Professional Documents
Culture Documents
ANNEX
Contents
Section Page
2 Audit Opinion 2
3 Executive Summary 2
4 Background 4
1 Details of Audit
The audit review of Bucks Fire & Rescue Service - Core Financial Controls
formed part of the agreed audit programme for 2005/06. The review was
carried out during November 2005.
The purpose of the audit was to review the key management controls of the
following systems:
Payroll
Creditors
Debtors
General Ledger
Assets and Inventories
Banking (including reconciliations)
Capital
Financial Regulations and Standing Orders
Budget Monitoring and Reporting (full audit due December 2005)
VAT
2 Audit Opinion
3 Executive Summary
Following the audit of Bucks Fire & Rescue Service - Core Financial Controls
the audit opinion is adequate. It was found that the Service is embedding new
working practices following the implementation of SAP. We noted that the
control framework has improved over the last twelve months in both its design
and performance. However, there are some areas that still lack comprehensive
control of all processes. The main ones are listed below:
The detailed findings are shown elsewhere in the report and have been
discussed with the Group Manager – Finance Policy.
4 Background
The Fire Authority’s headquarters are in Aylesbury, roughly at the centre of the
area it serves. It is one of the lowest cost fire authorities in the UK, costing each
local resident an average of just £24 a year compared with a national average
of £32.50. This is used to fund the 546 firefighters, operating from 20
strategically placed fire stations – six whole time, four day crewed and 10
retained – and the service’s support staff. Membership of the Buckinghamshire
& Milton Keynes Fire Authority is drawn from Buckinghamshire County Council
(12 elected members) and Milton Keynes Council (five elected members).
The outcome of the previous audit in this area can be summarised as:
:
Budget Monitoring & Reporting
5 We confirmed that That commentaries are HIGH Response:
income & expenditure included alongside figures
commentaries are to increase the quality of We will respond to this point
included within the information supplied to when a report is issued
reporting pack, to assist senior managers and looking at budget monitoring
management with their elected members. in more detail.
review of the monthly
results. Examples of such
In addition, we recommend
commentaries include
that: Who to be actioned by:
explanation of variances
in salaries and associated • Budgets should be re-
on-costs. The aligned as soon as When to be actioned by:
commentaries are not possible;
included alongside • Formal procedures are
variances and are developed to document
supplied as supporting the monthly process
text for appendixed from meetings with
figures. budget holders through
to reporting to
Appendix A
The control objectives for Bucks Fire & Rescue Service - Core Financial Controls
audit are set out below, together with an assessment of the degree to which the
actual controls in place meet them. This is determined by an evaluation of actual
procedures against expected key controls.
Recommendations
High
8
Medium
1
Low
0
Appendix B
The audit review was carried out by David Skinner – Senior Auditor and Sara
Doraisamy – Audit Assistant.