january 2016 humberside fire authority...support our audit work on the authority’s group accounts,...
TRANSCRIPT
Exte
rnal
Aud
it Pl
an
2015
/201
6
Hum
bers
ide
Fire
Aut
horit
y
Janu
ary
2016
25
1©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Hea
dlin
es
Fina
ncia
l Sta
tem
ents
Aud
itVa
lue
for M
oney
Arr
ange
men
ts w
ork
£
Ther
e ar
e no
sig
nific
ant c
hang
es to
the
Cod
e of
Pra
ctic
e on
Loc
al A
utho
rity
Acc
ount
ing
in 2
015/
16, w
hich
pro
vide
s st
abili
ty in
term
s of
the
acco
untin
g st
anda
rds
the
Aut
horit
y ne
eds
to c
ompl
y w
ith.
Mat
eria
lity
Mat
eria
lity
for p
lann
ing
purp
oses
has
bee
n ba
sed
on la
st y
ear’s
exp
endi
ture
and
set
at
£97
5k fo
r the
Aut
horit
y ac
coun
ts a
nd £
1m fo
r the
Gro
up A
ccou
nts.
We
are
oblig
ed to
repo
rt un
corr
ecte
d om
issi
ons
or m
isst
atem
ents
oth
er th
an th
ose
whi
ch a
re ‘c
lear
ly tr
ivia
l’ to
thos
e ch
arge
d w
ith g
over
nanc
e an
d th
is h
as b
een
set
at £
50k.
Sign
ifica
nt ri
sks
Thos
e ris
ks re
quiri
ng s
peci
fic a
udit
atte
ntio
n an
d pr
oced
ures
to a
ddre
ss th
e lik
elih
ood
of a
mat
eria
l fin
anci
al s
tate
men
t err
or h
ave
been
iden
tifie
d as
:
■A
ccou
ntin
g fo
r the
con
solid
atio
n of
Em
erge
ncy
Ser
vice
s Fl
eet M
anag
emen
t (H
umbe
rsid
e) L
imite
d.
Oth
er a
reas
of a
udit
focu
sTh
ose
risks
with
less
like
lihoo
d of
giv
ing
rise
to a
mat
eria
l err
or b
ut w
hich
are
ne
verth
eles
s w
orth
y of
aud
it un
ders
tand
ing
have
bee
n id
entif
ied
as:
■Fu
ture
trea
tmen
t of t
he E
ast C
oast
and
Her
tford
shire
Con
trol R
oom
con
sorti
um;
See
page
s 3
to 5
for m
ore
deta
ils.
Logi
stic
s
£
The
Nat
iona
l Aud
it O
ffice
has
issu
ed n
ew g
uida
nce
for t
he V
FM a
udit
whi
ch a
pplie
s fro
m th
e 20
15/1
6 au
dit y
ear.
The
appr
oach
is b
road
ly s
imila
r in
conc
ept t
o th
e pr
evio
us
VFM
aud
it re
gim
e, b
ut th
ere
are
som
e no
tabl
e ch
ange
s:
■Th
ere
is a
new
ove
rall
crite
rion
on w
hich
the
audi
tor’s
VFM
con
clus
ion
is b
ased
; and
■Th
is o
vera
ll cr
iterio
n is
sup
porte
d by
thre
e ne
w s
ub-c
riter
ia.
Our
risk
ass
essm
ent i
s on
goin
g an
d w
e w
ill re
port
VFM
sig
nific
ant r
isks
dur
ing
our
audi
t.
See
page
s 6
to 8
for m
ore
deta
ils.
Our
team
is:
■Jo
hn P
rent
ice
-Dire
ctor
■Ja
ckie
Rae
-M
anag
er
■Je
ssic
a D
unn–
Ass
ista
nt M
anag
er
Mor
e de
tails
are
on
page
12.
Our
wor
k w
ill b
e co
mpl
eted
in fo
ur p
hase
s fro
m J
anua
ry to
Sep
tem
ber a
nd o
ur k
ey
deliv
erab
les
are
this
Aud
it P
lan
and
a R
epor
t to
thos
e ch
arge
d w
ith G
over
nanc
e as
ou
tline
d on
pag
e11
.
Our
fee
for t
he a
udit
is £
31,8
97 (£
42,5
29 in
201
4/20
15) -
see
page
9.
26
2©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Fina
ncia
l Sta
tem
ents
Aud
it
Our
fina
ncia
l sta
tem
ents
aud
it w
ork
follo
ws
a fo
ur s
tage
aud
it pr
oces
s w
hich
is id
entif
ied
belo
w. A
ppen
dix
1 pr
ovid
es m
ore
deta
il on
the
activ
ities
that
this
incl
udes
. Thi
s re
port
conc
entra
tes
on th
e Fi
nanc
ial S
tate
men
ts A
udit
Pla
nnin
g st
age
of th
e Fi
nanc
ial
Sta
tem
ents
Aud
it.
Valu
e fo
r Mon
ey A
rran
gem
ents
Wor
k
Our
Val
ue fo
r Mon
ey (V
FM) A
rran
gem
ents
Wor
k fo
llow
s a
five
stag
e pr
oces
s w
hich
is
iden
tifie
d be
low
. Pag
es 6
to 8
pro
vide
s m
ore
deta
il on
the
activ
ities
that
this
incl
udes
. Thi
s re
port
conc
entra
tes
on e
xpla
inin
g th
e V
FM a
ppro
ach
for t
he 2
015/
16 a
udit.
Intr
oduc
tion
Bac
kgro
und
and
Stat
utor
y re
spon
sibi
litie
s
This
doc
umen
t sup
plem
ents
our
Aud
it Fe
e Le
tter 2
015/
16 p
rese
nted
to y
ou in
Apr
il 20
15,
whi
ch a
lso
sets
out
det
ails
of o
ur a
ppoi
ntm
ent b
y P
ublic
Sec
tor A
udit
App
oint
men
ts L
td
(PS
AA
).
Our
sta
tuto
ry re
spon
sibi
litie
s an
d po
wer
s ar
e se
t out
in th
e Lo
cal A
udit
and
Acc
ount
abili
ty
Act
201
4 an
d th
e N
atio
nal A
udit
Offi
ce’s
Cod
e of
Aud
it P
ract
ice.
Our
aud
it ha
s tw
o ke
y ob
ject
ives
, req
uirin
g us
to a
udit/
revi
ew a
nd re
port
on y
our:
■Fi
nanc
ial s
tate
men
ts (i
nclu
ding
the
Ann
ual G
over
nanc
e S
tate
men
t):P
rovi
ding
an
opin
ion
on y
our a
ccou
nts;
and
■U
se o
f res
ourc
es:C
oncl
udin
g on
the
arra
ngem
ents
in p
lace
for s
ecur
ing
econ
omy,
ef
ficie
ncy
and
effe
ctiv
enes
s in
you
r use
of r
esou
rces
(the
val
ue fo
r mon
ey
conc
lusi
on).
The
audi
t pla
nnin
g pr
oces
s an
d ris
k as
sess
men
t is
an o
n-go
ing
proc
ess
and
the
asse
ssm
ent a
nd fe
es in
this
pla
n w
ill b
e ke
pt u
nder
revi
ew a
nd u
pdat
ed if
nec
essa
ry.
Ack
now
ledg
emen
ts
We
wou
ld li
ke to
take
this
opp
ortu
nity
to th
ank
offic
ers
and
Mem
bers
for t
heir
cont
inui
ng
help
and
co-
oper
atio
n th
roug
hout
our
aud
it w
ork.
