FINANCIAL REPORT 2006-2007

PROGRAMME 1: ADMINISTRATION

MR OO AYAYA, CHIEF FINANCIAL OFFICER

OVERVIEW OF

ANNUAL FINANCIAL STATEMENTS

2006/07

R’000

2005/06

R’000

% Increase/ (Decrease)

Expenditure

Trading 4 485 917 3 574 632 25.5

Main 4 591 325 3 889 150 18.1

Total 9 077 242 7 463 782 21.6

Spending levels 92,4% 94,4% (2)

UNDER EXPENDITURE PER PROGRAMME

Budget

R’000

Actual

R’000

% spent

Administration 542 395 526 729 97.1

WRM 2 174 430 1 872 479 86.1

Water Services 1 488 986 1 454 758 97.7

Forestry 444 048 441 240 99.4

OVERVIEW OF

ANNUAL FINANCIAL STATEMENTS

EXCHEQUER ACCOUNT

2006/07

R’000

2005/06

R’000

% Increase/Decrease

Administration 526 729 278 378 89.2

Water Resources Management

1 872 479 1 613 594 16.0

Water Services 1 454 758 1 524 895 (4.6)

Forestry 441 240 420 919 4.8

AUDITOR-GENERAL REPORTS

Exchequer Trading Forestry

Trust

Disclaimer Qualification Emphasis of matter Unqualified

CURRENT PROJECTS

• EWAM – Immovable asset management projectEWAM – Immovable asset management project• Moveable asset management projectMoveable asset management project• SAP implementation (system, training etc.)SAP implementation (system, training etc.)• Accounting firm – resourcesAccounting firm – resources• Revenue projectRevenue project• Office of Accountant-general (retired Office of Accountant-general (retired

accountants & interns)accountants & interns)

Clean Audit – March 2009Clean Audit – March 2009

OTHER ACTIVITIES PLANNED

• Update of accounting policies and proceduresUpdate of accounting policies and procedures• Budget guidelinesBudget guidelines• Strategic planning and budget courseStrategic planning and budget course• Financial support to chief directorates Financial support to chief directorates • PFMA, Soft skills training PFMA, Soft skills training • SAP – Establishment of a centre of excellenceSAP – Establishment of a centre of excellence• Internal Restructuring of DWAFInternal Restructuring of DWAF• Improvement oversight of other institutions Improvement oversight of other institutions

(Public entities) (Public entities)

CHALLENGES

• SAP – proper implementation – long term, user SAP – proper implementation – long term, user requirementsrequirements

• Inadequate capacity (lack of skilled resources)Inadequate capacity (lack of skilled resources)• Segregation between Exchequer and Trading Segregation between Exchequer and Trading

account – functions, staff issuesaccount – functions, staff issues• Assets – magnitude, locationAssets – magnitude, location

PROGRESS TO DATE

• SAP implementationSAP implementation• Appointment of Chief Financial Officer and Appointment of Chief Financial Officer and

Deputy Chief Financial OfficerDeputy Chief Financial Officer• Segregation between Exchequer and Trading Segregation between Exchequer and Trading

accountaccount• Develop of discussion paperDevelop of discussion paper• Review of Supply Chain Management process Review of Supply Chain Management process • Implementation of telephone policyImplementation of telephone policy• Development of Debt collection policyDevelopment of Debt collection policy• Budget blockingBudget blocking• Establishment of Audit Steering CommitteeEstablishment of Audit Steering Committee

Thank you