Annual Report 2013 - 2014
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Annual Report 2013 - 2014 Sustaining the Source and Flow of Life Forever Sedibeng Water - Annual Report 2013-2014 TABLE OF CONTENTS Corporate Profile 2 Statement of Capability 3 Area of Supply 4 Chairperson’s Report 5 Board Members 7 Chief Executive’s Report 8 Management Team 12 Corporate Governance 13 Corporate Services 19 • Corporate Services Review 20 • Finance 23 • Human Resources 27 • Marketing and Communication 34 • Scientific Services 40 • Safety, Health and Environment 54 Operations 61 • Operations Directorate Review 62 • New Business Development 65 • Northern Cape Region 68 • North West Region 75 • Free State Region 83 Financials 90 • Statement of the Board’s Responsibility 91 • Audit and Risk Committee’s Report 92 • Environmental Protection and Management 93 • Annual Performance Report 95 • Independent Auditor’s Report 98 • Statement of Comprehensive Income 100 • Statement of Financial Position 101 • Statement of Changes in Equity 102 • Statement of Cash Flows 103 • Significant Accounting Policies 104 • Notes to the Financial Statements 116 Sustaining the Source and Flow of Life Forever 1 CORPORATE PROFILE Introduction The organisation currently services an operational Sedibeng Water was established on 1 June 1979. area spanning more than 86 000 square kilometres It serviced the Free State Goldfields and parts of across three (3) provinces: Free State, North West the former Western Transvaal. In 1996, Sedibeng and Northern Cape. This makes Sedibeng Water one Water extended its operational area to the North of the largest water utilities in the country. West Province. Since then, Sedibeng Water grew to include the Vaal Gamagara water scheme in the Vision and Mission Northern Cape Province. Sedibeng Water is driven by a vision of Excellence in Water Services Provision. Sedibeng Water has recently expanded its operational area even further with the incorporation Sedibeng Water’s mission statement underpins this of the Namakwa Water Board. As a result, Sedibeng excellence by focusing on: Water now serves the Nama Khoi Local Municipality • The appropriate treatment of wastewater and (Steinkopf, Okiep, Concordia, Carolusberg, supply of potable water; Nababeep, and Springbok) and the De Beers • Ensuring viability and sustainability; Namaqua mines in the arid north-western part of the • Creating an environment that is conducive to the Northern Cape. growth and retention of skills; • Providing effective and efficient communications; and • Ensuring compliance. 2 Sedibeng Water - Annual Report 2013-2014 STATEMENT OF CAPABILITY Technical Services Water Purification • Evaluation and planning of systems; • Chemical analysis; • Project planning and management; • Bacteriological analysis; • Refurbishment and upgrade of existing • Process upgrading; infrastructure; and • Process problem solving and control; • Implementing agency. • Process optimisation; and • Consultancy. Social Services and Community Involvement • Capacity building and training; and Training and Development Services • Community involvement in water and sanitation • Water purification and distribution: facilitation. - Theoretical and practical aspects of the operation and maintenance of different unit Wastewater Treatment processes; • Chemical and bacteriological analysis; - Process optimisation; • Chemical treatment and process upgrading; - Comprehensive filter evaluation; • Process problem solving and control; - Sampling procedures and techniques; • Process optimisation; and - Management of water quality in the network; • Consultancy. and - Reservoir cleaning. Water Quality Management in Network and • Wastewater treatment: Environmental Services - Plant optimisation; and • Chemical analysis; - Theory of wastewater treatment. • Bacteriological analysis; • Establishment of laboratories: • Toxicity testing; and - Implementation of a quality management • Consultancy (waste disposal and pollution system; and control). - Performing of chemical and bacteriological analyses on drinking water and wastewater. Water and Wastewater Management Services • Industrial cost-recovery; • Bulk water treatment and distribution; • Pollution control; and • Retail water services; • Student training programmes. • Bulk sanitation management; and • Water metering and billing services. Operations and Maintenance Services • Optimisation of operational and infrastructure efficiencies; and • Infrastructure maintenance and support services. Sustaining the Source and Flow of Life Forever 3 AREA OF SUPPLY 4 Sedibeng Water - Annual Report 2013-2014 CHAIRPERSON’S REPORT the organisation. The past financial year is no exception, as will be seen from this report. Since the ensuing report by the Chief Executive of Sedibeng Water will focus mainly