EAST SUSSEX FIRE AUTHORITY SCRUTINY & AUDIT … · SCRUTINY & AUDIT PANEL ... Panel held on 6...

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EAST SUSSEX FIRE AUTHORITY

SCRUTINY & AUDIT PANEL

THURSDAY 26 MAY 2011 at 10:30 hours Members are requested to attend an Audit Commission seminar at 10.00 hours

MEMBERS East Sussex County Council Councillors Healy, Livings (Chairman of the Panel), Sparks, Thomas, Waite and Freebody (co-opted for agenda item 692) Brighton and Hove Council Councillors Carden, Pidgeon and Rufus (co-opted). You are requested to attend this meeting to be held at East Sussex Fire & Rescue Service Headquarters, 20 Upperton Road, Eastbourne at 09.30 hours.

AGENDA 673. To (a) confirm all participating Members have undertaken to observe the Authority's

Code of Conduct, (b) check if any wish to amend their written declarations of interests under Part 3 of the Code and (c), in relation to matters on the agenda, seek declarations of any personal or personal & prejudicial interests under Part 2 of the Code.

674. Apologies for absence. 675. Notification of items which the Chairman considers to be urgent and proposes to

take at the end of the agenda/Chairman’s business items. (Any Members wishing to raise urgent items are asked, wherever possible, to notify

the Chairman before the start of the meeting. In so doing they must state the special circumstances which they consider justify the matter being considered urgently).

676. To consider any public questions and petitions.

677. Non-confidential Minutes of the last Scrutiny & Audit Panel meeting held on 14 April

2011 (copy attached).

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678. Callover. The Chairman will call the item numbers of the remaining items on the open agenda.

Each item which is called by any Member shall be reserved for debate. The Chairman will then ask the Panel to adopt without debate the recommendations and resolutions contained in the relevant reports for those items which have not been called.

679. Waiver of Standing Orders – report of the Chief Fire Officer & Chief Executive (copy

attached). 680. Draft Annual Governance Statement for 2010/11 – joint report of the Chief Fire Officer

& Chief Executive, Treasurer and Monitoring Officer (copy attached). 681. Internal Audit – Annual Report for the period 1 April 2010 – 31 March 2011 – report

of the Treasurer (copy attached). 682. Internal Audit – Assessment of Internal Audit Needs – report of the Treasurer (copy

attached). 683. Operational Assessment (2010-12) – report of the Chief Fire Officer & Chief

Executive (copy attached). 684. Value for Money and Business Audit Programme for 2010/11 Progress Report –

report of the Chief Fire Officer & Chief Executive (copy attached). 685. Progress Review of False Alarms from Automatic Fire Detection Systems for the

period 1 December 2010 to 31 March 2011 – report of the Chief Fire Officer & Chief Executive (copy attached).

686. Corporate Risk Review and Outcomes 2010/11 – report of the Chief Fire Officer &

Chief Executive (copy attached). 687. Managing the Risk of Fraud – Update – report of the Chief Fire Officer & Chief

Executive (copy attached). 688. 2010/11 4th Quarter Performance Results – report of the Chief Fire Officer & Chief

Executive (copy attached). 689. Draft Value for Money and Business Audit Programme Scoping Statements for

2011/12 – report of the Chief Fire Officer & Chief Executive (copy attached). 690. Contract Standing Orders – report of the Chief Fire Officer & Chief Executive (copy

attached).

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691. Exclusion of the Press and Public To consider whether, in view of the business to be transacted or the nature of the

proceedings, the press and public should be excluded from the remainder of the meeting on the grounds that, if the public and press were present, there would be disclosure to them of exempt information. NOTE: Any item appearing in the confidential part of the Agenda states in its heading the category under which the information disclosed in the report is confidential and therefore not available to the public. A list and description of the exempt categories are available for public inspection at East Sussex Fire & Rescue Service Headquarters, 20 Upperton Road, Eastbourne and at Brighton and Hove Town Halls.

692. 2010/11 Value for Money Review – Information Management – confidential report of

Councillor Freebody, Member Lead for Information Management (copy attached). (Exempt categories under paragraphs 3 & 4 of the Local Government Act 1972).

