Ms. A Raphela
GM: Finance

Financial Accounting

The unit main Functions are financial administration, Financial Accounting and reporting. The objectives of this unit are the following:

• Sound financial reporting
• Effective expenditure and revenue management
• Statutory compliance with PFMA,MFMA, Treasury Regulations, Water Services Act, King codes and Good Corporate Governance
• Design, implementation and review of policies and procedures.

The department is driven by well experienced and qualified personnel in making sure that the above objectives are met, debtors collection are reduced to be within the legislated requirements, ensuring sound internal controls environment, acquired information systems as well as unqualified Audit amongst others.

The department is facing challenges such as directives to reduce tariff increases and customer resistance and bulk water contract of a retail nature where farmlands are subdivided to residential plots. However, the department managed to come up with below mentioned improvement plans to overcome some of these challenges:

• Transferring of retail customers to the Local Municipalities
• Centralization of Procurement Department which will enable us to control all activities
• Review of internal  business process to align them with the strategic goals of Magalies Water
• Improve the payment period for creditors through strengthening of controls
• Review and improvement of the internal policies procedures and rates
• Creating awareness to the existence of internal policies and applicable legislation

Management Accounting

This section mainly focuses on budgeting, co-ordination, evaluation of inputs and planning assumptions and alignment of budgeting to strategic objectives. Tariff setting, provision of financial information for management decision making purposes and financial evaluations among the areas of this unit. Treasury Management, ensuring that investments are made in such a manner that the returns are optimized among others, rests within the ambits of this units. As an entity of state, shareholder reporting in terms of statutory requirements and set shareholder guidelines are also observed.

This department managed to achieve the following:

• Involvement of cost centre managers during the budget setting process.
• Quarterly reporting for the purpose of the department of Water Affairs.
• Implementation of tariff setting policy and methodology, consultations and intergovernmental level and with the municipal customers during the tariff setting process

Supply Chain Management

Is ensuring that Measurements on Black Economic Empowerment spending and Demand Management is put in place. Supply chain ensures that:

• A need assessment to ensure that goods or services are acquired in order to deliver the agreed service
• Specifications are precisely determined
• Requirements are linked to the budget and
• The supplying industry has been analysed. This phase will bring the supply chain practitioner close to the end user, to ensure that the value for money is achieved.

Acquisition Management: Functions are to:

• Decide on the manner in which the market will be approached;
• Establish the total cost of ownership of a particular type of asset
• Ensure that bid documentation is complete, including the evaluation criteria
• Evaluate bids in accordance with published criteria; and
• Ensure that proper contract documents are signed

Procurement Projects

• The setting of inventory levels
• Receiving and distribution of material
• The review of vendor performance

Supply Chain Performance: This is a monitoring process, undertaking a retrospective analysis to determine whether the proper processes have been followed and whether the desired objectives were achieved.

The supply chain management has managed to establish a supplier database, procurement of systems and enhancement of human resources.