Report of the Board

Governance Statement

The Board of Uisce Éireann (“the Board”) present the Report of the Board for the financial year ended 31 December 2024.

Uisce Éireann (“the Company”) was incorporated in July 2013 pursuant to the Water Services Act 2013. Uisce Éireann is a Designated Activity Company limited by shares with a Constitution (Memorandum and Articles of Association) in accordance with the Companies Act 2014. Uisce Éireann is a regulated utility, that is economically regulated by the Commission for Regulation of Utilities and environmentally regulated by the Environmental Protection Agency.

Following the announcement in 2018 by the Government that Uisce Éireann would become a standalone, publicly owned, commercial, regulated utility and would no longer be a subsidiary of the Ervia Group, Uisce Éireann legally separated from Ervia with effect from 01 January 2023.

During 2024, Uisce Éireann complied with the provisions of the Code of Practice for the Governance of State Bodies (“the Code”), as it applies to a commercial semi-state entity. In accordance with provision 1.9 of the Business and Financial Reporting Requirements outlined in the Code, Uisce Éireann reports to the Minister for Housing, Local Government and Heritage (“the Minister”) on its compliance with the Code.

Directors’ Compliance Statement

The Board acknowledges that it is responsible for securing the Company’s compliance with its relevant obligations in accordance with Section 225 of the Companies Act 2014.

The Board is of the opinion that the policies and the structures and arrangements which the Company has in place are appropriate to secure material compliance by the Company with its relevant obligations. The Company’s “relevant obligations” are identified in the Compliance Policy Statement and the associated Compliance Matrix which identifies the key actions and checks that must be in place. This Compliance Policy Statement has been communicated to all senior management of the Company to ensure consistent and robust adherence. The Board carried out a mid-financial year and year-end review of the arrangements and structures in place for 2024 to secure the Company’s material compliance with its relevant obligations.

As compliance is a dynamic process, involving multiple policies and procedures, the commitment of the Board and senior management and the support of all employees, contractors and agents is essential to make the policy effective. The Board is committed to fostering an environment at Board level and throughout the Company which raises awareness, respects and promotes the aims of the Compliance Policy Statement.

Role and responsibilities of the Board

The Board’s role is to provide leadership and direction to the Company and ensure good governance across Uisce Éireann within a framework of prudent and effective controls. The Board performs this task by constructively challenging performance and supporting the development of proposals on strategy. The Governance Framework outlines the formal schedule of matters reserved for the Uisce Éireann Board (some of which are subject to Ministerial approval).

The day-to-day administration of the company is conducted by the Executive, under the management of the CEO, in accordance with the strategic goals and policies approved by the Board and within a prudent and effective control environment. Operational and financial decisions are made in consideration of achieving the goals that the Board has determined, having regard to Uisce Éireann’s statutory obligations and shareholders’ expectations.

Schedule of matters reserved for Board approval as outlined in the Uisce Éireann Governance Framework includes:

Matters considered by the
Board during 2024 include:

  • Annual Budgets, Corporate Strategy and Balanced Scorecard.
  • Release for consultation, and adoption of, key policy documents of strategic importance.
  • Oversight of Health and Safety governance and performance.
  • Without prejudice to certain delegations, all expenditure in relation to investment and capital projects and approval of major contract terms as required by the Infrastructure Guidelines and Water Services Sector Specific Guidelines.
  • Annual Report and Annual Financial Statements.
  • Appointment/ removal of external auditor.
  • Treasury matters.
  • Approval of climate action and sustainability objectives and oversight of sustainability reporting.
  • Significant amendments to pension scheme.
  • Terms of employment of senior management.
  • Code of Business Conduct, Organisational Risk Management Policy, Anti-Fraud Policy, Protected Disclosures Policy and Anti-Bribery and Anti-Corruption Policy.
  • All matters requiring Ministerial approval.
  • Criminal prosecutions for non-compliance with trade effluent licenses or any provision of the Water Services Acts 2007 to 2022.
  • Approval of 2023 Annual Report.
  • Approval of 2025 Annual Budget.
  • Approval of 2024 Balanced Scorecard metrics and monitoring of target achievements.
  • Draft Water Services Strategic Plan 2050.
  • Strategic Funding Plan 2025-2029.
  • Monthly finance and operations update and quarterly forecasting.
  • Approval of budgets for capital programmes and expenditure.
  • Quarterly Risk updates.
  • Approval of Risk classification, Risk Appetite and Organisational Risk Strategy 2025-2029.
  • Monthly Safety updates as well as bi-annual deep dive review.
  • Quarterly updates on critical assets.
  • Updates on Water Supply Project and Greater Dublin Drainage Project.
  • Strategy presentations.
  • Updates on Revenue Control 4 and Revenue Control 3.
  • Consideration of Director’s Compliance Policy Statement.
  • Review of effectiveness of internal controls.
  • Updates on leakage performance and supply maximisation measures.
  • Oversight of Cyber Security risk measures.
  • Consideration of Non-Domestic and Trade Effluent Tariffs.
  • Board effectiveness review.
  • Approval of amendments to Corporate Governance documents including the Governance Framework and the Board and Committee Terms of Reference.

Directors’ Responsibilities Statement for the Annual Report and Financial Statements

The Board is responsible for preparing the Director’s Report and the financial statements in accordance with the Companies Act 2014 and the applicable regulations. The Directors are responsible for the maintenance and integrity of certain corporate and financial information included on the Company’s website www.water.ie. Legislation in Ireland concerning the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Irish company law requires the Directors to prepare financial statements for each financial year. Under the law, the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (“relevant financial reporting framework”). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Company as at the financial year end date and of the profit or loss of the Company for the financial year and otherwise comply with the Companies Act 2014.

