1. Presentation to Portfolio Committee
The Inkomati
Annual Report
INKOMATI CATCHMENT MANAGEMENT AGENCY
The 2009 / 10 Annual Report for the Inkomati Catchment Management Agency
Presentation to Portfolio Committee
02 June 2010
Chairperson: Patience Nyakane-Maluka
Acting CEO: Brian Jackson

2. The 2009 - 10 Inkomati Annual Report Contents
INKOMATI CATCHMENT MANAGEMENT AGENCY
Contents
Governing Board Performance and Challenges
Strategic Adaptive Management and Adaptive Planning
Strategic Objectives
Financials
Institutional Performance:
Co-operative Governance
Catchment Management Strategy
Integrated Planning and Operations of River Systems
Pollution Control
Stakeholder Participation
Finance
Corporate
Institutional Challenges

3. The 2009 - 10 Inkomati Annual Report Governing Board Performance
INKOMATI CATCHMENT MANAGEMENT AGENCY
Governing Board Performance
All legislative reporting requirements such as the Strategic Plan, Operational Plan, annual and quarterly financial and performance reporting were complied with.
An Unqualified Audit Opinion was obtained.
The following committees were in operation during the 2009/10 financial year:
Executive Committee: Considered 52 reports
Water Committee: Considered 28 reports
Audit Committee: considered 41 reports
A total of 28 Board, Committee, special and stakeholder meetings were held
Governing Board Charter, Delegation of Powers and Functions by the Governing Board, Audit Committee Charter and Terms of Reference for both the Executive and Water Committees of the Governing Board were revised during the year.
Reviewed and adopted 20 policy documents
Created a corporate Governance division in the institution to ensure that the Governing Board and its committees function effectively by providing secretarial functions as well as strategic guidance and support to the Governing Board on matters of law, business ethics, good governance, fiduciary duties etc.
A register of Governing Board resolutions was developed and is constantly updated to assist in tracking the performance of the institution

4. The 2009 - 10 Inkomati Annual Report Governing Board Challenges
INKOMATI CATCHMENT MANAGEMENT AGENCY
Governing Board Challenges
There are two vacancies in the Board, which have not been replaced.
A new governing Board was due to be appointed by the minister in the financial year, and no vacancies have thus been replaced. This is overdue.
The CEO post is vacant due to the resignation of the incumbent and cannot be replaced due to the pending renewal of the governing board and instruction from DWA that the new governing board must appoint the new CEO.

5. The 2009 - 10 Inkomati Annual Report
The ICMA adopted an Adaptive Planning Process - following the Strategic Adaptive Management methodology currently widely accepted in resource management circles - for the development of its Business Plan.
Strategic Adaptive Management was first developed during the Kruger National Park Rivers Research Program as a tool for river management at the catchment level (Rogers and Bestbier 1997), before it became honed as a tool for participatory management of protected areas, especially our National Parks (Biggs and Rogers 2003). SAM was then further refined to serve the management of complex social-ecological systems (Rogers and Sherwill 2008), which of course includes catchments. SAM is therefore a very valuable tool for structuring the interdisciplinary knowledge partnerships needed to facilitate IWRM within a complex social-ecological systems.
This process resulted in revised Strategic Objectives for the ICMA that were included in the Business Plan and annual report. These are:
The Inkomati
Annual Report
INKOMATI CATCHMENT MANAGEMENT AGENCY
Strategic Adaptive Management and Adaptive Planning

6. The 2009 - 10 Inkomati Annual Report
INKOMATI CATCHMENT MANAGEMENT AGENCY
Strategic Objectives in Business Plan
Adaptively develop/implement participative systems for authorisation, compliance, monitoring and enforcement that aim to balance resource use and protection in ways that ensure reform and promote socio-economic development.
Adaptively stimulate/develop/implement co-operative governance that promotes co-ordination of river operating systems, spatial planning and development to protect the resource and catchment.
Set and pursue the agenda for international negotiations that reflect local conditions/needs.
Become an internationally recognised hub for participative IWRM by adaptively coordinating, generating and distributing data, knowledge, skills and management systems.
The Strategic Objectives also speak to those of DWA.
The Adaptive Planning Process also developed Values, attributes, Threats, constraints and the context for the ICMA. These are all indicated in the annual report

7. The 2009 - 10 Inkomati Annual Report Institutional Performance
INKOMATI CATCHMENT MANAGEMENT AGENCY
Institutional Performance
All legislative reporting requirements such as the Strategic Plan, Operational Plan. annual and quarterly financial and performance reporting were complied with.
The ICMA made large strides in positioning itself as a central advisory player on development planning initiatives within the Inkomati Water Management Area and played an active role in establishing and advising many forums, projects and programmes. These included:
Co-operative Governance
Forums attending and advising:
Crocodile, Sand, Sabie and Komati River Forums. ICMA forums
DWAF Low Flows & Restrictions Forum
MCCAW (Mpumalanga Coordinating Committee on Water Use)
EDM (Ehlanzeni District Municipality) Water Sector Collaboration Forum
Mpumalanga Wetlands Forum
Ngwenya Private Sector Forum (Irrigation Forum). This has evolved into a ICMA / IIF Forum with a TOR for the establishment of WUA’s.
KJOF (Komati Joint Operations Forum). Operation Rules for Driekoppies and Maguga Dams
Member of WISA (Water Institute of South Africa)
Member of GWP (Global Water Partnership)

