Department of Water Affairs Department of Water Affairs and Forestryand Forestry

ADMINISTRATIONADMINISTRATION

By CFO: O AyayaBy CFO: O Ayaya

AGENDAAGENDA

1.1. Introduction Introduction

2.2. Strategic ReviewStrategic Review

3.3. Main Account – AdministrationMain Account – Administration

4.4. Water Trading Entity Water Trading Entity

5.5. QuestionsQuestions

INTRODUCTIONINTRODUCTION

MAIN ACCOUNTMAIN ACCOUNTThe overall strategy of the Department is to move from being a service provider The overall strategy of the Department is to move from being a service provider of forestry and water, to becoming a policy developer and regulator in the of forestry and water, to becoming a policy developer and regulator in the industry. industry.

WATER TRADING ENTITYWATER TRADING ENTITYThe service delivery components of the Department will be migrated to The service delivery components of the Department will be migrated to Catchment Management Agencies (CMA) and the National Water Catchment Management Agencies (CMA) and the National Water Infrastructure Resource Agency, which will be establish in 2009. In order to Infrastructure Resource Agency, which will be establish in 2009. In order to facilitate this transition, these activities have been grouped in the trading entity.facilitate this transition, these activities have been grouped in the trading entity.

STRATEGIC REVIEW - MAINSTRATEGIC REVIEW - MAIN

-1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000

ActualBudget

Expenditure trends for the Department over the past five years:Expenditure trends for the Department over the past five years:PAST PerformancePAST Performance

STRATEGIC REVIEW - MAINSTRATEGIC REVIEW - MAINDWAF Allocation for 2008/09DWAF Allocation for 2008/09The year aheadThe year ahead

Total Exchequer Allocations

R586 million

R3 238million

R2 427million

R446million

Admin Water Resource Management

Water Services Forestry

R1 615million

R320million

Current Capital

Augmentation to WTE

STRATEGIC REVIEW - MAINSTRATEGIC REVIEW - MAINExplanations of under expenditureExplanations of under expenditure AdministrationAdministration:: Under spending is mainly attributed to the transfer of Under spending is mainly attributed to the transfer of

staff to municipalities which could not be completed due to protracted staff to municipalities which could not be completed due to protracted negotiations with receiving municipalities and funds will be rolled over negotiations with receiving municipalities and funds will be rolled over to 2007/08 financial year.to 2007/08 financial year.

Water ResourcesWater Resources:: Under spending is mainly attributed to the De Hoop Under spending is mainly attributed to the De Hoop Dam Project that could not commence as planned as a result of delays Dam Project that could not commence as planned as a result of delays in finalising the Environmental Impact Assessmentin finalising the Environmental Impact Assessment

Water ServicesWater Services:: under spending is mainly due to delays in finalising under spending is mainly due to delays in finalising transfer agreements with local government in respect of transfer of transfer agreements with local government in respect of transfer of schemes.schemes.

STRATEGIC REVIEW - WTESTRATEGIC REVIEW - WTE

Expenditure trends for the Trading Entity over the past five years:Expenditure trends for the Trading Entity over the past five years:

Improvement in financial position - profit from 2006/07Improvement in financial position - profit from 2006/07

STRATEGIC REVIEW - WTESTRATEGIC REVIEW - WTEBackgroundBackground Trading entity was established in 1983 .Trading entity was established in 1983 . Water Services was moved from the Trading Entity to Main Account.Water Services was moved from the Trading Entity to Main Account. One consolidated Trading Account (Water Trading Entity and Equipment Trading Entity was One consolidated Trading Account (Water Trading Entity and Equipment Trading Entity was

merged .merged . Turnaround – financial situation from loss to profit.Turnaround – financial situation from loss to profit. Implementation of SAP during 2006 to support accrual accounting.Implementation of SAP during 2006 to support accrual accounting.

