\ // 35 䄀 䄀 䌀 䄀 一 䄀 圀 匀 吀 伀 䈀
CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT
AND COMPLIANCE [CONTINUED] …
AVIATION SAFETY STANDARDS OVERSIGHT (ASSO)
MANDATE
The mandate of Aviation Safety Standards Oversight (ASSO) is to regulate the provision of air navigation services, and the establishment and operation of civil aerodromes in the country in order to ensure that air navigation services and aerodromes operation functions are safely and efficiently executed, with a view to upholding and implementing ICAO standards and recommended practices (SARPs).
THE FUNCTIONS
ASSO exists primarily to conduct safety oversight functions in the country, to ensure safe operations with regard to the provision of air navigation services (ANS) and aerodromes and ground aids (AGA).
The above functions entail the following:
• Carrying out of certification, licensing, authorising and approval of air navigation service providers in accordance with National Regulations, policies and procedures; and in compliance with ICAO Standards and recommended practices (SARPs); • Carrying out of inspection activities of certificated, licensed, authorised or approved air navigation services facilities and personnel to ensure adherence prescribed conditions. • Carrying out investigations on incidents and make appropriate recommendations for improvement to the service providers. • Responding appropriately to relevant State letters from ICAO or giving advice to the Chief Executive Officer and/ or other senior managers of the necessary action by the Authority. • Working out responses to enquiries emanating from interventions by other regional and/or global organisations such as SADC, ICAO or the European Union. • Undertaking any duties assigned as a response to regional and/or global organisations like SADC Aviation Safety Organisation (SASO), African Civil Aviation Commission (AFCAC) or International Air Transport Association (IATA). • Ensuring resolution of safety concerns in keeping with the enforcement policy and procedures following inspection activities of the industry.
There are four (4) major aerodromes, twenty three (23) minor government airfields, sixty eight (68) privately owned aerodromes and one (1) air navigation service provider proving air traffic control services and alerting services at the four major aerodromes in the country.
OUR CHALLENGES
• Insufficient number, mix and appropriately qualified inspectors; and • Insufficient funding leading to deficiency in the number of inspector activities of service providers.
36 \\ // 37 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT OVERSIGHT
AND COMPLIANCE [CONTINUED] AND COMPLIANCE [CONTINUED] … …
AVIATION SECURITY AND FACILITATION OVERSIGHT (ASFO) AVIATION SECURITY AND FACILITATION OVERSIGHT (ASFO) (CONTINUED)
ICAO UNIVERSAL SECURITY AUDIT PROGRAMME (USAP) CONTINUOUS MONITORING A number of existing programmes were reviewed and new ones developed; and approved by the Committee. APPROCH (CMA) AUDIT Programmes which were reviewed and/or developed were as follows: a. National Civil Aviation Security Programme (NCASP), 2016 - Revised from the 2012 edition; ASFO was established following the Organisation Restructuring Exercise where the new b. National Civil Aviation Security Quality Control Programme (NCASQCP), 2016 - Revised from the 2012 edition; structure was taking effect from 01 April 2014 however actual implementation was 01 April c. National Civil Aviation Security Training Programme (NCASTP), 2016 - Revised from 2012 edition; 2015. As from inception date ASFO embarked on personnel training to ensure availability d. National Civil Aviation Security Certification Programme (NCASCP), 2016 - New; and of qualified inspectors to discharge the unit mandate since available personnel where not e. Aviation Security Inspector Manual (ASIM), 2016; initially trained. Concurrently ASFO developed National Civil Aviation Security Programmes f. Advising on, and coordinating at the strategic level, security activities between ministries, departments, agencies for specifying national civil aviation security requirements that the industry and operators and other organizations that are responsible for the implementation of various aspects of the National Civil Aviation Security Programme (NCASP); have to meet. Since Botswana was scheduled for USAP CMA Audit in 2016, ASFO also engaged g. Recommending and reviewing the effectiveness of security measures and procedures for the implementation of in preparations for the Audit. NCASP; and h. Coordinating at the strategic level AVSEC activities at a national level in order to ensure the implementation USAP CMA outcome indicate that Botswana ability to oversee implementation of national civil aviation security of Annex 17 Standard and Recommended Practices (SARPs); the Aviation Security Act, 2011; Aviation Security system is at 65.02% whilst the national average compliance with Annex 17 Standards is 69.97% which is above Regional (General) Regulations, 2013 and that the NCASP is regularly adjusted to meet the needs of State policy and changes average at (58.93%) however below Global average at (71.67%). The performance is however encouraging considering in threat. that Botswana did not have aviation security oversight until recently in 2014 when this was established. TRAINING OF NATIONAL INSPECTORS NATIONAL CIVIL AVIATION SECURITY AND FACILITATION COMMITTEE National Inspectors underwent regulatory and oversight training since the Aviation Security and Facilitation Oversight The National Civil Aviation Security and Facilitation Committee (NCASFC) when established under Aviation Security (ASFO) Unit was established. The training covered mandatory inspector training set in CAAB National Civil Aviation Act, 2011 shall be responsible for the following: Security Training Programme. a. Advising on, and coordinating at the strategic level, security activities between ministries, departments, agencies ANNUAL QUALITY CONTROL ACTIVITIES SCHEDULE and other organisations that are responsible for the implementation of various aspects of the National Civil Aviation Security Programme (NCASP); A quality control schedule was drawn and approved in March 2016. However, much could not be done in 2015/16 since b. Recommending and reviewing the effectiveness of security measures and procedures for the implementation of the focus was still on the development of national programmes. The schedule was carried forward into 2016/17. NCASP; and c. Coordinating at the strategic level AVSEC activities at a national level in order to ensure the implementation of Annex 17 Standard and Recommended Practices (SARPs); the Aviation Security Act, 2011; Aviation Security (General) Regulations, 2013 and that the NCASP is regularly adjusted to meet the needs of State policy and changes in threat.
NATIONAL CIVIL AVIATION SECURITY FACILITATION COMMITTEE (NCAFC) MEETINGS
The Committee shall meet at such times and places as the Chairperson or, in the absence of the Chairperson, the Vice Chairperson may determine, but at least once in four months.
The purpose of the Committee meetings is to deliberate on its responsibilities as outlined above. The Committee met four times in the year 2015/16.
38 \\ // 39 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OVERSIGHT OVERSIGHT
AND COMPLIANCE [CONTINUED] AND COMPLIANCE [CONTINUED] … …
AIR NAVIGATION SERVICES AIR NAVIGATION SERVICES (CONTINUED)
Air Navigation Services is responsible for the country’s airspace or the Gaborone Flight TRAFFIC MOVEMENT FOR THE YEAR UNDER REVIEW Information Region (FIR) as it is known by the aviation community. This airspace is from ground level to infinity and it includes portions of the Namibian airspace over the Caprivi - Total traffic movement that used the Botswana airspace was 119 842 aircraft, 55 662 being for domestic arrivals and Strip from Flight level 145 (14500 feet above mean sea level) to infinity. departures, 19 466 being international arrivals and departures and 44 714 being over flights.
Every country has its own FIR and the regions are contiguous around the globe. This enables the coordination of aircraft movement from one corner of the globe to the other. Total Traffic movement
Divisions within the Air Navigation Services are as follows:
1. AIR TRAFFIC SERVICES For the provision of Aerodrome Control to aerodrome traffic, Approach Control for the provision of air traffic 119 842 services to traffic climbing or descending into an airport and Area Control Services which provides air traffic services to the entire Botswana airspace as well as coordinating aircraft movement with neighbouring FIRs. Both Approach and Area Control are Radar based at Maun and SSKIA and procedurally based at both Kasane and Francistown. 55 662 19 466 44 714 2. AERONAUTICAL INFORMATION MANAGEMENT Domestic Arrivals & Departures International Arrivals & Departures Over flights
For the provision and exchange of Integrated Aeronautical Information Package with other FIRs, the management of Aeronautical Information Publication as well as provision of Pilot Briefing Offices and the International NOTAM Office. These services are available at SSKIA, Maun, Kasane and Francistown. HIGHLIGHTS OF THE YEAR UNDER REVIEW
3. SEARCH AND RESCUE Air Navigation Services (ANS) was audited for the first time during the ICAO Coordinated Validation Mission that audited Botswana in 2015 following the 2013 ICVM. It is noted that ANS contributed quite positively to the total score For the coordination of search and rescue operations. obtained by Botswana.
4. COMMUNICATIONS, NAVIGATION AND SURVEILLANCE
For the provision of infrastructure and facilities used for the provision of Air Traffic Services. These facilities are at SSKIA, Maun, Francistown and Kasane airports as well as communication infrastructure at Shakawe, Ghanzi, Letlhakane, Mahalapye, Khutse, Jwaneng, Hukuntsi and Tsabong.
