Guernsey Water Annual Report 2016

Guernsey Water 2016 Annual Report CORPORATE GOVERNANCE annualreport2016 25 information and information on any other matter referred to the board for consideration. The Guernsey Water leadership team is responsible for providing this information to Corporate Services in a timely manner. If a STSB member cannot attend a meeting they receive the agenda and accompanying papers in advance of the meeting and are able to comment on the matters to be discussed. All newly-appointed STSB members have participated in an extensive internal induction programme that introduces them to all the States’ trading entities both incorporated and unincorporated. Performance Evaluation Evaluation of STSB performance will be considered once it has been functioning for sufficient time. The Guernsey Water leadership team commissioned an independent evaluation of its performance in 2016. This consisted of observing the Guernsey Water leadership team meetings and appropriate sub-committee meetings. One- to-one interviews were held with each team member. A summary report and recommendations were presented to the leadership team for consideration and progression. Remuneration The remuneration of the Guernsey Water leadership team consists of basic salary and retirement benefits in line with their grade and standard States of Guernsey employment terms and conditions for civil servants. Remuneration for STSB members is set out in States’ members pay rules and is resolved by the States following recommendation by an independent review panel 19 . Accountability and audit Financial Reporting Our annual report is intended to provide a clear assessment of the performance and prospects of Guernsey Water. We have a comprehensive system for reporting financial results to the STSB. An annual budget is prepared and presented to the STSB for approval. During the year monthly management accounts are prepared with a comparison against budget and prior year. Monthly capital expenditure reports are compared against budget. These reports are complimented by monthly forecasts and are reviewed by the Guernsey Water leadership team and the STSB. Risk management The STSB is responsible for ensuring Guernsey Water is compliant with the States’ risk management directive. The Guernsey Water leadership team is responsible for establishing and maintaining an effective system of internal control that meets the requirements of this directive. While all elements of risk cannot be eliminated the system aims to identify, assess, prioritise and, where possible, mitigate business risks. Although no system of internal control can provide absolute assurance against material misstatement or loss, systems are designed to provide the STSB with reasonable assurance that Guernsey Water assets are safeguarded, transactions are properly authorised and recorded and that material errors and irregularities are either prevented or detected within a timely period. Audit Details of our annual financial audit are set out in the independent auditors’ report within our Annual Report and Financial Statements. Guernsey Water is also subject to internal audit by the States Audit and Risk team. In 2015 this team audited Guernsey Water’s data protection arrangements and follow up actions were completed last year. An audit of our governance and management of capital investment has also been agreed for the first quarter of 2017. Audits are requested by the Guernsey Water leadership team; this is part of our system of internal controls to meet the States’ risk management directive. 13 Resolution ofthe 21st September(2016) Billet d’État No.XXIII 14 Resolution ofthe 27th November(2015) Billet d’État No.XXI 15 Resolution ofthe 21st September(2016) Billet d’État No.XXIII 16 Resolution ofthe 11thMay(2016) Billet d’État No.XV 17 Resolution ofthe 18thMay(2016) Billet d’État No.XVI 18 Resolutionofthe21stSeptember(2016)Billetd’ÉtatNo.XXIII 19 Resolutionofthe26thJanuary(2016)Billetd’ÉtatNo.I,Article10