CLEVELAND FIRE AUTHORITY AUDIT & GOVERNANCE COMMITTEE
19 MAY 2 0 1 7 – 1 1 . 00AM
TRAINING & ADMINISTRATION HUB, ENDEAVOUR HOUSE, QUEENS MEADOW BUSINESS PARK, HARTLEPOOL, TS25 5TH
MEMBERS OF THE AUDIT & GOVERNANCE COMMITTEE - HARTLEPOOL Councillors Rob Cook, Ray Martin-Wells MIDDLESBROUGH Councillors Teresa Higgins, Naweed Hussain REDCAR & CLEVELAND Councillors Neil Bendelow, Norah Cooney, Brian Dennis STOCKTON ON TEES Councillors Gillian Corr, Paul Kirton, INDEPENDENT PERSONS Messrs Jeff Bell, Mike Hill
A G E N D A
1. APOLOGIES FOR ABSENCE
2. DECLARATIONS OF MEMBERS INTEREST
3. TO CONFIRM THE MINUTES OF THE MEETING HELD ON 24 FEBRUARY 2017
4. TO RECEIVE THE REPORTS OF MAZARS 4.1 Audit Progress Report - Verbal 4.2 Request for Declarations
5. TO RECEIVE THE REPORTS OF THE CHIEF FIRE OFFICER 5.1 Annual Performance & Efficiency Report 2016/17 5.2 Internal Audit Report 2016/17 5.3 Performance Targets 2017/18
6. TO RECEIVE THE REPORTS OF THE TREASURER 6.1 Internal Audit Outturn Report 2016/17 6.2 Role of Chief Finance Officer 6.3 Role of the Head of Internal Audit in Local Government 6.4 Annual Governance Statement 2016/17
7. ANY OTHER BUSINESS WHICH, IN THE OPINION OF THE CHAIR, SHOULD BE CONSIDERED AS A MATTER OF URGENCY
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AGENDA ITEM 3
C L E V E L A N D F I R E A U T H O R I T Y
MINUTES OF AUDIT & GOVERNANCE COMMITTEE MEETING
24 FEBRUARY 2017
PRESENT: CHAIR:- Councillor Norah Cooney – Redcar & Cleveland Borough Council MIDDLESBROUGH COUNCIL Councillor Naweed Hussain REDCAR & CLEVELAND BOROUGH COUNCIL Councillor Neil Bendelow STOCKTON ON TEES BOROUGH COUNCIL Councillors Gillian Corr, Paul Kirton HARTLEPOOL BOROUGH COUNCIL Councillors Ray Martin-Wells, Rob Cook INDEPENDENT PERSONS Mr Mike Hill Mr Jeff Bell AUTHORISED OFFICERS Chief Fire Officer, Director of Corporate Services, Legal Adviser and Monitoring Officer,Treasurer MAZARS Cameron Waddell (Engagement Lead), Ross Woodley (Audit Manager) IN ATTENDANCE Head of Risk & Performance
APOLOGIES Councillor Teresa Higgins – Middlesbrough Council FOR ABSENCE: Councillor Brian Dennis – Redcar & Cleveland Borough Council
63. DECLARATION OF MEMBERS INTERESTS It was noted no Declarations of Interest were submitted to the meeting.
64. MINUTES RESOLVED – that the Minutes of the Audit & Governance Committee held on 11 November 2016be confirmed.
65. REPORTSOF MAZARS 65.1 Audit Strategy Memorandum The Engagement Lead (EL) Cameron Waddell presented the Audit Strategy Memorandum which covered: Audit scope and approach Significant risks and key judgement Timetable and Communication Value for Money(VFM) Conclusion Fees
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65.1 Audit Strategy Memorandum (cont) He stated that with regards to the VFM Conclusion there is a refreshed format in place which looks at the overall criterion which is ‘in all significant aspects, the Authority has proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people’. The EL reported that in order to assist auditors in reaching a conclusion on this overall criterion the following sub-criteria are set out by the National Audit Office (NAO):-
Informed decision making Sustainable resource deployment Working with partners and other third parties
Audit Manager (AM) Ross Woodley outlined the following three significant audit risks:
Management override of controls Revenue recognition Pension Recognition (ISA 240)
RECOMMENDED – that the report be noted
65.2 Value for Money Risk Assessment The AM presented the VFM Conclusion and reported that Mazars’ response to any significant risks will be to review the new processes the Authority is developing to prepare for the loss of funding to 2020/21. This will include:
Discussions with Senior Management about the new strategy Review the project plan for updating the CIRMP and evidence showing it is progressing on schedule Review the draft proposals for building up reserves ensuring that they are prudent and realistic
The AM confirmed that further work required to address potential risk indicators would include:
Reviewing the 2015/16 financial outturn to confirm the planned contribution to earmarked reserves is achieved and financial management continues to be effective Reviewing the 2015/16 performance outturn and benchmarking data such as the National Audit Office’s VFM Profile to confirm the policy of holding vacancies to create an underspend is not adversely impacting on overall performance Reviewing progress at delivering the existing CIRMP with particular focus on the recruitment and training of sufficient retained firefighters to crew a further two appliances on a retained basis from 1 April 2018.
RECOMMENDED - that the report be noted
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65.3 Audit Progress Report January 2016 The AM presented the Audit Progress Report which covered:
Progress of the 2016/17 Audit National Publications and Other Updates
The AM highlighted four of the nine updates which covered:
Procurement Strategy, PSAA, December 2016 Report on the results of auditors’ work 2015/16: Local government bodies, PSAA, December 2016 National Overview 2016, Emergency Services Collaboration Working Group, December 2016 Police and Crime Act 2017, Home Office, January 2017
Councillor Kirton asked if there were any risks to the pension fund due to the reduction in funding. The Treasurer stated that there was a separate valuation which sets out employers rates and there would be a slight increase in contributions from April which has been reflected in the budget.
Mr Bell said that the cuts seemed to be disproportionate to front line staff and asked if Mazars would be considering this. The EL stated that Mazars were aware of this and were currently looking at back office costs across Brigades. The AM added that benchmarking data which looks at uniformed and non-uniformed staff would also be considered. The Chief Fire Officer commented on the measure implemented by the Authority, which included front loading reductions in back office costs.
RECOMMENDED - that the report be noted
66. REPORTS OF THE CHIEF FIRE OFFICER 66.1 Organisational Performance & Efficiency Report April – December 2016 The Head of Risk and Performance (HRP) outlined the performance of the Brigade for the period of 1 April 2016 to January 2017 which detailed: Total incidents attended 9,504, a 33% increase from the same period the previous year. We have attended more incidents this year by 31 December than we did in the entire 2015/16. The main reason for the increase is the 2,708 Emergency Medical Response calls we have received. Fire fatalities – One in 2016/17 (0% from 2015/16) Fire injuries – 17% reduction (this equates to a reduction of 3 injuries) Accidental Dwelling Fires – 12% increase from the same period last year (increase of 13 incidents). Middlesbrough District seeing the biggest increase with 7. Deliberate Fires – 7% decrease on the same period last year (this related to 172 incidents). Deliberate fires account for 78% of all fires we attend. 57% of deliberate primary fires are due to vehicle fires. Emergency Medical Response (EMR) – we have attended 2,424 over the 9 month trial period. 71% of these incidents occurred in Redcar and Cleveland. On 85% of occasions Cleveland Fire Brigade attended before the ambulance and provided medical treatment to the patient.
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66.1 Organisational Performance & Efficiency Report April – December 2016 (Cont) The average response time by Cleveland Fire Brigade is 8 minutes 5 seconds. There is a national response time of 8 minutes set for a turn out to Red incidents. However, our appliances are reaching incidents faster than North East Ambulance Service (NEAS), with their average backup time being 11 minutes 6 seconds. Without the assistance from the Brigade the average time a person would have waited for medical treatment would be 19 minutes 11 seconds. Sickness absence –in the first 9 months of the year we have incurred on average 6.7 duty days sickness absence for each employee. This is a 22% increase on the same period the previous year. This increase broken down equates to Wholetime 6%, Retained 25%, Control 89% and Green Book 44%. The main causes of sickness absence being anxiety/depression, lower limb and upper limb
Mr Bell stated with regards to False Alarm calls it is astonishing that we turn out to more than 8 per day. The HRP stated that most of these calls are genuine and the fire is out on arrival, however we still receive a small number of malicious false alarm calls. The CFO added that there is a cost in attending false alarms and that we have a call challenge in place with Fire Control which can help them detect if the call is malicious.
Mr Hill referred to deliberate fires and asked if these were often caused as a result of hatred and insurance claims. The CFO stated that these incidents could be as a result of drug debt or disposing of cars people no longer require and the Brigade was working with other partner agencies to tackle vehicle fires. The HRP added that we are merging data with Police to look at intelligence and analysis of peak times and places these incidents are occurring and focusing our resources into these areas.
Councillor Kirton stated that when you look at vehicle fires across the board Stockton is the biggest in area and has the lowest figure of these incidents and Redcar is rural and has the highest figure of these incidents. The CFO stated that is the case however broken down into ward areas Grangetown and Southbank have the highest figures of deliberate fires.
Councillor Bendelow asked will EMR cease once the evaluation is completed in March 2017. The CFO stated that the trial was originally to run until June 2016. A national report evaluation has been carried out and there is a process ongoing in relation to negotiations. He reported that a recall to conference will take place on 21 March 2017 and the FBU are seeking finances for the workforce as part of their firefighter role.
Councillor Bendelow asked if NEAS had offered any money towards the trial. CFO stated that only East Cleveland is paid for every EMR incident that they attend. All training and consumables are provided by NEAS.
Councillor Bendelow asked would there be enough work if we did not carry out the additional role of EMR calls. The CFO stated that this is an enhanced role for firefighters and it is a service which is essential for this Brigade and without it there would be undoubtedly less wholetime firefighters and more staff on retained contracts. The reality is we are saving lives by doing this service. OFFICIAL - AUDIT & GOVERNANCE COMMITTEE - MINUTES 24 FEBRUARY 2017 4
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66.1 Organisational Performance & Efficiency Report April – December 2016 (Cont) Councillor Cook asked how many stations are carrying out EMR calls. The CFO stated there are 5 retained and 4 wholetime stations currently assisting NEAS with this service.
Councillor Cook stated that you cannot put a price on someone’s life and figures show that there is a 20 minute time period for NEAS to turnout to these incidents and the Brigade response time is much quicker. However he questioned whether we could afford to do it. We know that NEAS are struggling but the Authority works with strict monetary controls and unless there is some help from NEAS or the Government it is going to be difficult and it would be tragic if we cannot continue to offer this service.
Councillor Martin-Wells stated that he is the Regional Chair on the North East Joint Health Scrutiny Committee and that the performance accounts would be different without the figures of EMR calls. Clearly NEAS pay the Red Cross and there are no reasons why they shouldn’t collaborate with us in the same way to carry out this service.
Mr Bell asked if the main causes of sickness are changing over time. The HRP stated the sickness differs only across the different groups of staff.
Councillor Bendelow stated that figures show highest levels of sickness within Fire Control and asked if this was due to the nature of calls they are taking with regards to EMR and if so what elements, if any have we identified. The CFO stated that the impact on Health and Wellbeing and staff taking EMR calls, at this moment in time shows no correlation. Mental health and wellbeing remains a high priority for the Brigade and we continue to work with MIND and Blue Light Services.
Mr Hill stated that depression is a catching disease and we are moving away from where we want to be rather than meeting set targets. The CFO responded that it is a self-defeating cycle and it does remain a constant challenge for us but we are constantly looking at every aspect of what we can do to reduce these sickness levels.
RECOMMENDED - that the report be noted
66.2 Review of the Corporate Risk Register The Director of Corporate Services (DoCS) presented the Corporate Risk Register and confirmed that a full and fundamental review of the Corporate Risk Register was undertaken in January 2017. She reported that the outcome of that review had resulted in a number of changes including the removal of redundant risks and the identification of new and emerging risks and these have been incorporated into the body of the Corporate Risk Register as in Appendix 1.
RECOMMENDED – that Cleveland Fire Authority’s Corporate Risk Register attached at Appendix 1 of the report be noted.
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66.3 Scrutiny of Internal Audit Reports 2017/18 The DoCS summarised the progress on the recommendations contained within the Action Plans from Internal Audits carried out to date.
RECOMMENDED – that the progress made to date by Brigade and Proper Officers in achieving the recommendations contained within the Internal Auditor’s Actions Plans be noted.
67. REPORT OF THE TREASURER 67.1 Internal Audit Plan 2017/18 The Treasurer presented the Internal Audit Plan indicating the proposed coverage for 2017/2018.
RECOMMENDED (i) that the report be noted (ii) that the Audit and Governance Committee review the Authority’s Annual Governance Statement at its meeting on 19 May 2017.
67.2 Review of the Anti-Fraud and Anti-Corruption Strategy The Treasurer informed Members that the Anti-Fraud and Anti-Corruption Strategy at Appendix 1 of the report emphasised the importance placed by the Fire Authority on probity, financial control and honest administration and the expectation that all Members, employees, consultants, contractors and others are fair and honest and provide any help information and support to the Authority to deal with fraud and corruption.
He requested that Members review the Strategy, which forms part of the Ethical Governance Framework as required under the terms of reference of the Committee.
RECOMMENDED:- (i) that the Anti-Fraud and Anti-Corruption Strategy as attached at Appendix 1 of the report be noted. (ii) that the approval of the Anti-Fraud and Anti-Corruption Strategy be recommended to the Cleveland Fire Authority meeting on 31 March 2017.
68. REPORT OF THE LEGAL ADVISER MONITORING OFFICER 68.1 Business Report The Legal Adviser Monitoring Officer (LAMO) reported that under Section 7 of the Localism Act, 2011 it is a duty for the Authority to promote and maintain high standards of conduct. This is underpinned in the Code of Conduct which the Authority is obliged to operate and which must be consistent with the seven ‘Principles of Public Life’ as set out under the Act.
RECOMMENDED: that the contents of the report be noted
COUNCILLOR NORAH COONEY CHAIR
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AGENDA ITEM 4.2 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017
REQUEST FOR DECLARATIONS
REPORT OF MAZARS
For
Information
1. PURPOSE OF REPORT
1.1 To inform Members of the Audit and Governance Committee that arrangements have been made for representatives from Mazars to be in attendance at this meeting, to present the content of the Mazars Report, Request for Declarations. April 2017.
2. BACKGROUND
2.1 International Auditing Standards require auditors to ask management and those charged with governance about arrangements the body has put in place:
- To prevent and detect fraud; and - To comply with applicable law and regulations.
This requirement applies each year subject to audit.
2.2 For the Fire Authority, Mazars consider the Audit and Governance Committee to be those charged with governance. Mazars have requested responses to the questions detailed in the attached report and would be grateful for a response at the next committee meeting in August 2017.
2.3 To meet this request a report detailing a suggested reply to the questions posed will be brought before Members at August’s Audit and Governance Committee meeting for consideration.
3. RECOMMENDATIONS
3.1 That the Audit and Governance Committee:
(i) Note the report of Mazars.
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AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
4. FINDINGS OF MAZARS
4.1 Details of key messages are included in the main body of the report attached as Appendix 1.
CHRIS LITTLE TREASURER TO THE AUTHORITY
OFFICIAL - REQUEST FOR DECLARATIONS 2
Cleveland Fire Authority Request for declarations
April 2017 Cleveland Fire Authority Request for Declarations – Year ended 31 March 2017
Contents 1. Purpose of this document 2 2. Questions about arrangements for preventing and detecting fraud 2 3. Questions about arrangements for complying with law and regulations 3 4. Questions about the appropriateness of the going concern assumption 3 Our reports are prepared in the context of the Audit Commission’s ‘Statement of responsibilities of auditors and audited bodies’. Reports and letters prepared by appointed auditors and addressed to members or officers are prepared for the sole use of the Authority and we take no responsibility to any member or officer in their individual capacity or to any third party.
Mazars LLP is the UK firm of Mazars, an international advisory and accountancy group. Mazars LLP is registered by the Institute of Chartered Accountants in England and Wales.
Cleveland Fire Authority Request for Declarations – Year ended 31 March 2017
1. Purpose of this document
International Auditing Standards require auditors to ask management and those charged with governance about arrangements the body has put in place:
to prevent and detect fraud; and to comply with applicable law and regulations.
This requirement applies each year subject to audit. We are requesting your responses to the questions detailed below.
Our request also covers the appropriateness of the going concern assumption.
2. Questions about arrangements for preventing and detecting fraud
How does the Authority assess the risk that the financial statements may be materially misstated due to fraud?
What are the processes for identifying and responding to the risks of fraud in the Authority?
Are there any classes of transaction, account balances or disclosures for which a risk of fraud is likely to exist?
Are there any related party relationships or transactions which could create a conflict of interests?
How does the Authority mitigate the risk of fraud associated with related party relationships and transactions?
How does the Authority communicate with employees regarding ethical governance and standards of conduct and behaviour?
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Cleveland Fire Authority Request for Declarations – Year ended 31 March 2017
How does the Authority encourage staff to report any concerns about fraud or misconduct?
Does the Audit and Governance Committee have knowledge of actual or suspected fraud, and if so is it aware of what actions management is taking to address it?
Does the Audit and Governance Committee have knowledge of significant breaches of internal control and if so is it aware of management’s remedial action?
3. Questions about arrangements for complying with law and regulations
Has management provided a clear statement which confirms its consideration of relevant laws and regulations and its compliance with them?
How does the Authority satisfy itself that all relevant laws and regulations are being complied with?
Is the Authority aware of any instances of non compliance with laws or regulations?
Is the Authority aware of any actual or potential litigation or claims that would affect the financial statements?
4. Questions about the appropriateness of the going concern assumption
How has the Authority formed a preliminary assessment of the going concern assumption?
Are there any events which could cast significant doubt on the Authority’s ability to continue as a going concern?
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Cleveland Fire Authority Request for Declarations – Year ended 31 March 2017
4
Cleveland Fire Authority Request for Declarations – Year ended 31 March 2017
Contact details. Cameron Waddell Partner 0191 383 6314 [email protected] Ross Woodley Manager 0191 383 6303 [email protected]
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AGENDA ITEM 5.1 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
ANNUAL PERFORMANCE AND EFFICIENCY REPORT 2016/17
RE PORT OF THE CHIEF FIRE OFFICER For Information
1. PURPOSE OF REPORT
1.1 To appraise Members on the Brigade’s performance, efficiency, audit outcomes and operational performance for the year ending 31 March 2017.
2. RECOMMENDATIONS
2.1 That Members note the information contained in the Annual Performance and Efficiency Report 2016/17 at Appendix 1.
3. BACKGROUND
3.1 A fundamental part of Performance Management is to demonstrate how well public bodies are performing and whether the services provided represent value for money.
3.2 The Authority has for a long time recognised and reaped the benefits of having a robust and effective performance management framework and as a result has built up comprehensive performance management and assessment arrangements that drive continued improvement in service delivery, efficiency and enhance the satisfaction of the residents and businesses of the Brigade.
4. PERFORMANCE
4.1 The attached report at Appendix 1 is the Annual Performance and Efficiency Report 2016/17 that provides Members with details of the Brigade’s performance, outcomes from audits, operational assurance, finance and efficiency for the year ending 31March 2017.
4.2 The report provides a transparent, single view of information which allows Elected Members, Auditors and members of the public to gain assurance on the Brigade. It enables the Brigade’s senior managers and staff to be held to account in terms of the provision of effective prevention, protection and emergency response services and that the service is providing value for money.
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4.3 The framework that this document is based upon has been independently assessed and evaluated by our external auditors Mazars to ensure that it provides an accurate and transparent view of the organisations performance.
4.4 The appended report is structured in line with the areas detailed in the approved Performance Assessment Framework. Each section details the evidence used in assessing performance which has then been consolidated, using the criteria detailed on page 13, into an overall performance rating. The assessment areas included within the report are;
4.5 Strategic Goals and Aims (Pages 14 to 34). Details of the performance of the Corporate Suite of Indicators for 2016/17 compared to equivalent performance for one and five years ago and against the performance targets.
4.6 Annual Priorities (Pages 35 to 37). Details progress against actions identified within the Service Plan for delivery within 2016/17.
4.7 Key Service Standards (Pages 38 to 41). Provides details of performance on the adopted Emergency Response standards. The section also provides details (for information purposes) on the Brigade’s average attendance time to primary fire incidents compared to other Brigades for 2015/16 that was published by the Home Office in January 2017.
4.8 Operational Assurance (Pages 42 to 46). Assessment of the Brigade’s Operational arrangements, capabilities and effectiveness. It has been based on the available audit information. As no formal audit inspections have been completed during 2016/17 the assessment is based on historic information and progress against the improvement plan arising from the previous assessment.
4.9 Good Corporate Governance (Pages 47 to 52). This section is based on available audit information to demonstrate that the Brigade’s governance arrangements are effective. Key sources of information used for this judgement include reports received from Mazars and the Internal Audit Service.
4.10 Efficiency and VFM (Pages 53 to 58) This section is based on available financial and audit information to demonstrate that the Brigade is providing efficient and VFM services. Key sources of information are reports provided by Mazars plus comparator information published by CIPFA and the Home Office on the Brigade’s activities.
4.11 Comparison with other Fire and Rescue Services (Pages 59 to 61). A key element of the Performance Assessment Framework is to provide an assessment on how the Brigade’s performance compares with other Fire Services.
4.12 Customer Care (Pages 62 to 64). The Brigade provides a service to the public of Teesside and during the year information is collected on how people view and rate the services provided.
4.13 Using the performance criteria detailed in the report, separate performance ratings have been calculated for each assessment area. The following table details the
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AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
assessed performance rating for each of the assessment areas for 2016/17 and provides a comparison to 2015/16.
One assessment area has improved its performance from Performing Well to Performing Strongly and all other areas have remained the same as 2015/16.
4.14 These ratings are then combined using the criteria detailed on page 13 to 14 to show an overall performance rating of ‘GOOD’. This is the same rating as achieved in 2015/16.
4.15 This performance framework has been used to assess the Brigade’s performance for the last five years and a provide information on how the Brigade’s performance has changed overtime. Analysis of previous assessments indicates that the Brigade has maintained an overall performance rating of GOOD each year despite individual performance elements changing year to year.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
OFFICIAL - ANNUAL PERFORMANCE AND EFFICIENCY REPORT 2016/17 3
Performance and Efficiency Report 2016 - 2017
OFFICIAL Contents
1 Performance Highlights 2
2 Introduction 3
3 Operating Environment 5
4 The Brigade 6
5 Risk Profile 9
6 Data Quality Statement 12
7 Organisational Performance Status 13
8 Strategic Goals & Aims 15
9 Annual Priorities 35
10 Key Service Standards 38
11 Operational Assurance 42
12 Good Corporate Governance 47
13 Value For Money 53
14 Comparison Against Other Fire & Rescue Services 59
15 Customer Care 62
16 Compliments & Complaints 63
17 Equality & Diversity Profile 65
OFFICIAL 18 Glossary Of Terms 67 1 Performance Highlights
• Lowest rate of Accidental Dwelling • One Primary Fire fatality and eight Fires (ADF) nationally; individuals killed in Road Traffic Collisions; • Zero Accidental Dwelling Fire Fatalities and 8 ADF injuries; • Increase in number of people killed in Road Traffic Collisions; • 20,257 HFSV completed and 15,933 smoke alarms fitted; • Increase in numbers of injuries in Deliberate Dwelling Fires; • 918 Safe and Well Visits conducted; • Increases in number of • 2928 Emergency Medical Response Accidental and Deliberate incidents attended, 93% of which the Dwelling Fires; Brigade arrived before a paramedic; • Increase in number of Deliberate • Fastest average response times to Primary Fires in particular those fire incidents in the country (2015/16 involving vehicles; CLG Average Response Times Sept 2015); • Increase in Staff sickness for all • Positive unqualified opinion by staff groups; External Auditors on the Financial
Statements and Value For Money • Low numbers of customer arrangements. satisfaction responses received. OFFICIAL 2 2 Introduction
This report provides details of Cleveland Fire Brigade’s performance for 2016/17.
It provides a transparent, single view of information which allows Elected Members, Auditors and members of the public to hold the Brigade’s senior managers and staff to account in terms of the performance of their Fire Brigade during 2016/17.
