1. ‘Moving Forward with Momentum’
PRESENTATION OF THE ANNUAL REPORTS AND FINANCIAL PERFOMANCE FOR THE 2016/17 FINANCIAL YEAR TO THE PORTFOLIO COMMITTEE OF WATER AND SANITATION BY DR THOMAS GYEDU-ABABIO CEO INKOMATI-USUTHU CMA

2. This presentation IUCMA Strategic Objectives Understanding the IUCMA
Performance Description
Challenges & Risks and mitigation

3. 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

4. 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

5. UNDERSTANDING THE IUCMA

6. KEY ACHIEVEMENTS 85% GOVERNANCE/reporting requirements
The 2016/17 financial year witnessed no variance from the expected performance provided for in the applicable legislative frameworks;
We managed to convene all the board and committee meetings as required and therefore met our targets as planned. Same with the legislative requirements as all documents were submitted to the Minister and DWS;

7. KEY ACHIEVEMENTS GOVERNANCE/reporting requirements
2017/18 Annual Performance Plan was also submitted to DWS;
2015/16 Annual Report submitted to National Treasury, Auditor-General and Office of the Minister and subsequently to parliament;
The amended Annual Performance Plan for 2016/17 financial year was submitted and approved by DWS; and
All four (4) quarter reports, namely performance report, revenue and expenditure report and PFMA Compliance Checklist were submitted to DWS every quarter.

8. KEY ACHIEVEMENTS
MARKETING AND COMMUNICATION
The IUCMA received extensive media exposure due to events hosted in the province as well as internationally;
Due to the demand more projects were advertised through utilisation of National and Local Electronic and Print Media that include:
We marketed the IUCMA quite well in both print and electronic media and through our physical presence at functions including conferences and expos.
Our social media – Facebook page is up and running. It will get to full gear in the current year; This will be articulated in depth during the next reporting cycle.
The impact of the Drought situation - interviews and print media;
Sustainable Water Management drives;
International water resource management engagements; and
The Water Status Quality report – Hydronet Dashboard.
Newsletter: “Water News 2day”
compiled two newsletters

9. Performance Objective
Alignment
Outcomes
/Impact
Indicators
Measure / Baseline
Target
2016/17
Annual Performance
Reasons for Variance
Corrective action
DWS Strategic Plan
IUCMA activities effectively marketed
Effective and efficient internal control environment
Ensure Effective and Efficient Managem ent of IUCMA resources
Number of projects advertised through electronic and print media 6 25
Due to the drought, the IUCMA took a resolution to have a media campaign on the drought
None
Achievement of targets and reasons for over or underachieving well documented.

10. KEY ACHIEVEMENTS RESOURCE PROTECTION AND WASTE
Recommending a Water Use License with the First Financial Provision made under the National Water Act. This will enable the DWS/ IUCMA to access financial provision made similar to that provided for in terms of the Mineral and Petroleum Resource Development Act (MPRDA), especially to address the water related impacts associated with mines when they liquidate or are bankrupt;
We finalised the Water Quality Management Strategy; and
Established a River Health Unit to monitor the biologic health of the resource; the positions filled include:
(i) aquatic and terrestrial vegetation;
(ii) fish biology;
(iii) macro-invertebrate biology; and
(iv) geomorphology during the period under review.
The highlight is to show that the required amount of financial provision is approximately R35m after about 15 years. This was worked out at current costs of treatment and escalated to approximately R35m over 15 years. The Mine will contribute R per month to an investment account over that period, building up to the required amount at the time of the decant.
The Name of the mine is Ikoti Coal Mine.
Amount contributed is R per month working out to R35M in 15 years.
The money is being deposited into an investment account opened with Liberty Investments.
The Mine is the one that makes the investment, but the Department of Water and Sanitation is a Joint Beneficiary with the Mine.
The financial provision was made in terms of the NWA since financial provision made in terms of the Mineral and Petroleum Resources Development Act (MPRDA) is not accessible. This was done before the DWS could develop the current guidelines and was the first of its kind under the NWA.

11. KEY ACHIEVEMENTS RIVER SYSTEMS PLANNING & OPERATIONS
The Inkomati Usuthu WMA received significantly below normal rainfall and experienced extremely elevated temperatures during the 2015/2016 (Oct-Sept) hydrological year.
However, the IUCMA collaborated in the operations committee to keep the rivers flowing during the drought.
UWAAS was completed in the 2016/17 financial year. It gives us a proper assessment of the water availability status of the Usuthu Catchment.

