Department of Water Affairs and Forestry ADMINISTRATION

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Department of Water Affairs and
ForestryADMINISTRATION

• By CFO O Ayaya

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AGENDA

• Introduction
• Strategic Review
• Main Account Administration
• Water Trading Entity
• Questions

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INTRODUCTION

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

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STRATEGIC REVIEW - MAIN
PAST Performance
Expenditure trends for the Department over the
past five years
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STRATEGIC REVIEW - MAIN
The year ahead
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
R1 615 million
R320 million
Current
Capital
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STRATEGIC REVIEW - MAIN

• Explanations of under expenditure
• 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.
• 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.

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STRATEGIC REVIEW - WTE
Expenditure trends for the Trading Entity over
the past five years

Improvement in financial position - profit from
2006/07
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STRATEGIC REVIEW - WTE

• Background
• Trading entity was established in 1983 .
• Water Services 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.
• Implementation of SAP during 2006 to support
  accrual accounting.
• Current and planned activities
• Proper establishment of trading entity
  appointment/designate head for Entity.
• Proper segregation of functions and staff between
  Main and Trading Entity.
• Appointment of an Advisory Committee
• Finalisation of structure (Head Office and
  Clusters)
• Segregation of strategic plans, business plans
  and annual report
• Various financial projects to ensure clean
  financial audit by 2008/09

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MAIN - ADMINISTRATION

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

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MAIN - ADMINISTRATION

• FINANCE
• Provision of excellent financial management
  service to DWAF and its partners so that they can
  achieve their overall objectives economically,
  efficiently and effectively and simultaneously
  promoting good governance, accountability and
  sustainability.
• Vision Clean Audit Report
• Objectives
• Provision of fully compliant financial management
  services,
• Achieve optimal client satisfaction,
• Strengthen the DWAFs financial capability to
  fulfil its mandate, and
• Drive continuous improvement of financial
  management performance and reporting
• Management
• Financial Accounting
• Supply Chain Management
• Management Accounting

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ADMINISTRATION
Corporate Services R 185 523 m
Finance R 123 144 m

• Additional funds Finance and Internal Audit
• EU Appoint a service provider additional R80
  m
• Current projects to obtain clean audit
• Collection of debt
• Asset management

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Water Trading Entity

• Project to ensure clean audit
• Khanya
• Sakhile
• Siyanqoba
• Kwinana
• SABT
• SAP super users and trainers

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QUESTIONS

• ?
• THANK YOU