SEDIBENG WATER
ANNUAL REPORT 2004/2005
PRESENTATION TO THE PORTFOLIO COMMITTEE
12 October 2005
AGENDA
1.Introduction
2.Board Performance Reviews
3. Financial Performance
4. Operational Performance
5. Market Development
6. Commercial Equity
7. Customer Satisfaction
8. Human Resources
9. Safety, Health and Environment
10.Corporate Social Investment
11. Challenges
1. Introduction
- LT Strategies for sustainability embedded in annual report
- Progress on all strategic imperatives
- Ongoing strategic reviews aligned to performance management system
- Short interval business reviews to focus on key priorities
- Chief Executive and Senior Management sign performance contracts
- Presentation based on performance reviews and Audited Financial Statements
2. Board Performance Reviews
- Clearly defined measurement criteria
- Effort
- Problem Solving
- Objectivity
- Comprehension
- Project task Resolve
- Experience
Financial Performance: [PMG note: Graph (table, map, appendix) not included for the following headings, Email [email protected] for this]
- Annual Results - Free State
- Operating Surplus 2005 vs. 2004
- Annual Results - Free State
- Operating Surplus 2005 vs. Budget
- Annual Results - North West
- Operating Surplus 2005 vs. 2004
- Annual Results - North West
- Operating Surplus 2005 vs. Budget
- Annual Results - Qwa Qwa
- Operating Surplus 2005 vs. 2004
- Financial Performance Annual Results - Qwa Qwa
- Operating Surplus 2005 vs. Budget
Budget and Cost Management
- Achieved a 20% cost savings
Revenue Management
- Decline by 7% due to water demand reduction and unpaid equitable shares
Net Surplus
- R13.8 million compared with R12.5 millions in the Free State in the previous year
Maintenance Expenditure
- An over-expenditure of 1% to budget Proactive/planned Maintenance Unplanned/Reactive Maintenance
An amount of R14. 2 million was spent
4. Operational Performance
- Process efficiency savings of R1.5 million
- Water quality maintained at Class 1 except for periodic colour, iron and manganese concentrations. Water quality can be improved to meet class 1 standards 95% of the time but the cost implication will be enormous to be transferred to consumers
5. Market Development
- Signed 5 strategic support management contracts in Siyanda District
- Seconded staff to Phumelela Municipality under Project Consolidate
6. Commercial Equity
- Average BEE expenditure is 55%
- Promoting BEE participation
- Hand holding and training SMME
- Encourage establishment of BEE companies
7. Customer Satisfaction
Weekly
- interaction with Ward Committees
- lmproved responsive time and reduction of interruptions
- Improved performance in line with SLA
- Monthly coordinating committee meetings
- Customer satisfaction monitoring system (KPI in place)
8. Human Resources
- EE target has been exceeded as per plan
- Appointments aimed at addressing gender balance, constitutes 20% of management currently
- Specific functional levels receiving undivided attention e.g. superintendent level
Training
- Expenditure, 400/0 more than ~ budget
- Focus on courses such as Leadership, management, finance etc.
9. Safety, Health and Environment
Safety
- Disabling Injury Frequency rate averaged 0.5 compared with 1.1 last year
- All regions received 5 star NOSA ratings
Health
- Monitoring water quality at provincial level (FS and NC)
- Assist in water and waste water testing and analysis under Project Consolidate
- HlV/AlDS awareness campaign and provision of ART from March 2005
Environment
- Monitoring discharges into wet stream
10. Corporate Social Investment
- Invested approximately R1.5 million
- The programme concentrated on
- Food parcels provisioning at Kestell and lntabazwe in Qwa Qwa
- Donations to schools
- Donations to orphanage
- Learnership
11. Challenges
- Payment of subsidies and equitable shares by Water Services Authorities
- Acknowledgement of the role of Sedibeng Water as a public entity in water service delivery