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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- 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
- Membership changes
- Introduction
- Background
- Poor governance regarding approval of expenditure
- Weaknesses in financial controls
- Role of the Scottish Government Sponsorship Team
- Role of the Board
- Former Chief Executive’s departure
- Other significant issues
- 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

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