A formal Business Risk Assurance
Paper and Internal Audit Plan for
South Staffordshire Water PLC, which
seeks to examine and evaluate
the effectiveness of the control
environment and test specific areas
that are considered a priority by the
business, were presented to, and
approved by, the Audit Committee
and the Audit Committee of South
Staffordshire Water PLC.
Progress against this Plan is
monitored by the Audit Committee
and also the Audit Committee
of South Staffordshire Water PLC.
Findings and recommendations
arising from the work performed are
reported to the Audit Committee at
the appropriate time.
The Internal Audit arrangements in
operation are considered appropriate
to the size and complexity of the
Group but the Audit Committee
will continue to review these
arrangements on a regular basis.
– Organisational Structure
A defined organisation structure for
the Group exists with clear lines of
responsibility, accountability and
appropriate division of duties.
The Board sets overall policy and has
delegated the necessary authority
to management and business
departments in order to fulfil that
policy. This is communicated to
employees by way of published
policies and procedures.
The Group’s extensive financial
regulations specify authorisation
limits for individual managers, with
all material transactions being
approved by a member of the
executive team, the Board or by the
Board collectively. In addition, formal
treasury policies are in place. Where
appropriate, commercial and financial
responsibility is clearly delegated
to individual business units and
supported by the Board.
– Risk Management
The Group’s approach to risk balances
the need to manage exposure to risk
whilst at the same time aiming to
improve the Group’s operational and
financial performance.
South Staffordshire Water PLC’s
approach to risk reflects its status
as a regulated and licenced water
undertaking providing an essential
public service. As detailed above, a
strong risk management and control
framework is in place to understand
and manage identified risks.
The non-regulated businesses
operate principally in regulated
environments and, as such, must also
have strong risk control management.
49
Annual Report 2015
• Compliance with Senior
Accounting Officer Regulations
• Compliance with legislation
• Review of South Staffordshire
Water PLC’s proposed customer
tariffs for the 2015/16 year
• Review of Group Treasury and
payment controls