ANNUAL REPORT 2014 / 2015 - dwa.gov.za

1 ANNUAL REPORT . 2014 / 2015. PART A: general INFORMATION. ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION 1. Contents PART A: general INFORMATION. 1 DEPARTMENT general INFORMATION .. 5. 2 LIST OF ABBREVIATIONS/ACRONYM .. 6. 3 FOREWORD BY THE MINISTER .. 8. 4 DEPUTY MINISTER 10. 5 REPORT OF THE ACCOUNTING 11. 6 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT .. 20. 7 STRATEGIC OVERVIEW .. 21. Vision .. 21. 21. Values .. 21. Strategic outcome oriented goals .. 21. 8 LEGISLATIVE AND OTHER MANDATES .. 22. 9 ORGANISATIONAL STRUCTURE .. 23. 10 ENTITIES REPORTING TO THE 24. PART B: PERFORMANCE INFORMATION. 1 AUDITOR- general 'S REPORT : PREDETERMINED OBJECTIVES .. 26. 2 OVERVIEW OF DEPARTMENTAL PERFORMANCE.

2 26. Service Delivery Environment .. 26. Service Delivery Improvement Plan .. 28. Organisational environment .. 29. Key policy developments and legislative changes .. 29. 3 STRATEGIC OUTCOME ORIENTED 29. 4 PERFORMANCE INFORMATION OF MAIN ACCOUNT PROGRAMMES .. 30. Programme 1: Administration .. 30. Programme 2: Water Sector 36. Programme 4: Regional Implementation and Support .. 51. Programme 5: Water Sector Regulation .. 75. Programme 6: International Water 88. 5 PERFORMANCE INFORMATION OF WATER TRADING ENTITY PROGRAMMES .. 118. Programme 1: Administration .. 118. Programme 3: Water Infrastructure 121. Programme 4: Regional Implementation and Support .. 135. 6 TRANSFER PAYMENTS .. 138. Transfer payments to public entities .. 138. Transfer payments to all organisations other than public entities.

3 138. 7 CONDITIONAL GRANTS .. 139. Conditional grants and earmarked funds paid .. 139. Conditional grants and earmarked funds 143. 8 DONOR FUNDS .. 144. 9 CAPITAL INVESTMENT .. 144. Capital investment, maintenance and asset management plan .. 144. 2 ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION. PART A: general INFORMATION. PART C: GOVERNANCE. 1 INTRODUCTION .. 146. 2 RISK 146. 3 FRAUD AND 146. 4 MINIMISING CONFLICT OF INTEREST .. 147. 5 CODE OF CONDUCT .. 148. 6 HEALTH SAFETY AND ENVIRONMENTAL ISSUES .. 148. 7 PORTFOLIO COMMITTEES .. 148. 8 SCOPA RESOLUTIONS .. 148. 9 PRIOR MODIFICATIONS TO AUDIT REPORTS .. 150. 10 INTERNAL CONTROL UNIT .. 153. 11 INTERNAL AUDIT AND AUDIT COMMITTEES .. 153. 12 AUDIT COMMITTEE REPORT .

4 154. PART D: HUMAN RESOURCE MANAGEMENT. 1 INTRODUCTION .. 156. 2 OVERVIEW OF HUMAN RESOURCES .. 156. 3 HUMAN RESOURCES OVERSIGHT STATISTICS .. 156. PART E: FINANCIAL INFORMATION. VOTE 42 FINANCIAL INFORMATION. 1 REPORT OF THE AUDIT COMMITTEE ON THE FINANCIAL STATEMENTS FOR THE DEPARTMENT. OF WATER AND SANITATION (VOTE 42) .. 196. 2 REPORT OF THE AUDITOR- general TO PARLIAMENT ON VOTE NO 42: DEPARTMENT. OF WATER AND 198. 3 ANNUAL FINANCIAL STATEMENTS OF VOTE 42 FOR THE YEAR ENDED 31 MARCH 203. Appropriation statement .. 203. Notes to the appropriation statement .. 259. Statement of financial 262. Statement of financial position .. 263. Statement of changes in net assets .. 263. Cash flow statement .. 264. Accounting policies .. 265.

5 Notes to the ANNUAL Financial Statements .. 272. Annexures to the ANNUAL Financial Statements .. 310. WATER TRADING ENTITY FINANCIAL INFORMATION. 1 REPORT OF THE AUDIT COMMITTEE ON THE ANNUAL FINANCIAL STATEMENTS FOR THE. WATER TRADING ENTITY .. 336. 2 REPORT OF THE AUDITOR- general TO PARLIAMENT ON THE WATER TRADING 338. 3 ANNUAL FINANCIAL STATEMENTS OF THE WATER TRADING ENTITY FOR THE YEAR ENDED. 31 MARCH 342. Statement of financial 342. Statement of financial position .. 343. Statement of changes in net assets .. 344. Cash flow statement .. 345. Notes to the financial statements .. 346. Notes to the financial statements .. 358. ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION 3. PART A: general INFORMATION. Back row: Frans Moatshe; Norman Mudau; Andre Van der Walt; Masala Mulaudi; Paul Nel; Nigel Adams; Moloko Matlala; Leonardo Manus; Collin Pitso Top middle row: Livhuwane Mabuda; Gabengane Mkhabela; Nomathamsanqa Mpotulo; Marie Brisley; Squire Mahlangu.