5. PROJECTS THAT WERE COMPLETED DURING THE 2015/16 FINANCIAL YEAR
Project Title Contract Date Completion Date
Implementation of Air Traffic Services Message 12th February 2016 1. 29th August 2012 Handling System (AMHS) and ICAO Flight Plan (end of defect liability period)
25th January 2016 2. Improvement of communication in the lower airspace 24th October 2012 (end of defect liability period)
Supply and installation of ATC Radar Simulator and 21st April 2016 3. 17th January 2013 upgrading of Autotrac software (end of defect liability period)
40 \\ // 41 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OPERATIONS 5REVIEW
42 \\ // 43 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OPERATIONS OPERATIONS
REVIEW REVIEW [CONTINUED] … …
CORPORATE PLANNING AND STRATEGY AIR TRANSPORT
The environment in which organisations, including the aviation industry in Botswana, PASSENGER MOVEMENT operates is constantly changing with the influence of various factors. Since the turn of the During the financial year 2015/16, 727 912 passengers travelled through Sir Seretse Khama International Airport millennium, the general business environment has become more volatile, unpredictable and (SSKIA), Maun International Airport (MIA), Kasane International Airport (KIA) and Francistown International Airport very competitive. These factors guided the development of the CAAB strategy for the five (FIA). The figure above represents a decrease of 1.7% compared to 740 733 passengers that were recorded in the previous year period commencing on 1 April 2015 and to end on 31 March 2020. The strategic plan year (2014/15). Domestic traffic made up 43% of the total, a slight decrease from the 44.4% accounted for in the previous seeks to transform the CAAB into an effective and sustainable aviation regulator as well as reporting period. service provider so as to cope with the increasingly competitive environment. International traffic recorded in the year under review was 415 624, an increase of 0.7 % year on year. SSKIA is the The CAAB 2015 - 2020 strategy also calls for the establishment of the corporate strategy office whose role is to plan, lead only airport that recorded passenger increase this year, accumulating a growth of 2.2% from the 378 752 that were and manage the development and implementation of the Authority-wide strategy. The office is also responsible for the registered in the year 2014/15. The increase at this airport was mainly due to scheduled movements, which was due Authority’s Enterprise Risk Management (ERM) which includes program development, and providing both oversight to the introduction of Ethiopian Airlines effective from 30 June 2015, with its services between Addis Ababa and and direction for management of risks across the Authority. Gaborone. All the three main airports however recorded decreases this year in comparison to the last reporting period.
The Corporate Planning office was established on 1st February 2016 with two officers. Since the inception of the Strategy Office there have been several achievements; CAAB has been able to ensure that the strategy translates into the corporate strategy map and the corporate scorecard; alignment of CAAB by cascading the scorecard across the organisation so as to integrate strategic priorities and ensure synergies as well as manage strategic initiatives.
In implementing the CAAB 2015 - 2020 strategy, there were some achievements made in the processes as well as challenges which called for a relook at priorities. The Strategy Office facilitated the CAAB to embark on the review 1.7% 1.1% of the CAAB 2015 - 2020 Strategic Plan during the last quarter of the 2016/17 financial year. The purpose was to Decrease of Passenger Decrease in Domestic reprioritise and refocus the organisation for maximum implementation and achievement of the intended results. The Movement through Local Airports Flight Traffic review included carrying out a current situational analysis as well as stakeholder engagement to ascertain CAAB commitment to bettering the aviation industry in Botswana. The review was successfully carried out and execution of the revised CAAB 2015 - 2020 Strategic Plan began on 1st April 2017.
The 2015 - 2020 strategy also called for the implementation of the Enterprise Risk Management, the aim being for CAAB to build a risk conscious culture as well as managing both strategic and operational risks across the organisation. The process involved the sensitisation of the organisation on Enterprise Risk Management, which entailed training of executive management, middle management and heads of units. A total of one hundred and fifteen (115) employees were trained across CAAB, including Head office and the six airports. In recognising that Corporate Risk Management 0.7% 2.2% is an integral part of an effective internal control system, CAAB realised the need to have a policy that expresses the risk appetite and tolerance of the Authority. The policy is CAAB’s commitment to the risk management as an integral Increase in International Traffic Increase in passengers at SSKIA part of the organisation’s operations, focusing on strategies to minimise risks to CAAB mission and objectives. The policy (Sir Sereste Khama International Airport) sets out the philosophy of risk management within CAAB that outlines broadly how the risk management process shall be adhered to within the Authority. The CAAB Enterprise Risk Management Policy was adopted by the Executive Management Team and approved by the CAAB Board and implementation started thereafter.
BILATERAL AIR SERVICE AGREEMENTS
In an attempt to increase the number of foreign airlines operating into the country, the Authority accompanied the Government delegation to the ICAO Air Services Negotiations meeting held in Antalya, Turkey, in December 2015. At this meeting negotiations were held with Brazil, Luxembourg, The Nederland’s, Malaysia, India, Israel, Morocco and Ghana. These States indicated their intention to operate in Botswana and its airports, where a positive business opportunity to arise in future.
The State of Kuwait and South Arabia indicated their desire to sign a Bilateral Air Service Agreements with Botswana, which was a development from the signing of the Memorandum of Understanding (MoU) in 2013. CAAB recommended to the Government to fully liberalise the airspace to facilitate an increase in the number of foreign operators to use its national airports infrastructure.
44 \\ // 45 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OPERATIONS OPERATIONS
REVIEW [CONTINUED] REVIEW [CONTINUED] … …
AIRPORT UPGRADE AND MAINTENANCE SELIBE PHIKWE AIRPORT
CAAB has a mandate to ensure that all airports and airfields in the country are in a good and The Rehabilitation Project which was wholly funded by the Selebi Phikwe Economic Development Unit (SPEDU) at a usable condition at all times. As such, the Authority continuously carries out maintenance cost of BWP14, 836, 119.00; and was implemented in joint venture with the Unit. It was completed in September 2015, and is in the defect liability phase. The rehabilitation project is key to one of the strategic areas of development in works and upgrades of existing airports and airfields. During the period under review, CAAB support of economic diversification and promotion of key economic opportunities in Botswana. carried out a number of maintenance services and development in all our major airports and airfields. STRATEGIC AIRFIELDS ACQUISITIONS
SIR SERETSE KHAMA INTERNATIONAL The Passenger Terminal Building for Kasane International CAAB has acquired new strategic airfields around the country at Boatlaname, Sekoma, Werda, Salajwe, Rakops, Qangwa and Panda. These airfields are of strategic importance and can serve the purposes of emergency rescue, tourism or AIRPORT (SSKIA) Airport is designed to cater for a peak hour passenger rate of 230 people departing and arriving. The peak mineral exploration. hour passenger rate is similar the number of people on a Upgrading of the Sir Seretse Khama International Airport 150-seater aircraft equivalent to a Boeing 737 or Airbus STRATEGIC AIRFIELDS MAINTENANCE Terminal Building was completed in August 2015; and was A319. This passenger volume is at an IATA (International officially opened on 16th October 2015 by the President Air Transport Association) Level of Service C with the Completed maintenance works include dry-grading works of Kanye and Goodhope, fog spraying and marking of Kang of the Republic of Botswana, Lieutenant General Doctor peak expected to be reached in 2030. The Level of Service Airfield and major maintenance works of runway resurfacing at Gumare and Shakawe airfields. Seretse Khama Ian Khama. Currently, the project is thus ensures that that passengers are processed within under a defects liability period where the contractor Gumare, Shakawe, Mamuno and Gweta airfields were originally scheduled for runway resurfacing works in 2015. The acceptable international times and that the terminal may be called in to resolve any minor issues with the tender for this project was advertised. However, the received bids came in higher than what was budgeted for, leading building is not congested. The Passenger Terminal infrastructure. The defects liability period is expected to to a cancellation of the tender due to budgetary constraints. CAAB then resorted to prioritising major maintenance Building is able to handle 387 000 passengers annually. end in August 2016. based on the capacity performance of each airfields. Shakawe and Gumare airfields were then accorded priority to receive major maintenance and resurfacing. The KIA runway shall be extended from 2 000 to 3 The airport is now able to handle up to 950 passengers at 000 metres, as well as widened from 30 to 45 metres. peak hour in the terminal building, as would be standard There will be a provision of airfield ground lighting capacity for a Boieng 747 aircraft. The runway has a new system to facilitate night operations and the provision length of 4 000 metres, and a width of 60 metres. The of an automated weather observation system. All I.C.T. airport has a full parallel taxiway and link taxiways, as special systems have been commissioned and tested to well as Airfield Ground Lighting System for night flights. satisfactory level and now await operation of the terminal A further improvement includes an Instrument Landing building. These include structured cabling; Flight System and automated weather observation system. Information Display Systems (FIDS); CATV; Master clock; telephones and Environmental Monitoring System (EMS). The SSKIA Land Use Master Plan was approved by the Gaborone City Council Planning Board in June 2015. MAUN INTERNATIONAL AIRPORT (MIA) INFORMATION TECHNOLOGY CAAB is currently working on the Terms of Reference for the engagement of a Transaction Advisor to assist The Maun Tower has been complemented with Information Communication Technology is the backbone of CAAB operations in terms with the funding models for the development of the basic installation of telephone and network infrastructure, infrastructure. The intention of the SSKIA Land Use of network infrastructure, application systems and various technology oriented services. while the airport has also been connected to Fibre Through improved technology, CAAB’s service to its stakeholders is enhanced for instance, Master Plan is to contribute positively to the growth of network which links it to other CAAB stations faster and Gaborone and Botswana by offering all the services that at lower cost compared to a leased line connection. CAAB administrates passenger processing systems in all national airports. This service an airport city has for the convenience of the passengers. provides passengers in all national airports an easier and faster user experience. Air Traffic Control Tower and Technical Block KASANE INTERNATIONAL AIRPORT construction works were awarded to Colic Construction The key highlight in this reporting period includes the commissioning of the CAAB Virtual Private Network (VPN) (KIA) and Development Company (Pty) Ltd for BWP85.68 fibre link to Maun and Kasane. The fibre link is complete and operational including at KIA where the fibre link has been million. Construction works are scheduled for completion installed and awaits commissioning of the new Kasane terminal building. The project for the refurbishment of the Terminal and in May 2016. Associated buildings (Air Traffic Control Tower, Technical CAAB has improved its Server Infrastructure and distribution of computers hardware in terms of laptops, printers and Block, Fire Station and Police Station) commenced on The new Maun Terminal Building is still in the planning computers to various stations. This has resulted in improvement of user effectiveness in their daily job performance. 2 November 2014 and is expected to be completed in stage and will be expected to be ready for implementation CAAB staff have full access to email, internet services and other systems relevant to delivering on our mandate. October 2016 at a contract Sum of BWP280.8 million. The in the next reporting period. The requirements for the improvements are expected to enhance operations as well eventual development are to be communicated to the as improve conditions for all stakeholders of the airport relevant stakeholders through an open tender process. in Kasane.
