Presented by: Phakamani 5/10/12 Buthelezi Chief...

5/10/12Presented by: Phakamani ButheleziChief Executive Officer

5/10/12

PRESENTATION LAY-OUT� Background to BOCMA and its catchment area

� Role of the BOCMA in the water value chain

� BOCMA’S strategic challenges

� BOCMA’S vision

� Alignment of BOCMA priorities with government priorities

� 5 YEAR STRATEGY: PRIORITY AREAS

� WATER RESOURCE PLANNING

� WATER USE MANAGEMENT

� INSTITUTIONAL ENGAGEMENT

� WATER ALLOCATION REFORM

� RESOURCE PROTECTION

� INFORMATION SYSTEMS

� STRATEGIC

SUPPORT

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BACKGROUND TO THE BOCMA

The BOCMA was established in terms of the NWA in July 200Representative BInitial Functions in terms of secAdditional functions delegated by the Minister

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WATER MANAGEMENT AREAS

BREEDE-OVERBERG WMA

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5/10/12

DESCRIPTION OF THE BOCMA AREA.

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ROLE OF THE BOCMA IN THE WATER VALUE CHAIN

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BOCMA’S STRATEGIC CHALLENGES

Building legitimacy and credibility.Involvement of stakeholders in decision making. Financial challenges.Water availability.Deteriorating eco–systems.Equity in water use. Current state of water services infrastructure.

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BOCMA VISIONQuality Water For

All, Forever

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Second Outline Level

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Fourth Outline Level− Fifth Outline Level

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Alignment with Government

�BOCMA STRATEGIC OUTCOMES

�DWA PRIORITIES1. Water resources are shared for equity and development

2. Water resources are protected for the benefit of people and the environment

3. Stakeholders are cooperating for legal compliance and resilience

1. Contribute to Economic Growth, Rural Development, Food Security and Land Reform

2. To promote Sustainable and Equitable Water Resources Management

3. Strengthening the regulation of the water sector

4. Support Local Government to deliver services

5. Contribute to Improved International Relations

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5 YEAR STRATEGY: PRIORITY AREAS

Water resources plannWater use maInstitutional engagementWater allocation reformResource protectionInformation systems Strategic supportManagement and governance

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WATER RESOURCE PLANNING: Catchment Management Strategy

Draft Catchment Management Strategy presented to DWA NatioApproval (2012/13) Implementation (2013-2

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PLANNING PROCESSES

700 Land use planning applicationsEngage with All Local Authorities on water use planningWater Quality Objectives determined for major rivers

Salinity Management Plan for the Central and LoweReview the Status Quo of Infrastructure (municipal & privately owned)Determine the Water Availa

Do a study on the Impact of groundwater use on surface water quality and flow in the Onrus river

WATER RESOURCE PLANNING: Processes

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WATER USE MANAGEMENT: Water use registrations, license

applications and the V&V process

Water Use Registration

All known water use registered

Water use license applicatio

70% of Water Use License applications processed to Recommendation

Validation & Verification of Water Use in selected C

Audits of 200 water use authorisations

100% General Authorisation Applications confirmed

Validation of the BOCMA area done

Water Use compliance (WULA / GA conditions)

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INSTITUTIONAL ENGAGEMENT: Contribution to improved intergovernmental

relations and capacity building

Marketing and communication

20 Newsletters distributed

Forums established and Maintained

Water Forums facilitated and maintained

Water week to reach 6000 persons32 Marketing materials developed

Regulate Water Management Institu

100% new WUA proposals processedIrrigation Boards transformed into WUASupport 20 WUA with business plan development

100% children at Land Care camps reachedWebsite maintained 100%

Assess and monitor 20 WUA business plans

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INSTITUTIONAL ENGAGEMENT: Institutional Cooperation

Institutional Cooperation

100% Strategic International Partnerships Maintained

5 new partnerships established100% Inter-governmental forums attended

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WATER ALLOCATION REFORM: Resource Poor Farmers / Historically

Disadvantaged Individuals

Support and facilitation for resource-poor farmers

100% Assist with RPF / HDI licence applications

100% Assist RPF / HDI with related fina5 Awareness campaigns100% Support Department Rural Development with water use applications.