Cleveland Fire Authority’s vision is to continue to make a positive difference to every local citizen’s safety and quality of life and the places where they live and work. The vision is suitably ambitious and yet underpinned by principles of reality and common sense; these being to understand the needs of its diverse communities and to respond with a wide range of excellent, value for money, integrated community services.
Our Vision is…. To build a sustainable future and:
• Make a positive difference to the safety and quality of life of every local citizen; and the places they live and work
• Deliver services by people who are professional, proud and passionate
• Be nationally recognised as being high performing and innovative; and internationally renowned for being able to reduce risk in business, industry and the home
Our vision is underpinned by two strategic goals
Safer Communities & Organisational Excellence
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Our Values
PROTECT
RESPECT
ENGAGEMENT IMPROVEMENT PRIDEDEMONSTRATE Protect - putting safety first. Protect ourselves, the community, the organisation and the environment from all avoidable harm
Respect – respect ourselves; our colleagues; our community; our heritage’ our property; our organisation and our environment
Improvement through learning - learning from our own and other’s experiences to continuously improve service delivery
Demonstrate Efficiency – doing the right things well by maximising the use of resources, being financially prudent and achieving continuous improvement
Engagement – understand and engage our communities in order to provide the most appropriate range of services to significantly contribute to improving their quality of life
OFFICIAL 4 3 Operating Environment Cleveland Fire Authority provides fire and rescue services to an area covering approximately 597 km2 and has a population of 562,080 in 249,221 dwellings. The population consists of 49% male and 51% female, with 5% of the population from black and ethnic minority communities.
Cleveland Fire Authority’s area, centred on the mouth of the River Tees, is a major production centre for the chemical industry. It has 30 ‘top tier’ and 6 ‘lower tier’ COMAH sites located within the area which equates to 12% of all national COMAH sites. These sites represent a high hazard in the local area and should serious incidents occur in such sites it would take the deployment of significant fire service resources, in terms of both equipment and people with suitable skills and abilities, to bring them to a safe conclusion.
In addition, the area has two power stations; a nuclear power station, with two nuclear reactors, and a gas power station, both producing electricity for the national grid. The Tees and Hartlepool ports handle over 50 million tonnes of cargo a year, making it one of the largest UK ports in terms of tonnage.
The decline of heavy industry in the area has led to high levels of unemployment (almost twice the national average). People living in Teesside suffer significantly higher levels of health problems and have higher rates of dependency on alcohol, drugs and tobacco. The area experiences high levels of deprivation with 38% (30) of its 79 wards falling within the worst 10% nationally. It is well recognised that, other than two Metropolitan urban areas, Cleveland has the highest levels of deprivation. As a consequence, the incidence of deliberate fires and anti- social behaviour in Cleveland is high; the area suffers from one of the highest arson rates in the country. OFFICIAL 5 4 The Brigade
The Brigade’s staff are deployed across three Directorates, these being:
. Community Protection (frontline service delivery) . Corporate Services . Technical Services
Our frontline services are co-ordinated and delivered from our community safety district based hubs and 14 strategically placed community Fire Stations.
OFFICIAL 6 Our strategy for success is based on provision of an integrated prevention, protection and emergency response service for the communities across our area.
Prevention Our prevention services are designed to reduce the likelihood of emergency incidents occurring in the first place and as such are at the heart of our strategies to keep people safe. Our prevention work takes many forms, from marketing, advice and education through to involving the community in helping to design and deliver our services. We have extensive programmes to help people understand, and consequently avoid, personal risk from fire and road collisions. We also run community programmes, such as health-promotion initiatives and self-development activities for young people.
Protection Our protection services are at the heart of improving business safety and are centred on delivering the Authority’s duty to enforce the Regulatory Reform (Fire Safety) Order 2005. Enforcing the Order ensures that business owners comply, putting appropriate measures in place to contain the effects of fire and ensuring that people can escape safely. Key aspects of our protection work involve advising businesses about their risk management responsibilities and enforcing fire safety regulations, where necessary, so that buildings are safer.
7 OFFICIAL Response Our response services focus on dealing with various emergencies such as fires in buildings, vehicles and open spaces, road traffic collisions, water rescues, hazardous material releases, explosions, structural collapse, rescue from heights and supporting other Blue Light Services.
We protect the Critical National Infrastructure and provide national resilience through our use of specialist equipment.
When emergency incidents occur, we continue to respond to them with well trained staff using modern methods, appliances and equipment.
The Brigade operates one of the most stringent and challenging emergency response standards nationally.
National Resilience The Government's aim is to reduce the risk from major emergencies so that people can go about their business freely and with the confidence that the UK is equipped to deal with major emergencies, like natural disasters or terrorist attacks. The Brigade plays an integral part in ensuring this and is 100% compliant with the Government requirements for National Resilience.
Since 2001, the Department for Communities and Local Government has invested £300m nationally through its New Dimension Programme and Fire and Resilience Programme to increase resilience, enhance capability, improve its emergency preparedness and improve efficiency in the Fire and Rescue Service. In this area we take these responsibilities seriously and maintain strong links with other category 1 responders through the Local Resilience Forum along with assets purchased through the New Dimensions programme.
OFFICIAL 8 5 Risk Profile
Changes in our environment have the potential to affect the delivery of our fire and rescue service. Whether they are related to, for example, the climate, terrorist attacks, community demographics, the law or technological developments, they all need to be continuously identified, assessed and properly managed and this is what we call risk management.
We are in the business of keeping people safe and we believe that our success is long founded on our ability to identify, assess and reduce risk. In order to assess how well we are achieving our aim of reducing the level of risk we produce risk profiles of the area on an annual basis.
We collect information on all of our incidents and actively use this together with other social and demographic information to identify those people who, and locations which, are more likely to experience a fire related incident. This enables us to ensure we are deploying our resources in the most effective way.
Through national research and our local intelligence and analysis of historic incidents we can see that people who smoke and drink are more likely to experience a fire related incident which results in an injury or a fatality. Our intelligence also indicates that areas of higher levels of deprivation are more likely to experience a fire related incident.
OFFICIAL 9 Cleveland experiences higher levels of deprivation than the rest of the Country. 30 (38%) of the 79 wards are assessed as being in the 10% most deprived wards in England and officially this is the third most deprived Fire Authority area in the country. Smoking and the influence of alcohol are major contributory factors to fires and information indicates that in Teesside there is a significantly higher proportion of people who smoke and/or binge drink than the national average. We utilise this information on an annual basis and re-assess the levels of risk of fire related incidents occurring within our communities.
Despite the factors affecting the area, our excellent prevention and protection activities are seeing a reduction in the number of primary and secondary fires year on year.
We use this risk assessment to direct the deployment of our resources in line with our balanced strategy of prevention, protection and emergency response.
The introduction of the Community Integrated Risk Management Plan 2014/18 on 1st April 2014 saw the enhancement of our risk assessment process and the introduction of two risk assessments for the area, one that directs our Prevention and Protection activities and the other which deals with incidents using our Emergency Response strategy.
OFFICIAL 10 Low Risk Community Risk Assessment
Medium Risk Our Community Risk Assessment process takes into High Risk account our historic incident profile as well as social and lifestyle factors (rented accommodation, lone pensioners, deprivation , smoking and binge drinking ) in order to assess where we anticipate fire incidents may occur and which particular groups of individuals may be at risk of such incidents thus allowing the effective targeting of resources to reduce the risk.
This allows us to target prevention and protection services in these areas to minimise the risk of such incidents occurring.
Low Risk Emergency Response Risk Assessment Medium Risk We are pragmatic enough to realise that human beings High Risk are unpredictable in their actions and as all contributory factors cannot be eliminated we have an emergency response strategy supported by an appropriate risk assessment to deal with emergency incidents that do occur.
This has enabled our emergency response resources to be deployed against actual risk (service demand) as opposed to potential risk (Community Risk Assessment).
OFFICIAL 11 6 Data Quality Statement
We are satisfied that any information and assessments included in this report are in all respects accurate and complete. No significant data quality issues have been identified during the preparation of this report by the Risk and Performance Team nor have any been brought to the team’s attention.
Whilst we have not validated every item of information within the report we are confident, from our knowledge of relevant systems and processes, that the information produced has been done in accordance with approved statutory and local guidance. No issues on data quality have been identified in any internal or external assessment conducted on the Brigade. The internal audit annual assurance statement on the Brigade’s system of management controls has not identified any weaknesses with the systems and processes .
Our commitment to high quality data is driven by our Data Quality Policy and Strategy supported by a robust delivery plan to ensure continued improvements in the data quality arrangements. This quality assurance framework underpins the Brigade’s Integrated Strategic, Business and Financial Planning Cycle.
Our embedded approach to the principles of accurate data collection, collation, recording, analysis and reporting of information across the organisation, to partners and the public, enable increased levels of confidence in the quality of information produced. In all cases, whatever the source of information, the most up to date information that is available is used within our reports. Information and data sharing agreements and protocols have been formally established where data is shared between partners.
We continually work to further improve the quality of our data through internal reviews of management information systems, processes and procedures . Staff understanding and adherence to appropriate data quality standards are continually monitored to ensure current high standards are maintained and are not the sole responsibility of the Risk and Performance Team.
In 2016/17 there were 10,881 incidents, 100% of which have been quality assured and published with the Home Office.
OFFICIAL 12 7 Organisational Performance Status
Each year we self-assess the achievement of outcomes to ensure that we are constantly aware of our organisational performance status. This serves as our organisational health check.
We look at evidence to show how we have performed when compared to previous years, the last five years, how we have performed against what we aimed to do and how we compare with other fire and rescue services.
We use simple scoring mechanisms when undertaking the self-assessment and the results of these give us one of the following ratings for each outcome;
4: Performing Strongly 3: Performing Well 2: Adequate Performance 1: Inadequate Performance Well above minimum Consistently above At only minimum Below minimum requirements minimum requirements requirements requirements
From the assessment of the outcomes and using the following criteria we can produce an overall performance assessment for the Brigade;
Excellent Good Average Poor
At least five 4’s, no 2’s At least five 3’s, no more At least seven 3’s, no 1’s Any other combination or 1’s than three 1’s
OFFICIAL 13 Organisational Performance 2016/17
The organisational Performance is measured against eight key areas. The summary picture of our performance in 2016/17 against these key areas is set out below.
Click to go to the relevant section of the report. To return to this page click Strategic Goals and Aims 3: Performing Well
Annual Priorities 4: Performing Strongly
Key Service Standards 3: Performing Well
Operational Assurance 4: Performing Strongly
Good Corporate Governance 4: Performing Strongly
Value For Money (VFM) 4: Performing Strongly
Comparison against other Fire & 2: Adequate Performance Rescue Services
Customer Care 4: Performing Strongly
Performance in 2016/17 assessed as
Good 14 OFFICIAL Summary Service Demand and Activity 1st April 2016 to 31st March 2017
Response Number of Incidents by Group as at 31st March 2017
In 2016/17 there have been 10,951 incidents, EMR an increase of 2,470 (29%). The Brigade has 12000 attended a total of 2,928 EMR incidents Primary Fires (inc 2928 Chimney Fires) which equates to 27% of all incidents. 10000 92 Secondary Fires 680 The breakdown of the main groups of 8000 734 incidents are shown in the chart (right). Special Services 3036 6000 2732 exc EMR When the EMR incidents are excluded there False Alarms 1381 have been 8,023 incidents, a decrease of 4000 1276 366 (4.4%) compared to financial year Out of Area 2015/16. 2000 3202 3211 90 70 0 Q4 2015/16 Q4 2016/17 Prevention No Visits Coverage There have been 20,257 Home Fire Safety April -Mar 2016/17 Visits completed during the period fitting Hartlepool 3,310 53.7% 15,933 smoke alarms. Of these the Brigade conducted 918 Safe And Well visits. Middlesbrough 4,659 65.3%
Breakdown of number of HFSV and Redcar & Cleveland 5,230 57.5% coverage by district is shown in the table Stockton 7,058 53.5% (right). Total 20,257 57.0%
Protection
1319 Inspections of industrial and commercial premises have been completed during 2016/17. OFFICIAL 15 8 Strategic Goals (corporate performance indicators)
The Community Integrated Risk Management Plan 2014 to 2018 identifies two strategic goals supported by eight strategic aims.
The two strategic goals are; Safer Communities Organisational Excellence
By measuring progress against the underpinning strategic aims, we can assess whether or not we are achieving our strategic goals.
A suite of corporate performance indicators have been developed to assist in measuring our progress against these aims. Our assessment methodology for this section uses the following two stage process.
Stage 1: Each indicator identified in each Strategic Aim is given a score using the following process;
4: More than 10% better 3: Between 0% and 9.9% 2: Between 0% and 9.9% 1: More than 10% worse than previous year better than previous year worse than previous year than previous year
Stage 2: An average score for the indicators in each Strategic Aim is applied using the following scoring;
4: More than 10% better 3: Between 0% and 9.9% 2: Between 0% and 9.9% 1: More than 10% worse than previous year better than previous year worse than previous year than previous year
More than 3.50 average Between 2.50 and 3.49 Between 1.51 and 2.49 Less than 1.50 average indicator score average indicator score average indicator score indicator score
OFFICIAL 16 High Level Summary of Strategic Goals and Aims (corporate performance indicators) Below is a summary of our performance in 2016/17 against our eight strategic aims. The subsequent pages illustrate how we performed against the corporate performance indicators for each of the strategic aims.
Compared to 2011/12 Strategic Aim Compared to 2015/16 (Direction of Travel)
Improve Home Safety Performing Adequately Performing Strongly
Improve Business Safety Performing Strongly Performing Strongly
Improve Road Safety Performing Well Performing Strongly
Improve Neighbourhood Safety Performing Well Performing Well
Safer Communities Safer Support National Resilience Performing Strongly No Judgement Available
Improve Social Care Performing Strongly No Judgement Available
High Performing Continually Improving & Efficient Performing Well Performing Well
Provide a Professional Workforce Performing Adequately Performing Adequately
Excellence Organisational Organisational
Performance in 2016/17 Our direction of Travel assessed as Performance is assessed
Performing Well Performing Well
OFFICIAL 17 Safer Communities 1.1 Improve Home Safety
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Accidental Dwelling Fire -100% -100% 1 0 0 0% Fatalities (-1) (-2)
Deliberate Dwelling Fire -100% 0 0 0% 0 0% Fatalities (-2)
Accidental Dwelling Fire +14% -50% +14% 7 8 7 Injuries (+1) (-8) (+1)
Deliberate Dwelling Fire +200% -14% 2 6 - - Injuries (+4) (-1)
+5% -29% +5% Accidental Dwelling Fires 130 137 130 (+7) (-55) (+7)
-27% +15% +42% Deliberate Dwelling Fires 53 61 (-22) 43 (+8) (+18)
Compared to the 2011/12 Compared to Previous Year (direction of travel)
Performing Adequately Performing Strongly
OFFICIAL 18
1.2 Improve Business Safety
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Industrial and Commercial 0 0 0% 0% 0 0% Fire Fatalities
Industrial and Commercial -100% -100% 1 0 - - Fire Injuries (-1) (-2)
Industrial and Commercial -19% -30% -16% 67 54 64 Fires (-13) (-23) (-10)
Compared to the 2011/12 Compared to the previous year (direction of travel)
Performing Strongly Performing Strongly
OFFICIAL 19
1.3 Improve Road Safety
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
People Killed in Road Traffic +33% -33% 6 8 - - Collisions (+2) (-4)
People Seriously Injured in -21% 198 156 0% - - Road Traffic Collisions (-42)
People Suffering Slight Injuries -20% -30% 1076 865 - - From Road Traffic Collisions (-211) (-371)
Compared to the 2011/12 Compared to the previous year (direction of travel)
Performing Well Performing Strongly
OFFICIAL 20 1.4 Improve Neighbourhood Safety
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
-83% +100% Primary Fire Fatalities 1 1 0% 0 (-5) (+1)
-22% -52% -22% Primary Fire Injuries 18 14 18 (-4) (-15) (-4)
-8% -36% -6% Accidental Fires 827 762 812 (-65) (-421) (-50)
-6% -11% -3% Deliberate Fires 2889 2704 2775 (-185) (-350) (-71)
Anti-Social Behaviour +0.1% -12% 42301 42347 - - Incidents (+46) -(6022)
Road Traffic Collisions -19% +3% 410 333 - - Attended (-77) (+11)
Hazardous Spills and Leaks +6% +1% 140 148 - - (not RTC) Incidents (+8) (+1)
+3% +46% Flooding Incidents 58 60 - - (+2) (+19)
+28% +18% Effecting Entry/Exits Incidents 89 114 - - (+25) (+17)
OFFICIAL 21 Direction Direction Direction of travel of travel Target of travel Outcome 2015/16 2016/17 from from 2016/17 from 2015/16 2011/12 target
Other Rescue/Release of +1% -12% 91 92 - - Persons Incidents (+1) (-12)
-10% -6% +2% False Alarms – Malicious 142 128 125 (-14) (-8) (+3)
False Alarms – Malicious % 63% 66% +3% +38% - - Attended
Automatic Fire Alarms in Non +8% +1% +11% 817 885 796 Domestic Properties (+68) (+7) (+89)
Compared to the 2011/12 Compared to the previous year (direction of travel)
Performing Well Performing Well
OFFICIAL 22 1.5 Support National Resilience
The National Resilience Assurance Team (NRAT) developed a new audit process and visited the Brigade during August 2014 to undertake an audit and review.
In 2016/17 no further inspection has been undertaken by NRAT. Our internal self assessment process, which was confirmed as being accurate within the Operational Assessment, confirms that the Brigade maintains its Operational Assurance in line with the NRAT assessment criteria.
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Achieved No Achieve NRAT Assessment Assured Operational Assessment in NA Operational Assurance 2016/17 Assurance
Of 41 elements assessed as part of this audit all received a positive conformity rating from NRAT.
Compared to the 2011/12 Compared to the previous year (direction of travel)
Performing Strongly Not Assessed in 2011/12
OFFICIAL 23
1.6 Improve Social Care
A number of children and young people engage with the Brigade, completing courses they have commenced, however the course does not always have a recognised qualification attached. The figures recorded within the table reflect only those children and young people engaging in courses which do attract recognised qualifications.
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Percentage of CYP who we have engaged with who Positive completed the course they 60% 81% +21% NA Annual +21% commenced and gained a 32/50 35/43 Change recognized qualification as a result
The Brigade is reviewing the indicators assigned to this strategic aim with the view of introducing additional indicators that will reflect new areas of service delivery currently being introduced.
Compared to the 2011/12 Compared to the previous year (direction of travel)
Performing Strongly Not Assessed in 2011/12
OFFICIAL 24 Organisational Excellence 2.1 Be high performing, continually improving and efficient
Outcome 2016/17
Percentage of Strategic Aims Assessed as 38% (3 strategic aims performing strongly) Performing Strongly Percentage of Annual Priorities 9/14 Actions Complete (64%) Completed
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target Fire Incidents in High Risk Wards
1st Pump attendance in 5 71% 86% +15% +13% 75% +11% minutes
2nd Pump attendance 94% 100% +6% +11% 75% +25% in 8 minutes
3rd Pump attendance in 10 minutes 100% 100% 0% +14% 75% +25% (Persons Reported) Fire Incidents in Medium Risk Wards
1st Pump attendance in 8 98% 98% 0% +3% 75% +23% minutes
2nd Pump attendance 96% 95% -1% +2% 75% +20% in 11 minutes
OFFICIAL 25 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target Fire Incidents in Low Risk Wards
1st Pump attendance in 10 97% 97% 0% +3% 75% +22% minutes
2nd Pump attendance 96% 96% 0% -2% 75% +21% in 13 minutes
Emergency response Service Industrial Fires Staged -56% -56% 9 4 - - Response 3, 5 and 10 Pump (-5) (-5) Incidents Emergency Response to Road Traffic Collisions 1st Pump 85% 85% 0% - 75% +10% attendance 8 Minutes
Percentage of calls handled 91.4% 92.4% +1% - 98% -5.6% under two minutes by Control
Percentage of Whole-time appliances not meeting 2.22% 1.48% -0.74% - 0% +1.48% “Book Mobile” threshold of 2 minutes Percentage of Retained appliances not meeting 25.22% 20.34% -4.88% - 0% +20.34% “Book Mobile” threshold of 5 minutes
OFFICIAL 26 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Operational Assessment: Community Risk Advanced Advanced Management
Operational Assessment: Advanced Advanced Prevention
Operational Assessment: Established Advanced Protection No Official reassessment Operational Assessment: Established completed Advanced Response in 2016/17 – our internal self Operational Assessment: Advanced assessment Advanced Health and Safety indicates no change to the 2015/16 Operational Assessment: Advanced assessment Advanced Training & Development
Operational Assessment: Established Call Management & Advanced
Incident Support
Achieved Achieve NRAT Operational NA Operational Assessment Assured Assurance Assurance
OFFICIAL 27 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Weaknesses identified in annual internal audit None None None judgement in internal control system
Category 1 recommendations None None None in internal audit inspections
Assessment against Equality Positive - - - - Inspection - Framework Outcome
Positive No No Positive RIPA Judgement Assessment - - Assessment Judgement 2015/16 2016/17
Achieve BSI Business Continuity - - - - - standard
Public Contracts Regulations 2015: Percentage of Invoices 96.3% 97.0% +0.7% NA 95% +2.0% paid within 30 days
Public Contracts Regulations 2015: Interest paid due to late £0 £0 NA £0 payment of invoices
OFFICIAL 28 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
CIPFA/ ALARM Risk Management Benchmarking Embedded Driving Driving NA and Assessment (Leadership and Integrated Management)
CIPFA/ ALARM Risk Embedded Management Benchmarking Driving Driving NA and Assessment (Policy & Strategy) Integrated
CIPFA/ ALARM Risk Embedded Embedded Embedded Management Benchmarking and and NA and Assessment (People) Integrated Integrated Integrated
CIPFA/ ALARM Risk Management Benchmarking Embedded Embedded and Driving NA and Assessment (Partnership and Integrated Integrated Resources) CIPFA/ ALARM Risk Embedded Embedded Management Benchmarking and Driving NA and Assessment (Processes) Integrated Integrated CIPFA/ ALARM Risk Management Benchmarking Embedded Embedded Working and NA and Assessment (Risk Handling and Integrated Integrated Assurance) CIPFA/ ALARM Risk Management Benchmarking Embedded Driving Driving NA and Assessment (Outcomes and Integrated Delivery)
OFFICIAL 29 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
External Auditor’s Judgement Positive Positive Positive Judgement Judgement Judgement
Level of Efficiencies 100% 100% 100% (% of Target)
Cost of Fire on Teesside £20,093,400 £21,075,800 +5% -17% - - Economy (+£982,400) (-£4,366,200)
Automatic Fire Alarms in Non +8% +1% +11% 817 885 796 Domestic properties (+68) (+7) (+89)
-10% -6% +2% False Alarms - Malicious 142 128 125 (-14) (-8) (+3)
False Alarms – Malicious % 63% 66% +3% +38% - - Attended
OFFICIAL 30 Outcome 2016/17
Percentage of Corporate Targets Achieved 61% (40 out of 66)
Percentage of Corporate Performance Indicators 46% (39 out of 85) performing strongly compared to previous year
Percentage of indicators where we have improved quartile 31% position or remain in top quartile against other FRS’s in our Family Group (4 out of 13)
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Reduction in Percentage of Wards 1% 1% 0% -46% High risk 0% categorised as High Risk (1/79) (1/79) Wards
Percentage of people satisfied Positive 100% 100% with the way the Brigade dealt 0% - Annual (1/1) (2/2) with a complaint Change
Positive Percentage of people satisfied 100% 96% -4% +8% Annual with the service they received (34/34) (22/23) Change
Compared to the 2011/12 Compared to the previous year (direction of travel) Performing Well Performing Well
OFFICIAL 31
2.2 Provide a Professional Workforce
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
-59% -50% Accidents: resulting in injury 22 9 - 18 (-13) (-13)
Accidents: resulting in +200% +500% damage to equipment or 2 6 - 1 (+4) (+5) property
+27% +111% +36% Near Misses 15 19 14 (+4) (+10) (+5)
-5% +95% Cause for Concerns* 41 39 - - (-2) (+19)
-83% +100% RIDDOR Reportable Accidents 6 1 - 0 (-5) (+1)
+17% +58% Vehicle Incident Reports 35 41 - 26 (+6) (+15)
+11% +15% +15% Violence to Staff Incidents 28 31 27 (+3) (+4) (+4)
+14% +36% +53% All Staff Sickness 7.44 8.49 5.56 (+1.05) (+2.23) (+2.93)
*Increase = Positive Performance
OFFICIAL 32 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
Ill Health Retirements +100% +100% +100% Operational Staff 0 1 0 (+1) (+1) (+1) (Grey Book) Ill Health Retirements -100% -100% -100% Corporate Staff 1 0 0 (-1) (-1) (-1) (Green Book)
Staff Training
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
% Operational personal Positive assessed competent in risk 84.8% 83.1% -1.7% - Annual critical areas (aligned to Change ‘VOC’ themes)
Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
-50% Discipline Cases 16 8 - - - (-8)
0% Number of Grievances 1 1 - - -
OFFICIAL 33 Direction of Direction of Direction of Target Outcome 2015/16 2016/17 travel from travel from travel from 2016/17 2015/16 2011/12 target
+22% +27% Complaints Received 23 28 - - (+5) (+6)
Positive Percentage of people satisfied 100% 96% -4% +8% Annual with the service they received (34/34) (22/23) Change
Percentage of people satisfied Positive 100% 100% with the way the Brigade dealt 0% - Annual (1/1) (2/2) with a complaint Change
Compared to the 2011/12 Compared to the previous year (direction of travel) Performing Adequately Performing Adequately
OFFICIAL 34 9 Annual Priorities Our priorities 2016/17 stem from two main sources:
1. CIRMP 2014 -18 Year 3 proposals* which reflect the Authority’s current risk assessment outcomes, the outcomes from the CIRMP consultation exercise and the medium term financial position including the use of the Authority’s reserves.