In preparing those financial statements, the Directors are required to:

  • Select suitable accounting policies for the Company financial statements and then apply them consistently.
  • Make judgements and estimates that are reasonable and prudent.
  • State whether the financial statements have been prepared in accordance with the applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards.
  • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for ensuring that the Company keeps, or causes to be kept, adequate accounting records which correctly explain and record the transactions of the Company, enable at any time the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy, enable them to ensure that the financial statements and Director’s report comply with the Companies Act 2014, and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Overview of the Board

Board composition, appointment and re-election

The Board’s structure is prescribed by statute, provided for in Section 6A of the Water Services Act 2013. Board vacancies are filled in accordance with Guidelines on Appointments to State Boards. The Chairperson engages with the Minister in advance of the Board appointment process about the specific skills and diversity that are required on the Board.

Section 6A of the Water Services Act 2013 provides that:

  • The number of Board Members shall be more than 5 but not more than 10.
  • Board Members are appointed by the Minister for Housing, Local Government and Heritage with the consent of the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.
  • One Board Member will be nominated by the Irish Congress of Trade Unions.
  • The CEO shall be an ex-officio Board Member of the Company.

Full profiles of the current Board membership can be seen within the Uisce Éireann Board section.

The term of office of Tony Keohane, Chairperson of the Board, expired on 21 June 2024 and Jerry Grant was appointed as Chairperson to the Board on 16 July 2024.

Board Member Fred Barry’s term of office expired on 19 January 2024, Board Member Christopher Banks’ term of office expired on 21 June 2024 and Board Member Liz Joyce resigned on 11 October 2024. Michael Nolan was appointed to the Board with effect from 20 January 2024, Paul Reid was appointed to the Board with effect from 16 July 2024 and Douglas Millican was appointed with effect from 12 October 2024.

As Chairperson of the Board, Jerry Grant, is responsible for leading the Board and ensuring the effectiveness and full participation of each Board Member.

The Company Secretary, Richard O’Sullivan, is responsible for ensuring that Board procedures are complied with and for advising the Board, through the Chairperson, on governance matters generally.

The Board has an appropriate balance of skills, experience and knowledge of the Company to allow it to discharge its duties and responsibilities effectively. The Board is of sufficient size to ensure that this balance of skills and experience can be utilised appropriately and changes to the Board’s composition can be managed without undue disruption.

Re-appointments to the Board, following the expiration of the term of office of a Board Member, are a matter for the Minister and are made through the Public Appointment Service.

Induction and development of new Directors

On appointment, Board Members are provided with detailed briefing documents, governance, financial and operational information, and the opportunity to be briefed by the Executive team on the different aspects of the business of the Company. The Company Secretary liaises with Board Members with regard to their specific requirements, such as attendance at conferences, courses and webinars relevant to the business and arranges briefings by management on specific topics.

Independence

The Board of Uisce Éireann is comprised of 9 independent Non-Executive Directors and 1 Executive Director.

Board Members are required, in accordance with the provisions of the Code of Practice, to disclose any relevant interest and absent themselves from Board discussions where they have a direct or indirect interest.

Board remuneration, expenses and attendance

The Non- Executive Board Members are entitled to fees, on a scale determined by the Minister. The remuneration of the CEO of Uisce Éireann for 2024 is outlined in note 3 of the financial statements. A schedule of the attendance at the Board meetings for 2024 is outlined below.

Board Member

Remuneration (€)

Expenses4 (€)

Board (attended/eligible)

Audit and Risk Committee (attended/eligible)

Investment, Infrastructure & Sustainability Committee (attended/eligible)

Uisce Éíreann Transformation
Programme Committee (attended/eligible)

Remuneration Committee (attended/eligible)

Jerry Grant (Chairperson of Board)

(appointed 16 July 2024)1

14,538

5/5

-

4/5

-

2/2

Tony Keohane (Chairperson of the Board)

(Term of office expired 21 June 2024)1

15,144

-

6/6

-

-

-

4/4

Christopher Banks (Term of office expired 21 June 2024)1

7,572

348

5/6

-

5/5

4/4

-

Fred Barry (Term of Office expired 19 January 2024)1

909

0/1

-

-

-

-

Gerard Britchfield

15,750

2,657

11/11

8/8

-

-

6/6

Niall Gleeson (CEO)2

-

10/11

-

11/11

6/7

-

Liz Joyce (resigned 11 October 2024)1

12,358

-

8/8

-

-

6/6

5/5

Patricia King3

-

-

11/11

-

-

7/7

6/6

Eileen Maher

15,750

-

11/11

8/8

-

-

6/6

Cathy Mannion

15,750

-

11/11

8/8

11/11

-

-

Douglas Millican appointed 12 October 2024)1

3,473

138

3/3

-

1/1

-

Michael Nolan (appointed 20 January 2024)1

14,841

-

10/10

11/11

7/7

-

Paul Reid (appointed 16 July 2024)1

7,269

-

5/5

-

3/3

1/1

Michael Walsh

15,750

-

11/11

8/8

11/11

-

-

Notes:

1 Fee covers portion of year from/ to date of appointment/ end of appointment

2 Did not receive a Board fee in compliance with Guidelines on Contracts, Remuneration and Other Conditions of Chief Executives and Senior Management of Commercial State Bodies.

3 Board fee waived on a discretionary basis.

4 Expenses claimed directly by Board Member.

Board and Executive Team Gender

Board Gender

Pie chart showing gender distribution: 3 women (blue) and 7 men (teal).

Executive Team Gender

Pie chart showing gender distribution: 4 women (blue) and 7 men (teal).

