Rand Water | Integrated Annual Report 2025

Internal Audit The Group Internal Audit (GIA) function continues to be a cornerstone of the governance framework, operating in accordance with the PFMA, King IV principles, and the newly adopted Global Internal Audit Standards issued by the Institute of Internal Auditors (IIA). The GARC maintained direct oversight of GIA, including approval of the Internal Audit Charter, the rolling three-year strategic internal audit plan, and the annual risk-based audit plan. GARC is satisfied that the GIA provided assurance on governance, risk management and control processes as per the approved internal audit plan. GIA delivered its approved plan for the period under review and submitted quarterly progress reports to the Committee, which included audit outcomes and management’s progress on remediation of audit findings. The internal audit unit completed 89% of the planned audits for the financial year 2024/25 (77% in 2023/24). The completed reviews covered the following areas: • Quarterly Performance Information for the Group and Subsidiaries • Draft Consolidated Annual Financial Statements • Internal Financial Controls • Supply Chain Management • Human Resources and Performance Management • The Environmental, Social and Governance (ESG) Report • Digital Technology and Information Management including General Controls and Security Processes • Project Management and SAP system • Asset Maintenance and Maximo System • Enterprise-Wide Risk Management processes • Natural Environmental Management • Water Quality and Water Purification Integrated Audits • Meter Reading and Revenue Management Review • Water Balance and Non-Revenue Water Integrated Audits • Process Technology Integrated Audits • Physical Security and National Key Point Review • Physical Patrol and Leaks Identification • Recoverable projects • Asset Management Review (including assessment of critical assets) • Knowledge Management and Records Review • Safety, Health, Environment and Quality (SHEQ) Audits • Follow up of internal and AGSA findings The Group Audit Executive has unrestricted access to both the GARC and its Chairperson, thereby reinforcing the independence and stature of the function. The GIA remained effective and demonstrated professional competence in delivering its mandate, underpinned by its adherence to the IIA Code of Ethics and the Standards for the Professional Practice of Internal Auditing. GIA continues to meet its quality assurance obligations. In line with the best international practices, GIA undergoes an External Quality Assurance Review (EQAR) at least once every five (5) years, although Rand Water’s internal audit function has opted for a three-year review cycle. The most recent EQAR, completed in March 2024, resulted in a rating of ‘Generally Conforms’, the highest rating attainable, affirming material compliance with IIA standards and ethical expectations. During the current reporting cycle, GIA proactively commenced alignment of its audit methodologies with the new Global Internal Audit Standards to ensure sustained conformance and readiness for the next EQAR, scheduled for 2027 .

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Rand Water | Integrated Annual Report 2025