2. Corporate proposals* identified by the Brigade’s Executive Leadership Team as a result of a strategic risk assessment (the opportunities that will support, or the threats that will prevent, the achievement of the Authority’s strategic outcomes).
Scoring Methodology Each of the priorities have been monitored throughout the year and a year end status has been assigned to the priority
The priority is now no longer to be delivered in that year following in year strategic review and • Deferred planning by ELT (score 0 and priority is excluded from overall scoring).
• Incomplete / Significantly The priority will not be completed by the due date (score 1). Behind Schedule
The priority is in the progress of being delivered but there are some minor delays in its delivery. • In progress and minor (Score 2). delay
The priority is in the progress of being delivered and will be completed by the due date. • In progress and on target (Score 3).
• Complete The priority has been completed(Score 4).
An average score for all of the priorities is calculated from the individual scores assigned to each priority.
1 2 3 4 Score 1 to Score 1.51 Score 2.51 In Delivering our Annual Priorities for Score 3.5+ 1.5 to 2.50 to 3.5 2016/17 we assess ourselves as 4: Performing Strongly OFFICIAL 35 CIRMP 2014/18 Year 3 Priorities Status Update
OD12 Build a New Complex on Queens Meadow Business Park consisting of Administrative 4: Complete Headquarters, Fire Control, Learning and Development Centre and Asset Resource *
OD15: Revenue Budget 2016/17 4: Complete
ER1 Emergency Response - Industrial and Commercial strategy 4: Complete
ER3.3 Build a New Community Fire Station at Thornaby* 4: Complete
ER3.4 Build a New Community Fire Station at Grangetown* 4: Complete
ER3.5 Refurbish Stranton Community Fire Station* 3: In progress
ER3.6 Refurbish Guisborough Community Fire Station* Deferred to 2017/18
ER3.7 Refurbish Loftus Community Fire Station* Deferred to 2017/18
OFFICIAL 36 CIRMP 2014/18 Year 2 Priorities (continued) Status Update
ER6 Introduce Combined Aerial Rescue Pumps (CARPs) into the Brigade’s Fleet 3: In progress
ER7 De-staff Marine Fire Station 4: Complete
ER9 Prepare for the Introduction of On-Call Crewing Arrangements for the Second Fire 4: Complete appliance at either Thornaby, Grangetown or Redcar
Corporate Priorities Status Update
C1 Collaboration with Cleveland Police* 3: In progress
C2 North East Ambulance Service (NEAS) Partnership* 3: In progress
C3 Tees Valley Combined Authority* 4: Complete
C4 Fire as a Health Asset* 4: Complete
C5 Leadership, Culture and Valuing our Workforce* 3: In progress
OFFICIAL * Note - These priorities are longer term priorities and will take more than one year to be completed. 37 10 Key Service Standards
We aim to respond to any incident as quickly as possible. To assist in the planning of the deployment of our resources we have locally set response standards for dealing with emergency calls, how fast we get to fire related incidents within buildings and Road Traffic Collisions.
Using the approved fire risk assessment methodology we have assessed and classified wards as being either High, Medium or Low risk. These then determine what response standard the ward is aligned too. For Road Traffic Collisions we have set a blanket response standard. Our response standards are as follows:
Standard For each individual service standard the scoring Property 1st appliance 2nd appliance 3rd appliance mechanism used is: Fires High Risk F1 Ward Service Standard Service Standard Achieved Not Achieved
Medium Risk Ward To assess whether we have achieved our service 8 mins 11 mins standards the overall scoring mechanism used is:
1 2 3 4 Low Risk Ward No service 1-5 service 6-10 service All service standards standards standards standards 10 mins 13 mins achieved achieved achieved achieved
Industrial Staged Response 3, 5, 10 Appliances Incidents In Delivering our Key Service Standards in Road 1st appliance Traffic 2016/17 we assess ourselves as Collisions Performing Well 8 mins (8 out of 11 standards achieved)
OFFICIAL 38 Performance Standard Key Service Standard 2016/17 Achieved
Speed of Response
1st pump in 5 minutes to High risk wards 86% (75% of Occasions) (12/14)
2nd pump in 8 minutes to High risk wards 100% (75% of Occasions) (13/13)
3rd pump in 10 minutes to Person Reported 100% (75% of Occasions) (7/7)
1st pump in 8 minutes to Medium risk wards 98% (75% of Occasions) (969/993)
2nd pump in 11 minutes to Medium risk wards 95% (75% of Occasions) (839/884)
1st pump in 10 minutes to Low risk wards 97% (75% of Occasions) (1642/1687)
2nd pump in 13 minutes to Low risk wards 96% (75% of Occasions) (1336/1398)
1st pump in 8 minutes to Road Traffic Collisions 85% (75% of Occasions) (161/190)
OFFICIAL 39 Performance Standard Key Service Standard 2016/17 Achieved
Call Handling and Crew Mobilisation
Calls handled under 2 minutes by Control 92% (Target 98% of Occasions) (9969/10784)
Percentage of Whole Time appliances not meeting ‘Book 1.5% Mobile’ threshold within 2 minutes (180/12135)
Percentage of Retained appliances not meeting ‘Book Mobile’ 20% threshold within 5 minutes (496/2438)
Service Standard Service Standard Achieved Not Achieved
OFFICIAL 40 National Attendance Times: Comparator of Performance
One key element of our balanced strategy approach to service delivery is Emergency Response and in particular how fast we respond to emergency incidents. On an annual basis the Home Office publish details of the average response times for all Fire and Rescue Services for primary fires. The following table shows the performance of Cleveland Fire Brigade compared to the national average for 2015/16.
• In four of the categories the Brigade has the fastest response times, which is consistent with 2015/16. The final category (outdoor primary fires) the Brigade has fallen from 3rd to 4th fastest. • Nationally the average response times for 3 categories has increased. Speed of response for Dwelling Fires has improved and to Other Building Fires has remained static. • For all categories the average response time for CFB has increased when compared to the previous year.
OFFICIAL 41 11 Operational Assurance
This section provides information to the public to demonstrate that the local Fire and Rescue Services operational service delivery is efficient, effective and robust both at a local and national level.
The Operational Assurance Team and the National Resilience Assurance Team (NRAT) reviewed and assessed the Brigade during 2015/16.
In 2016/17 no further inspection was undertaken by either the Operational Assurance or NRAT.
Our internal self assessment process, which was confirmed as being accurate within the Operational Assessment, confirms that the Brigade maintains effective Operational Assurance.
Operational Assessment and National Resilience Assessment
Following our assessment we assess 1 4 ourselves as
Not Achieved Achieved Operational Operational Assurance Assurance Performing Strongly
OFFICIAL 42 Operational Assessment
In 2013 Executive Leadership Team approved the completion of the Operational Assessment, the purpose being to provide current indication of performance benchmarked against the LGA and CFOA Operational Assessment and Peer Challenge Toolkit.
This process, which has a strong operational focus, comprises a self-assessment and external peer challenge and is designed to allow a “whole system” look at how a Fire & Rescue Authority (FRA) leads, prioritises and delivers the interrelated functions of prevention, protection and response.
The following areas are covered in the review:
. Community Risk Management; . Prevention; . Protection; . Response; . Health and Safety; . Training and Development; . Call Management and Incident Support.
In 2014 the Brigade completed the process of undertaking an Operational Assessment that included the production of a self assessment by the Brigade against these criteria. The Operational Assessment report confirmed that the self assessment produced by the Brigade was a realistic evaluation of the Brigade.
During 2016/17 no further assessment has been undertaken but our internal review process, which was confirmed as being accurate in the Operational Assessment, indicates there has been no deterioration in our operational capabilities.
OFFICIAL 43 ‘ It is clear that Cleveland Fire Brigade has a track record of making a positive impact on outcomes for local people and also has opportunities to make further progress. The peer team believe that by harnessing staff enthusiasm and commitment Cleveland can embrace the future, managing the risks and challenges along the way’
Operational Assessment Fire Peer Challenge Report October 2014
As there has been no external assessment in 2016/17 the Brigade has reviewed its improvement plan and the self assessment and this indicates no change to the assessment reported in October 2014.
We currently assess our Operational Assessment as being Achieved Reasonable
Compliant Assurance? Yes
OFFICIAL 44 National Resilience
The National Resilience Assurance Team (NRAT) has been developing a new audit process and visited the Brigade during August 2014 to undertake an audit and review. Seven key areas of assessment (KAA) were inspected and feedback from the review awarded compliance:
• Prior to call preparation: Fire and Rescue Service ability to mobilise National Resilience assets to an incident.
• Mobilisation and support to the incident: FRS arrangements for managing the mobilisation of National Resilience assets and the provision of relevant information and support to responding crews.
• Command & Control: responsibilities and actions of attending personnel and the integration of National Resilience capability into planned or existing Command and Control arrangements.
• Operational Response: structures, policies and arrangements in place to allow attending crews to achieve the objectives of the incident.
• Monitoring and Review: evaluation and recording of National Resilience incidents and exercises.
• Integration of National Resilience capability: integration of National Resilience capability into planning assumptions for identified or emerging local risks.
• Multi agency integrated response: how the Fire and Rescue Service engages with other organisations and agencies to meet effective resolution to National Resilience incidents.
OFFICIAL 45 National Resilience (cont).
As there has been no external assessment in 2016/17 we have self assessed ourselves and this indicates no change to the assessment reported in October 2014.
Of the 41 elements detailed in the KAAs all 41 received a positive conformity rating from the National Resilience Assurance Team.
‘It was evident that the areas the Assurance Team were tasked to review mean that statutory duties outlined in the Fire and Rescue Services Act 2004 and the Fire and Rescue Services Emergencies (England) Order 2007 in relation to NR capability can be satisfactorily discharged by CFB.’ National Resilience Assurance Team Report of the Outcomes for Cleveland Fire Brigade 2015/16 31st October 2014
The NR team have also stated that it is the first time that any FRA has achieved conformance across all areas of audit.
We currently assess our National Resilience Assessment as being
Compliant Achieved Reasonable Assurance? Yes
46 OFFICIAL 12 Good Corporate Governance
This section provides information to the public to demonstrate that the Fire and Rescue Services corporate governance arrangements are efficient, effective and promote value for money. The judgement will be made from the following sources of information.
Internal Audit Internal Audit is prescribed by the Accounts and Audit regulations 2003 in accordance with the CIPFA Code of Practice for Internal Audit in Local Government. A risk based internal audit plan is developed in conjunction with the Authority’s Treasurer with the purpose of providing assurance that the system of internal management controls are operating effectively within the Brigade. In 2016/17 the Brigade’s internal audit function has been delivered by Hartlepool Borough Council.
External Audit External Audit is governed by the Audit Commission Act 1998 and the Accounts and Audit (England) Regulations 2011. The Audit Commission appoints a body to act as the Brigade’s External Auditors and this body is governed by the commission’s code of audit practice which prescribes the way in which auditors carry out their functions. In 2016/17 the Brigade’s external Auditor was Mazars.
Other External Assessment and Audits At various times during the year external bodies may conduct ad-hoc inspections and audits on the Brigade’s activities covering specific areas of service.
We assess ourselves as
Performing Strongly
OFFICIAL 47 Internal Audit Inspection Inspection On 10th May 2017 the Head of Audit and Governance at Hartlepool Council, our Internal Auditors issued the following CFA: Officers Expenses CFA: Payroll opinion on the Brigade’s system of Internal Control. CFA: Middlesbrough Station CFA: Stores ‘From the work undertaken during the year 2016/17, Internal Audit has reached the opinion that key systems are operating soundly and that there is no fundamental CFA: Stockton Station CFA: Creditor Payments breakdown in controls resulting in material discrepancy. Satisfactory arrangements were implemented to ensure the effective, CFA: Stranton Station CFA: Creditors efficient and economic operation of Cleveland Fire Authority’s financial affairs.’ CFA: Information Systems CFA: Pensions
The table opposite details the internal audits and their associated outcomes for CFA: Retained Firefighter Claims the audit inspections that have been undertaken in 2016/17.
Achieved Satisfactory Assurance? Yes
48 OFFICIAL External Audit
To ensure transparency and accountability, an independent audit of The Financial Report is undertaken by our External Auditor (Mazars LLP) to ensure there are sound governance arrangements in place and that we are providing value for money services.
In the Annual Audit Letter presented to members of the Audit and Governance Committee, Mazars stated;
In our opinion, the information given in the Narrative Statement for the financial year for which the financial statements are prepared; • Is consistent with the financial statements;
• give a true and fair view of the financial position of Cleveland Fire Authority and its group as at 31 March 2016 and of its expenditure and income for the year then ended; and
• have been prepared properly in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2016/17
Financial Report and Mazars Annual Audit Completion Report 30th September 2016
Achieved Reasonable Assurance? Yes
OFFICIAL 49 Other External Assessment and Audits
Annual Statement of Assurance
A requirement of the National Framework for Fire and Rescue Services for England (2012) is to produce and publish an Annual Assurance Statement. The Framework specifically states:
‘FRS must provide annual assurance on financial, governance and operational matters and show how they have had due regard to the expectations set out in their integrated risk management plan and the requirements included in the Framework. To provide assurance, fire and rescue authorities must publish an Annual Statement of Assurance’.
The Annual Statement of Assurance was approved by the Executive Committee of the Fire Authority on the 25th November 2016. No issues were identified during the production of this statement.
The Annual Assurance Statement is available on our website at: www.clevelandfire.gov.uk/fire-authority/documents-publications/strategic-reports/
On 4th July the Home Secretary reported to parliament on progress Fire and Rescue Services were making in complying with the National Framework. This report stated that the Home Secretary is satisfied that each fire and rescue authority in England has:
• Complied with the publication of their Annual Statement of Assurance for 2015/16;
• Complied with the publication of their updated Integrated Risk Management Plan element;
• Complied with the National Resilience Assurance elements. Achieved Compliance with National Framework? Yes
50 OFFICIAL Public Contracts Regulations Act 2015: Payment Performance Statistics
Regulation 113 of the Public Contracts Regulations Act 2015 requires all contracting authorities to pay undisputed invoices within 30 days. When undisputed invoice payments are not paid within this 30 day period, interest becomes payable on the outstanding amount as set out in the late payment legislation.
There is a requirement under regulation 113(7) of the Public Contracts Regulations Act 2015 that from April 2016 onwards the Brigade must publicise the following information. (i) Percentage of invoices to first tier suppliers / prime contractors of invoices (not under dispute) paid within 30 days. (ii) The amount of interest paid to suppliers due to late payments . (iii) The total amount of interest that the contracting authority is liable to pay (whether or not paid) due to breach of regulation 113(reportable from April 2017).
The following table demonstrates the Brigade’s performance against this requirement for 2016/17 in advance of the statutory deadline for publication of such information.
Interest the Authority is The Amount of Interest Percentage of Valid Number of Invoices liable to pay to Suppliers actually Paid to Suppliers Year Invoices Paid within paid as a result of a breach of due to breach of 30 Days (target 95%) Regulation 113 Regulation 113
2015/16 4,941 96.30% £36,278.69 £0.00
2016/17 4,690 97.00% £16,281.02 £0.00
Compliance with Public Contracts Regulation Act Section 113? Yes
51 OFFICIAL Annual Governance Statement As part of the development of the Financial Statement for the Brigade there is a requirement for the Brigade to produce an Annual Governance Statement which provides assurance that the Brigade’s Governance Arrangements are sound and operating effectively.
In the interests of continually improving and developing governance arrangements the Brigade has developed an improvement plan. Progress against this improvement plan in 2016/17 is shown in the chart.
CIPFA/ALARM Risk Management Benchmarking Assessment
In 2016/17 we undertook a self-assessment of our Risk Management Governance Leadership and Management 5 Driving Framework. This assessment, co-ordinated by CIPFA/ALARM, was designed to Policy and Strategy 5 Driving provide assurance on our risk management arrangements and we People 4 Embedded and Integrated assessed ourselves over seven key areas : Partnership and Resources 5 Driving
Processes 5 Driving Overall Assessment Risk handling and Assurance 4 Embedded and Integrated 5 Driving Outcomes and Delivery 5 Driving
OFFICIAL 52 13 Value for Money (VFM)
'Value for money' (VFM) is a term used to assess whether or not an organisation is providing the public and businesses of Teesside with the maximum benefit from the services it provides. VFM is also often described in terms of the 'three Es'.
. Economy – the careful use of resources to save expense or time; . Efficiency - delivering the same level of service for less cost or time; . Effectiveness - delivering better services and outcomes from the use of the same level of resources or time.
We strive to be a high performing and continually improving organisation, whilst at the same time achieve value for money and thus maximise the use of the finite resources available to ourselves.
We can demonstrate that we are providing value for money services through analysis of the following areas;
. External Audit opinion of the Brigade’s VFM; . Financial Outturn; . Efficiencies; . Cost per Head of Population; . Adequacy of Reserves.
We assess ourselves as
Performing Strongly
OFFICIAL 53 External Audit: Annual Audit Opinion on VFM and Financial Resilience
External Audit is required to conclude whether the Council put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources. This is achieved by considering the Council’s arrangements against the following criteria specified by the National Audit Office.
‘In all significant respects, the audited body has proper arrangements to ensure it takes properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people. The assessment will be formed looking at the particular areas in particular;
Informed decision making Sustainable Resource Deployment Working with Partners and other third parties’
In February 2016 as part of the Audit Strategy Memorandum, Mazars reported to Members of the Audit and Governance Committee no significant risks relevant to the value for money conclusion were identified.
In the Audit Completion report presented to members of the Executive Committee on 30th September 2016, Mazars stated;
“We have planned and undertaken our work in accordance with the Code of Audit practice as issued by the National Audit Office and had regard to relevant guidance. Based on our risk assessment, we undertook such work as we considered necessary to form a view on whether, in all significant respects, the Authority had put in place proper arrangements to secure economy, efficiency and effectiveness of its resources.
On the basis of our work having regard to the guidance on the specified criterion published by the National Audit Office, we are satisfied that in all significant respects, Cleveland Fire Authority put in place proper arrangements to secure the economy, efficiency and effectiveness in its use of resources for the year ending 31/3/2016.”
Financial Report and Mazars Annual Audit Completion Report 30th September 2016
Achieved VfM and Have Financial Resilience? Yes
OFFICIAL 54 Financial Outturn 2016/17 The Authority’s total net revenue budget for 2015/16 was £26.291m; which equates to £456.77 per person in the Teesside area.
The following table provides an overview of the outturn of the Brigade in 2016/17, shown by the types of services provided.
Budget Outturn Variance £000 £000 £000
Community Fire Safety 2,588 2’578 -10
Firefighting and Rescue Operations 17,507 17’597 +90
Management and Support Services 7,438 7’172 -266
Corporate Expenses 201 193 -8
Gross expenditure 27,734 27’540 -194
Income & Reserves 1,443 1’722 -279
Net expenditure 26,291 25’818 -473
Brigade’s outturn within budget for 2016/17? Yes
OFFICIAL 55 2016/17 Efficiencies
The Authority’s Efficiency Policy and its Community Integrated Risk Management Plan drives a focused robust approach to the delivery of efficiencies through various service transformation programmes.
The on-going programme of efficiencies around a number of themed work streams prevalent to 2016/17 and which have contributed to the current and future levels of efficiencies include:
Organisational Structure – vacancy management;
Reconfiguration of Front Line Service Delivery arrangements;
Strategic Asset Management : Estates Rebuild Program and Brigade Fleet.
Met efficiency target of £1.125m ? Yes : Achieved £1.125m
OFFICIAL 56 Cost per Head of Population At face value this cost per person appears high when compared to other Fire and Rescue Authorities but this comparison is disingenuous as it does not take account of the local context and circumstances of individual Fire Authorities. Cleveland’s operating environment is challenging, complex and unique. By taking the local circumstances into account, notably the high risk industry in the area and the substantially high levels of deprivation the area suffers, we can determine that
‘Cleveland Fire Authority is average cost after taking account of the local context.’
Adequacy of Reserves It is always good practice to ensure availability of reserves, either earmarked (intended purpose) or un-earmarked (no specific purpose). The Local Government Act 2003 requires the CFA to consider the proposed level of reserves and the advice of the Treasurer on the level of reserves.
Every year, as part of our financial planning arrangements, we produce a risk assessment on those things that may occur which will impact on our financial position, such as industrial action, pay increases, fire-fighter pensions and Council Tax capping. These are maintained within our Medium Term Financial Plan and from this information we make an estimate of the level of reserves we are likely to need.
In February 2017 the Treasurer commented that:
‘Reserves will reduce from £14.113m at 31st March 2017 to £3.872m at 31st March 2019, which reflects: • Use of the Capital Reserve to fund the Asset Management Plan; and • Use of the CIRMP Implementation Reserves to support the revenue budget in 2017/18 and 2018/19.
An annual review of reserves has been completed to ensure the Authority retains adequate reserves to fund approved capital commitments and to manage financial risks. ‘ CFA Medium Term Financial Strategy 2017/18 – 2019/20 & Council Tax Setting 17thFebruary 2017 OFFICIAL 57 Fire Reform Programme
In May 2016 the government introduced the Fire Reform Programme which focuses on diversity, efficiency and transparency in Fire and Rescue Services.
In order to progress the efficiency and transparency aspects of the programme there is a requirement for each Fire and Rescue Service to publish what they pay for 25 common items of uniform and equipment, so that authorities and the public can compare how much each service spends on these essential items to ensure they are getting the best value for money.
The equipment that this analysis was based is wide ranging, from an Officers shirt, to a Personal Computer to a Fire Appliance, to foam used in fire fighting.
From our analysis of the returns we can see that • 44% of items purchased were above average cost • 66% of items purchased were below average cost • No items were deemed to be either the cheapest or the most expensive • 64% of items were purchased through collaborative arrangements or a purchasing framework
The following table profiles the position each of the 25 items of equipment falls into across a quartile spectrum.
Quartile No (%)
1 (cheapest) 5 (20%)
2 9 (36%) 66% of equipment procured by the Brigade
3 7 (28%) was lower than the average cost. 20% of equipment fell within the top (cheapest) 4 (most expensive) 4 (16%) Quartile
OFFICIAL 58 14 Comparison against other Fire & Rescue Services Whilst aiming to continually improve we also want to be the best in all our benchmarked indicators. So we can self-assess ourselves we have used the following parameters:
• Improve quartile position or remain in top quartile against other FRS’s in our Family Group* in all benchmarked indicators. • Improve quartile position or remain in top quartile against other FRS’s relating to sickness absence** in all benchmarked indicators.
Family Group Family Group 4 consists of 18 Fire Brigades* that benchmark performance information on a quarterly basis against an approved set of performance indicators. The Group meets twice a year to share best practice and how reductions have been made against those relevant indicators.
