The West London Waste Authority Audit Committee met on Friday 19 January 2024 to review audit reports and financial statements. The committee approved the final 2022-23 Statement of Accounts and noted several audit reports, including the Internal Audit Report on Income, the WLWA Auditor's Annual Report, and the Audit Planning Report. Proposed amendments to the Audit Committee's Terms of Reference were also recommended for adoption by the Authority.

Final 2022-23 Statement of Accounts Approved

The committee approved the final 2022-23 Statement of Accounts for the West London Waste Authority. Sapna Dhanani, Finance Manager, presented the report, noting that some formatting corrections had been made since the draft accounts were published. The external auditors, Ernst & Young (EY), confirmed that the statements provide a true and fair view of the Authority's finances for the year ending 31 March 2023. Minor changes from the draft included adjustments to the accounting of reserve disbursements to boroughs and the inclusion of pension fund figures, which were delayed due to triennial valuations.

Internal Audit Report 2023/24 - Income Audit Noted

Members received and noted the Internal Audit Report for 2023/24 concerning income audits. Mike Pinder, Internal Auditor, explained that the audit reviewed the robustness of the controls in place for income management. Robin Pritchard, an Independent Member, sought clarification on income from recyclable materials, and Mr Pinder undertook to provide further details.

WLWA Auditor's Annual Report Noted

The External Auditor's Annual Report for the year ended March 2022 was received and noted by the committee. Andrew Brittain from Ernst & Young (EY) introduced the report, stating that its focus had been on the completion of the audit.

Audit Planning Report Noted

The Audit Planning Report for the year ended 31 March 2023 was received and noted. Andrew Brittain of EY explained that the report highlighted identified 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 was anticipated, despite a couple of outstanding items. Mr. Brittain also addressed questions regarding the assessment of Public Private Partnership (PPP) risks and the categorisation of the Authority's IT use in relation to the introduction of ISA315¹.

2023-24 External Audit - KPMG Introduced

The committee welcomed Jessica Hargreaves and Mark Twyford from KPMG, who are the Authority's new auditors. Ms. Hargreaves explained that KPMG's work was currently limited until the completion of the 2022/23 audit by EY. Their audit plan is expected to be submitted at the next committee meeting.

Audit Committee - Terms of Reference Amendments Recommended

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 CIPFA's² guidance and aim to enhance transparency and the committee's focus on governance, risk, and control. Notable changes include allowing all six Authority members to be part of the committee, introducing a Vice-Chair role, and adjusting the quorum to four members. The responsibilities section has also been expanded for greater clarity.

Risk Register Noted

The Authority's updated Risk Register was received and noted by the committee. The register details the key strategic risks facing the Authority and the mitigating actions being taken. The report indicated that there were no Red (notable) risks identified at this time.