1. finance
2. accounting and auditing

HEREFORD & WORCESTER
Fire Authority
Audit and Standards Committee
AGENDA
Wednesday, 21 January 2015
10:30
Conference Suites
Headquarters, 2 Kings Court, Charles Hastings Way,
Worcester, WR5 1JR
1
ACTION ON DISCOVERING A FIRE
1
Break the glass at the nearest FIRE ALARM POINT.
(This will alert Control and other Personnel)
2
Tackle the fire with the appliances available – IF SAFE TO DO SO.
3
Proceed to the Assembly Point for a Roll Call –
CAR PARK OF THE OFFICE BUILDING ADJACENT TO THE CYCLE SHED TO THE
LEFT OF THE ENTRANCE BARRIER TO 2 KINGS COURT.
4
Never re-enter the building – GET OUT STAY OUT.
ACTION ON HEARING THE ALARM
1
Proceed immediately to the Assembly Point
CAR PARK OF THE OFFICE BUILDING ADJACENT TO THE CYCLE SHED TO THE
LEFT OF THE ENTRANCE BARRIER TO 2 KINGS COURT.
2
Close all doors en route. The senior person present will ensure all personnel have left
the room.
3
Never re-enter the building – GET OUT STAY OUT.
GUIDANCE NOTES FOR VISITORS
Security
Upon arrival, visitors are requested to proceed to the barrier and speak to the reception staff
via the intercom. There are parking spaces allocated for visitors around the front of the
building, clearly marked. Upon entering the building, you will then be welcomed and given any
further instructions. In particular it is important that you sign in upon arrival and sign out upon
departure. Please speak to a member of the reception staff on arrival who will direct you to
the appropriate meeting room.
Wheelchair access
The meeting room is accessible for visitors in wheelchairs.
Alternative formats
For information regarding requests for papers in alternative formats, please contact Corporate
Support on 01905 368241 /209 or by email at [email protected]
Smoking is not permitted.
First Aid -please ask at reception to contact a trained First Aider.
Toilets – please ask at reception.
2
ACCESS TO INFORMATION – YOUR RIGHTS. The press and public have the right to
attend Local Authority meetings and to see certain documents. You have:

the right to attend all Authority and Committee meetings unless the business to be
transacted would disclose “confidential information” or “exempt information”;

the right to film, record or report electronically on any meeting to which the public are
admitted provided you do not do so in a manner that is disruptive to the meeting. If
you are present at a meeting of the Authority you will be deemed to have
consented to being filmed or recorded by anyone exercising their rights under
this paragraph;

the right to inspect agenda and public reports at least five days before the date of the
meeting (available on our website: http://www.hwfire.org.uk);

the right to inspect minutes of the Authority and Committees for up to six years
following the meeting (available on our website: http://www.hwfire.org.uk); and

the right to inspect background papers on which reports are based for a period of up to
four years from the date of the meeting.
A reasonable number of copies of agenda and reports relating to items to be considered in
public will be available at meetings of the Authority and Committees. If you have any queries
regarding this agenda or any of the decisions taken or wish to exercise any of these rights of
access to information please contact Committee & Members’ Services on 01905 368209 or by
email at [email protected].
WELCOME AND GUIDE TO TODAY’S MEETING. These notes are written to assist you to
follow the meeting. Decisions at the meeting will be taken by the Councillors who are
democratically elected representatives and they will be advised by Officers who are paid
professionals. The Fire and Rescue Authority comprises 25 Councillors and appoints
committees to undertake various functions on behalf of the Authority. There are 19
Worcestershire County Councillors on the Authority and 6 Herefordshire Council Councillors.
Agenda Papers - Attached is the Agenda which is a summary of the issues to be discussed
and the related reports by Officers.
Chairman - The Chairman, who is responsible for the proper conduct of the meeting, sits at
the head of the table.
Officers - Accompanying the Chairman is the Chief Fire Officer and other Officers of the Fire
and Rescue Authority who will advise on legal and procedural matters and record the
proceedings. These include the Clerk and the Treasurer to the Authority.
The Business - The Chairman will conduct the business of the meeting. The items listed on
the agenda will be discussed.
Decisions - At the end of the discussion on each item the Chairman will put any amendments
or motions to the meeting and then ask the Councillors to vote. The Officers do not have a
vote.
3
4
Hereford & Worcester Fire Authority
Audit and Standards Committee
Wednesday, 21 January 2015,10:30
Agenda
Councillors
Ms P Agar, Mr S C Cross, Ms L R Duffy, Mr W P Gretton, Ms K S Guthrie, Mrs A T Hingley, Mr
R I Matthews, Mr A P Miller, Professor J W Raine, Mr P Sinclair-Knipe, Mr J W R Thomas, Mr
G J Vickery, Mr G C Yarranton,
No.
Item
Pages
Audit Standards Committee Membership List
Ms L Duffy (Chairman), Mr G Yarranton (Vice-Chairman)
Ms P Agar, Mr S Cross, Mr P Gretton, Ms K Guthrie, Mrs A Hingley, Mr
B Matthews, Mr A Miller, Prof. J Raine, Mr P Sinclair-Knipe, Mr J
Thomas and Mr G Vickery.
1
Apologies for Absence
To receive any apologies for absence.
2
Declarations of Interest (if any)
This item allows the Chairman to invite any Councillor to declare an
interest in any of the items on this Agenda.
3
Named Substitutes
To receive details of any Member of the Authority nominated to attend
the meeting in place of a Member of the Committee.
Agenda produced and published by Chief Fire Officer and the Clerk to the Fire and Rescue Authority
For further information contact Corporate Support on 01905 368 241/209/219 or email [email protected]
5
4
7-9
Confirmation of Minutes
To confirm the minutes of the Audit and Standards Committee meeting
held on 24 September 2014.
5
10 - 19
Annual Audit Letter 2013/2014
To present the Annual Audit Letter 2013/14 from the External Auditors,
Grant Thornton UK LLP.
6
Review of Anti Money Laundering Policy
20 - 27
To review the Authority’s Anti-Money Laundering Policy in accordance
with our code of corporate governance to ensure that the policy remains
fit for purpose.
7
28 - 42
Internal Audit Monitoring Report
To provide the Committee with a progress update on the 2014/15 plan
delivery.
8
43 - 48
External Audit Fee Letter
To apprise the Audit and Standards Committee of the audit fee for the
Authority along with the scope and timing of work to be undertaken.
