RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Independent Auditor’s Report Internal control deficiencies

31. I considered internal control relevant to my audit of the consolidated and separate financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report.

32. Management did not implement adequate controls to prevent and detect non-compliance with laws and regulations, which resulted in irregular expenditure.

33. Management did not adequately implement consequence management processes, against employees who permitted/ incurred irregular expenditure, as recommended per concluded investigations. Other reports 34. I draw attention to the following engagements conducted by various parties which had, or could have, an impact on the matters reported in the entity’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation. 35. Two agreed-upon procedure engagements were held on the accuracy of the water research levy payable for the periods July 2022 to December 2022 and January 2023 to 30 June 2023. Reports have not yet been issued by the date of this report.

36. Report on agreed-upon procedures performed on compliance with section 13B(1) of the Pension Funds Act 24 of 1956 for the period 1 July 2022 to 30 June 2023. The reports has not yet been issued by the date of this report.

Pretoria

01 November 2023

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