Occupational Health Group In addition to the benchmarking work provided by Family Group, Cleveland Fire Brigade leads an Occupational Health Group. As part of this work the Brigade produces a sickness absence benchmarking report on a quarterly basis which allows comparison on levels of sickness under key indicators to be undertaken. There is currently in excess of 30 Brigade’s who participate within this benchmarking.
The scoring mechanism used is:
4 3 2 1
Between 76 and 100% Between 51 and 75% Between 26 and 50% Between 0 and 25%
* Family Group 4 consists of the following Fire Brigades: We assess ourselves as Avon, Cheshire, Cleveland, Derbyshire, Essex, Hampshire, Hereford & Worcester, Hertfordshire, Humberside, Kent, Lancashire, Leicestershire, Lincolnshire, Nottinghamshire, * Surrey, Staffordshire, South Wales and Northern Ireland. Adequate Performance ** Source: National Fire and Rescue Service Occupational Health Report 3rd Quarter 2016/17 (See report for membership) *Assessment based on data for period 1st April to 31st December OFFICIAL 59 Safer Communities
Quartile Position Quartile Position Improved / Indicator Benchmark Group Benchmark Group Retained Top 2015/16 2016/17 Quartile? Bottom Deliberate Fires Bottom (18th out of 18)
Bottom Deliberate Primary Fires Bottom (17th out of 18)
Bottom Deliberate Secondary Fires Bottom (18th out of 18)
2nd Quartile Primary Fires 2nd Quartile (8th out of 18)
2nd Quartile Primary Fire Fatalities 2nd Quartile (=8th out of 18)
Top Primary Fire Injuries 2nd Quartile (2nd out of 18)
Top Accidental Dwelling Fires Top (1st out of 18)
Top Accidental Dwelling Fire Fatalities 2nd Quartile (=1st out of 18)
Top Accidental Dwelling Fire Injuries Top (1st out of 18)
Note: Brigade’s position compared to comparator Brigades shown in brackets
OFFICIAL 60 Organisational Excellence
Quartile Position Quartile Position Improved / Indicator Benchmark Group Benchmark Group Retained Top 2015/16 2016/17 Quartile?
3rd Quartile Wholetime Firefighter Sickness 3rd Quartile (20th out of 32)
2nd Quartile Retained Staff Sickness Top (8th out of 18)
2nd Quartile Fire Control Staff Sickness Top (14th out of 28)
Bottom Non Uniformed Staff Sickness 2nd Quartile (31st out of 32)
Quartile Position Indicator Benchmark Group 2016/17
Percentage of Indicators with an 31% Improve quartile position or they remain (4 out of 13) in top quartile compared to other FRS’s
OFFICIAL 61 15 Customer Care Through community engagement we are better able to target our services to what people want and need, improve the take up and delivery of our services, prioritise our services to make better use of limited resources and improve public confidence and satisfaction.
We pride ourselves on the quality of services we provide and are a learning organisation to continually drive the quality of our services.
We monitor customer satisfaction in the following ways: complaints/ compliments, satisfaction surveys such as percentage of people satisfied with our HFSV’s, Fire Safety Audits and the overall service provided by Cleveland Fire Brigade following a fire in the home.
The scoring mechanism used is:
4 3 2 1
95-100% Satisfaction 85-94% Satisfaction 70-84% Satisfaction <70% Satisfaction
Performance Outcome Customer Satisfaction 2016/17
Percentage of People satisfied with the service they received / 96% 4: Performing Strongly the way the Brigade dealt with a complaint
People satisfied with the service they received 22 out of 23 surveys indicate satisfaction
2 out of 2 complaint surveys indicate People satisfied with the way the Brigade dealt with a complaint satisfaction
OFFICIAL 62 16 Compliments and Complaints
Cleveland Fire Brigade is committed to providing a professional and efficient service that is valued by the community it serves. We welcome comments on how we provide this service whether that involves congratulations, criticism or constructive suggestions. All comments received will be used in a positive way to contribute to the formulation of policy and service improvement. A printable policy has been produced to help you if you wish to complain or give a compliment about our service.
You can download the policy for Compliments and Complaints at: http://www.clevelandfire.gov.uk/about/our-policies-procedures/
If you wish to make a compliment or complaint you can do so in the following ways:
. In person at any Cleveland Fire Brigade establishment
. By telephone (01429) 872311
. In writing to the Risk & Performance Department at the Training and Administration Hub or any Cleveland Fire Brigade establishment If you would like to see the key performance in your ward or district please go to: . By email to [email protected] http://www.clevelandfire.gov.uk/ourperformanc e/1.htm . Or complete our online form using the link below: Or click on ‘Our Performance’ on the Brigade http://www.clevelandfire.gov.uk/compliments-complaints/ Home Page: http://www.clevelandfire.gov.uk/
OFFICIAL Compliments From Our Customers
I would like to thank you guys for helping out in a time of The family and carer of 15yr old Down need. I was left without heating & hot water for days until the Syndrome Jack Lee, wish to relay a BIG Citizens Advice made a call for me. I had an almost immediate thank you to the crew who were at response, & within an hour or so, two of your finest arrived Morrisons Ormesby Middlesbrough on with 2 really good heaters & a large thermal blanket, for Saturday 10th September at approx. which me and my little boy are so very grateful. They also 1130hrs. Jack loves fire engines and the gave me a safety check while there were here and lots of good firefighters offered to show him the fire advice. Thank you for your help! engine, putting blue lights and siren on, much to his delight. Jack was on a high all day and talked of his experience all weekend much to the families delight. Gentleman left flat chasing support worker They wish to say the whole family were and left pan and cat in flat and locked overjoyed with the firefighters for making himself out. We extend his thanks to the Jack so happy and for the time and crews who attended. patience with their child. Mr Sniff
My dad had a stroke last Monday and because the ambulance could not get to John rang to pass on his him quickly the fire brigade attended. My dad is doing well and slowly thanks for the Brigade’s recovering in hospital thanks to your guys quick response and kind words. My assistance at house fire – Mr dad is 72 and my mum 70 they have been married for 52 years and they were Stewart stated from making very frightened. They the initial call to the response have both said that the men who attended that morning were so very kind and of the firefighters all dealt caring and helped them stay calm and really did a fantastic job. with him and his family in a I do not know who attended or which station they came from but I would like professional manner and they to pass on mine and my families thanks to you all as my dad is very precious to really appreciate all help us and those men made what was a terrifying situation manageable. given. Well done to you all. .
OFFICIAL 64 17 Equality and Diversity Profile
We are required by the Equality Act to publish a profile of the Brigade’s ‘customers’* in relation to the key characteristics detailed in the Equality Act. The following section provides details of the key characteristics that we collect from our surveys of users of our services and compares them to the averages for Teesside and England as derived from the National Census information.
England & Cleveland CFB Customer* Category Type Wales % % %
16-29 23.2% 18.7% 3.2% 30-44 25.3% 18.2% 32.3% Age 45-49 23.2% 20.7% 41.9% 60-64 7.1% 5.9% 3.2% 65+ 21.3% 17.2% 19.4%
Yes 17.9% 21.1% 19.4% Long-Term Health or Disability No 82.1% 78.9% 80.6% Not Declared 0.0% 0.0% 0.0%
Single 34.6% 34.6% 33.3% Married 46.6% 45.6% 40.7% Marital Status Civil Partnership 0.2% 0.1% 7.4% Other 18.6% 19.7% 18.5% Not Declared 0.0% 0.0% 0.0%
Males 49.2% 48.9% 33.3% Gender Females 50.8% 51.1% 66.7%
OFFICIAL 65 England & Cleveland CFB Customer* Category Type Wales % % %
White 86.0% 94.5% 92.9% Dual Heritage 2.2% 1.0% 0.0% Asian or Asian British 6.8% 3.1% 7.1% Ethnicity Black or Black British 3.3% 0.6% 0.0% * Those people who have used CFB services (including incidents) and completed one of our surveys. Chinese or other 0.7% 0.4% 0.0% Other 1.0% 0.4% 0.0%
Christian 59.3% 67.8% 64.0% Buddhist 0.4% 0.2% 0.0% Hindu 1.5% 0.3% 0.0% Jewish 0.5% 0.0% 0.0% Religion or Belief Muslim 4.8% 2.7% 4.0% Sikh 0.8% 0.2% 0.0% Other Religion 0.4% 0.2% 0.0% No Religion 25.1% 22.3% 32.0% Religion Not Stated 7.2% 6.2% 0.0%
* Those people who have used CFB services (including incidents) and completed one of our surveys.
OFFICIAL 66 18 Glossary Of Terms
Accidental Dwelling Fires (ADF): incidents that occurred in the home that were not deliberate;
BVPI’s (Best Value Performance Indicators): defunct indicators that form the basis of the majority of our performance indicators;
Call Challenge: an initiative where our Control Room Operators can challenge the caller if they believe the incident to be malicious;
Call Questioning: an initiative where our Control Room Operators question an incident with an Automatic Fire Alarm to confirm there is a fire with someone on site at the time of the incident;
CIPFA: The Chartered Institute of Public Finance & Accountancy;
CLG: Department of Communities and Local Government;
COMAH sites: Control Of Major Accident Hazards;
Complaint: anyone expressing dissatisfaction in relation to any action or service provided by Cleveland Fire Brigade;
Compliment: an expression of satisfaction with the service provided by the Brigade or its employees in the course of their duties;
CIRMP: Community Integrated Risk Management Plan;
Control Operator: members of staff that take calls relating to operational incidents etc;
Co-Responder: a partnership with the NEAS (North East Ambulance Service) to attend Medical Emergencies in East Cleveland;
CSR: Comprehensive Spending Review;
OFFICIAL 67 Deliberate Fire: a fire that following our investigations has been deemed to have been started with malicious intent;
Economic Cost of Fire: produced by CLG to provide estimations for the cost of specific types of fire. Costs include human costs, property damage, lost business and response cost. Costs incurred by the Criminal Justice System are excluded in all but deliberate fires;
ELT (Executive Leadership Team): Group of Directors that have responsibility for the running of the Brigade;
Fatalities: fatal casualties occurring at an incident;
FAM (False Alarm Malicious): incidents that are made with the intent of making the Fire Brigade attend a non- existent event;
FTE (Full Time Equivalent): a unit used to determine the percentage of time part time staff work;
Green Book (Support) Staff: corporate staff contracted under NJC Conditions of Service;
Heartstart: an initiative ran in partnership with the British Heart Foundation to provide lifesaving first aid skills;
HFSV: Home Fire Safety Visit;
HO: The Home office;
Injuries: Non-Fatal Casualties that occurred at an incident;
KSI (Killed and Seriously Injured): indicators used by Cleveland Police for people who have died or were seriously injured in Road Traffic Collisions;
Learn and Live: a group of hard hitting presentations covering Road Safety, Home Safety, Drugs/Alcohol Safety and Workplace Safety;
OFFICIAL 68 Mazars: organisation that audits Cleveland Fire Brigade on its financial, corporate governance arrangements, VfM, financial resilience improvements;
NI’s (National Indicators): these indicators were taken from the BVPI’s where only two were directly applicable to the Fire Service
ONS: Office of National Statistics;
Primary Fires: fires that occur within a property;
Response Standards: standards produced to determine how quickly we should aim to arrive at a certain type of incident;
Retained: members of staff that respond to incidents on a part time basis;
Secondary fires: fires that do not occur in property e.g. grass/ refuse/ wheelie bins;
Stay Safe and Warm: an initiative that aims to raise awareness of the dangers faced by people who struggle to keep warm during the cold months and to provide advice and support to anyone identified;
VfM (value for money): term used to prove an organisation is doing the right thing, in the right way, with the right people;
Wholetime: operational staff working full-time contracts that comprise of a regular rotating pattern of day shifts, night shifts or day duty.
OFFICIAL 69 If you or anyone you know would like to see this document in another language, a different format or need assistance in reading or understanding it please contact the Risk and Performance Team at:
Cleveland Fire Brigade Training and Administration Hub, Endeavour House, Stockton Road, Hartlepool TS25 5TH
Tel: 01429 872311
Web: www.clevelandfire.gov.uk
OFFICIAL Please contact us with your comments:
The Communications Team Cleveland Fire Brigade Training and Administration Hub Endeavour House, Stockton Road Hartlepool TS25 5TH
T:01429 872311 [email protected] www.clevelandfire.gov.uk
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OFFICIAL AGENDA ITEM 5.2 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017
INTERNAL AUDIT REPORTS 2016/17
REPORT OF THE CHIEF FIRE OFFICER For Information
1. PURPOSE OF REPORT
1.1 To appraise Members of the progress made on the recommendations contained within the Action Plans resulting from the Internal Audits carried out to date.
2. RECOMMENDATION
2.1 That Members note the progress made to date by Brigade and Proper Officers in achieving the recommendations contained within the Internal Auditor’s Action Plans.
2.2 That Members consider whether it is necessary to report to the Fire Authority on any concerns raised.
3. BACKGROUND
3.1 Under the Accounts and Audit Regulations (2006), the Fire Authority is responsible for ensuring an adequate and effective internal audit.
3.2 At the Fire Authority’s meeting held on the 19 February 2016, Members reviewed and gave approval to the Internal Audit Plan for 2016/17. The audits are carried out by Hartlepool Borough Council.
4. INFORMATION
4.1 The following audits have been undertaken since the previous meeting:
(i) Information/Data Management 2016/17
A final Internal Audit Report on Information/Data Management was issued on 13th February 2017. The audit focussed on the arrangements in place for ensuring compliance with the following:
(a) Information Commissioner’s Officer (ICO) Definition Documents – these provide additional guidance to specific types of organisations in relation to the data that must be published under the Model Publication Scheme which in turn forms part of the Freedom of Information Act;
(b) DCLG Transparency Code of Practice 2015.
Satisfactory assurance was provided in relation to item (a) above that the risks identified are well controlled.
OFFICIAL 1 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017 Date XXX 2011
It was recommended that a full review of the procurement information made available should be undertaken to ensure that the requirements of the Transparency Code 2015 are achieved. Management responded that a review into the publication of invitation to tender/quote and contract information has now been completed.
(ii) CFA Payroll 2016-17
The following areas were reviewed as part of the audit work programme:
(a) Policies and procedures; (b) Arrangements for processing starters and leavers; (c) Variations to pay; (d) System access and data security; (e) Reconciliation of ResourceLink to Integra (FMS); (f) Data input, processing and output controls. The final Audit Report, issued on 22nd February 2017 highlighted that the risks identified are well controlled and that no further action plan is required.
(iii) Pensions
The period reviewed as part of the audit work undertaken was from the end of the previous audit (November 2015 – November 2016). The audit scope did not include a review of the governance and management of investment of the fund, nor did it include a review of the CLG return as this is audited separately by Mazars.
The final report was issued on 23rd March 2017 and stated that overall processes and procedures in place appear to work well and no actions which require inclusion in the Action Plan were identified.
(iv) Attendance Management
The audit focused on the arrangements in place for the monitoring and reporting of sickness data and also sickness management, including the arrangements in place for annualised hours and the associated policies and schemes within the HR Division.
The audit also covered a review of the findings which were identified for the audit work carried out and included in the previous Final Audit report’s Action Plan to ensure these have been actioned and implemented as agreed.
The following actions were recommended by the Internal Auditors:
(a) The Annualised Hours Policy should be reviewed and agreed by ELT; (b) The Attendance Management procedures should be reviewed, approved and communicated to relevant staff to ensure they are aware of their responsibilities.
OFFICIAL - INTERNAL AUDIT REPORTS 2016/17 2 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017 Date XXX 2011
Management responded a review of the whole area of attendance is expected to be undertaken and completed by the agreed date of 31 December 2017.
The Auditors referred to the Brigade’s Special Leave and Family Friendly policies and recommended that both policies should be reviewed and updated where necessary to reflect current procedures and these should be approved and communicated to all staff.
Management confirmed changes to family friendly policies and procedures are to be undertaken and completed by the agreed date of 31 December 2017.
The Auditors also recommended that all relevant documentation is completed and obtained to support all elements of employee absence by 26 May 2017.
Management responded that the HR Team has recently been restructured and an HR Officer assigned responsibility for supporting the Brigade’s Employee Health and Wellbeing strategy, which should improve the efficiency of all the sickness administration processes. The Brigade is also investing in a new HR Information System which will automate a large proportion of sickness absence monitoring and reporting.
Finally, in order to ensure unauthorised access to systems, it was recommended that system access rights for ex-employees should be deleted. Management responded that following the outcome of the audit, the relevant workflows have been amended and developed to incorporate very clear instructions for closing down HR Systems and Kronos access accounts upon termination of employment as part of the team’s leaver processes.
(v) Retained Firefighter Claims 2016-17
The audit focused on the claim forms submitted by Retained Firefighters, the processing of these claims by the Payroll Team and the payments made as a result of this processing. The audit review also tested that adequate checks are being made on the manual processing elements and that appropriate budget monitoring and reconciliations of volume and value of transactions are being performed. The period reviewed covered the period April 2016 to end of January 2017.
One recommendation was contained in the report which advised that all documentation submitted for payment should be correctly authorised prior to processing, to avoid incorrect payments being made.
Staff have now been reminded of the need to ensure forms are correctly signed and authorised before being submitted, and payroll staff have been reminded that any forms submitted without appropriate signatures will not be processed, and will be returned.
OFFICIAL - INTERNAL AUDIT REPORTS 2016/17 3 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017 Date XXX 2011
4.2 DRAFT REPORTS
(i) Budgetary Control 2016-17
The audit reviewed both revenue and capital budget and the draft report issued on 4th April 2017 provided satisfactory assurances that the risks identified are well controlled, and as such no follow up action is required.
(ii) Debtors
The draft report issued on 4th May 2017 identified that all objectives have been achieved and that no follow up action is required.
5. AUDIT PLAN – QUARTER 1 2017/18
5.1 During the period 1st April 2017 to 30th June 2017, the internal audit service plans to complete the following audits:
Ethics (5 Days) Fraud Awareness (5 days) Training School (5 days)
KAREN WINTER DIRECTOR OF CORPORATE SERVICES
OFFICIAL - INTERNAL AUDIT REPORTS 2016/17 4
Page 1 of 13
INTERNAL AUDIT – 2016/17
ACTION PLAN: CFA – RETAINED FIREFIGHTER CLAIMS 2016-17
1 2 3 4 5 6 7 8 9 Priority Progress to Improvements Ref/ 1 = Low Implications Officer Agreed Recommendations Authority’s Response 13.04.2017 to Service/ No. 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ Retained Firefighters are a vital part 1 of today’s FRS. They provide an . C Cordiner June 7 2017 efficient, cost effective and reliable service that provides emergency cover to more than 60% of the UK. The retained part of the FRS is a group of men and women who are “on call” to respond to a range of emergencies when their alerter sounds. Retained FFs will respond to a broad range of incidents including: Fires; RTCs/railway accidents/air accidents/industrial accidents; chemical incidents, animal rescues, water rescues, lift rescues, flooding etc. Retained FFs receive payment for the work they undertake, and the audit focussed on the claim forms submitted by Retained FFs and covered the This relates to W/T FFs period April 2016-End January 2017. providing cover at retained A review of additional hours stations which are more payments made to some of the 2 complex than other similar sample identified that whilst the Forms. Staff have been majority of the sample had been reminded of the need to correctly authorised prior to ensure forms are correctly processing for payment (83%) for signed and authorised one Ret. FF the SW33A form had before being submitted, not been signed by the authorising and payroll staff reminded officer in 2 instances. It is that any forms submitted recommended that all without appropriate documentation submitted for signatures will not be payment should be correctly processed, and will be authorised prior to processing. returned.
OFFICIAL ** updated 17 May 2017 ** 1 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: CFA PENSIONS 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements Ref/ 1 = Low Implications Officer Agreed Recommendations Authority’s Response 13.04.2017 to Service/ No. 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ A review of CFA Pensions was 1 undertaken in accordance with the N/A . D Snelling Internal Audit Strategic Plan 2016- 17. Responsibility for policy on the pension schemes rests with the DCLG, whilst the administration and payment of individual pensions and benefits is the responsibility of FRSs. The audit focussed on the systems and procedures in place within the Pensions and Payroll section of CFA, in order to provide assurance on the administration of the fund with a view to ensuring the accuracy, completeness and timeliness of payments due to and from the fund and compliance with DCLG circulars and other guidance. The audit scope did not include a review of the governance and management of investment of the fund nor did it include a review of the CLG return as this is audited separately by Mazars. Overall processes and procedures in place appear to work well and no actions which require inclusion in the Action Plan have been identified as part of the audit work undertaken.
. OFFICIAL ** updated 17 May 2017 ** 2 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: CFA - PAYROLL
1 2 3 4 5 6 7 8 9 Priority Progress to Improvements Ref/ 1 = Low Implications Officer Agreed Recommendations Authority’s Response 13.04.2017 to Service/ No. 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £
1 The areas reviewed as part of the . C Cordiner 2016/17 audit work programme were: Policy and procedures; Arrangements for processing starters and leavers; Variations to pay; Systems Access and Data Security; Reconciliation of Resourcelink to Integra FMS; Data input, processing and output controls. A SLA is in place between CFA and HBC for the provision of payroll services. The audit reviewed the overall arrangements in place undertaking detailed testing of transactions for the period 1/4/16 to 31/7/16.
No further actions were identified.
OFFICIAL ** updated 17 May 2017 ** 3 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: ATTENDANCE MANAGEMENT 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements Ref/ 1 = Low Implications Officer Agreed Recommendations Authority’s Response 13.04.2017 to Service/ No. 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ The audit focussed on the N Moore arrangements in place for the monitoring and reporting of sickness data and also sickness management including the arrangements in place
for annualised hours and the associated policies and schemes within the CFA HR Division. The audit covered a review of the findings which were included in the previous Audit Report’s action plan to ensure these have been actioned and implemented. 1 The Annualised hours policy 1 A review of the whole review has not taken place – this area of attendance is Nicola Moore 31/12/2017
should be reviewed and agreed expected to be by ELT. undertaken during
2017/18.
2 There has been no evidence A review of the whole 3 Nicola Moore 31/12/17 provided to demonstrate that the area of attendance is annual reporting of annualised expected to be hours to ELT has been undertaken during undertaken. 2017/18.
The Attendance Management A review of the whole 3 3 Nicola Moore 31/12/17 procedures should be reviewed, area of attendance is
approved and communicated to expected to be relevant staff to ensure they are undertaken during aware of their responsibilities. 2017/18.
OFFICIAL ** updated 17 May 2017 ** 4 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: ATTENDANCE MANAGEMENT (Continued) 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 4 The FA has a Special Leave Policy / Family Friendly Policy in Nicola Moore 31/12/17 3 Changes to family friendly place which were both ratified in October 2008 with review dates policies and procedures are to be undertaken noted as May 2011. There is no during 2017/18. evidence to show that these policies have been subject to
reviews since ratification. Both policies require review and updating as necessary to reflect current procedures which should be approved and communicated to all staff.
5 A random sample of sickness 2 The HR Team has recently entries from the sickness report been restricted and an HR Nicola Moore 26/05/2017 showed gaps in the report: It is Officer assigned recommended relevant responsibility for documentation is completed and supporting our Employee obtained to support all elements Health and Wellbeing of sickness absence. strategy (which includes sickness administration). This appointment should
improve the efficiency of all the sickness admin processes. The Brigade are also investing in a new HR Information System which will automate a large proportion of sickness absence monitoring and reporting.
OFFICIAL ** updated 17 May 2017 ** 5 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: ATTENDANCE MANAGEMENT (Continued) 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 6 Reports of users with access to Since notification the the HR System was provided Account for the ex- Nicola Moore 26/05/17 employee has now been and also Kronos which was cross referenced with a payroll 2 deleted.
report to identify any users who The Kronos read only are not current employees. One access for the 5 ex user was identified as a former employees has now been employee for the HR System deleted. with full system access and 5 users listed on Kronos are also Following the outcome of ex-employees with view only the audit the relevant access. It was recommended workflows have been that system access rights for ex amended and developed to incorporate very clear employees should be disabled. 5 instructions for closing down HR Systems and Kronos access accounts upon termination of employment as part of the team’s leaver processes.
OFFICIAL ** updated 17 May 2017 ** 6 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: CFA DEBTORS 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 1 An audit was undertaken of the CFA Sundry Debtors system in C Cordiner accordance with the 2016/17 Internal Audit Plan. The audit focussed on the following areas: System security; Debtor records (set up and use of); Charging framework; Debt collection; Debt Recovery; Performance Management.
