RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Report of the Group Audit and Risk Committee Financial statements and accounting practices

The International Financial Reporting Standards (IFRS) which is issued by the International Accounting Standards Board (IASB), remains the reporting framework within which Rand Water reports. The Committee has evaluated the consolidated annual financial statements of Rand Water for the year ended 30 June 2023, and based on the information provided, considers it compliant in all material respects with the requirements of the PFMA, Water Services Act, No. 108 of 1997 and IFRS. The Committee has: • reviewed and discussed with the external auditors and the accounting authority, the audited consolidated annual financial statements; • reviewed the external auditors’ management letter and managements’ response thereto; • reviewed compliance with legal and regulatory provisions; • reviewed significant adjustments resulting from the audit; • reviewed and discussed with the accounting authority, the performance information submitted to the external auditors; and • reviewed and assessed the Johannesburg Stock Exchange (JSE) proactive monitoring report. During the year the Committee met with the external auditors and internal auditors, without management being present, and confirmed that there were no material unresolved issues. Internal controls The Committee is satisfied that internal controls and systems have been implemented and that these controls have functioned effectively during the year under review. The Committee has overseen a process by which internal audit has performed internal audits according to a risk‑based audit plan, where the effectiveness of risk management and internal control systems, including financial internal controls, were evaluated. The Committee is satisfied with the content and quality of quarterly reports prepared and issued by the Group during the year under review. The outcomes of these audits form the basis for the Committee’s recommendation to the Board to enable the Board to report thereon. Discussions were held with external auditors on the results of their audits that an adequate system of internal control is being maintained to: • reduce the Group’s risk to an acceptable level; • meet the business objectives of the Group; • ensure the Group’s assets are adequately safeguarded; and • ensure that all transactions undertaken were recorded in the Group’s records, except for those reflected on note 40. Going concern The consolidated annual financial statements are prepared on a going concern basis and based on the quality and timeliness of the information availed (supported by section 11 of the Board Report) to the committee for oversight purposes, the committee is satisfied that the Group is a going concern. The Committee has recommended the consolidated annual financial statements for approval by the Board.

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