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DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO Director-General 21 OCTOBER 2008

DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO Director-General 21 OCTOBER 2008. CONTENT. 5-Year Overview : Achievements and Challenges Annual Review Programme 1: Administration Annual Review Programme 2: Water Resources Management

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DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO Director-General 21 OCTOBER 2008

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  1. DWAF FIVE-YEAR REVIEW Service delivery: a five year review 2004 to date Ms PAM YAKO Director-General 21 OCTOBER 2008

  2. CONTENT • 5-Year Overview : Achievements and Challenges • Annual Review Programme 1: Administration • Annual Review Programme 2: Water Resources Management • Annual Review Programme 3: Water Services • Annual Review Programme 4: Forestry

  3. FIVE-YEAR OVERVIEW ACHIEVEMENTS FINANCIAL OVERVIEW CHALLENGES

  4. OVERVIEW OF ACHIEVEMENTS • Water Allocation Reform • Water Conservation and Water Demand Management: Strategy finalised and published; • Water Pricing Strategy revised and implemented • National Dam Safety Programme Management • Water Use Authorisation – Licence tracking system deployed countrywide • Local government support • Access to basic services • Legislation (National Water Act; Forestry Laws Amendment Act)

  5. OVERVIEW OF ACHIEVEMENTS (2) • Launch of Women’s Organisation • Improved systems for monitoring water drinking quality (Award Won) • Development and Signing of Forest Sector BBBEE Charter • Approval of policy to transfer indigenous forests • Conclusion of lease agreements for State Plantations (Amathole, MTO) • Successful greening – Million Trees Project • Tabling the State of the Forests 2007 Report • Transfer of Knysna to SanParks • Fire Protection Associations Regulations published

  6. OVERVIEW OF ACHIEVEMENTS (3) • Commissioning of new national infrastructure projects such as Berg Water; VRESAP and Nandoni implemented • Dam safety rehabilitation programme implemented – to address shortcomings of all DWAF dams • Full asset verification and validation process to the approximate value of R90 billion • Several construction projects completed

  7. OVERVIEW OF ACHIEVEMENTS (4) • Construction works completed: • Mooi Mgeni Transfer Scheme Phase I • Morgenstond-Jericho Emergency Pumpstation part of Usutu-Vaal Scheme • Rehabilitation of Nuwejaarspruit downstream of Sterkfontein Dam • DSRP Bulskoek • Lower Olifantsriver balancing dam for the Water Users Association • Bergriver Dam Access Road • La Motte Village Services • Berg River Supplement Scheme

  8. OVERVIEW OF ACHIEVEMENTS (5) • International Relations • Ratification of the SADC Forestry Protocol • Conclusion of MoUs with Lesotho and Mozambique • Nominating as a bidding country for World Water Forum: 2012 • SADC Chairmanship of Water Ministerial Committee • Preparation to take over AMCOW • African Sanitation Conference – Ethekwini Ministerial Declaration on Sanitation 2008

  9. OVERVIEW OF ACHIEVEMENTS (6)

  10. STRATEGIC REVIEW - MAIN The current year DWAF Allocation for 2008/09 Total Exchequer Allocations R586 million R3 238 million R2 427 million R446 million Water Resource Management Water Services Forestry Admin Augmentation to WTE R320 million R1 615 million Current Capital

  11. EXPENDITURE TRENDS FROM 2004 - MEA

  12. FINANCIAL OVERVIEW - MAIN PAST Performance Expenditure trends for the Department over the past five years:

  13. EXPENDITURE TRENDS FROM 2004 -WTE Revenue and expenditure trend 13

  14. CHALLENGES • Water quality issues • Water losses in the municipalities • Impact of land reform on commercial forestry • Financing mechanisms on forestry enterprise development • Capacity of local government to deliver (skills, finances) • Sustainability (e.g. ageing) of infrastructure – asset management • Project implementation of new national infrastructure • Impact of fires on timber supply

  15. CHALLENGES • Legislative: • Water Services Act: Section 78; Reimbursement of Water Boards • Forestry Act, • National Water Act: Regulatory Framework not integrated; • Institutions • Oversight • Establishment • Sustainability • Finance • SAP – Large system that requires proper implementation and post implementation refinements– long term, user requirements • Inadequate capacity (lack of skilled resources) • Segregation between Exchequer and Trading Entity – functions, staff issues • Extensive infrastructure assets – magnitude, spatial distribution/location: Auditable asset plans needed • Rehabilitation and refurbishment of ageing national infrastructure

  16. ANNUAL REVIEW 2007/08 PROGRAMME 1: ADMINISTRATION

  17. ADMINISTRATION FUNCTIONS / BRANCHES • Corporate Services • HR • IT • Communications • Finance • ODG • Ministry

  18. ACHIEVEMENTS CORPORATE SERVICES 2007/08

  19. ACHIEVEMENTS CORPORATE SERVICES 2007/08

  20. ACHIEVEMENTS CORPORATE SERVICES 2007/08

  21. ACHIEVEMENTS FINANCE 2007/08

  22. ACHIEVEMENTS WTE 2007/08

  23. HISTORY OF AUDIT OUTCOMES 2003/04 Annual Report. Adverse opinion as the department did not comply with S40(1)(b) of the PFMA 2004/05. Audit report contained various items that led to emphasis of matter 2005/06 annual report- financial statements prepared on accrual basis. Disclaimer as material items did not meet the required reporting standards.

  24. HISTORY OF AUDIT OUTCOMEScont 2006/07 Audit Report qualified opinion terms of the treatment of assets, independent checks and reconciliations and the BAS reconciliation and an incomplete commitment register and an emphasis of matter in relation to compliance with PFMA and performance monitoring 2007/08 Audit Report qualified opinion mainly due to the incomplete asset register, treatment of the suspense account and the disclosure of loans and receivables.

