RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Board Report 4. Compliance to the Public Finance Management Act (PFMA) (Continued) Management is in the process of implementing relevant consequence management against individuals responsible for the transgressions. Rand Water has in the current financial year of review, experienced a significant maturity in its overall compliance environment. This was predominately influenced by factors, amongst others, the implementation of the revised organisational compliance business model.

Various initiatives were implemented during the current financial year including but not limited to: • Enhancement and strengthening of existing Combined Assurance Forum; • Embedding of the Compliance Regulatory Framework; • Awareness on regulatory changes to ensure alignment to legislative requirements; • Strengthening of compliance environment knowledge; • Strengthening and monitoring of internal control to high‑risk business activities; • Submission of condonation requests to the relevant authority; and • Submission of uncondoned matters to Board for removal.

The Board has re‑affirmed its policy statement on mechanisms designed to detect and prevent irregular expenditure in accordance with established Group policies and frameworks.

The identified items have been disclosed in Note 40 to the consolidated annual financial statements.

4.1 Preferential procurement

In the current financial year, the Group’s Total Measured Procurement Spend (TMPS) was R3 935 million (2022: R3 944 milion) with a B‑BBEE recognition of 115.19%.

Rand Water’s B-BBEE rating was unconfirmed in the year under review, although the verification process was underway.

Preferential procurement

Unit of Measure

2023 Actual

2022 Actual

B‑BBEE recognition of TMPS

% of TMPS

115.1%

117.9%

159