Satisfactory assurance was provided that the risks identified are well controlled, and no further actions are required.
OFFICIAL ** updated 17 May 2017 ** 7 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: BUDGETARY CONTROL 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 1 A review of budgetary control measures was carried out in line with C Cordiner the Internal Audit 2016/17 Plan. The audit involved reviewing both revenue and capital budgets and provides assurance in the following areas: Roles and Responsibilities of officers and Members are clearly defined in relation to the budget setting/monitoring process; Budgets are prepared within the time frame set out in the budget timetable; An approved Medium/Long Term Financial Strategy is in place; The Budget is promptly and accurately uploaded into the financial ledger before the 31/03 deadline; Virements are authorised in accordance with Financial procedure rules; Accurate and timely information is provided to budget holders to enable them to make key decisions; The level of reserves is determined by the Authority’s financial risk management process and adhered to. No Action Plans required at this time.
OFFICIAL ** updated 17 May 2017 ** 8 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: CONTRACT AUDIT 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 1 A review of CFA Contracts was An IOP is issued to the undertaken in accordance with the 2 Head of Procurement – C Cordiner September internal audit strategic plan. post is currently vacant. 2016 CFA has a procurement framework IOP is monitored via. 1:1s which aims to ensure that the with DCS throughout the acquisition of goods, services and year using a performance works from suppliers are appropriate monitoring system. At the and procured at the best possible year end a new IOP is cost. issued which captures new performance measures. The aim of the audit was to review Some of the targets in the arrangements focussing on the Strategy are no longer following areas: relevant and have been Policy and procedures superseded. A new Roles and responsibilities process is now in place Supplier management with regular reporting to Tenders/quotations ELT and Members on Contract Management strategic actions, tactical Performance Management actions are reported to Director. Appendix 1 of the Procurement Strategy details the procurement action plan which outlines the targets and deliverables to achieve the objectives. There is no evidence that progress against the action plan is reported to ELT, although elements of the action plan are monitored via. the Internal Operation Plan. It is therefore recommended that progress against deliverables in the action plan should be updated and reported to ELT.
OFFICIAL ** updated 17 May 2017 ** 9 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: INFORMATION/DATA MANAGEMENT 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 1 The ICT Officer (Information Governance) is responsible for Details of every invitation D Richards ensuring compliance with the ICO to tender for contracts with guidelines and disseminates a value that exceeds guidance to specific individuals £5,000 will be published in responsible for the information to be future. For any contract published. No specific reviews are with a value that exceeds undertaken to ensure data is £5,000 all the details will correctly published however the FOI be published in future from Officer checks data has been made the next quarterly available. Compliance with the ICO publication onwards, with Definition Document and the the exception of: Transparency Code of Practice has Non-recoverable VAT, been reviewed and there are a few Information on whether a areas where full compliance could supplier is a small or not be evidenced during the audit. medium enterprise or a voluntary or sector ICO Definition Document organisation – we are The website requires updating – investigating ways in currently under review. which this can be brought Transparency Code 2015 up to date. Publication of invitation to tender /quote and contract information does not appear to be fully in line with the guidance and is under review.
It is recommended a full review of the procurement information made available should be undertaken to ensure that the requirements of the Transparency Code 2015 are achieved.
OFFICIAL ** updated 17 May 2017 ** 10 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: CREDITORS 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ 1 Access to the creditor payment system may not provide an adequate 2 The report indicated has C Cordiner 31 Jan 2017 separation of duties in the process been requested to be set including approval and checking of up. transactions resulting in inaccurate or fraudulent transactions being processed – eg. The Finance Team all have access to complete all elements of a transaction in the purchase ledger. Although separation of duties is maintained by division of work there still remains the possibility that one member of staff could complete an entire transaction.
It is suggested that the Integra Support Team are engaged to write a report which will identify any transactions that have been completed by one member of staff on the purchase ledger, that this report is run at agreed intervals (eg monthly), and sent to the Director of Corporate Services or the Treasurer for review.
OFFICIAL ** updated 17 May 2017 ** 11 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: OFFICERS EXPENSES 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High £ There are comprehensive and up to date procedures for the processing C Cordiner and approval of officer claims and these are accessible and understood by all staff who have input or authorisation duties. All expenses paid appear reasonable and in accordance with normal financial procedures. All claims were made on the correct form, authorised and had receipts attached where necessary. A brief analysis of the payments made via Integra found that Opthalmic and Long Service Awards were not exceeded. Testing identified that the total value of the claim had been paid and the claims were promptly processed when received by the Finance Section. All payments via the payroll system are clearly identified on payslips. The overall opinion is that Satisfactory Assurance is provided that the risks identified are well controlled.
OFFICIAL ** updated 17 May 2017 ** 12 APRIL 2017
INTERNAL AUDIT – 2016/17
ACTION PLAN: FULL TIME FIRE STATIONS 2016-17; MIDDLESBROUGH/STOCKTON/STRANTON FIRE STATIONS 1 2 3 4 5 6 7 8 9 Priority Progress to Improvements 1 = Low Implications Officer Agreed Ref/ No. Recommendations Authority’s Response 13.04.2017 to Service/ 2 = Med Financial/Staffing Responsible Timescale Efficiency Savings 3 = High 1 The Audit objective is to ensure that £ the system controls in place at S Johnson/T November Middlesbrough Fire Station provide McGouran/I 2016 reasonable assurance that income is Dixon recorded properly, accounted for and promptly paid into the FA;s Bank Account; expenditure is appropriate, authorised and accounted for; assets and date are securely held and that adequate Health & Safety procedures are in place, with adequate arrangements to comply with them.
All of the above objectives were received, with the following Property Services intend exception: to expand the Asset Operational inventories are management register to undertaken daily, and the auditor 2 furniture in due time – Ops was advised that the station do not do not have any influence have a copy of the inventory co- on this. ordinated and retained centrally by Operational Equipment Property Services. By close of audit, records are held and this had still not been received. It is managed on station with recommended that the auditor is effect reporting and provided with a copy of the Station’s tracking in place via. asset register to enable testing to be logistics. IT also hold an completed, as Inventory records may inventory for all equipment not be accurate and may result in on station. assets being misappropriated or lost. Inventory records may not contain Disposal of items is sufficient detail to enable assets to managed via. Property be identified. and IT respectively.
OFFICIAL ** updated 17 May 2017 ** 13 APRIL 2017 AGENDA ITEM 5.3 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
PERFORMANCE TARGETS 2017/18
REPORT OF THE CHIEF FIRE OFFICER
For Noting
1. PURPOSE OF REPORT
1.1 To appraise Members on the targets for Local Performance Indicators for 2017/18.
2. RECOMMENDATION
2.1 That Members note the targets for 2017/18 outlined in the report at Appendix 1.
3. BACKGROUND
3.1 Each year the Brigade reviews and where necessary revises its targets in line with the Authority’s Strategic Goals and Aims with the intention of using the targets to drive continuous improvement in services.
3.2 When reviewing the targets for 2017/18 the following sources of information have been used; performance outturn for 2016/17, as detailed in the Annual Performance and Efficiency Report 2016/17, the national operational statistics published by the Home Office and the Brigade’s family group comparator performance.
3.3 Using the information detailed above, targets are calculated by applying the average reduction year on year with an additional weighting based on the Brigade’s quartile position, to the 2016/17 outturn. This ensures that the performance targets for 2017/18, promote and drive continuous improvement over and above other Brigades.
3.3 After the targets were calculated they have been verified and validated using professional judgement to determine whether the specific target for each indicator is: Promotes continuous Improvement; Maintains Performance; Is stretching but achievable.
OFFICIAL 1
AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
4. PROPOSED TARGETS
4.1 Attached at Appendix 1 is a summary report that highlights the methodology adopted and the targets for 2017/18 that have been calculated using this methodology and adopted by ELT for incorporation into the Brigades Performance Assessment Framework.
4.2 Progress against targets will be reported to members of the Audit and Governance committee on a quarterly basis.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
OFFICIAL – PERFORMANCE TARGETS 2017/18 2
OFFICIAL
Corporate Suite of Indicators Target Setting 2017/18
Risk & Performance OFFICIAL
CONTENTS
1. INTRODUCTION Page 2
2. TWO PRONGED APPROACH/PROCESS Page 4
3. SUMMARY OF PROPOSED REDUCTIONS Page 6
Official 1. INTRODUCTION
AIM AND REQUIREMENTS
The aim of this report is to inform the Brigade of the targets which have been set for the forthcoming five years. This target setting report is produced annually towards the end of the financial year and takes into account all deletions, additions or amendments to indicators. All targets are required to be fair, challenging, achievable and realistic. Priority areas for the Brigade are given targets.
METHODOLOGY
The targets have been calculated using Home Office Returns, Incident Statistic Reports, the Incident Browser, H&S Statistical information and the Personnel System.
DATA PRESENTATION
The data has been represented in the form of a data table. Some data tables have the percentage increase or decrease on the Brigade’s actual figures and relate to the previous year.
Most data tables also show the average reductions since 2001/02 (15 years), 2006/07 (10 years) and 2011/12 (5 years). Also included is Cleveland's national position in the latest National League tables (2015/16) and the quartile position of that indicator. Cleveland's family group positions and OH Group positions are included for the latest period possible data (2015/16) where available.
Note that in the Brigade area the number of properties (dwellings)* has increased to 249,221, the number of non-domestic properties* has increased to 16,460 and the population* has increased to 562,080. These changes have been included in the formulas for calculating the per population and per dwelling outturn and tragets .
* Source - ONS Mid Year Est 2015 Source CT Base (CLG) 2016 Chargeable Dwellings
DATA QUALITY STATEMENT
We are satisfied that any information and assessments included in this report are in all respects accurate and complete. No significant and material data quality issues have been identified during the preparation of this report by the Risk and Performance unit nor have any been brought to the unit’s attention. If any issues on data quality are identified then they are highlighted in the body of the report with appropriate health warnings within the body of the report.
Whilst Risk and Performance have not validated every item of information within the report we are confident, from our knowledge of relevant systems and processes that all information produced is done so in accordance with approved statutory and local guidance. No issues on data quality have been identified in any external assessment conducted on the Brigades services. In addition the internal audit annual assurance statement has not identified any issues with our current systems and processes of internal control, or any information that is subsequently provided.
Our commitment to such high quality data is driven by our Data Quality Policy and Strategy supported by a robust delivery plan to ensure continued improvements in the data quality arrangements. This quality assurance framework underpins the Brigade’s Integrated Strategic, Business and Financial Planning Cycle.
2 Official
Our embedded approach to the principles of accurate data collection, collation, recording, analysis and reporting of information across the organisation, to partners and the public, assist in increasing levels of confidence in the quality of information produced. In all cases, whatever the source of information, the most up to date publicly available information is used within our reports. Information and data sharing agreements and protocols have been formally established where data is shared between partners.
We continually work to further improve the quality of our data through internal reviews of systems, processes and procedures on the collection and validation of information. Staff understanding and adherence to appropriate data quality standards will be continually monitored to ensure current high standards are maintained and are not the sole responsibility of the Risk and Performance unit.
3 Official
2. TWO PRONGED APPROACH/PROCESS i. Where National/Family Group / OH Group comparison data is available
The target reduction is appied to the latest years outturn and is calculated by analysing the National, OH and Family Group league tables to identify the average reductions for each indicator. Depending on CFA's position in the league tables the following weighting system is also applied.
0 - 1000 incidents 1000+ incidents CFA Position % Reduction CFA Position % Reduction 1st Quartile 0.1 1st Quartile 1 2nd Quartile 0.2 2nd Quartile 2 3rd Quartile 0.3 3rd Quartile 3 4th Quartile 0.4 4th Quartile 4
For example: In 2015/16 we had 131 Accidental Dwelling Fires (5.5 ADFs per 10,000 dwellings) 5.50 The national average reduction was 0.80 ADFs per 10,000 dwellings less 0.80 We had less than 1,000 incidents and were in the 1st Quartile less 0.10 This gives a proposed target of 4.6 ADF's per 10,000 dwellings, which equates to 113 fires 4.60
A trendline has also been calculated based on the performance of each indicator since 2010/11 (any data before this period may skew the trendline). Any indicator where the target is below the trendline and appears to be unachievable the target has been adjusted accordingly. Each indicator has a recommendation that ELT can adopt or adjust accordingly.
Any composite indicators are excluded from these as all reductions are made in the individual indicators (NI 33 - Deliberate Fires, LPI 2 - Primary Fires, LPI 3 - Total Fire Calls). ii. Where No National/Family Group comparison data is available
A trendline has been calculated based on the performance since 2010/11 (any data before this period may skew the trendline). As there is no comparitive data available it is recommended that the target be set following the current trendline. Each indicator has a recommendation that ELT can adopt or adjust accordingly.
4 Official
Station Targets are calculated using performance information from each station. Stations with higher numbers of incidents will be required to achieve a higher percentage reduction.
Each performance indicator was broken down into station areas and a weighting system was applied depending upon the number of incidents.
Red – Highest levels of activity/incidents Amber – High levels of activity/incidents Blue – Low levels of activity/incidents. Green – Lowest levels of activity/incidents.
Depending on the colour weighting system a Stations % target is adjusted in line with below:
Red – 2% above proposed target Amber – 1% above proposed target Blue – 1% below proposed target Green – 2% below proposed target
5 Official
3. SUMMARY OF PROPOSED REDUCTIONS ABFGH
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual)
Accidental Dwelling Fire Fatalities 0 0 0 --
Minimum Harm to People from Fire in the Deliberate Dwelling Fire Fatalities 0 0 0 -- Home
Improve Home Accidental Dwelling Fire Injuries 7 8 7 0.0 0.00 Safety
Accidental Dwelling Fires 130 137 130 -5.1 0.00 Minimum Loss as a Result of Fire in the Home Deliberate Dwelling Fires 43 61 50 -19.7 16.28
Improve Business Minimum Loss to Business as a Result of Fire Industrial/Commercial Fires 64 54 52 18.5 -18.75 Safety and other Emergencies
People Killed in Road Traffic Collisions
Improve Road Minimum Harm to People as a result of Road People Seriously Injured in Road Traffic Collisions Police data. Recommend no target Safety Traffic Collisions
People Suffering Slight Injuries in Road Traffic Collisions
Primary Fire Fatalities 0 1 0 -100.0 - Minimum Harm to People from Fire in Neighbourhoods Primary Fire Injuries 18 14 10 7.1 -44.44 Safer Communities
Accidental Fires 812 762 735 1.6 -9.48 Minimum Loss as a Result of Fire in Neighbourhoods Deliberate Fires 2775 2704 2692 -0.6 -2.99
Anti Social Behaviour Incidents
Road Traffic Collisions attended Improve
Summary 6 Official
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual) Improve Neighbourhood Spills and Leaks (not RTC) Safety Recommend no target Flooding Incidents
Minimum Loss as a Result of Other Risks in Effecting Entry/Exit Neighbourhoods
Other Rescue/Release of Persons
Malicious Calls 125 128 112 -0.8 -10.40
Percentage of FAM Attended 42 66 59 -10.6 40.48
Automatic Fire Alarms in Non Domestic Properties 796 885 796 -4.3 0.00
Suppport National Established Effective Arrangements to Support Safer Communities NRAT Assessment Assured Assured - Assured - - Resilience National Resilience
Achieve Strategic Outcomes Percentage of Green Rated Strategic Outcomes 100% 38% 100% - 0.00
Achieve Annual Priorities Percentage of Green Rated Annual Priorities 100% 64% 100% - 0.00
1st pump in 5 minutes to High Risk Wards 75% 86% 75% -12.8 0.00
2nd pump in 8 minutes to High Risk Wards 75% 100% 75% -25.0 0.00
3rd pump in 10 minutes to High Risk Wards 75% 100% 75% -25.0 0.00
1st pump in 8 minutes to Medium Risk Wards 75% 98% 75% -23.5 0.00
2nd pump in 11 minutes to Medium Risk Wards 75% 95% 75% -21.1 0.00
1st pump in 10 minutes to Low Risk Wards 75% 97% 75% -22.7 0.00
Summary 7 Official
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual)
Key Service Standards 2nd pump in 13 minutes to Low Risk Wards 75% 96% 75% -21.9 0.00
Staged Response 3, 5, 10 pumps - 4 - 0.0 -
Be high performing, Organisational continually improving 1st pump in 8 minutes to RTC's 75% 85% 75% -11.8 0.00 Excellence and efficient Percentage of calls handled under two minutes by 98% 92% 98% 6.5 0.00 Control
Percentage of Wholetime appliances not meeting 0% 1% 0% -- "Book mobile" threshold of 2 minutes
Percentage of Retained appliances not meeting 0% 20% 0% - - "Book mobile" threshold of 5 minutes
Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Community Risk Management
Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Prevention Operational Assurance Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Protection
Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Response
Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Health and Safety
Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Advanced - Advanced - - Training and Development Operational Assurance
Summary 8 Official
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual) Operational Assurance Peer Assessment Evaluation of Operational Assessment and Fire Peer Challenge Toolkit for Call Advanced - Advanced - - Management and Incident Support
NRAT Assessment Assured Achieved - Achieved - -
No Weaknesses identified in Annual internal audit Achieved Zero Achieved - - judgement in internal control system
Category 1 recommendations in internal audit Zero Zero Zero - - inspections
Assessment against Equality Framework Positive - Positive - -
RIPA Positive - Positive - -
Business Continuity - - -- -
CIPFA Leadership and Management 4 5 4 - 0.00
CIPFA Policy and Strategy 4 5 4 - 0.00 Good Corporate Governance
Be high performing, Organisational continually improving CIPFA People 4 4 4 - 0.00 Excellence and efficient
CIPFA Partnership and Resources 4 5 4 - 0.00
CIPFA Processes 4 5 4 - 0.00
CIPFA Risk Handling and Assurance 4 4 4 - 0.00
CIPFA Outcomes and Delivery 4 5 4 - 0.00
Summary 9 Official
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual)
Public Contracts Regulations 2015: Percentage of 95% 97% 95% 0.00 Invoices paid within 30 days
Public Contracts Regulations 2015:Interest paid due £0 £0 £0 - #DIV/0! to late payment of invoices
Value for Money and Financial Resilience External Auditor’s Judgement Positive Positive Positive --
Value for Money and Financial Resilience Level of Efficiencies £1.125m £1.125M - --
Value for Money and Financial Resilience Cost of Fire on Teesside Economy - £21 - --
Best in Class Percentage of Corporate Targets achieved 100% 61% 100% - 0.00
Percentage of Corporate Performance Indicators Best in Class 100% 46% 100% - 0.00 achieved Improvement
Percentage of indicators were we have improved Best in Class quartile position or remain in top quartile against 100% 31% 100% - 0.00 other FRS’s in our Family Group
Minimum Emergency Response High Risk Wards Percentage of Wards categorised as High Risk 0% 1% 0% - #DIV/0!
Percentage of people satisfied with the way the Customer Care 100% 100% 100% - 0.00 Be high performing, Brigade dealt with a complaint continually improving and efficient Percentage of people satisfied with the service they Customer Care 100% 96% 100% - 0.00 received
Accidents: Injury 18 3 8 - -55.56
Accidents: Damage 1 6 2 - 100.00
Near Misses 14 19 16 -26.3 14.29
A Safe Working Environment Cause for Concerns - 39 - -5.1 -
Summary 10 Official
Adjusted Target % Recommended % Change from Goal Aim Outcome Indicator 2016/17 TARGET 2016/17 ACTUAL reduction (from Target 2016/17 Target 2016/17 Actual)
RIDDOR Reportable Accidents 0 1 0 -100.0 -
Vehicle Incident Reports 30 41 40 12.2 33.33
Violence to Staff Incidents 27 31 27 -19.4 0.00
All Staff Sickness 5.56 8.49 3.87 -54.4 -30.40 Organisational Excellence Wholetime Staff Sickness 5.55 7.47 3.86 -48.3 -30.45 Provide a Professional Workforce Retained Staff Sickness 4.59 7.31 3.2 -56.2 -30.28
A Healthy and Vibrant Workforce Control Room Staff Sickness 3.53 10.05 2.46 -75.5 -30.31
Green Book Staff Sickness 7.05 12.49 4.91 -60.7 -30.35
Ill Health Retirements Grey Book Staff 0 1 0 - -
Ill Health Retirements Green Book Staff 0 0 0 - -
% operational personel deemed competent in risk Positive A Competent Workforce Positive change 83% - - critical areas (aligned to 'VOC' themes) change
Discipline Cases - 8 -- -
A Value Driven Workforce Number of Grievances - 1 -- -
Number of Complaints - 28 -- -
Achievement of Two Tick Symbol Yes No Yes - - Organisational Provide a Professional A Value Driven Workforce Excellence Workforce Achievement of Stonewall External Assessment Yes No Yes - -
Summary 11 AGENDA ITEM 6.1 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017
OUTTURN REPORT 2016/17
REPORT OF THE TREASURER
For
Information
1. PURPOSE OF REPORT
1.1 To inform Members of the outcomes of audit work covering the period April 2016 to March 2017.
1.2 This report provides accountability for Internal Audit Services and allows Members to monitor the application of the delegated authority for ensuring an effective and satisfactory audit provision.
2. RECOMMENDATIONS
2.1 That Members note the contents of the report.
3. OUTTURN ON 2016/17 INTERNAL AUDIT WORK PROGRAM
3.1 The Head of Audit and Governance’s overall assessment of the adequacy of controls operating within those financial systems arrangements reviewed as part of the 2016/17 internal audit plan are summarised below:
System / Establishment Overall assessment of controls Attendance Management Satisfactory Budgetary Control Satisfactory Cash/Bank Reconciliation Satisfactory Contract Audit Satisfactory Creditors Satisfactory Debtors Satisfactory Fraud Awareness Satisfactory Full Time Fire Stations Satisfactory Information Data Management Satisfactory National Fraud Initiative Satisfactory Officers Expenses Satisfactory Payroll Satisfactory Pensions Satisfactory Procurement Satisfactory Retained Fire fighter Claims Satisfactory VAT Satisfactory
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AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017 Date XXX 2011
All necessary improvements to systems or operating arrangements have been agreed at the conclusion of each piece of work, and are detailed in Appendix A.
3.2 Attached as Appendix B is a copy of the Head of Audit and Governance’s report to the Treasurer on the controls operating within Cleveland Fire Authority. In the opinion of the Head of Audit and Governance, key systems are operating soundly with corrective action taken where recommendations have been made, there is no fundamental breakdown in controls resulting in material discrepancy.
4. CONCLUSION
4.1 Overall, the systems reviewed annually by Internal Audit have provided consistently high assurance that they are fundamentally operating as intended. Where weaknesses have been identified corrective action has been taken without delay.
CHRIS LITTLE TREASURER
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APPENDIX A
1 IMPROVEMENTS TO SYSTEMS OR OPERATING ARRANGEMENTS AS AGREED ACTION PLAN.
System Reviewed Synopsis of Agreed Action
Attendance - The Annualised Hours Policy should be Management reviewed and agreed by ELT. - Annual reporting of annualised hours to ELT is undertaken as per the policy. - The Attendance Management procedures are reviewed, approved and communicated to relevant staff to ensure they are aware of their responsibilities. - Special Leave policy and a Family Friendly policy are subject to review and updated where necessary to reflect current procedures and these should be approved and communicated to all staff. - Relevant documentation is completed and obtained to support all elements of employee absence. - System access rights for ex employees should be disabled. Budgetary Control No recommendations made. Cash/Bank No recommendations made. Reconciliations Contract Audit No recommendations made. Creditors - Integra Support Team are engaged to write a report which will identify any transactions that have been completed by one member of staff on the purchase ledger, that this report is run at agreed intervals (e.g. monthly), and sent to the Director of Corporate Services or the Treasurer for review. Debtors No recommendations made. Fraud Awareness No recommendations made. Full Time Fire -The auditor is provided with a copy of the Stations station's asset register maintained by Property Services to enable testing to be completed. Information Data - A full review of the procurement information Management made available should be undertaken to ensure that the requirements of the Transparency Code 2015 are achieved. National Fraud No recommendations made. Initiative Officers Expenses No recommendations made. Payroll System No recommendations made. Pensions No recommendations made. OFFICIAL 3
Procurement No recommendations made. Retained Firefighter - All documentation submitted for payment should Claims be correctly authorised prior to processing. VAT - Regularly review the changes to VAT on sales invoices to ensure that they are correct.
