Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

REPORT OF THE GROUP AUDIT AND RISK COMMITTEE (CONTINUED)

Combined assurance

Rand Water has formally adopted a Combined Assurance Model to strengthen governance, reinforce the internal control environment, and optimise the assurance derived from both management and independent assurance providers. A clearly defined Combined Assurance Framework has been institutionalised to support structured implementation across the Group. The framework is operationalised through the Combined Assurance Forum, comprising representatives from key assurance and oversight functions—including Integrity and Probity Assurance, Risk Advisory Services, Group Legal Services, Group Regulatory and Compliance Services, GIA, and the AGSA. This structure facilitates a systematic and coordinated response to strategic and operational risks, aligned with the Five Lines of Assurance model. The coordination and facilitation of combined assurance activities are delegated to GIA, in accordance with its mandate under the Internal Audit Charter. Throughout the reporting period, the Committee received quarterly updates on the effectiveness and adequacy of the combined assurance efforts, including internal controls relating to strategic risks. As part of the combined assurance model, GIA and AGSA had structured engagements during the year. The engagements included the sharing of planning intelligence including the approved GIA three-year rolling plan and annual plan, completed audit reports and working papers, and collaborative assurance efforts where reliance and direct assistance were agreed upon. The Committee has satisfied itself that the Group Chief Financial Officer has appropriate expertise and experience for the management of the finance function. The Committee has considered and satisfied itself with the appropriateness of the experience and expertise of the senior members of management and the adequacy of resources of the finance function. Governance of risk The Committee oversees the implementation of the policy and plan for risk management taking place by means of risk management systems and processes. The Committee oversees the financial risk management aspect and is satisfied that appropriate and effective systems are in place for risk management. External Auditor's Report The Committee accepts the audit opinion of the external auditors on the consolidated annual financial statements and recommends that the audited consolidated annual financial statements be accepted and read together with the report of the external auditors. Expertise and experience of the Group Chief Financial Officer and Group Finance Function

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Ms. Zanele Monnakgotla Chairperson

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Rand Water | Integrated Annual Report 2025