The West London Waste Authority - Audit Committee met on Friday 19 January 2024, approving the 2022/23 financial statements and recommending amendments to the committee's terms of reference. The committee also noted internal and external audit reports, along with the updated risk register.

Approval of 2022-23 Financial Statements

The committee approved the 2022/23 Statement of Accounts. Sapna Dhanani, Finance Manager, presented the report, noting that some formatting corrections had been made since the initial publication of the papers.

Audit Planning and Reports

Members received and noted the Audit Planning Report for the year ended 31 March 2023. Andrew Brittain from Ernst & Young (EY) explained that the report highlighted risks and the work EY had undertaken to address them. He confirmed that an unqualified opinion on the financial statements and value for money conclusion would be issued, despite a couple of outstanding items. Mr. Brittain also addressed a question regarding the assessment of Public-Private Partnership (PPP) risks, stating that auditors examine the valuation of the liability and its underlying assumptions, acknowledging that judgment and estimation are involved. He also clarified the categorisation of the Authority's IT use in the report, attributing it to new rules under ISA315 that auditors must follow.

The committee also received the External Auditor's Annual Report for the year ended March 2022, introduced by Andrew Brittain of EY.

Internal Audit Report on Income

An Internal Audit Report for 2023/24 concerning income was presented. Mike Pinder, Internal Auditor, explained that the audit reviewed the robustness of controls related to income as part of the Authority's 2023/24 Internal Audit Plan. Robin Pritchard, Independent Member, sought clarification on income derived from recyclable materials, and Mr. Pinder agreed to provide further details.

Audit Committee Terms of Reference

Proposed amendments to the Audit Committee's Terms of Reference were presented and recommended for adoption by the Authority. Sapna Dhanani, Finance Manager, outlined the key changes, which align with guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA).

Risk Register

The committee noted the Authority's updated risk register.

External Audit Planning

Jessica Hargreaves and Mark Twyford from KPMG, the Authority's new auditors, attended the meeting. Ms. Hargreaves explained that KPMG's work was currently restricted until the completion of the 2022/23 audit by EY. They intend to submit their audit plan at the next committee meeting. Mr. Twyford confirmed he had been collaborating with the Finance Manager and her team.

Election of Chair and Declarations of Interest

Councillor Deirdre Costigan was elected as Chair for the meeting. Robin Pritchard, an Independent Member, declared an interest in all items due to his Non-Executive Director role at Bristol Waste Authority and his Chairmanship of the Midland Metro Audit Committee. He stated he would remain in the room for the discussions.

The minutes of the previous meeting held on 23 June 2023 were taken as read and signed as a correct record. There were no apologies for absence.