Subs
tant
ive
Proc
edur
esC
ompl
etio
nC
ontr
olEv
alua
tion
Fina
ncia
l St
atem
ents
Aud
it Pl
anni
ng
Ris
k As
sess
men
tVF
M
audi
t wor
k
Iden
tific
atio
n of
sig
nific
ant
VFM
risk
sC
oncl
ude
Rep
ortin
g
27
3©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Fina
ncia
l sta
tem
ents
aud
it pl
anni
ng
Fina
ncia
l Sta
tem
ents
Aud
it Pl
anni
ng
Our
pla
nnin
g w
ork
take
s pl
ace
durin
g Ja
nuar
y to
Feb
ruar
y 20
16. T
his
invo
lves
the
follo
win
g ke
y as
pect
s:
■R
isk
asse
ssm
ent;
■D
eter
min
ing
our m
ater
ialit
y le
vel;
and
■Is
suin
g th
is a
udit
plan
to c
omm
unic
ate
our a
udit
stra
tegy
.
Ris
k as
sess
men
t
Pro
fess
iona
l sta
ndar
ds re
quire
us
to c
onsi
der t
wo
stan
dard
risk
s fo
r all
orga
nisa
tions
. We
are
not e
labo
ratin
g on
thes
e st
anda
rd ri
sks
in th
is p
lan
but c
onsi
der t
hem
as
a m
atte
r of
cour
se in
our
aud
it an
d w
ill in
clud
e an
y fin
ding
s ar
isin
g fro
m o
ur w
ork
in o
ur
ISA
260
Rep
ort.
■M
anag
emen
t ove
rrid
e of
con
trols
–M
anag
emen
t is
typi
cally
in a
pow
erfu
l pos
ition
to
perp
etra
te fr
aud
owin
g to
its
abili
ty to
man
ipul
ate
acco
untin
g re
cord
s an
d pr
epar
e fra
udul
ent f
inan
cial
sta
tem
ents
by
over
ridin
g co
ntro
ls th
at o
ther
wis
e ap
pear
to b
e op
erat
ing
effe
ctiv
ely.
Our
aud
it m
etho
dolo
gy in
corp
orat
es th
e ris
k of
man
agem
ent
over
ride
as a
def
ault
sign
ifica
nt ri
sk. I
n lin
e w
ith o
ur m
etho
dolo
gy, w
e ca
rry
out
appr
opria
te c
ontro
ls te
stin
g an
d su
bsta
ntiv
e pr
oced
ures
, inc
ludi
ng o
ver j
ourn
al
entri
es, a
ccou
ntin
g es
timat
es a
nd s
igni
fican
t tra
nsac
tions
that
are
out
side
the
norm
al
cour
se o
f bus
ines
s, o
r are
oth
erw
ise
unus
ual.
■Fr
audu
lent
reve
nue
reco
gniti
on –
We
do n
ot c
onsi
der t
his
to b
e a
sign
ifica
nt ri
sk fo
r lo
cal a
utho
ritie
s as
ther
e ar
e lim
ited
ince
ntiv
es a
nd o
ppor
tuni
ties
to m
anip
ulat
e th
e w
ay in
com
e is
reco
gnis
ed. W
e th
eref
ore
rebu
t thi
s ris
k an
d do
not
inco
rpor
ate
spec
ific
wor
k in
to o
ur a
udit
plan
in th
is a
rea
over
and
abo
ve o
ur s
tand
ard
fraud
pro
cedu
res.
The
diag
ram
opp
osite
iden
tifie
s, s
igni
fican
t ris
ks a
nd o
ther
are
as o
f aud
it fo
cus,
whi
ch w
e ex
pand
on
over
leaf
. The
dia
gram
als
o id
entif
ies
a ra
nge
of o
ther
are
as c
onsi
dere
d by
our
au
dit a
ppro
ach.
£
Man
agem
ent
over
ride
of
cont
rols
Rev
enue
re
cogn
ition
Rem
uner
atio
n di
sclo
sure
s
Acc
ount
ing
for l
ease
s
Key
fina
ncia
l sy
stem
s
Impa
irmen
t of
PP
E
Bad
deb
t pr
ovis
ion
Fina
ncia
l In
stru
men
ts
disc
losu
res Con
solid
atio
n of
a s
ubsi
diar
y
Pen
sion
lia
bilit
y as
sum
ptio
ns
Pro
visi
ons
Pen
sion
as
sets
Com
plia
nce
to
disc
losu
re
chec
klis
t
Keys
:
Sign
ifica
nt ri
sk
Oth
er a
rea
of a
udit
focu
s
Oth
er a
reas
con
side
red
by o
ur a
ppro
ach
28
4©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Sign
ifica
nt A
udit
Ris
ks
Thos
e ris
ks re
quiri
ng s
peci
fic a
udit
atte
ntio
n an
d pr
oced
ures
to a
ddre
ss th
e lik
elih
ood
of a
mat
eria
l fin
anci
al s
tate
men
t err
or.
Oth
er a
reas
of a
udit
focu
s
Thos
e ris
ks w
ith le
ss li
kelih
ood
of g
ivin
g ris
e to
a m
ater
ial e
rror
but
whi
ch a
re
neve
rthel
ess
wor
thy
of a
udit
unde
rsta
ndin
g.
Fina
ncia
l sta
tem
ents
aud
it pl
anni
ng (c
ont.)
Oth
er a
rea
of a
udit
focu
s
■Is
sue
-The
Aut
horit
y ha
s be
en th
e ho
st fo
r the
Eas
t Coa
st a
nd H
ertfo
rdsh
ire
Con
trol R
oom
Con
sorti
um s
ince
cre
atio
n an
d ha
s m
anag
ed th
e in
com
e an
d ex
pend
iture
on
beha
lf of
the
thre
e ot
her o
rgan
isat
ions
. The
pro
ject
is n
earin
g co
mpl
etio
n.
■A
ppro
ach
–W
e w
ill d
iscu
ss, w
ith th
e Fi
nanc
e M
anag
er, t
he o
n go
ing
acco
untin
g tre
atm
ent o
f the
pro
ject
and
revi
ew re
leva
nt d
ocum
enta
tion
and
agre
emen
ts.
£
Sign
ifica
nt R
isk
1
■R
isk
–H
umbe
rsid
e Fi
re A
utho
rity
have
ent
ered
into
a jo
int a
rran
gem
ent w
ith
Hum
ber s
ide
Pol
ice
to fo
rm a
flee
t man
agem
ent c
ompa
ny fr
om 1
Apr
il 20
15.
The
Aut
horit
y w
ill b
e co
nsol
idat
ing
Em
erge
ncy
Ser
vice
s Fl
eet M
anag
emen
t (H
umbe
rsid
e) L
imite
d in
to th
eir a
ccou
nts
for t
he fi
rst t
ime
in 2
015/
16 a
ccou
nts.
■A
ppro
ach
-We
will
hol
d ea
rly d
iscu
ssio
ns w
ith th
e Fi
nanc
e M
anag
er to
agr
ee
the
appr
opria
te a
ccou
ntin
g tre
atm
ent i
n ad
vanc
e of
the
year
end
. We
will
liai
se
with
the
audi
tors
of t
he c
ompa
ny a
s ne
cess
ary
and
exam
ine
the
entri
es in
the
draf
t fin
anci
al s
tate
men
ts.
29
5©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Fina
ncia
l sta
tem
ents
aud
it pl
anni
ng (c
ont.)