Board Committees

During 2024, the Board was assisted in discharging its obligations through the delegation of certain roles and responsibilities to four Committees:

  • Audit and Risk Committee
  • Investment, Infrastructure and Sustainability Committee
  • Uisce Éireann Transformation Programme Committee
  • Remuneration Committee

The Committees assisted the Board by considering business, operational and financial issues. The specific functions delegated to each Committee are set out in their Terms of Reference which are reviewed and approved by the Board on an annual basis. Following each meeting, the Committees report to the Board on the matters within their remit.

Attendance at Committee meetings is outlined in the ‘Board Remuneration, Expenses and Attendance’ table.

Committee

Membership during 2024

Terms of Reference

Investment, Infrastructure and Sustainability Committee

Michael Nolan
(Chairperson from June 2024)

Chris Banks
(Chairperson until June 2024)

Niall Gleeson

Jerry Grant
(from July 2024)

Cathy Mannion

Michael Walsh

Advising the Board on all matters relating to capital projects and programmes, development opportunities and sustainability.

The Committee met 11 times during 2024.

Remuneration Committee

Eileen Maher
(Chairperson)

Gerard Britchfield

Jerry Grant
(from July 2024)

Liz Joyce
(until October 2024)

Tony Keohane
(until June 2024)

Patricia King

Paul Reid
(from October 2024)

Advising the Board on CEO Remuneration (having regard to the legal and regulatory requirements of the Code of Practice), Senior Management Remuneration, leadership succession planning and development, company pay model, balanced scorecard, pension matters and matters related to gender pay gap.

The Committee met 6 times during 2024.

Uisce Éireann Transformation Programme Committee

Paul Reid (from July 2024 and Chairperson from October 2024)

Liz Joyce
(Chairperson until October 2024)

Chris Banks
(until June 2024)

Niall Gleeson

Patricia King

Douglas Millican
(from October 2024)

Michael Nolan

Advising the Board on all matters (i.e. legal, safety, governance, financial, customer experience and operations service) relating to the transition of accountability and delivery of water services and direct management of any water services staff from Local Authorities to Uisce Éireann.

The Committee met 7 times during 2024.

Audit and Risk Committee

Gerard Britchfield
(Chairperson)

Eileen Maher

Cathy Mannion

Michael Walsh

Advising the Board on matters relating to the financial statements, internal controls, risk, internal audit, external audit and other matters including the Corporate Sustainability Reporting Directive and Uisce Éireann’s ethics related policies.

The Committee met 8 times during 2024.

Detailed Committee Report follows the Report of the Board.

Board effectiveness

The Board conducted an evaluation of its own performance and that of its Committees in November 2024. The areas of performance assessed align with the evaluation questionnaire template in the Code of Practice for the Governance of State Bodies.

An external evaluation of the Board will be carried out in 2025 in accordance with the 3-year timeframe specified in the Code of Practice for the Governance of State Bodies.

Relations with shareholders

The Minister for Housing, Local Government and Heritage holds one ordinary share of €1.00 and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation holds 99 ordinary shares of €1.00.

In accordance with the Code of Practice for the Governance of State Bodies, the Minister for Housing, Local Government and Heritage issued a Shareholder Letter of Expectation to Uisce Éireann in April 2023. The letter provides guidance to the Board on the Government’s current objectives for Uisce Éireann as well as the governance arrangements in place with the expectation that it will be updated at least every two years. The Chairperson keeps the Minister advised of matters arising.

Disclosures required by the Code of Practice for the Governance of State Bodies

The Board is responsible for ensuring that Uisce Éireann has complied with the requirements of the Code. The following disclosures are required by the Code:

Analysis of employee benefits

Details of the number of employees whose total employee benefits (excluding employer pension costs) for the financial year for each band of €25,000 from €50,000 upwards are set out below.

2024

2023

€50,000-€75,000

700

501

€75,001-€100,000

419

332

€100,001-€125,000

244

206

€125,001-€150,000

102

71

€150,001-€175,000

35

34

€175,001-€200,000

22

17

€200,001-€225,000

9

5

€225,001-€250,000

5

9

€250,001-€275,000

4

2

Note: All short-term employee benefits in relation to services rendered during the reporting period are included in the disclosure above. Refer to note 4 of the Financial Statements for further analysis of the various benefits included.

There was significant recruitment in 2024 to transform Uisce Éireann in accordance with the Framework for the Future Delivery of Water Services in Ireland, which will deliver the transfer of Local Authority water services into Uisce Éireann.

The Uisce Éireann pay model which is market based and performance related, comprises two elements, namely base pay and a performance related award (disclosure above includes award paid in 2024). Performance is assessed against individual objectives and corporate objectives through a balanced scorecard process. Uisce Éireann made performance related payments to 2,244 employees in 2025 in respect of 2024. These payments were approved by the Board of Uisce Éireann in January 2025. These payments, in aggregate, total €13,082,158. The average payment was €5,830. As a result of a government direction in 2011, the CEO does not have access to the payment of a performance related award, and therefore no such payments have been made to the CEO.

Consultancy costs

Consultancy costs include the directly incurred cost of external advice. They are defined as engagements to provide intellectual or knowledge-based services (e.g. expert analysis and advice) through delivering reports, studies, assessments, recommendations, proposals, etc. that contribute to decision or policymaking in a contracting authority for a limited time period to carry out a specific finite task. They exclude outsourced ‘business-as-usual’ functions.

