Rand Water | Integrated Annual Report 2025

Risk Management, Governance and Assurance: • The Committee reviewed and considered quarterly updates on Strategic Risk Registers for the Rand Water Group and the Treasury Financial Risk Report. • To ensure adequate levels of internal and external assurance across the Group, the Committee considered the GIA Quarterly Report, Combined Assurance Report; DTIM Governance Report; Litigation Status Report, Integrity, Probity and Assurance Report; Consequence Management Report, and Fruitless, Wasteful and Irregular Expenditure Report. • The Committee approved the following key governance and assurance instruments: Internal Audit Charter; Annual Internal Audit Plan and 3-Year Rolling Plan; Combined Assurance Framework and Plan for FY 2024/25 and Integrity, Probity and Assurance (IPA) Annual Plan for FY 2024/25. • In reaffirming the Group’s commitment to safety, health, environment, and quality compliance, the Committee considered and recommended for approval the SHEQ Policy and Corporate Security Policy, aimed at enhancing the organisation’s security governance framework and ensuring alignment with risk management protocols. • The Committee further considered and recommended for approval the following policies and frameworks: Revised Delegation of Authority Framework; Internal Audit Charter and Manual; Prominent Influential Persons Policy; Accounting Policy, and Risk Management Policy. • In addition, the Committee considered the Group Internal Audit Charter 2025/26 financial year; Group Internal Audit Strategy 2026-2028, and Group Internal Audit 3-Year Rolling Plan to ensure the effectiveness and efficiency of the Internal Audit function. Budgeting and Financial Planning: • The Committee considered and recommended for approval the Group Budget, Capital Expenditure (Capex) Budget, and Five-Year Plan for 2025/26 financial year, Preliminary Budget and the Materiality and Significance Framework, and Capitalisation of Rand Water Services and its associated materiality framework. Regulatory and Statutory Compliance: • The Committee recommended for approval the Corporate Business Plan for financial years 2026-2030, Rand Water Annual Shareholders’ Compact for 2025/26 financial year, and Strategic Risk Register for 2025/26 financial year. Outlook and Future Focus Areas • Digital Resilience and Cybersecurity: Ongoing evaluation of the DTIM Governance Framework and Information Security policies to strengthen defences against cyber threats. • Sustainability and ESG Risk Integration: Enhanced oversight over ESG risks and sustainability reporting within the broader integrated reporting framework. • Strengthening Risk Management and Control Frameworks: Continued refinement of the Group’s internal control environment and risk mitigation plans. • Regulatory and Policy Alignment: Ensuring responsiveness to ministerial directives, PFMA amendments, and evolving governance expectations. • Clean Audit Outcomes: Monitoring the implementation of audit action plans and the Clean Audit Road Map to secure improved audit outcomes.

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Rand Water | Integrated Annual Report 2025