46 \\ // 47 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
OPERATIONS OPERATIONS
REVIEW [CONTINUED] REVIEW [CONTINUED] … …
PHASE II - ORGANISATIONAL STRUCTURAL REVIEW CORPORATE SOCIAL RESPOSIBILITY
CAAB embarked on restructuring process in the year 2014/15. The exercise resulted in a VILLAGE DEVELOPMENT COMMITTEE (VDC) HOUSE AT SENONNORI WARD IN MAUN, new organisational structure whose objective was to facilitate the achievement of the CAAB NGAMILAND mandate. During the period under review, as part of its Corporate Social Responsibility Programme, The new structure which was implemented with effect from April 2015 had some positives such as: the Authority renovated a Village Development Committee (VDC) house at Senonnori Ward in Maun, Ngamiland. The original house was built during 1996 as a labour intensive project a. Strengthening the oversight function of the organisation by introducing two new Divisions into CAAB. These under the Contagious Bovine Pluearenium Programme (CBPP) following the 1996 outbreak of were the Aviation Security & Facilitation Oversight and the Aviation Safety Standards Oversight divisions; and the cattle lung disease which erupted in 1995. During that time, all cattle in Ngamiland were b. Introduction of new functions at the airports such as customer services and airport safety offices and a Strategy killed in an effort to eradicate the disease. Office at the CAAB head office. Other than the procurement of material and payment of the contractor at a tune of over BWP 44, 249. 00 for material However, following implementation of the structure, there were some identifiable gaps that required immediate and Labour, CAAB offered the services of the Maun airport based engineers for project supervision. The refurbished attention. These gaps were mainly around the Jobs analysis and Job evaluation which are critical towards determining CAAB competitiveness to the market, the eventual aim being to positioning CAAB as the employer of choice in aviation. house is to be leased out for the purposes of generating income for the community. It was for this reason that the Authority is currently undergoing the Phase II - Organisational restructuring. In addition, the exercise includes staffing analysis to determine the adequacy of staffing in terms of numbers and skills mix in view MATSIENG TRUST of the need to meet the country’s aviation safety and security obligations in line with the International Civil Aviation Organisation Standards and Recommended Practices. CAAB has been a proactive supporter of the safety and growth of aviation for leisure or sport in Botswana. The Authority safeguards proceedings and enforces international best practice at all aviation related events in the country. LABOUR RELATIONS Consequently, CAAB has been able to assist in contributing positively to the Matsieng Trust through sponsorship of the Wesbank Botswana International Airshow. CAAB supported the Airshow by part sponsoring the cost of some permits The Authority embarked on a salary negotiation process with the Botswana Public Employees Union (BOPEU) for the for pilots flying in for the Air Show. The reduced cost burden helps keep the event attractive and more accessible, first time since signing a Collective Labour Agreement on 1st September 2014. Following the success of the negotiation thereby leading to increased audiences and higher donations to Matsieng Trust and the charities it supports. process, the Authority and the Union agreed to revised employees’ salaries by 13% with effect from 1st April 2015. This was the first salary increase which was experienced by the Authority since 2011. CAAB further appreciates that support for these events contributes positively to Botswana’s tourism industry by keeping the Country on the international calendar for leisure aviation events. TRAINING AND DEVELOPMENT
Following the ICAO Coordinated Validation Mission (ICVM) of December 2015, some operational training requirements were identified. As a remedial measure to address these challenges, a Training Plan for 2015/16 was developed.
The Training and Development Plan aimed at capacity building including, among others, regional and international benchmarking trips, attendance of ICAO and International Air Transport Association (IATA) accredited external and local training courses.
The Authority expended BWP7, 605,000.00 towards Training and Development requirements on CAAB’s seven hundred and sixty two (762) staff members. COMPLIANCE
During the year under review, Internal Audit Division provided consultancy and advisory services to CAAB and participated in other committees on a short-term or long-term basis.
Through its assurance reviews and consultancy services, Internal Audit noted issues of non-compliance with internal controls and regulations and delays or non-implementation of Internal Audit recommendations.
However, through continued engagement with Management through the Chief Executive Officer’s office, audit follow ups noted some improvements.
The Internal Audit Annual Plan was negatively affected by both staff and financial resources constraint resulting with a 75% achievement of the plan. There is hope to improve on this performance as there are deliberate intentions by Management and the Board to adequately resource the Division to be effective.
48 \\ // 49 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CORPORATE GOVERNANCE6
50 \\ // 51 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CORPORATE GOVERNANCE …
ORGANISATIONAL INFORMATION
Name Civil Aviation Authority of Botswana
Legal Form Body Corporate
Shareholder Government of Botswana
Promote the safe, regular, secure and efficient use and Mandate development of civil aviation in Botswana.
Regulation of air transport, provision of air navigation services, management of airports and advising the Responsibility Government of the Republic of Botswana on all aspects of civil aviation.