2024
€’000

2023
€’000

Legal advice

121

112

Financial advice

776

418

  • Regulatory financial advice

435

201

  • Financial services advice

277

143

  • Other financial advice

64

74

Human resources

487

353

  • Pension related advice

354

251

  • Other HR advice

133

102

Business improvement/ change

1,591

1,722

  • Business change programme advice

435

484

  • IT related projects advice

173

485

  • Supply chain/ procurement advice

308

140

  • Business strategy

209

412

  • Other improvement/ change advice

466

201

Engineering

97

91

Facilities

391

124

Other

89

74

Total

3,552

2,894

2024

2023

Consultancy capitalised

163

485

Income statement

3,389

2,409

Total

3,552

2,894

2024 Consultancy spend represents 0.1% of total operational and capital spend.

Consultancy cost increases from prior year:

  • Regulatory financial advice relates to additional Commission for Regulation of Utilities (CRU) requirements and interactions for Uisce Éireann Revenue Control Periods 3 and 4.
  • Financial services advice relates to European Sustainability Reporting Standards and advice relating to Uisce Éireann enterprise risk methodology.
  • Pension related advice in respect of the Uisce Éireann (ex-Ervia) Superannuation Scheme and advice in respect of the Uisce Éireann Defined Benefit Superannuation Fund.
  • Business change programme advice relates to review of structure and reporting requirements of Uisce Éireann Transformation Programme.
  • Supply chain relates to advice received for developing ICT category strategy, including procurement and contracting.
  • Business strategy relates to data strategy development and circular economy design.
  • Facilities costs relate to property management advice received.

Legal costs and settlements

The table below provides a breakdown of amounts recognised as expenditure in the reporting period in relation to legal costs, settlements, conciliation, and arbitration proceedings. This does not include expenditure incurred in relation to general legal advice as this is included in consultancy costs above.

2024
€’000

2023
€’000

Legal fees – legal proceedings

2,088

1,777

Conciliation / arbitration payments

322

258

Settlements

2,011

2,133

Total

4,421

4,168

No. of legal cases

41

58

Note: 2024 legal costs and settlements includes an amount of €29,323 in relation to a legal matter with University of Limerick and €59,371 in relation to legal matters with Inland Fisheries Ireland.

This disclosure note excludes any payments made by Uisce Éireann’s insurer directly.

The number of cases relate to legal cases initiated by Uisce Éireann itself or proceedings taken against it and excludes insurance claims/ proceedings and wayleave conciliations.

There were no legal costs incurred in 2024 in respect of employee departures.

Travel and subsistence expenditure

Travel and subsistence expenditure is categorised as follows:

2024
€’000

2023
€’000

Domestic

- Board

7

6

- Employees

4,919

3,376

International

- Board

6

5

- Employees

88

54

Total

5,020

3,441

Travel and subsistence expenditure incurred by the Uisce Éireann CEO is included within the disclosure of employee expenditure.

Hospitality

The income statement includes the following hospitality expenditure:

2024
€’000

2023
€’000

Staff hospitality

194

116

Client hospitality

17

13

Total

211

129

Transparency

Uisce Éireann is an open organisation which strives to be accountable and transparent to the public. Uisce Éireann is committed to improving the understanding of how the organisation operates and our role in delivering important national infrastructure and services to support the social and economic development of Ireland.

Protected disclosures and raising concerns

The mechanism whereby Uisce Éireann’s employees, management and suppliers may raise concerns, or make disclosures in the public interest, in accordance with the Protected Disclosures Act 2014 (as amended), is outlined in the Protected Disclosures Policy. Further guidance on raising concerns for management and employees is outlined in the Code of Business Conduct, the Anti-Fraud Policy and the Anti-Bribery and Anti-Corruption Policy. Section 22 of the Protected Disclosures Act 2014, as amended by the Protected Disclosures (Amendment) Act 2022, requires Uisce Éireann to publish an Annual Report relating to protected disclosures made under the Act. In accordance with this requirement, Uisce Éireann confirms that in the year ended 31 December 2024, it received two protected disclosures, both of which are still under assessment.

Regulation of lobbying

Uisce Éireann is registered on the lobbying register maintained by the Standards in Public Office Commission. In accordance with the requirements of the Regulation of Lobbying Act 2015 the required returns have been made for the return periods in 2024.

Payment Practices

Uisce Éireann is committed to making every effort to paying suppliers on time. A policy is in place within the Company to govern payment practices. The table below outlines payment practices for 2024.

Number

Value
€m

Percentage (%) of total number of payments made

Total payments made

156,667

2,106

100%

Payments made within 30 days

148,284

2,063

95%

Payments made outside of 30 days

8,383

43

5%

Payments made in excess of 30 days that did not result in late payment interest and compensation costs

8,383

43

5%

Payments made in excess of 30 days that resulted in late payment interest and compensation costs

-

-

-%

Freedom of information

The Company is subject to the provisions of the Freedom of Information Act 2014 (‘FOI Act’). A Model Publication Scheme has been prepared and published in accordance with the requirements of Section 8 of the FOI Act. The scheme is accessible through the Company’s website www.water.ie.

Under the scheme, the Company publishes as much information as possible in an open and accessible manner on a routine basis outside FOI, having regard to the principles of openness, transparency and accountability.

Official Languages Act

In accordance with Section 4B (a) of the Official Languages Act 2003 as amended by the Official Languages (Amendment) Act 2021 (the “Official Languages Act”) senior management has appointed the Chief Legal Officer to oversee compliance and report to the CEO as appropriate. In addition, Uisce Éireann has an Official Languages Officer. In accordance with Section 4B (b) of the Official Languages Act, a report of activities relating to compliance with the Official Languages Act was submitted to senior management. In summary and in accordance with Section 4B (b) of the Official Languages Act, the report referred to the implementation of the obligations, duties and progress towards full compliance with relevant legislation. In 2024, Uisce Éireann was subject to an investigation by An Coimisinéir Teanga under Section 21 (c) of the Official Languages Act in respect of Section 9 (3) of the 2003 Act. The investigation closed in Q4 2024 and Uisce Éireann will adhere to the outputs of the final report from An Coimisinéir Teanga regarding the matter.

