RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023 Notes to the Consolidated Annual Financial Statements

34. Related parties The Group has a related party relationship with its subsidiaries and with its executives and board members. As Rand Water is a state‑controlled entity, it also has a related party relationship with all other entities within the same sphere of government. Unless otherwise disclosed, all transactions with related parties are at arm’s length basis at market related prices.

Transactions with key management personnel

Key management personnel compensations are detailed in the Remuneration Report and total remuneration for the board members and executives are included under staff costs (see note 26 and 27). The remuneration for key management personnel for the year amounts to R78.2 million (2022: R74.3 million).

None of the key management personnel had or has any significant influence within any entity with whom the Group has had significant transactions with.

For the ended 30 June 2022 financial year, the Group recovered from Board members over payments made in previous financial years’ as a result of changes to the approved Board Member’s rates by Department of Water and Sanitation, as at 30 June 2023 recoveries from members which were still outstanding amounted to R174 thousand (2022: R340 thousand and R349 thousand). During the current year following engagements with the Shareholder, the Minister approved the payment of all monies that would have been due to Board members’ prior to the rate changes. As a result the Organisation is in a process of settling with all Board members’ amounts that were recovered amounting to R1 million.

Subsidiaries

Country of incorporation South Africa South Africa

Ownership interest

Rand Water Services (Pty) Ltd

100% 100%

Rand Water Foundation

Rand Water Foundation is a non‑profit company. The company is a special purpose entity as defined, with its sole mandate to carry out Corporate Social Investment (CSI) programmes of Rand Water. The Foundation promotes and supports the delivery of water services to communities within and outside Rand Water’s areas of supply. The Foundation also coordinates, administers and manages Rand Water’s CSI resources by undertaking community development projects in partnership with various donors and relevant stakeholders. Rand Water has committed to funding the Foundation with up to 5% of the entity’s net profit, for the various projects approved by the Board.

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2023

2022 Restated *

The followings transactions were carried out with the subsidiaries:

Transactions with related parties Contribution to subsidiaries

-

-

78 426

88 162

Year‑end balances arising from transactions Payables Investments held on behalf of subsidiary

- - -

- - -

3 550

5 256 4 018

- -

-

288