Presentation of 2006/7 Annual Report and Financial Statements

1. Presentation of 2006/7 Annual Report and Financial Statements Inkomati Catchment Management Agency “Water for all in Inkomati” Presentation by Sizile Ndlovu (CEO) and Nandha Govender (Acting Chairperson)

2. Introduction • The Inkomati CMA is required in terms of Schedule 4 of the NWA to table its annual report in Parliament • The Annual Report covers the period 1 April 2006 to 31 March 2007 • The Annual Report covers the activities and financial report of the ICMA as per the first Business Plan • KPMG: Internal Auditors • J.K Sithole & Co: Independent Auditors

3. Mandate of the CMA In terms of section 80 of the NWA, the CMA has the following initial functions: (a) to investigate and advise interested persons on the protection, use, development, conservation, management and control of the water resources in its water management area; (b) to develop a catchment management strategy; (c) to co‑ordinate the related activities of water users and of the water management institutions within its water management area; (d) to promote the co‑ordination of its implementation with the implementation of any applicable development plan established in terms of the Water Services Act, 1997 (Act No. 108 of 1997); and (e) to promote community participation in the protection, use, development, conservation, management and control of the water resources in its water management area.

4. Governance • The Governing Board and its Committees met regularly to conduct its business • Compliance with the Protocol on Corporate governance in the Public Sector and the Framework on corporate Governance of Public Entities • Board Members carried full fiduciary responsibility in terms of the National Water Act, PFMA and National Treasury Regulations • Board Charter and Committee TOR’s adopted • Ministerial priorities and DWAF strategic priorities incorporated into ICMA strategic priorities • Risk management policy, strategy and plans developed

5. Organisational Development • Staff appointed = 13 out of 17 posts • Bursaries = 9 • Policies adopted = 17 • Business Plan approved by Minister • Fully functional office in place • Official ICMA Launch on 2 November 2006 • MoU for the secondment and transfer of DWAF staff approved • Pastel Accounting and Payroll System in place

6. Institutional Development & Stakeholder Involvement • Effective communication with and participation by all stakeholders • Institutional arrangements in place • Support to DWAF on establishment of WUA’s • Effective inter-governmental relations established • Trained CDFs and Ward Committees on Integrated Water Resources Management • Launch of Sediba Campaign • International Links: KOBWA, Lesotho and Groot Salland

7. Catchment Management Strategy and Planning • CMS development initiated • Catchment Visioning Process initiated • Preliminary Situation Assessment completed • Support and interaction with DWAF on Draft Water Allocation Plan • The CMS process will be completed by September 2008. • Hosting an Annual CMS Conference in corporation with Wits and WARD • Plan to transfer 35% of water to black hands by 2014. • Incorporating land reform into the process of accessing water

8. Water Use Management • Requested the delegation of Water Use functions to ICMA • Support to DWAF on compulsory licensing process • Opportunities for Productive Water Use by Emerging Farmers developed Financial • Sound Financial Management • Financial Management policies adopted

9. Statement of Financial Performancefor the period ended 31 March 2007

10. Statement of Financial Positionat 31 March 2007

11. Challenges • Business processes for funding of the ICMA • Delays in signing of MoU • Delegation of functions • Coherent support from DWAF

12. Conclusion • Clean Audit Report • ICMA is in a sound financial position and is operating as a going concern • Positive Stakeholder perception of CMA: Agent of change and service delivery • Priority given to redressing the past imbalances and improving access to the water resources