1 / 23

PRESENTATION OF 2011/2012 ANNUAL REPORT TO PCWEA

PRESENTATION OF 2011/2012 ANNUAL REPORT TO PCWEA. MHLATHUZE WATER Environmental sustainability – we are committed to making a difference. Presented by Mr A.S. Makhanya (Acting Chief Executive) 17/18 April 2013. Content. Graphical area of supply Overview of MW MW Performance 2011/12 KPI’s

dean-gilliam
Download Presentation

PRESENTATION OF 2011/2012 ANNUAL REPORT TO PCWEA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRESENTATION OF 2011/2012 ANNUAL REPORT TO PCWEA MHLATHUZE WATER Environmental sustainability – we are committed to making a difference Presented by • Mr A.S. Makhanya (Acting Chief Executive) • 17/18 April 2013

  2. Content • Graphical area of supply • Overview of MW • MW Performance 2011/12 • KPI’s • Audit Report • Financial Performance • Capital Expenditure • Strategic Objectives 2012/13 • Tariff Increase 2013/14 • Mid-year Performance 2012/13 • Strategic Objectives 2013/14 • Strategic Outcomes 2013/14 • Top 10 Risks • PAIA & PAJA Implementation 17/18 April 2013

  3. uMkhanyakude ZULULAND uTHUNGULU ILEMBE GRAPHICAL AREA OF SUPPLY 17/18 April 2013

  4. OVERVIEW OF THE WATER BOARD • Mhlathuze Water (MW) area of supply covers some 37,000km² stretching from uThukela River in the South and up to East Coast to Mozambique and Swaziland borders, around Vryheid and back to the uThukela River. • MW operational area covers 4 WSA’s in KZN: • uMkhanyakude District Municipality • Zululand District Municipality • uThungulu District Municipality • uMhlathuze Local Municipality • North of ILembe District Municipality • Supply Bulk Water and Sanitation services to Industries & Water Services Authorities in its area of operation 17/18 April 2013

  5. ANNUAL REPORT 2011/2012 Performance on Key Strategic Objectives: 17/18 April 2013

  6. ANNUAL REPORT 2011/2012 Performance on Key Strategic Objectives: 17/18 April 2013

  7. ANNUAL REPORT 2011/2012 (Cont.) • Audit Report: • Deloitte and Touché in partnership with Nkonki Incorporated were appointed for the 2011/2012 financial year audit. • Annual financial statements were prepared in accordance with SA GAAP, the relevant provisions of Water Services Act in a manner required by PFMA. • MW received Unqualified Audit Opinion for the 2011/2012 year. • There were no significant deficiencies in internal controls. 17/18 April 2013

  8. ANNUAL REPORT 2011/2012 (Cont.) Annual Financial Statements: • Revenue increased by 12% for 2011/2012YE (mainly due to tariff increases). • Staff cost increased by 6% from the previous year mainly due to annual salary increase of 8%. • Energy cost increased by 20% due to electricity price increase (Eskom & City of Mhlathuze). • Maintenance costs increased by 166% mainly due to maintenance done to the A Line for loss arising out of storm damage and to correct and maintain the offshore pipeline system in an acceptable and reliable operating condition. • Depreciation charges increased by 48% due to the commissioning of Nsezi upgrade and the Empangeni Phase 2 project. • Net finance cost increased due to projects which were commissioned during the year. • Saving on chemicals of 24% was due to better quality of raw water abstracted from the river, lesser chemicals used in the purification process. 17/18 April 2013

  9. ANNUAL REPORT 2011/2012 (Cont.) Key Financial Ratios: 17/18 April 2013

  10. CAPITAL EXPENDITURE 2011/2012 17/18 April 2013

  11. STRATEGIC OBJECTIVES 2012/2013 17/18 April 2013

  12. STRATEGIC OBJECTIVES 2012/2013 17/18 April 2013

  13. STRATEGIC OBJECTIVES 2012/2013 17/18 April 2013

  14. MID-YEAR PERFORMANCE 2012/2013 • All quarterly reports submitted to all stakeholders. • Surplus of R37,1 million comparing to budgeted surplus of R20,7 million, positive variance of R16,4 million. • Complied with water quality standards. • 100% reliability of supply, no unplanned interruptions. • Staff turnover 2%, target of 5%, positive variance of 3% • Return on assets 9.1% against 5.7%. • BEE of 69% against 51% target. • Outstanding debtors days 44 days against budget of 30 days (contributors are the City of uMhlathuze and DWA on the Tugela/Goedetrouw TG scheme). 17/18 April 2013

  15. MID-YEAR PERFORMANCE 2012/2013 • Capital expenditure at 45% of budget (incl. Committed) • No fruitless and wasteful expenditures or unauthorised expenditure incurred during the period. • Internal audit conducted as per annual plan. • Enterprise Risk management activities are in progress. 17/18 April 2013

  16. BULK WATER TARIFF INCREASE 2013/2014 17/18 April 2013

  17. BULK WATER TARIFF INCREASE 2013/2014 (Cont.) • A General tariff consultation meeting was held on the 30 November 2012 with City of uMhlathuze. • Thereafter consultation with individual consumers was undertaken. • The tariff increase proposal was submitted on 03 December 2012 to National Treasury and SALGA and recommendation was received during January 2013. • The consumers noted the proposed increase as indicated above. • Tariffs will be tabled in Parliament by Minister. 17/18 April 2013

  18. KEY STRATEGIC FOCUS AREA FOR 2013/2014 17/18 April 2013

  19. KEY STRATEGIC FOCUS AREA FOR 2013/2014 17/18 April 2013

  20. ALIGNMENT TO DWA OUTCOMES 17/18 April 2013

  21. Top 10 Risks 17/18 April 2013

  22. PAIA & PAJA • PAIA – Fully Implemented • PAJA – Still in progress 17/18 April 2013

  23. THANK YOU 17/18 April 2013

More Related