Mat
eria
lity
We
are
requ
ired
to p
lan
our a
udit
to d
eter
min
e w
ith re
ason
able
con
fiden
ce w
heth
er o
r not
th
e fin
anci
al s
tate
men
ts a
re fr
ee fr
om m
ater
ial m
isst
atem
ent.
An
omis
sion
or m
isst
atem
ent
is re
gard
ed a
s m
ater
ial i
f it w
ould
reas
onab
ly in
fluen
ce th
e us
er o
f fin
anci
al s
tate
men
ts.
This
ther
efor
e in
volv
es a
n as
sess
men
t of t
he q
ualit
ativ
e an
d qu
antit
ativ
e na
ture
of
omis
sion
s an
d m
isst
atem
ents
.
Gen
eral
ly, w
e w
ould
not
con
side
r diff
eren
ces
in o
pini
on in
resp
ect o
f are
as o
f jud
gem
ent
to re
pres
ent ‘
mis
stat
emen
ts’ u
nles
s th
e ap
plic
atio
n of
that
judg
emen
t res
ults
in a
fina
ncia
l am
ount
falli
ng o
utsi
de o
f a ra
nge
whi
ch w
e co
nsid
er to
be
acce
ptab
le.
Mat
eria
lity
for p
lann
ing
purp
oses
has
bee
n se
t at £
975k
for t
he A
utho
rity’
s st
anda
lone
ac
coun
ts, a
nd a
t £1
mill
ion
for t
he g
roup
acc
ount
s, w
hich
in b
oth
case
s eq
uate
s to
just
less
th
an 2
perc
ent o
f gro
ss e
xpen
ditu
re.
We
desi
gn o
ur p
roce
dure
s to
det
ect e
rror
s in
spe
cific
acc
ount
s at
a lo
wer
leve
l of p
reci
sion
.
Rep
ortin
g to
the
Fire
Aut
horit
y
Whi
lst o
ur a
udit
proc
edur
es a
re d
esig
ned
to id
entif
y m
isst
atem
ents
whi
ch a
re m
ater
ial t
o ou
r opi
nion
on
the
finan
cial
sta
tem
ents
as
a w
hole
, we
neve
rthel
ess
repo
rt to
the
Fire
A
utho
rity
any
unad
just
ed m
isst
atem
ents
of l
esse
r am
ount
s to
the
exte
nt th
at th
ese
are
iden
tifie
d by
our
aud
it w
ork.
£
Und
er IS
A 2
60(U
K&
I) ‘C
omm
unic
atio
n w
ith th
ose
char
ged
with
gov
erna
nce’
, we
are
oblig
ed to
repo
rt un
corr
ecte
d om
issi
ons
or m
isst
atem
ents
oth
er th
an th
ose
whi
ch a
re
‘cle
arly
triv
ial’
to th
ose
char
ged
with
gov
erna
nce.
ISA
260
(UK
&I)
defin
es ‘c
lear
ly tr
ivia
l’ as
m
atte
rs th
at a
re c
lear
ly in
cons
eque
ntia
l, w
heth
er ta
ken
indi
vidu
ally
or i
n ag
greg
ate
and
whe
ther
judg
ed b
y an
y qu
antit
ativ
e or
qua
litat
ive
crite
ria.
In th
e co
ntex
t of t
he A
utho
rity,
we
prop
ose
that
an
indi
vidu
al d
iffer
ence
cou
ld n
orm
ally
be
cons
ider
ed to
be
clea
rly tr
ivia
l if i
t is
less
than
£50
k.
If m
anag
emen
t hav
e co
rrec
ted
mat
eria
l mis
stat
emen
ts id
entif
ied
durin
g th
e co
urse
of t
he
audi
t, w
e w
ill c
onsi
der w
heth
er th
ose
corr
ectio
ns s
houl
d be
com
mun
icat
ed to
the
Aud
it C
omm
ittee
to a
ssis
t it i
n fu
lfilli
ng it
s go
vern
ance
resp
onsi
bilit
ies.
Gro
up a
udit
In a
dditi
on to
the
Aut
horit
y w
e de
em E
mer
genc
y S
ervi
ces
Flee
t Man
agem
ent
(Hum
bers
ide)
Lim
ited
to b
e si
gnifi
cant
in th
e co
ntex
t of t
he g
roup
aud
it.
To s
uppo
rt ou
r aud
it w
ork
on th
e A
utho
rity’
s gr
oup
acco
unts
, we
seek
to p
lace
relia
nce
on
the
wor
k of
Sm
aile
s G
oldi
ew
ho a
re th
e au
dito
rs to
this
sub
sidi
ary.
We
will
liai
se w
ith th
em
in o
rder
to c
onfir
m th
at th
eir p
rogr
amm
e of
wor
k is
ade
quat
e fo
r our
pur
pose
s an
d th
ey
satis
fy p
rofe
ssio
nal r
equi
rem
ents
.
We
will
repo
rt th
e fo
llow
ing
mat
ters
in o
ur R
epor
t to
thos
e ch
arge
d w
ith G
over
nanc
e:
■A
ny d
efic
ienc
ies
in th
e sy
stem
of i
nter
nal c
ontro
ls o
r ins
tanc
es o
f fra
ud w
hich
the
subs
idia
ry a
udito
rs id
entif
y;
■A
ny li
mita
tions
on
the
grou
p au
dit,
for e
xam
ple,
whe
re o
ur a
cces
s to
info
rmat
ion
may
ha
ve b
een
rest
ricte
d; a
nd
■A
ny in
stan
ces
whe
re o
ur e
valu
atio
n of
the
wor
k th
e su
bsid
iary
aud
itors
giv
es ri
seto
con
cern
abo
ut th
e qu
ality
of t
hat a
udito
r’s w
ork.
54
0102030405060
2015
-16
Forecast Gross expenditure of the Group
Sou
rce:
Cur
rent
Yea
r Bud
get
£50K
Indi
vidu
al e
rrors
, w
here
iden
tifie
d,
repo
rted
to
Fire
Aut
horit
y
Pro
cedu
res
desi
gned
to
dete
ct in
divi
dual
er
rors
£750
K
30
6©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Valu
e fo
r mon
ey a
rran
gem
ents
wor
k
VFM
aud
it ris
k as
sess
men
t
Fina
ncia
l sta
tem
ents
and
ot
her a
udit
wor
k
Iden
tific
atio
n of
si
gnifi
cant
VFM
risk
s (if
an
y)C
oncl
ude
on
arra
ngem
ents
to
secu
re V
FM
No
furth
er w
ork
requ
ired
Ass
essm
ent o
f wor
k by
oth
er re
view
ag
enci
es
Spe
cific
loca
l ris
k ba
sed
wor
k
VFM conclusion
Con
tinua
lly re
-ass
ess
pote
ntia
l VFM
risk
s
£
Info
rmed
de
cisi
on
mak
ing
Wor
king
w
ith
part
ners
an
d th
ird
part
ies
Sust
aina
ble
reso
urce
de
ploy
men
t
Ove
rall
crite
rion
In a
ll si
gnifi
cant
resp
ects
, the
aud
ited
body
had
pro
per a
rran
gem
ents
to e
nsur
e it
took
pr
oper
ly in
form
ed d
ecis
ions
and
dep
loye
d re
sour
ces
to a
chie
ve p
lann
ed a
nd
sust
aina
ble
outc
omes
for t
axpa
yers
and
loca
l peo
ple.
