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BOTSHELO WATER

BOTSHELO WATER. 2007/08 Annual Report. Contents. Overview 2. Provision of Water Services 3. 2007/08 AFS Intervention – Organisational Diagnosis & Turnaround Strategy Conclusion. 1. Overview.

JasminFlorian
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BOTSHELO WATER

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  1. BOTSHELO WATER • 2007/08 Annual Report

  2. Contents • Overview • 2. Provision of Water Services • 3. 2007/08 AFS • Intervention – Organisational Diagnosis & Turnaround Strategy • Conclusion

  3. 1. Overview • 1.1Operates and maintains water treatment works in Ngaka Modiri Molema and Dr Ruth S Mompati District Municipalities in the NW Province i.t.o. Water Services Provider Agreements. • 1.2 Implementing Agency of the Tswasa Water Scheme. • 1.3 Governance structures are in place.

  4. 2. Provision of Water Services • 2.1 NW relies mostly on underground water. • 2.2 BW operate and maintains more than 500 boreholes and six water purification plants. • 2.3 Boreholes are tested according to the SANS 241 guidelines and rectifications done accordingly. Achieved 97% • compliance in 2007/08.

  5. 3. 2007/08 AFS • 3.1 Qualified Audit Opinion: • 3.1.1 Trade Payables – lack of supporting documentation. Going forward, controls in terms of the PFMA have been implemented. • 3.1.2 Trade Receivables – difference between the debtors listing and the aged analysis. Subsequent reconciliations i.r.o. trade receivables have been performed to resolve • the differences

  6. 3. 2007/08 AFS (Cont) • 3.2 Emphasis of Matter: • 3.2.1 Long overdue balances owing by bulk and retail customers – debtors reconciliations have been performed and consultations have been held with major bulk customers to deal with the payment of amounts due. • 3.2.2 Amounts owing to the Department of Water and • Environmental Affairs for the purchases of raw • water – in discussions with the Department to • resolve the matter.

  7. 3. 2007/08 AFS (Cont) • 3.3 Revenue – decrease of 10% from 2006/07. • 3.4 Operating Expenses – increase of 30% from 2006/07 mainly due to the following: • Employee costs; • Consulting & professional fees; • Stock losses; • Repairs & Maintenance; • Telephone & fax

  8. 4. Intervention – Organisational Diagnosis • We have identified the following areas as needing urgent attention: • Understanding of the full water process; • Budgeting & Cash Management; • Sales & Debtors; • Purchases & Creditors; • Inventory, Stock & Asset Management; • Supply Chain Management; • Accounting Systems; • Water Quality & Water Loss; • Human Capital Utilisation

  9. 4. Intervention – Turnaround Strategy Pillars 4.1 4.3 4.2

  10. 4. Intervention – Turnaround Strategy • 4.1 Revenue Enhancement • Adherence to approved policies; • Debt collection strategy; • Integrated financial management system; • Bill all revenue streams properly & timeously; • Manage timing of cash flows.

  11. 4. Intervention – Turnaround Strategy • 4.2 Cost Containment • Efficient management of credit cycles; • Manage budget vs actual; • Review & monitoring of operating expenditure; • Better utilisation of fixed assets.

  12. 4. Intervention – Turnaround Strategy • 4.3 Operational Efficiency • Correct measurement of water- in and out (balance); • Water loss management plan; • Supply Chain control; • Stores control system; • Overtime control and other benefits.

  13. 5. Conclusion • 5.1 10 years of cumulative mismanagement. • 5.2 Continuous oversight by the Department of Water and Environmental Affairs to support Botshelo Water to return to viability. • 5.3 Since its appointment in 2007, the Board has overcome major obstacles. THANK YOU

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