Nottinghamshire Fire and Rescue Service
Financial Regulations

4. Risk Management and Control of Resources

  1. Risk Management and Control of Resources

    1. Introduction

      1. It is essential that robust, integrated systems are developed and maintained for identifying and evaluating all significant operational risks to NFRS. This should include the proactive participation of all those associated with planning and delivering services.

    2. Risk management

      1. Risk management is designed to protect NFRS assets, ensure service continuity and facilitate innovation and opportunity. The risk management approach encourages officers and managers to identify, understand and control risk.
      2. NFRS maintains a Corporate Risk Register capturing the most significant risks.
      3. Risk management is integrated in the planning process as part of direction setting, activity and resource planning.
      4. The risk management process involves the identification, assessment and recording of risks and mitigating activities which are then incorporated into the CRMP and Annual Delivery Plans. Additionally, as part of the risk management process, appropriate insurance arrangements are put in place to off-set any exposure to liability.
      5. The Area Manager Strategic Support is responsible for preparing and promoting the Risk Management Strategy and developing risk management controls in conjunction with the Principal Officers and Area Managers and having due regard to advice from the Head of Finance and Treasurer.
      6. The Fire Authority is then responsible for approving the risk management strategy and review the effectiveness of the Authorities risk management.
      7. While the monitoring of risks is undertaken at Service level having due regard to advice from the Head of Finance and Treasurer or other specialists (e.g. Health and Safety).
      8. The Finance and Resources Committee having delegated responsibility to monitor the Corporate Risk Register to ensure that corporate risks are effectively managed.

      9. Insurance

      10. The general policy on insurance should be agreed by the Fire Authority, while the Head of Finance and Treasurer is responsible for securing insurance arrangements in accordance with the policy as laid down by the Fire Authority.
      11. The Head of Finance and Treasurer must advise the Fire Authority on appropriate insurance arrangements for the following:
        • Fire Authority employees
        • Fire Authority members
        • Buildings
        • Liabilities
        • Vehicles and other assets
        • All other risks
      12. The Head of Finance and Treasurer has the responsibility for the arrangement of insurance within the authority. While Principal Officers and Area Managers are required to notify the Head of Finance and Treasurer of all new risks and assets that require to be insured, including any service alterations that affecting existing insurance.

    3. Internal control

      1. Internal control refers to the systems of control devised by management to help ensure the Authority’s objectives are achieved in a way that promotes economical, efficient and effective use of resources and that the authority’s assets and interests are safeguarded.
      2. Head of Finance and Treasurer is responsible for advising on effective systems of internal control. These arrangements need to ensure compliance with all applicable statutes and regulations, and other relevant statements of best practice. They should ensure that public funds are properly safeguarded and used economically, efficiently, and in accordance with the statutory and other authorities that govern their use.
      3. It is the responsibility of Principal Officers and Area Managers to ensure that sound arrangements – in line with advice from the Treasurer – are in place for planning, appraising, authorising and controlling their operations in order to achieve continuous improvement, economy, efficiency and effectiveness and for achieving their financial performance targets.
      4. To comply with the Accounts and Audit Regulations 2015 require NFRS to conduct an annual review on the effectiveness of its system of internal control and to include an approved Annual Governance Statement prepared in accordance with proper practices, with its statement of accounts.
      5. The Finance and Resources Committee shall act as the audit committee on behalf of the Authority by ensuring that an effective internal control environment is maintained.

    4. Internal Audit Requirements

      1. Internal Audit is an independent and objective appraisal function for reviewing the Authority’s systems of internal control. It examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources in accordance with CIPFA’s Code of Practice for Internal Audit in Local Government in the UK.
      2. Effective Internal Audit positively promotes a culture of sound financial discipline and control as requirements of the Authority This is achieved by identifying and reporting on areas with control deficiencies and raising control options available to mitigate the risk.
      3. Internal Audit shall be appointed by the Finance and Resources Committee in consultation with the Head of Finance and Treasurer. In appointing internal audit the Committee shall have regard for any relevant guidelines and audit standards issued by CIPFA.
      4. Cases of suspected fraud, misappropriation of money, materials or equipment, or any mismanagement of money or other assets, or any other irregularities, must be reported immediately to the Head of Finance and Treasurer, who will investigate and report to the Chief Fire Officer, who in turn will consult with the Solicitor and Clerk and consider any appropriate legal proceedings and disciplinary action.
      5. Internal Audit have the authority to:
        • Enter the premises or land used by the Fire Authority at any time
        • Have access to all correspondence, documents, books or other records of the Fire Authority and the Fire Authority’s employees.
        • To require any explanation from Members or Employees of the Authority considered necessary to establish the correctness of any matter under examination.
        • To require any employee of the Fire Authority to produce cash, stores or other Fire Authority property under his/her control
        • To report independently of the Head of Finance and Treasurer, to the Finance and Resources Committee and/or Fire Authority if deemed appropriate.
      6. The Treasurer may investigate and report on any matter he/she believes involves or may involve irregularities concerning cash, stores or other property of the Fire Authority or any suspected irregularity in the exercise of the functions of the Fire Authority.

    5. External Audit

      1. NFRS is required to have its annual Statement of Accounts scrutinised by external auditors, the auditors are required to satisfy themselves that the Accounts give a ‘true and fair’ view of the financial position and are compliant with the relevant financial standards.
      2. Officers are required to ensure that records and systems are up to date and made available to external audit in a timely manner as considered necessary for the purposes of their work.
      3. The Head of Finance and Treasurer is required to ensure external auditors are given access at all reasonable times to premises, personnel, documents and assets that the external auditors consider necessary for the purposes of their work.
      4. The Head of Finance and Treasury is required to consider, in conjunction with Principal Officers and Area Manager (when required) responses to reports, recommendations and management letters issued by external audit.
      5. The Authority may, from time to time, be subject to audit, inspection or investigation by external bodies such as HM Customs and Excise and the Inland Revenue, who have statutory rights of access.