Bac
kgro
und
to a
ppro
ach
to V
FM w
ork
The
Loca
l Aud
it an
d A
ccou
ntab
ility
Act
201
4 re
quire
s au
dito
rs o
f loc
al g
over
nmen
t bod
ies
incl
udin
g fir
e an
d re
scue
aut
horit
ies
to b
e sa
tisfie
d th
at th
e au
thor
ity ‘h
as m
ade
prop
er
arra
ngem
ents
for s
ecur
ing
econ
omy,
effi
cien
cy a
nd e
ffect
iven
ess
in it
s us
e of
reso
urce
s’.
This
is s
uppo
rted
by th
e C
ode
of A
udit
Pra
ctic
e, p
ublis
hed
by th
e N
AO
in A
pril
2015
, whi
ch
requ
ires
audi
tors
to ‘t
ake
into
acc
ount
thei
r kno
wle
dge
of th
e re
leva
nt lo
cal s
ecto
r as
a w
hole
, and
the
audi
ted
body
spe
cific
ally
, to
iden
tify
any
risks
that
, in
the
audi
tor’s
ju
dgem
ent,
have
the
pote
ntia
l to
caus
e th
e au
dito
r to
reac
h an
inap
prop
riate
con
clus
ion
on
the
audi
ted
body
’s a
rran
gem
ents
.’
The
VFM
app
roac
h is
fund
amen
tally
unc
hang
ed fr
om th
at a
dopt
ed in
201
4/15
and
the
proc
ess
is s
how
n in
the
diag
ram
bel
ow. H
owev
er, t
he p
revi
ous
two
spec
ified
repo
rting
cr
iteria
(fin
anci
al re
silie
nce
and
econ
omy,
effi
cien
cy a
nd e
ffect
iven
ess)
hav
e be
en
repl
aced
with
a s
ingl
e cr
iterio
n su
ppor
ted
by th
ree
sub-
crite
ria. T
hese
sub
-crit
eria
pro
vide
a
focu
s to
our
VFM
wor
k at
the
Aut
horit
y. T
he d
iagr
am to
the
right
sho
ws
the
deta
ils o
fth
ese
crite
ria.
31
7©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Valu
e fo
r mon
ey a
rran
gem
ents
wor
k (c
ont.)
£
VFM
aud
it st
age
Aud
it ap
proa
ch
VFM
aud
it ris
k as
sess
men
tW
e co
nsid
er th
e re
leva
nce
and
sign
ifica
nce
of th
e po
tent
ial b
usin
ess
risks
face
d by
all
loca
l aut
horit
ies,
and
oth
er ri
sks
that
app
ly s
peci
fical
ly to
the
Aut
horit
y. T
hese
are
the
sign
ifica
nt o
pera
tiona
l and
fina
ncia
l ris
ks in
ach
ievi
ng s
tatu
tory
func
tions
and
obj
ectiv
es, w
hich
are
rele
vant
to a
udito
rs’
resp
onsi
bilit
ies
unde
r the
Cod
e of
Aud
it P
ract
ice.
In d
oing
so
we
cons
ider
:
■Th
e A
utho
rity’
s ow
n as
sess
men
t of t
he ri
sks
it fa
ces,
and
its
arra
ngem
ents
to m
anag
e an
d ad
dres
s its
risk
s;
■In
form
atio
n fro
m th
e P
ublic
Sec
tor A
udito
r App
oint
men
ts L
imite
d V
FM p
rofil
e to
ol;
■E
vide
nce
gain
ed fr
om p
revi
ous
audi
t wor
k, in
clud
ing
the
resp
onse
to th
at w
ork;
and
■Th
e w
ork
of o
ther
insp
ecto
rate
s an
d re
view
age
ncie
s.
Link
ages
with
fina
ncia
l st
atem
ents
and
oth
erau
dit w
ork
Ther
e is
a d
egre
e of
ove
rlap
betw
een
the
wor
k w
e do
as
part
of th
e V
FM a
udit
and
our f
inan
cial
sta
tem
ents
aud
it. F
or e
xam
ple,
our f
inan
cial
st
atem
ents
aud
it in
clud
es a
n as
sess
men
t and
test
ing
of th
e A
utho
rity’
s or
gani
satio
nal c
ontro
l env
ironm
ent,
incl
udin
g th
e A
utho
rity’
s fin
anci
al
man
agem
ent a
nd g
over
nanc
e ar
rang
emen
ts, m
any
aspe
cts
of w
hich
are
rele
vant
to o
ur V
FM a
udit
resp
onsi
bilit
ies.
We
have
alw
ays
soug
ht to
avo
id d
uplic
atio
n of
aud
it ef
fort
by in
tegr
atin
g ou
r fin
anci
al s
tate
men
ts a
nd V
FM w
ork,
and
this
will
con
tinue
. We
will
th
eref
ore
draw
upo
n re
leva
nt a
spec
ts o
f our
fina
ncia
l sta
tem
ents
aud
it w
ork
to in
form
the
VFM
aud
it.
Iden
tific
atio
n of
sign
ifica
nt ri
sks
The
Cod
e id
entif
ies
a m
atte
r as
sign
ifica
nt ‘i
f, in
the
audi
tor’s
pro
fess
iona
l vie
w, i
t is
reas
onab
le to
con
clud
e th
at th
e m
atte
r wou
ld b
e of
inte
rest
to th
e au
dite
d bo
dy o
r the
wid
er p
ublic
. Sig
nific
ance
has
bot
h qu
alita
tive
and
quan
titat
ive
aspe
cts.
’
If w
e id
entif
y si
gnifi
cant
VFM
risk
s, th
en w
e w
ill h
ighl
ight
the
risk
to th
e A
utho
rity
and
cons
ider
the
mos
t app
ropr
iate
aud
it re
spon
se in
eac
h ca
se,
incl
udin
g:
■C
onsi
derin
g t h
e re
sults
of w
ork
by th
e A
utho
rity,
insp
ecto
rate
s an
d ot
her r
evie
w a
genc
ies;
and
■C
arry
ing
out l
ocal
risk
-bas
ed w
ork
to fo
rm a
vie
w o
n th
e ad
equa
cy o
f the
Aut
horit
y’s
arra
ngem
ents
for s
ecur
ing
econ
omy,
effi
cien
cy a
nd
effe
ctiv
enes
s in
its
use
of re
sour
ces.
32
8©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Valu
e fo
r mon
ey a
rran
gem
ents
wor
k (c
ont.)
£
VFM
aud
it st
age
Aud
it ap
proa
ch
Ass
essm
ent o
f wor
k by
oth
er
revi
ew a
genc
ies
and
Del
iver
y of
loca
l ris
k ba
sed
wor
k
Dep
endi
ng o
n th
e na
ture
of t
he s
igni
fican
t VFM
risk
iden
tifie
d, w
e m
ay b
e ab
le to
dra
w o
n th
e w
ork
of o
ther
insp
ecto
rate
s, re
view
age
ncie
s an
d ot
her
rele
vant
bod
ies
to p
rovi
de u
s w
ith th
e ne
cess
ary
evid
ence
to re
ach
our c
oncl
usio
n on
the
risk.
