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2019/20 to 2023/24 STRATEGY/ CORPORATE PLAN 2019/20 to 2023/24 Prepared in accordance with section 40 of the Water Services Act 1997 and the National Treasury Guideline Framework for Corporate Planning and Shareholder’s Compact September 2002, source www.treasury.gov.za Table of Contents Statement by the Chairperson ............................................................................................................. 7 Statement by the Chief Executive ........................................................................................................ 9 Official Sign Off .................................................................................................................................. 11 1. Introduction ............................................................................................................................... 12 2. Purpose of the Public Entity ...................................................................................................... 13 3. Operating Principles ................................................................................................................. 14 4. Environmental Scan.................................................................................................................. 18 5 Strategy .................................................................................................................................... 25 6 Operating Model ....................................................................................................................... 28 7. Key Performance Areas ............................................................................................................ 42 8. Outcomes by Major Programme with Accountability .................................................................. 46 9. Financial Plan ............................................................................................................................ 48 10. Tariff Management and Consultation .......................................................................................... 55 11. Risk Management Plan ............................................................................................................. 57 12. Materiality and Significance Framework.................................................................................... 63 13. Fraud Prevention Plan .............................................................................................................. 64 14. Business Continuity Management............................................................................................. 65 15. Supply Chain Management Plan............................................................................................... 66 16. Records Management Plan ...................................................................................................... 67 17. Human Resources Plan ............................................................................................................. 68 18. Bulk Potable Water Services Plan ............................................................................................ 73 20. Water Conservation and Demand Management ....................................................................... 82 21. Corporate Social Investment ..................................................................................................... 82 22. Key Performance Indicators and Targets .................................................................................. 82 23. Ministerial Directives ................................................................................................................. 91 24. Self - Appraisal of Performance ................................................................................................ 91 25. Statement of Financial Viability ................................................................................................. 93 26. Bank Accounts.......................................................................................................................... 99 27. Declaration ............................................................................................................................. 100 28. List of Abbreviations ............................................................................................................... 101 Magalies Water Corporate Plan - 2019/2020 to 2023/24 Page 2 of 101 List of Tables Table 1: Key Customers- Water Service Authorities ............................................................ 16 Table 2: Other Major Customers .......................................................................................... 16 Table 3: The Macro Operating Environment ........................................................................ 19 Table 4: Strengths, Weaknesses, Opportunities and Threats Matrix .................................... 23 Table 5: Alignment of the Government<>SDG Outcomes<>Magalies Water Strategic Objectives ....................................................................................................... 27 Table 6: Magalies Water Board Members (2014 to 2019) .................................................... 33 Table 7: Compliance Reporting Schedule ............................................................................ 38 Table 8: Stakeholder Segmentation and Service Design Strategy ....................................... 40 Table 9: SANS 241:2015 Guide to Water Quality Standards ............................................... 42 Table 10: Levels of Water Losses - Tolerance Limits ........................................................... 42 Table 11: Incidents Tolerance Levels................................................................................... 43 Table 12: Sustainability Ratios ............................................................................................. 43 Table 13: Capital Projects and Budgets ............................................................................... 44 Table 14: Job Creation and Youth Accord - Decent Employment Capacitation .................... 45 Table 15: Assumptions ........................................................................................................ 48 Table 16: Projected Profit/ Loss and Other Income .............................................................. 49 Table 17: Financial Projections ............................................................................................ 50 Table 18: Cash Flow ............................................................................................................ 51 Table 19: Capital Expenditure 5 - Year Projections .............................................................. 52 Table 20: Financial Ratios' Projections ................................................................................ 54 Table 21: Tariffs' Projections ................................................................................................ 55 Table 22: Risk Management (Including Treasury Risks), Audit & Governance ..................... 58 Table 23: Personnel Profile by Levels, Gender and Race .................................................... 69 Table 24: Numbers on the Approved Structure .................................................................... 70 Table 25: Capacity Per Water Treatment Plant .................................................................... 73 Table 26: Raw Water related Challenges ............................................................................. 74 Table 27: Compliance Limits ................................................................................................ 75 Table 28: Description of Projected Demand ......................................................................... 75 Table 29: BSA Expiry Timelines ........................................................................................... 79 Table 30: Greenhouse Effect Management Guide ............................................................... 81 Table 31: Key Performance Indicators and Targets-Magalies Water's Adapted Version ...... 83 Magalies Water Corporate Plan - 2019/2020 to 2023/24 Page 3 of 101 Table 32: Self-Appraisal as at Q3 ........................................................................................ 91 Table of Figures Figure 1: Our Values .............................................................................................................. 5 Figure 2: Summary of Cultural Behaviours at Magalies Water ............................................... 6 Figure 3: Magalies Water Service Area Map ........................................................................ 15 Figure 4: Structure ............................................................................................................... 35 Figure 5: Infrastructure Expansions Cluster Layout - Future & Long Term Master Plan ....... 76 Figure 6: Moretele South Schematic Representation ........................................................... 77 Magalies Water Corporate Plan - 2019/2020 to 2023/24 Page 4 of 101 Vision “To be the leading provider of quality water services in South Africa” Mission Magalies Water Board provides (bulk) water services to Water Services Authorities, Water Services Institutions and other users to positively impact the quality of life and economic growth for communities in our areas of operation. Strategic Intent The Strategic Intent of Magalies Water is to meet its Mandate of sustainable water provision and this
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