The West London Waste Authority Audit Committee met on Friday 19 January 2024, approving the final 2022-23 Statement of Accounts and noting several audit reports. The committee also reviewed and recommended proposed amendments to its terms of reference.

Final 2022-23 Statement of Accounts Approved

The committee approved the West London Waste Authority's 2022-23 Statement of Accounts. Sapna Dhanani, Finance Manager, presented the report, noting minor formatting corrections 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. Key changes from the draft accounts included the reclassification of a £3.3 million disbursement of reserves to boroughs from an expense item to the balance sheet. Pension fund figures were also included in the final accounts, having been delayed due to triennial valuations.

Internal Audit Report 2023/24 - Income Audit

Members received the Internal Audit Report for 2023/24 concerning income. Internal Auditor Mike Pinder explained that the audit reviewed the robustness of the Authority's income controls. Robin Pritchard, Independent Member, sought clarification on income from recyclable materials, which Mr Pinder undertook to provide. The committee resolved to note the report.

WLWA Auditor's Annual Report

The committee received the External Auditor's Annual Report for the year ended March 2022. Andrew Brittain from EY introduced the report, focusing on the completion of the audit. The committee resolved to note the report.

Audit Planning Report

The Audit Planning Report for the year ended 31 March 2023 was presented by Andrew Brittain of EY. He explained that the report highlighted risks and the work EY had undertaken. Mr Brittain confirmed that an unqualified opinion on the financial statements and value for money conclusion was expected, despite a couple of outstanding items. He advised that the auditors consider the valuation of liabilities and underlying assumptions for Public Private Partnership (PPP) arrangements, which involve judgement and estimation. The committee resolved to note the report.

2023-24 External Audit - KPMG

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

Audit Committee - Terms of Reference

A report was presented outlining proposed amendments to the Audit Committee's Terms of Reference, in line with guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA). Sapna Dhanani, Finance Manager, highlighted the key changes, which included expanding membership to all six Authority members, allowing for a Vice Chair, and reducing the quorum to four members. The proposed changes were noted and recommended to the Authority for adoption.

Risk Register

The committee received the Authority's updated risk register. It was noted that the register had been regularly reviewed by Senior Managers and Chief Officers, focusing on strategic and significant risks. There were no Red (notable) risks identified. The committee resolved to note the content of the Risk Register.