To consider Report CFO/027/21 of the Director of Finance, concerning the Annual Year End Internal Audit report for 2020/21.

Members considered Report CFO/027/21 of the Director of Finance and Procurement, concerning the Annual Year End Internal Audit report for 2020/21. 

Members were given a brief introduction of the report outlining the reviews carried out by the internal auditor during 2020/21 and their view on the performance of the system of internal control in place at Merseyside Fire and Rescue Authority (MFRA) for the year.

The conclusion of Internal Audit was that the Authority’s fundamental financial control system could provide;

•           substantial assurance that the system of internal control in place accords with proper practice;

•           that the system controls in place to govern the core financial systems are sound and that they are substantially adhered to; and

•           no significant control weaknesses were identified and a strong control environment continues to be maintained.

With regards to the completed audit reviews carried out in the year:-

•           Internal Audit have completed their reviews of the fundamental finance systems.  All completed audits have shown a substantial compliance of the approved controls and processes and a good to substantial control environment.

•           Some of the non-fundamental system audits were not undertaken as they were no longer required or they were no longer applicable.  Some of the audit reviews have been deferred until 2021/22 as either audit work was re-directed to other reviews or COVID-19 meant the review would not be as effective as Merseyside Fire and Rescue Service (MFRS) staff were pre-occupied with dealing with the challenges of COVID-19.

During the period June 2020 to May 2021, the Internal Audit followed up on a number of outstanding audit recommendations from historic audit reviews going back as far as 2012/13.  The review found 25 medium to low risk recommendations yet to be certified as being actioned by the Service. The overall position at the end of the review was that of the 25 recommendations actively followed up, 5 recommendations have been closed and the implementation of the other 20 they have either:

•           been actioned by MFRS and the Service is awaiting Internal Audit confirmation; or

•           a new system or process has been introduced by the Service and Internal Audit will evaluate if the required control measures have been satisfied at the next review of that Service area; or

•           MFRS officers require an extension to the agreed deadline due to either staff changes or resources have been redirected to manage COVID-19 challenges.

Members were advised that none of the above recommendations or any of the 2020/21 audit reviews have identified any weaknesses that would have a potential significant corporate impact risk for the Authority.

A brief overview of the key findings of each audit carried out in 2020/21 were provided in Appendix A attached to the report. 

Members resolved that:

The contents of the report, be noted.