Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

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. The Committee comprises eight (8) members: six (6) members from the Board of Rand Water, one (1) member from the Rand Water Foundation Board and one (1) member independent from the Board of Rand Water. 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 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 and qualifications of the members are included in the Corporate Governance report and the Board Profile reports. 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. Financial statements and accounting practices The IFRS Accounting Standards, issued by the International Accounting Standards Board (IASB), remain 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 2025, 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 Accounting Standards. The Committee has: • reviewed changes in accounting policies and practices in terms of the IFRS Accounting Standards; • reviewed and discussed with the external auditors and the accounting authority, the audited consolidated annual financial statements; 4. Roles and responsibilities Statutory duties Statutory duties

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Rand Water | Integrated Annual Report 2025