If su
ch e
vide
nce
is n
ot a
vaila
ble,
we
will
inst
ead
need
to c
onsi
der w
hat a
dditi
onal
wor
k w
e w
ill b
e re
quire
d to
und
erta
ke to
sat
isfy
our
selv
es th
at w
e ha
ve re
ason
able
evi
denc
e to
sup
port
the
conc
lusi
on th
at w
e w
ill d
raw
. Suc
h w
ork
may
incl
ude:
■M
eetin
g w
ith s
enio
r man
ager
s ac
ross
the
Aut
horit
y;
■R
evie
w o
f min
utes
and
inte
rnal
repo
rts;
■E
xam
inat
ion
of fi
nanc
ial m
odel
s fo
r rea
sona
blen
ess,
usi
ng o
ur o
wn
expe
rienc
e an
d be
nchm
arki
ng d
ata
from
with
in a
nd w
ithou
t the
sec
tor.
Con
clud
ing
on V
FM
arra
ngem
ents
At t
he c
oncl
usio
n of
the
VFM
aud
it w
e w
ill c
onsi
der t
he re
sults
of t
he w
ork
unde
rtake
n an
d as
sess
the
assu
ranc
e ob
tain
ed a
gain
stea
ch o
f the
VFM
th
emes
rega
rdin
g th
e ad
equa
cy o
f the
Aut
horit
y’s
arra
ngem
ents
for s
ecur
ing
econ
omy,
effi
cien
cy a
nd e
ffect
iven
ess
in th
e us
e of
reso
urce
s.
If an
y is
sues
are
iden
tifie
d th
at m
ay b
e si
gnifi
cant
to th
is a
sses
smen
t, an
d in
par
ticul
ar if
ther
e ar
e is
sues
that
indi
cate
we
may
nee
d to
con
side
r qu
alify
ing
our V
FM c
oncl
usio
n, w
e w
ill d
iscu
ss th
ese
with
man
agem
ent a
s so
on a
s po
ssib
le. S
uch
issu
es w
ill a
lso
be c
onsi
dere
dm
ore
wid
ely
as p
art
of K
PM
G’s
qua
lity
cont
rol p
roce
sses
, to
help
ens
ure
the
cons
iste
ncy
of a
udito
rs’ d
ecis
ions
.
Rep
ortin
gW
e ar
e in
the
proc
ess
of c
ompl
etin
g ou
r ini
tial V
FM ri
sk a
sses
smen
t and
hav
e no
t (at
this
sta
ge) i
dent
ified
any
sig
nific
ant V
FM ri
sks.
We
will
upd
ate
our a
sses
smen
t thr
ough
out t
he y
ear s
houl
d an
y is
sues
pre
sent
them
selv
es a
nd re
port
agai
nst t
hese
in o
ur u
pdat
e re
ports
to th
e Fi
re A
utho
rity
and
the
Gov
erna
nce,
Aud
it an
d S
crut
iny
Com
mitt
ee a
nd in
the
ISA
260
repo
rt.
We
will
repo
rt on
the
resu
lts o
f the
VFM
aud
it th
roug
h ou
r IS
A 2
60 R
epor
t. Th
is w
ill s
umm
aris
e an
y sp
ecifi
c m
atte
rs a
risin
g, a
ndth
e ba
sis
for o
ur
over
all c
oncl
usio
n.
If co
nsid
ered
app
ropr
iate
, we
may
pro
duce
a s
epar
ate
repo
rt on
the
VFM
aud
it, e
ither
ove
rall
or fo
r any
spe
cific
revi
ews
that
we
may
und
erta
ke.
The
key
outp
ut fr
om th
e w
ork
will
be
the
VFM
con
clus
ion
(i.e.
our
opi
nion
on
the
Aut
horit
y’s
arra
ngem
ents
for s
ecur
ing
VFM
), w
hich
form
s pa
rt of
our
au
dit r
epor
t.
33
9©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Oth
er m
atte
rs
Who
le o
f gov
ernm
ent a
ccou
nts
(WG
A)
We
are
requ
ired
to re
view
you
r WG
A c
onso
lidat
ion
and
unde
rtake
the
wor
k sp
ecifi
ed u
nder
th
e ap
proa
ch th
at is
agr
eed
with
HM
Tre
asur
y an
d th
e N
atio
nal A
udit
Offi
ce. D
eadl
ines
for
prod
uctio
n of
the
pack
and
the
spec
ified
app
roac
h fo
r 201
5/16
hav
e no
t yet
bee
n co
nfirm
ed.
Elec
tor c
halle
nge
The
Loca
l Aud
it an
d A
ccou
ntab
ility
Act
201
4 gi
ves
elec
tors
cer
tain
righ
ts. T
hese
are
:
■Th
e rig
ht to
insp
ect t
he a
ccou
nts;
■Th
e rig
ht to
ask
the
audi
tor q
uest
ions
abo
ut th
e ac
coun
ts; a
nd
■Th
e rig
ht to
obj
ect t
o th
e ac
coun
ts.
As
a re
sult
of th
ese
right
s, in
par
ticul
ar th
e rig
ht to
obj
ect t
o th
e ac
coun
ts, w
e m
ay n
eed
to
unde
rtake
add
ition
al w
ork
to fo
rm o
ur d
ecis
ion
on th
e el
ecto
r's o
bjec
tion.
The
add
ition
al
wor
k co
uld
rang
e fro
m a
sm
all p
iece
of w
ork,
whe
re w
e in
terv
iew
an
offic
er a
nd re
view
ev
iden
ce to
form
our
dec
isio
n, to
a m
ore
deta
iled
piec
e of
wor
k, w
here
we
have
to
inte
rvie
w a
rang
e of
offi
cers
, rev
iew
sig
nific
ant a
mou
nts
of e
vide
nce
and
seek
lega
l re
pres
enta
tions
on
the
issu
es ra
ised
.
The
cost
s in
curr
ed in
resp
ondi
ng to
spe
cific
que
stio
ns o
r obj
ectio
ns ra
ised
by
elec
tors
is
not p
art o
f the
fee.
Thi
s w
ork
will
be
char
ged
in a
ccor
danc
e w
ith th
e P
SA
A's
fee
scal
es.
Our
aud
it te
am
Our
aud
it te
am w
ill b
e le
d by
Joh
n P
rent
ice
who
has
bee
n in
volv
ed w
ith y
our a
udit
for 2
ye
ars
and
incl
udes
Jac
kie
Rae
who
has
wor
ked
with
you
for 5
yea
rs w
hich
giv
es y
ou
cont
inui
ty. A
ppen
dix
2 pr
ovid
es m
ore
deta
ils o
n sp
ecifi
c ro
les
and
cont
act d
etai
ls o
f the
te
am.
Rep
ortin
g an
d co
mm
unic
atio
n
Rep
ortin
g is
a k
ey p
art o
f the
aud
it pr
oces
s, n
ot o
nly
in c
omm
unic
atin
g th
e au
dit f
indi
ngs
for t
he y
ear,
but a
lso
in e
nsur
ing
the
audi
t tea
m a
re a
ccou
ntab
le to
you
in a
ddre
ssin
g th
e is
sues
iden
tifie
d as
par
t of t
he a
udit
stra
tegy
. Thr
ough
out t
he y
ear w
e w
ill c
omm
unic
ate
with
you
thro
ugh
mee
tings
with
the
finan
ce te
am, t
he G
over
nanc
e, A
udit
and
Scr
utin
y C
omm
ittee
and
the
Fire
Aut
horit
y.
Our
com
mun
icat
ion
outp
uts
are
incl
uded
in A
ppen
dix
1. T
his
appe
ndix
als
o de
tails
our
pl
anne
d at
tend
ance
at G
over
nanc
e, A
udit
and
Scr
utin
y C
omm
ittee
and
the
Fire
Aut
horit
y.
