To consider the 2023/24 Audit Completion Report (CFO/82/24).

Karen Murray, Audit Partner from Forvis Mazars introduced the Audit Completion Report, noting that it came out ahead of their audit completion. Members were advised that she expected to issue an unqualified opinion on the Fire Authority’s accounts once the Committee had concluded and once the Chair of Audit Committee, Councillor Grace and the Director of Finance and Procurement, Mike Rea, had signed the accounts and Mike Rea had signed the letter of representation.

It was acknowledged that Forvis Mazars had received a good set of accounts and supporting working papers at the start of their audit. Members were also advised of the support and detailed work provided by the Authority’s Finance Team throughout the course of the audit.

Members’ attention was drawn to the table on page 145 setting out the status of the audit in red, amber and green. The areas that had been completed were testing on journals, National Resilience assets and the accounting treatment of them and issues relating to the derecognition of assets.

Karen Murray advised that all information for Firefighters pensions had been received which had been tested, however, they had not yet been formally reviewed due to them only being received prior to this meeting. Furthermore, the IT audit work had also been completed.

It was raised that a small number of changes had been made to the accounts in order to be compliant. Karen confirmed that her team would write to the Authority after this meeting for record purposes.

There were no changes in materiality as it remained at £1.5million. Members attention was drawn to the risks that were reported in the Audit Plan and Audit Strategy Memorandum on page 149, confirming that she now had the assurance needed.

Karen reassured Members that Management Override of Controls was a risk in all organisations and was nothing to be worried about. It was confirmed that a large amount of testing had taken place, and they were satisfied with the outcome.

It was mentioned that pensions liabilities and assets reported was a risk due to relying on the actuary to provide information. Karen stated that some errors had arisen and that one had been amended relating to the asset ceiling calculation. A risk that had not been amended was on page 156 relating to pension fund accounts and the Authority’s share of that. Members were reassured that the Authority was not in control of this, meaning that no errors had taken place within the Service. She explained that these issues were as a result of pension fund accounts, timing issues and timing changes.

A risk which was mentioned at the planning stage was the valuation of property, plant and equipment which the Authority was reliant on valuers for in order to support their accounts. Karen advised that all work they had planned to do had been completed and she was comfortable with the assurance received.

As the Authority was the lead for National Resilience, Forvis Mazars looked at the treatment of National Resilience assets. It was explained that there had been an adjustment to the accounts due to the Authority not having these assets in its possession at year-end, therefore, this had been removed from the accounts. In terms of the income and expenditure position with National Resilience monies, it was agreed that the Authority was acting as a principle, rather than an agent, meaning that the Authority was responsible for that funding.

It was reported that four amendments had been made to the accounts on page 157 and Members were reassured that none of these changes were particularly significant as no errors had been made by the Authority.

Members were advised that when looking at value for money, Karen’s team looked for three things – financial sustainability, governance and what measures were being implemented to improve services for the public or reduce their costs. It was acknowledged that no signs of weakness in the Authority’s arrangements had been identified, which was positive for the Service.

Karen Murray concluded that whilst she believed that the Authority had arrangements in place to ensure financial sustainability, those arrangements in themselves did not make the Authority financially sustainable. This meant that it was the Authority’s responsibility to deliver the financial plans in place to stick to the budget. Assurance was given that the plans were adequate and would keep the Authority financially sustainable.

Councillor Jan Grace thanked Karen Murray for the objective challenge and very detailed report.

RESOLVED that the contents of the Auditor’s report be noted.