Scrutiny and Audit Panel

(Number of Members 6: Quorum 2) (In the past there has been a requirement to include 3 Members of the Policy and Resources Panel on this Panel. In case the Authority wishes to progress the separation of roles, it is intended to remove this as a requirement, but without specifically barring Policy and Resources Members from serving on the Panel. The Panel will be supported by the [name to be agreed] Working Group, an advisory team of Members and officers of the Authority).

Section 1 - Audit and Regulatory Framework Responsibilities

1. Audit Activity

1.1 To oversee all AUDIT issues on behalf of the Fire Authority, reporting on such issues on a regular basis, in addition to any specific issues set out below.

1.2 To consider reports dealing with the management and performance of the providers of internal and external audit services and commission services from them.

1.3 To consider the internal audit´s annual report and opinion, summaries of internal audit activity (actual and proposed) and any specific internal audit reports, as deemed appropriate, as well as the level of assurance it can give over the Authority´s corporate governance arrangements including any information from internal audit on agreed recommendations not implemented within a reasonable timescale.

1.4 To consider the external auditor´s annual Management Letter and opinion, summaries of external audit activity (actual and proposed) and any specific external audit reports, as deemed appropriate, as well as the level of assurance it can give over the Authority´s corporate governance arrangements including any information from external audit on agreed recommendations not implemented within a reasonable timescale. To comment on the scope and depth of external audit work and to ensure it gives value for money.

1.5 To consider relevant reports arising from the organisation´s business audit arrangements as relevant to corporate governance issues.

2. Regulatory Framework

2.1 To oversee the Authority´s CONSTITUTIONAL ARRANGEMENTS in respect of the development, monitoring and review of Standing Orders, Financial Regulations including contract procedure rules, Codes of Conduct and behaviour, Corporate Risk Management and Governance arrangements and Strategies in order to ensure compliance with best practice with other national published standards, regulations and controls as well as its own existing arrangements.

2.2 To develop both financial management awareness and an anti-fraud culture throughout the organisation and monitor the antifraud and anti-corruption strategy and the Authority´s complaints process.

2.3 To oversee the production of the authority´s Statement on Internal Control and to recommend its adoption.

2.4 To review any issue referred to it by the Chief Fire Officer & Chief Executive, or other Principal Officer or appointed officer of the Authority or any authority body.

3. Accounts

3.1 To act as a committee for the purposes of receiving the annual statement of accounts and be authorised to take such action as necessary in relation thereto.

3.2 To review the annual statement of accounts. Specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from the financial statements or from the audit that need to be brought to the attention of the Authority.

3.3 To consider the external auditor´s report to those charged with governance on issues arising from the audit of the accounts.

Section 2 - Scrutiny and Performance Review Responsibilities

1. To oversee all SCRUTINY and performance review activities on behalf of the Fire Authority, reporting on such issues on a regular basis.
2. To recommend to the Fire Authority a programme of Fundamental Performance Reviews as part of the Fire Authority's Best Value Strategy in an order of priority determined appropriate by the Panel which takes account of such issues as:
   1. Topical national fire service issues.
   2. Local issues identified as requiring further review as a result of evidence gained from benchmarking, performance indicator or other objective exercises.
   3. The service policy priorities identified within the Fire Authority´s annual Best Value Performance Plan.
   4. The expected levels of resources available to the Authority and any requirement to achieve efficiency savings.
   5. The scope of the Fire Authority's agreed strategies and whether these are being delivered efficiently and effectively.
   6. Evidence available from consultation exercises under the Best Value Regime.
3. To consider the Fire & Rescue Service´s Performance Management arrangements and monitor their effectiveness with regard to performance improvement arising from the agreed Modernisation and Improvement Agenda of the Fire Authority.
4. To examine ANY SCRUTINY OR PERFORMANCE REVIEW issues raised within the External Auditor´s Management Letter prior to its consideration by the Fire Authority, advising the Fire Authority as required in a covering report, with specific reference to all RELEVANT aspects.
5. To draw to the immediate attention of the Fire Authority any SCRUTINY OR PERFORMANCE REVIEW issues deemed to be of such significance as requiring the full attention of the Authority.