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Provide Bulk Water and Sanitation Services to Improve Quality of Life

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Provide Bulk Water and Sanitation Services to Improve Quality of Life Provide bulk water and sanitation services to improve quality of life and enhance sustainable economic development IMVUTSHANE DAM 1 8.0 PG 57-63 9.0 PG 65-81 10.0 PG 83-93 11.0 PG 95-103 12.0 PG 105-111 13.0 PG 113-197 14.0 PG 199-204 UMGENI WATER • AMANZI PERFORMANCE AGAINST CREATING CONSERVING ENABLING IMPROVING FINANCIAL GRI CONTENT ANNUAL REPORT 2016/2017 SHAREHOLDER VALUE OUR NATURAL OUR PEOPLE RESILIENCY SUSTAINABILITY INDEX 2016/2017 COMPACT RESOURCES “Umgeni Water in numbers – An efficient, innovative and responsible organisation on the move” 410 million 33 million cubic metres of potable water per annum cubic metres (90 Ml/d) of (1 123 Ml/d) provided wastewater to 6 customers treated in 2016/2017 R1 163 million 72% of target water total CAPEX Spend (Parent), of which R503 million went towards infrastructure project projects for rural development milestones were met Financial Viability Umgeni Water maintained positive results in the 1 150 year due to continued sound fi nancial management: Revenue (Group) Surplus for the year Balance sheet Umgeni generated was (Group) was reserves were R2.5 R746 R6.8 Water billion MILLION billion Group employees In 2017 In 2017 In 2017 2 1.0 PG 7 2.0 PG 9-17 3.0 PG 18-21 4.0 PG 22-25 5.0 PG 26-33 6.0 PG 35-48 7.0 PG 51-54 UMGENI WATER • AMANZI ANNUAL REPORT REPORT ORGANISATIONAL MINISTER’S ACCOUNTING CHIEF EXECUTIVE’S CORPORATE STAKEHOLDER 2016/2017 PROFILE PROFILE FOREWORD AUTHORITY’S REPORT GOVERNANCE UNDERSTANDING REPORT AND SUPPORT Vision Leading water utility that enhances value in the provision of bulk water and sanitation services. We strive to be an effectively run, public-oriented and socially accountable water utility, which has its heart and mind, focused on the provision of bulk water services. We will achieve leadership based on our performance and the sustainable value we co-create with our customers and stakeholders and continue to leave a positive legacy in our communities, region and country. Mission Provide innovative, sustainable, effective and affordable bulk water and sanitation services. Our business is the provision of bulk water services – both potable and wastewater - to support government service delivery to the people of South Africa and providing water for life. This includes providing all bulk water services to our customers, facilitating integrated planning in the region, supporting municipalities and contributing to water knowledge that will lead to sustainability from source-tap-source. Strategic Intent Key Partner that enables government to deliver effective and efficient bulk water and sanitation services. Umgeni Water intends to be recognised as a strategic and sustainable partner of government, co-creating value through providing bulk water and sanitation services as a catalyst for local economic development and government’s developmental agenda. Benevolent Intent Provide bulk water and sanitation services to improve quality of life and enhance sustainable economic development. Umgeni Water intends to be recognised as an organisation that has legitimate leadership and cultivates accountability. Through this people-centred approach Umgeni Water will achieve water services delivery. Bulk water services will be provided for both health and economic benefi ts, which contribute to addressing poverty, under-development and inequality. This Annual Report is printed on Hi-Q Matte. Hi-Q Matte is manufactured in accordance with the most stringent environmental protection and sustainable forest development standards. PLEASE RECYCLE 3 8.0 PG 57-63 9.0 PG 65-81 10.0 PG 83-93 11.0 PG 95-103 12.0 PG 105-111 13.0 PG 113-197 14.0 PG 199-204 UMGENI WATER • AMANZI PERFORMANCE AGAINST CREATING CONSERVING ENABLING IMPROVING FINANCIAL GRI CONTENT ANNUAL REPORT 2016/2017 SHAREHOLDER VALUE OUR NATURAL OUR PEOPLE RESILIENCY SUSTAINABILITY INDEX 2016/2017 COMPACT RESOURCES Umgeni Water Operational Area Pongola Volksrust Amajuba WSA KwaZulu-Natal uMkhanyakude WSA Newcastle Vryheid Newcastle WSA Zululand WSA Dundee Glencoe Ulundi uMzinyathi WSA Ladysmith Melmoth uMhlathuze WSA King Cetshwayo WSA uThukela WSA Empangeni Richards Bay Eshowe uMhlathuze Estcourt Greytown Mandeni aMatigulu uMgungundlovu WSA uThukela iLembe WSA Howick uMvoti Pietermaritzburg Tongaat Msunduzi WSA eThekwini WSA uMdloti Richmond Durban uMgeni Harry Gwala WSA uMlazi Ixopo iLovu Scottburgh uMkhomazi Umzinto Indian Ocean uMzimayi Kokstad N Ugu WSA uMthwalume Harding uMzumbe Port Shepstone 0 125 25 50 75 100 uMzimkhulu Margate Kilometres Figure 1: Umgeni Water Operational Area uMtamvuna 4 1.0 PG 7 2.0 PG 9-17 3.0 PG 18-21 4.0 PG 22-25 5.0 PG 26-33 6.0 PG 35-48 7.0 PG 51-54 UMGENI WATER • AMANZI ANNUAL REPORT