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RESOURCE PROTECTION: Quality monitoring, Riparian

Integrity

Resource Protected

Water Quality monitoring programs for major water resources implemented.

Priority alien clearing areasPriority riparian habitat identified and protected10 Riparian Habitat public awareness campaigns heldPollution and Pollution incidents managed




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INFORMATION SYSTEMS: Water resource and Corporate

Information systems

Water resources information systems

WARMS operational in BOCMA officeWMS operational in BOCMA officeGIS operational and updatedCorporate information systems

Billing system is operational and maintained100% Corporate network maintained and updatedEnterprise Resource Planning System operational and maintaine

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STRATEGIC SUPPORT: Financial Resources

100% Compliance to relevant legislation and financial reporting

80% of Revenue collected100% Tariffs reviewed

5 Approved Budget reports

10 Revised budget reports60 Cash flow statements done100% Payroll administration

Financial Resources Managed

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STRATEGIC SUPPORT: Human Resources

Human Resources Managed

100% of personnel capacitated Conducive environment to retain skilled personnel estab100% of posts filled with skilled personnel according to employment equity policy100% of administrative duties performed5 Annual performance management evaluations completed for each sta100% of Labour relations

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MANAGEMENT AND GOVERNANCE

Strategic Management and Governance provided

Strategic Management

100% of Strategic and annual performance plans submitted to the DWA

Governance Provided

5 Risk management report100% of PFMA and Treasury regulations adhered to100% of inter-governmental relations maintained100% of organisational management maintained

100% of annual plans approved

20 Board meetings held60 Subcommittee meetings held





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RISK MANAGEMENT: WATER USE

MANAGEMENT�RISK IDENTIFIED�MITIGATION MEASURE

� Insufficient human resource and skills capacity

� Inability for BOCMA to cope with processing of licence applications.

� Inability to enforce compliance on local government

� Lack of water infrastructure maintenance

� Appoint new staff and training of existing staff

� Appoint new staff and training of existing staff

� Build strong relations with local government

� Continuous follow up with local authorities





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�RISK IDENTIFIED�MITIGATION MEASURE

� Incomplete registration and verification of water resources

� Failure to make resource available due to current back log of applications

� Difficulty in obtaining CMS approval

� Implement validation and verification projects

� Appointment and skilling of staff

� Create awareness about the importance of approving the CMS

RISK MANAGEMENT: WATER RESOURCES

PLANNING





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� Demand exceeds supply

� Inconsistent understanding of the national policy

� Lack of integration of land and water reform

� Validation and verification of water use. necessarily do compulsory licensing

� Awareness campaigns and the skilling of staff

� Establish and maintain Intergovernmental relations

RISK MANAGEMENT: WATER ALLOCATION

REFORM





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�Ineffective revenue collection due to uncertainty of water users

�Inaccurate budgeting process due to uncertainty over allocations of funds

�Lack

of

capacity

to

� Transfer the billing system from DWA to The BOCMA

� Better co-operation with DWA to transfer the funds

� Transfer the billing system from DWA

� Compliance register

RISK MANAGEMENT: STRATEGIC SUPPORT





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� Excessive pollution

� Insufficient capacity to enforce licence conditions

� Insufficient monitoring systems

� Uncertain water reserve

� Public resistance to resource protection policy

� Lack of invasive alien vegetation clearing / control

� Enforce compliance

� Appointment of staff and skilling of staff

� Implementation of monitoring programmes

� Promote the determination of reserves

� Awareness campaigns

� Improve intergovernmental relations

RISK MANAGEMENT: RESOURCE PROTECTION





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� Lack of a signed MOU

� Lack of continuity at board level

� Inappropriate application of King 3

� Awareness about the importance of MOU to the regional office of DWA

� Escalate the potential problem to DWA

� Training of board members

� Training provided to board members

RISK MANAGEMENT: MANAGEMENT & GOVERNANCE





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� Failure to ensure business continuity

� Failure to prevent the loss of data (ineffective virus protection, back-ups, encryption, hacking)

� Lack of systems integration

� Contingency systems available

� Back ups and systems protector

� Integration systems

RISK MANAGEMENT: INFORMATION SYSTEMS





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� Inability to meet stakeholder expectations

� Insufficient marketing and communication plan

� Inability to transform irrigation boards to water user associations

� Awareness about powers and duties of The BOCMA

� Develop marketing and communication strategy

� Additional delegations to The BOCMA..

