Public water body claimed £77,000 for Harvard course

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Harvard UniversityImage source, Getty Images
Image caption,

Harvard is one of the world's most prestigious universities

The body regulating Scottish Water has been accused of "poor governance" with public funds.

The Water Industry Commission for Scotland spent more than £77,000 on a management course at Harvard Business School in the United States for chief operating officer Michelle Ashford.

A further £2,600 was claimed to provide every staff member with a £100 gift card for Christmas.

The expenses were approved by the Scottish government retrospectively.

The report by the Auditor General stated that the "financial management and governance issues found at the commission fall far short of what is expected of a public body".

Further findings in the audit showed that the cost per head claimed for a dinner, attended by its chief executive Alan Sutherland, exceeded £200 per person - despite the approved non-city limit being set at £25.

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Stephen Boyle was critical of the Water Industry Commission for Scotland

It also noted an "unusual" policy where claiming alcohol on expenses was allowed.

A total of £77,350 was claimed for the Harvard Business School course, which included flights to Boston.

Approval was also only sought afterwards for the expenses, despite Scottish government approval in advance being required for any service above £20,000.

Stephen Boyle, Auditor General for Scotland, said: "Value for money should always be central to public bodies' spending decisions, but these findings highlight unacceptable behaviour by senior commission officials in the use of public funds.

"I expect appropriate action to be taken to address the issues reported by the auditor."

'Insufficient discussion'

The commission's annual report for 2022/2023 previously stated that: "The Accountable Officer is taking action to address the weaknesses that led to the oversight of appropriate approval."

The body employs 26 people and it has a statutory duty to promote the interests of Scottish Water's customers.

It is funded via a levy on Scottish Water.

The report stated that management had accepted the auditor's findings and that there had been "insufficient discussion" of expenses.

It added that the commission intend to revise their expenses policy and provide further training for both management and staff.

The Water Industry Commission for Scotland and the Scottish government have been contacted for comment.

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