ABRAHAM GHEBRE-GHIORGHIS Monitoring Officer

East Sussex Fire Authority c/o Brighton & Hove City Council

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Agenda Item No. 677

EAST SUSSEX FIRE AUTHORITY Minutes of the meeting of the SCRUTINY AND AUDIT PANEL held at East Sussex Fire & Rescue Service Headquarters, 20 Upperton Road, Eastbourne at 09:00 hours on Thursday 14 April 2011. Members Present: Councillors Carden, Healy, Kemble, Livings (Chairman), Sparks and Thomas. Also present: Mr. D. Prichard (Chief Fire Officer & Chief Executive), Mr. G Walsh (Deputy Chief Fire Officer), Mrs. D. Williams (Assistant Chief Officer – Corporate Services), Mrs. C. Rolph Assistant Chief Officer (People & Organisational Development), Ms. L. Woodley (Deputy Monitoring Officer), Mr. D. Savage (Deputy Treasurer) and Mrs. A. Bryen (Clerk). 663. DECLARATIONS OF INTEREST 663.1 (a) It was noted that all participating Members had undertaken to observe the

Authority’s Code of Conduct; (b) Councillor Livings and Councillor Thomas wished it to be recorded that the

Sussex Sea Fisheries Committee had been dissolved and replaced by the Sussex Inshore Fisheries and Conservation Authority, of which they were both members. It was noted that no other Member wished to amend their written declarations of interest under Part 3 of the Code; and

(c) It was noted that, in relation to matters on the agenda, no Member wished to make any declarations of personal or prejudicial interest under Part 2 of the Code.

664. APOLOGIES FOR ABSENCE 664.1 Apologies for absence were received from Councillors Harmer-Strange and Rufus

(co-opted). 665. ANY OTHER NON-EXEMPT ITEMS CONSIDERED URGENT BY THE

CHAIRMAN 665.1 There were no urgent items. 665.2 Councillor Livings informed Members of the sudden recent death of Councillor

Chris Ogden, the Mayor of Peacehaven Town Council. Members expressed their sympathies.

666. TO CONSIDER PUBLIC QUESTIONS OR PETITIONS, IF ANY 666.1 There were none.

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667. NON-CONFIDENTIAL MINUTES OF THE LAST SCRUTINY AND AUDIT PANEL

MEETING HELD ON 6 JANUARY 2011 667.1 RESOLVED – That the minutes of the meeting of the Scrutiny & Audit Panel held

on 6 January 2011 be approved as a correct record and signed by the Chairman. (Copy in Minute Book).

668. CALLOVER 668.1 Members reserved the following items for debate: 669. Assurances to the Audit Commission for the 2010/11 Audit. 670. Accounts and Audit (England) Regulations 2011 (SI 2011 No 817). 669. ASSURANCES TO THE AUDIT COMMISSION FOR THE 2010/11 AUDIT 669.1 Members considered a joint report of the Chief Fire Officer & Chief Executive,

Treasurer and Monitoring Officer that sought confirmation of the Panel’s arrangements regarding compliancy issues on risk of fraud and other legal and regulatory requirements as required by the Audit Commission to meet the latest International Standard on Auditing. (Copy in Minute Book).

669.2 Councillor Sparks asked about the current situation regarding potential insurance

claims relating to the Marlie Farm incident (Appendix 3 -Section 4). DCFO Walsh advised Members that the Authority’s insurer was defending some civil claims brought against the Service and that this was likely to be concluded towards the end of 2011/beginning of 2012.

669.3 Subject to the views of the Panel, the Chairman would be required, on behalf of

the Panel, to sign a letter to the Audit Commission confirming that satisfactory arrangements were in place regarding the Panel’s responsibilities for being assured of the organisation’s compliancy issues on risk of fraud and other legal and regulatory requirements.

669.4 RESOLVED – That the report be approved, and the arrangements to meet the

assurance standards required be confirmed by the Panel as being sufficient to meet its needs.

670. ACCOUNTS AND AUDIT (ENGLAND) REGULATIONS 2011 (SI 2011 NO 817) 670.1 Members considered an oral report of the Treasurer that advised them of the

changes affecting Fire Authorities arising from the Accounts and Audit (England) Regulations 2011. (Copy in Minute Book).

670.2 The Regulations removed the requirement for draft accounts to be approved by

Members and therefore there was no longer a need for the Panel to meet in June. In future, Members would receive audited accounts in September and take a view on the External Auditor’s comments.

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670.3 Other minor changes related to the definition of the requirement for Fire Authorities

to review the effectiveness of systems of internal audit. Members would be asked to consider this as part of the Annual Internal Audit Report.

670.4 Members were also informed that there was no longer a requirement for the

Annual Governance Statement to be included with the Accounts, although this would still have to be considered alongside the accounts. The Annual Governance Statement would be brought to Members in May for consideration.