  25. WTE SPECIFIC REORGANISATION INITIATIVES Background Trading entity was established in 1983 . Water Services and Working for Water was moved from the Trading Entity to Main Account. One consolidated Trading Account (Water Trading Entity and Equipment Trading Entity was merged . Turnaround – financial situation from loss to profit – operation efficiency drive Financial systems development and implementation - SAP

  26. PROJECTS UNDERTAKEN - WTE The following are the projects implemented to ensure an unqualified audit opinion: • Khanya - HR turnaround project • Sakhile • Infrastructure verification project • Resulted in Asset Register for Infrastructure assets that complies with minimum requirements • Improved asset management processes • Siyanqoba • Approved Asset Management, Revenue Management, and other business processes and policies • Hlanyisa • Moveable asset register project • Moveable asset register developed that complies with minimum requirements • SAP super users and trainers 26

  27. OVERVIEW OF ANNUAL EXPENDITURE

  28. EXPENDITURE PER PROGRAMME: 2007/08

  29. OVERVIEW OF ANNUAL FINANCIAL STATEMENTS - MEA

  30. REASONS FOR UNDERSPENDING - MEA Administration: Under spending is mainly attributed to the transfer of staff to municipalities which could not be completed due to protracted negotiations with receiving municipalities and funds will be rolled over to 2007/08 financial year. Insignificant under expenditure. Water Resources: Under spending is mainly attributed to the De Hoop Dam Project that could not commence as planned as a result of delays in finalising the Environmental Impact Assessment Water Services: Under spending is mainly due to delays in finalising transfer agreements with local government in respect of transfer of schemes. Insignificant under expenditure. Forestry: There was a delay in the implementation of the BE charter. Insignificant under expenditure

  31. OVERVIEW OF WTE Operating revenue and expenditure analysis

  32. OVERVIEW OF WTE

  33. OVERVIEW OF WTE

  34. 2006/07: AUDITOR-GENERAL REPORTS

  35. 2007/08: AG REPORT

  36. KEY HIGHLIGHTS FROM AG REPORT- 2007/08 • Unsubstantiated additions to the asset register • Unverified biological assets • Unverified accounts receivable-WTE • Immovable assets- scientifically valued but more refinements required later • Non-compliance/No adherence to policies and procedures wrt to: Debtors and DoRA • Lack of staff skills- capacity • Management monitoring and reviews of transactions

  37. ACTION: CURRENT PROJECTS • Sakhile – Immovable asset management project • Moveable asset management project: to be finalised in March 2009 • SAP implementation (system, training etc.) • Accounting firm – resources (capacity needs) in regions • Siyanqoba-Revenue function reorganisation project: addressing process issues around revenue management • WTE- Operational Efficiency Drive • Implementation of approved Finance structures for Regions Clean Audit – March 2009

  38. WTE SPECIFIC REORGANISATION INITIATIVES Background Trading entity was established in 1983 . Water Services and Working for Water was moved from the Trading Entity to Main Account. One consolidated Trading Account (Water Trading Entity and Equipment Trading Entity was merged . Turnaround – financial situation from loss to profit – operation efficiency drive Financial systems development and implementation - SAP

  39. AUDIT OUTCOME 2007/08 (FIFTH YEAR) 39

  40. ANNUAL REVIEW: 2007/08 PROGRAMME 2: WATER RESOURCES MANAGEMENT

  41. WATER RESOURCES MANAGEMENT BRANCHES • Policy and Regulation • Regions • National Water Resources Infrastructure

  42. ACHIEVEMENTS 2007/08 EQUITABLE AND SUSTAINABLE SUPPLY

  43. ACHIEVEMENTS 2007/08 EQUITABLE AND SUSTAINABLE SUPPLY

  44. ACHIEVEMENTS 2007/08 PROTECTION POLICIES AND MEASURES

  45. ACHIEVEMENTS 2007/08 NATIONAL WATER RESOURCES INFRASTRUCTURE

  46. ANNUAL REVIEW: 2007/08 PROGRAMME 3: WATER SERVICES

  47. WATER SERVICES BRANCHES • Policy and Regulation • Regions

  48. ACHIEVEMENTS 2007/08 Basic sanitation and water services provision:

  49. ACHIEVEMENTS 2007/08 • National transfers – 97% of targeted schemes have been transferred; remaining 3% in final stages • Regional Bulk Infrastructure – R1.4b allocated over three years, R300m for 2007/08 • Sector Policies, Regulations, Guidelines and Strategies • Draft National Water Services Regulation Strategy • Revised draft Revised Water Services Bill • Facilitation of the adoption and approval of a joint National Water Services Sector Support Strategy • Draft Institutional Reform Strategy • Infrastructure Asset Management Strategy • Draft Intergovernmental Relations Framework • Good Practice Report on Free Basic Water, billing systems, meter reading and tariff structures • Draft guideline for Debt Management of Water Boards

  50. ACHIEVEMENTS 2007/08 • Masibambane • Financing agreement Masibambane 3 amounting to R68 billion signed • Masibambane 3 = Water for growth and development, integrates water services and water resources • Draft concept document for Water for growth and development • Local government support • Planning support – development of key performance indicator structure reports for each Water Service Authority (WSA) as part of IDP review process; development of backlog eradication strategies for each WSA • Technical assessment of all new Municipal Infrastructure Grant (MIG) projects for water supply and sanitation • Eight technical experts deployed to relevant municipalities • “A water services authority legislative handbook” been published as a tool that will be an enabler for regulatory support and reinforcement of regulations and compliance

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