Portfolio%20Committee%20on%20Water%20and%20Environmental%20Affairs

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SAWS 2008-09 Annual Report presented by Dr
Linda Makuleni (Chief Executive Officer)

• Portfolio Committee on Water and Environmental
  Affairs
• Committee Room 3, 90 Plein Street Building
• 4 November 2009

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Table of Contents

1. Overview
2. Strategic Goals/Key Focus Areas
3. An Overview of Financial Performance
4. Performance Against Targets
5. Challenges/Opportunities
6. Concluding Remarks
7. Questions/Comments

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Overview

• Reporting period coincides with
• 1st year of the new Board appointed 1st April
  2008
• Change in administration (from the then DEAT to
  DWEA)
• Support appreciated from the Shareholder and
  Other Stakeholders, in particular
• SAWS Board, Management and Staff
• The then Ministry and Dept of Environmental
  Affairs Tourism
• The new Ministry and Dept of Water
  Environmental Affairs
• The then Portfolio Committee on Environmental
  Affairs Tourism and
• The new Portfolio Committee on Water and
  Environmental Affairs and
• Other Stakeholders
• Performance/Achievements
• Unqualified Audit Report
• 84 overall customer satisfaction on SAWS
  products and services (Perception Survey
  conducted by an independent service provider)

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Overview (continued)

• Human Capital Management
• Total Staff Profile
• Total staff compliment is 386
• 79 of employees are from the Historically
  Disadvantaged Background
• 35 of the overall figure is female
• Representation of the disabled stands at 2
  fairly spread at different rational categories
• Employment Equity Plan approved
• Human Capital Development initiatives being
  implemented
• Skills Development plan
• Attraction and Retention Strategy
• Succession Planning

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2. Strategic Goals and Objectives
Strategic Goals Objectives
SG1 Ensure financial viability and sustainability To ensure that the Organisation is financially sustainable in the long-term as a going concern by increasing the commercial income, establishing an investment fund subject to Treasury Approval, as well as a research and development fund and securing Government funds for effective delivery of public good and commercial products/services.
SG2 Ensure corporate governance and strategic leadership To manage the Organisation on sound business principles, ensuring compliance with the relevant legislation and adherence to principles of good governance. To take a Meteorological leadership role in SADC Region and the Continent.
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2. Strategic Goals and Objectives (continued)
Strategic Goals Objectives
SG3 Ensure becomes a learning Organisation To ensure that SAWS employees are innovative, knowledgeable and encourages a continuous transformation process by creating a pool of atmospheric scientists, technologists and researchers.
SG4 Create a client-centric Organisation To disseminate reputable weather, climate related environmental products and services that are geared at meeting and exceeding clients specific needs.
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2. Strategic Goals and Objectives (continued)
Strategic Goals Objectives
SG5 Reputable provider of weather, climate related environmental products and services To collect, process, research and develop reputable services and products using cutting edge technology and scientific excellence.
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3. An Overview of Financial Performance
(continued)

• An Overview of the Audit Report
• The Auditor-General (AG) reported that
• Opinion
• The Financial Statements present fairly, in all
  material respects, the financial position of SAWS
  as at 31 March 2009
• Without qualifying his Opinion, attention is
  drawn to the following matters, among others
• The basis of accounting as reflected in note 1 of
  the Financial Statements
• Irregular expenditure to the amount of R1,1
  million incurred, as disclosed in note 23 to the
  Financial Statements

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3. An Overview of Financial Performance
(continued)

• An Overview of the Management Report
• AG believes that the evidence obtained indicates
  that governance policies and practices operated
  effectively and appropriately during the year
  under review.
• There were no significant findings.
• AG noted managements disclosure of the irregular
  expenditure.
• Other important matters include strengthening the
  Supply Chain Management (SCM) Policy. The SCM
  Policy has already been revised, approved by the
  SAWS EXCO and will be tabled at the November
  Board meeting for approval.
• It is worth noting that none of the findings had
  been raised in previous years.

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3. An Overview of Financial Performance
(continued)

• An Overview of the Audit Risk Committee
• Committee Structure and Charter reviewed in line
  with governance best practices
• Internal and External Audit Plans reviewed and
  approved
• Risk management processes reviewed, enhanced and
  monitored on an ongoing basis
• Reviewed
• Audited Annual Financial Statements included in
  the Annual Report
• Auditor-Generals Management Letter and response
  by SAWS Management
• Changes in the accounting Policies and Practices
  and
• Significant adjustments resulting from the audit
• No significant or material non-compliance issues
  were noted and/or reported other than
  Managements disclosure of the irregular
  expenditure
• Committee satisfied with the effectiveness of
  internal controls

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3. An Overview of Financial Performance
(continued)

• Accounting Policies
• Financial Statements prepared in accordance with
  GAAP, including any
• interpretations of such statements issued by the
  Accounting Practices Board.
• Financial Statements in conformity with GAAP and
  GRAP which require the
• use of certain financial statements accounting
  estimates and also that Management exercises its
  judgment in the process of applying the Entitys
  accounting policies.