Place of Domicile Gaborone, Botswana
Anthony G. Rees Motebele Rashimi Sentle Board Members Lt General Tebogo HC Masire (Rtd) Geoffrey Puseletso Moshabesha
Chairperson of the Board Mark John Sampson
Chief Executive Officer Geoffrey Puseletso Moshabesha
Secretary to the Board David Fani
Thembinkosi Johnson Board Appointments during the Review Period Asad Petkar
Board Resignations/ Lt. General Tebogo Masire (Rtd) Retirements during the Review Period
Plot 61920 Letsema Office Park Registered Office Fairgrounds Gaborone, Botswana
P.O. Box 250 Postal Address Gaborone, Botswana
Stanbic Bank Botswana Limited Bankers Barclays Bank of Botswana Limited BancABC Botswana Limited
Auditors Auditor General of Botswana
52 \\ // 53 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CORPORATE CORPORATE GOVERNANCE [CONTINUED] GOVERNANCE [CONTINUED] … …
CORPORATE GOVERNANCE STATEMENT BOARD MEMBERS’ REMUNERATION
Board members are remunerated for attendance of meetings in accordance with the schedule of fees as advised by The Civil Aviation Authority of Botswana (CAAB) subscribes to the principles of good corporate the Government of Botswana from time to time. During the period under review, the members’ fees were paid at the governance. CAAB strives to make good corporate governance part of the daily operations following rates: of the organisation through adherence to national and international principles, practices, Chairperson - BWP735.00 standards and norms that promote, among others, fairness, accountability and transparency. Member - BWP588.00
In order to demonstrate CAAB’s commitment to good corporate governance, the Board has put in place a Charter which BOARD MEETINGS sets out the duties and responsibilities of the Board and those of the Management. The Charter seeks to enhance delivery on the CAAB mandate within a corporate governance framework which provides a clear, consistent and transparent The Civil Aviation Act, 2011 requires the Board to meet at least once every three months. Dates for ordinary meetings of set of principles by which the Board and Management agree to be bound in the discharge of their duties. the Board are set at the beginning of the financial year. Special meetings are held as and when dictated by the business or other requirements of the Authority. During the period under review, a total of four (4) Board meetings were held. BOARD OF DIRECTORS AND COMPOSITION The table below shows the attendance of Board meetings and meetings of Board Committees by respective members:
BOARD Members Board Finance Human Tender Technical The Board is the governing body of the Authority. In terms of Section 15 of the Civil Aviation Act, 2011, the Board shall and Audit Capital and Committee Services consist of a Chairperson and not less than four (4) nor more than eight (8) members (including the Chief Executive Committee Admin. Committee Officer). The appointing authority for members of the Board is the Minister of Transport and Communications. committee Mark John Sampson 4/4 - - - 1/2 During the period under review, the following served on the Board Mark John Sampson - Chairperson Anthony Glyndwr Rees 4/4 - - 2/2 2/2 Anthony Glyndwr Rees - Member Lt. General Tebogo Masire (Rtd) 4/4 - - 2/2 2/2 Lt. General Tebogo Masire (Rtd) - Member Motebele Rashimi Sentle - Member Motebele Rashimi Sentle 3/4 1/1 - - - Onalenna Sechele - Member Geoffrey Puseletso Moshabesha 4/4 1/1 - 2/2 2/2 Asad Petkar - Member Thembinkosi Johnson - Member Geoffrey Puseletso Moshabesha - Ex officio Member & Chief Executive Officer DISCLOSURE OF INTEREST
The operations of the Board are governed by the Board Charter which prescribes minimum standards designed to At every meeting of the Board or Committee of the Board, each member is required, in compliance with Section 23 of promote high standards of corporate governance. the Civil Aviation Act, 2011, to disclose any direct or indirect interest in a private capacity that he/she might have on any of the matters which are the subject of discussion at such meeting. Besides being asked by the Chairperson to state BOARD COMMITTEES if they have any interest, members are required to each fill a Declaration of Interest Form indicating whether they have any such interest. Board Finance and Audit Committee Motebele Rashimi Sentle - Member/Acting Chairperson CORPORATE SECRETARY Geoffrey Puseletso Moshabesha - Member The Corporate Secretary is responsible for the provision of Board administrative and legal advisory services as well as Board Human Capital and Administration Committee corporate governance advice to the Board and Management. The Secretary is the custodian of the legal transactions of Motebele Rashimi Sentle - Chairperson the Authority. Geoffrey Puseletso Moshabesha - Member
Board Tender Committee Lt. General Tebogo Masire (Rtd) - Chairperson Anthony Glyndwr Rees - Member Geoffrey Puseletso Moshabesha - Member
Board Technical Services/Customer Service Committee Anthony Glyndwr Rees - Chairperson Lt. General Tebogo Masire (Rtd) - Member Geoffrey Puseletso Moshabesha - Member
54 \\ // 55 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
CONTENTS
58 GENERAL INFORMATION
59 STATEMENT OF RESPONSIBILITY BY THE BOARD OF DIRECTORS CIVIL AVIATION AUTHORITY OF BOTSWANA 60 REPORT OF THE INDEPENDENT AUDITOR FINANCIAL STATEMENTS 62 STATEMENT OF COMPREHENSIVE INCOME 63 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2016 64 STATEMENT OF CASHFLOWS
65 STATEMENT OF CHANGES IN EQUITY
66 ACCOUNTING POLICIES
75 NOTICE TO THE FINANCIAL STATEMENTS
56 \\ // 57 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
GENERAL INFORMATION STATEMENT OF RESPONSIBILITY BY THE BOARD OF DIRECTORS
PRINCIPAL ACTIVITIES To promote the safe, regular, secure and efficient use and The Board of the Civil Aviation Authority of Botswana is responsible for the maintenance of adequate accounting development of civil aviation in Botswana. records and the preparation, integrity and fair presentation of the financial statements. The financial statements presented on pages 62 to 89 have been prepared in accordance with International Financial Reporting Standards and FOR THE YEAR ENDED 31 MARCH 2016 the manner required by the Civil Aviation Act of 2011.
NON EXECUTIVE DIRECTORS Mr. Mark Sampson (Chairperson) In preparing these Financial Statements, the Board believes that they have used the most appropriate accounting Mr. Anthony Glyndwr Rees policies which are applied consistently and supported by reasonable judgments and estimates. The Board of Directors Lt. General Tebogo Masire (Rtd) believes the Financial Statements as presented reflect a true and fair view of the operations of the Authority.
Mr. Motebele Sentle In addition, these Financial Statements have been prepared on a going concern basis. Based on the Authority’s strategic Ms. Onalenna Sechele plans and forecasts of cash resources, the Board of Directors has no reason to believe that the going concern will cease Mr. Asad Petkar in the foreseeable future. Mr. Thembinkosi Johnson Accordingly, the Annual Financial Statements for the Authority for the year ended 31 March 2016 were authorised for issue by resolution of the Board on the 17 October 2017 and are duly signed on its behalf by: RETIRED DURING THE YEAR
EXECUTIVE MANAGEMENT Mr. Geoffrey Puseletso Moshabesha Ex officio Member & Chief Executive Officer Mr. David Fani Corporate Secretary Chairperson of the Board Chief Executive Officer Mr. Silas Silas Director, Air Navigation Services Mr. Justice Masole Director, Airports Mr. Kabo Phutietsile Director, Airports Engineering & Maintenance Mrs. Boitumelo Wadikonyana Head, Human Capital and Administration Mrs. Mpho Mphafe-Fish Director, Finance
REGISTERED OFFICE Plot 61920, Fairgrounds Office Park Gaborone, Botswana
INDEPENDENT AUDITORS Auditor General - Botswana Government
BANKERS Stanbic Bank Barclays Bank of Botswana Limited Banc ABC
COUNTRY OF INCORPORATION AND DOMICILE Botswana
CURRENCY Botswana Pula
58 \\ // 59 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
REPORT OF THE INDEPENDENT AUDITOR REPORT OF THE INDEPENDENT AUDITOR
60 \\ // 61 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2016 AS AT 31 MARCH 2016
Notes 2016 2015 Notes 2016 2015 Pula Pula Pula Pula
Income ASSETS Botswana Government grants 1 159 486 530 143 432 140 Non-Current Assets Revenue generated 20 120 870 137 111 075 507 Property, plant and equipment 5 4 711 787 647 3 516 216 406 Amortisation of capital grant 8 116 282 557 108 143 822 Intangible assets 6 57 171 272 42 121 634 Gross operating income 396 639 224 362 651 469 Capital work in progress 7 203 815 152 28 124 908 4 972 774 071 3 586 462 948 Staff costs 21 (197 268 332) (158 793 826) Current assets Other operating costs 22 (193 401 850) (177 125 843) Trade and other receivables 10 42 360 526 27 607 264 (390 670 182) (335 919 669) Cash and short-term deposits 9 160 168 736 93 810 201 202 529 262 121 417 465 Surplus/(Deficit) for the year before interest 5 969 042 26 731 800 Finance income 2 2 173 617 3 001 755 TOTAL ASSETS 5 175 303 333 3 707 880 413 Finance cost 2 - - Surplus/(Deficit) for the year 8 142 659 29 733 556 EQUITY AND LIABILITIES Equity Capital funds 3 622 234 632 3 583 510 814 Revaluation surplus 1 359 471 835 12 957 023 Accumulated surplus 40 686 624 32 543 957 5 022 393 091 3 629 011 794 Liabilities Current Liabilities Trade and other payables 11 54 928 079 58 070 998 Deferred Income - Government Contributions 12 97 982 165 20 797 607 152 910 244 78 868 605
