Guideline document that links Water Resource Management functions

Guideline document that links Water Resource Management functions between Main Account and Water Trading Entity Finance Task Team 12 June 2013

Contents Purpose Introduction Challenges on Functions Proposed Solutions Progress on Functions Task Team

Purpose • To give feedback on the progress made on WTE 1 functions (segregation of functions between Main and Trading) draft memorandum 3

Introduction • • • Currently there is no clear segregation of functions performed between Main and Trading account. This has impacted negatively the financial system configuration and financial reporting. This process aim at segregation of functions performed between Main and Trading account. The process is only on WTE 1 functions and those that might be confused with Main account functions and it is not about unpacking Main account functions. The proposed function as reflected on the footnotes and table are based on the existing functions as they appear on the second revision of existing pricing strategy. For a valid draft document all subject matter expects and users should be consulted for their inputs. Then the approval process will follow. 4

Challenges of functions on budget process • The challenges are that: • • There is no budget guidelines or checklists (except the approved Pricing Strategy) Functions not configured correctly on SAP system and structure Monthly report excludes functions, but budget uploading process includes them. The budget template not addressing all the budgeting needs e. g. functions (budget planning)

Challenges of functions on Price Setting Process • The challenges of pricing process Tariffs are set per functions however reporting is not per functions No operating rules exists for seed funding versus tariffs calculation and augmentation fund Description or Naming of functions used for tariff calculation Presenting budget per functions when consulting with water users but no actual expenditure.

Proposed Solution: 1. Approved Budget Guidelines outlining the applicable functions to WTA 1. 2. Revising – SCOA as per the reviewed functions. 3. Standardisation of processes 4. Training of Staff on Pricing policy and Budgeting processes 5. Clear segregation of Functions between MAIN & TRADING accounts 6. Seed funding operating rules to be developed. 7. To consult all WTE 1 and Main account affected stakeholders for their inputs and buy-in. 8. Workshop or Training to be held with regions on approved functions 9. To use the reviewed functions as an inputs to Pricing Strategy once approved. 10. No increase in budget for the following year if region has under spent

Progress made on: WMA Functions 1. A draft discussion document (memo) based on the existing functions as they are stipulated on the current approved Pricing strategy has been established. 2. Consultation made • Department of environmental Affairs: Natural Resource Management Programme • Other components consulted are § RDM § CME § Dam Safety Office § Water Resources Information Management § Spatial & land Information Management • 9 Regions • BOCMA 2. The intention is to also use the same document as an input into the pricing strategy review process.

DRAFT PROPOSED FUNCTIONS Function / Activities Trading Account Abstraction activities Main Account Waste discharge activities Abstraction activities Waste discharge activities 1. Catchment management strategy and Water resources planning Resource studies, investigations and integrated strategy development 2. Resource directed measures Implement programmes to monitor Resource Quality Objectives (RQOs); Implement source-directed controls to achieve resource quality objectives Report against the achievement of the Class and RQOs; Report on the water balance per catchment (i. e. water available for allocation after consideration of ecological requirements) Establish a system for classifying water resources Determine the Class of water resources Determine the Resource Quality Objectives of water resources Reserve determination of water resources Develop & implement programmes to audit achievement of resource directed measures Develop guidelines to operationalise resource directed measures 3. Water use authorization Registration of water use Validation and verification of registered water use Allocation plans Abstraction & stream flow reduction activities Authorization 4. Control and enforcement of water use Water quality management plan Waste discharge activities Authorization Control Monitoring and enforcement of Water Use Abstraction & stream flow reduction activities control Dam safety control (private dams) Institutional establishment Control Monitoring and enforcement of Water Management Institutions Waste discharge control 9

Function / Activities Trading Account DRAFT PROPOSED FUNCTIONS Abstraction activities Main Account Waste discharge activities 5. Disaster management Planning and management of disaster (Administration) 6. Water resources management programmes Abstraction activities Integrated Water resources programmes Implementing of Water management strategies (e. g. Water conservation and demand management) Pollution incident planning and response (management) Waste discharge activities Fund disaster process and claim from NT Development of Water management strategies [ Water conservation and demand management, cleaner technology, dense settlements, waste discharge strategies] Implementing of Water management strategies (e. g. cleaner technology, dense settlements, waste discharge strategies) 7. Water related institutional Development (Stakeholder Management empowerment) Stakeholder participation, empowerment, institutional development & coordination of activities o Establishment and regulation of water management institutions (e. g. WUA's) o. Stakeholder consultations o. Capacity and Empowerment of stakeholders 8. Water weed control Aquatic Weeds Control 10

Function / Activities DRAFT PROPOSED FUNCTIONS Trading Account Abstraction activities Main Account Waste discharge activities Abstraction activities 9. Terrestrial Invasive Alien Plant (IAP) Planning and Control of invasive alien plants with acknowledged negative impacts on water resources; e. g. riparian zones, mountain catchment areas, wetlands and in areas where there could be an impact on aquifers. 10. Geo-hydrology and Groundwater and Surface water Monitorings compiling of maps and yield information Extending and maintaining the hydrological database & compilation of information 11. Administration Overheads & Waste discharge activities Admin & overheads for regional office or CMA Monitoring Programmes on National Scale Ground water Explorations and feasibility studies

Task Team WTE 1 Finance Sello Machitje, Lindela Hlatshwayo, (Budget Planning & Pricing) Nicholus Raditlou (Budget Reporting & Monitoring) Institutional Oversight Kenneth Masindi (WMIG) Bofilatos Eustathia (WMIG) Regional Coordination & Management Mncedisi Doda (RCM – Water Sector Budget Coordination) Rachalet Cronje (Integrated Water Resource Management Support) Masia Mgwambani (Integrated Water Resource Management Support)

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