1. FINAL ANNUAL PERFORMANCE ANALYSIS REPORT
PRESENTATION TITLE
Presented by:
Name Surname
Directorate
Date
FINAL ANNUAL PERFORMANCE ANALYSIS REPORT
FOR THE
2015/16 FINANCIAL YEAR
Presented by:
Mr Sifiso Mkhize
Acting Director-General
24 August 2016

2. Part 1: Analysis of department’s performance
Preliminary fourth quarter progress report for the 2015/16 financial year
CONTENTS
Part 1: Analysis of department’s performance
Detailed analysis of Main Account
Detailed analysis of Water Trading
Part 2: Financial performance
Definitions: abbreviations / acronyms

3. Analysis principles Robot system is used Qualitative indicators
Dark green = over achieved (i.e. over 100%)
Green = achieved (i.e. 100%)
Yellow = partially achieved (i.e. 50% to 99%)
Red = not achieved (i.e. less than 50%)
Qualitative indicators
Binary analysis of green and red is used
Exceptions report per programme
Areas of over achievement (i.e. over 100%)
Areas of under achievement (i.e. below 100%)

4. Analysis of annual performance
Main Account
Water Trading
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

5. Analysis per budget programme
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

6. Analysis per budget programme
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

7. Detailed analysis of Main Account
Programme 1: administration
Programme 2: water sector management
Programme 3: water infrastructure development
Programme 4: water and sanitation services
Programme 5: water sector regulation

8. Administration Achieved (100%) Partially achieved (50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

9. Administration exceptions report
Exception category
Overview of affected areas
Areas of over achievement
Vacancy rate for engineers and scientists
Graduate trainees added in the programme and placed into candidate positions
Communications (i.e. community engagements, media engagements, campaigns
Areas of under achievement
MPAT compliance
Water and Sanitation Bill
Africa and global strategic partnerships
Management of mine water (i.e. long-term solution, mining sector environmental levy)

10. Water Planning & Information Management
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)

11. Water Planning & Information Management exceptions report
Exception category
Overview of affected areas
Areas of under achievement
Completion of feasibility plans (i.e. Vioolsdrift, Crocodile East, Malmani Dolomites)
Provincial bulk master plans
Reduction of demand from 8 large water supply systems
Completion of the integrated water quality management strategy
Determining resource quality objectives for 5 river systems

12. Water Infrastructure Development
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

13. Water Infrastructure Development exceptions report
Exception category
Overview of affected areas
Areas of over achievement
Creation of job opportunities
Areas of under achievement
Completion of bulk infrastructure projects
Completion of community infrastructure projects
Provision of interim / basic water to households
Refurbishment of water services schemes
Completion of dam safety and conveyance projects

14. Water and Sanitation Services
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

15. Water & Sanitation Services exceptions report
Exception category
Overview of affected areas
Areas of over achievement
Support to resource poor farmers
Areas of under achievement
Water harvesting programme
Sanitation (i.e. bucket eradication and rural household sanitation)

16. Water Sector Regulation
Achieved
(100%)
Partially achieved
(50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

17. Water Sector Regulation exceptions report
Exception category
Overview of affected areas
Areas of over achievement
Compliance monitoring (i.e. evaluations of dam safety, water user monitoring)
Finalisation of water use authorisations in line with guidelines
Areas of under achievement
Implementation of institutional reform and realignment (i.e. establishment of catchment management agencies, infrastructure agency)
Water and wastewater services regulation (i.e. assessment of water treatment works and wastewater collector systems)
Finalisation of the pricing strategy and economic & social regulation strategy

18. Detailed water trading performance
administration
PROTO-CATCHMENT MANAGEMENT AGENCIES

19. Water Trading Achieved (100%) Partially achieved (50 – 99%)
Not achieved
(<50%)
Over Achieved
(>100%)

20. Water Trading exceptions report
Exception category
Overview of affected areas
Areas of over achievement
Reduction of debtor days
Areas of under achievement
Validation and verification of water use
Allocation of water to HDIs

