By CFO: O Ayaya

1.
Introduction
2.
Strategic Review
3.
Main Account – Administration
4.
Water Trading Entity
5.
Questions

 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.

PAST Performance
Expenditure trends for the Department over the past five years:
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
Actual
Budget

DWAF Allocation for 2008/09
Total Exchequer Allocations
R586 million
Admin
R3 238 million
R2 427 million
Water Resource
Management
Augmentation to WTE
R320 million
R1 615 million
Current Capital
Water Services
R446 million
Forestry

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.

Expenditure trends for the Trading Entity over the past five years:
Improvement in financial position - profit from 2006/07

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

CORPORATE SERVICES
P rovide 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-DDG:CS
 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

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 DWAF’s financial capability to fulfil its mandate, and

Drive continuous improvement of financial management performance and reporting
Management:

Financial Accounting
 Supply Chain Management

Management Accounting

Corporate Services
Finance
R 185 523 m
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

Project to ensure clean audit:
 Khanya
 Sakhile
 Siyanqoba
 Kwinana
 SAB&T
 SAP super users and trainers

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