Inde
pend
ence
and
Obj
ectiv
ity
Aud
itors
are
als
o re
quire
d to
be
inde
pend
ent a
nd o
bjec
tive.
App
endi
x 3
prov
ides
mor
e de
tails
of o
ur c
onfir
mat
ion
of in
depe
nden
ce a
nd o
bjec
tivity
.
Aud
it fe
e
Our
Aud
it Fe
e Le
tter 2
015/
2016
pre
sent
ed to
you
in A
pril
2015
firs
t set
out
our
fees
for t
he
2015
/16
audi
t. Th
is le
tter a
lso
sets
out
our
ass
umpt
ions
. We
have
not
con
side
red
it ne
cess
ary
to m
ake
any
chan
ges
to th
e ag
reed
fees
at t
his
stag
e.
The
plan
ned
audi
t fee
for 2
015/
16 is
£31
,897
. Thi
s is
a re
duct
ion
in a
udit
fee,
com
pare
dto
201
4/20
15, o
f £10
,632
(25%
) as
dete
rmin
ed n
atio
nally
by
the
Aud
it C
omm
issi
on a
nd
conf
irmed
by
Pub
lic S
ecto
r Aud
it A
ppoi
ntm
ents
Lim
ited.
Our
aud
it fe
e in
clud
es o
ur w
ork
on th
e V
FM c
oncl
usio
n an
d ou
r aud
it of
the
Aut
horit
y’s
finan
cial
sta
tem
ents
.
34
10©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Appe
ndix
1: K
ey e
lem
ents
of o
ur fi
nanc
ial s
tate
men
ts a
udit
appr
oach
Driv
ing
mor
e va
lue
from
the
audi
t thr
ough
dat
a an
d an
alyt
ics
Tech
nolo
gy is
em
bedd
ed th
roug
hout
our
aud
it ap
proa
ch
to d
eliv
er a
hig
h qu
ality
aud
it op
inio
n. U
se o
f Dat
a an
d A
naly
tics
(D&
A) t
o an
alys
e la
rge
popu
latio
ns o
f tra
nsac
tions
in o
rder
to id
entif
y ke
y ar
eas
for o
ur a
udit
focu
s is
just
one
ele
men
t. W
e st
rive
to d
eliv
er n
ew
qual
ity in
sigh
t int
o yo
ur o
pera
tions
that
enh
ance
s ou
r an
d yo
ur p
repa
redn
ess
and
impr
oves
you
r col
lect
ive
‘bus
ines
s in
telli
genc
e.’ D
ata
and
Ana
lytic
s al
low
s us
to:
■O
btai
n gr
eate
r und
erst
andi
ng o
f you
r pro
cess
es, t
o au
tom
atic
ally
ext
ract
con
trol c
onfig
urat
ions
and
to
obta
in h
ighe
r lev
els
assu
ranc
e.■
Focu
s m
anua
l pro
cedu
res
on k
ey a
reas
of r
isk
and
on tr
ansa
ctio
nal e
xcep
tions
.■
Iden
tify
data
pat
tern
s an
d th
e ro
ot c
ause
of i
ssue
s to
i n
crea
se fo
rwar
d-lo
okin
g in
sigh
t.W
e an
ticip
ate
usin
g da
ta a
nd a
naly
tics
in o
ur w
ork
arou
nd k
ey a
reas
suc
h as
jour
nals
. We
also
exp
ect t
o pr
ovid
e in
sigh
ts fr
om o
ur a
naly
sis
of th
ese
tranc
hes
of
data
in o
ur re
porti
ng to
add
furth
er v
alue
from
our
aud
it.
Com
plet
ion
Plan
ning
Con
trol
eva
luat
ion
Subs
tant
ive
test
ing
Communication Audit workflow
Con
tinuo
us c
omm
unic
atio
n in
volv
ing
regu
lar m
eetin
gs b
etw
een
Gov
erna
nce,
Aud
it an
d Sc
rutin
y C
omm
ittee
, the
Fire
Au
thor
ity, S
enio
r Man
agem
ent a
nd a
udit
team
Initi
al p
lann
ing
mee
tings
and
risk
as
sess
men
t
Aud
it st
rate
gy
and
plan
Ann
ual A
udit
Lette
rIn
terim
repo
rt (if
requ
ired)
ISA
260
(UK
&I)
Rep
ort
Inte
rim a
udit
Yea
r end
aud
it of
fina
ncia
l st
atem
ents
and
an
nual
repo
rt
Sig
n au
dit
opin
ion
■P
erfo
rm ri
sk
asse
ssm
ent
proc
edur
es
and
iden
tify
risks
■D
eter
min
e au
dit s
trate
gy
■D
eter
min
e pl
anne
d au
dit
appr
oach
■U
nder
stan
d ac
coun
ting
and
repo
rting
act
iviti
es
■E
valu
ate
desi
gn a
nd
impl
emen
tatio
n of
se
lect
ed c
ontro
ls
■Te
st o
pera
ting
effe
ctiv
enes
s of
sel
ecte
d co
ntro
ls
■A
sses
s co
ntro
l ris
k an
d ris
k of
the
acco
unts
be
ing
mis
stat
ed
■P
lan
subs
tant
ive
proc
edur
es
■P
erfo
rm s
ubst
antiv
e pr
oced
ures
■C
onsi
der i
f aud
it ev
iden
ce is
su
ffici
ent a
nd a
ppro
pria
te
■P
erfo
rm c
ompl
etio
n pr
oced
ures
■P
erfo
rm o
vera
ll ev
alua
tion
■Fo
rm a
n au
dit o
pini
on
■Fi
re A
utho
rity
and
Gov
erna
nce,
Aud
it an
d S
crut
iny
Com
mitt
ee
repo
rting
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
D&
AEN
ABLE
DAU
DIT
M
ETH
OD
OLO
GY
35
11©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Appe
ndix
1: K
ey e
lem
ents
of o
ur fi
nanc
ial s
tate
men
ts a
udit
appr
oach
Atte
ndan
ce a
t Aut
horit
y an
d G
over
nanc
e A
udit
and
Scru
tiny
Com
mitt
ee m
eetin
gs
We
have
iden
tifie
d th
at th
e Fi
re A
utho
rity
are
thos
e ch
arge
d w
ith g
over
nanc
e bu
t rec
ogni
se th
at th
e G
over
nanc
e A
udit
and
Scr
utin
y C
omm
ittee
(GA
S) i
s al
so a
n im
porta
nt c
omm
ittee
w
hich
we
shou
ld a
lso
atte
nd a
t tim
es th
roug
hout
the
year
.
Our
aud
it fe
e do
es n
ot p
erm
it at
tend
ance
at a
ll sc
hedu
led
mee
tings
in th
e ye
ar.
We
have
revi
ewed
the
likel
y co
vera
ge o
f eac
h m
eetin
g an
d pl
an to
atte
nd, a
s a
min
imum
, tho
se d
etai
led
in th
e ta
ble
belo
w. W
e w
ill re
view
this
tim
etab
le th
roug
hout
the
year
in
conj
unct
ion
with
the
Exe
cutiv
e D
irect
or o
f Ser
vice
Sup
port/
s151
Offi
cer a
nd a
gree
any
am
endm
ents
and
the
impl
icat
ions
on
the
audi
t fee
as
deta
iled
on p
age
9.
