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Pelladrift Water Board Annual Report 2005/2006 Presentation to

Pelladrift Water Board Annual Report 2005/2006 Presentation to Portfolio Committee on Water Affairs and Forestry at Parliament on 19 March 2007. Geographical location. Overview. External audit opinion Human resources information Achievements during 2006 Annual financial statements

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Pelladrift Water Board Annual Report 2005/2006 Presentation to

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  1. Pelladrift Water Board Annual Report 2005/2006 Presentation to Portfolio Committee on Water Affairs and Forestry at Parliament on 19 March 2007

  2. Geographical location 19 March 2007

  3. Overview • External audit opinion • Human resources information • Achievements during 2006 • Annual financial statements • Notes to the financial statements • Actual performance & water sales • Independent consultants technical report • Key challenges going forward 19 March 2007

  4. External Audit Opinion “ the financial statements present fairly in all material respects the financial position of the Board at 30 June 2006 and the results of their operations and cash flows for the year then ended in accordance with SA statements of GAAP and in the manner required by the Water Services Act 1997 ” External Auditor: Du Toit Van Den Heever, Registered CA (SA), 29 Aug 2006 19 March 2007

  5. Human resources information • Board was formed to establish sustainable water supply to BM mine (90.5%) and the surrounding areas – only strategic objective! • BM mine is a division of Anglo Operations Limited (AOL) and manages pumping station • Board Members: BM mine GM (Chair), BM Fin Mgr (Secretary), AOL Accounting Officer (Jhb), KM Municipal Mgr, Pella Councillor • Term expired 21 Dec 2005 and the selection process is still ongoing 19 March 2007

  6. Nathan Williams HOD: Process Plants Dolf van Emmenis Section Engineer B.X Basson Pump Operator P. Jaar Pump Operator M.P. Second Pump Operator Pump station organogram C2 1 Jaap Jacobs Manager: Services C1 3 Level 1 6 Total 10 P.J. van den Heever Pump Supervisor J. Du Preez Pump Supervisor M. Staak Pump Supervisor J.S. Dippenaar Pella Superintendent I. Waterboer Pump Operator E. Cloete Pump Operator Francis. Green Pump Operator 19 March 2007

  7. Nalco 5306 Chlorine Dosing Average Water abstracted = 381 024 m3 /month Water turbidity raw = 9 – 500 NTU p = 7,4 - 9,0 H Lime Dosing Nalco 8174 Dosing Chemical Store Control Room Offices Water flow at pump station River Flow BM Mine Saddleback reservoir Low Lift Pump Station Kokerboom Aggeneys Village Horseshoe reservoir High Lift Pump Station River Flow Balancing Reservoir Pella Pofadder Other Water Clarifier Domestic Supply 19 March 2007

  8. Achievements during 2006 • New delivery PR valve installed for Pella community • Technical assistance given to Pofadder for installation of their own servitude pumps • Full integrity inspection conducted on length of pipeline (GUL tests) • Cathodic protection system on pipeline replaced and the protected area extended • Servitude extended for community plantation project alongside the Orange river • Clarifier reagent consumption reduced by 20% 19 March 2007

  9. Income Statement 19 March 2007

  10. Balance Sheet 19 March 2007

  11. Cash Flow Statement 19 March 2007

  12. Notes to financial statements • Accounting Policy The financial statements are prepared on historical cost basis where: • Depreciation Land buildings and capital works are reflected at cost with no provision made for depreciation • General reserve fund Any surplus funds that are not immediately required for a specific purpose may at the discretion of the Board be transferred to the General reserve fund to be applied for any permitted purposes i.t.o. the Water Act (1997) • Revenue Water sales are accounted for on an accrual basis Interest income is accounted for by reference to the effective yield • Financial instruments Financial instruments carried in the balance sheet include bank balance and cash, accounts receivable and accounts payable. These instruments are carried at their estimated fair value 19 March 2007

  13. Notes to financial statements 19 March 2007

  14. Notes to financial statements 19 March 2007

  15. Notes to financial statements • Water Charges The last increase in water tariff was effective from 1 January 2006: • Consumption up to 7 000 units from R0.79 to R0.83 per unit • Consumption over 7 000 units from R1.35 to R1.42 per unit • Consumption by local authorities Water was supplied to Khai-Ma Municipality (previously named the Pofadder Municipality and the Pella Management Board) during the period under review 19 March 2007

  16. Performance vs. Budget 19 March 2007

  17. Water Sales 2006 19 March 2007

  18. CBI Technical Report • No major capital work was carried out during the year and BM operations staff congratulated for good condition of pump station • Maintenance and replacement were carried out on the following items: • 400mm diameter rising main • Scour valves and NR valve on high lift pump 3 • Balance discs on high lift pump 2 • Clarifier cleaned out and rakes repaired • Saddleback reservoir roof repaired 19 March 2007

  19. CBI Technical Report • Damage to the high lift rising main due to April 2001 flood led to 360m length pipe replacement, re-routing away from the river bed and a new extended CP system installed • Water quality after clarification was good despite variable raw water quality and pH control was kept in optimal range • Water consumption is stable at below 12 mega litres per day 19 March 2007

  20. Key challenges • Board faces lethargy from Pella and Pofadder consumers who are reluctant to pay water bills and will not accept even mild tariff increases • Technical evaluation of the installation to be carried out to quantify future long-term capital requirements • Benchmarking against similar sized water boards • Succession planning, average age: 48 years • Develop relationships with other water utility service providers • Integration with BM initiatives: CI, SCM, SHE, etc. 19 March 2007

  21. Key challenges • Communication with the pump station poor in case of emergency while Telkom has been slow in addressing this issue • Recruitment of Board members as civil servants without any compensation • BM mine is targeting reduced water consumption which will reduce revenue generation significantly • Ageing equipment will become more maintenance intensive as time goes on, putting more pressure on tariff increases • Educating the surrounding communities on the operation of the water works 19 March 2007

  22. Key challenges • Set up DWAF office in Springbok to work more closely with the water board • Partnership with the BM mine is beneficial but ultimately not sustainable • Capacity within KM Municipality to manage the pumping station is non-existent • Unawareness of government’s IT strategy, service delivery improvement plan • Board capacity insufficient for possible Gamsberg expansion 19 March 2007

  23. Board service capacity 19 March 2007

  24. Board service capacity 19 March 2007

  25. Pelladrift Water Board 19 March 2007

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