Rand Water | Integrated Annual Report 2025

PFMA COMPLIANCE REPORT National Treasury Instruction No. 4 of 2022/23: PFMA Compliance and Reporting Framework, effective 3 January 2023, sets out updated principles and compliance reporting requirements for the treatment of Irregular, Fruitless, and Wasteful Expenditure, as well as Supply Chain Management reporting. In line with the Public Finance Management Act (PFMA), 1999 (as amended), and the relevant frameworks, institutions are required to disclose the following information in their Integrated Annual Reports.

PFMA COMPLIANCE REPOR T Irregular Expenditure Reconciliation of Irregular Expenditure

2025 R’000

2024 R’000

Description

Opening balance Prior Period Errors

3 439 016

3 720 164

46 649

(3 957)

As restated

3 485 664 1 373 861

3 716 207

Add: Irregular expenditure confirmed

741 214 93 875

Irregular Expenditure that was under assessment in 2023/2024 Irregular Expenditure that relates to 2023/24 and identified in 2024/25

- - - - - -

2 725

Less: Irregular expenditure condoned

-

Less: Irregular expenditure not condoned and removed

(47 )

(1 115 006)

Less: Irregular expenditure cleared Less: Irregular expenditure recoverable

- - -

Less: Irregular expenditure not recovered and written off

Closing balance

4 859 479

3 439 016

The prior period amount relate to adjustments made on the previously reported irregular expenditure.

Reconciling notes to the annual financial statement disclosure

2025 R’000

2024 R’000 93 875

Description

Irregular Expenditure that was under assessment in 2023/2024 Irregular Expenditure that relates to 2023/24 and identified in 2024/25

- -

2 725

Irregular Expenditure for the current year Irregular Expenditure incurred in the current year Additional expenditure on multi-year contracts

1 373 861

741 214 305 120 436 094 837 814

4 207

1 369 654 1 373 861

Total

Details of current and previous year irregular expenditure (under assessment, determination, and investigation

2025 R’000

2024 R’000

Description

Irregular Expenditure under assessment Irregular Expenditure under determination Irregular Expenditure under investigation

1 598 763

350 192

- -

- -

Total

1 598 763

350 192

106

Rand Water | Integrated Annual Report 2025