Dat
eM
eetin
gK
ey F
ire A
utho
rity
pape
rsEx
tern
al a
udit
pape
rs a
nd a
ttend
ance
1Fe
brua
ry 2
016
GA
SE
xter
nal A
udit
Pla
n
15 F
ebru
ary
2016
Fire
Aut
horit
yE
xter
nal A
udit
Pla
n
7 M
arch
201
6G
AS
18 M
arch
201
6Fi
re A
utho
rity
11 A
pril
2016
GA
SIn
terim
repo
rt if
nece
ssar
y
25 A
pril
2016
Fire
Aut
horit
yIn
terim
repo
rt if
nece
ssar
y
6 Ju
ne 2
016
Fire
Aut
horit
y –
Ann
ualG
ener
al m
eetin
g
17 J
une
2016
(exp
ecte
d)G
AS
Dra
ft ac
coun
tsA
udit
prog
ress
–at
tend
as
draf
t acc
ount
s on
age
nda
27 J
une
2016
(exp
ecte
d)Fi
re A
utho
rity
Dra
ft ac
coun
tsA
udit
prog
ress
–at
tend
as
draf
t acc
ount
s on
age
nda
18 J
uly
2016
(exp
ecte
d)G
AS
App
rove
fina
l acc
ount
sIS
A 2
60 re
port
29 J
uly
2016
(exp
ecte
d)Fi
re A
utho
rity
App
rove
fina
l acc
ount
sIS
A 2
60 re
port
Sept
embe
r 201
6G
AS
Sept
embe
r 201
6Fi
re A
utho
rity
Oct
ober
201
6G
AS
Ann
ual a
udit
lette
r
Oct
ober
201
6Fi
re A
utho
rity
Ann
ual a
udit
lette
r
Dec
embe
r 201
6G
AS
Atte
nd a
s pa
rt of
aud
it pl
anni
ng p
roce
ss
Dec
embe
r 201
6Fi
re A
utho
rity
Atte
nd a
s pa
rt of
aud
it pl
anni
ng p
roce
ss
36
12©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Appe
ndix
2: A
udit
team
Your
aud
it te
am h
as b
een
draw
n fr
om o
ur s
peci
alis
t pub
lic s
ecto
r ass
uran
ce d
epar
tmen
t. O
ur a
udit
team
wer
e al
l par
t of t
he F
ire A
utho
rity
audi
t las
t yea
r. Je
ssic
a D
unn
is
taki
ng o
n th
e in
char
ge ro
le fr
om M
atth
ew M
oore
from
this
yea
r.
Nam
eJo
hn P
rent
ice
Posi
tion
Dire
ctor
‘My
role
is to
lead
our
team
and
ens
ure
the
deliv
ery
of a
hig
h qu
ality
, val
ued
adde
d ex
tern
al a
udit
opin
ion.
I will
be
the
mai
n po
int o
f con
tact
for t
he F
ire
Aut
horit
y an
d C
hief
Fire
Offi
cer/C
hief
Exe
cutiv
e.’
John
Pre
ntic
eD
irect
or
0113
231
393
5jo
hn.p
rent
ice@
kpm
g.co
.uk
Nam
eJa
ckie
Rae
Posi
tion
Man
ager
‘I pr
ovid
e qu
ality
ass
uran
ce fo
r the
aud
it w
ork
and
spec
ifica
lly a
ny te
chni
cal a
ccou
ntin
g an
d ris
k ar
eas.
I will
wor
k cl
osel
y w
ith th
e D
irect
or to
ens
ure
we
add
valu
e.
I will
liai
se w
ith th
e E
xecu
tive
Dire
ctor
of S
ervi
ce
Sup
port/
s151
Offi
cer a
nd o
ther
Exe
cutiv
e D
irect
ors.
’
Jack
ie R
aeM
anag
er
0113
231
364
3
jack
ie.ra
e@kp
mg.
co.u
k
Nam
eJe
ssic
a D
unn
Posi
tion
Aud
it A
ssis
tant
‘I w
ill b
e re
spon
sibl
e fo
r the
on-
site
del
iver
y of
our
w
ork
and
will
sup
ervi
se th
e w
ork
of o
ur a
udit
assi
stan
ts.’
Jess
ica
Dun
nA
udit
Ass
ista
nt
0113
231
474
3
Jess
ica.
dunn
@kp
mg.
co.u
k
37
13©
201
6 KP
MG
LLP
, a U
K lim
ited
liabi
lity
partn
ersh
ip a
nd a
mem
ber
firm
of t
he K
PMG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KPM
G In
tern
atio
nal C
oope
rativ
e (“
KPM
G In
tern
atio
nal”)
, a S
wis
s en
tity.
All
right
s re
serv
ed.
Appe
ndix
3: I
ndep
ende
nce
and
obje
ctiv
ity r
equi
rem
ents
Inde
pend
ence
and
obj
ectiv
ity
Pro
fess
iona
l sta
ndar
ds re
quire
aud
itors
to c
omm
unic
ate
to th
ose
char
ged
with
gov
erna
nce,
at
leas
t ann
ually
, all
rela
tions
hips
that
may
bea
r on
the
firm
’s in
depe
nden
ce a
nd th
e ob
ject
ivity
of t
he a
udit
enga
gem
ent p
artn
er a
nd a
udit
staf
f. Th
e st
anda
rds
also
pla
ce
requ
irem
ents
on
audi
tors
in re
latio
n to
inte
grity
, obj
ectiv
ity a
nd in
depe
nden
ce.
The
stan
dard
s de
fine
‘thos
e ch
arge
d w
ith g
over
nanc
e’ a
s ‘th
ose
pers
ons
entru
sted
with
the
supe
rvis
ion,
con
trol a
nd d
irect
ion
of a
n en
tity’
. In
your
cas
e th
is is
the
Fire
Aut
horit
y.
KP
MG
LLP
is c
omm
itted
to b
eing
and
bei
ng s
een
to b
e in
depe
nden
t. A
PB
Eth
ical
Sta
ndar
d 1
Inte
grity
, Obj
ectiv
ity a
nd In
depe
nden
ce re
quire
s us
to c
omm
unic
ate
to y
ou in
writ
ing
all
sign
ifica
nt fa
cts
and
mat
ters
, inc
ludi
ng th
ose
rela
ted
to th
e pr
ovis
ion
of n
on-a
udit
serv
ices
an
d th
e sa
fegu
ards
put
in p
lace
whi
ch, i
n ou
r pro
fess
iona
l jud
gem
ent,
may
reas
onab
ly b
e th
ough
t to
bear
on
KP
MG
LLP
’s in
depe
nden
ce a
nd th
e ob
ject
ivity
of t
he E
ngag
emen
t Lea
d an
d th
e au
dit t
eam
.
Furth
er to
this
aud
itors
are
requ
ired
by th
e N
atio
nal A
udit
Offi
ce’s
Cod
e of
Aud
it Pr
actic
e to
:
■C
arry
out
thei
r wor
k w
ith in
tegr
ity, i
ndep
ende
nce
and
obje
ctiv
ity;
■B
e tra
nspa
rent
and
repo
rt pu
blic
ly a
s re
quire
d;
■B
e pr
ofes
sion
al a
nd p
ropo
rtion
al in
con
duct
ing
wor
k;
■B
e m
indf
ul o
f the
act
iviti
es o
f ins
pect
orat
es to
pre
vent
dup
licat
ion;
■Ta
ke a
con
stru
ctiv
e an
d po
sitiv
e ap
proa
ch to
thei
r wor
k;
■C
ompl
y w
ith d
ata
stat
utor
y an
d ot
her r
elev
ant r
equi
rem
ents
rela
ting
to th
e se
curit
y,
trans
fer,
hold
ing,
dis
clos
ure
and
disp
osal
of i
nfor
mat
ion.
