‘Additional Momentum’ PRESENTATION OF THE ANNUAL REPORTS AND FINANCIAL PERFOMANCE FOR THE 2017/18 FINANCIAL YEAR TO THE PORTFOLIO COMMITTEE OF WATER AND SANITATION BY DR THOMAS GYEDU-ABABIO CEO INKOMATI-USUTHU CMA

THIS PRESENTATION Water Management Area Vision and mission IUCMA Strategic Objectives Overview of performance information Challenges & Risks and mitigation

Water Management Areas Mzimvubu-Tsitsikamma Usuthu in RSA: 8087km^2 Inkomati in RSA: 28590km^2 Total in RSA: 36676lm^2 THE NINE (9) WMAs Olifants Limpopoo Inkomati- Usuthu Vaal Orange Pongola-Mzimkulu Berg-Olifants Mzimvubu-Tsitsikamma Breede-Gouritz

IUCMA WATER MANAGEMENT AREA

VISION AND MISSION VISION MISSION Water for all in Inkomati-Usuthu To support co-operative management of the Inkomati basin as an internationally shared water course. To collaboratively make decisions with stakeholders and work together towards equity, sustainability and efficiency in a continually evolving socio-economic system; To manage the resources adaptively, co-operatively and progressively to achieve social, economic and environmental justice, and promote healthy living

IUCMA STRATEGIC OBJECTIVES Ensure Effective, Efficient and Sustainable Management of Water Resources Ensure Collaborative and Co-ordinated IWRM for Wise Socio-Economic Development Ensure Effective and Efficient Management of ICMA Resources Promote Knowledge Generation and Distribution Promote and Pursue International Developmental Agenda

OVERVIEW OF ANNUAL PERFORMANCE INFORMATION

ANNUAL PERFORMANCE INFORMATION Governance/Reporting Requirements Planned targets Actual achievements Approved Plans (APP, SHC) within the legislative timeframes 1X APP 1X SHC Statutory reports submitted within the legislative timeframes SHC quarterly reports 1X Annual Report 2 Newsletters produced bi-annually 2 Newsletters IUCMA activities advertised through electronic and print media quarterly 33 Electronic Adverts 9 Print Adverts Initiatives implemented or % support to CSI initiatives 100%(2/2)

ANNUAL PERFORMANCE INFORMATION Water Allocation Reform Planned targets Actual achievements 50% of Usuthu validation and verification completed 69%of Usuthu validation and verification completed 80% Review and integration of Usuthu catchment into the IUCMA Catchment Management Strategy 70% Review and integration of Usuthu catchment into the IUCMA Catchment Management Strategy Compilation of 1 Water Allocation Plan 2 Compilations of Water Allocation Plan 4 Water Allocation Reports submitted to Water Allocation Reform Office

ANNUAL PERFORMANCE INFORMATION Water Resource Protection Planned targets Actual achievements 3132 of water samples taken with analysis results 3075 of water samples taken with analysis results 100% Percentage of reported pollution incidents attended to 100% (20/20) reported pollution incidents attended to 30% of pollution incidents identified as critical for mitigation 0% of pollution incidents identified as critical for mitigation 100% of positive responses received from notices issued to non-compliant water users 100% (53/53) of positive responses received from notices issued to non-compliant water users

ANNUAL PERFORMANCE INFORMATION Effective Compliance Monitoring Planned targets Actual achievements 292 routine water quality and illegal water use inspections   282 routine water quality and illegal water use inspections  8 compliance audit reports finalised 15 compliance audit reports finalised

ANNUAL PERFORMANCE INFORMATION River Eco-Status Monitoring Planned targets Actual achievements Ensure data collection for River Eco Status Monitoring program for Crocodile catchment  Data collection for River Eco Status Monitoring program for Crocodile catchment completed 1 Comprehensive River Eco Status report produced for Crocodile catchment 3 Sub-catchments monitored for river eco status monitoring programme and reports produced 3 Sub-catchments monitored for river eco status monitoring programme and reports produced (Sabie, Komati and Usuthu) 36 bimonthly water quality status reports produced and disseminated 38 bimonthly water quality status reports produced and disseminated 1 annual status reports produced and disseminated

ANNUAL PERFORMANCE INFORMATION Authorised Water Use Planned targets Actual achievements 100% of water quality related authorisations recommended 100% (34/34) of water quality related authorisations recommended 100% of water quantity related authorisations recommended 100% (30/30) of water quantity related authorisations recommended

