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)

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

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.

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

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

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

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

Water Use Management Financial 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

Statement of Financial Performance for the period ended 31 March 2007 Revenue R 4,841,637 Operating Expenditure R 4,242,764 Surplus from Operations R 598,873 Finance Revenue R 2,470 Surplus for the year R 601,343

Statement of Financial Position at 31 March 2007 Non-Current Assets R 595,874 Current Assets R 2,973,145 Total Assets R 3,569,019 Net Assets R 601,343 Non-Current Liabilities R 202,227 Current Liabilities R 2,765,449 Net Assets & Liabilities

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

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