Gender balance, diversity, equity and inclusion

An overview of the Company’s commitment to the promotion of gender balance, diversity, equity and inclusion throughout 2024 is outlined within the Sustainability Report section.

Statement on the System of Internal Controls

Scope of Responsibility

The Board acknowledges its responsibility under Section 7.3 of the Code of Practice for the Governance of State Bodies for ensuring that an effective system of internal control is maintained and operated.

Purpose of the System of Internal Control

The system of internal control is designed to manage risk to a tolerable level rather than to eliminate it and can only therefore provide reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or detected in a timely way.

The system of internal control which accords with guidance issued by the Department of Public Expenditure, NDP Delivery and Reform, has been in place in Uisce Éireann for the year ended 31 December 2024 and up to the date of approval of the financial statements.

Management of Risk

All employees of Uisce Éireann have a responsibility for the effective management of risk which includes designing, operating and monitoring the systems of internal control for Uisce Éireann. The Chief Executive Officer is the accountable executive with ultimate responsibility. The Chief Executive Officer delegates clear roles and responsibilities for effective risk management and for ensuring the systems of internal control are operating effectively to his Executive Team and their reports.

Risk and Control Environment

The Board ensures the Company has appropriate systems of internal control and risk management in place through use of the following structures and systems:

Audit and Risk Committee

Uisce Éireann has an Audit and Risk Committee (the “ARC”) comprising 4 non-executive Uisce Éireann Board Members who have the necessary expertise for the role. The ARC provides oversight of the risk and control environment on behalf of the Uisce Éireann Board and is responsible for assisting the Uisce Éireann Board in discharging its responsibilities as they relate to this area. On a quarterly basis the ARC performs a substantive review of the Uisce Éireann Principal Risks, prepared by management, ensuring oversight of the key risks and reviewing the effectiveness of management’s responses to key risk exposures facing the Company. The ARC also considers quarterly updates on the control environment as part of the Integrated Assurance Forum.

Three Lines Model

Uisce Éireann operates an integrated assurance and risk management framework which further consolidates and co-ordinates in a structured manner all risk management and assurance activities in the organisation across the “Three Lines” model. This ensures that Uisce Éireann maximises risk, assurance and governance oversight and control to build organisational resilience and follows leading practice to support compliance obligations and governance requirements.

Underpinning this three lines model, additional assurance is also provided by external auditors and other independent assurance providers and regulatory bodies e.g. the Office of the Comptroller and Auditor General (C&AG). This is often referred to as the “Fourth Line”.

Organisational Risk Management

Uisce Éireann has an embedded Organisational Risk Management (ORM) function which is responsible for the design and implementation of an ORM framework and for ensuring that sufficient risk management experience and skills are available throughout Uisce Éireann. The Head of Organisational Risk and Resilience reports to the Strategy, Resilience and Regulation Director and attends ARC meetings. In addition, the Uisce Éireann Risk Management Committee, chaired by the Chief Executive Officer, meets quarterly.

In particular, the Organisational Risk Management function:

  • Ensures that adequate and consistent ORM four step process and oversight are in place for defining, assessing, managing, monitoring and reporting of risks to which Uisce Éireann is exposed.
  • Ensures that oversight is maintained and an assessment is undertaken of the Uisce Éireann risk profile including principal risks, emerging and trending risks and high impact low probability risks, including a description of these risks and associated mitigation measures or strategies and their effectiveness.
  • Develops and implements the overall ORM Framework, risk strategy, risk appetite and ORM policies and procedures.
  • Embeds an appropriate risk management culture.

Integrated Assurance Forum

The Integrated Assurance Forum (IAF) ensures that the review of the effectiveness of the Internal Control environment is carried out in a co-ordinated and structured manner with appropriate evidence and sign offs in place. Each function Directorate maintains a register of key controls and each key control is self- assessed quarterly for effectiveness, and continuous control monitoring is performed quarterly. A summary of the forum discussions are provided to the ARC.

The membership for the Integrated Assurance Forum (IAF) is the Uisce Éireann CEO and all direct reports of the CEO. There is a strong “tone from the top” with support from Senior Management and Executive nominated Pillar Leads and Champions in place across the business. The Champion network is working successfully and is aware of the importance of the Integrated Assurance process including the role it plays to support the business.

As part of the end of year Forum management are required to confirm that:

  • They are satisfied with the effectiveness of the control environment in the period.
  • There are no material exceptions or breaches of key controls in the period.
  • Action plans and timelines are agreed for controls requiring enhancement.

Furthermore, in instances where control issues have been identified, they have either been subsequently addressed, have actions assigned to them since identification, or have mitigating controls in place.

Management has considered the items brought to the attention of the ARC in 2024 and has assessed several items in detail against the criteria outlined in the guidance documentation on the Code of Practice for the Governance of State Bodies, issued by the Department of Public Expenditure, NDP Delivery and Reform.

Internal Audit

Uisce Éireann has an established Internal Audit function which is adequately resourced and conducts a programme of work agreed with the ARC. The Head of Internal Audit reports directly to the ARC and to the Chief Financial Officer.

The Internal Audit function provides a systematic and disciplined approach to evaluate and improve the effectiveness of Uisce Éireann’s, governance, risk management and internal control.

In particular, the Internal Audit function:

  • Evaluates risk exposure relating to the achievement of Uisce Éireann’s strategic objectives.
  • Evaluates the systems established to ensure compliance with policies, plans, procedures, laws and regulations.
  • Evaluates the means of safeguarding assets.
  • Monitors and evaluates the effectiveness of the risk management processes.
  • Performs advisory services related to governance, risk management and control as appropriate.

