The West London Waste Authority Audit Committee meeting scheduled for Tuesday 20 January 2026 was set to review several key financial and operational documents. Discussions were planned around the authority's risk register, the 2024/25 statement of accounts, and reports from both external and internal auditors. Additionally, the committee was scheduled to consider updates to the authority's financial regulations.

Risk Register

The committee was scheduled to review the authority's updated risk register. This report, authored by Sapna Dhanani, Director of Finance & Corporate Resources, aimed to provide an overview of potential risks affecting the authority's operations and project delivery. The register categorises risks into areas such as Reputation, Finance, Operations, Health and Safety, Regulation/Legal, Environment, Technology, People, and Joint Working. The report indicated that following the implementation of mitigation measures, there were no notable (red) risks. The committee was asked to approve the updated Risk Management Policy and note the contents of the risk register. The updated register reflects changes at the Authority, with an emphasis on delivering core functions and enhancing collaboration with boroughs. Risk scoring had been reviewed following the update of mitigations for new or changed processes and policies. A new column for Assurance & Management Comments and Tools was added to show risk trends and provide evidence of mitigation measures. Risk training had been delivered to the Senior Leadership Team by an external provider.

2024/25 Statement of Accounts

An update on the 2024/25 Statement of Accounts was presented by Sapna Dhanani, Director of Finance & Corporate Resources. The report highlighted key changes from the draft accounts published in June 2025, including prior year adjustments related to asset valuations (£20.8 million) and deferred income from the PPP contract (£20.1 million). Adjustments were also noted for the manual valuation of properties and the ongoing finalisation of IFRS 16 transition impacts. A potential prior year adjustment concerning the accounting treatment of the PPP contract from its inception was also mentioned. The report indicated that finalising the accounts might be delayed, potentially affecting the timing of any excess reserve disbursement. The committee was asked to delegate authority to the Authority's Chair to approve the financial statements once the audit is finalised by KPMG, and to the Managing Director and Treasurer to approve the disbursement of reserves. An estimated additional fee of £43,000 for KPMG's audit services was also noted, with a possibility of increase due to ongoing work on IFRS 16 and PPP concession accounting.

External Audit Reports

The committee was scheduled to receive draft reports from KPMG, the authority's external auditors, concerning the 2024/25 audit and statement of accounts. These reports included the draft ISA 260 report, the draft Auditors Annual Report, and the draft Management Representation Letter. The external auditors were required to carry out a value for money audit to ensure the Authority had made proper arrangements for securing economy, efficiency, and effectiveness in its use of resources. The audit highlighted a weakness in governance arrangements related to the temporary closure of the Abbey Road site, noting that risk management and reporting processes were not consistently applied in practice. The Authority had implemented improvements to mitigate these risks. A historic procurement issue regarding cumulative spend with one supplier was also noted.

Internal Audit Report

An internal audit report on Data Management, presented by the London Borough of Ealing, was scheduled for review. The audit, part of the 2025/26 Internal Audit Plan, assessed the strength of controls for data management, focusing on management information and Power BI data. The audit concluded with a Reasonable Assurance opinion, noting sound systems of governance, risk management, and control, but identified recommendations to address risks related to data governance and business continuity to prevent data compromise. Key findings included the need to update documented procedures for the Management Information (MI) and Power BI (PBI) teams, address the lack of segregation of duties in PBI work, and review access rights to systems. Recommendations were made regarding password policies, generic account usage, and the implementation of a formal version control and change management process for data and reporting. A contingency planning framework for MI and PBI functions was also recommended.

Financial Regulations

The committee was asked to approve the updated Financial Regulations for the West London Waste Authority. These regulations, last reviewed in 2022, have been updated to align with the CIPFA Financial Management Code and to provide greater clarity on roles and responsibilities. The updated regulations incorporate the six principles of the FM Code: Organisational leadership, Accountability, Transparency, Standards, Assurance, and Sustainability. These principles are designed to ensure the financial sustainability of the authority. The regulations detail responsibilities for the Leadership Team, the Treasurer, Chief Executive, Monitoring Officer, and Budget Holders, as well as outlining procedures for capital expenditure, audit requirements, budgeting, reserves, risk management, internal control, preventing fraud and corruption, asset management, treasury management, and IT systems. The document also includes appendices on document retention and financial delegation.