Agenda produced and published by Chief Fire Officer and the Clerk to the Fire and Rescue Authority
For further information contact Corporate Support on 01905 368 241/209/219 or email [email protected]
6
Hereford & Worcester Fire and Rescue Authority
Audit and Standards Committee
24 September 2014
Minutes
Members Present
Mrs L Duffy (Chairman), Mr G Yarranton (Vice Chairman),
Ms P Agar, Mr P Gretton, Mrs A Hingley, Mr B Matthews, Mr T Miller, Mr S
Peters, and Mr G Vickery
1.
Apologies for Absence
Apologies for absence were received from Mr Stuart Cross, Ms K Guthrie,
Prof J Raine and Mr P Sinclair-Knipe.
2.
Named Substitutes
No substitutes were appointed.
3.
Declaration of Interests (if any)
No declarations of interest were made.
4.
Confirmation of Minutes
RESOLVED that the minutes of the Audit and Standards Committee
meeting held on 30 June 2014 be confirmed as a correct record and
signed by the Chairman.
The Chairman announced that item 6, the External Audit Findings Report
2013-2014 would be considered prior to item 5, the Audited Statement of
Accounts. The Chairman explained that item 6 may have a bearing on item
5.
5.
Agenda Item 6. External Audit Findings Report 2013-14 Statement
The report was presented by external auditor Grant Patterson. Mr Patterson
highlighted that there were no significant issues that needed to be brought to
the attention of the Fire Authority and that the required statutory deadlines for
issue and publishing would be met. The Committee were asked to note the
report.
7
RESOLVED that the Committee:
i) note the External Audit Annual Governance Report 2013/14,
ii) approve the letter of representation on behalf of the Authority; and
iii) agree the response to the proposed action plan set out in the
attached report.
[Councillor P. Agar entered the meeting at 10:35]
6.
Agenda Item 5. Audited Statement of Accounts 2013/14
The Treasurer provided a refresh of the presentation delivered at the last Audit
and Standards Committee on 30 June 2014 and presented the Audited
Statement of Accounts for 2013/14 to the Committee.
RESOLVED that the Statement of Accounts 2013/14 be approved.
7.
Draft Annual Governance Statement 2013/14
The Head of Legal Services presented a report compiled during the selfassessment review providing assurances that supported the Annual
Governance Statement. The Draft Statement was put forward for approval.
RESOLVED that the Draft Annual Governance Statement 2013/14 be
approved.
8.
2012 Operational Assessment – Progress Update
The Assistant Chief Fire Officer provide Members with a progress report into
collaborative areas identified for improvement arising from the Operational
Assessment conducted in 2012. Whilst no further assessments of this type
were scheduled, work was continually monitored and formal reports were
submitted on a regular basis for review.
RESOLVED that the Committee:
i) note the progress made in each of the areas identified for
improvement in the 2012 Operational Assessment; and
ii) note that internal Operational Assurance systems were utilised to
carry out further Operational Assessments.
9.
Annual
l
Statement of Assurance 2014-15
The Assistant Chief Fire Officer presented the Draft Statement of Assurance
2014-15 to the Committee.
RESOLVED that the Committee adopt the Draft Statement of
Assurance 2014-15 and approve it for publication.
8
10.
Internal Audit Monitoring Report 2014-15
The Internal Auditor presented the Audit Monitoring Report 2014/15
highlighting that there were no high priority recommendations and that all
assurances had been delivered.
RESOLVED that the Committee note the report.
11.
Constitution
t
Update – Openness of Local Government Bodies
Regulations 2014
The Head of Legal Services presented a report that alerted members to new
regulations that affect public meetings and noted the subsequent changes to
Standing Orders.
RESOLVED that the Committee:
i) note the amendment to paragraph 7.4 of the Standing Orders for
Conduct of Business, as attached at Appendix 1; and
ii) note the requirement for officers to record delegated decisions
taken either:
(a) under a specific express delegation; or
(b) under the general scheme of delegation where the effect of the
decision is to:
i) grant a permission or licence;
ii) affect the rights of an individual; or
iii) award a contract or incur expenditure which materially affects
the Authority’s financial position.
[Councillor Matthews left the meeting at 12:07]
Councillor Duffy noted thanks to Chief Accountant Deborah Randall, the Treasurer
and Auditors for comprehensive and much improved reports.
The meeting concluded at 12:10
Signed: _________________________ Date: ____________
9
Chairman
Hereford & Worcester Fire Authority
Audit and Standards Committee
21 January 2015
Report of the Treasurer
5.
Annual Audit Letter 2013/14
Purpose of report
1.
To present the Annual Audit Letter 2013/14 from the External Auditors, Grant
Thornton UK LLP.
Recommendation
The Treasurer recommends that the Committee notes the Annual Audit Letter
2013/14 from the External Auditors, Grant Thornton UK LLP.
Introduction and Background
2.
Under the Audit Commission Act the Auditors must be satisfied that the
Authority has adequate arrangements in place to secure economy, efficiency
and effectiveness in its use of resources focusing on the arrangements for:

securing financial resilience; and

prioritising resources within tighter budgets.
3.
The Auditors undertake a risk assessment to identify any significant risks which
need to be addressed before the value for money conclusion is reached. The
Auditors assess the Authority’s financial resilience as part of their work on the
value for money conclusion.
4.
The Annual Audit Letter summarises the findings from the 2013/14 audit.
5.
The Audit comprised of two elements:
a. the audit of the Authority’s financial statements; and
b. an assessment of the Authority’s arrangements to achieve value for
money in its use of resources.
Overview
6.
The key messages in the Audit 2013/14 are as follows:
(i)
AU 56/15
The Authority has taken appropriate account of the current economic
climate and the plans are supported by detailed and robust assumptions.
10
(ii)
The Authority has a sound understanding of the current financial
environment and undertakes robust planning for the medium and long
term extending to 2020.
(iii)
There is a strong link between the Authority Plan and the Community
Risk Management Plan.
(iv)
The Authority historically closely monitors its expenditure and does not
exceed budget levels.
(v)
The Senior Management Board provide clear leadership on spending
priorities and demonstrate a clear understanding of the resource
requirements of the Service.
(vi)
Performance management is strong and appropriately challenged.
(vii)
The Authority benchmarks its performance with other authorities to
identify areas for improvement. Efficiencies have been made and
efficiency plans continue to be implemented.
Conclusion/Summary
Audit Opinion and Financial Statements
7.
An unqualified opinion on the Authority's 2013/14 financial statements was
issued on 29 September 2014. The financial statements were considered to
give a true and fair view of the Authority's financial position and that the
financial statements presented for audit were basically sound.
The 2013/14 audit has confirmed that a peer review process has been
introduced in the preparation of the Authority's financial statements.