Elements of Control Environment

In addition to the key structures referred to above, the Board confirms that a control environment, containing the following elements, is in place in Uisce Éireann;

  • Responsibility by management at all levels within Uisce Éireann for internal control and risk management over respective business functions.
  • Established processes to identify and evaluate business risks by identifying the nature, extent and financial implication of risks facing Uisce Éireann including the extent and categories which it regards as acceptable. Other processes to identify and evaluate business risks include assessing the likelihood of identified risks occurring and assessing Uisce Éireann’s ability to manage and mitigate the risks that do occur through associated mitigation plans and strategies.
  • A comprehensive listing of key controls is maintained by each business function, which are assessed on a quarterly basis with action plans implemented as required.
  • An internal control framework assessment that involves undertaking an extensive risk assessment, reviewing the operation and effectiveness of key control policies and processes, internal control self-assessment reporting and monthly performance reporting, supported by assurance activities of Integrated Assurance and Internal Audit.
  • Systematic reviews of internal financial and operational controls by Integrated Assurance and Internal Audit. In these reviews, emphasis is focused on areas of greater risk as identified by risk assessment.
  • Appropriate segregation of duties and documentation of processes and controls that are focused on preventing and detecting fraud.
  • Internal policies requiring all employees to act with integrity and maintain the highest ethical standards. These policies include the Code of Business Conduct, Anti-Fraud Policy, Anti- Bribery and Anti-Corruption Policy, Regulation of Lobbying Policy and Protected Disclosures Policy.
  • A comprehensive anti-fraud programme including an anti-fraud policy, training and communication and a fraud response plan.
  • The Corporate Governance Framework that includes financial control and risk assessment. This is monitored by Uisce Éireann management and the Internal Audit and Risk Management functions.
  • Clearly defined organisational structure, with defined authority limits and reporting mechanisms to higher levels of management and to the Uisce Éireann Board.
  • A comprehensive set of policies and procedures relating to operational and financial controls, including capital expenditure. Large capital projects require Board approval and are closely monitored by the Investment/ Infrastructure and Sustainability Committee.
  • A comprehensive budgeting system with an annual budget and quarterly forecasts which are reviewed and agreed by the Uisce Éireann Board.
  • A comprehensive system of financial Reporting.
  • A comprehensive set of management information and performance indicators is produced quarterly enabling progress against longer-term objectives and annual budgets to be monitored, trends evaluated and variances acted upon.

Ongoing Monitoring and Review

Uisce Éireann has a robust framework to review the adequacy and monitor the effectiveness of internal controls covering financial, operational, compliance and risk management processes. The Board is satisfied that the system of internal control in place is appropriate for the business.

The monitoring and review of the effectiveness of the system of internal control in respect of Uisce Éireann is informed by the work of employees within Uisce Éireann responsible for the development and maintenance of the internal control framework and the work of the Internal Audit function. This is supplemented by the ARC who oversee the work of the Integrated Assurance, Risk Management and Internal Audit functions and comments made by the External Auditor in their management letter and/or other reports. Control deficiencies are communicated to those responsible for taking corrective action, to management and to the Board of Uisce Éireann, where relevant, in a timely way.

Capital and Operational Expenditure

The Infrastructure Guidelines were published by Department of Public Expenditure, NDP Delivery and Reform in December 2023, replacing the Public Spending Code. The Department of Public Expenditure, NDP Delivery and Reform guidance on the Quality Assurance Process to be followed to provide a summary overview of how compliant an organisation is with the Infrastructure Guidelines, includes a three-point rating scale:

  • Scope for significant improvements
  • Compliant but with some improvement necessary
  • Broadly compliant

Uisce Éireann’s self-assessment completed in line with this guidance, confirms that robust and effective systems are in place to ensure that the requirements of the Infrastructure Guidelines are broadly complied with, as per the above rating scale. As would be expected, these systems remain under continuous review and minor enhancements continue to be made. Uisce Éireann continues to engage with the Department of Housing, Local Government and Heritage (DHLGH) on the drafting of the Water Services Sector Specific Guidelines which will provide greater clarity on the implementation of the Infrastructure Guidelines in Uisce Éireann.

The Uisce Éireann Procurement Policy (PD02) details the procedures to be followed by Uisce Éireann to support procurement requirements in the organisation. Application of PD02 ensures EU and Irish laws relating to public procurement are adhered to, tender processes are appropriately managed and governance and management oversight of the procurement process is maintained across the Company.

The Uisce Éireann Expenditure and Contract Approval Policy is aligned with the principles, including the value for money guidelines for the evaluation, planning and management of public investment projects, as set out in the Infrastructure Guidelines.

All capital expenditure must have regard to national and EU procurement requirements in addition to compliance with any requirements that may be set by the Commission for Regulation of Utilities (‘CRU’), environmental and planning related requirements and national, regional and local infrastructural priorities. Appropriate and proportionate financial and economic appraisal methodologies as required by the Infrastructure Guidelines are used in respect of capital projects and programmes in order to facilitate effective decision making. Capital projects and programmes are assessed and delivered using a 5 gates approval process, aligned with the requirements of the Infrastructure Guidelines and the draft Water Sector Specific Guidelines.

The capital commitments process for Uisce Éireann operates on the basis that the company requests the relevant Ministerial consents in advance for an overall envelope of capital commitments to be entered into during the following financial year. Separately, Ministerial consents are requested by Uisce Éireann in advance of committing to any individual capital project costing €50m or greater. Ministerial consents are submitted to the parent Department (the DHLGH) and other relevant government departments involved in the consenting process for the specific application. In parallel with the submission of Ministerial consents to the DHLGH, the Ministerial consent requests are submitted to NewERA who provide project specific financial and commercial advice to DHLGH, in advance of the granting of Ministerial consent by DHLGH.