2 PROBITY
In addition to systems control testing, audit activity also included a range of probity tests. The areas reviewed are detailed in the following paragraphs.
2.1 National Fraud Initiative
The National Fraud Initiative involves the matching of specific computer data between Local Authorities, Police and Fire Authorities, the Civil Service and NHS pension schemes and other agencies. The data submitted in respect of Cleveland Fire Authority comprises specific payroll data in respect of all uniformed and non- uniformed staff, together with specific data in respect of payments to Fire Authority pensioners. The outputs from the matching process are cases where there is an inconsistency between the information held on different databases and which requires subsequent investigation.
2.2 Payroll Probity
To ensure the integrity of payroll payments made to Fire Brigade employees, a series of tests were undertaken to ensure that:-
- Starters were correctly added to payroll records and leavers deleted, - Changes to standing payroll data were properly authorised, - Payments were made in accordance with terms of contract and correct salary scales, - Time sheets and claim driven payments were properly authorised and paid, - Deductions from salaries are supported by appropriately authorised documentation, - Output reports are produced, regularly examined and evidenced as such, - There is adequate budgetary control over payroll payments, - Control or suspense accounts relating to payroll operations are regularly reconciled and cleared.
2.3 Testing identified that the arrangements in place to administer payroll within Cleveland Fire Brigade have remained consistently well controlled through the period that Hartlepool Borough Council Internal Audit have been responsible for the audits.
2.4 Creditors Probity
To ensure the integrity of creditor payments made by the Fire Brigade, a series of tests were undertaken to ensure that:
- An up to date approved list of authorised signatories is held, - Written procedures for the processing of creditor payments exist, - Adequate procedures are in place for raising and authorising requisitions/ demand notes,
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- The system in place for raising and approving orders is satisfactory, - The delivery of goods/ services is recorded and verified, - Adequate procedures are in place for processing invoices/ payment documents, ensuring that arrangements are in place to minimise duplicate payments, - The procedures in place for raising and payment of cheque requisitions are satisfactory, - There is an adequate system in place for the payment of petty cash, - Adequate procedures are in place for the payment and recording of periodic payments, - There are procedures in place to control and record cheques returned to the Fire Brigade for distribution, - There is adequate budgetary control.
2.5 Testing identified that the arrangements in place to administer creditor payments within Cleveland Fire Brigade have remained consistently well controlled through the period that Hartlepool Borough Council Internal Audit have been responsible for the audits.
2.6 Pensions Probity
To evaluate the integrity of payments made for voluntary, compulsory or ill health retirements to ensure that:
- Retirement calculations are accurate and in accordance with relevant legislation, - New pensioner lump sum and pension payments are valid.
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APPENDIX B
Noel Adamson Tel: 01429 523173 Head of Audit and Governance www.hartlepool.gov.uk Civic Centre Contact Officer/Email: [email protected] Victoria Road Our Ref: NA/CFA/16/17 Hartlepool Your Ref: TS28 8AY
Date: 15/05/17
The Treasurer Cleveland Fire Authority Fire Brigade Headquarters Endeavour House Stockton Road Hartlepool
Dear Sir,
Internal Audit Outcomes for 2016/17
From the work undertaken during the year 2016/17, Internal Audit has reached the opinion that key systems are operating soundly and that there is no fundamental breakdown in controls resulting in material discrepancy. Satisfactory arrangements were implemented to ensure the effective, efficient and economic operation of Cleveland Fire Authority’s financial affairs.
No system of control can provide absolute assurance against material misstatement or loss, nor can Internal Audit give that assurance; this statement is intended to provide reasonable assurance.
These risks are reflected in the audit plan and are the subject of separate reports issued during the course of 2016/17.
Yours Faithfully,
N Adamson CPFA Head of Audit and Governance
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AGENDA ITEM 6.2 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
ROLE OF THE CHIEF FINANCE OFFICER (CFO) IN PUBLIC SERVICE ORGANISATIONS
REPORT OF THE TREASURER
For
Information
1. PURPOSE OF REPORT
1.1 To inform Members of the CIPFA statement – ‘The Role of the CFO in Public Service Organisations’, and how the Authority complies with this guidance.
2. RECOMMENDATION
2.1 That Members note that I have reviewed the CIPFA statement – ‘The Role of the CFO in Public Service Organisations’ and can advise Members that the CFA complies with these requirements as detailed in Appendix A.
3. BACKGROUND
3.1 The role of the CFO (designated as the Treasurer at this Authority) is a fundamental building block of good corporate governance and the Local Government Act 1972 (section 151) requires ‘every local authority shall make arrangements for the proper administration of their financial affairs and shall secure that one of their officers has responsibility for the administration of those affairs’. This statutory requirement is reinforced by the Local Government and Housing Act 1989 (section 6) which requires that the Section 151 officer is a qualified accountant and a member of an accountancy body approved by the Secretary of State.
3.2 The two critical aspects of the CFO’s role are stewardship and probity in the use of resources; and performance, extracting the most value from the use of those resources. The CFO, as the organisation’s most senior executive role charged with leading and directing financial strategy and operations, occupies a pivotal role, both for external stakeholders and within the Leadership Team. CFOs everywhere have a responsibility to ensure that their organisations control and manage money well, and that strategic planning and decision making are supported by sound analysis.
3.3 In the public service context, CFOs must also meet the demands of openness and accountability in decision making, balance competition for limited resources across a range of worthwhile objectives, deliver value for money and safeguard taxpayers’ money. Delivering these requires a range of personal qualities, as well as support from both the finance function and the organisation as a whole. It is these expectations, combined with the personal qualities and leadership skills needed for them to be met, that have shaped the CIPFA Statement on the Role of the CFO in Public Service Organisations (the statement).
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AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
3.4 The Statement sets out the five principles that define the core activities and behaviours that belong to the role of the CFO in public service organisations and the organisational arrangements needed to support them. Successful implementation of each of the principles requires the right ingredients in terms of:
The Organisation; The Role: and The Individual.
3.5 For each principle the Statement sets out the governance arrangements required within an organisation to ensure that CFOs are able to operate effectively and perform their core duties. The Statement also sets out the core responsibilities of the CFO role within the organisation. Many of the day-to-day responsibilities may in practice be delegated or in some authorities may even outsource, but the CFO should maintain oversight and control. Summaries of personal skills and professional standards then detail the leadership skills and technical expertise organisations can expect from their CFO. These include the key requirements of CIPFA and the other professional accountancy bodies’ codes of ethics and professional standards to which the CFO as a qualified professional is bound. The personal skills described have been aligned with the most appropriate principle, but in many cases can support other principles as well.
4. CIPFA STATEMENT ON THE ROLE OF THE CFO IN PUBLIC SERVICE ORGANISATIONS
4.1 The CFO in a public service organisation:
1. is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest; 2. must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s financial strategy; and 3. must lead the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively.
To deliver these responsibilities the CFO:
4. must lead and direct a finance function that is resourced to be fit for purpose; and 5. must be professionally qualified and suitably experienced.
4.2 Appendix A of the report details how the CFA ensures that the requirements of the statement are met.
CHRIS LITTLE TREASURER TO THE AUTHORITY
OFFICIAL - ROLE OF CHIEF FINANCE OFFICER 2
How the Five Principles Are Met
Principle 1 – The CFO is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest.
Governance CFA Arrangements Core CFO CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Set out a clear Constitution, Delegated Contributing to the CFO leads on all financial Role model, energetic, Actively engaged in the statement of the Powers, Job Descriptions effective leadership of matters and ensures the determined, positive, Management respective roles and in place and clearly define the organisation, Authority, the Executive robust and resilient Development responsibilities of the roles and responsibilities. maintaining focus on its Leadership Team and leadership, able to inspire Programme. Provides Leadership Team purpose and vision Directors own and confidence and respect, training regarding and its members through rigorous respond to the Medium and exemplify high financial issues to individually. analysis and challenge. Term Financial Strategy standards of conduct. members and staff. and supporting strategies, Mentors senior finance such as Community staff and has regular Integrated Risk Finance Management Management Plan. Team meetings and 1 to 1 meeting with senior finance staff. Ensure that the CFO CFO reports directly to Contributing to the See Above Adopt a flexible See Above. reports directly to the Chief Fire Officer as effective corporate leadership style, able to Chief Executive and necessary. Has regular 1 management of the move through visioning to is a member of the to 1 meetings with organisation, including implementation and Leadership Team Director of Corporate strategy implementation, collaboration/consultation with a status at least Resources. cross organisational to challenge as APPENDIX A equivalent to other issues, integrated appropriate. members. business and resource planning, risk management and performance management.
If different Not applicable - see Supporting the effective Responsible for the Build robust relationships See Above. Regular organisational Above governance of the provision an adequate both internally and meetings with Directors arrangements are organisation through and effective Internal externally. and other senior adopted, explain the development of Audit service. Key role in managers facilitate reasons publicly, – corporate governance formulating the Annual establishment of robust
3 OFFICIAL - ROLE OF THE CHIEF FINANCE OFFICER (CFO) IN PUBLIC SERVICE ORGANISATIONS
together with how arrangements, risk Governance Statement relationships. Active these deliver the management and and Code of Corporate member of Fire Finance same impact. reporting framework; Governance. Network. Regular liaison and with other Fire – corporate decision Authorities as making arrangements. appropriate. Regular meetings with external auditors. Determine a scheme Constitution and Scheme Leading or promoting Key role in Community Work effectively with other Regular contact with all of delegation and of Delegation in place. change programmes Integrated Risk Leadership Team members including reserve powers, within the organisation. Management Plan and members with political Chair, Vice Chair and including a formal Service Delivery Options. awareness and sensitivity. Chair of Audit and schedule of those Governance, regular matters specifically meetings with Chief Fire reserved for Officer and Directors. collective decisions by the Board, and ensure that it is monitored and updated. Ensure that Constitution and Scheme Leading development of Responsibility for Medium Support collective Represented on all organisation’s of Delegation in place as a medium term financial Term Financial Strategy ownership of strategy, relevant working groups. governance well as defined reporting strategy and the annual (MTFS) and budgetary risks and delivery. Key role in relation to arrangements allow arrangements. budgeting process to control processes/matters Annual Governance the CFO: ensure financial balance and ensuring Members, Statement. – to bring influence and a monitoring Directors and all staff to bear on all process to ensure its input to Medium Term material business delivery. Financial Strategy and decisions; and supporting strategies, – direct access to such as Community the Chief Executive, Integrated Risk other Leadership Management Plan. Team members, the Audit Committee and external audit. Review the scope of Reviewed role of Ensuring the medium Wide consultation Address and deal Ongoing review of skills the CFO’s other Treasurer and extended term financial strategy undertaken with all effectively with difficult and management management service level agreement reflects joint planning relevant stakeholders. situations. development where responsibilities to with Hartlepool Borough with partners and other necessary. ensure financial Council to provide this stakeholders. matters are not role from 1.4.14.
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compromised. Assess the financial Overarching Leadership Implement best practice in Ongoing development skills required by and Management change management and through mentoring. members of the Development role in leadership. Leadership Team relation to financial and commit to matters. develop those skills to enable their roles to be carried out effectively. Balance conflicting Responsibility for pressures and needs, Medium Term Financial including short and longer Strategy (MTFS) and term trade-offs. budgetary control processes. Demonstrate strong Supporting role in commitment to innovation Community Integrated and performance Risk Management Plan improvement. and Service Delivery Options. Manage a broad portfolio Responsible for full of services to meet the range of financial needs of diverse services aligned with communities. corporate priorities and needs through MTFS. Maintain an appropriate See Above. balance between the deeper financial aspects of the CFO role and the need to develop and retain a broader focus on the environment and stakeholder expectations and needs. Comply with the IFAC Professional standards Code of Ethics for integral to role. Professional Accountants, Commitment to as implemented by local Professional CPD and regulations and Management accountancy bodies, as development. well as other ethical
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standards that are applicable to them by reason of their professional status. The fundamental principles set out in the Code are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Impartiality is a further fundamental requirement of those operating in the public services. Principle 2 – The CFO must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s overall financial strategy.
Governance CFA Arrangements Core CFO CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Establish a medium MTFS in place, monitoring Responsibility for Responsibility for the Implement appropriate Responsibility for MTFS term business and arrangements and role of financial strategy: production, management, business and budgetary control financial planning Authority and Audit and Agreeing the financial implementation and and strategic planning processes. process to deliver Governance Committee framework with monitoring of the MTFS. techniques. the organisation’s enshrined in the sponsoring strategic objectives, Constitution. organisations and including: planning delivery – a medium term against the defined financial strategy to strategic and operational ensure sustainable criteria. finances; – a robust annual budget process that ensures financial balance; and – a monitoring process that enables this to be delivered.
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Ensure that The reporting of key Maintaining a long term See Above. Link financial strategy and MTFS linked to overall professional advice decisions is enshrined financial strategy to overall strategy. strategy as set out in on matters that have within the Constitution. underpin the IRMP and Annual financial implications organisation’s financial Business plans. is available and viability within the recorded well in agreed performance advance of decision framework. making and used appropriately. Ensure that those See Above Implementing financial Responsibility for the Demonstrate a willingness Key role in Community making decisions management policies to production, to take and stick to Integrated Risk are provided with underpin sustainable implementation and difficult decisions – even Management Plan and information that is fit long-term financial monitoring of Financial under pressure. Service Delivery for the purpose – health and reviewing Procedure Rules (FPRs) Options. relevant, timely and performance against and Standing Orders. giving clear them. explanations of financial issues and their implications. Appraising and advising Budget monitoring Take ownership of Key role in Annual on commercial process and Budget relevant financial and Governance Statement. opportunities and Strategy, key decision business risks. financial targets. advice. Developing and See Above Network effectively within Regular contact with maintaining an effective the organisation to ensure Chief Fire Officer, resource allocation awareness of all material Directors, other senior model to deliver business decisions to officers and members. business priorities. which CFO input may be necessary. Co-ordinating the See Above. Annual Role model persuasive See Above. Externally planning and budgeting budget timetable well and concise represent Authority on processes. established and enshrined communication with a financial issues as in constitution. wide range of audiences appropriate. internally and externally.
Influencing decision Budget Strategy and Provide clear, Addressed in MTFS and making: monitoring process, key authoritative and impartial associated presentation Ensuring that decision advice in relation professional advice and to Members, Directors opportunities and risks to financial and objective financial etc. are fully considered and governance matters. analysis and interpretation decisions are aligned of complex situations.
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with the overall financial strategy. Providing professional Key decision advice in Apply relevant statutory, See Above. advice and objective relation to financial and regulatory and financial analysis governance matters. professional standards enabling decision both personal and makers to take timely organisational. and informed business decisions. Ensuring that the Close working relationship Demonstrate a strong Keep abreast of current organisation’s capital with Executive Leadership desire to innovate and best practice to underpin projects are chosen Team on development of add value. development of cost after appropriate value capital programme. effective solutions. for money analysis and evaluation using relevant professional guidance. Checking, at an early Close working relationship Challenge effectively, and Ongoing development stage, that innovative with Members and give and receive through review financial approaches Executive Leadership constructive feedback. /mentoring. 1 to 1 comply with regulatory Team to ensure early meetings with Director requirements. involvement with of Corporate Resources innovative approaches to and key financial staff. services and financial arrangements to ensure compliance with regulatory requirement and proposals are based on robust business cases. Financial information Budget Strategy and Operate with sensitivity in Ongoing development for decision makers: monitoring process, key a political environment. through management Monitoring and reporting decision advice in relation development and peer on financial performance to financial and review/mentoring. that is linked to related governance matters. Regular contact with performance information Corporate Plan aligned members. and strategic objectives with financial PI’s. that identifies any necessary corrective decisions.
Preparing timely Final Accounts timetable.
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management accounts. Ensuring the reporting Effective and wide envelope reflects ranging consultation partnerships and other process in place. arrangements to give an overall picture. Principle 3 – The CFO must lead the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently, and effectively.
Governance CFA Arrangements Core CFO CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Make the CFO Delegated Powers, FPRs Promotion of financial Strategic direction Generate ‘buy-in’ to, and Achieved through responsible for and Standing Orders management: reflected in MTFS. support delivery of, good detailed involvement of ensuring that enshrined within Assessing the financial management Members and Executive appropriate advice is Constitution. organisation’s financial across the organisation. Leadership Team in given on all financial management style and development of financial matters, for keeping the improvements management strategy financial records and needed to ensure it and procedures for accounts, and for aligns with the ensuring good financial maintaining an organisation’s strategic management effective system of direction. arrangements are in financial control. place. Ensure that systems Delegated Powers, FPRs Actively promoting Allocation of financial Develop and sustain Partnership strategy and and processes for and Standing Orders financial literacy support to budget holders partnerships, and engage control and monitoring financial enshrined within throughout the promotes close working effectively in procedures in place to administration, Constitution. Scrutiny and organisation. relationship and ensures collaboration. ensure effective financial control and Audit and Governance financial management collaboration. protection of the Committees in line with arrangements are organisation’s legislative arrangements. effective. resources and assets are designed in conformity with appropriate ethical standards and monitor their continuing effectiveness in practice. Address the Delegated Powers, FPRs Value for money: Advisory role in terms of Deploy effective Member working groups
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organisation’s and Standing Orders Challenging and all key committee facilitation and meeting where appropriate. arrangements for enshrined within supporting decision decisions in respect of skills. financial and internal Constitution. Scrutiny and makers, especially on financial matters. control and for Audit Committees in line affordability and value managing risk in with legislative for money, by ensuring Annual Governance arrangements. Internal policy and operational Reports. Audit Section adequately proposals with financial resourced. implications are signed off by the finance function. Publish annual Delegated Powers and Developing and Close working relationship Build and demonstrate Key involvement in accounts on a timely Final Accounts process. maintaining appropriate with Executive Leadership commitment to continuous future service delivery basis to asset management and Team on development of improvement and changes, resource communicate the procurement strategies. capital programme. innovative, but risk-aware, allocation and trading organisation’s solutions. opportunities. activities and achievements, its financial position and performance. Maintain and Audit and Governance Managing long term Control arrangements in Place stewardship and Budget Strategy and resource an effective Committee remit and commercial contract place for obtaining value probity as the bedrock for monitoring process, key internal audit effective internal audit value. for money from long term management of the decision advice in function. assessment carried out contract arrangements, organisation’s finances. relation to financial and annually. involvement in contract governance matters. terms and conditions and Corporate Plan aligned monitoring. with financial PI’s. Review of System of Internal Audit. Develop and Audit and Governance Safeguarding public Direct line management maintain an effective Committee role and money: responsibility for all audit Audit Committee. responsibility enshrined in Applying strong internal matters. Constitution. Regular controls in all areas of training of Audit and financial management, Governance Committee. risk management and asset control. Ensure that the Delegated Powers Establishing budgets, Budget Strategy and organisation makes relating to Budget financial targets and Budget Management best use of Strategy and Budget performance indicators process aligned to resources and that Monitoring Process. to help assess delivery. corporate plan. taxpayers and/or service users
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receive value for money. Embed financial Corporate competencies Implementing effective Direct line management competencies in framework, job systems of internal responsibility for all audit person specifications descriptions and person control that include matters, FPR’s and and appraisals. specifications. standing financial Standing Orders. instructions, operating manuals, and compliance with codes of practice to secure probity. Assess the financial See Above Ensuring that delegated Performance review skills required by financial authorities are mechanisms PI’s, Direct managers and respected. line management commit to develop responsibility for all audit those skills to enable matters. their roles to be carried out effectively. Promoting Working relationship with arrangements to identify Director of Corporate and manage key Resources. business risks, including safeguarding assets, risk mitigation and insurance. Overseeing of capital Direct line management projects and post responsibility for capital completion reviews. accounting. Applying discipline in Direct line management financial management, responsibility for all audit including managing matters, FPR’s and cash and banking, Standing Orders. CFO treasury management, personally involved in debt and cash flow, with development and appropriate segregation implementation of of duties. Treasury Management strategy. Implementing Direct line management appropriate measures to responsibility for all audit prevent and detect fraud matters, FPR’s and
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and corruption. Standing Orders. Money Laundering Reporting Officer (MLRO) responsibilities. Establishing Involved in planning proportionate business arrangements for continuity arrangements Business Continuity. for financial processes and information. Ensuring that any Direct line management partnership responsibility for all audit arrangements are matters, FPR’s and underpinned by clear Standing Orders. and well documented internal controls. Assurance and Performance review scrutiny: mechanisms PI’s, Direct Reporting performance line management of both the organisation responsibility for all audit and its partnerships to matters. the board and other parties as required. Supporting and advising Regular attendance the Audit Committee enshrined in job and relevant scrutiny specification. groups. Preparing published Responsibility for the budgets, annual production, accounts and implementation and consolidation data for monitoring of the MTFS government-level and for preparing consolidated accounts. accounts and consolidated government returns. Liaising with the external Direct line management auditor. responsibility for all audit matters. Regular meeting with external auditor.
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Principle 4 – The CFO must lead and direct a finance function that is resourced to be fit for purpose.
Governance CFA Arrangements Core CFO CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Provide the finance Delegated Powers, FPRs Leading and directing Direct line management Create, communicate and Responsibility for the function with the and Standing Orders the finance function so responsibility for all implement a vision for the production, resources, expertise enshrined within that it makes a full corporate financial finance function. implementation and and systems Constitution. contribution to and matters. monitoring of the MTFS. necessary to meets the needs of the Regular 1 to 1 with perform its role business. senior finance officers. effectively. Ensure there is a Structural makeup Determining the Delegated powers Role model a customer Leads by example in line of professional enshrined in Delegated resources, expertise and regarding all financial and focussed culture within approach with Directors accountability to the Powers. FPRs and systems for the finance governance matters. the finance function. and other senior CFO for finance staff Standing Orders function that are managers that finance throughout the enshrined within sufficient to meet function role is to help organisation. Constitution. business needs and achieve organisations negotiating these within objectives, whilst the overall financial ensuring compliance framework. with best practice and legislative requirements. Implementing robust See Above. Recruitment Establish an open culture, Regular 1 to 1 meetings processes for follows corporate built on effective coaching with senior finance staff. recruitment of finance proceeds and based on and a “no blame” Open door policy for all staff and/or outsourcing job descriptions and approach. staff. CFO accepts of functions. person specification. responsibility for actions of all team members and encourages staff to use learn from experiences in a ‘no blame’ environment. Reviewing the Corporate Plan reviewed Promote effective Finance Management performance of the and monitored. 1 to 1 communication within the Team meetings for finance function and meetings with senior finance department, internal communication. ensuring that the finance manager and across the broader All finance staff briefing services provided are in regular performance organisation and with as and when line with the appraisals. external stakeholders. appropriate. expectations and needs Presentations to of its stakeholders. external groups as
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appropriate. Seeking continuous Departmental plans Apply strong project Set times scales, clear improvement in the constantly monitored. planning and process guidelines, review finance function. management skills. gateways and monitor performance for future improvement. Identifying and 1 to 1 meetings with Set and monitor Corporate appraisal equipping finance staff, finance managers. Full meaningful performance system in place. Regular managers and the engagement of ELT as objectives for the finance 1-2-1’s Leadership Team with appropriate in team. the financial development of financial competencies and strategies. expertise needed to manage the business both currently and in the future. Ensuring that the Head Delegated Section 151 Role model effective staff Mentor key finance staff of Profession role for all responsibilities enshrined performance across the finance staff in the in Constitution. All management. Division/regular 1-2-1’s. organisation is properly finance staff report Encourage CPD discharged. directly to CFO. involvement. Acting as the final See Above Coach and support staff in As above. arbiter on application of both technical and professional standards. personal development. Promote high standards As above. of ethical behaviour, probity, integrity and honesty. Ensure, when necessary, Actively seek that outside expertise is professional expertise called upon for specialist where needed i.e. advice not available within Treasury management, the finance function. complex taxation issues etc. Promote discussion on Mentor key finance staff current financial and across the professional issues and Division/regular 1-2-1’s. their implications. Encourage CPD involvement.
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Principle 5 – The CFO in a public service organisation must be professionally qualified and suitably experienced.