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3. An Overview of Financial Performance
(continued)

• Income Statement

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3. An Overview of Financial Performance
(continued)
REVENUE 2008/9
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3. An Overview of Financial Performance
(continued)
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3. An Overview of Financial Performance
(continued)
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3. An Overview of Financial Performance
(continued)

• Key Employee Cost Drivers
• In the 2006/7 financial year, the Organisational
  structure was re-aligned to support the SAWS
  strategic direction enhancing the placement of
  employees with expertise at appropriate levels,
  which had a financial impact of approximately
  R3.1 million
• In the 2007/8 financial year, the Organisation
  augmented its critical scarce skills with 53
  appointments of which 39 were in scientific and
  technical fields.
• Had all 53 been appointed at the beginning of the
  financial year, the annual impact would have been
  R5.6 million. However the appointments were
  spread throughout the year, hence the minimal
  increase in the 2007/8 financial year.
• 2008/9 financial year
• The full impact of the above appointments was
  felt on the 2008/9 financial year, resulting in
  an increase to cost to company of approximately
  R5.6 million before factoring the 10 increment
• As part of the attraction and retention strategy
  SAWS also paid R5.2 million in respect of
  critical scarce skills to qualifying employees
  in the scientific and technical fields

2006/7 2007/8 2008/9
Annual Increments 6 6.7 10
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3. An Overview of Financial Performance
(continued)
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3. An Overview of Financial Performance
(continued)
STATEMENT OF CHANGES IN NET ASSETS
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3. An Overview of Financial Performance
(continued)
CASH FLOW STATEMENT
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Performance Against Targets
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4. Performance Against Targets
KPA1 Ensuring financial viability and sustainability
Growth of commercial revenue 93 aviation income achieved under recovery due to late promulgation of aviation tariffs and liquidation of certain Airlines (e.g. Nationwide) Growth of R D Funding - R3.6m achieved Effective utilisation of the Grant 97 of budget spent in line with the acceptable variance of 10 Increase in operating expenses kept at 5.5 Decrease in other operating expenses by 9 (from R66.34m to R60.40m) Non-financial revenue growth of 49.3 (from R7.52m R11.23m) compared to prior year
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4. Performance Against Targets (continued)
KPA2 Ensuring corporate governance leadership sustainability
Compliance with legislative and governance frameworks, hence an unqualified Audit Report Compliance with national and international obligations and leadership role Acknowledgment of SAWS leadership role in the implementation of Severe Weather Forecast Demonstration Project (SWFDP) SAWS appointment as both Meteorological Association of Southern Africa (MASA) Chair and Secretariat SAWS role as WMOs Regional Specialised Meteorological Centre Publication of the 2008/09 Meteorological Authority Annual Report in compliance with ICAO requirements/standards Effective Stakeholder Management 3 CSI Programmes implemented International Relations Framework developed and implemented
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3. Performance Against Targets (continued)
KPA2 Ensuring corporate governance leadership sustainability
SAWS governance structures and frameworks reviewed and enhanced where appropriate Internal controls reviewed and enhanced (through review of Policies and risk management processes)
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3. Performance Against Targets (continued)
KPA3 Ensuring SAWS becomes a learning Organisation
Growth development of critical scarce skills Accreditation of SAWS Training Centre by TETA SAWS Bursary Scheme with 40 bursaries awarded (R2.4 m) Bursaries targeted mostly to PDIs Talent Management Development and implementation of Attraction and Retention Strategy Implementation of the Performance Management System Effective knowledge management Succession Policy and Plan developed and implemented Strategic Partnerships established with academic institutions (e.g. UNIZUL, Fort Hare and UP) Effective Organisational transformation Employment Equity Plan approved Learnership Programme ( 8 appointed)
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3. Performance Against Targets (continued)
KPA4 Creating a client-centric Organisation
Investigation of appropriate financial model for SAWS Funding Model developed and approved by the Board (and submitted to Shareholder) Development and dissemination of client specific products services Memoranda of Understanding concluded with The then Departments of Provincial Local Government (DPLG), Environmental Affairs and Tourism (DEAT) and Water Affairs Forestry (DWAF) Agricultural Research Council SANERI
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3. Performance Against Targets (continued)
KPA5 Ensuring that SAWS becomes a reputable provider of weather, climate and related environmental products and services
Infrastructure upgrade (National Weather Radar Network) Installation of the South African Air Quality Information System Participated in the 2nd phase of the Queensland Cloud Seeding Research Project in Australia (rainfall enhancement techniques) Research to improve Nowcasting and Flash-flood Guidance System and the use of Numerical Weather Prediction documentation of weather-related indigenous knowledge Severe Weather Forecast Demonstration extended to SADC Customer-specific products developed Automatic Weather Stations (for small Airports) Aviation Website Web portals for specific users Road Hazard Warning System
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Challenges/Opportunities
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5. Challenges/Opportunities (continued)
AVIATION VOLUMES OVER THE YEARS
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5. Challenges/Opportunities (continued)

• MTEF Submission

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7. Concluding Remarks

• SAWS enlists your continued support in pursuing
  the following initiatives
• Securing an appropriate level of Government
  funding as per the funding model
• Enhancement of aviation income recovery through
  the regulatory process.
• The appropriate level of funding would enable
  SAWS to focus more on
• Commercialisation of activities
• Modernisation of infrastructure
• Human Capital Development
• Regional cooperation
• Climate change and variability

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8. Questions/Comments