TOTAL EQUITY AND LIABILITIES 5 175 303 334 3 707 880 413
62 \\ // 63 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
STATEMENT OF CASHFLOWS STATEMENT OF CHANGES IN EQUITY AS AT 31 MARCH 2016 AS AT 31 MARCH 2016
Notes 2016 2015 Capital Revaluation Accumulated Total Grant Reserve Profit /(Loss) Pula Pula Pula Pula Pula Pula
Operating activities Balance at 1 April 2014 3 545 506 239 3 838 023 2 810 402 3 552 154 664 Surplus/(Deficit) for the year 4 5 969 042 26 731 800 Additions to Capital Grant 146 903 843 146 903 843 Non-cash items adjustments: Armotisation of Property, plant and Depreciation and armotisation of intangible assets 5 120 206 399 110 963 394 equipment provided by the Government Revaluation loss 2 137 376 - (108 143 822) (108 143 822) Profit/Loss on disposal of property, plant and equipment (53 637) (52 708) Realisation of reserves on disposal of assets (755 445) (755 445) Unrealised gain/Loss - (755 445) Additions to Revaluation Reserves 9 119 000 9 119 000 Amortization of capital fund 8 (116 282 557) (108 143 822) - Surplus for the year 29 733 555 29 733 555 Working capital adjustments: - (Increase)/decrease in trade & other receivables (14 753 262) 9 326 244 Balance at 31 March 2015 3 583 510 814 12 957 023 32 543 957 3 629 011 794 Increase/(decrease) in trade & other payables 74 041 639 17 140 363 Net cash flows from operating activities 71 265 000 55 209 826 Balance at 1 April 2015 3 583 510 814 12 957 023 32 543 957 3 629 011 793 Interest paid 2 - - Additions to Capital Grant 221 011 396 221 011 396 71 265 000 55 209 826 Armotisation of Property, plant and Investing activities equipment provided by the Government Proceeds from sale of property, plant and equipment 104 137 816 226 (116 282 557) (116 282 557) Interest received 2 2 173 617 3 001 755 Revaluation Loss for grant assets (65 789 021) Purchase of property, plant and equipment (7 184 219) (2 108 315) Realisation of reserves on disposal of assets (216 000) (216 000) Net cash flows from investing activities (4 906 465) 1 709 666 Additions to Revaluation Reserves 1 346 514 812 1 346 514 812 Surplus for the year 8 142 659 8 142 659 Net increase in cash and cash equivalents 66 358 535 56 919 491 Balance at 31 March 2016 3 622 234 632 1 359 471 835 40 686 616 5 088 182 104 Cash & cash equivalents at 1 April 2015 93 810 201 36 890 702 Cash & cash equivalents at 31 March 2016 9 160 168 736 93 810 201
64 \\ // 65 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
A. PRINCIPAL ACCOUNTING POLICIES B. NEW STANDARDS AND INTERPRETATIONS (CONTINUED)
The principal accounting policies applied in the preparation of these financial statements are set out below. These IFRS 3 BUSINESS COMBINATIONS policies have been consistently applied to all the years unless otherwise stated. The amendment is applied prospectively and clarifies that all contingent consideration arrangements classified as BASIS OF PREPARATION liabilities (or assets) arising from a business combination should be subsequently measured at fair value through profit or loss whether or not they fall within the scope of IAS 39. The annual financial statements have been prepared in accordance with the Civil Aviation Act, 2011 and the International Financial Reporting Standards (IFRS), International Financial Reporting Standards Committee This is not applicable to the Authority. (“IFRIC”) issued and effective at the date of preparing these financial statements. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial IFRS 8 - OPERATING SEGMENTS liabilities at fair value through profit or loss. The amendments are applied retrospectively and clarify that: SIGNIFICANT ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS An entity must disclose the judgements made by management in applying the aggregation criteria in paragraph The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that 12 of IFRS 8, including a brief description of operating segments that have been aggregated and the economic affect the reported amounts of assets and liabilities, disclosure of financial statements and the reported revenues characteristics (e.g., sales and gross margins) used to assess whether the segments are ‘similar’. and expenses. Although the estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. The reconciliation of segment assets to total assets is only required to be disclosed if the reconciliation is reported to the chief operating decision maker, similar to the required disclosure for segment liabilities. This is not applicable B. NEW STANDARDS AND INTERPRETATIONS to the Authority.
STANDARDS AND INTERPRETATIONS EFFECTIVE AND ADOPTED IN THE CURRENT YEAR IAS 16 - PROPERTY, PLANT AND EQUIPMENT AND IAS 38 INTANGIBLE ASSETS
In the current period the Authority has adopted the following new and revised Standards and interpretations of The amendment is applied retrospectively and clarifies in IAS 16 and IAS 38 that the asset may be revalued by the International Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations reference to observable data by either adjusting the gross carrying amount of the asset to market value or by Committee (IFRIC) of the IASB that are relevant to its operations and effective for annual reporting periods determining the market value of the carrying value and adjusting the gross carrying amount proportionately beginning 1 January 2015. so that the resulting carrying amount equals the market value. In addition, the accumulated depreciation or amortisation is the difference between the gross and carrying amounts of the asset. The Authority’s assets were AMENDMENTS TO IAS 19 DEFINED BENEFIT PLANS: EMPLOYEE CONTRIBUTIONS revalued in compliance to applicable standards.
IAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined IAS 24 - RELATED PARTY DISCLOSURES benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number The amendment is applied retrospectively and clarifies that a management entity (an entity that provides key of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in management personnel services) is a related party subject to the related party disclosures. In addition, an entity the period in which the service is rendered, instead of allocating the contributions to the periods of service. This that uses a management entity is required to disclose the expenses incurred for management services. This amendment is effective for annual periods beginning on or after 1 July 2014. This amendment is not relevant to the amendment is not relevant for the Authority as it does not receive any management services from other entities. Authority since the Authority has no defined benefit plans. STANDARDS AND INTERPRETATIONS IN ISSUE BUT NOT YET EFFECTIVE OR RELEVANT ANNUAL IMPROVEMENTS 2010 - 2012 CYCLE Standards and interpretations in issue but not yet effective or relevant at the date of issuance of the Authority’s With the exception of the improvement relating to IFRS 2 Share-based Payment applied to share-based payment financial statements are listed below. This listing is of standards and interpretations issued, which the Authority transactions with a grant date on or after 1 July 2014, all other improvements are effective for accounting periods reasonably expects to be applicable at a future date. The Authority intends to adopt these standards when they beginning on or after 1 July 2014. The Authority has applied these improvements for the first time in these financial become effective. statements. They include:
IFRS 2 SHARE-BASED PAYMENT
This improvement is applied prospectively and clarifies various issues relating to the definitions of performance and service conditions which are vesting conditions. The clarifications are consistent with how the Authority has identified any performance and service conditions which are vesting conditions in previous periods. These amendments did not impact the Authority’s financial statements or accounting policies, as the Authority does not carry out share-based payment transactions.
66 \\ // 67 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ANNUAL IMPROVEMENTS 2011 - 2013 CYCLE AMENDMENTS TO IAS 16 AND IAS 41 AGRICULTURE: BEARER PLANTS
IFRS 3 BUSINESS COMBINATIONS The amendments change the accounting requirements for biological assets that meet the definition of bearer plants. Under the amendments, biological assets that meet the definition of bearer plants will no longer be within the scope - The amendment is applied prospectively and clarifies for the scope exceptions within IFRS 3 that: of IAS 41 Agriculture. Instead, IAS 16 will apply. After initial recognition, bearer plants will be measured under IAS - Joint arrangements, not just joint ventures, are outside the scope of IFRS 3; 16 at accumulated cost (before maturity)and using either the cost model or evaluation model (after maturity). The amendments also require that produce that grows on bearer plants will remain in the scope of IAS 41 measured This scope exception applies only to the accounting in the financial statements of the joint arrangement itself. The at fair value less costs to sell. For government grants related to bearer plants, IAS 20 Accounting for Government Authority is not a joint arrangement, and thus this amendment is not relevant. Grants and Disclosure of Government Assistance will apply. The amendments are retrospectively effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not IFRS 13 FAIR VALUE MEASUREMENT have any impact to the Authority as the Authority does not have any bearer plants.