No significant issues were found with the primary statements in our 2013-14
audit and it has been recommended that the Authority should continue to
develop the improved review process against the requirements of the CIPFA
Code of Practice and incorporate these within future closedown timetables for
the preparation of the Authority's annual financial
Value for Money
8.
The Engagement Lead issued an unqualified Value for Money Conclusion on 29
September 2014 as work did not identify any matters which indicated that the
Authority did not have proper arrangements in place for securing economy,
efficiency and effectiveness.
9.
The Engagement Lead was satisfied on the basis of his work that in all
significant respects Hereford & Worcester Fire and Rescue Authority has put in
place proper arrangements to secure value for money in its use of resources for
the year ending 31 March 2014.
AU 56/15
11
Corporate Considerations
None
Resource Implications
(identify any financial, legal,
property or human
resources issues)
None
Strategic Policy Links
(identify how proposals link
in with current priorities and
policy framework and if
they do not, identify any
potential implications).
Risk Management /
Health & Safety (identify
any risks, the proposed
control measures and risk
evaluation scores).
None
Consultation (identify any
public or other consultation
that has been carried out
on this matter)
None
Equalities (has an
Equalities Impact
Assessment been
completed? If not, why
not?)
N/A
Supporting Information
Appendix 1 – Annual Audit Letter 2013/14 from the External Auditors, Grant Thornton UK LLP
Contact Officer
Martin Reohorn, Director of Finance & Assets / Treasurer
(01905 368205)
Email: [email protected]
AU 56/15
12
The Annual Audit Letter
for Hereford and Worcester Fire and
Rescue Authority
Year ended 31 March 2014
October 2014
Grant Patterson
Director
T 0121 232 5296
E [email protected]
Joan Hill
Audit Manager
T 0121 232 5327
E [email protected]
Kieran Armitage
Associate
T 0121 232 5422
E [email protected]
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
13
Contents
Section
Key messages
Page
3
Appendix
A Summary of reports and audit fees
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
6
14
2
Key messages
Our Annual Audit Letter summarises the key findings arising from the work that we have carried out at Hereford & Worcester Fire & Rescue Authority ('the Authority')
for the year ended 31 March 2014.
The Letter is intended to communicate key messages to the Authority and external stakeholders, including members of the public. Our annual work programme, which
includes nationally prescribed and locally determined work, has been undertaken in accordance with the Audit Plan that we issued 24 March 2014 and was conducted in
accordance with the Audit Commission's Code of Audit Practice, International Standards on Auditing (UK and Ireland) and other guidance issued by the Audit
Commission.
Financial statements
audit (including audit
opinion)
We issued an unqualified opinion on the Authority's 2013/14 financial statements on 29 September 2014, in advance of the
deadline set by the Department for Communities and Local Government. Our opinion confirms that the financial statements
give a true and fair view of the Authority's financial position and of the income and expenditure recorded by the Authority.
We reported our findings arising from the audit of the financial statements in our Audit Findings Report on 24 September 2014
to the Audit & Standards Committee. The key message arising from our audit of the Authority's financial statements was that the
financial statements presented for audit were basically sound.
In 2012/13 we highlighted that the processes for preparing and reviewing your financial statements could be stronger. Our
2013/14 audit has confirmed that a peer review process has been introduced in the preparation of the Authority's financial
statements. We found no significant issues with the primary statements in our 2013-14 audit and have worked with your officers
on a number of disclosures to ensure compliance with the requirements of the CIPFA Code of Practice. We have recommended
therefore that the Authority should continue to develop the improved review process against the requirements of the CIPFA
Code of Practice and incorporate these within future closedown timetables for the preparation of the Authority's annual financial
statements.
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
15
3
Key messages (continued)
Value for Money (VfM) conclusion
We issued an unqualified VfM conclusion for 2013/14 on 29 September 2014.
Overall our work highlighted that the Authority:
• Delivered a surplus against budget of £1.4 million in 2013/14 (£2.2 million in 2012/13). The underspend being
used to support expenditure in future years to provide earmarked reserves for planned future spend or uncertainties.
The level of surplus in year is not at a level to indicate a weakness in financial control.
• Has a medium term financial plan which extends to 2019/20.
• Has undertaken a review of the arrangements of its non front line services and changes have been implemented
resulting in cost savings. These are in addition to those identified in its Community Risk Management Plan.
• Has a memorandum of understanding with Shropshire & Wrekin Fire & Rescue Authority for the provision of fire
control and no issues have been noted in its operation.
At the time of our audit the Authority was in the process of completing its deliberations on its Community Risk
Management Plan (2014/15). The plan had been considered and decisions deferred at the Authority's February and
June 2014 meetings. We recognised the difficult and challenging decisions to be made by the Authority and service and
that decisions need to be taken with due consideration balanced against the longer a decision takes to be made it may
impact upon the Authority's flexibilities for developing alternative arrangements. The plan was reconsidered at the
Authority meeting on 1 October 2014 and a decision was taken which will now be implemented.
On the basis of our work, and having regard to the guidance on the specified criteria published by the Audit
Commission, we are satisfied that in all significant respects the Authority put in place proper arrangements to secure
economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2014.
Whole of Government Accounts
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
We reviewed the consolidation pack prepared by the Authority to support the production of the Government's Whole
of Government Accounts. In line with our instructions we reported that the Authority was below the audit threshold
level set by the National Audit Office and reviewed the worksheets specified for bodies below the audit threshold. We
confirmed that the closing figures for Property, plant & equipment and Pensions liabilities in the consolidation pack
were consistent with those in the Authority's financial statements on the 29 September 2014 in advance of the deadline.
16
4
Key messages
Audit fee
Our fee for 2013/14 was £43,829, excluding VAT which was unchanged from the previous year. Further detail is
included within appendix A.
Looking forward
The Authority continues to face challenges and financial constraints in the coming years in common with other
local government bodies. It is proactive in looking at proposals to work closely with other fire services and
organisations. The benefits and options for closer working with Warwickshire Fire and Rescue Service are being
reviewed by a project team resourced by officers from both the Authority and the Warwickshire service. The
authority has received updates during the work of the project team and a planned reporting schedule is in place.
The authority is exploring the potential of a Joint Property Vehicle which proposes better use of public sector
properties through shared use and the avoidance of duplication of tasks. This concept is also currently being
explored by neighbouring public sector partners. The Authority will consider membership of this Joint Property
Vehicle on receipt of a full business case later this financial year.
