RD 02/01

TO REGULATORY DIRECTORS OF ALL
WATER AND SEWERAGE COMPANIES AND
WATER ONLY COMPANIES
21 March 2001

Dear Regulatory Director

REPORTERS AND AUDITORS JOINT WORKSHOP 16

The Director held Joint Workshop 16 with Reporters and Auditors on 13 March 2001.

There was an open forum session with the Director, Philip Fletcher, where the Reporters and Auditors queries and views were presented. This mainly focussed on the Glas issue and competition and Reporters and Auditors took the opportunity to question the Director and also present their views.

A number of detailed issues were discussed at the Workshop.

• Progress on the Ofwat Review of the Regulatory Accounting Guidelines (RAGs).
• The Interim Determination process and its implications for the work of Reporters and Auditors with a particular focus on data quality issues for:
  • Bad debt;
  • Optional metering; and
  • Quality obligations.
• The June Return reporting requirements for drinking water quality and environmental performance.
• The work programme for 2001 and the focus of Reporter effort.

• RAGs1 – 4 are to be updated in order to account for changes in the industry as well as changes in accounting standards. These changes will be reflected in the Reporting Requirements.
• Tables 30 and 31 in the June Return have been clarified and they are now consistent with RAG5.03.
• It was emphasised that communication between the Reporters and the Auditors needed to be maintained in order to establish reporting responsibility and to avoid duplication of work for RAG5. In addition, the submission of a combined Reporter/Auditor RAG5 report was encouraged.
• Data quality issues for bad debt, optional metering and quality obligations were set out in order to focus the Reporters for their reports on the June Return as well as the Interim Determinations.
• Guidance was given on the commentary expected of the Reporters for Quality issues in the forthcoming June Return.

IRENE MILLWARD

Reporters' Coordinator