RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

Composition and Term of the Board

The Board of Trustees consist of ten (10) trustees who are fit and proper to manage the business contemplated by the Rand Water Provident Fund in accordance with the applicable laws and the rules of the fund. Five (05) of such trustees must be elected by members who are known as member representatives. They will also elect an alternate from among their number to act in the absence of each trustee. The other five (05) trustees shall be appointed by the employer, Rand Water, as employer representatives. A Member of the BoT is appointed for a period of four (4) years. At the end of this term, both the Member and the Employer Trustee shall cease to hold office, but will be eligible for re-election for an additional four-year term.

Audit and Risk Committee

The Audit and Risk Committee is established as an independent statutory committee with the authority to execute its obligations in terms of the Pension Fund Act No 24 of 1956. In carrying out its mandate, the Audit and Risk Committee is authorised to have full, free, and unrestricted access to all the activities, records, property, and staff of the Fund. The Committee shall be constituted of at least five members, at least four of which shall be members of the Board of Trustees. Members are appointed for a four-year (4) term and may be eligible for reappointment for an additional four-year term. Notwithstanding this provision, not more than two members of the Audit Committee will be changed simultaneously. The primary role of the committee is to assist the board with all matters pertaining to governance, risk and compliance of the fund, as well as to interrogate all audit matters including third party assurance reports and inspection reports from regulators. The Fund applies a combined assurance approach with five levels of defence: • Management of the Fund oversees the daily internal controls and implements the risk management strategy of the Board of Fund. • The internal legal, risk and compliance functions ensure that the Fund adheres to the requirements of applicable legislative frameworks. • Our internal auditor function assesses the effectiveness of the internal controls, governance and risk management. The Audit and Risk Committee (ARC) of the Fund applies a coordinated approach to the combined assurance provided. The Board of Fund, also known as the Board of Trustees (the Board), serves as the ultimate fiduciary control. • Our external auditors, Mazars, express an opinion on our regulatory annual financial statements. The Fund’s valuators, Alexander Forbes, provides assurance on the solvency and sustainability of the Fund. • The fifth line of assurance consists of regulatory inspectors and licensing authorities. In the context of the current regulatory landscape, regulatory reviews provide a final overlay of external assurance which is entirely independent.

20 Rand Water Provident Fund Annual Report | 2022-2023