RAND WATER ANNUAL REPORT 2023

HOW RAND WATER IS GOVERNED

KING IV PRINCIPLE

APPLY AND EXPLAIN

4. The governing body should appreciate that the organisation’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.

The Board has therefore approved strategic pillars key performance indicators (KPIs) that are aligned to an Innovation Driven Risk-based Strategy. Such initiatives are also regularly monitored by the Board and its management structures to ensure that any underperforming areas are highlighted and mitigated prior to the end of each Financial Year.

Refer to “Our Strategy” section of the IAR (page 16).

5. The governing body should ensure that

Rand Water ensures that the quality of reports produced (quarterly and annually) enables stakeholders to make informed decisions. It aims to adhere to the disclosure requirements as required by the JSE, King IV, Water Services Act, Act No. 108 of 1997 and all relevant legislation and codes that Rand Water abides by. Rand Water’s IAR is prepared in line with International Integrated Reporting Council’s Integrated Reporting Framework (IIR). Rand Water’s AFS complies with the International Financial Reporting Standards (IFRS). It is audited by the AGSA to ensure that they represent the correct financial position of the organisation. The organisation has developed a Board Charter that ensures effective functioning of the Board in terms of its role/s and responsibilities. Each Committee of the Board has adopted formal ToRs to guide its mandate and oversight responsibilities. The ToRs of each Committee include a review of strategic institutional policies relevant to the mandate (s) of the Committee(s). Further, management has been given the responsibility of reporting to Board on organisational performance on a regular basis through the submission of quarterly reports. The Board reviews the performance of the organisation on a quarterly basis and submits quarterly performance reports to the Shareholder in line with the requirements of the Annual Shareholders’ Compact entered between Rand Water and the Minister of Water and Sanitation in terms of the PFMA and relevant National Treasury Regulations.

reports issued by the organisation enable stakeholders to make informed assessments of the organisation’s performance, and its short, medium, and long-term prospects.

6. The governing body should serve as the focal point and

custodian of corporate governance in the organisation.

Refer to “How Rand Water is Governed” section of the IAR (page 34).

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