8. The 2009 - 10 Inkomati Annual Report Institutional Performance
INKOMATI CATCHMENT MANAGEMENT AGENCY
Institutional Performance
Water Research Commission. Project Coordinating Committee member of all projects below:
Shared Rivers Initiative. Confronting the challenges of keeping the rivers of the eastern Lowveld healthy. Will provide Useful Info on the Stakeholder perception of Water Resources Management for the CMS.
Application And Testing Of A Strategic Adaptive Management System For Fresh Water Protection. This project will result in an official MOA with the Kruger National Park relating to the gathering, sharing etc of information.
National water resource planning for operational needs. Integrated Modelling for Water Resource Planning and Operational Management
Hydro-Economic Model. A model to investigate the implications of water availability on farm economics in the Inkomati
Water Allocation Game
CSIR Learning Strategy Project. Portions of this were incorporated into our Catchment Management Strategy.
Reference group on WAR – instruments and processes for achieving equity and gender balance

9. The 2009 - 10 Inkomati Annual Report
INKOMATI CATCHMENT MANAGEMENT AGENCY
DWA Projects. PCC Project Coordinating Committee member of all projects below:
A Real Time Decision Support System for the Crocodile River System.
New Operating Rules for the Sabie River System. Proposed future project. ICMA assisting DWAF with the TOR.
Water Use Verification. ICMA assisting DWAF with the management of this project. Critical Path Project for WAR & Compulsory Licensing to be Implemented.
IWAAS (Inkomati Water availability assessment study). Updated hydrology for the IWMA
All Towns Strategy for towns in the Eastern Region. Reconciliation Strategies for all Towns in the Region. Inkomati Comprehensive Reserve Project. Will determine the comprehensive reserve scenarios for the Crocodile and Sabie Rivers.
International Projects:
- Progressive realisation of the Inco-Maputo Agreement (PRIMA).
This programme consists of 12 projects, which will allow the international agreement with Mozambique and Swaziland to be updated including new operating Rules.
Komati Basin Water Authority (KOBWA): Komati River future development Studies Project.
Twinning Agreement with Groot Salland Water Board in the Netherlands to share knowledge. This led to a number of projects during the year under the review and highlighted over the page:

10. The 2009 - 10 Inkomati Annual Report Catchment Management Strategy
INKOMATI CATCHMENT MANAGEMENT AGENCY
ICMA and Groot Salland lead an “Inspiration for Sanitation” workshop in the Netherlands at which all the local municipalities and Human Settlement provincial Department participated. A Statement of intent was compiled and signed by all parties.
Training of Operations and Maintenance staff at Nkomazi Municipality
Sincobile School perma-culture garden and sanitation project, at which 7 International students participated
facilitated the attendance of an international trans-boundary water management conference in Germany and the Netherlands at which he concept of REMCO (River and Environment Management Cooperation) was borne.
Catchment Management Strategy
The draft First Generation Catchment Management Strategy was completed and submitted to DWA at the end of the Financial year.
The finalisation of the CMS was handled internally with the assistance of officials from the Department of Water Affairs. This was done through a detailed workplan developed by the ICMA, assisted by a small contract with the University of Witwatersrand.
Stakeholders were given the opportunity to share their understanding of the current and desired status of water resources, from which a vision was articulated and strategic action programmes were developed ensuring that the water resources will be managed with an objective of achieving that vision in the medium to long term.

11. The 2009 - 10 Inkomati Annual Report
INKOMATI CATCHMENT MANAGEMENT AGENCY
The CMS must still be gazetted to allow further public comment before it can be promulgated.
The Adaptive Planning Process followed by the ICMA Prioritised the implementation of the Crocodile River Real Time Operating Rules.
Agreement was obtained with DWA for the ICMA to implement these rules and take over the operation of the Decision support system developed by DWA
The Inkomati CMA thus established and facilitates the Crocodile Catchment Operations Committee (CROCOC), to ensure effective communication and consensual decision making with our stakeholders regarding the operating rules.
The ICMA has also assisted DWA in developing the terms of reference for the Sabie River Operating Rules project.
This Function is assigned to the ICMA, but was performed by the Regional Office during the financial year as the staff to perform the function had not yet been transferred to the ICMA.
Integrated Planning and Operation of River Systems
Pollution Control

