1. Annual Report no. 8 July 2005 – June 2006
Ikangala
Water
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2. Introduction IW appointed KPMG Inc for the year ended 30 June 2006
Independent auditors in terms of:
Section 188 of the constitution of RSA
Section 4 and 28 of Public Audit Act (Act 25 of 2004)
Requirement of Water Services Act
Requirement of PFMA
Audited report presented
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3. Audit Report Non compliance by the Board:
IW did not have a system of internal audit as required by PFMA
A risk management strategy and a fraud prevention plan as required by Treasury Regulations was not implemented
IW did not submit its budget to the relevant treasury for approval as required by PFMA
IW did not submit its 5yrs ( ) business plan to the Minister of DWAF as required by WSA
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4. Overview Status of the Board ( 2 Board members)
Management (No senior managers)
Current staff (4 permanent employees)
Current activities (billing of bulk supply)
Income (subsidies from DWAF and payment from 1 local municipality & business)
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5. Water Produced Total water produced 33 376 824 Kl
Kl Bronkhorstspruit
Kl Weltevreden
Kl water loss (3.7%)
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6. Water Sales Volume (Kl) Amount (R) Kungwini 1 865 080 4 215 081
Thembisile
Dr JS Moroka
Greater Marble Hall
Elias Motsoaledi
Total
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7. Income Statement 2006 2005 2004 2003 Water sold (Kl) 32 142 504
Revenues (R)
Operating
Expenses
Income
DWAF
Subsidies
Net surplus/
deficit
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8. Balance Sheet Breakdown
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9. 7.1% growth rate in water sold 34.2% growth rate in revenue
Financial Indicators
7.1% growth rate in water sold
34.2% growth rate in revenue
Lowest operating expenses
Positive operating income
Positive return for first time since establishment
Profit of R
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10. No long term liabilities Current liabilities R307 547
Financial Indicators
No DWAF subsidies in 2005/6
Reserve of R
Current assets R
No long term liabilities
Current liabilities R
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11. Being economically independent and financially viable
Strategic Objectives
Being economically independent and financially viable
Improve revenue collection
Access to affordable and sustainable water services at acceptable levels
Supporting municipal service delivery objectives
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12. Commitment to economic empowerment of communities
Strategic Objectives
Raising awareness of value of water, health, sanitation and the environment
Commitment to economic empowerment of communities
Develop pool of skills for socio-economic growth
Partnership with private sector and other WBs
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13. Appointment of more Board members Appoint senior managers
Conclusion
Appointment of more Board members
Appoint senior managers
Transfer of bulk infrastructure to IW with unlimited powers and budget
Establish Board committees
Finance (Internal audit/risk management/fraud prevention) HR
Technical
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14. Conclusion
Align 5 yrs business plan up to 2011 with municipal IDPs/WSDPs and Millennium goal on water and sanitation services
Board to appraise its budget and submit for approval by end of April for 2007/2008
Sign water services agreements with municipalities
Self-sustained Board = service delivery
Efficient and effective service delivery will lead to a better life and contribute to local economic growth
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15. Thank You
Questions?
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