Capital investments including contracts with a value in excess of €1m are presented to the Expenditure Approval Committee (‘EAC’) including its sub-committees for detailed review and approval. All infrastructure capital expenditure greater than €20m requires the approval of the Board. Capital expenditure for non-infrastructure investment greater than €10m requires the approval of the Board.

The Board is kept appraised of the status of capital projects and programmes as they progress including updates on implementation against plan, time scales and quality. Budget and variance reporting is also regularly presented to the Board. All projects have specific objectives against which they are measured. Tenders and subsequent contracts include strict delivery requirements as well as KPIs which are used to measure performance throughout the course of the contract. Post project reviews and financial close reports are presented to the EAC, the Investment, Infrastructure and Sustainability Committee and the Uisce Éireann Board for evaluation depending on the value of the project or programme.

Project close out meetings and annual programme reviews facilitate a key ‘lessons learned’ approach which are then assessed, tracked and implemented as part of existing and future projects across the organisation as appropriate.

Review of Effectiveness

Uisce Éireann has procedures to monitor the effectiveness of its system of internal control.

The Board has reviewed the effectiveness of the system of internal control up to the date of approval of the Financial Statements, covering financial, operational and compliance controls and risk management systems for 2024 and will ensure a similar review is performed for 2025. A detailed review was performed by the ARC, which reported on its findings to the Board.

Internal Control Reporting

During 2024, Uisce Éireann continued to implement the required systems, processes and procedures necessary to ensure robust internal controls through applying policies and internal control frameworks.

Transfer of accountability for Water Services Functions

A Master Co-operation Agreement (MCA) was in operation with all 31 Local Authorities throughout 2024 which provides for Uisce Éireann to have full accountability for Water Services Functions and for Uisce Éireann to have the necessary Management and Direction of Local Authority Water Services Staff. In preparation for this, controls and processes were established to ensure that Uisce Éireann was in a position to assume its new responsibilities when the MCA became operational. Operation of the MCA has brought 3,000 staff under Uisce Éireann direct Management and Direction since August 2023. Controls and processes will continue to evolve and mature as services are standardised.

The MCA also provides that Uisce Éireann and each Local Authority will enter into a Support Services Agreement (SSA), setting out the support services which the Local Authority has agreed to provide Uisce Éireann in support of the delivery of Water Services Functions and the period over which these will transition to Uisce Éireann. SSAs are in place with 29 of the 31 Local Authorities at the end of 2024. Again, during the transitional phase, the controls and processes around these areas will continue to evolve and mature within Uisce Éireann.

Prior to the operation of each MCA (and SSA for support services), there is/was continued reliance on a range of controls operated by Local Authorities pursuant to the Service Level Agreement. These controls along with associated processes and procedures also will continue to evolve and mature.

While the Local Authorities retain statutory responsibility in respect of non-water services such as flood measures for example, Uisce Éireann has agreed pursuant to the MCA to provide support to the Local Authorities for critical non-water services areas for a period of 24 months from the coming into operation of the MCA in that Local Authority. The critical non-water services required by each Local Authority from Uisce Éireann are detailed in the SSA. Controls and processes have been put in place in order to deliver the critical non-water services to the Local Authorities and these controls and process will continue to evolve and mature.

Enforcement Actions

Drinking water and wastewater compliance issues exist as identified in the EPA’s Annual 2023 Drinking Water Report and the 2023 Annual Urban Wastewater Report. Uisce Éireann has been dealing with a number of enforcement actions taken by the EPA and the IFI. This is in the context of a legacy of underinvestment in water infrastructure over decades. While Uisce Éireann is proactively dealing with these issues, delays in delivering compliance are due to a combination of reasons including for example, aging of the infrastructure managed by Uisce Éireann, the scale of works and investment required, delays in delivering capital works due to delays in the planning and other statutory processes, the supply chain and resource availability. Engagement with the EPA is ongoing to provide updates on actions to address these matters which include compliance driven interventions set out in the Uisce Éireann capital investment plan, as well as operational enhancements.

Processing of New Connections Work Orders

Following an issue in relation to the monitoring and progression of connections work orders on Uisce Éireann systems reported in 2023, significant work has progressed to strengthen the control environment in this area. While substantial enhancements have been delivered, it was expected that this work would be complete in 2024, it is now expected that it will conclude in March 2025, with further work to be done around data processing and reporting systems.

Procurement

During 2024, expenditure was incurred in three instances where procurement procedures were not fully complied with, representing 0.013% of overall procurement expenditure. Steps have been taken to ensure that corrective actions are put in place.

Category

Activity detail

Corrective action Taken

Estimated value

Services

Local Authority engaged a non framework supplier not registered with Uisce Éireann for haulage of spoil. Uisce Éireann Supply Chain function was not aware of this until Local Authority came to Uisce Éireann to pay the invoices after work had been undertaken.

Local Authority made aware that they have breached Uisce Éireann’s Procurement Policy and should not have engaged the supplier without discussing with Uisce Éireann. The Local Authority is now aware that spend will be recorded as non compliant and proper process will need to be followed going forward.

€43,690

Services

Plant hire request for tender lapsed but work continued with the supplier exceeding the Uisce Éireann Procurement Policy thresholds. Supplier has conducted the work and should be paid for the work completed. 

Tender has since been completed and awarded under the guidelines of public procurement. Any work completed is now under an awarded competition with agreed rates. 

€64,350

Services

The supplier provides pre-employment medical services, including a full suite of tests - confined spaces, vaccinations, full body medical, audio test and colour blindness and has a national presence where supplier options appeared limited. Given this context and urgent resourcing needs, procurement was approved in line with policy, however, other suppliers are available to provide these services.