12. KEY ACHIEVEMENTS RIVER SYSTEMS PLANNING & OPERATIONS
Description
Demand
Supply
Percentage supplied
(million m3/a)
Assegaai Catchment
8.93
8.72
Deficit
Hlelo Catchment
3.48
2.56
Ngwempisi Catchment
2.41
2.37
Usuthu Catchment
0.72
Equilibrium
Mpuluzi Catchment
4.23
4.02
Metula Catchment
0.90
UWAAS

13. KEY ACHIEVEMENTS RIVER SYSTEMS PLANNING & OPERATIONS
Figure 2: Rainfall in Crocodile Catchment during the year. Note that the cumulative rainfall for 2014/2015 and 2015/2016 hydrological year is lower than the cumulative average.

14. KEY ACHIEVEMENTS RIVER SYSTEMS PLANNING & OPERATIONS
Through the International Collaboration with the Netherlands partners, the IUCMA acquired the Hydronet Water Control Room which is now fully functional since March 2016.
They system delivers the IUCMA real time satellite rainfall information calibrated against ground based rain stations.
This application has a 10-day forecasted rainfall and this data will be incorporated into our river systems models.

15. KEY ACHIEVEMENTS WATER UTILISATION
The transfer of WARMS staff to Water Resources Utilisation;
The creation of additional three new posts and appointment thereof in the last part of the financial year;
Successful completion of the groundwater monitoring project;
Eradicated license backlog; and
Drilling of two (2) community water supply groundwater boreholes.
Currently there is no WULAs backlog in the IUCMA. (In the WUA forum meeting held last week, it was indicated that the National WULAs backlog was seating at 473 before 30 June 2016
IUCMA had a total of 37 WULAs. Out of 37, 31 WULAs were finalised, (6 under assessment) 3 are seating with WUAAC, 02 at Head Office for finalization and 01 with IUCMA).
Two boreholes were drilled:
1. one in Meyershoop community (Piet Retief). The pump was installed on the 18 September 2017 and the said borehole is now running. The Meyershoop community is now have access to water.
               2. Another one in Mhwayi Primary School at Clau-Clau – the said borehole is operational.

16. KEY ACHIEVEMENTS WATER UTILISATION
Authorize d Water Use
Equitable and sustainable provisioning of water
Ensure effective , Efficient and Sustaina ble Manage ment of Water Resourc es
Number of water quality related authoriza tions issued 8 10 13
Demand driven
None
Number of water quantity related authorisa tions 20 29
This was due to a back log of WULAs inherited from DWS
WARMS office functiona l
100% function al
100% functional
Figure 2: Rainfall in Crocodile Catchment during the year. Note that the cumulative rainfall for 2014/2015 and 2015/2016 hydrological year is lower than the cumulative average.

17. KEY ACHIEVEMENTS STAKEHOLDER EMPOWERMENT & INTERACTIONS
Management of forums. Forums were used as the conduit for information with regard to the review and other projects led by the DWS, e.g.(WAR)
The I&P facilitated the feasibility study on the gravity flow irrigation system project in the Sibange irrigation scheme. The Terms of Reference were completed.
A collaboration with the RAITH foundation on a three-year project which is implemented by Pegasys Institute to assist rural water users in accessing water for productive use was supported.
A collaboration with the South African Police Services (SAPS) was initiated to address environmental crimes within the water management area especially illegal sand mining.
The I&P successfully coordinated the Science Schools Competitions in celebration of the National Water Month (NWM) 2017 which took place at Mbombela Stadium on the 25th March 2017.

18. KEY ACHIEVEMENTS STAKEHOLDER EMPOWERMENT & INTERACTIONS
Most asked questions by stakeholders:
Need for IWRM workshops on resource protection.
We have given trainings in many communities but will prioritise communities never trained
Pollution of stream, rivers and the environment in general.
We have programmes that address similar issues or challenges at community level, schools, church structures and traditional authorities
HDIs or Resource Poor Farmers support needs or requests.
we liaise and connect the affected parties with the relevant department, e.g. DARDLEA officers who are best placed to address their issues. We do supply relevant departments with the database of our registered HDI farmers including their needs.
Commercial Farmers and HDIs disputes.
We have investigated cases of this nature with officials of DWS at the regional level. Results of the investigation have been referred to the relevant departments and or units. Some of the parties in dispute reached amicable solutions with our help and that of the regional office of DWS.