    6. Preventing fraud, corruption and money laundering

      1. Introduction

      2. The Authority is accountable to the public for the actions of all its members, employees and others acting on its behalf, and needs to safeguard against the misuse of the assets and resources held on the public’s behalf. The Authority will not tolerate fraud and corruption in the administration of its duties and responsibilities, whether from inside or from outside the authority.
      3. The Authority’s expectation with regard to propriety and accountability is that Members and staff at all levels undertake their duties with honesty and integrity.
      4. The Authority also expects that individuals and organisations (e.g. suppliers, contractors, and service providers) with which it contracts will act towards the Authority with similar honesty and integrity and without behaviour that constitutes fraud or corruption.
      5. NFRS has a mandatory Counter Fraud, Money Laundering, Corruption and Bribery Policy which all NFRS staff and elected members are required to abide by.

      6. General

      7. The Head of Finance and Treasurer shall develop procedures to deter and detect fraud and corruption while censuring NFRS has a anti-fraud and corruption policy.
      8. Principal Officers and Area Managers are responsible controls are adequate to help prevent and/or detect incidents of fraud or corruption, for addressing key business risks, for ensuring that staff are aware of their responsibilities and comply with the Authority’s counter-fraud and corruption policy, and for creating an environment where all staff feel able to raise any concerns they may have.
      9. The Fire Authority shall establish arrangements for co-operation and joint working with other bodies, including the police, government bodies external audit and other local authorities and shall fully participate in multi agency initiatives aimed at fraud prevention.

    7. Assets

      1. The Chief Fire Officer should ensure that records and assets are properly maintained and securely held (definition of ‘asset’ is within Appendix 3). They should also ensure that contingency plans for the security of assets and continuity of service in the event of disaster or system failure are in place.
      2. Approval of
        • the acquisition of new land, buildings or material assets
        • the writing off redundant stocks and equipment in excess of the value are subject to the thresholds set out in the Financial Scheme of Delegation (Appendix 1):
      3. The disposal of all land, buildings or material assets will be disposed via a competitive route that offers Best Value and be in accordance with the general law at the time of the disposal.
      4. In disposing of any short-term asset (i.e. any asset not on the fixed asset register), managers must ensure that the disposal is in accordance the Asset Disposal Policy and secures value for money / best value.
      5. Members or employees who have a direct or indirect pecuniary interest in the disposal or acquisition of any Authority asset shall declare that interest and shall not be supplied with or given any access to any tender documents, contracts or other information relating thereto, without the express written authority of the Solicitor and Clerk to the Fire Authority.

    8. Treasury management

      1. The Head of Finance and Treasurer is responsible for the arrangements for managing NFRS’s cash flow, its borrowing and lending activities, in accordance with policies and strategies approved by the Fire Authority.
      2. The Head of Finance and Treasurer shall undertake Treasury Management activities in accordance with the CIPFA Code of Practice on Treasury Management in the Public Services.
      3. Before the start of each financial year the Head of Finance and Treasurer will prepare a report on the Treasury Management Strategy for the coming year for approval by the Fire Authority.
      4. The Chief Finance Officer will also report to SLT, Finance and Resource Committee and the Fire Authority on the annual performance of the Treasury Management function following the end of the financial year.
      5. The Head of Finance and Treasurer has delegated responsibility for implementing and monitoring the Treasury Management Policy Statement. All decisions on borrowing, repayment, investment or financing shall be delegated to the Head of Finance and Treasurer (or their Deputy), who is required to act in accordance with CIPFA’s Code of Practice for Treasury Management in Local Authorities.
      6. Borrowing may only be taken out within the Prudential Code limits and will be in the name of the Fire Authority
      7. No bank account opening or amendments will be conducted without the written authorisation of two Principal Officers or other officers as delegated within the bank mandate.

      8. Payments by Direct Debit / Standing Orders

      9. Authorisation is required from the Head of Finance and Treasurer to set up a direct debit. All direct debit mandates are required to be signed in accordance with the bank mandate.
      10. Prior to any standing order being set up it requires authorisation by the Head of Finance and Treasurer.
      11. All direct debit and standing order arrangements are reviewed on an annual basis.

    9. Staffing

      1. The Fire Authority is responsible for determining how officer support for executive and non-executive roles within the Fire Authority will be organised.
      2. The Chief Fire Officer is responsible for providing overall management to staff and for controlling staff numbers by:
        • Advising on the budget required to cover estimated staffing levels.
        • Adjusting staffing level that can be funded within approved budget provision, varying the provision as necessary within that constraint in order to meet changing operating needs.
      3. The Chief Fire Officer or their designate is responsible for determining and monitoring adherence to staffing policies and procedures and for ensuring that there is proper use of the evaluation or other agreed systems for determining the remuneration of a job.
      4. Principal Officers and Area Managers are responsible for controlling total staff numbers by:
        • Not exceeding the annual pay budget set by the Authority unless otherwise approved by the Treasurer and/or the Authority
        • The proper use of appointment procedures in line with advice from the Head of People Services or their designate.
      5. The Chief Fire Officer, in accordance with the Authority’s approved Scheme of Delegations, has responsibility for:
        • Effecting variations in the establishment between uniformed and non-uniformed posts where this is in the best interests of the Service and subject, where necessary, to consultation with representative bodies and to there being no additional resource implications associated with the variation; and
        • Effecting changes in the establishment structure subject to any financial implications being contained from within existing resources and to compliance with the virement thresholds as contained in the Authority’s Financial Regulations.