Archived decisions

Hampshire Fire and Rescue Authority

15/03/2005Governance Committee Item 6

30 April 2007

Error! Bookmark not defined.Annual Audit and Inspection Letter 2006/07

Report by the Chief Officer

Contact: David Howells, Director of Corporate Services, telephone: 02380 626835

Summary

Attached is the Audit Commission's Annual Audit and Inspection Letter to the Authority for 2006/07 as Appendix A (for Members of the Committee only). The Authority's external auditors will be at the meeting to formally present the Letter and to answer any questions Members may have. It should be noted that the Letter was also presented at the last meeting of the Finance and General Purposes Committee on 26 April 2007.

This year the Letter takes into account the outcomes of the Fire and Rescue Performance Assessment 2006/07 including:

_ Operational (Service) Assessment - in which the Service was assessed to be `performing strongly'

_ Use of Resources Assessment - in which the Authority was assessed as `performing well' (note: full report is also on this meeting's agenda)

_ Direction of Travel - in which the Authority was assessed as `improving well'

The auditor has given an `unqualified opinion' on the Authority's accounts and value for money.

Overall, this is a very positive Letter and the Authority can be justifiably proud. Work is already underway in determining the actions that can be taken to positively address areas for further improvement. Some comments made in the Letter need be considered by members of the Governance Committee - particularly those regarding the need for member involvement in producing the annual Statement of Internal Control; and, the Committee's independence in terms of its composition. These potential areas for improvement arose from the findings of the `Use of Resources Assessment' and the relevant page 9 from that report is attached as Appendix B.

The Annual Audit Letter and the Use of Resources Assessment are both available electronically on our website.

RecommendationError! Bookmark not defined.

That the Audit Commission's Annual Audit and Inspection Letter 2006/07 be received and noted; and that Members consider, in particular, what response might be made to the comments concerning this Committee's composition and role in relation to the preparation of the Internal Statement of Control.

Equality Impact Assessment

The proposals within this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998, and the Race Relations (Amendment) Act 2000.

Background Information (Section 100D of Local Government Act 1972)

The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report:

_ Audit Commission - Annual Audit and Inspection Letter to Hampshire Fire and Rescue Authority - March 2007

_ Audit Commission Use of Resources Assessment 2006/07 - Hampshire Fire and Rescue Service

Note: The list excludes: (1) published works; and (2) documents that disclose exempt or confidential information defined in the Act.

Key findings and conclusions

Risk management processes and training are becoming embedded and a service continuity framework is being put in place.

Systems of internal control are generally sound but the Governance Committee does not fully meet independence requirements. Further progress needs to be made in embedding appropriate governance arrangements within partnerships and in ensuring a full contribution from members to the production of the Statement of Internal Control (SIC).

The Authority ensures probity and propriety in the conduct of its business but it can strengthen arrangements by promoting counter fraud measures.

Improvements

KLOE 4.1 The authority manages its significant business risks.

To embed the business continuity plan (agreed September 2006) together with an emergency plan to comply with the Civil Contingencies Act.

Establish a formal process for updating the internal risk register at least annually.

Deliver risk awareness training for members and staff and develop a future training plan.

KLOE 4.2 The authority has arrangements in place to maintain a sound system of internal control.

Ensure appropriate governance arrangements in place for partnerships.

Consider composition of Governance Committee to ensure can demonstrate independence with some members who do not serve in other areas such as CMT.

Demonstrate member involvement in preparing SIC (statement of internal control).

KLOE 4.3 The authority has arrangements in place that are designed to promote and ensure probity and propriety in the conduct of its business.

Ensure register of interests in place for all staff and not just SMT.

Demonstrate a strong counter fraud culture is being supported and promoted by members and senior officers.

Ensure a code of conduct is in place for all staff and not just fire fighters.

Be proactive in the provision of training to ensure high standards of ethical conduct amongst members and staff.