Current and planned activitiesCurrent and planned activities Proper establishment of trading entity – appointment/designate head for Entity. Proper establishment of trading entity – appointment/designate head for Entity. Proper segregation of functions and staff between Main and Trading Entity.Proper segregation of functions and staff between Main and Trading Entity. Appointment of an Advisory CommitteeAppointment of an Advisory Committee Finalisation of structure (Head Office and Clusters)Finalisation of structure (Head Office and Clusters) Segregation of strategic plans, business plans and annual reportSegregation of strategic plans, business plans and annual report Various financial projects to ensure clean financial audit by 2008/09Various financial projects to ensure clean financial audit by 2008/09

MAIN - ADMINISTRATIONMAIN - ADMINISTRATIONCORPORATE SERVICESCORPORATE SERVICES

PProvide policy leadership, business alignment and integration, advice and core support services. rovide policy leadership, business alignment and integration, advice and core support services. All HR policies currently under review including delegationsAll HR policies currently under review including delegations Policies, systems (i.e. transversal), procedures reviewed and alignedPolicies, systems (i.e. transversal), procedures reviewed and aligned Review and improve on the document management systemsReview and improve on the document management systems Strengthen Management oversight on record managementStrengthen Management oversight on record management Random audits to improve proper monitoringRandom audits to improve proper monitoring Project on Persal clean-upProject on Persal clean-up HR plan to be finalised, approved and implemented-DDG:CSHR plan to be finalised, approved and implemented-DDG:CS Filling of all critical postsFilling of all critical posts Re-engineering of Recruitment and Selection being implementedRe-engineering of Recruitment and Selection being implemented Finalisation of the institutional and organisational re-alignment projectsFinalisation of the institutional and organisational re-alignment projects Implementation of project to ensure alignment of the BAS and Persal systemsImplementation of project to ensure alignment of the BAS and Persal systems Implement Pay point separation between the Water Trading Entity and Main AccountImplement Pay point separation between the Water Trading Entity and Main Account Implement a coaching programme for all Senior Managers in the Corporate Services branchImplement a coaching programme for all Senior Managers in the Corporate Services branch Address challenges of organisational culture through change management interventionsAddress challenges of organisational culture through change management interventions Strengthen performance management and deal with inadequate performanceStrengthen performance management and deal with inadequate performance Knowledge ManagementKnowledge Management

MAIN - ADMINISTRATIONMAIN - ADMINISTRATIONFINANCEFINANCE

Provision of excellent financial management service to DWAF and its partners so that they Provision of excellent financial management service to DWAF and its partners so that they can achieve their overall objectives economically, efficiently and effectively and can achieve their overall objectives economically, efficiently and effectively and simultaneously promoting good governance, accountability and sustainability.simultaneously promoting good governance, accountability and sustainability.

Vision = Clean Audit ReportVision = Clean Audit ReportObjectives:Objectives: Provision of fully compliant financial management services,Provision of fully compliant financial management services, Achieve optimal client satisfaction,Achieve optimal client satisfaction, Strengthen the DWAF’s financial capability to fulfil its mandate, andStrengthen the DWAF’s financial capability to fulfil its mandate, and Drive continuous improvement of financial management performance and reportingDrive continuous improvement of financial management performance and reporting

Management:Management: Financial AccountingFinancial Accounting Supply Chain ManagementSupply Chain Management Management AccountingManagement Accounting

ADMINISTRATIONADMINISTRATION

Additional funds – Finance and Internal Additional funds – Finance and Internal AuditAudit

EU – Appoint a service provider – additional EU – Appoint a service provider – additional R80 mR80 m

Current projects to obtain clean audit:Current projects to obtain clean audit:– Collection of debtCollection of debt– Asset management Asset management

Corporate Services R 185 523 mFinance R 123 144 m

Water Trading EntityWater Trading Entity

Project to ensure clean audit:Project to ensure clean audit: Khanya Khanya Sakhile Sakhile SiyanqobaSiyanqoba KwinanaKwinana SAB&TSAB&T SAP super users and trainers SAP super users and trainers

QUESTIONSQUESTIONS

??THANK YOUTHANK YOU