Governance CFA Arrangements Core CFO CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Appoint a Constitution and Be a member of an CFO is member of professionally delegated powers in accountancy body CIPFA and meets CPD qualified CFO whose operation. Job recognised by the requirements. core responsibilities description and person International Federation of include those set out specification for CFO. Accountants (IFAC), under the other qualified through principles in this examination, and subject Statement and to oversight by a ensure that these professional body that are properly upholds professional understood standards and exercises throughout the disciplinary powers. organisation. Ensure that the CFO See Above. Adhere to international As above. has the skills, standards set by IFAC on: knowledge, – ethics experience and – Continuing Professional resources to perform Development. effectively in both the financial and non-financial areas of their role. Demonstrate IT literacy. CFO has required IT skills for role and is able to manage and challenge the departmental IT experts to ensure they are able to effectively discharge their responsibilities. Have relevant prior CFO qualified with experience of financial CIPFA in 1993 and has management in the public held a variety of position services or private sector. with Hartlepool BC, before appointment as
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CFO to Hartlepool Borough Council in 2010 and Cleveland Fire Authority Treasurer in April 2014. Understand public service CFO has 24 years’ post finance and its regulatory qualification experience environment. and sound understanding of public service finance and its regulatory environment. Apply the principles of See above corporate finance, economics, risk management and accounting. Understand personal and CFO has a clear professional strengths. understanding of these issues and is committed to continuous improvements. These issues addressed through performance appraisal. Undertake appropriate CFO role has been development or obtain refocused on core relevant experience in financial responsibilities order to meet the to ensure financial requirements of the non- challenges faces the financial areas of the role. CFA can be managed. CFO has clear understanding of no- financial areas affecting his role.
OFFICIAL – ROLE OF THE CHIEF FINANCE OFFICER IN PUBLIC SERVICE ORGANISATIONS – APPENDIX A 16 AGENDA ITEM 6.3 AUDIT AND GOVERNANCE COMMITTEE 19 MAY 2017
ROLE OF THE HEAD OF INTERNAL AUDIT IN LOCAL GOVERNMENT
REPORT OF THE TREASURER
For Information
1. PURPOSE OF REPORT
1.1 To inform Members of the CIPFA statement – “The Role of the Head of Internal Audit in Local Government”, and to demonstrate how the CFA complies with this guidance. Although the guidance specifically mentions Local Government the principles detailed apply to the CFA and therefore it is considered best practice to outline our compliance.
2. RECOMMENDATION
2.1 That Members note that I have reviewed the CIPFA statement – “The Role of the Head of Internal Audit in Local Government” and can advise Members that the CFA complies with these requirements as detailed in Appendix A.
3. BACKGROUND
3.1 The Statement describes the role of the Head of Internal Audit (HIA) in local government. CIPFA believes the HIA occupies a critical position in a local authority, helping it to achieve its objectives by giving assurance on its internal control arrangements and playing a key role in promoting good corporate governance. Local authorities need to know that they have strong arrangements for controlling their resources and for delivering their objectives. CIPFA believes that HIA’s have a unique role to play here. They are senior managers whose business is objectively assessing these arrangements and the risks that authorities face and giving appropriate assurances. HIA's must also provide leadership, promoting good governance and helping authorities to address future challenges.
3.2 HIA’s need to review the whole system of control, both financial and non-financial, and focus on the areas where assurance is most needed. The HIA also has to give an annual opinion on the adequacy and effectiveness of the control environment; this is used by Chief Fire Officer as a primary source of evidence for the Annual Governance Statement.
3.3 HIA’s must also be able to show that they can meet the needs of stakeholders such as Chief Fire Officers and Audit Committees, adding value by helping to improve services whilst retaining their objectivity. They also need to work well with partners and other auditors.
Authorities should see the Statement as best practice and use it to assess their HIA arrangements to drive up audit quality and governance arrangements.
OFFICIAL 1 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
4. THE KEY ROLE PLAYED BY THE HIA
4.1 Internal audit is one of the cornerstones of effective governance. The HIA is responsible for reviewing and reporting on the adequacy of the authority’s control environment, including the arrangements for achieving value for money. Through the annual internal audit opinion and other reports the HIA gives assurance to the Leadership Team and others, and makes recommendations for improvement.
4.2 The HIA’s role is a unique one, providing objective challenge and support and acting as a catalyst for positive change and continual improvement in governance in all its aspects. The role is particularly important when authorities are facing uncertain or challenging times. Fulfilling the role requires a range of personal qualities. The HIA has to win the support and trust of others, so that he/she is listened to, and the HIA’s role as a critical friend means that sometimes difficult messages must be given and acted on. It is these expectations, combined with the professional, personal and leadership skills required, that have shaped the CIPFA Statement on the role of the HIA in Local Government.
4.3 Primary audience The primary audience for this Statement is those who rely on the HIA’s assurances – the Leadership Team and the Audit Committee. CIPFA recommends that they should examine their own authority against this Statement to satisfy themselves that they have effective HIA arrangements in place.
4.4 Local government context CIPFA has drawn up a separate Statement for local government because of the statutory responsibility of specific post holders regarding internal audit and governance. In local government the ‘Section 151’ officer (the Chief Financial Officer or Treasurer) is a statutory post as is the Monitoring Officer (often the Head of Legal Services) and the Head of Paid Service (often the Chief Executive). The HIA needs to work well with these post holders and lines of responsibility need to be clear.
4.5 The Statement sets out the five principles that define the core activities and behaviours that belong to the role of the HIA in local government and the organisational arrangements needed to support them. Successful implementation of each of the principles requires the right ingredients in terms of:
the organisation; the role; and the individual.
For each principle the Statement sets out the governance arrangements required within an authority to ensure that HIAs are able to operate effectively and perform their core duties. The Statement also sets out the core responsibilities of the HIA. Summaries of personal skills and professional standards then detail the leadership skills and technical expertise authorities can expect from their HIA. These include the requirements of CIPFA and the other professional bodies’ codes of ethics and professional standards to which the HIA as a qualified professional is bound. The personal skills described have been aligned with the most appropriate principle, but in many cases support other principles as well.
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4.6 Demonstrating compliance The Statement supports CIPFA’s work to strengthen governance, risk management and internal audit across public services. It is intended to allow the Leadership Team of a local authority to benchmark its existing arrangements against a defined framework.
4.7 CIPFA recommends that authorities use the Statement as the framework to assess their existing arrangements and that they should report publically on compliance to demonstrate their commitment to good practice. CIPFA also proposes that authorities should report publicly where their arrangements do not conform to the compliance framework in this Statement, explaining the reasons for this, and how they achieve the same impact. CIPFA will consider how to take this forward in the context of the CIPFA/Society of Local Authority Chief Executives (SOLACE) guidance on good governance.
5. CIPFA STATEMENT ON THE ROLE OF THE HIA IN LOCAL GOVERNMENT
The Head of Internal Audit in a local authority plays a critical role in delivering the authority’s strategic objectives by:
1. championing best practice in governance, objectively assessing the adequacy of governance and management of existing risks, commenting on responses to emerging risks and proposed developments; and 2. giving an objective and evidence based opinion on all aspects of governance, risk management and internal control.
To perform this role the Head of Internal Audit:
3. must be a senior manager with regular and open engagement across the authority, particularly with the Leadership Team and with the Audit Committee; 4. must lead and direct an internal audit service that is resourced to be fit for purpose; and 5. must be professionally qualified and suitably experienced.
6. PROCESS FOLLOWED
6.1 The review is undertaken annually in line with best practice requirements. Appendix A of the report details how the Authority ensures that the requirements of the statement are met. Details of the requirements of the statement are outlined along with how the arrangements in place at the council satisfy those requirements.
CHRIS LITTLE TREASURER TO THE AUTHORITY
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How the Five Principles Are Met
Principle 1 – The HIA in a local authority plays a critical role in delivering the authority’s strategic objectives by championing best practice in governance, objectively assessing the adequacy of governance and management of existing risks, commenting on responses to emerging risks and proposed developments.
Governance CFA Core HIA CFA Arrangements Personal skills and CFA requirements Arrangements responsibilities professional Arrangements standards Set out the HIA’s role Role of HIA enshrined Working with others Relationships with key Provide leadership by HIA undertakes in good governance in the Constitution and (including the CFO, the officers detailed in agreed giving practical examples proactive role on and how this fits with reflected in the Audit Monitoring Officer and the protocols i.e. Relationship of good governance that various regional groups the role of others, in Manual. Head of Paid Service) to between CFO and IA. will inspire others. and relevant working particular the CFO, the promote the benefits of parties and officer Monitoring Officer and good governance groups. the Head of Paid throughout the Service. organisation.
Ensure that the Job descriptions and Giving advice to the Regularly report to Audit Deploy effective HIA undergoes importance of good Management Leadership Team and and Governance facilitating and Continuous governance is stressed Development training others on the control Committee and Senior negotiating skills. Professional to all in the authority, programme cover arrangements and risks Management through Development (CPD) through policies, governance relating to proposed CFO on all aspects of tailored to requirements procedures and requirements policies, programmes and governance of the role i.e. CIPFA training. projects. arrangements. Certificate in
Investigatory Practices, APPENDIX A Management Academy. Ensure that the HIA is Protocols in place to Promoting the highest HIA role as per Public Build and demonstrate As above consulted on all ensure regular liaison standards of ethics and Sector Audit Standards commitment to proposed major with key officers. standards across the as enshrined in the Audit continuous improvement. projects, programmes authority based on the Manual. and policy initiatives. principles of integrity,
objectivity, competence
and confidentiality. Require staff to report Corporate Anti-Fraud Demonstrating the HIA undertakes proactive Demonstrate consultancy As above suspected or detected and Corruption benefits of good role on relevant working skills as appropriate – OFFICIAL - ROLE OF THE HEAD OF INTERNAL AUDIT IN LOCAL GOVERNMENT 4
Governance CFA Core HIA CFA Arrangements Personal skills and CFA requirements Arrangements responsibilities professional Arrangements standards fraud, corruption or Strategy agreed by governance for effective parties and officer analytical, problem impropriety to the HIA. Audit and Governance public service delivery groups. solving, influencing and Committee and how the HIA can communicating. help. Offering consultancy Resource built into Audit advice where the HIA Plan for advice and considers that it is guidance to be provided, appropriate, drawing up within strictly agreed clear terms of reference scope, terms of reference for such assignments. and outcomes.
Principle 2 – The HIA in a local authority plays a critical role in delivering the authority’s strategic objectives by giving an objective and evidence based opinion on all aspects of governance, risk management and internal control.
Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Set out the Job Description in place. Giving assurance on the Annual opinion provided Give clear, professional Reporting arrangements responsibilities of the control environment. to Audit and Governance and objective advice. agreed with HIA, which should This includes risk and Committee in line with management based on not include the information Code of Practice for a shared understanding management of management and Internal Audit in Local of requirements. operational areas internal controls across Government, covering all all systems. aspects of governance arrangements. Ensure that internal Internal and External Reviewing the adequacy All aspects of governance Report on what is found, Reporting arrangements audit is independent Audit protocol in place. of key corporate arrangements covered in without fear or favour. enshrined within the of external audit. arrangements including the annual Internal Audit Audit Manual in line with e.g. risk strategy, risk Plan as agreed by best practice. register, anti fraud and management and the corruption strategy, Audit and Governance corporate plan. Committee. Where the HIA does Not Applicable. Producing evidence Annual opinion report HIA Demonstrate integrity to HIA undergoes CPD have operational based annual internal is produced and staff and others in the tailored to requirements responsibilities the audit opinion on the presented to the Audit authority. of the role i.e. CIPFA
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards HIA’s line manager authority’s control and Governance Certificate in and the Audit environment. Committee by the HIA. Investigatory Practices, Committee should Management Academy. specifically approve the IA strategy for these and associated plans and reports and ensure the work is independently managed. Establish clear lines Role of HIA enshrined in Working closely with Reporting arrangements Exercise sound judgement Experience gained over of responsibility for the Constitution and others to ensure that compliant with Code of in identifying weaknesses 24 year Internal Audit those with an reflected in the Audit sufficient and relevant Practice for Internal Audit in the authority’s control career. Professional interest in Manual. evidence is used. Where in Local Government. environment and a guidance followed in governance (e.g. relying on others, balanced view on how relation to risk Head of Paid clarifying the degree and significant these are. measurement. Service, Monitoring basis for the reliance. Officer, Head of Paid Service, Audit Committee, Members). This covers responsibilities for drawing up and reviewing key corporate strategies, statements and policies. Establish clear lines Role of HIA enshrined in Reviewing significant Internal Audit plan Work well with others with Relationships with key of reporting to the the Constitution and partnership encompasses partnership specific responsibilities for officers built up over a Leadership Team reflected in the Audit arrangements and major arrangements and internal control, risk number of years. and to the Audit Manual. Rights of access services provided by highlighted as key area of management and Committee where to key members and third parties and the concern of Audit and governance including the the HIA has officers detailed. controls in place to Governance Committee. Head of Paid Service, the significant concerns. promote and protect the Monitoring Officer, the
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards authority’s interests. CFO, Audit Committee and Assessing whether lines Members. of responsibility and assurance are clear. Agree the terms of Role of HIA enshrined in Liaising closely with the Protocol in place for joint Be concerned for action - As above reference for internal the Constitution and external auditor to share working with External influencing the Leadership audit with the HIA, reflected in the Audit knowledge and to use Audit. Team, Audit Committee the Audit Committee Manual. audit resources most and others to ensure that and the CFO, as well effectively. the HIA’s as with the recommendations are Leadership Team. implemented. Set out the basis on Audit Manual sets out Producing an internal Strategy produced Be a role model, dynamic, Experience gained over which the HIA can roles and levels of audit strategy that fits supporting CFA determined, positive, 24 year Internal Audit give assurances to assurances. with and supports the objectives. robust and with resilient career. HIA CPD other organisations authority’s objectives. leadership, able to inspire tailored to requirements and the basis on confidence and respect of the role. which the HIA can and exemplify high place reliance on standards of conduct. assurances from others. Ensure that Production of Annual Reviewing the Covered as part of annual comprehensive Governance Statement in authority’s risk maturity planning process and governance line with best practice (including the authority’s consider in the context of arrangements are in covering all aspects of the own assessment) and corporate risk. place, with governance framework reflecting this in the supporting and supporting strategy. documents covering documentation in place. e.g. risk management, corporate planning, anti fraud and corruption and whistle blowing. Ensure that the Report by the HIA to the Consulting stakeholders, Internal Audit Strategy annual internal audit Audit and Governance including senior agreed by senior opinion and report Committee. managers and Members management.
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards are issued in the on the internal audit name of the HIA. strategy. Include awareness Job descriptions and Setting out how the HIA Code of Practice for of governance in the Management plans to rely on others Internal Audit in Local competencies Development training for assurance on the Government detailing day required by programme cover authority’s controls and to day arrangements. members of the governance requirements risks and taking account Leadership Team. of any limitations in assurance given by others. Set out the Included in the Annual Liaising with external The process followed is framework of Governance Statement inspectors and review recorded in the Audit assurance that which is produced by agencies where Manual. supports the annual senior management. appropriate when governance drawing up the internal statement and audit strategy. identify internal audit’s role within it. The HIA should not be responsible for preparing the report. Ensure that the Internal Audit Strategy Liaising with the external Protocol in place for joint internal audit agreed by senior audit on the internal working with External strategy is approved management. audit strategy, but not Audit. by the Audit being driven by external Committee and audit’s own priorities. endorsed by the Leadership Team.
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Principle 3 – The HIA in a local authority must be a senior manager with regular and open engagement across the authority, particularly with the Leadership Team and with the Audit Committee.
Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Designate a named HIA designated individual Escalating any concerns Protocols in place and Network effectively to Relationships built up individual as HIA in employed By Hartlepool through the line enshrined in Internal Audit raise the profile and over a number of years line with the Borough Council. manager, CFO, Strategy for escalation of status of internal audit. backed up by regular principles in this Monitoring Officer, Head concerns. meetings, 1-2-1s with Statement. The of Paid Service, Audit key officers. individual could be Committee, Leadership someone from Team and external another organisation auditor as appropriate. where internal audit is contracted out or shared. Where this is the case then the roles of the HIA and the client manager must be clearly set out in the contract or agreement. Ensure that where HIA senior manager at Supporting the Audit Audit and Governance Adopt a flexible style, Experience gained over the HIA is an HBC liaising directly with Committee in reviewing Committee provided with being able to collaborate 24 year Internal Audit employee that they the CFO with access to its own effectiveness advice and guidance to and advise but also able career. HIA undergoes are sufficiently key officers as detailed in and advising the Chair enable it to fulfil its to challenge as CPD tailored to senior and the Internal Audit and line manager of any function. appropriate. requirements of the role. independent within Strategy. suggested Regular 1-2-1s with the authority’s improvements. CFO in order to support structure to allow development in all them to carry out areas. their role effectively and be able to provide credibly constructive challenge to the Management Team. Ensure that where HIA senior manager Consulting stakeholders, Internal Audit Strategy Deploy effective As above OFFICIAL - ROLE OF THE HEAD OF INTERNAL AUDIT IN LOCAL GOVERNMENT – APPENDIX A 9
Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards the HIA is an within the Finance including senior agreed by senior facilitation and meeting employee the HIA is function reporting directly managers and Members management. skills. line managed by a to the CFO. on the internal audit member of the strategy. Management Team. Where the HIA is not an employee then the reporting line must be clearly set out in the contract or agreement with the internal audit supplier. Establish an Audit Audit and Governance Build and demonstrate As above Committee in line Committee established in commitment to continuous with guidance and line with CIPFA improvement and good practice. guidelines. innovative, but risk-aware, solutions. Set out the Role of HIA enshrined in Place stewardship and Leads by example in HIA’s the Constitution as probity as the bedrock for approach with Directors relationship agreed by members and management of the and other senior with the Audit reflected in the Audit organisation’s finances. managers that Internal Committee and Manual. Audit function role is to its Chair. help achieve organisations objectives, whilst ensuring compliance with best practice and legislative requirements. Ensure that the Role of HIA enshrined in Build productive Relationships built up authority’s the Constitution as relationships both over a number of years governance agreed by members and internally and externally. backed up by regular arrangements allow reflected in the Audit meetings, 1-2-1s with the HIA: Manual. Rights of access key officers. influence to key members and to bear on material officers detailed.
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards decisions reflecting governance the Chief Executive, other Leadership Team members, the Audit Committee and external audit of the Leadership Team and Management Team where the HIA considers this to be appropriate. Set out unfettered CFA Constitution details Work effectively with the Experience gained over rights of access for access arrangements for Leadership Team and 24 year Internal Audit internal audit to all Internal Audit, reflected in Audit Committee with career. HIA undergoes papers and all the Audit Manual. political awareness and CPD tailored to people in the sensitivity. requirements of the role. organisation, as well Regular 1-2-1s with as appropriate CFO in order to support access in development in all (significant) partner areas. organisations. Set out the HIA’s Major ventures Be seen to be objective As above responsibilities undertaken detail rights of and independent but also relating to partners access to Internal Audit pragmatic where including joint for governance opinion appropriate. ventures and purposes. outsourced and shared services.
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Principle 4 – The HIA in a local authority must lead and direct an internal audit service that is resourced to be fit for purpose.
Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements Responsibilities professional standards Provide the HIA with Internal Audit Strategy Leading and directing Approval and consultation Demonstrate leadership HIA undergoes CPD the resources, details the resource the internal audit service process for the Internal and be an ambassador for tailored to requirements expertise and implications and so that it makes a full Audit plan ensures that it internal audit. of the role i.e. CIPFA systems necessary responsibilities for contribution to and adds value to the Certificate in to perform their role ensuring they are met. meets the needs of the organisation. HIA Investigatory Practices, effectively. authority and external responsible for facilitating Management Academy. stakeholders. this process. Ensure that the Audit Internal Audit report Determining the Internal Audit Strategy Create, communicate and HIA has a clear Committee sets out annually to the Audit and resources, expertise, details the resource implement a vision for the understanding of these a performance Governance Committee qualifications and implications and internal audit service. issues and is committed framework for the on a wide range of systems for the internal responsibilities for to continuous HIA and their team performance measures. audit service that are ensuring they are met. improvements. These and assesses required to meet issues addressed performance and internal audit’s through performance takes action as objectives; using a full appraisal. appropriate. range of resourcing options including consultancy, working with others and buying in where appropriate. Ensure that there is Five yearly independent Informing the CFO, the Internal Audit Strategy Create a customer HIA has a clear a regular external review carried out. Leadership Team and details the resource focused internal audit understanding of these review of internal Constant review by CFO Audit Committee if there implications and service issues and is committed audit quality. via performance are insufficient responsibilities for to continuous monitoring and appraisal resources to carry out a ensuring they are met and improvements. system. satisfactory level of reporting arrangements if internal audit, and the shortfalls are anticipated. consequence for the level of assurance that may be given. Ensure that where Not Applicable. Implementing robust Corporate recruitment Establish an open culture, HIA undergoes CPD the HIA is from processes for process followed for any built on effective coaching tailored to requirements another organisation recruitment of internal appointments made. and a constructive of the role. OFFICIAL - ROLE OF THE HEAD OF INTERNAL AUDIT IN LOCAL GOVERNMENT – APPENDIX A 12
Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements Responsibilities professional standards that they do not also audit staff and/or the approach. provide the external procurement of internal audit service. audit services from external suppliers. Ensuring that the Professional guidance Promote effective HIA has a clear professional and implemented in respect of communication within understanding of these personal training needs training needs and internal audit, across the issues and is committed for staff are assessed development issues are broader organisation and to continuous and seeing that these addressed. with external improvements. needs are met. stakeholders. Developing succession As above Set and monitor CIPFA “Excellent plans and helping staff meaningful performance Auditor Framework” with their career objectives for staff. implemented within progression. section for all training and development needs. Establishing a quality Public Sector Internal Manage and coach staff As above. assurance and Audit Standards in effectively improvement relation to continuous programme that improvement followed. includes: ensuring that professional internal audit standards are complied with; reviewing the performance of internal audit and ensuring that the service provided is in line with the expectations and needs of its stakeholders; providing an efficient and effective internal audit service – demonstrating this by agreeing key performance indicators
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements Responsibilities professional standards and targets with the line manager and Audit Committee; annually reporting achievements against targets; putting in place adequate ongoing monitoring and periodic review of internal audit work and supervision and review of files, to ensure that audit plans, work and reports are evidence based and of good quality; ensuring that any internal auditors declare any interests that they have; seeking continuous improvement in the internal audit service. Keeping up to date with Member of Better Comply with professional Professional standards developments in Governance Forum, standards and ethics and ethics outlined governance, risk Technical Information within Audit Manual and management, control Service, CIPFA NE IA also bound by Public and internal auditing, Group, North East Fraud Sector Internal Audit including networking Forum in order to ensure Standards. with other HIA’s and up to date with current learning from them, best practice and ideas. implementing improvements where appropriate. Demonstrating how Annual report to the Audit Require the highest As above as well as internal audit adds value and Governance standards of ethics and procedures for the to the authority. Committee. standards within internal identification and audit based on the recording of conflicts of
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Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements Responsibilities professional standards principles of integrity, interest are detailed in objectivity, competence the Audit Manual. and confidentiality. In particular, ensuring that internal auditors identify and report any conflicts of interest and act appropriately Ensure, when necessary, Arrangements in place that outside expertise is to ensure specialist called upon for specialist services can be advice not available within procured as and when the internal audit service. necessary. Promote discussion on HIA mentors audit staff, current governance and undertaking regular professional issues and team meetings to their implications. facilitate discussion. Role on various working groups ensures topics are discussed and disseminated.