It has a medium term financial plan in place. Internal efficiencies and management reductions have been
implemented delivering substantial savings. The proposals of the Community Risk Management Plan have been
considered. The Authority has approved the proposals using some reserves and the Treasurer has confirmed that
the remaining level of reserves held is satisfactory.
The Authority will have to ensure that the implementation of the decisions of the 1 October 2014 Authority
meeting on its Community Risk Management Plan remain on track as the process unfolds whilst maintaining its
services to its prescribed target levels.
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
17
5
Appendix A: Reports issued and fees
We confirm below the fee charged for the audit and confirm there were no fees for the provision of non audit services.
Fees for other services
Fees
Per Audit plan Actual fees
£
£
Audit Fee
43,829
43,829
Total fees
43,829
43,829
Service
Fees £
None
Nil
Reports issued
Report
Date issued
Informing the Audit Risk assessment
December 2013
Audit Plan
March 2014
Audit Findings Report
September 2014
Annual Audit Letter
October 2014
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
18
6
© 2014 Grant Thornton UK LLP. All rights reserved.
'Grant Thornton' means Grant Thornton UK LLP, a limited
liability partnership.
Grant Thornton is a member firm of Grant Thornton International Ltd
(Grant Thornton International). References to 'Grant Thornton' are
to the brand under which the Grant Thornton member firms operate
and refer to one or more member firms, as the context requires.
Grant Thornton International and the member firms are not a
worldwide partnership. Services are delivered independently by
member firms, which are not responsible for the services or activities
of one another. Grant Thornton International does not provide
services to clients.
grant-thornton.co.uk
© 2014 Grant Thornton UK LLP | Annual Audit Letter | October 2014
19
Hereford & Worcester Fire Authority
Audit and Standards Committee
21 January 2015
Report of the Treasurer
6.
Review of Anti-Money Laundering Policy
Purpose of report
1.
To review the Authority’s Anti-Money Laundering Policy in accordance with our
code of corporate governance to ensure that the policy remains fit for purpose.
Recommendation
The Treasurer recommends that the revised Anti-Money Laundering Policy be
approved.
Introduction and Background
2.
The Authority’s Code of Corporate Governance is based on national guidance
from CIPFA/Solace and endorsed by the LGA designed to ensure the highest
standards of governance within local government.
3.
A key element of the governance framework is to create an environment in
which staff, aim to maintain the high standards of conduct which currently exist
within the Authority by preventing criminal activity through money laundering.
4.
As part of this approach the Authority has adopted an Anti-Money Laundering
Policy.
5.
The current policy was approved and adopted in 2006.
6.
The opportunity has been taken to review the policy and ensure its compliance
with both updated legislation and the Authority’s management structure.
Conclusion/Summary
7.
The Anti-Money Laundering Policy is an important element in our approach to
corporate governance. We will continue to remind staff of the policy through
periodic items in the service bulletin.
AU 57/15
20
Corporate Considerations
Resource Implications (identify
any financial, legal, property or
human resources issues)
Strategic Policy Links (identify
how proposals link in with current
priorities and policy framework
and if they do not, identify any
potential implications)
Legal - para.4
Adhering to principles of good governance
underpins delivery of ‘Our Strategy’
Risk Management / Health &
Safety (identify any risks, the
proposed control measures and
risk evaluation scores)
Consultation (identify any public
or other consultation that has
been carried out on this matter)
Equalities (has an Equalities
Impact Assessment been
completed? If not, why not?)
Supporting Information
Appendix 1 – Anti-Money Laundering Policy
Background papers – Code of Corporate Governance
Contact Officer
Martin Reohorn, Treasurer
(01905 368608)
Email: [email protected]
AU 57/15
21
Service
Policy
Instruction
1.00
Anti-Money Laundering
Policy
Title
Anti-Money Laundering Policy
Status
Draft
Document Version
Version 1.01
Author
Deborah Randall
Sponsor
Martin Reohorn
Department
Finance
Date Approved by SMB
5 Years
Review frequency
Next Review
Version History
Version
Date
acceb7ba-6ea2-488d-9216-16591d69a257.docx
Description
22
Page 1 of 6
Executive Summary
This policy provides guidance to all employees of Hereford and Worcester Fire Authority and
aims to maintain the high standards of conduct which currently exist within the Authority by
preventing criminal activity through money laundering. The Policy sets out the procedures
which must be followed (for example the reporting of suspicions of money laundering
activity) to enable the Authority to comply with its legal obligations.
This Policy sits alongside the Authority’s Strategy against Fraud and Corruption and Whistle
Blowing Policy.
Failure by a member of staff to comply with the procedures set out in this Policy may lead to
disciplinary action being taken against them.
Risk Critical Information (if applicable)
acceb7ba-6ea2-488d-9216-16591d69a257.docx
23
Page 2 of 6
Contents
1
Introduction ...................................................................................................................... 4
2
Scope of the Policy .......................................................................................................... 4
3
What is Money Laundering? ............................................................................................. 4
4
Managing Money Laundering .......................................................................................... 5
acceb7ba-6ea2-488d-9216-16591d69a257.docx
24
Page 3 of 6
Anti-Money Laundering Policy
1.
Introduction
There have been changes to legislation concerning money laundering (the Proceeds
of Crime Act 2002 and Money Laundering Regulations made under the Act). These
have broadened the definition of money laundering and increased the range of
activities caught by the statutory framework. As a result, obligations now impact on
certain areas of Local Authority activity and require Local Authorities to establish
internal procedures to prevent the use of its paid-for services for money laundering
purposes.
2.
Scope of the Policy
2.1
This Policy applies to all employees of the Fire and Rescue Authority and aims to
maintain the high standards of conduct which currently exist within the Fire and
Rescue Authority by preventing criminal activity through money laundering. The Policy
sets out the procedures which must be followed (for example, the reporting of
suspicions of money laundering activity) to enable the Fire and Rescue Authority to
comply with its legal obligations.
2.2
Familiarity with (and reference to) this Policy may alert the employee to the risk of the
Fire and Rescue Authority receiving sums of money in circumstances which give rise
to suspicion of or knowledge of, money laundering. More detailed Financial
Instructions will be provided for Officers most routinely dealing with cash-based
transactions and, where necessary, employees should discuss with their Line
Managers any more formal training requirements.
3.
What is Money Laundering?
3.1
In general terms money laundering is the disposal of money from criminal activities on
legitimate activities – a way to dispose of cash which has been inappropriately raised
for example, cash obtained from a criminal activity, such as selling stolen goods, being
spent on the purchase of a car.
3.2
Employees would (obviously) be caught by the law relating to money laundering if they
were actively involved in money laundering. However, in addition, employees may
also be caught by the law if they suspect money laundering has taken place when
receiving cash from a third party to pay for goods/services and then to do nothing
about it.
