We are proud to provide a sustainable, affordable, clean and safe water supply and to manage and treat the waste water returned to us in a way that protects the environment.
The Board has overall responsibility for maintaining a sound system of internal control and for reviewing its effectiveness. The system is designed to manage rather than eliminate the risk of failure to achieve business objectives. Regular reviews of the effectiveness of the internal control system are carried out in accordance with the 2005 Turnbull Review Group guidance. This process has been in place throughout the year and up to the date of approving the annual report and financial statements. There are inherent limitations in any system of internal control and even the most effective system can only provide a reasonable, and not absolute, assurance against material misstatement or loss.
The Board has reviewed the effectiveness of the Company’s system of internal control, outlined in the Annual Report and Financial Statements. The Internal Audit team manages a process whereby all of the financial controls within the Company are identified and certified by the relevant manager as having operated for the full year. As part of a programme of work (which is agreed with the Audit Committee), these controls are tested throughout the year. A report detailing any areas of concern is produced after each audit. As part of the same process all of the key business risks are identified. Each risk is assessed on an unmanaged basis, the controls which are in place to mitigate the risks are detailed and the risk is then re-assessed after these controls.
Internal Audit’s findings and recommendations are presented to the Audit Committee along with agreed actions. The relative significance of each of the findings is given and the more significant issues are discussed in greater detail. Internal Audit updates progress against any agreed actions until the control weakness is resolved.