on summarising operational achievements during the past financial year, I will now briefly highlight only a few accomplishments and developments that impact on the longer term viability, sustainability and growth of the organisation. The Scientific Services Laboratory of Sedibeng Water has been accredited by the South African National Accreditation System (SANAS) since 2002. This laboratory was subjected to an 18 month SANAS surveillance audit during the 2013/2014 financial year. The laboratory was successful in M.D. Dikoko maintaining its accreditation. This attests to the Chairperson high standards of scientific analysis performed by this facility. It is an honour and privilege for me to present Sedibeng Water’s Annual Report for the 2013/2014 During the year under review, Sedibeng Water financial year. embarked on a project for the construction of a quality control laboractory at the Vaal Gamagara Apart from setting strategic objectives, implementing Water Treatment Plant. Plans for the construction of Risk Management controls and monitoring the new laboratory were approved and the building performance, the Board also has to provide is due for completion during the 2014/2015 financial leadership and render a corporate environment year. This new facility will make a significant conducive to the growth, stability and sustainability contribution towards improving water quality of the organisation. These responsibilities were management in the area. executed in a transparent manner in adherence to the principles detailed in the King III Report. The In an effort to expand its research efforts regarding Board is proud of the fact that Sedibeng Water has operational issues of major concern, Sedibeng once again received an unqualified audit report for Water signed a contract with the Department of the year under review. Water Utilisation at the University of Pretoria to establish and fund a Research Chair in Water Since its establishment in 1978, Sedibeng Water Utilisation Engineering. Research that this Chair has successfully positioned itself as a reliable and will initially conduct relates to the declining water reputable water service provider serving a large quality in source water treated at the various water geographical area that spans over three provinces, treatment works managed by Sedibeng Water; namely the Free State, North West and Northern the development of a flow model to be used in our Cape. Sedibeng Water is renowned for its high distribution systems in order to calculate retention standard of water services delivery and this has times; and the removal of nitrates in the water of our been achieved through the dedication and hard different wastewater treatment works. work of both Management and all employees of Sustaining the Source and Flow of Life Forever 5 During the year under review, Sedibeng Water Subsequent to the 2013/2014 financial year, there was able to successfully maintain its already are developments in the Institutional Reform and high levels of customer satisfaction. A scientific Realignment Project (IRR) that affect Sedibeng customer satisfaction survey was undertaken by an Water’s area of operation. The Minister of the independent research company amongst Sedibeng Department of Water and Sanitation issued a Water’s retail and bulk customers. A stratified directive instructing Sedibeng Water to incorporate and representative sample was drawn from the disestablished water boards of Pelladrift in the households in the Greater Taung, GaSegonyana Northern Cape Province and Botshelo in the North and Phokwane areas. Structured interviews West Province. The outcome of the disestablishment with these retail customers were conducted by process was not finalised at the end of the financial specially trained fieldworkers, while telephonic year under review. interviews were conducted with officials from mines and municipalities representing bulk customers. In conclusion, on behalf of the Board I wish to thank Statistical analysis using various customer service the Management and all employees of Sedibeng indicators established that Sedibeng Water currently Water for their hard work and dedication throughout maintains a customer satisfaction level of 80.9% the past financial year. Without the contributions amongst its retail customers and 78.5% amongst its of our employees, the achievements that we have bulk customers. It must be noted that maintaining realised would not have been possible, and therefore these high levels of overall customer satisfaction I thank you especially for your selfless dedication given the operational demands and socio-economic towards the organisation. It is also evident that challenges characteristic of the water services the Chief Executive of Sedibeng Water, Mr. R.T. environment, constitutes a noteworthy