The 2022/23 and 2023/24 audits of the Water Industry Commission for Scotland

PDF Published: Friday 16 May 2025 (PAS062025R01)

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Report
- Membership changes
- Introduction
- Background
  - Leadership changes since December 2023
  - Scottish Government reviews
- Poor governance regarding approval of expenditure
  - Senior staff training
    
    Approvals process
    
    Management training policy for senior staff
  - Taxable benefits to staff
  - Retrospective approval of expenditure
    
    Impact of refusal of retrospective approval
    
    Request for retrospective approval of further non-compliant expenditure
- Weaknesses in financial controls
  - Non-itemised and missing receipts
  - Expenditure on meals
  - Steps taken to improve financial control
- Role of the Scottish Government Sponsorship Team
  - Wider sponsorship arrangements
  - Assurance and the RAG rating system
- Role of the Board
- Former Chief Executive’s departure
  - Departure arrangements
  - Settlement agreement
  - Cost to the public purse
- Other significant issues
  - Organisational culture
  - Remit of WICS
  - Shared services
- Conclusion
- Annexe: Extracts of minutes
Sources

Audit Scotland. (2023, December 20). The 2022/23 audit of the Water Industry Commission for Scotland. Retrieved from https://audit.scot/uploads/docs/report/2023/s22_231220_water_industry_commission.pdf

Audit Scotland. (2024, December 10). The 2023/24 audit of the Water Industry Commission for Scotland. Retrieved from https://audit.scot/uploads/2024-12/s22_241210_water_industry_commission_for_scotland.pdf

The Scottish Parliament. (2024, November 4). Written submission from Alan Sutherland, former Chief Executive, Water Industry Commission for Scotland. Retrieved from https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-public-audit-committee/correspondence/2024/the-202223-audit-of-the-water-industry-commission-for-scotland-former-ce-response-november-2024

Public Audit Committee, Scottish Parliament. (2024). The 2022/23 audit of the Water Industry Commission for Scotland. Retrieved from https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-public-audit-committee/business-items/the-202223-audit-of-the-water-industry-commission-for-scotland

Public Audit Committee, Scottish Parliament. (2025). The 2023/24 audit of the Water Industry Commission for Scotland. Retrieved from https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-public-audit-committee/business-items/the-202324-audit-of-the-water-industry-commission-for-scotland

The Water Industry Commission for Scotland. (2024, September 13). Minutes of the 156th Board meeting of the Water Industry Commission for Scotland on 14 February 2024. Retrieved from https://wics.scot/publications/transparency/board-governance/board-minutes-feb-2024-0

The Scottish Government. (2024, May 21). Public appointment: Member reappointed to Water Industry Commission for Scotland Board. Retrieved from https://www.gov.scot/publications/public-appointment-member-reappointed-to-water-industry-commission-for-scotland-board/

The Scottish Government. (2024, July 16). Public appointment: Interim Members appointed to Water Industry Commission for Scotland Board. Retrieved from https://www.gov.scot/publications/public-appointment-interim-members-appointed-to-water-industry-commission-for-scotland-board/

The Scottish Government. (2024, October 7). Chair of the Board resignation: Cabinet Secretary for Net Zero and Energy to Convener Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-chair-cab-sec-net-zero-energy-to-pac-7-oct-2024.pdf

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The Scottish Government. (2024, July 31). Director-General Net Zero to Convener, Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-dgnz-to-pac-31-july.pdf

The Water Industry Commission for Scotland. (2024, June 11). FOI - Staff training. Retrieved from https://wics.scot/publications/transparency/disclosure-log/2024/foi-staff-training

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The Auditor General for Scotland. (2024, July 26). Stephen Boyle, the Auditor General for Scotland to Convener, Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-ags-to-pac-26-july-2024.pdf

Audit Scotland. (2023, December 7). The 2022/23 audit of the Water Industry Commission for Scotland Annual Audit Report. Retrieved from https://audit.scot/uploads/docs/report/2023/aar_2223_water_industry_commission.pdf

The Scottish Government. (2024, May 3). Director-General Net Zero to Convener, Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-dg-net-zero-to-pac-3-may-2024.pdf

The Scottish Goverment. (2025). Scottish Public Finance Manual (non-salary rewards). Retrieved from https://www.gov.scot/publications/scottish-public-finance-manual/non-salary-rewards/non-salary-rewards/#:~:text=When%20introducing%20non%2Dsalary%20reward,deal%20with%20non%2Dsalary%20rewards

Auditor General for Scotland. (2024, May 14). Auditor General for Scotland, Stephen Boyle, to Convener Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-ags-to-pac-14-may-2024.pdf

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The Scottish Government. (2025, April 2). Director for Energy and Climate Change to Convener, Public Audit Committee. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2025/wics-sg-to-pac-2-april-2025.pdf

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The Scottish Parliament. (2024, April 24). Written submission from Michelle Ashford. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2024/wics-written-submission-michelle-ashford-wics-april-2024.pdf

The Water Industry Commission for Scotland. (2020, December 7). CORPORATE PLAN 2021-27. Retrieved from https://wics.scot/system/files/publications/Corporate%20plan%202021-27.pdf

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Audit Scotland. (2018, December). The 2017/18 audit of the Scottish Social Services Council. Retrieved from https://audit.scot/uploads/docs/report/2018/s22_181220_social_services_council.pdf

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