6 Zacharia Maswuma; Marius Keet; Moshito Maphanga Middle row: Fikile Guma; Adam Bogoshi; Livhuwani Mabuda; Ashley Starkey; Mpho Mofokeng; Anil Singh; Archinton Thobejane; Thoko Sigwaza Front row: Petunia Ramunenyiwa; Deborah Mochotlhi; Matlakala Motloung; Zandile Mathe; Lindiwe Lusenga Margaret- Ann Diedricks 4 ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION. PART A: general INFORMATION. 1 DEPARTMENT general INFORMATION. PHYSICAL ADDRESS 185 Francis Baard Street Pretoria 0001. POSTAL ADDRESS Private Bag X313. Pretoria 0001. TELEPHONE NUMBER (012) 336 7500. FAX NUMBER(S) 012 323 4470 or 012 326 2715. EMAIL ADDRESS WEBSITE ADDRESS ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION 5. PART A: general INFORMATION.

7 2 LIST OF ABBREVIATIONS/ACRONYMS. Abbreviation/acronym Description ACIP Accelerated Community Infrastructure Programme AMCOW African Ministers' Council on Water AMD Acid Mine Drainage APP Approved Professional Person ARF African Renaissance Fund BNC Bi-National Commission BP Business Plan BRICS Brazil, Russia India china and South Africa CBWS Cross Border Water Supply CMA Catchment Management Agency COP Conference of the Parties CRM Customer Relations Relation DEA Department Environmental Affairs DIRCO Department of International Relations and Cooperation DRC Democratic Republic of the Congo DWS Department of Water and Sanitation DWWWM Drinking Water and Waste Water Management EC Eastern Cape ECOMAG A division of REAG Tekna, American Appraisal Group specialising in environmental consulting, energy.

8 Engineering and health and safety EIA Environmental Impact Assessment EMP Environmental Management Plan EU European Union FS Free State HDI Historically Disadvantaged Individual IA Implementing Agent IWQMS Integrated Water Quality Management Strategy JICA Japan International Cooperation Agency JSNC Joint Study management Committee JWC Joint Water Commission JWRSC Joint Water Resource Steering Committee KOBWA Komati Basin Water Authority KZN KwaZulu-Natal LIMCOM Limpopo River Basin Commission LM Local Municipality LP Limpopo Ml Mega litres MOU Memorandum of Understanding MP Mpumalanga MU Monash University NAP National Action Plan NC Northern Cape 6 ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION. PART A: general INFORMATION.

9 Abbreviation/acronym Description NEPAD New Partnership for Africa's Development NIWIS National Integrated Water Information System NW North West NWRS National Water Resource Strategy ODA Official Development Assistance ORASECOM Orange-Senqu River Basin Commission ORIO Netherland Facility for Infrastructure Development PDP Personal Development Plan PPI Programme Performance Indicator PPP Public Participation Programme PSP Professional Service Provider RAP Relocation Action Plan RBIG Regional Bulk Infrastructure Grant RHIP Rural Household Infrastructure Programme RQO Resource Quality Objectives SADC Southern African Development SAP Strategic Action Programme SFRA Stream Flow Reduction Activities SIU Special Investigation Unit SIWI Stockholm International Water Institute SLA Service Level Agreement SWPN Strategic Water Partnership Network SWWW Stockholm World Water Week TCTA Trans Caledon Tunnel Authority TPTC Tripartite Permanent Technical Committee UNCSD United Nations Conference on Sustainable Development UNESCO United Nations Educational Scientific and Cultural Organisation UNFCCC United Nations Framework Convention on Climate Change UNGA United Nations general Assembly UNSGAB United Nations Secretary general Advisory Board WB Water Board WC Western Cape WCWDM Water Conservation Water Demand Management WEF World Economic Forum WfWP Women for Water Partnership WMA Water Management Area WRC Water Research Commission WRG Water Resource Group WUC Water

10 Utilities Cooperation WWC World Water Council WWD World Water Day WWF World Water Forum WWTW Wastewater Treatment Works ANNUAL REPORT 2014 -15 VOTE 42 | DEPARTMENT OF WATER AND SANITATION 7. PART A: general INFORMATION. FOREWORD BY THE MINISTER. It gives me great pleasure to present the ANNUAL REPORT for the 2014 /15 financial year of the newly established Department of Water and Sanitation. The Department of Water and Sanitation was born out of the wisdom of the President and the mandate given to us by the people of South Africa to provide them with water and decent sanitation. Its establishment included the transfer of the Sanitation function from the Department of Human Settlements to its current location alongside Water. The National Development Plan also, as our policy cornerstone, directs that we create alignment in institutions and in the structure of the state in order to respond efficiently to the needs of our country and its people.