ANNUAL PERFORMANCE INFORMATION Stakeholder Interactions Planned targets Actual achievements 30 Integrated water resource management related forums with the provision of advisory services from IUCMA 35 integrated water resource management related forums with the provision of advisory services from IUCMA 28 Stakeholder empowerment workshops conducted with historically disadvantaged individuals users including traditional authorities 35 Stakeholder empowerment workshops conducted with historically disadvantaged individuals users including traditional authorities 48 river cleaning and adopt a river campaigns with communities 50 river cleaning and adopt a river campaigns with communities 14 meetings attended whereby advisory inputs are made in international engagements 15 meetings attended whereby advisory inputs are made in international engagements 36 Catchment Management Forum meetings coordinated

ANNUAL PERFORMANCE INFORMATION Effective data management of river operations Planned targets Actual achievements 112 routine quarterly inspections and maintenance of 28 installed river flow data loggers 112 routine quarterly inspections and maintenance of 28 installed river flow data loggers completed 76 routine quarterly inspections and maintenance of 19 installed rainfall gauges 80 routine quarterly inspections and maintenance of 19 installed rainfall gauges conducted 24 river flow and rainfall reports produced and disseminated to stakeholders 23 river flow and rainfall reports produced and disseminated to stakeholders 8 Operational Decision Support System for sub-catchments quarterly reports produced per annum 8 Operational Decision Support System for sub-catchments quarterly reports produced per annum Drilling of 1 monitoring borehole 1 monitoring boreholes drilled

RIVER SYSTEMS PLANNING & OPERATIONS

RIVER SYSTEMS PLANNING & OPERATIONS

RIVER SYSTEMS PLANNING & OPERATIONS

CORPORATE SERVICES

ANNUAL PERFORMANCE INFORMATION Corporate Services Planned targets Actual achievements 1 tariff proposal developed and submitted for approval 100% compliance to audit 4 Risk management reports compiled 30% increase on BBBEE expenditure 37% increase on BBBEE expenditure (R90898 246) 4 permanent and contract jobs created 16 jobs created 4 IT managements reports reviewed quarterly 2 Employee wellness activities coordinated 1 Employee wellness activities coordinated 4 External bursaries awarded

ORGANISATIONAL STRUCTURE

Tariff comparison

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018

Statement of Financial Performance as at 31 March 2018   2018 2017 R Revenue 91,684,083 80,151,265 Other income 27,684 396,205 Operating expenses 93,777,412 80,431,735 Operating surplus (deficit) 2,065,645 115,735 Investment revenue 2,864,563 1,713,352 Finance costs 99,605 115,736 Surplus (deficit) for the year 699,313 1,713,351

Statement of Financial Performance as at 31 March 2018   2018 2017 R Assets Current Assets Receivables from exchange transactions 17,641,322 35,300 Cash and cash equivalents 53,128,297 31,525,158 70,769,619 31,560,458 Non-Current Assets Property, plant and equipment 5,603,478 5,593,339 Deposits 252,811 195,900 5,856,289 5,789,239 Total Assets 76,625,908 37,349,697

Statement of Financial Performance as at 31 March 2018 Liabilities 2018 2017 R Current Liabilities Finance lease obligation 270,641 135,219 Payables from exchange transactions 5,670,410 2,645,784 Provisions 1,788,320 1,432,414 Deferred Income 52,276,758 17,285,224   60,006,129 21,498,641 Non-current Liabilities 288,010 218,601 Total Liabilities 60,294,139 21,717,242 Net Assets 16,331,769 15,632,455 Accumulated surplus 16,331,768 15,632,454

RISKS/CHALLENGES & MITIGATION Transfer of unaudited figures on revenue: The transfer, by the DWS to the IUCMA, of the billing and collection function took place in November 2017. However, through stakeholder engagement forums and direct commination with the clients the risk exposure is addressed. Drought conditions from the past years affected water allocation to water to full assurance levels. However, the sector forums were continued to ensure integrated approach that saw restrictions on water use being removed in May 2017. Inadequate delegations/ assignment of functions from the Minister: Engagements were made with the Minister and the DWS to ensure that the delegations are properly done and implemented to ensure compliance with the National Water Act. The issue of pollution of the resource by poor quality effluents from waste water treatment works cannot be overlooked. The risk of court legal action against the IUCMA The IUCMA is embarking on correcting some of the minor deficiencies in the system with the intention of reclaiming the monies spent from the defaulting municipalities.