3.3
Whilst the risk to the Fire and Rescue Authority of contravening the law is low, it is
important that all employees are aware of their legal responsibilities: criminal
sanctions may be imposed for breaches of the law.
4.
Managing Money Laundering
4.1
The Fire and Rescue Authority has nominated the following to receive disclosures
about money laundering activity:
acceb7ba-6ea2-488d-9216-16591d69a257.docx
25
Page 4 of 6
Martin Reohorn – Director of Finance and Assets, Fire Authority Headquarters,
Worcester (01905 368205).
Deborah Randall – Chief Accountant, Fire and Rescue Authority Headquarters,
Worcester (01905 368301).
4.2
If an employee is concerned about possible money laundering or the impact of these
legal requirements on their duties, they should check the Financial Instructions and/or
contact one of the above Officers.
4.3
Where an employee has a suspicion or is aware, that money laundering may have
taken place (or may be taking place); they must telephone one of the above Officers
for guidance as soon as possible, regardless of the amount being offered. In such
circumstances, no money may be taken from anyone until this has been done.
4.4
If the money offered is less than £2,000 in cash and is payment or part payment,
towards goods/services provided by the Fire and Rescue Authority or customers for
whom the Fire and Rescue Authority carries out work, then if an employee has no
reason to suspect or know that the money being offered is the outcome of money
laundering, there is no need to call.
4.5
However, if the money offered is greater than £2,000, then personnel are required to
contact the Director of Finance and Assets or the Chief Accountant to the Fire and
Rescue Authority in all instances.
4.6
If, however, the money offered in cash is £2,000 or more, then payment must not be
accepted until the employee has received guidance, even if this means that the person
concerned has to be asked to wait, giving them the reason for the need for the delay.
There is no problem with being honest about this, as the Fire Authority and employees
are entitled to ensure they do not breach the law.
4.7
Where possible, employees should take the name and address of the person offering
the payment, as would usually be done for preparing a receipt and ensure the Officer
as indicated in Section 4.1 is telephoned in private before taking any money. If money
is subsequently taken, ensure that a receipt is issued bearing the name and address of
the person paying.
4.8
On no account should a cash payment of more than £5000 be accepted.
4.9
When telephoning the Officer as indicated in Section 4.1, the employee should have
the relevant details, which should include the name and address of the person offering
the payment, the amount of cash being offered, any reasons which may have been
given about the holding or possession of such amount of cash and the reasons for the
employee’s knowledge or suspicion of money laundering activity.
.
4.10 In addition, employees should ask if the person offering payment is carrying with them
any appropriate form of identification that will satisfactorily prove identity and address.
In some cases the reasons for having a large amount of cash together with the
process of identification will be acceptable but this is a decision which is to be made by
the Officer as indicated in Section 4.1.
4.11 Appropriate records of the whole process must be kept, including the name of the
person offering the cash, the amount of cash offered, the telephone conversation with
the Officer as indicated in Section 4.1 together with a copy of the identification
documentation provided (or written full details including all serial numbers).
acceb7ba-6ea2-488d-9216-16591d69a257.docx
26
Page 5 of 6
4.12 A copy of the records must be sent to the Officer as indicated in Section 4.1, marked
as confidential. That Officer will be responsible for retaining such records keeping
them under review for any discernible trends or problems and reporting to the National
Criminal Intelligence Service (NCIS) as appropriate.
acceb7ba-6ea2-488d-9216-16591d69a257.docx
27
Page 6 of 6
Hereford & Worcester Fire and Rescue Authority
Audit and Standards Committee
21st January 2015
Report of the Internal Auditor
7.
Internal Audit Monitoring Report 2014/15
Purpose of report
1.
To provide the Committee with a progress update on the 2014/15 plan
delivery.
Recommendation
The Treasurer recommends that the report is noted.
Introduction and Background
2.
The Authority is responsible for maintaining or procuring an adequate and
effective internal audit of the activities of the Authority under the Accounts and
Audit (England) Regulations 2011.
This includes considering, where
appropriate, the need for controls to prevent and detect fraudulent activity.
These should also be reviewed to ensure that they are effective. This duty
has been delegated to the Treasurer and Internal Audit is provided by
Worcestershire Internal Audit Shared Service (WIASS). Management is
responsible for the system of internal control and should set in place policies
and procedures to ensure that the system is functioning correctly.
Objectives of Internal Audit
3.
The Public Sector Internal Audit Standards 2013 defines internal audit as: “an
independent, objective assurance and consulting activity designed to add
value and improve an organisation’s operations. It helps an organisation
accomplish its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control and
AU 59/15
28
governance processes”.
WIASS is committed to conforming to the
requirements of the Public Sector Internal Audit Standards.
Aims of Internal Audit
4.
5.
The objectives of WIASS are to:

Examine, evaluate and report on the adequacy and effectiveness of
internal control and risk management across the Fire Service and
recommend arrangements to address weaknesses as appropriate;

Examine, evaluate and report on arrangements to ensure compliance
with legislation and the Fire Service’s objectives, policies and
procedures;

Examine, evaluate and report on procedures that the Fire Service’s
assets and interests are adequately protected and effectively
managed;

Undertake independent investigations into allegations of fraud and
irregularity in accordance with Fire Service’s policies and procedures
and relevant legislation; and

Advise upon the control and risk implications of new systems or other
organisational changes.
Internal audit has worked with external audit to try and avoid duplication of effort,
provide adequate coverage for the 2014/15 financial year so that an internal
audit opinion can be reached and support External Audit by carrying out reviews
in support of the accounts opinion work.
Audit Planning
6.
To provide audit coverage for 2014/15, an audit operational programme to be
delivered by WIASS was discussed and agreed with the Authority’s Section 151
Officer and Treasurer, Chief Accountant as well as External Audit and this was
approved at the 30th June 2014 meeting. The audit programme provides a total
audit provision of 111 audit days; 100 operational and 11 management days.
7.
A small amendment to the draft plan was requested by the Chief Fire Officer
during Committee. Subsequently, the plan has been amended to include an
‘Operations’ audit. This has been achieved by reducing the ‘Equality and
Diversity’ audit budget from 9 to 5, reducing the ‘follow up’ budget from 7 to 5
AU 59/15
29
and deferring a low risk ‘Communications and Media’ audit to next year. These
actions provide a budget of 15 days, contained within the existing plan, to deliver
an audit with regard to ‘Operations’ without compromising the overall audit
coverage.
8.