670.5 RESOLVED – That the oral report of the Treasurer be noted. 671. EXCLUSION OF THE PRESS AND PUBLIC 671.1 RESOLVED - That item 672 be exempt under paragraph 3 of Schedule 12A to the

Local Government (Access to Information) (Variation) Order 2006 and accordingly is not open for public inspection on the grounds that it includes information relating to the financial or business affairs of any particular person (including the authority holding that information).

672. CONFIDENTIAL MINUTES OF THE LAST SCRUTINY & AUDIT PANEL HELD

ON 6 JANUARY 2011 672.1 RESOLVED – That the confidential minutes of the meeting of the Scrutiny & Audit

Panel held on 6 January 2011 be approved as a correct record and signed by the Chairman (Copy in Minute Book).

The meeting concluded at 09:19 hours. Signed Chairman Dated this day of 2011

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Agenda Item No. 679


Panel: Scrutiny & Audit Date: 26 May 2011 Title: Waiver of Standing Orders By: Chief Fire Officer & Chief Executive Purpose of Report: To inform the Panel about the need to waive Standing

Orders to allow for the urgent purchase of equipment.

RECOMMENDATION: The Panel is asked to note the report.

MAIN ISSUES

1. It has been necessary to waive contract Standing Orders 13.1 – 13.3 to allow the

purchase of an essential Uninterrupted Power Supply Unit to facilitate the continued operation of the Mobilising & Communications Centre from Headquarters.

2. Standing Orders require any waivers approved by Principal Officers to be reported

to the Fire Authority or the Scrutiny & Audit Panel. Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 28 April 2011

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1. BACKGROUND 1.1 East Sussex Fire Authority’s Standing Orders are set out in the Members’ Handbook.

This can be viewed on-line at www.esfrs.org. Section B sets out Contract Standing Orders. The relevant standing orders are: 7: Waivers; and 13.1 – 13.3: Competition processes.

1.2 Standing Orders require that, for a procurement value between £10,000 and £50,000,

quotations or tenders would normally be sought from three suppliers. A Principal Officer can waive this requirement if, in the opinion of the Contracts Officer, there is only one supplier who can provide the goods, works or services.

1.3 All waivers of contract Standing Orders must be reported to the Authority or its

Scrutiny & Audit Panel and recorded by the Contracts & Insurance Manager in the Contracts Register.

1.4 A summary of the information presented to the Principal Officer to support the request

for contract Standing Order waiver is set out below: Justification for Single Supplier Procurement

The Keysource quotation actually covers TWO different models of Uninterrupted Power Supply Unit (UPSU):

1. A UPSU from Reillo at an installed cost of £33,860.00, and 2. A UPSU from APC at an installed cost of £35,295.00

The APC UPSU is a like for like replacement to the existing UPS requiring no additional site work other than disconnecting the existing unit, its removal, positioning of the new unit and reconnecting it, i.e. a straight swap. The Reillo UPSU is a different system; none of the existing switchgear, cabling or battery racking would be usable. To accomplish the installation of a different make of UPSU, would mean the removal of all existing switchgear and cabling in the UPSU room, which would disconnect the supply to all of our I.T systems for up to 3 days while additional site works were carried out to suit the installation of the new switchgear and cabling.

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The systems affected would be: -

Telephone systems at ALL sites (HQ and 24 Fire Stations). IT systems at ALL sites (HQ and 24 Fire Stations). Public services: - www.esfrs.org, email to and from the organisation. HQ Security cameras and access control system. The cost of this additional work is estimated to be around £20,000.00.

Keysource Limited is the current maintainer of the whole system and we would be reluctant to introduce a new contractor at this critical time as it is vitally important that our emergency control is brought back to HQ from it’s temporary outstation as soon as possible. Therefore the solution using the APC unit is the only option available to the Service which enables us to minimise the downtime of the system and to enable M&CC to return to HQ at the earliest opportunity.

1.5 For the further background information of the Panel, a UPSU ensures that the

Mobilising & Control Centre (M&CC) based at Headquarters is able to continue to function in the event of a power supply failure to the building. As part of the business continuity arrangements, in the event that M&CC is unable to operate from Headquarters for any reason, there is provision for M&CC to relocate to its secondary control facility at Eastbourne Fire Station.

1.6 If, during this period, any further instances affecting the ability of M&CC to undertake

ESFRS’s statutory duties would have required emergency calls to be handled by West Sussex Fire & Rescue Service.

1.7 It was, therefore, necessary to progress the urgent replacement of the UPSU due to: a) the need to return the Mobilising & Control Centre to Headquarters from the

secondary operating facility as soon as possible for business continuity reasons; and

b) the UPSU was approaching the end of its economic life and repair seemed to be a more expensive way of proceeding in the long term and may have added to risk of further failure.