Principle 5 – The HIA in a local authority must be professionally qualified and suitably experienced Governance CFA Arrangements Core HIA CFA Arrangements Personal skills and CFA Arrangements requirements responsibilities professional standards Appoint a Job description and Be a full member of an HIA qualified with CIPFA professionally recruitment process appropriate professional in 1997 and actively qualified HIA whose ensure only appropriately body and have an active participates in core responsibilities qualified and experienced programme for personal mandatory CPD scheme include those set out individuals considered. professional development. under the other principles in this
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Statement and ensure that these are properly understood throughout the organisation. Ensure that the HIA As above, monitoring and Adhere to professional HIA member of CIPFA has the skills, mentoring role undertaken internal auditing (and for 20 years and is knowledge, by CFO in his role as where appropriate bound by all relevant experience and Section 151 officer accounting and auditing) professional and resources to perform ensures compliance. standards. personal requirements. effectively in his or her role. Demonstrate a range of HIA undergoes CPD skills including tailored to requirements communicating, managing of the role as well as and influencing, as well as mentoring by CFO. an understanding of IT and consultancy. Have prior experience of HIA has held a variety of working in internal audit. position within Local Government, before appointment as HIA in 2008, including Group Auditor at HBC and Head of Audit at a district council. Understand and have HIA undergoes CPD experience of strategic tailored to requirements objective setting and of the role as well as management. mentoring by CFO. Understand the internal HIA has 20 years’ post audit and regulatory qualification experience environment applicable to and sound public service understanding of public organisations. service governance arrangements and its regulatory environment. Demonstrate a Regularly advises comprehensive management on these
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understanding of issues and is a key governance, risk member of the management and internal Performance and risk control. Management Group. Undertake appropriate HIA undergoes CPD development or obtain tailored to requirements relevant experience as of the role as well as appropriate in order to mentoring by CFO. demonstrate an understanding of the full range of the authority’s activities and processes.
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AGENDA ITEM 6.4 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
REVIEW OF THE AUTHORITY’S ANNUAL GOVERNANCE STATEMENT 2016/17
REPORT OF THE TREASURER
For Approval
1. PURPOSE OF REPORT
1.1 To provide details of the requirement on the Fire Authority under the Accounts and Audit Regulations (England) 2015 to publish an Annual Governance Statement (AGS) with the Financial Statements, and the action required by the CFA to meet its obligations within the scope of the Regulations.
1.2 To provide a copy of the 2016/17 Annual Governance Statement (AGS) for Members information and approval.
2. RECOMMENDATION
2.1 It is recommended that Members note the report and approve the 2016/17 Annual Governance Statement at Appendix 1 for inclusion in the Financial Statements.
3. BACKGROUND
3.1 The CFA has a statutory responsibility to ensure that its financial management is adequate and that there is a sound system of internal controls to facilitate the effective delivery of its functions, including arrangements for the management of risk. The Annual Governance Statement (AGS) is published with the CFA’s Financial Statements and summarises the results of the annual review of internal controls. The AGS’s primary function is to assess the adequacy of the CFA’s governance arrangements, identify where those arrangements need to be improved and communicate to users and stakeholders how those improvements can be made and that better governance leads to better quality public services.
3.2 At the CFA’s Audit and Governance Committee Meeting held on the 20 May 2016, the 2015/16 Annual Governance Statement was presented and accepted by Members.
4. INFORMATION
4.1 As Treasurer to the Fire Authority, I am responsible for conducting, annually, a review of the effectiveness of the Annual Governance Statement (AGS). Accordingly, a copy of the 2016/17 Annual Governance Statement is attached at Appendix 1. The Annual Governance Statement has been reviewed and all significant internal control issues identified and updated and will form part of the CFA’s 2016/17 Financial Statements.
OFFICIAL 1 AUDIT & GOVERNANCE COMMITTEE 19 MAY 2017
4.2 The progress made by Brigade Officers to implement the actions to improve governance arrangements which were identified for 2015/16 are outlined at Appendix 2.
4.3 Following the annual review, the 2016/17 AGS assessment duly took into account all recent internal and external assessments, inspections and audits, the outcomes of which have now been included.
4.4 No significant governance issues have been identified for 2016/17. However, in the interests of improving and developing governance arrangements a Governance Improvement Action Plan has been produced and included in the 2016/17 AGS. Progress will be monitored though the Authority’s Performance Monitoring and Management System, with progress reports, circulated during 2017/18, to Officers and Members, enabling scrutiny through the Audit & Governance Committee.
4.5 An Internal Audit Review of the Fire Authority’s Annual Governance Statement has been undertaken and a copy of the resulting report is attached at Appendix 3. The report states:
The existing processes and procedures in place continue to provide a high level of assurance that controls are operating as intended.
CHRIS LITTLE TREASURER TO THE AUTHORITY
OFFICIAL - REVIEW OF THE AUTHORITY’S ANNUAL GOVERNANCE STATEMENT 16-17 2 APPENDIX 1
CLEVELAND FIRE AUTHORITY ANNUAL GOVERNANCE STATEMENT 2016/2017
SCOPE OF RESPONSIBILITY
Cleveland Fire Authority is responsible for ensuring that:
its business is conducted in accordance with the law and proper standards, public money is safeguarded and properly accounted for, and used economically, efficiently and effectively.
Cleveland Fire Authority also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.
In discharging these overall responsibilities, Cleveland Fire Authority is also responsible for ensuring that there are proper arrangements for the governance of its affairs, a sound system of internal control which facilitates Cleveland Fire Authority exercising its functions and responsibilities effectively and which includes arrangements for the management of risk.
THE PURPOSE OF THE GOVERNANCE FRAMEWORK
The governance framework comprises of systems, processes, culture and values, by which the Authority directs and controls its activities through which it is accountable for and engages with the community. It enables the Authority to monitor the achievement of its strategic priorities and to consider whether those priorities have resulted in the delivery of appropriate, effective and cost-effective services.
The system of internal control is a significant part of the framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failing to achieve priorities and can therefore only provide reasonable and not absolute assurance of its effectiveness. The system of internal control is based on an ongoing process designed to identify, evaluate and prioritise the risks to the achievement of Cleveland Fire Authority’s priorities, to evaluate the likelihood of those risks occurring, the impact should they be realised, and thus manage them efficiently, effectively and economically.
The governance framework has been in place at Cleveland Fire Authority for the year ended 31st March 2017.
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THE INTERNAL CONTROL GOVERNANCE FRAMEWORK
The key elements of the Fire Authority’s policy, decision making and internal control governance framework are outlined in The Constitution which details the Authority’s Corporate and Ethical Governance arrangements and the Member Development Framework.
The staff handbook sets out internal control and managerial procedures and details standards of conduct and probity issues.
The Fire Authority has approved and adopted a ‘Local Code of Corporate Governance’ which encompasses the guidance and best practice as outlined in the ‘Delivering Good Governance in Local Government Framework (2016) that is published by CIPFA and SOLACE. The code draws strongly on the good practices already established and outlines the way in which the Authority will meet that commitment.
Corporate governance services are provided to the Fire Authority through a Service Level Agreement with Hartlepool Borough Council. Under this arrangement the separate roles of a Legal Advisor/Monitoring Officer and a Treasurer are currently provided by Hartlepool Borough Council. The Authority’s Monitoring Officer has the responsibility for ensuring that the Authority acts within its legal powers at all times and the Treasurer is responsible for ensuring the proper administration of the Authority’s financial affairs. Within their respective roles, both have a duty to report formally any adverse issues. The Treasurer reports to the Audit and Governance Committee on how the Authority’s financial arrangements conform to the governance requirements of the CIPFA Statement on the Role of the Chief Financial Officer in Local Government (2010).
The Authority operates an Integrated Personal Development System and an associated Learning and Development strategy to ensure services are delivered by trained and experienced personnel. All posts have job descriptions and person specifications and induction training is provided to all staff. All training is tailored to job needs/requirements based on an annual needs assessment and analysis.
This year the Fire Authority has continued to work to strengthen its participation in the consultation process, by widening its stakeholder list and the methods which feedback can be gained by using social media in addition to the more traditional methods. Feedback received from these forums has been taken account of when formulating the proposals for our estates strategy as detailed in the asset management Plan.
The Fire Authority publishes the following key documents:
A Community Integrated Risk Management Plan 2014-2018 (CIRMP), which identifies the strategic issues to be addressed and how we will address them over the medium term.
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An annual Service Plan, which encompasses the requirements of the Fire and Rescue Services Act 2004 and National Framework for Fire and Rescue Services in England 2012.
A Performance and Efficiency Report which provides information on the Authority’s performance, risk, finance and efficiency over the previous 12 months.
An Annual Statement of Assurance that provides the government and the public with assurance on our operational, financial and governance arrangements.
The Fire Authority has robust systems for identifying, evaluating and managing all significant risks. A risk management framework consisting of a risk management strategy, policy and systems are in place and embedded across the organisation and communicated to all staff. The risk management framework has been externally reviewed and assessed to ensure it is fit for the purpose that it is intended for.
Through this dynamic risk management framework, risk assessment and management is embedded into the Brigades Integrated Strategic Business and Financial Planning framework which helps inform business and resource decisions. The Community Integrated Risk Management Plan 2014/18 is a key output from this framework which links resources to our strategic goals, aims and outcomes. The effectiveness and quality of services delivered are measured and evaluated to ensure they achieve the Authority’s goals, aims and outcomes and represent value for money.
The Authority strives for continuous improvement and as part of the Integrated Strategic Finance and Business planning cycle reports from the Evaluation and Performance Frameworks helps the Authority identify, prioritise and inform resource allocation decisions that will drive continuous improvement in services.
A robust performance management framework is in place which uses a traffic light system to indicate areas of compliance and non-compliance. Improvement plans are produced on a risk assessed basis for areas of partial or full non-compliance and any issues identified by Internal Audit and other external inspections. Performance Management is embedded and operates throughout the organisation. Performance outcomes are reported regularly to the Executive Leadership Team, managers, staff and the public. On a quarterly basis detailed reports are reported to the Audit and Governance Committee and then made publically available. This framework has been externally assessed and validated by the Authority’s external auditors, Mazars to ensure it provides a realistic, reliable and transparent view of the Authority’s performance.
Procedures are in place that enables Internal Audit to report on a regular basis to the Audit and Governance Committee on the effectiveness of the organisation’s system of internal control and provide recommendations for improvement. Internal Audit performance is measured against standards agreed by management and Elected Members. These indicators were met for 2016/17.
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Other review bodies external to the Authority also make regular reports on compliance with our statutory requirements, operational arrangements and the efficiency and effectiveness of the Authority.
On an annual basis, as prescribed in the National Framework for Fire and Rescue Services in England 2012 the Authority publishes its Annual Statement of Assurance which provides a summary and assurance on the operational, financial and governance arrangements within the Authority.
REVIEW OF EFFECTIVENESS
The Treasurer of the Fire Authority has the responsibility for conducting, at least annually, a review of the internal control governance framework. The review of the effectiveness of internal control is informed by the work of Internal Audit and Senior Managers who have responsibility for the development and maintenance of the internal control environment. Additional information by external audit and other review agencies and inspectorates can also contribute to this review.
The arrangements that are in place for maintaining and reviewing the effectiveness of the system of internal control include:
Internal Audit – the Treasurer of the Fire Authority has the responsibility for maintaining and reviewing the system of financial internal control. In practice, the Fire Authority, and its External Auditor, takes assurance from the work of Internal Audit. In fulfilling this responsibility: Internal Audit operates to CIPFA’s Code of Internal Audit Practice and the Institute of Internal Auditors’ Guidance and Code of Ethics. Internal Audit reports are provided to the Director of Corporate Services and the Audit and Governance Committee. The Head of Internal Audit at Hartlepool Borough Council provides an independent opinion on the adequacy and effectiveness of the system of internal financial control. Internal audit plans are formulated on a risk assessed basis on an annual basis.
External Audit – as part of their annual audit completion report, they comment on financial aspects of corporate governance and performance management. External audit also expresses an opinion on the adequacy of Internal Audit work during the year. We have been advised on the implications of the result of the review of the effectiveness of the governance framework by the Audit and Governance Committee, and that the arrangements continue to be regarded as fit for purpose in accordance with the governance framework.
SIGNIFICANT GOVERNANCE ISSUES
No significant governance issues have been identified, however, in the interests of improving and developing governance arrangements an action plan for further improvement has been developed (see Appendix A).
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APPENDIX A
ANNUAL REVIEW OF CORPORATE GOVERNANCE ARRANGEMENTS ACTION PLAN FOR 2017/18
The following actions have been identified to further improve the governance framework;
No. Issue Action
AGS1 Reduce the overall cost base of the OD15: Revenue Budget 2017/18 Adjustments revenue budget in line with the medium term financial strategy. ER9: Prepare for the Introduction of Retained Duty System Arrangements for the Second Fire Engine at Thornaby and Grangetown Fire Stations
CS3: Review MTFS 2014-18
AGS2 Develop Corporate Governance A&D17/18 02: Establish a constitution for the CFA in line Arrangements with the CFA Governance Review (Corporate and Ethical)
A&D17/18 29: Establish/update an Independent Person Handbook
A&D17/18 15: Establish an Annual Local Pension Board Annual Report
A&D17/18 01: Ensure Local Pension Board Members receive the appropriate training
A&D17/18 13: Establish and arrange an Independent Remuneration Panel
A&D17/18 08: Establish, arrange and deliver where appropriate, member development training and guidance (including Code of Conduct and E & D)
AGS3 Promote greater partnership and EC1:Thornaby Fire Station – Collaboration with Cleveland collaborative working. Police
EC2:Redcar Fire Station – Collaboration with the Maritime Coastguard Agency
EC3:Incident Command Unit – Collaboration with Cleveland Police
EC4:Fleet Maintenance – Collaboration with Cleveland Police
EC5:Drones – Collaboration with Cleveland Police 5 OFFICIAL
EC6:Emergency Medical Responder Scheme – Collaboration with North East Ambulance and North East Fire and Rescue Services
EC7: Emergency Services Mobile Communications Programme – Collaboration with North East Fire and Rescue Services
EC8: Community Safety Services – Collaboration with Cleveland Police
EC9: Tackling Vulnerability; Building Resilience – Collaboration with the National Health Service, Public Health and Social Care
AGS4 Further Develop the Authority’s AT1: Review Performance Framework Performance Framework. CS9.6: Update Policy Framework: Evaluation Policy and Strategy
CS10: Prepare for the Home Office Inspection
AGS5 Further develop the Authority’s Risk CS9.5: Update Policy Framework: Risk Management Policy Framework. and Strategy
RP17/18 14 Complete CIPFA / Alarm Risk Management Benchmarking
AGS6 Delivering against the Equality and WR 5: Review and enhance the Equality, Diversity and Diversity statutory framework. Inclusivity Framework (including Review and update Equality and Diversity Policy and Strategy (HR18.1b) CFWD )
AGS7 Improvement/Value for Money CS11: Produce a Value for Money Strategic Assessment on CFA
CS8: Collaboration Enabling Services :CS8.1: Undertake a VFM Assessment on the Brigade’s Financial Management service
C2: Review Operational Configuration
We propose over the coming year to take steps to address the above matters to further enhance our governance arrangements. We are satisfied that these steps will address the need for improvements that were identified in our review of effectiveness and will monitor their implementation and operation as part of our next annual review. 6 OFFICIAL
CHAIR OF CLEVELAND FIRE AUTHORITY:
DATE:
CHIEF FIRE OFFICER:
DATE:
MONITORING OFFICER:
DATE:
TREASURER TO THE CLEVELAND FIRE AUTHORITY:
DATE:
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Annual Governance Statement 2016/17: Improvement Plan Progress Report
AGS Ref Action Status Progress
AGS 1: Reduce the overall cost base of the revenue budget in line with the medium term financial strategy.
Go live with on call staffing arrangements for 2nd Redcar 2nd (D3) appliance transferred from whole-time crewing to On appliances at Thornaby, Grangetown or Redcar call crewing 1st April 2017 Community Fire Stations.
On 1st April 2016 the Brigade’s baseline budgets were reduced to Undertake budget adjustments to reflect savings from reflect approved savings and the transformation funding. audit fees; non-pay budgets; occupancy; closure of The DCS has ensured that there are appropriate systems in place for Marine Fire Station; de-staffing of the Hydraulic Platform; the effective and efficient monitoring of efficiency and occupancy and use of transformational funding. levels.
The efficiencies for 2016/17 have been monitored by ELT and have been achieved in 2016/17. The achievement of the efficiencies is Monitor achievement of efficiencies of the CIRMP Year 3. reported to Elected Members via the Audit and Governance Committee on a quarterly basis.
Review medium term financial strategies in light of any A Revised MTFS has been approved by the CFA on 17th February revised budget settlements and adjust MTFS and year 4 2017. This took account of the budget settlement and the CIRMP CIRMP accordingly. Year 4.
OFFICIAL The DCS presented a report to ELT in August 2016 that detailed the approach to managing the vacancies to achieve the under occupancy Manage a planned under spend to ensure the savings. achievement of savings relating to occupancy levels. ELT approved the approach and the savings have now been achieved.
AGS 2: Develop Corporate Governance Arrangements.
The Constitution was approved by the CFA on 10 June 2016. The Establish a constitution for the CFA in line with the CFA Constitution combines the Corporate, Ethical and Member Governance Review. Development Frameworks.
Following the implementation of the CFA Review which saw a reduction of 7 Members, the removal of the Overview and Scrutiny Establish and arrange an Independent Remuneration Committee and amalgamation of other Committees.
Panel following the AGM in June 2016. Members had advised that they did not want to take an increase in allowances, the Treasurer agreed that a review on Members allowances would be undertaken after 12 months in 2017
The Constitution was approved by the CFA on 10 June 2017. The Update the Member Development Framework. Constitution combines the Corporate, Ethical and Member Development Frameworks.
ensure appropriate inductions for newly elected New member induction took place prior to the annual meeting and a
Members. background input was also undertaken within the meeting.
Establish, arrange and deliver where appropriate, Training has taken place throughout the year Member development training and guidance.
OFFICIAL – ANNUAL GOVERNANCE STATEMENT 2016-17: IMPROVEMENT PLAN PROGRESS REPORT - APPENDIX 2 2 AGS 3: Promote greater partnership and collaborative working.
Currently there are a number of actions underway and /or completed to realise the opportunities of partnership and collaborative working with Cleveland Police and other bodies, notably; 1) Deliver an enhanced use of the welfare pod as a police negotiation asset. 2) Deliver a business case for full fleet collaboration. 3) Deliver a business case for the sharing of the Incident Command Unit. 4) Contribute to the research and establishment of a Drone sharing asset programme. Develop proposals for integrated learning and 5) Learning & Development Centre: Cleveland Fire Brigade has development and estate opportunities with Cleveland entered into a service agreement for the Police to relocate their Police. training department into our existing Learning & Development building at Grangetown upon the completion of phase 3 at Queens Meadow Complex, when our Learning & Development department will relocate fully to the Queens Meadow Complex. 6) Thornaby Fire Station: As part of the rebuild of Thornaby Fire Station, an agreement has been drawn up to provide bespoke office space for the Police to be occupied by their Stockton Community Team. 7) Technical Hub: Police to relocate their fleet maintenance division to Cleveland Fire Brigade’s vehicle resource centre in the Technical Hub.
CFB Fall-back service has been installed, assured and tested at Integrate ICCS and mobilising systems to provide a fully Shropshire FRS (SFRS) Fire Control in Shrewsbury. functional remote control room for the use in the event of CFB Fire Control now established in new Control Room at QMC
Control Room evacuation (Gold Phase Tri-partite Fire Training & Admin Hub. SFRS fall-back facility at CFB Fire Control in Control Arrangements). Hartlepool to be implemented later this year following appointment of appropriate staff within SFRS.
OFFICIAL – ANNUAL GOVERNANCE STATEMENT 2016-17: IMPROVEMENT PLAN PROGRESS REPORT - APPENDIX 2 3 Refresh Strategic Partner Analysis for 2016/17. Detailed analysis completed and presented to ELT 3rd August 2016
AGS 4: Further Develop the Authority’s Performance Framework.
Implement Phase 2 of the Performance Management This is ongoing work and will be integrated into action AT1 for
System. 2017/18
Conduct and impact analysis on changes of requirements This action has been deferred until more information on the Home on the Brigades Performance, Intelligence and Risk Office inspection regime is published. Management Frameworks through the transfer of The full inspection regime is not expected to commence until 2018/19 responsibility of the Fire Service Sector to the Home with some thematic inspections being undertaken during 2017/18. Office.
Review and revise the performance reports provided to Full review of reports completed in conjunction with operational operational crews and the media which they are provided Managers. A streamlined consolidated reporting framework is now on. introduced
AGS 5: Further develop the Authority’s Risk Framework.
This review was deliberately delayed in order to align with the new Review and update the Risk Management Policy and CIRMP process. The draft policy and strategy has been produced and Strategy. is going through the approval process
OFFICIAL – ANNUAL GOVERNANCE STATEMENT 2016-17: IMPROVEMENT PLAN PROGRESS REPORT - APPENDIX 2 4 This report has been completed and presented to ELT during a Compile a report and presentation summarising the strategic planning meeting of ELT in November 2016. This is one of findings from the external review of the risk assessment the elements of the Strategic Planning process to be completed methodology for Overview and Scrutiny. during 2017/18 to produce the next CIRMP
Benchmarking completed during September 2016 with outcomes Complete Risk Management Benchmarking. reported in the Annual Performance and Efficiency Report 2016/17.
The District Risk Footprints have been extended to now include risk maps at a neighbourhood level. The footprints also contain detailed analysis and projections on the impact on the Emergency Response Implement phase 2 of Development of District Risk risk assessment for numbers of incidents occurring during the year.
Footprints. This information is now incorporated into CP monthly monitoring to ensure operational teams have most up to date view of anticipated changes to risk assessments based on current levels of service demand.
AGS 6: Delivering against the Equality and Diversity statutory framework.
Review and updated Equality and Diversity Policy and Update of the E&D Policy and Strategy outstanding Strategy (HR18.1b)
AGS 7: Improvement/Value for Money
Provide future options for the Control Room that Fire Control review complete and awaiting the go ahead from ELT to
demonstrate improved efficiency and/or capacity. implement the recommendations.
OFFICIAL – ANNUAL GOVERNANCE STATEMENT 2016-17: IMPROVEMENT PLAN PROGRESS REPORT - APPENDIX 2 5 Manage and monitor transformational bid revenue money Balance carried forward from 2015/16 and being monitored to ensure to support the transition of whole-time staffed appliances compliance with the grant terms and conditions. Grant will be fully to the retained (on-call) duty system. utilised by 31st March 2017
Station Boundaries redrawn to incorporate Marine Station area into Ensure appropriate systems, processes and procedures Middlesbrough Station area. (including historic data) are amended for the closure of Systems updated accordingly with incident data transferred into the the Marine Station and transfer of appliance to Stockton new station boundaries. Full quality assurance and reconciliation of crewed by On-Call Firefighters. incident data transfer completed successfully.
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Internal Audit Report
Corporate Governance – Annual Governance Statement
Final Report
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Internal Audit is an independent appraisal function that reviews the Council's activities, both financial and non-financial. Internal Audit provides a service to the whole Council in order to provide assurance on the arrangements for risk management, internal control and corporate governance, and to provide advice to support achievement of best practice.
All audit work has been carried out in accordance with the CIPFA Code of Practice for Internal Audit in Local Government in the UK, as reflected in the Internal Audit Manual.
The auditors involved in the work have no links to the subject matter of this audit or relationships with the clients that could compromise the impartiality or objectivity of the work undertaken.
Audit Team:
Noel Adamson Head of Audit and Governance Tel: 01429 523173 Email: [email protected]
Distribution:
Chris Little Treasurer to the CFA
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Scope, Objectives and Risks of the Audit
Scope The scope of the audit was to review the process for producing the Annual Governance Statement and ensuring items identified in the 15/16 Annual Governance Statement action plan are regularly monitored and reviewed.
Objectives The audit objectives were to ensure that the systems and procedures in place at the Fire Authority provide adequate arrangements for ensuring that:
. An Annual Governance Statement would be produced and presented with the accounting statements for 16/17 for the CFA.
Risks The following risks were identified:
. The Annual Governance Statement is not produce in compliance with statute or good practice requirements. . Actions identified in previous Annual Governance Statements are not monitored and reviewed.
Summary & Conclusion In order to ensure that that the items identified in the 15/16 Annual Governance Statement action plan are regularly monitored, Performance outcomes are reported monthly to the Strategic Management Team and monitoring reports are sent to the Audit and Governance Committee. Performance reports inform resource decisions after areas of poor performance are identified. An Improvement Action Plans – Annual Summary is produced on the outcomes of the implementation of action plans. There were no matters arising.
The timetable for the production of the 16/17 Annual Governance Statement fits in with the requirement to produce the 16/17 Statement of Accounts and the requirement of Internal Audit to give an opinion on the internal control environment at the CFA. There were no matters arising.
Overall, the existing processes and procedures in place continue to provide a high level of assurance that controls are operating as intended.
Noel Adamson Head of Audit and Governance Date: 10.05.17
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