The amendment is applied prospectively and clarifies that the portfolio exception in IFRS 13 can be applied not only to IFRS 9 FINANCIAL INSTRUMENTS financial assets and financial liabilities, but also to other contracts within the scope of IAS 39. The Authority does not apply the portfolio exception in IFRS 13. In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three IAS 40 INVESTMENT PROPERTY aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application The description of ancillary services in IAS 40 differentiates between investment property and owner-occupied permitted. Except for hedge accounting, retrospective application is required but providing comparative property (i.e., property, plant and equipment). The amendment is applied prospectively and clarifies that IFRS 3, and information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with not the description of ancillary services in IAS 40, is used to determine if the transaction is the purchase of an asset or some limited exceptions. a business combination. In previous periods, the Authority has relied on IFRS 3, not IAS 40, in determining whether an acquisition is of an asset or is a business acquisition. Thus, this amendment did not impact the accounting policy of the C. PROPERTY, PLANT AND EQUIPMENT Authority. Property, plant and equipment is subsequently carried at revalued amounts less accumulated depreciation and any IFRS 14 REGULATORY DEFERRAL ACCOUNTS impairment losses, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the IFRS 14 is an optional standard that allows an entity, whose activities are subject to rate-regulation, to continue applying carrying amount does not differ materially from that which would be determined using fair value at the reporting most of its existing accounting policies for regulatory deferral account balances upon its first-time adoption of IFRS. date. Initial recognition of property, plant and equipment is shown at cost or fair value which ever is the greater. Entities that adopt IFRS 14 must present the regulatory deferral accounts as separate line items on the statement of Subsequent costs are included in the asset’s carrying amount, only when it is probable that future economic benefits financial position and present movements in these account balances as separate line items in the statement of profit or associated with the item will flow to the Authority. The carrying amount of the replaced part is derecognised. All loss and OCI. The standard requires disclosure of the nature of, and risks associated with, the entity’s rate-regulation other repairs and maintenance are charged to the income statement during the financial year in which they were and the effects of that rate-regulation on its financial statements. IFRS 14 is effective for annual periods beginning incurred. on or after 1 January 2016. Since the Authority is an existing IFRS preparer and is not involved in any rate-regulated activities, this standard does not apply. Any surplus arising on revaluation is credited to the revaluation surplus except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in that case the increase is credited AMENDMENTS TO IAS 16 AND IAS 38 to the statement of comprehensive income. Upon disposal any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. CLARIFICATION OF ACCEPTABLE METHODS OF DEPRECIATION AND AMORTISATION DEPRECIATION The amendments clarify the principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is a part) rather Depreciation is not provided on freehold land and property plant and equipment in the course of construction than the economic benefits that are consumed through use of the asset. As a result, a revenue based method cannot as they are not yet available for use. Depreciation is provided on property plant and equipment on a straight line be used to depreciate property, plant and equipment and may only be used in very limited circumstances to amortise basis taking into account any residual value. The estimated useful lives assigned to groups of property plant and intangible assets. The amendments are effective prospectively for annual periods beginning on or after 1 January 2016, equipment are: with early adoption permitted. These amendments do not have any impact to the Authority given that the Authority has not used a revenue-based method to depreciate its noncurrent assets. Buildings 30 to 50 years Furniture and fittings up to 10 years Plant and equipment 5 to 25 years Vehicles 6 to 10 years
68 \\ // 69 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016 C. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) G. CASH AND CASH EQUIVALENTS
The residual value, useful life of each asset and, depreciation methods are reviewed at each financial period-end, Cash, short and medium term deposits in the balance sheet comprise of cash at banks and on hand and short term and adjusted prospectively if appropriate. Each part of an item of property, plant and equipment with a cost that is deposits with an original maturity of three months or less. For the purpose of the cash flow statement, cash and significant in relation to the total cost of the item shall be depreciated separately. cash equivalents consist of cash and cash equivalents as defined above, including the balances of outstanding bank overdrafts. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from de-recognition of the asset (calculated as the H. PROVISIONS AND CONTINGENCIES difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement Provisions are recognised when the Authority has a present obligation (legal or constructive) as a result of of comprehensive income in the year the asset is derecognised. Consumables and loose tools are written off in the past events, it is probable that an outflow of resources embodying economic benefits will be required to settle year of purchase. the obligation, and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money D. FOREIGN CURRENCY TRANSLATION is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as FUNCTIONAL CURRENCY a finance cost. Contingent assets and contingent liabilities are not recognised, but are disclosed in the notes to the financial statements. Items included in the financial statements of the Authority are measured using the currency of the primary economic environment in which the Authority operates (functional currency). The financial statements are I. EMPLOYEE BENEFITS presented in Botswana Pula which is the Authority’s functional currency. SHORT-TERM EMPLOYEE BENEFITS FOREIGN CURRENCY TRANSACTIONS AND BALANCES The cost of short-term employee benefits, those payable within 12 months after the service is rendered, such as Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at annual leave are recognised in the period in which the service is rendered and are not discounted. The short the date of the transaction. Customers are billed at a monthly average exchange rate. Foreign exchange gains and -term employee benefits of the Company include the following: salaries, paid annual leave and paid sick leave, losses resulting from the settlement of such transactions and from translation of the year end balances of monetary bonuses and non-monetary benefits (car, housing medical aid and subsidised goods and services). The cost of assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. termination benefits is recognised only if the company is demonstrably committed without any realistic possibility of withdrawing the commitment, by a formal plan to prematurely terminate an employee’s employment. E. IMPAIRMENT OF NON FINANCIAL ASSETS DEFINED CONTRIBUTION PLAN The Authority assesses at each reporting date whether there is an indication that an asset may be impaired. If The Pension Fund was established with effect from 1 March 2011 and was registered as a defined contribution any such indication exists, or when annual impairment testing for an asset is required, the Authority makes an scheme pension fund, in terms of the Pension and Provident Funds Act (Chapter 27:03). All permanent employees estimate of the asset’s recoverable amount. of Civil Aviation Authority of Botswana are members of the Pension Fund. Employees contribute 5% of their basic salaries towards the Fund and the employer contributes 15% of the members pensionable earnings towards the An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s fair value less cost to sell and Fund to finance retirement benefits, death benefits and Fund expenses. The Authority does not have any legal its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are or constructive obligation to pay further contributions if the fund fails to meet employee benefits at the end of largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds service. For those employees who do not participate in the Pension Fund, provision is made for severance benefits its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. in terms of the Employment Act (Cap 47.01).
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax J. LEASES discount rate that reflects the current market assessments of the time value of money and the risks specific to the assets. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are Leases in which a significant portion of the risk and rewards of ownership are retained by the lessor are classified corroborated by available fair value indicators. as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. F. TRADE RECEIVABLES
Trade receivables are recognised initially at fair value and subsequently measured at fair value less provision for impairment. The amount of the provision is the difference between the carrying amount and the present value of the estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowable account, and the amount of the loss is recognised in the income statement within ‘general and administration expenses’. When a trade receivable is uncollectible, it is written off against the provision for bad debts. Subsequent recoveries of the amounts previously written off are credited against ‘other income’ in the income statement.
70 \\ // 71 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016 K. REVENUE RECOGNITION N. FINANCIAL RISK MANAGEMENT
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Authority and the FOREIGN EXCHANGE RISK revenue can be reliably measured. Revenue is measured at fair value of the consideration receivable, excluding discounts, rebates and other value added taxes and duty. In the normal course of business, the Authority enters into some transactions denominated in foreign currencies. In addition, the Authority has receivables and liabilities in foreign currencies mainly in the United States Dollars L. BORROWING COSTS (USD). As a result, the Authority is exposed to fluctuations in foreign currency exchange rates. To manage the foreign exchange risk arising from these transactions the Authority keeps the revenue received in USD in a Borrowing Costs are recognised initially at proceeds received and subsequently stated at amortised cost. There USD bank account from which all USD denominated goods and services are paid. The amount of revenue that were no borrowing costs during the period under review. the Authority receives in USD monthly far exceeds the obligations payable in USD. Furthermore the USD has M. GOVERNMENT GRANTS/DEFERRED appreciated against the pula during the financial year under consideration. As a result it was not economical to hedge for the USD currency fluctuations. Government grants are recognised when there is reasonable assurance that the Authority will comply with the INTEREST RATE conditions attached to them and the grants will be received. Fluctuation in interest rates impact on the value of short-term cash investment and financing activities, giving rise GOVERNMENT GRANTS RELATED TO ASSETS to interest rate risk. The risk is managed by ensuring that surplus funds are invested to achieve maximum returns while minimising risk. These are grants whose primary condition is that for the Authority to qualify for them the Authority should purchase, construct or otherwise acquire long-term assets. Subsidiary conditions may also be attached restricting LIQUIDITY RISK the type or location of the assets or the periods during which they are to be acquired or held. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability The Authority presents the grant in the statement of financial position by setting up the grant as deferred income. of funding through an adequate amount of committed credit facilities and the ability to close out market positions. When the grant relates to an expense item, it is recognised on a systematic basis over the periods that the related Due to the dynamic nature of the underlying businesses, management aims to maintain flexibility in funding by costs, for which it is intended to compensate, are expensed. When the grant relate to an asset, it is recognised as keeping committed credit lines available. income in equal amounts over the expected useful life of the related asset.
GOVERNMENT GRANTS RELATED TO INCOME
These are government grants other than those related to assets. These are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate.
A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Authority with no future related costs is recognised as income of the period in which it becomes receivable. Government grants related to income are presented as income in the statement of comprehensive income (separately).
The utilisation of a grant related to income is applied first against any un-armotised deferred credit set up in respect of the grant. To the extent that the repayment exceeds any such deferred credit, or where no deferred credit exists, the repayment is recognised immediately as an expense.
Utilisation of a grant related to an asset is recorded by increasing the carrying amount of the asset or reducing the deferred income balance by the amount repayable. The cumulative additional depreciation that would have been recognised to date as an expense in the absence of the grant is recognised immediately as an expense.
