INTEGRATED REPORT Contents Introduction 2 Vision and Mission 4 Ten thrusts to direct transformation of cricket 5 CSA President’s Report 6 Chief Executive’s Report 10 Brief Fact Sheet 14 Business Model 18 Industry Overview 26 Governance 30 Audit and Risk Sub-committee’s Report 34 Social and Ethics Sub-committee’s Report 38 Transformation Sub-committee’s Report 39 HR and Remunerations Sub-committee’s Report 40 Cricket Pipeline Sub-committee’s Report 42 Cricket Sub-committee’s Report 44 Financial & Commercial Sub-committee’s Report 46 Senior Management 48 Summary Financial Statements 50 Notice of Annual General Meeting 56 1 Introduction Welcome to Cricket South Africa’s 2012/13 Integrated image. We believe we will be better able to serve our Report. Integrated reporting has become a worldwide stakeholders and many constituencies as a result. trend in annual reporting and we believe we are the first sporting body in the country to attempt such Secondly, the administration of cricket in our country a report, something about which we are justifiably is becoming increasingly sensitive to the transitional proud. The report gives a deep snapshot into our inner zones between one type of cricket to another, or, workings, our finances and our plans for the future. As for that matter, one phase of cricket to another. such, we believe that this Integrated Report, as our first For example, we have noticed that while the KFC ever attempt at improving disclosure and transparency, Mini-Cricket program is a conspicuous countrywide is in line with international protocol and the success, only approximately 50% of the youngsters recommendations of King III on corporate governance. who play mini-cricket make the transition to hardball cricket. Elsewhere in the pipeline we are sensitive Why an Integrated Report you might reasonably be to the fact that there is a falloff of talented high- asking? We believe that as the result of the bonus school cricketers in their first years out of school; crisis, the intervention of judge Chris Nicholson and similarly, players are struggling to bridge the gap from the subsequent re-structuring of CSA’s board, the semi-professional cricket into franchise cricket and, time had come for a more complete and introspective even further up the pipeline, to leap the gap from a analysis of the running of the sport in South Africa. franchise cricketer to becoming a Protea. Finally, we also wanted to provide all stakeholders with a more concise and transparent view of our Finally, we would like to draw your attention to the business and operations. fact that CSA’s Abridged Financials are contained within this report. For a complete picture of our We would like to draw your attention to the theme annual finances, please consult the CSA website, of “transitions” in the report. We have chosen this www.cricket.co.za. theme for a number of reasons. Firstly – and most obviously – CSA is in the midst of making the Thank you and we hope you enjoy reading CSA’s transition from an organisation with a poor image to first ever Board approved Integrated Report, with its one which has a hopefully more robust and far better recurring motif of ‘integrated’ cogs. 2 3 Vision and Mission VISION CSA VALUES Cricket South Africa’s vision is to make cricket a truly Values are norms or standards for right, good and national sport of winners. fair conduct. They are the underlying beliefs we hold about the way life should be lived and business This has two elements to it: conducted. › To ensure that cricket is supported by the majority CSA is committed to living by the following values: of South Africans, and available to all who want to play it. (a) Honesty and integrity. › To pursue excellence at all levels of the game. We tell the truth and act consistently on a set of ethical principles. MISSION (b) Professionalism and diligence. As the governing body of cricket in South Africa, We strive to perform at the highest level of Cricket South Africa will be lead by: excellence. › Promoting and protecting the game and its (c) Mutual respect and fairness. unique spirit in the context of a democratic South We acknowledge the rights and dignity of others Africa. and treat those we engage with equitably. › Basing our activities on fairness, which includes inclusivity and non-discrimination. TRANSFORMATION › Accepting South Africa’s diversity as a strength. › Delivering outstanding, memorable events. Cricket South Africa subscribes to targeted › Providing excellent service to Affiliates, Associates transformation as outlined in the Preamble of the and Stakeholders. South African Constitution, as well as Chapter Two › Optimising commercial rights and properties on thereof which deals with the Bill of Rights and Equality behalf of its Affiliates and Associates. (to promote the achievement of equality, legislative › Implementing good governance based on and other measures designed to protect and advance King 3, and