RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Report of the Group Audit and Risk Committee 1. Background

The Group Audit and Risk Committee (the Committee) is a sub‑committee of the Board that combines the Audit and Risk Committee of the subsidiaries, Rand Water Foundation (RWF) and Rand Water Services (RWS), with that of Rand Water. In view thereof, the membership of the Committee comprises of six (6) members who are also members of the Board of Rand Water and one (1) member who is a member of the Rand Water Foundation Board. 2. Group Audit and Risk Committee terms of reference The Committee operates based on terms of reference, which regulates both its statutory duties and those delegated to it by the Board. The terms of reference incorporate responsibilities of an audit committee as highlighted in section 77 of the Public Finance Management Act, No. 1 of 1999 (PFMA), Treasury Regulation 27.1 and the King Report™ on Corporate Governance for South Africa, 2016 (King IV). The terms of reference were reviewed to align with governance principles and best practices and are approved by the Board. 3. Group Audit and Risk Committee members, meeting attendance and qualifications The Committee consists of a majority of independent non‑executive members. The Committee meets at least four times per year in line with its terms of reference. Attendance of meetings, dates of appointments, as well as, qualifications of the members are included in the Corporate Governance report and the Board Profile reports. 4. Roles and responsibilities Statutory duties The Committee has conducted its affairs in compliance with its terms of reference and has discharged its responsibilities therein. The Committee is satisfied that it has complied with its legal, regulatory and other responsibilities.

External auditors’ appointment and independence

The Auditor General of South Africa (AGSA) remains the external auditors of the Rand Water Group in terms of Section 4(3)(a) of the Public Audit Act, No. 25 of 2004.

The Committee in consultation with management agreed to the terms and conditions of the engagement letter, the audit plan and the budgeted audit fees for the year under review. The Committee has satisfied itself that the external auditors were independent of the Group, which includes consideration of compliance with criteria relating to independence or conflicts of interest as prescribed by the Independent Regulatory Board for Auditors. Requisite assurance was sought and provided by the external auditor that internal governance processes within the audit firm support and demonstrate its claim to independence.

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