72 \\ // 73 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
CREDIT RISK 2016 2015
Financial assets of the Authority, which are subject to credit risk, consist mainly of debtors and cash resources. The Pula Pula Authority has policies in place to ensure that as far as possible service provided on credit are made to customers with an appropriate credit history. Payment for other services are made in cash or electronic funds transfers. The Authority 1. GOVERNMENT GRANT holds cash deposits with reputable financial institutions. The balances held with different banks as at the balance sheet date are shown below. Annual Government Grant 159 486 530 143 432 140 159 486 530 143 432 140 2016 2015 Pula Pula 2. FINANCE INCOME Interest income - Banks 2 173 617 3 001 755 Income 2 173 617 3 001 755 Stanbic Bank of Botswana Ltd 28 341 271 8 934 043 Finance costs Barclays Bank of Botswana Ltd 131 805 211 84 852 893 Interest expense - - Cash on hand 22 255 23 265 - - 160 168 736 93 810 201 Net interest income 2 173 617 3 001 755
CAPITAL RISK MANAGEMENT 3. EMPLOYEE BENEFITS EXPENSE
The Authority is funded by the Government of Botswana. In managing capital, the Authority strives to provide Salaries and allowances 183 467 837 150 230 966 maximum benefits to stakeholders at the lowest possible cost. There were no borrowings during the period under Group insurance 1 164 431 2 174 770 review. 184 632 268 152 405 736 FAIR VALUE ESTIMATES
Financial instruments consist of trade receivables, bank and cash balances and other payables resulting from 4. SURPLUS/(DEFICIT) FOR THE YEAR FROM OPERATING ACTIVITIES normal business operations. The nominal value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The particular recognition methods adopted are disclosed in the Surplus/(deficit) for the year from operating individual policy statements associated with each item. Activities is stated after charging/crediting the following: 5 969 042 26 731 800 O. INVENTORIES Remuneration paid to executive management 5 097 476 4 277 497 Accounts receivable impairment charges 3 774 033 9 172 809 Inventory is valued at cost or net realisable value which ever is the lesser. The Authority held no stock items as at Sitting allowance for Board members 44 350 60 123 31 March 2016. Consumables like stationery and cleaning materials are charged off in the accounts during the year for which accounts are prepared. Employee costs 197 268 332 154 516 330 Armotisation of capital grant 116 282 557 108 143 822 P. TAXATION Depreciation on non current assets (120 206 399) (110 963 394) No provision for taxation is required as Civil Aviation Authority of Botswana is exempt from taxation in terms of Foreign exchange gain/(loss) 2 293 671 1 143 669 the Income Tax Act (CAP 52:01). Stores, Spares and Consumables 10 549 447 10 912 414 Utilities 13 534 067 10 407 665 Repairs and maintenance 12 621 520 6 277 382 General office and administration 32 716 385 29 392 179
74 \\ // 75 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
Cost/valuation Accumulated Depreciation Net Book values Transfer from Charge for Closing Opening Development Closing Opening Balance this year Disposals Balance 2016 2015 Balance Expenditure Additions Valuation Disposal Balance Pula Pula Pula Pula Pula Pula Pula Pula Pula Pula Pula Pula
5. PROPERTY, PLANT AND EQUIPMENT 31 Mar 16 Land 132 284 000 158 307 450 158 307 450 - - - - 158 307 450 132 284 000 Buildings 3 358 408 016 318 487 4 117 520 985 4 117 520 985 223 580 979 76 404 819 - - 4 117 520 985 3 134 827 038 Equipment 262 093 566 25 864 067 349 892 372 349 892 372 62 482 339 28 527 683 - - 349 892 372 199 611 227 Furniture and fittings 6 195 360 247 239 4 925 275 4 925 275 2 013 507 1 214 386 - - 4 925 275 4 181 853 Motor vehicles 30 094 449 3 089 589 38 889 520 216 000 38 889 520 14 526 616 3 665 666 165 500 - 38 889 520 15 567 833 Computers 4 688 537 548 698 6 783 335 6 783 335 2 560 617 528 913 - - 6 783 335 2 127 920 Office equipment 35 704 870 50 329 35 468 710 35 468 710 8 088 335 2 743 615 - - 35 468 710 27 616 535 3 829 468 799 - 30 118 409 4 711 787 647 216 000 4 711 787 647 313 252 392 113 085 082 165 500 - 4 711 787 647 3 516 216 406
Property, plant and equipment 2015 2014 31 Mar 15 Pula Pula Land 123 165 000 9 119 000 132 284 000 - - - - 132 284 000 123 165 000 Buildings 3 279 355 867 79 052 149 3 358 408 016 147 686 330 75 894 648 - 223 580 979 3 134 827 038 3 131 669 537 Equipment 222 949 728 32 986 322 6 551 716 394 200 262 093 566 40 277 815 22 307 142 102 617 62 482 339 199 611 227 182 671 913 Furniture and fittings 5 634 319 580 441 19 400 6 195 360 1 293 769 728 668 8 930 2 013 507 4 181 853 4 340 551 Motor vehicles 30 336 321 974 628 1 216 500 30 094 449 10 415 728 4 885 202 774 314 14 526 616 15 567 833 19 920 593 Computers 3 805 140 924 059 40 662 4 688 537 1 703 730 881 243 24 356 2 560 617 2 127 920 2 101 410 Office equipment 35 337 824 371 846 4 800 35 704 870 5 379 610 2 710 552 1 827 8 088 335 27 616 535 29 958 214 3 700 584 200 32 986 322 97 573 839 1 675 562 3 829 468 798 206 756 982 107 407 455 912 045 313 252 392 3 516 216 406 3 493 827 218
The assets of the Authority were last valued for the period ended 31 March 2012. In accordance with IAS 16, the assets of the Authority were revalued as at 31 March 2016 by professional independent valuers, Aon Risk Management.
76 \\ // 77 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
2016 2015 2016 2015 Pula Pula Pula Pula
6. INTANGIBLE ASSETS 7. DEVELOPMENT EXPENDITURE Cost at 1 April 49 273 018 25 883 723 Balance at beginning of the year 28 124 908 23 943 207 Acquisitions during the year 22 170 955 23 389 295 Expenditure incurred during the year 175 690 244 44 002 318 Closing balance 71 443 973 49 273 018 Contract costs capitalised during the year - (32 986 322) Contract costs written off upon capitalisation - (6 834 295) Accumulated depreciation Balance at end of the year 203 815 152 28 124 908 Balance at 1 April 7 151 385 3 595 446 Current year charge 7 121 317 3 555 939 Closing balance 14 272 702 7 151 385 Net book value 57 171 272 42 121 634
78 \\ // 79 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
8. AMORTISATION OF CAPITAL GRANT
The capital fund is made up of grants in the form of non current assets received from the Botswana Government. The non current assets received are listed below and the net book value of these assets also represents the net book value of the capital grant. Therefore the amount reflected as ‘Amortisation of capital funds’ refers to the depreciation charge of these assets for each respective year.
Cost/valuation Amortisation of capital fund: Net Book Values Opening Closing Opening Charge for Revaluation Closing Balance Additions Disposals Balance Balance the year Disposals Loss Balance 2016 2015 Pula Pula Pula Pula Pula Pula Pula Pula Pula Pula Pula 31 March 2016 Property. Plant and Equipment Land 123 165 000 123 165 000 - - - 123 165 000 123 165 000
Buildings 3 384 517 499 3 560 207 743 223 405 584 76 294 841 56 633 862 299 700 425 3 260 507 318 3 161 111 915
58 497 075 26 148 740 8 992 022 84 645 816 161 306 627 163 758 293 Equipment 222 255 368 23 697 075 245 952 443 982 122 585 081 7 604 1 567 203 1 041 661 1 626 742 Furniture and fittings 2 608 864 2 608 864 15 113 314 3 487 936 165 500 32 000 18 601 250 11 439 016 15 142 952 Motor vehicles 30 256 266 216 000 30 040 266 1 477 581 330 723 120 362 1 808 304 1 797 135 2 127 857 Computers 3 605 439 3 605 439 7 684 909 2 662 193 3 171 10 347 102 24 287 862 26 950 056
Office Equipment 34 634 964 34 634 964 5 563 244 6 773 042 - 12 336 286 55 544 995 40 693 960 - - - 203 666 245 Computer software 46 257 204 21 624 077 67 881 281 312 723 829 116 282 557 165 500 65 789 021 429 006 386 3 842 755 859 3 534 576 775 Capital Grant work in progress 27 976 000 175 690 244 203 666 245
3 875 276 605 221 011 396 216 000 4 271 762 245 2015 2014 31 March 2015 - - - 123 165 000 123 165 000 147 621 989 75 783 595 223 405 584 3 161 111 915 3 129 910 636 Land 123 165 000 - - 123 165 000 37 581 157 20 915 919 58 497 075 191 734 293 197 247 199
Buildings 3 277 532 625 106 984 874 - 3 384 517 499 665 845 316 278 982 122 1 626 742 1 953 490 10 344 232 4 769 082 15 113 314 15 142 952 19 379 592 Equipment 234 828 356 15 694 596 291 583 250 231 369 948 507 529 075 1 477 581 2 127 857 2 665 920 Furniture and fittings 2 619 334 - 10 470 2 608 864 5 117 533 2 567 376 7 684 909 26 950 056 29 519 651 Motor vehicles 29 723 824 974 628 442 186 30 256 266 2 300 746 3 262 498 5 563 244 40 693 960 20 706 714 Computers 3 614 427 - 8 988 3 605 439 204 580 007 108 143 822 312 723 829 3 562 552 777 3 524 548 201