REPORT ORGANISATIONAL MINISTER’S ACCOUNTING CHIEF EXECUTIVE’S CORPORATE STAKEHOLDER 2016/2017 PROFILE PROFILE FOREWORD AUTHORITY’S REPORT GOVERNANCE UNDERSTANDING REPORT AND SUPPORT Contents 1.0 Report Profi le 7 2.0 Organisational Profi le 9 Minister’s 3.0 Accounting Authority’s 4.0 Foreword 18 Report 22 5.0 Chief Executive’s 6.0 Corporate Report 26 Governance 35 Stakeholder 7.0 Performance against 8.0 Understanding Umgeni Water Strategy and Support 51 and Shareholder Compact Indicators 2016/2017 57 5 8.0 PG 57-63 9.0 PG 65-81 10.0 PG 83-93 11.0 PG 95-103 12.0 PG 105-111 13.0 PG 113-197 14.0 PG 199-204 UMGENI WATER • AMANZI PERFORMANCE AGAINST CREATING CONSERVING ENABLING IMPROVING FINANCIAL GRI CONTENT ANNUAL REPORT 2016/2017 SHAREHOLDER VALUE OUR NATURAL OUR PEOPLE RESILIENCY SUSTAINABILITY INDEX 2016/2017 COMPACT RESOURCES 9.0 Creating Value 65 10.0 Conserving our Product Quality 65 Natural Resources 83 Customer Satisfaction 68 Environmental Sustainability Infrastructure Stability 72 including Water Resources Adequacy 83 Economic Empowerment 78 Community Outreach and Corporate Social Investment (CSI) 80 11.0 Enabling our People 95 12.0 Improving Leadership and Employee Resiliency 105 Development 95 Operational Optimisation 105 Risk Management 108 13.0 Financial 14.0 Global Reporting Sustainability 113 Initiative (GRI) Financial Review 113 Content Index 199 Statement of Accounting Authority Responsibilities and Approval of the Financial Statements 128 Report of the Audit Committee 129 Report of the Auditor-General 130 Accounting Authority Report 135 Remuneration Report 139 Financial Statements 141 Notes to Financial Statements 145 6 1.0 PG 7 2.0 PG 9-17 3.0 PG 18-21 4.0 PG 22-25 5.0 PG 26-33 6.0 PG 35-48 7.0 PG 51-54 UMGENI WATER • AMANZI ANNUAL REPORT REPORT ORGANISATIONAL MINISTER’S ACCOUNTING CHIEF EXECUTIVE’S CORPORATE STAKEHOLDER 2016/2017 PROFILE PROFILE FOREWORD AUTHORITY’S REPORT GOVERNANCE UNDERSTANDING REPORT AND SUPPORT R857 million spent on maintenance over the past fi ve years AMANZIMTOTI WTW 7 8.0 PG 57-63 9.0 PG 65-81 10.0 PG 83-93 11.0 PG 95-103 12.0 PG 105-111 13.0 PG 113-197 14.0 PG 199-204 UMGENI WATER • AMANZI PERFORMANCE AGAINST CREATING CONSERVING ENABLING IMPROVING FINANCIAL GRI CONTENT ANNUAL REPORT 2016/2017 SHAREHOLDER VALUE OUR NATURAL OUR PEOPLE RESILIENCY SUSTAINABILITY INDEX 2016/2017 COMPACT RESOURCES 1.0 Report Profile Umgeni Water’s annual report complies with statutory disclosure report further contains the audited fi nancial statements for requirements of the Public Finance Management Act (Act 1 2016/2017. Over the years, Umgeni Water developed and of 1999) and Water Services Act (Act 108 of 1997), as well as embedded in-house processes for identifying, collecting, relevant regulations. In addition, Umgeni Water’s Annual Report collating, validating and storing information used in managing is signifi cantly aligned to the requirements of King III regarding its performance and continues to enhance these. integrated reporting. Integration is achieved through the entity having in place an integrated strategy and value creation The assurance of the Annual Report for both fi nancial and model based on the balanced scorecard that straddles four performance information is provided by Internal Audit and the sustainability perspectives, together with Umgeni Water ensuring Audit Committee of the Board. In addition, as a state-owned complete alignment with government’s outcomes approach for entity, Umgeni Water is audited by the Auditor-General of performance reporting by State-Owned Entities (SOEs). South Africa for both fi nancial and performance information. This report further contains Standard Disclosures that are Further information on the scope covered by Internal and ‘in accordance with’ the GRI Guidelines – fulfi lling the GRI External Auditors is provided in the Corporate Governance Comprehensive criteria. Information is included in the GRI chapter of this report. In addition to assurance via these Content Index at the end of this report. routes, core business processes, namely water treatment works operations, monitoring programmes and analytical Umgeni Water has prepared annual reports every year since laboratories are externally certifi ed or accredited in accordance its establishment in 1974. This report covers the twelve-month with relevant ISO and other nationally recognised standards. period 1 July 2016 to 30 June 2017. This report also includes information on Umgeni Water subsidiaries. The annual report content is structured to provide suffi cient information to all stakeholders including, customers, regulatory The performance content of this Annual Report shows Umgeni bodies, investors, employees and civil society, regarding Umgeni Water’s progress with meeting predetermined objectives and Water’s annual performance and on-going progress towards performance indicators
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