matching diligence, honesty and persons, or categories of people, disadvantaged by transparency to all our activities. unfair discrimination may be taken). › Actively marketing cricket from mini-cricket to the Proteas. The implementation of CSA’s Transformation Policy and its 10 Thrusts are monitored continuously. The CODE OF ETHICS Policy is reviewed from time to time in terms of the dynamic nature of cricket and of South African society Cricket South Africa’s Code of Ethics is based on: as a whole. › Fundamental ethical values that are enshrined in the South African Constitution. › The core values of the game of cricket as defined in the Preamble to the Laws of Cricket. › The principles and ideals contained in CSA’s Pledge to the Nation in 2002. › CSA’s role as the custodian of cricket in South Africa. 4 Ten thrusts to direct transformation of cricket THRUSTS INTENDED OUTCOMES The Role of CSA CSA is the custodian of the sport and is responsible for the control and enhancement of human assets and strategic opportunities within South Africa. Democratisation This is the process through which human assets of the organisation are unlocked by allowing all legitimate stakeholders to be heard, encouraging local ownership and ensuring accountability and participation in all of its structures. Redress and CSA has a moral duty to ensure that cricket grows and Representivity flourishes amongst the disadvantaged who come from black African communities. This involves a commitment to the development of potential amongst African people at all levels of the game. This programme reaffirms its mission to bring cricket to all the people of South Africa and to facilitate a culture of nonracialism. Constitution The Constitution of CSA should be a unifying force, reflecting the sentiments of a modern organisation, promoting sound governance, facilitating strategic guidance, encapsulating their executive powers and accountabilities and protecting codes of conduct. Competitiveness To ensure the sustainability of cricket in South Africa through and Revenue its ability to compete effectively in the entertainment and sport industry and to maintain and grow its market share. Development This programme must assist in establishing cricket as a people’s game which integrates all communities into cricket activities, thereby contributing to the shaping of a future cricket culture. Closing the Gap To bridge the existing gaps between schools cricket, club cricket, provincial cricket and international cricket in order to minimise loss of human potential and optimise the return on cricket, human and financial investments. Funding and To assist in supporting a financially and operationally viable distribution and stable affiliate/provincial base. This will be achieved by establishing a fair, equitable policy for the distribution of funds that is accepted and supported by affiliates and rewards affiliates for their contribution to cricket. Recording the full To acknowledge, record and respect black cricket during history of South the past century in order to establish the rich and African cricket comprehensive history of South African cricket, recognising diversity as a source of strength. Accountability To establish a mechanism for the monitoring and and implementation of the Transformation Charter and establish monitoring joint accountability among CSA and its affiliates during this process. 5 CSA President’s Report INTRODUCTION “If you want change, I preface my report with this quote from one of the world’s be the change you pre-eminent leaders who was the Chris Nenzani epitome of humility and service. want to see in the President Our organisation has gone through world.” a period of change over the last couple of years. This has been a journey of discovery and anguish for Cricket South Africa, largely because we went through this change out of necessity and coercion. Did we – Mahatma Ghandi believe in the change that we had to embrace? Were we forced by an unprecedented national desire for CSA to right the wrongs of the past whilst we did not actually believe in the inevitable? Any organisation that goes through what CSA went through ought to take stock and commit itself to embrace a new culture and take a stand against the tendencies that brought it into disrepute in the past. Our commitment to change should be grounded in our desire to see the organic transformation and re-birth of our organisation. Our conduct at all times must be directed to advancing the interests of Cricket South Africa and the game of cricket in general. THE GOVERNANCE COMPONENT AT CSA The CSA AGM in February 2013 ushered in a new dispensation in the history of cricket in this country and sport in general. We saw the emergence of a new governance model for cricket after a year-long restructuring process. During the restructuring phase we were motivated by the commitment we had made to the South African public in the wake of the Nicholson Enquiry.