YO018 Annual Audit Letter

R-Murphy

Sujets

• management
• risk management
• managers

Informations

• Publié par: Usso
• Nombre de lectures: 12
• Langue: English

Extrait

audit 2003/2004


Annual Audit Letter
West Yorkshire Police
Authority
INSIDE THIS LETTER
PAGES 2 – 9
• The purpose of this letter
• Background to our audit
• Key messages
• Audit objectives
• Financial aspects of corporate governance
• Performance management
• Accounts
• Grants
• Conclusion
• Closing remarks
PAGES 10 – 11
Appendices
• Appendix 1 – Reports issued during 2003/04
Audit
• Appendix 2 – Audit fee



















Reference: YO018 Annual Audit Letter
Date: November 2004
audit 2003/2004 ANNUAL AUDIT LETTER
In addition, the first ‘baseline assessment’ of the
force by HMIC, published in April 2004, found
The purpose of this letter that the Authority has a number of challenges to
meet to ensure performance meets and
This annual audit letter to Members summarises continues to maintain standards expected by
the significant issues and conclusions from our government and the communities of West
2003/04 audit, together with our comments on Yorkshire.
other current issues. The letter includes the
work undertaken by both the Audit Commission,
your external auditors for 2003/04, and
PricewaterhouseCoopers (PWC) your new Key messages
external auditors for 2004/05.
More detail can be found in the separate reports
Financial aspects of corporate we have issued this year, listed in Appendix 1
for information. These reports are discussed and governance
agreed with officers and presented to the
Finance and Audit Committee, usually in Financial standing
summary format.
General reserves have increased significantly in
The Audit Commission has circulated to all the last two years to £15.4 million at the end of
audited bodies a statement that summarises the 2003/04, part of which had been planned. This
key responsibilities of auditors. Our audit has position needs to be monitored carefully to
been conducted in accordance with the principles ensure that the resources available are directed
set out in that statement. What we say about to priority service areas. Action is currently
the results of our audit should be viewed in the being taken to ensure revenue underspends and
context of that more formal background. capital slippage are identified quickly and
re-directed to other priority needs. Appendix 2 provides information about the fee
charged for our audit.
Overall arrangements
Your overall corporate governance arrangements
are satisfactory and there are no significant
Background to our audit issues to bring to your attention. The Authority
has recently adopted a Code of Corporate
The significant issues that West Yorkshire Police
Governance to strengthen arrangements further.
Authority has faced during the year and
The recommendations made last year have been
continues to face include:
satisfactorily addressed with the exception of
• managing revenue and capital underspends developing an ‘anti fraud and corruption policy’.
to ensure available resources are used
effectively in delivering priority services; Performance management
• working to the new Operational Framework,
introduced in June 2003, and the NCRS Audit (PWC)
subsequent changes in the Command Team;
The Force demonstrates a clear commitment to
• the roll out of Airwave; NCRS, evident from the significantly improved
• continuing efforts to reduce and investigate results from last year’s audit. There is an
crime and promote public safety; excellent awareness of the importance of NCRS
across the whole Force. Overall the Force • the increase in new recruits, both police
achieved an ‘Amber’ and is keen to improve officers and police support officers; and
further by addressing the recommendations
• increased partnership working. made.


Annual Audit Letter – Audit 2003/2004 West Yorkshire Police Authority – Page 2
audit 2003/2004 ANNUAL AUDIT LETTER
Financial aspects of corporate
Activity Based costing (ABC) audit (PWC)
governance
There are some weaknesses in the systems and
• How well the Authority manages its processes in place that require management
finances. action although these have not materially
affected the accuracy or reliability of the ABC • Whether the Authority has effective
submission for 2003/04. financial systems and internal controls.
• How the Authority ensures that its financial
Risk management
decisions remain within its legal powers.
The Authority and Force have made significant
• How well the Authority works to stop or find
progress in developing risk management
fraud and corruption.
arrangements, including the appointment of a
risk and insurance manager and producing a risk
Performance management management strategy. It is important that risk
management continues to be embedded • Does the Authority have adequate
throughout the Authority and Force. arrangements to ensure the best use of
the resources at its disposal?
Partnerships
Accounts Considerable progress has been made in
monitoring this complex area since last year. • Opinion.
Further work is required to ensure that sound
governance arrangements are in place for all
partnerships the Force and Authority are
involved in. Financial aspects of
corporate governance Accounts
We plan to give an unqualified opinion on the
Financial standing Authority’s accounts before the statutory
deadline of 30 November 2004. The authority General reserves have increased significantly in
has complied with the new requirements for this the last two years to £15.4 million at the end of
year. 2003/04, part of which had been planned. This
position needs to be monitored carefully to
ensure that the resources available are directed
to priority service areas. Action is currently
Audit objectives being taken to ensure revenue underspends and
capital slippage are identified quickly and
Our main objective as your appointed auditor is
re-directed to other priority needs.
to plan and carry out an audit that meets the
requirements of the Code of Audit Practice. We Revenue
adopt a risk-based approach to planning our
In previous annual audit letters I have raised audit, and our audit work has focused on your
concerns over your low level of general significant risks that are relevant to our audit
reserves, notably following the financial impact responsibilities.
of the Bradford Riots. In contrast, your general
Central to our audit are your corporate
reserves have increased from £8.6 million at the
governance arrangements. Our audit is then
end of 2002/03 to £15.4 million at the end of
structured around the three elements of our
2003/04 (gross expenditure in 2003/04 was
responsibilities as shown below.
£384 million), an increase of £6.8 million. This is
£2.9 million more than estimated in the revised
budget and £6.4 million more than the original
budget (which planned for a £0.4 million
increase in general reserves).

Annual Audit Letter – Audit 2003/2004 West Yorkshire Police Authority – Page 3
audit 2003/2004 ANNUAL AUDIT LETTER
Grants The original budget was revised to take account
of the reduction in the planned number of new The 2003/04 accounts include unapplied grants
recruits, both police officers and police of £16.5 million, comprising:
community support officers, due to being unable
• unused Airwave grant (£5.6 million, see
to access sufficient training places.
above);
The main reasons for the underspend against
• financing of capital slippage to 2004/05
the revised budget (£2.9 million) include:
(£9.3 million); and
• additional (unexpected) special grant from
• unfinanced capital accruals (£0.6 million).
the Home Office in respect of the Bradford
This provides much of the funding for the capital riots (£1 million);
slippage referred to above.
• reduction in police ill-health retirements
(£400K); Systems of internal financial
• reduction in police staff voluntary control
retirements (£500K); and
The overall control framework is satisfactory. • rents and rating revaluations (£700K).
Internal Audit continues to provide a
The 2004/05 budget has been set with a professional and effective function. The
14.9 per cent precept increase and plans for a Authority has recently adopted a Code of
£1.7 million use of general reserves. Close Corporate Governance to strengthen
budget monitoring has already identified a arrangements further.
number of underspends. Prompt action is being
taken to redirect (vire) these underspends to Internal Audit (IA)
other priority areas via a ‘spending pressures
As in previous years, we have been able to place review’ to match underspends to other priority
reliance on the work of IA. IA is very needs.
professionally managed and produces and
undertakes a sound risk based audit approach to Capital
undertaking its role. IA complies with the
Capital expenditure in 2003/04 was professional standar