12. The 2009 - 10 Inkomati Annual Report Stakeholder Participation
INKOMATI CATCHMENT MANAGEMENT AGENCY
Stakeholder Participation
The ICMA compiled a database of all stakeholders classified according to water related activities in the catchment management area.
Agreement was reached with DWA that any Stakeholder engagement in the Inkomati must be coordinated through the ICMA.
An unqualified Audit was obtained
Fully compliant with PFMA and Treasury Regulations
The Department approved a budget of R for the Inkomati CMA, but only R17 million was transferred to the institution’s bank account during the financial year. Of this R was only received in the last quarter of the financial year.
The unreliability and late transfer of much of these funds made it difficult for the ICMA to implement its operational plan, resulting in many planned projects being delayed during the year. At certain instances salaries were paid late which gave rise to staff grievances. The Inkomati CMA also incurred penalties and interest from the South African Revenue Service (SARS) due to late payment of taxes.
A number of posts planned to be filled could not be advertised as a result of the poor cash flow.
Finance

13. The 2009 - 10 Inkomati Annual Report Finances Continued
INKOMATI CATCHMENT MANAGEMENT AGENCY
Finances Continued
Budget approved: R
Expenditure: R
Unspent funds: R
An agreement was reached with DWA Mpumalanga to use the unspent funds on projects commencing in the new financial year to assist them.
Assets consists of :
Capital expenditure consists only of Office furniture and Equipment : R
Debtors were the DWA grants not received at year-end
Positive bank balance of R at year end
Net Assets & Liabilities consists of:
Accumulated surplus of R off setting previous accumulated deficits
Accounts payable - due to late funds transfer
Finance lease obligations – office machines

14. The 2009 - 10 Inkomati Annual Report Finances Continued
INKOMATI CATCHMENT MANAGEMENT AGENCY
Finances Continued
The Governing Board Members Stipends were calculated on the following rates per meeting per day/event including preparation:
Chairperson R 4,000
Deputy Chairperson R 3,750
Ordinary Members R 3,500
A total of R was paid to Board members in the year
The External Members of the Audit Committee stipends were calculated on the following rates per meeting per day/event including preparation:
Chairperson R 4,622
Ordinary Members R 2,806
A total of R was paid to Audit Committee members in the year
Executive Managements remuneration:
CEO – acting allowances R102,030
Water Use R796,906
WRP&P R764,252
Institutions & ParticipationR765,114 All these managers are
Corporate & Finance R769,072 remunerated at level 13

15. The 2009 - 10 Inkomati Annual Report Finances Continued
INKOMATI CATCHMENT MANAGEMENT AGENCY
Finances Continued
Remuneration of other staff compliment of the ICMA:
4 x level 12 employees
3 x level 11 employees
1 x level 10 employee
8 x level 9 employees
1 x level 8 employee
2 x level 7 employees
1 x level 6 employee
1 x level 4 employee
1 x level 3 employee
1 x level 2 employee
Employment according to Race and Gender
African male 11
White male 3
African female 7
Total 21

16. The 2009 - 10 Inkomati Annual Report Corporate
INKOMATI CATCHMENT MANAGEMENT AGENCY
Corporate
Achievements in Corporate include:
A recognition agreement with labour union (NEHAWU) during the period under review was finalised.
Accurate recording of supplier’s accounts
Adoption and implementation of an Effective procurement management system
Efficient and accurate payroll management
Risk Management. A risk assessment and risk register was drawn up and updated on a quarterly basis
Job Evaluations for all positions on the organogramme were finalised using the DPSA system.
Skills Development. The ICMA granted bursaries to eight disadvantaged students to pursue studies in the fields of Engineering, Water Resource Management, Finance and Information Technology. As a result of this a student with a BSC in microbiology was appointed at the ICMA and a student with a BSc (hons) in hydrology was also appointed.
Development and review of human resources policies. A number of policies were reviewed to ensure smooth transfer of staff from DWA

17. The 2009 - 10 Inkomati Annual Report Institutional Challenges
INKOMATI CATCHMENT MANAGEMENT AGENCY
Institutional Challenges
Delegation of functions from DWA were not finalised as agreed in the MOU. These were finalised in December 2010 and the ICMA 2011/12 Strategic Plan incorporates outputs to commence implementation of the delegations.
Transfer of staff from DWA could not be finalised due to the functions not being delegated. The staff to be transferred have now been identified and the process to transfer has commenced.
Resignation of CEO, which could not be replaced due to delays in finalising the new governing board for the ICMA by DWA. A new governing Board and CEO has still not been appointed.
The Catchment Management Strategy must still be approved for gazetting for public comments by the Minister.
Financial sustainability and water tariffs: DWA is still collecting revenue and developing the tariffs for the CMA’s. This implies that the ICMA is reliant on funding transfers from DWA. The funds were not timeously transferred to the CMA, severely affecting the implementation of our Business plan.
The ICMA suffered a fairly high staff turnover due to the lack of progress on our business plan