21. Part 2: financial performance

22. Main Account Spending per programme / Economic Classification
Spending per sub-programme
Notes to the financial statements

23. Financial performance overview
PRESENTATION OUTLINE
Spending up to 31 March 2016
Financial performance overview
Expenditure report per budget programme and economic classification
Reasons for Over/Under-Expenditure

24. Financial performance overview
Overall Departmental Performance
Amounts
(R’000)
Adjusted Budget (Total)
Departmental Expenditure
% Spent
99%
Unspent Funds
Of which:
R has been requested as Rollover

25. Consolidated Departmental Expenditure

26. Details of Rollovers Details per economic classification R'000
Capital assets
Trailer and Transport Accessories (Prgm 4)
Construction of Sanitation in Rural Arrears (Prg 4)
Honey Suckers Trucks (Prgm 4)
Water Infrastructure Developments –WIP- (Prg 3
77 448
1 500
27 053
2 106
46 789
Total

27. Details per Infrastructure Programme

28. Infrastructure Programmes

29. Details per budget programme and economic classification

30. Programme 1: Administration

31. Programme 2: Water Planning and Information Management

32. Programme 3: Water Infrastructure Development

33. Programme 4: Water and Sanitation Services

34. Programme 5: Water Sector Regulation

35. Reasons for Under spending Programme 1
An allocation of R1.887 million could not be spent as a result of transfers which could not be made to Higher Education Institution (R1.000 million) and Non Profit Institutions (R0.800 million) due to outstanding documents.

36. Reasons for Under spending Programme 2
An allocation of R million could not be spent as a result of unfilled funded vacant positions which could not be filled due to changes in organizational structure (R7.416 million), and the related goods and services (R3.600) and payments for capital expenditure (R4.613 million), mainly in the integrated planning and water information management activities of the department.

37. Reasons for Under spending Programme 3
An allocation of R million for the water services infrastructure could not be spent due to the delays in the procurement of services and contractors by the department's Implementing Agents, and the delays in delivery of ordered material required for implementation of water infrastructure development projects which were in construction phase. The department has requested a rollover of R million from the fiscus to finalize the projects.

38. Reasons for Under spending Programme 4
An allocation of R million could not be spent in activities relating to water sector support (R4.537 million) and national sanitation (R million) as a result of capacity constraints in terms of inadequate technical skills, high vacancy rate in the programme and challenges with regulation of sanitation technologies. Further to this, there were delays in delivery of material for construction of sanitation structures under the rural households infrastructure projects.

39. Reasons for Under spending Programme 5
An allocation of R9.249 million could not be spent in this programme mainly due to the delays in the finalising the invoice (which required legal advice) for a Water Use Association and the transfer payment which could not be transferred to Water Research Commission due to the delays in finalisation of memorandum of agreement.

40. Water trading Programme expenditure trends
Notes to the financial statements
Overview of the audit report and action plan

44. Analysis of Augmentation Projects Performance Cont…
Name of the Project
Comments
ORWRDP (Ph 2A) - De Hoop Dam
The under spending is mainly due to the delay in the appointment of PSP to do fencing and sub-surface drainage.
GLeWAP Phase (Tzaneen
Dam Raising)
The under spending is due to the delay in the appointment of a implementing Agent. Lepelle Northern Water was later appointed to do planning and finalisation of the design and permit. Geotechnical investigations still outstanding.
GLeWAP Phase (Nwamitwa
Dam)
The project has spent the revised allocated budget for FY 2015/16.