RISK MANAGEMENT: INSTITUTIONAL ENGAGEMENT

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PROGRAMME STAFF COSTS OVERHEADS PROFESSIONAL FEES TOTAL COST

Water Resources Planning 1 019 213 113 190 650 000 1 782 403

Water Use Management 2 352 031 261 207 1 500 000 4 113 238

Institutional Involvement 1 033 910 145 000 1 450 000 2 628 910

Water Allocation Reform 156 802 17 414 100 000 274 216

Recourse Protection 1 019 213 113 190 650 000 1 782 403

Information Systems 525 260 368 500 0 893 760

Strategic support 2 387 620 1 799 700 540 000 4 727 320

Management 1 952 950 101 500 45 000 2 099 450

Governance 575 000 158 300 0 733 300

Total Programme Costs 11 022 000 3 078 000 4 935 000 19 035 000

Capital Expenditure 105 000

Total CMA Expenditure 19 140 000

BREAKDOWN OF EXPENDITURE BUDGET PER UNIT

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2012/2013 BUDGET: PERCENTAGES

3.8%: Board costs as a % o20.2% : Management and Governance as % of total budget.54.71%: Staff costs as a % of total budge20.79%: Profe0.5% : Capital Expenditure as a % of total costs.

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5/10/12 3232

Presentation of Annual Financial Statements

for the year ended 31 March 2011

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PRESENTATION LAY-0UT� Objective of the presentation

� Overview of the Annual Financial Statements (AFS)

� Presentation on Financial Performance

� Presentation of Financial Position

� Presentation on Cash Flow Position

OBJECTIVES OF THE PRESENTATION

� Inform the committee on the financial performance, financial position and

cash

flow

status

for

the

year

ended

31

March

2011

as

embodied in

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FINANCIAL PERFORMANCE:Description 20010/11

Rands2009/10Rands

% Change

Revenue 17 435 000 11 000 000 58.5%

Other income 10 253 1 849 554.5%

Operating expenses (13

519 207) (7

613 824) 77.5%

Operating surplus 3 926 046 3 388 025 15.8%Interest income 416 783 326 000 27.84%Finance costs (14

462)-

Surplus for the year 4 328 367 3 714 025 16.54%

Other comprehensive income

Total comprehensive income for the year 4 328 367 3 714 025 58.5%

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FINANCIAL POSITION

Description 2010/11Rands

2009/10Rands

% Change

Non current assets 2 090 060 1 691 600 23.55%

Current Assets 7 953 724 3 528 212 125.43%

Total Assets 10 078 309 5 254 337 91.81%

Net Assets 8 968 618 4 640 251 91.63%

Liabilities 1 109 691 614 086 80.71%

Total Net Assets and Liabilities 10 078 309 5 254 337 91.81%

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STATEMENT OF CHANGES IN NET ASSETS

ACCUMULATED SURPLUS / (DEFICIT)

RANDS

BALANCE AS AT 1 APRIL 2009 926 226

BALANCE AS AT 1 APRIL 2010 4 640 251

BALANCE AS 31 MARCH 2011 8 968 618

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CASH FLOW POSITION

Description 2011Rands

2010Rands % Change

Cash inflows from operations 5 362 992 4 072 972 31.67%

Cash flow from investing activities (937 479) (1 461 731) -35.86%

Cash flow from financing activities 98 741

Cash at the beginning of the year 3 528 212 818 230 331.2%

Net cash flow at end of year 7 953 724 3 528 212 125.43%

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Salaries and Bonuses paid: � Bonuses paid to Senior Managers: Year ended 31 March

2011:

Salary Bonuses

� Chief Executive Officer R963 840 N/A

� Chief Financial Officer R705 912 R41 728.50

� Senior Manager: WRM R705 912

R41 728.50

� 8 Staff members qualify for performance bonus (including senior managers) total amountR187 013.52

Stipend for Board Members:

� Board Meetings

R3400

5/10/12

Thank youDankieEnkosi

Breede

River Mouth2011

Presented by: Phakamani 5/10/12 Buthelezi Chief...

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