PS
AA
’s T
erm
s of
App
oint
men
t inc
lude
s se
vera
l ref
eren
ces
to a
rran
gem
ents
des
igne
d to
su
ppor
t and
rein
forc
e th
e re
quire
men
ts re
latin
g to
inde
pend
ence
, whi
ch a
udito
rs m
ust
com
ply
with
. The
se a
re a
s fo
llow
s:
■A
udito
rs a
nd s
enio
r mem
bers
of t
heir
staf
f who
are
dire
ctly
invo
lved
in th
e m
anag
emen
t, su
perv
isio
n or
del
iver
y of
PS
AA
aud
it w
ork
shou
ld n
ot ta
ke p
art i
n po
litic
al a
ctiv
ity.
■N
o m
embe
r or e
mpl
oyee
of t
he fi
rm s
houl
d ac
cept
or h
old
an a
ppoi
ntm
ent a
s a
mem
ber o
f an
audi
ted
body
who
se a
udito
r is,
or i
s pr
opos
ed to
be,
from
the
sam
e fir
m.
In a
dditi
on, n
o m
embe
r or e
mpl
oyee
of t
he fi
rm s
houl
d ac
cept
or h
old
such
ap
poin
tmen
ts a
t rel
ated
bod
ies,
suc
h as
thos
e lin
ked
to th
e au
dite
d bo
dy th
roug
h a
stra
tegi
c pa
rtner
ship
.
■A
udito
rs a
nd th
eir s
taff
shou
ld n
ot b
e em
ploy
ed in
any
cap
acity
(whe
ther
pai
d or
un
paid
) by
an a
udite
d bo
dy o
r oth
er o
rgan
isat
ion
prov
idin
g se
rvic
es to
an
audi
ted
body
w
hils
t bei
ng e
mpl
oyed
by
the
firm
.
■A
udito
rs a
ppoi
nted
by
the
PS
AA
sho
uld
not a
ccep
t eng
agem
ents
whi
ch in
volv
e co
mm
entin
g on
the
perfo
rman
ce o
f oth
er P
SA
A a
udito
rs o
n P
SA
A w
ork
with
out f
irst
cons
ultin
g P
SA
A.
■A
udito
rs a
re e
xpec
ted
to c
ompl
y w
ith th
e Te
rms
of A
ppoi
ntm
ent p
olic
y fo
r the
E
ngag
emen
t Lea
d to
be
chan
ged
on a
per
iodi
c ba
sis.
■A
udit
supp
liers
are
requ
ired
to o
btai
n th
e P
SA
A’s
writ
ten
appr
oval
prio
r to
chan
ging
any
E
ngag
emen
t Lea
d in
resp
ect o
f eac
h au
dite
d bo
dy.
■C
erta
in o
ther
sta
ff ch
ange
s or
app
oint
men
ts re
quire
pos
itive
act
ion
to b
e ta
ken
by
Firm
s as
set
out
in th
e Te
rms
of A
ppoi
ntm
ent.
Con
firm
atio
n st
atem
ent
We
conf
irm th
at a
s of
1 F
ebru
ary
2016
in o
ur p
rofe
ssio
nal j
udge
men
t, K
PM
G L
LP is
in
depe
nden
t with
in th
e m
eani
ng o
f reg
ulat
ory
and
prof
essi
onal
requ
irem
ents
and
the
obje
ctiv
ity o
f the
Eng
agem
ent L
ead
and
audi
t tea
m is
not
impa
ired.
38
© 2
016
KP
MG
LLP
, a U
K li
mite
d lia
bilit
y pa
rtner
ship
and
a m
embe
r firm
of t
he
KP
MG
net
wor
k of
inde
pend
ent m
embe
r firm
s af
filia
ted
with
KP
MG
In
tern
atio
nal C
oope
rativ
e (“
KP
MG
Inte
rnat
iona
l”), a
Sw
iss
entit
y. A
ll rig
hts
rese
rved
.
The
KP
MG
nam
e, lo
go a
nd “c
uttin
g th
roug
h co
mpl
exity
” are
regi
ster
ed
trade
mar
ks o
r tra
dem
arks
of K
PM
G In
tern
atio
nal.
Pro
duce
d by
Cre
ate
Gra
phic
s/D
ocum
ent n
umbe
r: C
RT0
5355
0A
This
repo
rt is
add
ress
ed to
the
Aut
horit
y an
d ha
s be
en p
repa
red
for t
he s
ole
use
of th
e A
utho
rity.
We
take
no
resp
onsi
bilit
y to
any
mem
ber o
f sta
ff ac
ting
in th
eir i
ndiv
idua
l cap
aciti
es, o
r to
third
par
ties.
We
draw
you
r atte
ntio
n to
the
Sta
tem
ent o
f Res
pons
ibili
ties
of a
udito
rs a
nd a
udite
d bo
dies
, whi
ch is
av
aila
ble
on P
ublic
Sec
tor A
udit
App
oint
men
t’s w
ebsi
te (w
ww
.psa
a.co
.uk)
.
Ext
erna
l aud
itors
do
not a
ct a
s a
subs
titut
e fo
r the
aud
ited
body
’s o
wn
resp
onsi
bilit
y fo
r put
ting
in p
lace
pr
oper
arr
ange
men
ts to
ens
ure
that
pub
lic b
usin
ess
is c
ondu
cted
in a
ccor
danc
e w
ith th
e la
w a
nd
prop
er s
tand
ards
, and
that
pub
lic m
oney
is s
afeg
uard
ed a
nd p
rope
rly a
ccou
nted
for,
and
used
ec
onom
ical
ly, e
ffici
ently
and
effe
ctiv
ely.
We
are
com
mitt
ed to
pro
vidi
ng y
ou w
ith a
hig
h qu
ality
ser
vice
. If y
ou h
ave
any
conc
erns
or a
re
diss
atis
fied
with
any
par
t of K
PM
G’s
wor
k, in
the
first
inst
ance
you
sho
uld
cont
act J
ohn
Pre
ntic
e, th
e en
gage
men
t lea
d to
the
Aut
horit
y, w
ho w
ill tr
y to
reso
lve
your
com
plai
nt. I
f you
are
dis
satis
fied
with
yo
ur re
spon
se p
leas
e co
ntac
t the
nat
iona
l lea
d pa
rtner
for a
ll of
KP
MG
’s w
ork
unde
r our
con
tract
with
P
ublic
Sec
tor A
udit
App
oint
men
ts L
imite
d, A
ndre
w S
ayer
s, b
y em
ail t
o A
ndre
w.S
ayer
s@kp
mg.
co.u
kA
fter t
his,
if y
ou a
re s
till d
issa
tisfie
d w
ith h
ow y
our c
ompl
aint
has
bee
n ha
ndle
d yo
u ca
n ac
cess
P
SA
A’s
com
plai
nts
proc
edur
e by
em
ailin
g ge
nera
lenq
uirie
s@ps
aa.c
o.uk
by te
leph
onin
g 02
0 70
72
7445
or b
y w
ritin
g to
Pub
lic S
ecto
r Aud
it A
ppoi
ntm
ents
Lim
ited,
3rd
Flo
or, L
ocal
Gov
ernm
ent H
ouse
, S
mith
Squ
are,
Lon
don,
SW
1P 3
HZ.
39
40