19. KEY ACHIEVEMENTS
RIVER CLEANING CAMPAIGNS

20. KEY ACHIEVEMENTS CORPORATE SERVICES
This year has seen the enforcement of Cost Containment Measures as implemented by National Treasury, which has seen the organization realizing some cost savings.
The institution developed and implemented strategies to attract, develop, engage, motivate and retain talent in the organisation to ensure that the organisation is the employer of choice.
Bursaries were awarded to employees to further their studies
The IUCMA had two successful tariff consultation sessions in the WMA. A trend analysis on the increase in tariffs is depicted below.

21. KEY ACHIEVEMENTS CORPORATE SERVICES

22. KEY ACHIEVEMENTS CORPORATE SERVICES
The year has seen the successful implementation and effective maintenance of all the records within the IUCMA, including electronic records management systems being fully functional and effective.
Water quality and quantity files are continuously updated and maintained.
Improvement in terms of work awarded in the performance tables in terms of BBBEE spend.

23. KEY ACHIEVEMENTS RISK MANAGEMENT FINANCIAL MANAGEMENT
There has not been any variance from the expected performance with regard to effective internal controls and risk management.
The quarterly risk registers were produced and submitted to the governing board via the audit committee.
FINANCIAL MANAGEMENT 
Sound financial services rendered as exemplified by the IUCMA checklist having been fully compliant with PFMA.
In keeping with the spirit of PFMA, the IUCMA has timeously submitted the required financial performance reports.
100% (4/4 to Minister and 4 to NT on its template)
The answer is for percentage personnel. 54 (Total staff compliment) X 20% (Total target per quarter) = 10.8 total staff target per quarter. 20%  divide by 10.8 = The answer is 1.85% of 20% personnel trained.

24. KEY ACHIEVEMENTS Statement of Financial Performance as at 31 March 2017
2017
2016 R
Revenue
80,151,265
65,336,603
Other income
396,205
91,211
Operating expenses
80,431,735
(65,347,872)
Operating surplus (deficit)
115,735
79,942
Investment revenue
1,713,352
1,502,405
Finance costs
115,736
(79,942)
Surplus (deficit) for the year
1,713,351
The answer is for percentage personnel. 54 (Total staff compliment) X 20% (Total target per quarter) = 10.8 total staff target per quarter. 20%  divide by 10.8 = The answer is 1.85% of 20% personnel trained.

25. KEY ACHIEVEMENTS Statement of Financial Position as at 31 March 2017
2017
2016 R
Assets
Current Assets
Receivables from exchange transactions
35,300
407,864
Cash and cash equivalents
31,525,158
33,812,637
31,560,458
34,220,501
Non-Current Assets
Property, plant and equipment
5,593,339
3,081,776
Deposits
195,900
210,600
5,789,239
3,292,376
Total Assets
37,349,697
37,512,877
The answer is for percentage personnel. 54 (Total staff compliment) X 20% (Total target per quarter) = 10.8 total staff target per quarter. 20%  divide by 10.8 = The answer is 1.85% of 20% personnel trained.

26. KEY ACHIEVEMENTS Statement of Financial Position as at 31 March 2017
Liabilities
2017
2016 R
Current Liabilities
Finance lease obligation
135,219
241,378
Payables from exchange transactions
2,645,785
4,308,728
Provisions
1,432,414
1,177,728
Deferred Income
17,285,224
17,822,807
21,498,642
23,550,641
Non-current Liabilities
218,601
43,133
Total Liabilities
21,717,243
23,593,774
Net Assets
15,632,454
13,919,103
Accumulated surplus
The answer is for percentage personnel. 54 (Total staff compliment) X 20% (Total target per quarter) = 10.8 total staff target per quarter. 20%  divide by 10.8 = The answer is 1.85% of 20% personnel trained.

27. CHALLENGES AND MITIGATION
EFFECTIVE RIVER OPERATING SYSTEMS
Drought – natural disaster. Another storage facility (dam) needed. Prefeasibility study process ongoing.
CROCDAC established to assist the Department.
WATER ALLOCATION REFORM 
Water Allocation Reform is part of the Water Allocation Plan which can fully be done only after completion of the validation and verification of the existing lawful water uses.
Due to delegation issues, there has been a delay in the Usuthu V/V project.

28. CHALLENGES AND MITIGATION
DISCHARGE AND WATER RESOURCE QUALITY EFFECTIVELY MONITORED
Pollution problems emanating from WWTWs poses serious health risks.
Apart from the notices, directives and police cases, interactive structures have been established with relevant structures to find solutions together; SALGA, COGTA, etc.
MUSSA

29. Thank You