Agenda and minutes

of the previous meeting held on 17 January 2018 attached.

RESOLVED that the Minutes of the meeting held on 17 January 2018 be signed as a correct record.

Attached, FOR INFORMATION, is a report of the external auditor, Grant Thornton, on progress made in delivering its audit responsibilities to the Devon & Somerset Fire & Rescue Authority.  The report also summarises emerging national issues and developments of potential relevance to fire and rescue authorities.

 

The Committee received for information a report submitted by the Authority’s external

auditor, Grant Thornton, setting out the progress made to date in delivery of its audit

responsibilities to the Devon & Somerset Fire & Rescue Authority (the Authority). The report made reference in particular to the progress made with:

·         The financial statements audit;

·         Value for Money conclusion;

·         Other areas such as the meetings held with finance officers and a local government accounts workshop held in Plymouth on 6 February 2018

The report also covered the results of the interim audit work undertaken and a sector update covering recent Grant Thornton publications, insights from local government sector specialists, reports of interest and accounting and regulatory updates.

 

Peter Barber, representing Grant Thornton, confirmed that, in terms of the interim audit work undertaken, there had been no issues identified.

 

Attached, FOR INFORMATION, are copies of the letters from the Authority Treasurer and the Chair of this Committee in response to the annual letters from Grant Thornton relating to International Financial Reporting Standards (IFRS) ISA240 ISA compliance.

The Committee received for information the letters from the Authority’s Treasurer and the Chair of this Committee in response to the correspondence received  from Grant Thornton  relating to International Financial Reporting Standards (IFRS) ISA240 and seeking confirmation of compliance.

 

The Authority’s external auditor, Grant Thornton, has submitted for consideration an external audit plan for the auditing of the Authority’s 2017/18 financial accounts, a copy of which is enclosed with this agenda.

 

The Committee received for information an external audit plan for the year ending 31

March 2018 from the Authority’s auditors, Grant Thornton. The Plan provided the

scope and timings for the external audit process as required by the

International Standard on Auditing (UK & Ireland) 260. It also identified

issues of materiality and areas of significant risks for the Service, together with Value for Money arrangements.

 

The Committee noted that, for the audit, Grant Thornton would be focussing on the

Service’s significant risks as identified within the report which were:

 

·        The revenue cycle including fraudulent transactions;

·        Management override of controls;

·        The valuation of property, plant and equipment; and,

·        The valuation of pension fund net liability.

There were other risks that had been identified additionally, including employee remuneration and the Firefighters’ Pension Scheme which would also be addressed.

NB.  Councillor Saywell declared a personal, non-pecuniary interest in this item as a Non-Executive Director of Red One Ltd.

 

The external auditor, Grant Thornton, has submitted for consideration its proposed Audit Fee letter for 2018/19, a copy of which is enclosed with this agenda.

 

The Committee received for information from the External Auditor, Grant Thornton,

details of the proposed Audit Fee in 2018/19. The Public Sector Audit Appointment

(PSAA), the body responsible for overseeing the audit contracts for local government

organisations, had prescribed a scale fee based on the point that the auditor would be provided with completed and materially accurate financial statements within agreed timescales.

 

For Devon & Somerset Fire & Rescue Authority in 2018/19, it was noted that the proposed audit fee set by the PSAA was £26k, a reduction of 23% on the previous fee, and that this was fixed for the next five years.  Councillor Wheeler sought an assurance that this would not result in a reduction in the quality of service received from Grant Thornton which was duly given.

Report of the Director of Service Improvement (APRC/18/7) attached.

The Committee received for information a report of the Director of Service Improvement (APRC/18/7) that set out the progress made to date against the approved 2017-18 Internal Audit Plan and which also provided an update on any additional work undertaken.  The report also provided assurance statements for the audits that had been completed to date.