Additional assistance has also been requested as part of the payroll transfer to
Warwickshire County Council. This extra work has been agreed with The
Treasurer with the agreement that a couple of days will be provided to the Fire
Service with no charge but anything in excess of this will be billed separately to
the existing contract. Any additional days and fee will be agreed beforehand.
Audit Delivery
9.
Six audits that have been finalised since the 24thSeptember Committee for the
2014/15 Audit Plan are reported below.
10.
To assist the Committee to consider assurance on the areas of work
undertaken, an overall assurance level is given to each audit area based on a
predetermined scale. Also, the findings are prioritised into ‘high’, ‘medium’ and
‘low’ within audit reports.
2014/15 Audits:
Equality and Diversity
11.
The review assessed whether control objectives of Equality and Diversity
arrangements were being achieved including whether there is an Equality and
Diversity Policy/Strategy that has been aligned to and encompasses all statutory
requirements, equality and diversity is promoted throughout the Service to
enhance awareness, training is provided, and, the Service actively promotes
external equality and diversity where practical to include all members of the
public in safety advice. The review did not consider the contents or the
effectiveness/impact of literature/media items presented to the public.
12.
The review found there was generally a sound system of control with awareness
of equality and diversity being actively promoted throughout the service not only
to employed officers but also includes volunteers and Members. The Service
has an Equality and Diversity Advisory Group that is chaired by the Chief Fire
Officer from which has been created a Positive Action Sub Group that actively
seeks to gain representation from different areas of the community. The Positive
Action Sub Group makes recommendations and puts forward suggests to the
Equality and Diversity Advisory Group for consideration. All documents in
relation to equality and diversity have been reviewed to ensure that they meet
AU 59/15
30
the requirements of the Equality Act 2010 and Hereford and Worcester Fire and
Rescue Service also produce a yearly Employee Monitoring Report that is
published on their website. One area where controls could be strengthened is in
relation to the accuracy of data. There were no ‘high’ priority recommendations
reported in regard to this audit.
Current Position: Final Report issued 3rd October 2014
Assurance: Significant
Risk Management
13.
The review was a full system audit concentrating on areas of risk management
including the identifying, managing, recording and reporting of risk using the risk
register(s) and the compilation and use of the risk register. The review was not
considering the details of individual risks or their risk assessment but aimed to
provide assurance on areas such as comprehensive procedures existed for
identifying and assessing areas of current and new risk (including shared
services); risks are managed effectively by both officers and members;
monitoring and review of risks was undertaken regularly the outcome of which is
reported, and, the risk management process was embedded throughout the
service and used as a tool for informed decision making.
14.
The review found there was a generally sound system of internal control in
place with quarterly reviews of risk registers that feed into Departmental
Management Meetings and Senior Management Board Meetings. A system
for highlighting those officers who have and have not reviewed their risk
registers has been placed on sharepoint to help easily identify those
responsible officers that need to be chased. However, there are some areas
such as the identifying of new risks and partnership/shared service risks
where controls could be strengthened to help further embed the risk
management process and develop it into a more useful tool for informed
decision making. There were no ‘high’ priority recommendations reported in
regard to this audit.
Current Position: Final Report issued 31st October 2014
Assurance: Significant
Debtors
15.
The review was a full system audit. The audit did not consider the
appropriateness of any recharges made or the level of recharging undertaken.
AU 59/15
31
16.
The audit found there has been adequate segregation of duties over
processes with debtor invoices raised promptly by the finance team. Debtor
income, including the recharging of services, has been accurately and
promptly recorded in the general ledger. Credit notes have not been raised for
the purpose of writing off bad debts. There was evidence that recovery action
was taken to recover the small amount of outstanding debt owed to the
authority after 30 and 60 days of the invoice date, although this was not
currently in line with the Service Policy Instruction for Accounts Receivable
and Debt Management, which is due for revision. This Policy Instruction
needs to be reconsidered to identify if it is still appropriate to meet the
authority’s debt management requirements, and to ensure it aligns with the
TechnologyOne financial system’s capabilities. In addition, as part of the
organisational wide review of all Service Policy Instructions, the Chief
Accountant will feed into the revision of the ‘Cost Recovery for Special
Services’ policy within Operations Support, to ensure invoicing information
continues to meet the requirements of the finance team. An example of good
practice being undertaken by the finance team is the current development of a
‘calendar’ file to capture all agreements for which debtor invoices require
raising periodically, including the supporting evidence, which will strengthen
controls and resilience within the process. There were no ‘high’ priority
recommendations.
Current Position: Final Report issued 4th December 2014
Assurance: Significant
Creditors
17.
The review was a full system audit concentrating on the control environment
from the point the purchase order was raised to the point the payment was
recorded in the ledger. The audit did not cover the procurement process.
18.
The audit found goods and services were correctly authorised and there was
clear segregation of duties between the requisition and authorisation of goods
and services. BACs payment controls were in place, and the TechnologyOne
system includes standard reporting to meet the requirements of Her Majesty’s
Revenue and Customs’ Real Time Information reporting, which is used by the
authority to fulfil its obligations. The use of the TechnologyOne system could
be further improved by using the notes facility more consistently to increase
transparency, accountability and efficiency.
19.
Payments tested during the audit were found to have been made within the 30
days of receipt of the invoice to the finance team, in line with ‘The Late
Payment of Commercial Debts 2013’ Regulations. The most recent report
(September 2014) showed performance below the authority’s 98% target,
AU 59/15
32
although the finance team demonstrated that consideration had been given to
the situation in each area performing below target and there was evidence of
recent significant staffing change in each of them. A pragmatic approach had
been applied for these areas to allow time for the new structures to bed in and
their performance remains under review. Appropriate action will be taken if
performance does not increase. Payment performance and monitoring the
BVP8 indicator will become part of the role of the Finance Assistant (Accounts
Payable) who is relatively new in post. Since joining emphasis has been on
ensuring the Officer is able to undertake the normal, day to day, creditor
duties. There were no ‘high’ priority recommendations.
Current Position: Final Report issued 4th December 2014
Assurance: Significant.
Budgetary Setting and Main Ledger
20.
The review was a full system audit concentrating on the control objectives in
regard to the budget setting process and budgetary control system for
2014/15.
21.
The audit found budgetary responsibility has been clearly delegated to budget
holders and there was a robust budget setting process in place based on
accurate information, in which budget holders are supported. Budget
monitoring takes place on a monthly basis based on adequate, accurate
information being provided to budget holders by the finance team. Budget
holders have stated this approach assists them to fulfil their responsibilities.
