Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

The Committee exercised 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. The Committee is satisfied that the GIA provided assurance on governance, risk management and control processes as per the approved internal audit plan. GIA delivered on its approved plan for the reporting period and submitted quarterly progress reports to the Committee. The reports detailed audit outcomes and management’s progress on remediation of audit findings. The Internal Audit unit completed 89% of the planned audits for the current financial year (2024: 77%). The completed audits 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 (including assessment of critical assets) Review • Knowledge Management and Records Review • SHEQ Audits • Follow up of internal and AGSA findings The Group Audit Executive (GAE) has unrestricted access to both the Committee and its Chairperson, thereby reinforcing the independence and stature of the function. The GIA remained effective and demonstrated professional competence in fulfilling its mandate, underpinned by 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 years. However, Rand Water has opted for a more rigorous 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 period, GIA proactively commenced aligning 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