Office Equipment 34 637 183 - 2 219 34 634 964
Computer software 23 007 460 23 249 744 - 46 257 204
3 729 128 209 146 903 843 755 445 3 875 276 606
80 \\ // 81 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
2016 2015 2016 2015 Pula Pula Pula Pula
9 CASH AND SHORT-TERM DEPOSITS 10 TRADE AND OTHER RECEIVABLES Cash at bank and on hand 406 337 720 996 Trade receivables 60 445 375 50 436 146 Short-term deposits with banks 14 805 461 5 964 280 Provision for impairment - doubtful debts (31 919 080) (28 145 048) Medium term deposits with banks 144 956 939 87 124 925 28 526 294 22 291 098 160 168 736 93 810 201 Other receivables 2 564 998 958 139
Cash at bank earns interest at floating interest rates on daily deposit balances. Short-term deposits are usually 31 091 293 23 249 237 made for a maximum period of three months. The fair value of cash and short-term deposits is P158 497 929 Prepayments 11 269 233 4 358 027 (2015 : P93 810 201). 42 360 526 27 607 264 For purposes of the cash flow statement, cash and cash equivalents comprise the following:
The fair values of accounts receivables are as follows Cash and cash equivalents Accounts receivable 31 091 293 23 249 237 Cash at bank and on hand 406 337 720 996 Prepayments 11 269 233 4 358 027 Short-term deposits 14 805 461 5 964 280 42 360 526 27 607 264 Medium term deposits 144 956 939 87 124 925 Movement on the provision for impairment of accounts receivable: 160 168 736 93 810 201 As at 1 April 37 067 186 27 894 375 Provision for impairment 3 774 033 9 172 809 As at 31 March 40 841 220 37 067 186
The ageing of trade receivables at the reporting date is analysed as follows: Current 9 640 066 8 355 310 Past due - 60 days 9 216 075 6 624 837 Past due 61 - 120 days 10 121 495 3 159 543 Over 120 31 032 073 31 778 068 60 009 709 49 917 758
82 \\ // 83 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
2016 2015 2016 2015 Pula Pula Pula Pula
11 TRADE AND OTHER PAYABLES 15. RELATED PARTY DISCLOSURES Trade payables 22 032 064 16 952 687 All related party transaction balances are non-interest bearing. The following transactions were carried out with related parties. Other payables 32 896 015 41 118 311 54 928 079 58 070 998 Grants from Government of Botswana 159 486 530 143 432 140
Trade and other payables are non interest bearing and have an average Compensation of Executive management term of 30 days. Salaries and benefits 5 097 476 4 277 497 Board of Directors fees 44 350 60 123 12 DEFERRED INCOME - GOVERNMENT CONTRIBUTIONS 5 141 827 4 337 620 Balance at beginning of the year 20 797 606 37 838 701 Contributions Received 251 480 220 27 742 172 Amounts included in Trade Payables regarding related parties Contributions Paid (173 845 008) (44 783 267) Air Botswana 637 992 429 035 98 432 818 20 797 606 Be Mobile 38 087 46 749 Botswana Power Corporation 3 012 727 981 474 13 COMMITMENTS AND CONTINGENCIES Botswana Post 23 913 37 013 The Authority entered into commercial leases on office premises. The lease period is five years with an option to renew. Future minimum Botswana Telecommunications Corporation 341 225 625 012 rentals payable under non - cancellable operating leases as at 31 March Water Utilities Corporation 392 991 599 023 are as follows. 4 446 935 2 718 306 Premises Within one year 4 484 843 4 271 279 Amounts included in Trade Receivables regarding related parties Within two to five years 7 381 604 11 866 447 Air Botswana 8 012 926 7 942 127 11 866 447 16 137 726 Botswana Government 1 702 841 1 386 757 Botswana Unified Revenue Services 644 052 646 820 14 COMPENSATION OF EXECUTIVE MANAGEMENT Botswana Tourism Organisation 58 734 53 514 Basic salaries and allowances 5 097 476 4 277 497 Botswana Telecommunications Corporation 25 684 88 340 5 097 476 4 277 497 Botswana Post 153 814 37 069 Botswana Development Corporation - 23 867 10 598 050 10 178 493
Amounts due include amounts due from Government departments (Botswana Police, Department of Immigration and Department of National Museums).
84 \\ // 85 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
16. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Loans and Financial Total receivables liabilities at Exposure to interest risk and credit risk is experienced in the normal course of business. However, the Authority amortised cost does not hold or issue derivative financial instruments for trading purposes which are more vulnerable to Pula Pula Pula such risks. Instead, the Authority’s principal financial liabilities comprise trade and related party payables. The Authority also has various financial assets such as receivables, cash and short-term deposits, which arise directly from its operations. 19 CLASSIFICATION OF FINANCIAL INSTRUMENTS 17. FAIR VALUE OF FINANCIAL INSTRUMENTS At March 2016 The fair value of financial instruments are identical to the carrying values reflected in the balance sheet. The table Financial assets below summarises the information on fair value of financial instruments. No valuation method has been used to Cash in hand 15 211 797 - 15 211 797 measure the fair values since the carrying amounts approximate the fair values. Short & medium-term deposits 14 805 461 - 14 805 461 2016 2015 Trade receivables 42 360 526 - 42 360 526 Pula Pula Financial liabilities - - - Trade and other payables - (54 928 079) (54 928 079) 18 FAIR VALUE OF FINANCIAL INSTRUMENTS 72 377 784 (54 928 079) 17 449 705 Carrying Fair value At March 2015 amount Financial assets Pula Pula Cash in hand 6 685 276 - 6 685 276 At March 2016 Short & medium-term deposits 5 964 280 - 5 964 280 Financial assets Trade receivables 27 607 264 - 27 607 264 Cash at bank & on hand 15 211 797 15 211 797 Financial liabilities - - Short & medium term deposits 14 805 461 14 805 461 Trade and other payables - (58 070 998) (58 070 998) Trade and other receivables 42 360 526 42 360 526 40 256 819 (58 070 998) (17 814 178) 72 377 784 72 377 784 Financial liabilities Trade payables 54 928 079 54 928 079 54 928 079 54 928 079 At March 2015 Financial assets Cash at bank & hand 6 685 276 6 685 276 Short & medium term deposits 5 964 280 5 964 280 Trade and other receivables 27 607 264 27 607 264 40 256 820 40 256 820 Financial liabilities Trade payables 58 070 998 58 070 998 58 070 998 58 070 998
86 \\ // 87 CIVIL AVIATION AUTHORITY OF BOTSWANA PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES ANNUAL REPORT 2015/2016
FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016 FOR THE YEAR ENDED 31 MARCH 2016
2016 2015 2016 2015 Pula Pula Pula Pula
20 REVENUE 22 OTHER OPERATING COSTS Aeronautical Stores, Spares and Consumables Enroute navigation charges-Scheduled 57 120 102 46 944 565 Motor vehicle expenses 5 707 697 6 049 946 Landing charges 8 027 357 8 089 092 Consumables 4 841 750 4 862 469 10 549 447 10 912 414 Parking charges 641 550 631 103 Utilities Enroute navigation charges-Non Scheduled 5 297 998 5 039 938 Water charges 2 173 097 1 769 791 Passenger service charge 30 073 751 30 775 268 Electricity 11 360 969 8 637 874 101 160 757 91 479 966 13 534 067 10 407 665 Non Aeronautical Repairs and maintenance Regulatory Charges 1 835 833 1 626 842 Equipment, furniture and others 7 382 591 4 182 904 Other Airport Income 15 579 875 16 069 585 Roads, pavements, buildings and others 5 238 930 2 094 477 Unrealised gain (Loss) - 755 445 12 621 520 6 277 382 Foreign exchange gain/(loss) 2 293 671 1 143 669 General office and administration 19 709 379 19 595 541 Printing, postage and stationery 1 596 139 1 586 574 Communications expenses 5 249 239 4 141 381 Total Revenue 120 870 137 111 075 507 Office rentals 4 271 639 4 150 447 Advertising and publicity 2 422 941 634 424 21 STAFF COSTS Subscriptions 1 297 793 1 240 292 Salaries and allowances 183 467 837 150 230 966 Legal and other professional fees 4 173 673 9 023 833 Group insurance 1 164 431 2 174 770 Board sitting fees 44 350 60 123 Uniforms 1 568 148 312 741 Security 3 341 711 3 005 785 Training and seminars 3 376 534 1 889 693 Foreign exchange loss - - Traveling and subsistence 7 691 381 4 185 656 Depreciation of non current assets 120 206 399 110 963 394 197 268 332 158 793 826 Provision for bad debts 3 774 033 9 172 809 Insurance 5 556 562 4 367 398 Revaluation expense 2 137 376 - Sundry administration expenses 2 624 962 1 181 921 Impairment Loss - - 156 696 817 149 528 382 Total other operating costs 193 401 850 177 125 843 Total operating expenses 390 670 182 335 919 669
88 \\ // 89 PROVIDER OF EFFICIENT AND EFFECTIVE AVIATION SERVICES
NOTES NOTES
90 \\ // 91 Provider of Efficient and Effective Aviation Services