All budget holders have been trained in using the TechnologyOne finance
system for reporting purposes. Budget variations, including under spends,
are identified through the monthly budget surgeries between budget holders
and the Chief Accountant, and these are investigated with appropriate action
taken to provide an accurate ongoing picture of final budget outturn for the
year. One area which requires consideration is the Service Policy Instruction
relating to budget setting and monitoring (Financial Management). This has
not been updated since April 2001 and policies and practise are no longer
aligned. Although this does not impact directly on the good practise that is
currently operating it does moderately increase risk in this area as this Service
Policy Instruction impacts on a number of areas of the budget control
environment. All feeder systems were found to interface with the general
ledger accurately and had been fully reconciled and authorised. There were
no ‘high’ priority recommendations reported.
Current Position: Final Report issued 4th December 2014
Assurance: Significant
AU 59/15
33
Payroll
22.
The review was a full systems audit that concentrated on the Payroll system and
included the documents and information from the point that it was received by
the Payroll Section up to the transfer of data to the Fire Service’s financial
ledger. The audit did not cover the controls over the calculation of pension
payments carried out by Worcestershire County Council, access controls
operated by a third party, or, any Service Level Agreement between the Fire
Service and a third party.
23.
The audit found generally a sound system of internal control in place and the
payroll team is providing a good service. Starters and leavers are only
actioned upon proper authorisation, adjustments to pay have appropriate
supporting documentation and all statutory and pension deductions had been
correctly calculated. Testing of the GARTAN system did not find any material
errors in the data that had been input into the system from the log sheets held
at the Fire Stations.
24.
Hereford and Worcester Fire and Rescue Service will be changing their
payroll system provider from 1st April 2015.The setting up of the new data
base and the transfer of information were well advanced at the time of the
audit to enable three parallel runs to be completed prior to this date. Although
there is risk associated with such a change it will provide extra resilience
within the payroll team. Internal Audit has been engaged as part of this
process providing advice and guidance where appropriate. There were no
‘high’ priority recommendations.
Current Position: Final Report issued 17th December 2014
Assurance: Significant
25.
Summary table of the 2014/15 finalised audits and assurance levels.
Audit
Assurance Level
2014/2015
Equality and Diversity
Significant
Risk Management
Significant
Debtors
Significant
Creditors
Significant
AU 59/15
34
Budgetary Setting and Main Ledger
Significant
Payroll
Significant
2014/15 Audits:
26.
An audit that has been completed but not finalised since the 24thSeptember
Committee for the 2014/15 Audit Plan is reported below.
Documentation Services and Data Security
27.
The review was a “critical friend” exercise which complemented a recent
Public Services Network (PSN) audit that was undertaken. As a result of the
PSN audit the authority is currently working towards the development of a
proposed improvement plan. In addition the authority was already aware of
some of the weaknesses identified prior to the PSN audit and will be working
towards improving these as part of the overall improvement plan. Therefore a
“critical friend” approach was more suited for this particular piece of internal
audit work so that progress could be identified.
28.
The audit did not include electronic access to data as controlled by the ICT
department.
29.
Development areas where further work will enhance the overall security
includes the update of service policy instructions, procedures and related
documents, the provision of training and promotion of data security to give a
consistent approach across the organisation, the provision of clear data
retention schedules, and, a nominated Information Risk Officer. The Head of
Corporate Services has taken responsibility for the development areas and is
plan Fire and Rescue Service is working to
Current Position: Draft Report issued 25th November 2014
Assurance: N/a as critical friend audit.
30.
As the audits are finalised update reports will be brought before Committee
along with an extract of any ‘high’ priority recommendations. Finalised reports
will be provided in their entirety to the Chairperson of the Committee for perusal
on request. Follow ups are planned to take place during January 2015 for the
Stock and Operational Logistics audit completed during 2013/14.
AU 59/15
35
31.
Appendix 1 provides the Committee with a breakdown of 2014/15 internal audit
plan delivery to date.
32.
Appendix 2 provides the Committee with a breakdown of the ‘high’ priority
recommendations that have been reported in respect of audits where the audit
has been completed and final report issued. Also included are the definitions
used to decide audit recommendation priority and overall assurance.
Conclusion/Summary
33.
Operational progress against the Internal Audit Plan for 2014/15 remains steady
with a clear plan of delivery to the end of March 2015. Dates for the remaining
audits have either been arranged or are in the process of being agreed to
ensure the timely completion of the audit plan.
34.
The three year contractual agreement to deliver internal audit services for the
Fire and Rescue Service came to an end on the 31st December 2014 but with a
long standing agreement that we would complete the programme by the end of
March 2015.
35.
During December 2014 formal negotiations were undertaken between The
Treasurer and the Worcestershire Internal Audit Shared Service Manager in
regard to the future provision of the internal audit provision. The outcome of the
negotiations has resulted in an agreement that the Fire and Rescue Service will
join as a full partner in the shared service from 1st April 2015. WIASS is
delighted to continue to provide the internal audit service for the Fire and
Rescue Service and welcome them as a partner.
36.
I would like to take this opportunity to report how we have enjoyed working with
the Fire and Rescue Service over the past three years, and, formally thank the
Fire and Rescue Service for the professionalism, assistance and understanding
extended to me and my team in the delivery of the audit programmes. We now
look forward to working in partnership with the Fire and Rescue Service in the
future.
AU 59/15
36
Corporate Considerations
Resource Implications
(identify any financial,
legal, property or human
resources issues)
There are financial issues that require consideration as
there is a contract in place but not fully detailed in this
report.
Strategic Policy Links
(identify how proposals
link in with current
priorities and policy
framework and if they do
not, identify any potential
implications).
None
Risk Management /
Health & Safety (identify
any risks, the proposed
control measures and risk
evaluation scores).
Yes, whole report.
There are legal issues e.g. contractual and procurement
that require consideration but are not fully detailed in this
report as they are contained within the contract.
Consultation (identify any N/A – no policy change is recommended
public or other consultation
that has been carried out
on this matter)
Equalities (has an
Equalities Impact
Assessment been
completed? If not, why
not?)
