e r 2 - Umgeni Water

Chapter| Materiality and significance frameworkFurther/Specific Requirement(PFMA section 55 (2) (a))wasteful expenditure;(iii) any losses recovered or written off;(iv) any financial assistance receivedfrom the state and commitmentsmade by the state on its behalf; and(v) any other matters that may beprescribed.UW Response:Quantitativefruitless, wastefulexpenditure: Fulldisclosure(ii) Full disclosure(iii) Full disclosure(iv) Full disclosureUW Response: Qualitativeshowing the condonement of thatexpenditure.3. UW Response to Information to be submitted by Accounting Authority RequirementGeneral/Principal Requirement (PFMA section 54)Before a public entity concludes any of the following transactions, the accounting authority for the publicentity must promptly and in writing inform the relevant treasury of the transaction and submit relevantparticulars of the transaction to its executive authority for approval of the transaction:Further/Specific Requirement(PFMA section 54 (2))(b) Participation in a significantpartnership, trust,unincorporated joint venture orsimilar arrangement.(c) Acquisition or disposal of asignificant shareholding in acompany.(d) Acquisition or disposal of asignificant asset.(e) Commencement or cessationof a significant business activity.UW Response: QuantitativeQualitative aspect is morerelevantQualitative aspect is morerelevantQualitative aspect is morerelevantQualitative aspect is morerelevantUW Response: QualitativeAny participation, outside of theapproved strategic plan andbudget.Any acquisition or disposal,outside of the approved strategicplan and budget.1. Any asset that would increaseor decrease the overalloperational functions of UW,outside of the approved strategicplan and budget.2. Disposal of the major part ofthe assets of UW.Any business activity that wouldincrease or decrease the overalloperational functions of UW,outside of the approved strategicplan and budget.Page 134 Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016