A new contract is now place for the enduring solution with a new supplier.

€128,000

Suspected Fraud

In March 2021 Ervia and Uisce Éireann were informed by a Local Authority of an alleged fraud which had taken place locally by a former Local Authority employee relating to the provision of water services. The alleged fraud is the subject of an ongoing investigation by the Garda National Economic Crime Bureau (GNECB). This matter will take a number of years to reach a full legal conclusion and the Board Audit & Risk Committee will be kept updated on all developments.

Notwithstanding the matters noted above, the Board is satisfied with the overall control environment for Uisce Éireann and that effective systems of internal control are maintained and operated with no material breaches noted in the year.

Conclusion

Principal activities and Company overview

The principal activities and an overview of the Company are provided in the Chief Executive Officer’s Review.

Results for the year

The results for the year are outlined in the Financial Review section. The policy direction from the shareholder is that Uisce Éireann should not pay a dividend, rather any surplus generated from its operations should be reinvested in water infrastructure.

Business review and future developments

Commentaries on performance in the year ended 31 December 2024, including information on future developments are contained in the Operating Review.

Accounting records

The Directors believe that they have complied with the requirements of sections 281 to 285 of the Companies Act 2014 with regard to the keeping of adequate accounting records by employing accounting personnel with appropriate expertise and by providing adequate resources to the financial function. The accounting records of the Company are maintained at Colvill House, 24/26 Talbot Street, Dublin 1.

Political donations

There were no political donations made during the financial year by the Company (2023: Nil).

Principal risks and uncertainties

The regulated and operational complexity of our business exposes the Company to a number of risks. Understanding the risks and potential opportunities will enable the Company to make informed decisions and ultimately create value for our stakeholders. An outline of the principal risks faced by the Company is discussed in the Report on Risk Management section. Refer to note 22 for full analysis of the Company’s financial risk management objectives, policies and exposures.

Research and development

In 2024, the Innovation Team developed a strategy to deliver innovation in Uisce Éireann. It established more streamlined innovation services for 1) employee suggestions, 2) supply chain to introduce their technology and service introductions and 3) research organisations/universities to engage with Uisce Éireann. A portfolio-led approach has also been put in place to focus innovation on key business challenges, the first being a Net Zero innovation portfolio targeting wastewater process emissions reduction.

While innovation initiatives are largely funded directly through Capital and Operational budgets, progress has also been made to increase the pace of innovation in Uisce Éireann by addressing the availability and accessibility of funding through cross-functional and supply chain collaboration. Examples include: The Commission for Regulation of Utilities (CRU) approved €1.26m for a Nature Based Solutions (NBS) project, which commenced in September and is being led by Asset Strategy. We have also collaborated with other Uisce Éireann teams, to deliver research and innovation pilots including Drone Sewer Surveys, MS-Copilot AI and Customer Re-Connect (our new text message service is detailed within the Operating Review section).

Key performance indicators

The Directors monitor performance using a suite of key performance indicators. These are considered in detail within Key Performance Indicator section of this report.

Directors and Secretary and their Interests

The Directors had no beneficial interests in the Company at any time during the financial year or at 31 December 2024.

Directors disclose any interest and recuse themselves from Board discussions and decisions where they are conflicted or have a direct or indirect interest as required by the Code. In accordance with Section 1.4 of the Business and Financial Reporting Requirements annexed to the Code, the remuneration of the CEO for the period is outlined in note 3 of the financial statements.

Companies Act 2014

Uisce Éireann is exempt from the obligation to use the words ‘Designated Activity Company’ describing the company type in its name pursuant to section 151 of the Companies Act 2014.

Statement on relevant audit information

In accordance with Section 330 of the Companies Act 2014, the Directors confirm that, in so far as the they are aware, there is no relevant audit information of which the Company’s statutory auditors are unaware, and the Directors have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company’s statutory auditors are aware of that information.

Going concern

The Directors have a reasonable expectation that the Company will continue to meet its liabilities as and when they fall due and continue in operational existence for the foreseeable future. The Company’s forecasts and projections show that Uisce Éireann is expected to meet its liabilities as and when they fall due through a combination of State funding and tariffs charged by Uisce Éireann. Accordingly, the Director’s continue to adopt the going concern basis in preparing the Company’s financial statements.

Refer to note 1 of the Financial Statements for the Company’s detailed going concern disclosure.

Subsequent events

There are no significant events affecting the Company which have taken place since the end of the financial year, other than as described in note 26 of the financial statements.

Independent auditor

The commencement of the Water Services (Amendment) Act 2022 introduced revised accountability and auditing arrangements for Uisce Éireann. Since 1 January 2023, Uisce Éireann has been subject to a dual audit by both the Comptroller and Auditor General (C&AG) and its commercial statutory auditor under the Companies Acts.

In accordance with Section 17C (4) of the Water Services Act 2013 (as amended), fees payable to Deloitte Ireland LLP to audit the financial statements of Uisce Éireann for the year 2024 are subject to approval of the Minister for Housing, Local Government and Heritage with the consent of the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.

Following completion of a competitive tender process in 2024 and consultation with the Minister, Deloitte Ireland LLP were appointed as commercial statutory auditor to Uisce Éireann, for the years 2024, 2025 and 2026.

In accordance with Section 17B(5) of the Water Services Act 2013 (as amended), fees payable to the C&AG to audit the financial statements of Uisce Éireann for the year 2024 are subject to the approval of the Minister for Housing, Local Government and Heritage with the consent of the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.

For and on behalf of Uisce Éireann:

Jerry Grant

Chairperson

Gerard Britchfield

Board Member