PRESENTATION TITLE Presented by: Name Surname

Part 1: overview of non-financial performance 4<br>

Performance indicators<br>

Performance indicators - Continued<br>

Performance indicators - Continued<br>

Performance indicators - Continued<br>

Performance indicators - Continued<br>

Explanatory notes 10<br>

Part 2: overview of financial performance FINANCIAL PERFORMANCE REVIEW
Financial position review
Overview of the audit report and action plan 11<br>

12<br>

Variances – Financial Performance Revenue increased by 15% for the year due to a combination of water volume (5%) and tariff increases
Operating expenditure remained in line with inflation<br>

14<br>

Variances - Financial Position Cash (& equivalents) and Investments moved proportionately as the non working capital portion of cash investments were reclassified as long term assets. Investments also increased from interest capitalised
Trade and other debtors increased by 35 % due to the 15% increase in revenue and an increase in 139% for the DWS Clanwilliam Project
Inventory increased substantially due to the reclassification of maintenance and emergency spares from PPE to inventory to better reflect the nature and use of the items.
Trade payables increased by 97% due to a creditor with an annual invoice that was received late from the supplier. Also, amounts received in advance increased substantially as the capital levies has been included as “Receipts in advance” until it is used in the capital expenditure programme.<br>

Ratios Liquidity
The current ratio is 1.7 : 1

Cash flow from operations
The cash and cash equivalent at the end of the year amounted to R 4 million

Return on assets
The ratio on return on assets is 4%.

Debtor days in sales
The debtors days are 48 days.

Creditors days
The creditors days are 50 days.
This is due to a large creditor with an annual invoice that was not yet paid at year end due to the invoice received late from the supplier. 16<br>

Notes to the financial statements 17 The financial statements have been prepared in accordance with International Financial Reporting Standards and relevant guidelines specified / issued by the National Treasury.<br>

Irregular expenditure Analysis: 18<br>

Contingent liabilities and assets 19<br>

OVERVIEW OF audit report 20<br>

Audit report The audit report of Overberg Water is unqualified.
The only emphasis of matter is the basis of preparation which is IFRS and not GRAP<br>

Performance audit matters reported The effectiveness of internal control matters and risk assessment could not be measured because the entity did not establish an internal audit function<br>

Compliance with legislation The audit committee did not review the entity’s compliance with legal & regulatory provisions
The accounting authority did not ensure that an internal audit function was established
A fair, equitable, transparent and competitive procurement process was not used in all cases.
PPPFA was not applied for all quotations<br>

Internal control All processes did not have documented and approved internal policies & procedures to address the risks and regulations
The accounting authority did not ensure an effective, efficient and transparent system of internal control
Compliance with laws & regulations was not monitored
Governance : no internal audit<br>

Action plan 25<br>

End 26<br>