 

Reference was made in particular to the Audit & Review Assurance Tracking System which recorded all of the audit recommendations and agreed actions coming out of key assurance activities.  It was noted that since July 2017, there had been a 56% decrease in open high or high/medium recommendations from 78 to 41.  Based on the work completed to date in 2017-18 and the knowledge form previous years, it was considered that the Devon & Somerset Fire & Rescue Service continued to demonstrate an appropriate level of internal control.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report of the Director of Service Improvement (APRC/18/8) attached.

The Committee considered a report of the Director of Service Improvement (APRC/18/8) that set out the proposed 2018 -19 Internal Audit Plan, which involved a total of 1119 audit days split between strategic reviews, compliance reviews and audit health checks. It was noted that, of the 1119 days, the Devon Audit Partnership would be providing an element of independent scrutiny with 67 days auditing and an IT health check would also be undertaken in 2018/19 of 110 days.  The audit of key financial systems had been increased from 32 to 35 days in view of the appointment recently of a new payroll and pensions provider.

 

RESOLVED that the 2018-19 Internal Audit Plan as set out within report APRC/18/8

be approved.

Report of the Director of Corporate Services (APRC/18/9) attached.

The Committee considered a report of the Director of Corporate Services (APRC/18/9) that set out proposed changes to the Authority’s policy on the Regulation of Investigatory Powers Act (RIPA) (2000) as a result of a recent inspection by the Office of the Surveillance Commissioner.

 

RESOLVED

 

(a)   That the revised Authority Policy for the Regulation of Investigatory Powers Act (RIPA) as set out within Appendix B of report APRC/18/9 be approved;

(b)   That a report reviewing the current RIPA policy be submitted to this committee in twelve months time; and

(c)   That, subject to (a) and (b) above, the report be noted.

Report of the Director of Service Improvement (APRC/18/10) attached.

The Committee received for information a report of the Director of Service Improvement (APRC/18/10) that set out the Service’s performance for the period of April to December 2017 with a focus on quarter 3 of 2017-18. The report highlighted the new format for the performance information which set out a measure status of ‘good performance’, monitor performance’ or negative exception.  This was established through an assessment of the different types of analysis, for example, performance versus the previous year, performance versus the previous quarter and trends and performance against normal variation to give a more rounded picture and which directed focus more effectively on emerging issues.   Where a measure was reported as an exception, a separate report would be provided.

 

Five of the eight measures were showing positive performance whilst three measures were showing negative performance.  This was a declining picture compared to the previous report to the Committee on 17 January 2018.  In terms of the positive performance, the following was noted:

·        fire related deaths remained very low for 2017/18 with three deaths recorded in the year to date and no deaths in quarter 3;

·        Emergency response standards had shown an improvement compared to the same period in 2016/17 for both the reporting quarter and year to date performance with long term trends being positive due to the instigation of the Operational Resource Centre;

·        Fires where people work, visit and in vehicles had also shown an improvement compared to the previous year for both the reporting quarter and year to date, although deliberate fires had shown and upward three year trend.

In terms of the measures showing negative performance:

 

·        Fire related injuries had increased compared to the previous year (2016-17) for both the reporting quarter and year to date.  There was a relatively low number of injuries which meant that a small change in the numbers could show dramatic percentage variations;

·        Fires where people lived had increased compared to the previous year for both the reporting quarter and year to date.  The increase was not dramatic but combined with a negative rolling three year trend, this had been assessed to be an exception.

RECOMMENDATION that, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of  Part 1 of Schedule 12A (as amended) to the Act, namely information relating to the financial and business affairs of any particular person – including the authority holding that information.

 

RESOLVED that, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public were excluded from the meeting for the following item of business on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A (as amended) to the Act, namely information relating to the financial and business affairs of any particular person, including the authority holding that information.

 

Report of the Director of Service Improvement (APRC/18/11) attached.

(An item taken in accordance with Section 100A(4) of the Local Government Act 1972 during which the press and public were excluded from the meeting).

The Committee received for information a report of the Head of Assurance & Planning (APRC/18/11) that set out the progress made to date against the approved 2017-18 internal audit plan and which reported specifically on the ICT Technical audits that had been undertaken and the assurance statements thereon.