45. Analysis of Augmentation Projects Performance Cont…
Name of the Project
Comments
Dam Safety Rehabilitation Programme
The under spending on DSRP is mainly due to the challenges encountered on the following projects and also the delay in the appointment of the panel of contractor for W1014-WTE:
Vaalkop II Dam:
Three months was lost due to damage to construction equipment.
Kalkfontein Dam: Three months was lost due to the unavailability of the APP (Approved Professional Person) on the project. The sub-contractor is delivering less material than planned/agreed.
Elandsdrift Barrage:
- 45 days delay due to slow delivery of aggregate material by the supplier
-There was a industrial action that lasted for a period of 2 weeks.
- Appointing competent qualified plant operators is still currently a challenge for the contractor which is hampering the delay.
38 days has been lost due to mechanical breakdown of a construction equipment which is further delaying the completion of the project.
Roodekoppies Dam:
Construction-West reportedly mentioned the delays in appointing general labour as hindering the progress on site as well as the procurement of rock fill material on the project.

46. Analysis of Augmentation Projects Performance Cont…
Name of the Project
Comments
Water Resources
Project: Raising of
Clanwilliam Dam
The under spending was due to the delays in the appointment of Environmental Control Officer (ECO) and appointment construction sub-contractors.
Mokolo and Crocodile
River (West) Water
Augmentation Project
(Phase 2A)
Water Supply Agreements to be updated and negotiated with major users based on the design capacity. The scheme capacity is under review and likely to be set between 75 and 100 mill m3/a. DWS is still to draft GTI and RID for the conveyance
system
The budget was reprioritised during the virement period.

47. Analysis of Augmentation Projects Performance...Cont.
Name of the Project
Comments
Development of Raising of Hazelmere
Dam
The contractor that was appointed later in the financial year and was requested to accelerate the project and thus resulted in the adjusted budget spent.
GLeWAP Distribution (Mopani DM)
The under spending is due to the delay in the manufacturing of pipe and the delay in issuing of the environmental authorisation (pipeline route & pipe size).
Mzimvubu Water Projects
The project has spent the revised allocated budget for FY 2015/16.
Nandoni Nsami
The engineering designs and tender documents completed. The Contractor was appointed on 07 January Site handover was completed on 28 January Work on site was suspended with instruction from National Treasury.
Nooitgedacht Water

51. Definitions: abbreviations / acronyms

52. Definitions Abbreviation / Acronym Description APP
Approved Professional Person
BRICS
Brazil, Russia, India, China and South Africa
CFO
Chief Financial Officer
DEA
Department of Environmental Affairs DM
District Municipality
DoRA
Division of Revenue Act
DWS
Department of Water and Sanitation EC
Eastern Cape
ECO
Environmental Control Officer
EIA
Environmental Impact Assessment
EMP
Environmental Management Programme ER
Economic regulation FS
Free State
GLeWAP
Greater Letaba Water Augmentation Project
GTI
Geotechnical investigation
Inst. Est.
Institutional Establishment LP
Limpopo MP
Mpumalanga
Nat. Sanitation Serv.
National Sanitation Services NT
National Treasury
N & S
Norms and standards
O & M
Operations and maintenance
ORWRDP
Olifants River Water Resource Development Project

53. Definitions PMO Project Management Office PoE Portfolio of Evidence
Abbreviation / Acronym
Description
PMO
Project Management Office
PoE
Portfolio of Evidence
PSP
Professional Service Provider
RBIG
Regional Bulk Infrastructure Grant
RHIG
Rural Household Infrastructure Grant
RHIP
Rural Household Infrastructure Programme
RID
Record of Implementation Decision
RQOs
Resource Quality Objectives
RWPS
Raw water pricing strategy
SLAs
Service Level Agreements
TCTA
Trans Caledon Tunnel Authority
Trans of Water Schemes
Transfer of Water Schemes
Water Info Mgt.
Water Information Management WC
Western Cape
WS Mgt
Water Sector Management
WS services & sanitation regulation
Water Supply Services and Sanitation Regulation
WTE
Water Trading Entity
WTW
Water Treatment Works
WU Author & Admin
Water Use Authorisation and Administration
WU Authorisat. Enabling
Water Use Authorisation Enabling
WULATS
Water Use Licence Authorisation Tracking System
WWTW
Wastewater Treatment Works

54. END