N/A
Supporting Information
Appendix 1 – 2014/15 Internal Audit Plan delivery summary
Appendix 2 – ‘High’ priority recommendations for completed audits including
AU 59/15
37
definitions
Contact Officer
Andy Bromage
Service Manager - Worcestershire Internal Audit Shared Service
(01905 722051)
[email protected]
AU 59/15
38
Appendix 1
FIRE AND RESCUE SERVICE
Audit Plan for 2014/15
Service Area
System
Anticipated
Days
Preferred
Timing
13
Final Report
issued 17/12/14
8
Final Report
issued 4/12/14
Debtors
5
Final Report
issued 4/12/14
Main Ledger & Budgetary Control (and
Training Budget)
8
Final Report
issued 4/12/14
IT Audit
10
Q4
Risk Management (Health Check)
5
Final
Report31/10/14
Corporate Governance (Document Retention
Services)
8
Draft Report
issued 12/11/14
10
Q4
7
Ongoing
Communications and Media
(Deferred to
2015/16 as replaced by Operations audit which was
included part way through year)
0
n/a
Equality and Diversity
5
Final Report
issued 3/10/14
Operations
15
Ongoing
Follow Ups
5
2014/15
Advice & Guidance
1
2014/15
Audit Committee & Management Reporting
11
2014/15
Main Systems
Payroll & Pensions incl. GARTAN system
Accountancy
and
Finance
Creditors
Systems
Corporate
Governance
System
/ Transformational Planning
Management
Building Maintenance
Arrangements
General
Total Contracted Days
111
AU 59/15
39
Appendix 2
Audit Reports 2014/15
Definition of Audit Opinion Levels of Assurance (for information)
Opinion
Full
Assurance
Definition
The system of internal control meets the organisation’s objectives; all of the expected system controls tested are in place and are operating
effectively.
No specific follow up review will be undertaken; follow up will be undertaken as part of the next planned review of the system.
Significant
Assurance
There is a generally sound system of internal control in place designed to meet the organisation’s objectives. However isolated
weaknesses in the design of controls or inconsistent application of controls in a small number of areas put the achievement of a limited
number of system objectives at risk.
Follow up of medium priority recommendations only will be undertaken after 6 months; follow up of low priority recommendations will be
undertaken as part of the next planned review of the system.
Moderate
Assurance
The system of control is generally sound however some of the expected controls are not in place and / or are not operating effectively
therefore increasing the risk that the system will not meet it’s objectives. Assurance can only be given over the effectiveness of controls
within some areas of the system.
Follow up of high and medium priority recommendations only will be undertaken after 6 months; follow up of low priority recommendations
will be undertaken as part of the next planned review of the system.
Limited
Assurance
Weaknesses in the design and / or inconsistent application of controls put the achievement of the organisation’s objectives at risk in many
of the areas reviewed. Assurance is limited to the few areas of the system where controls are in place and are operating effectively.
Follow up of high and medium priority recommendations only will be undertaken after 6 months; follow up of low priority recommendations
will be undertaken as part of the next planned review of the system.
No
Assurance
No assurance can be given on the system of internal control as significant weaknesses in the design and / or operation of key controls
could result or have resulted in failure to achieve the organisation’s objectives in the area reviewed.
Follow up of high and medium priority recommendations only will be undertaken after 6 months; follow up of low priority recommendations
will be undertaken as part of the next planned review of the system.
AU 59/15
40
Definition of Priority of Recommendations
Priority
H
Definition
Control weakness that has or is likely to have a significant impact upon the achievement of key system, function or process
objectives.
Immediate implementation of the agreed recommendation is essential in order to provide satisfactory control of the serious risk(s)
the system is exposed to.
M
Control weakness that has or is likely to have a medium impact upon the achievement of key system, function or process objectives.
Implementation of the agreed recommendation within 3 to 6 months is important in order to provide satisfactory control of the risk(s)
the system is exposed to.
L
Control weakness that has a low impact upon the achievement of key system, function or process objectives.
Implementation of the agreed recommendation is desirable as it will improve overall control within the system.
AU 59/15
41
‘High’ Priority Recommendations reported
With the audits that have been finalised since the last Committee (24 th September 2014) there have been no ‘high’ priority
recommendations reported.
AU 59/15
42
Hereford & Worcester Fire Authority
Audit and Standards Committee
21 January 2015
Report of the Treasurer
8.
External Audit Fee 2014/15
Purpose of report
1.
To apprise the Audit and Standards Committee of the audit fee for the Authority
along with the scope and timing of work to be undertaken.
Recommendation
The Treasurer recommends that the report be noted.
Introduction and Background
2.
Grant Thornton (UK) LLP has been appointed by the Audit Commission to act
as auditors for Hereford and Worcester Fire and Rescue Authority.
3.
The Commission continues to determine the scale fee for Audit work to secure
significant reductions in the cost of audit services. Together with further savings
achieved through the Commission’s own internal efficiencies, they are expecting
to continue to pass on reductions of up to 40% in audit fees from 2014/15.
Scale Fee
4.
The scale fee is defined as the fee required by auditors to carry out the work
necessary to meet statutory responsibilities in accordance with the Code of
Audit Practice.
5.
The Authority’s scale fee for 2014/15 is £43,829 which is the same audit fee set
for 2013/14.
6.
Fees will be reviewed and updated as necessary as the audit work progresses.
7.
Fees will be billed quarterly in advance.
8.
The scale fee excludes any work requested by the Authority that Grant Thornton
may agree to undertake outside of the audit code. Each additional piece of work
will be separately agreed and a detailed project specification and fee agreed
with the Authority.
AU 58/15
43
Outline Audit Timetable
9.
Audit planning and interim audit procedures will be undertaken in the spring of
2015. Upon completion of this phase of work a detailed audit plan setting out
findings and details of audit approach will be issued. Final accounts and work
on the Value for Money Conclusion will be completed in July/August 2015 and
work on the whole of government accounts return in September 2015.
Phase of Work
Timing
Outputs
Audit planning and interim
audit
January to March 2015
Audit Plan
Final accounts audit
Julyto September 2015
Report to those charged
with governance
Value for Money
Conclusion
January to September
2015
Report to those charged
with governance
Whole of government
accounts
September 2015
Opinion on the Whole
Government Accounts
(WGA) return
Annual audit letter
October 2015
Annual audit letter to the
Authority
AU 58/15
44
Corporate Considerations
Resource Implications
(identify any financial, legal,
property or human resources
issues)
Fees (see paras 4 – 8)
Strategic Policy Links
(identify how proposals link in
with current priorities and
policy framework and if they
do not, identify any potential
implications).
None.
Risk Management / Health & None.
Safety (identify any risks, the
proposed control measures
and risk evaluation scores).
Consultation (identify any
public or other consultation
that has been carried out on
this matter)
None.
Equalities (has an Equalities
Impact Assessment been
completed? If not, why not?)
N/A
Supporting Information
Appendix 1 – Grant Thornton UK LLP – Planned Audit Fee for 2014/15 letter dated 31
March 2015
Contact Officer
Martin Reohorn, Treasurer
(01905 368205)
Email: [email protected]
AU 58/15
45
46
47
48