Control

Review of Effectiveness

Statutory roles of Monitoring Officer and Section 151 Officer to ensure internal control procedures are efficient and effective and are being complied with on a routine basis to ensure legality and sound financial standing.

Authority and Committees and the Chief Officer has a full range of professional officer advice to enable them to carry out their functions effectively and in compliance with statutory requirements. The External Auditor is satisfied with the Council's arrangements (Annual Audit Letter 2002/03).

Internal Audit provide independent and objective assurances across the whole range of the authority's activities.

The External Auditor is able to place reliance on the work of the Internal Audit (Annual Audit Letter 2002/03), which is in turn based on a systematic assessment of the risks facing the Authority in carrying out its functions.

To date the Treasurer has approved the Internal Audit Plan in consultation with the Chief Fire Officer. Arrangements are now being set up for Members to take a fuller role in this process through the Governance Committee.

Fraud awareness policy and publicity is to be further developed.

External Audit provide a further source of assurance by reviewing and reporting upon the Council's internal control processes and any other matters relevant to their statutory functions and codes of practice.

The Annual Audit Letter for 2002/03 commented positively on the Council's service performance and future plans, the management of its financial affairs and standards of financial conduct, and stated that the External Auditor was able to place reliance on the work performed by Internal Audit.

Risk Management policies and procedures are in place with the objective of ensuring that the risks facing the authority in achieving its objectives are evaluated, regularly reviewed and mitigation strategies developed, and these arrangements are approved and reviewed by the Authority following advice from the Clerk, Treasurer and Chief Fire Officer.

The financial risks facing the Authority were assessed in a report from Clerk, Treasurer and Chief Fire Officer which led to the member decision on the level of reserves to be set up under precepting arrangements from 2004/05. Operational risks and the action required to respond to them are covered by the Chief Fire Officer in accordance with statutory guidance. Historically this was assessed at a national level, but is now being assessed more locally under the requirements of the IRMP. Other risk issues (including, for example, legal risks) are assessed by the Clerk. However, more work is needed to bring a risk management policy to the Authority for approval.

Provision of effective, efficient and responsive systems of financial management.

The Authority's financial strategy is expressed within its annual budget and three-year revenue budget projections. Regular monitoring reports are brought to compare progress against the plans and spending intentions expressed by the budget. Procedures have been reviewed to ensure the requirement for earlier completion of final accounts is achieved.

New Financial Regulations were implemented from 1 April 1997. They have worked successfully to date, but it is intended to review their operation during the current financial year.

The Authority's financial policies are demonstrated in practice rather than being formally spelled out, and this issue, too, will be addressed during 2004/05.

The Statement on the system of Internal Financial Control provides the Treasurer's assurance that these controls are in place.

Codes of practice are issued by external bodies in respect of services and processes, with which the Authority is expected to comply.

The Authority has complied with the 2003 CIPFA Code relating to Capital Finance & Treasury Management.

The role of the Standards Committee is to promote and maintain high standards of conduct by councillors and co-opted members.

The Standards Committee has met on four occasions in the last financial year .

Performance monitoring processes are in place to measure progress against objectives and to provide for remedial action where appropriate.

Regular performance monitoring reports are brought to the Finance and General Purposes Committee.

Continued implementation of best value reviews and related improvement plans.

A programme of Best Value reviews is in place. These are reported to the Performance Review Committee.

Review of performance management information and indicators.

Quarterly reports on statutory and local (voluntary) key performance indicators are monitored by the Performance Review Committee. Commentaries on actual performance against targets are provided and published on the Authority's public website. Performance is compared with that in similar (family group) fire and rescue authorities.

Specific reviews are commissioned on an ad hoc basis to test compliance with current and preparedness forthcoming legislation.

An example, in 2003/04, is the review - carried out by the Audit Commission - of the Authority's preparedness to satisfy the requirements of the Freedom of Information Act (2000). A detailed action plan has been produced of processes and procedures that need to be in place by 1 January 2005.

Delivery of services by trained, skilled and experienced personnel.

National standards are in place - and followed locally - for operational personnel. The Authority has appointed appropriately qualified officers to act as Clerk and Treasurer. The Authority has also demonstrated its commitment through recent increases in training budgets, the review of pay structure for support staff and substantial investment in IT facilities to support all staff.

Other relevant reviews carried out by external bodies:

The Audit Commission has been tasked with carrying out a Verification Study of fire and rescue authorities' progress on the Government's `modernisation agenda'. The outcome of this review informs the National Employers and Government on whether sufficient progress has been made by authorities to justify the implementation of the pay award to the firefighters.

Inspection regime no longer in place, but results in 2002/03 were favourable. The Verification Study is being carried out in two phases. The first was carried out in January/February 2004 and the results were reported to the Authority at its May 2004 meeting. The second phase of the Study is being carried out in June/July 2004.