1.8 The Assistant Chief Officer (Corporate Services) was consulted about the necessity of

an urgent purchase. Following discussions by Principal Officers, the situation was deemed to be an emergency and the waiver of the relevant Standing Orders was approved.

1.9 As this was deemed to be an emergency, the Treasurer, the Monitoring Officer and

Councillor Ost as the Member Lead for procurement, were informed. 2. CONCLUSION 2.1 The UPSU has been supplied and satisfactorily installed, enabling normal business

operating to recommence.

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Agenda Item No. 680 EAST SUSSEX FIRE AUTHORITY

Panel: Scrutiny & Audit

Date: 26 May 2011

Title of Report: Draft Annual Governance Statement for 2010/11

By: Chief Fire Officer & Chief Executive, Treasurer and Monitoring Officer

Purpose of Report: To seek the Panel’s approval of the draft Annual Governance Statement for 2010/11 to accompany the draft Statement of Accounts 2010/11.

RECOMMENDATION: To approve the draft Annual Governance Statement set out as Appendix A which is expected to present a fair and unbiased overview of our corporate governance arrangements for 2010/11 to accompany the Statement of Accounts.

MAIN ISSUES

1. The Fire Authority is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The 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 this overall responsibility, Members and senior officers are responsible for putting in place proper arrangements for the governance of the Fire Authority’s affairs, the effective exercise of its functions, the management of risk and the stewardship of the resources at its disposal.

2. These arrangements have to be summarised in an Annual Governance Statement in a nationally agreed format which has to accompany the Statement of Accounts, but under the latest national guidance no longer needs to be included within them. In essence, the Annual Governance Statement is the formal statement that recognises, records and publishes an authority’s governance arrangements as defined in the framework. Authorities need to recognise that this is a corporate issue, affecting everyone in the organisation. It is also important to recognise that the purpose of the Annual Governance Statement is not just to be ‘compliant’, but also to provide an accurate representation of the arrangements in place during the year and to highlight those areas where improvement is required.

3. A previous version of this report and the accompanying draft Annual Governance Statement was presented to Corporate Management Team at its meeting on 28 April 2011 for approval and to ensure that CMT had the opportunity to raise any further issues of materiality for possible inclusion in the draft version for the Panel’s consideration and allow time to resolve any key issues. There were a number of additional issues included in this final report arising from these considerations by CMT.

Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 1 May 2011

Sean Nolan TREASURER

Abraham Ghebre-Ghiorghis MONITORING OFFICER

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APPENDIX A

DRAFT East Sussex Fire Authority Annual Governance Statement for the year ended 31 March 2011 (changes from previous year highlighted in green) 1. Background East Sussex Fire Authority, as the authority which runs East Sussex Fire and Rescue Service, is responsible for ensuring that there is a sound system of Corporate Governance which facilitates the effective exercise of the Fire Authority’s functions and which includes arrangements for the management of risk. The Department of Communities and Local Government recognise “proper practice” in relation to Corporate Governance, as contained in the CIPFA/SOLACE Framework Delivering Good Governance in Local Government (2007). The new “proper practice” builds on existing disclosure statement requirements by extending the existing legislative requirements, governance principles and management processes relating to the whole organisation and the activities through which it accounts to, engages with and leads its community. This Annual Governance Statement summarises how the Fire Authority has complied with its Local Code and also meets the requirements of the Accounts and Audit Regulations 2011. A copy of the Local Code is on our website at www.esfrs. org or can be obtained from the Fire Authority’s Clerk. 2. Scope of responsibility East Sussex Fire Authority is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The 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 this overall responsibility, Members and senior officers are responsible for putting in place proper arrangements for the governance of the Fire Authority’s affairs, the effective exercise of its functions, the management of risk and the stewardship of the resources at its disposal. To this end, East Sussex Fire Authority has approved and adopted a Local Code of Corporate Governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. 3. Purpose of the governance framework Good governance is about how a local authority, including a Fire Authority, ensures that it is doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner. Our governance framework comprises the systems, processes, culture and values by which the Fire Authority is directed and controlled. Through effective governance the Fire Authority is accountable to, engages with and, where appropriate, leads the community.

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The Fire Authority has agreed procedures forming a constitution which sets out how it operates, how decisions are made and the processes which are followed to ensure these are efficient, transparent and accountable to the community. Many of these processes are required by statute, while the Fire Authority has determined others locally. The constitution sets out the basic rules governing its formal business. From 2007/08, the governance responsibilities were charged to the Scrutiny & Audit Panel and also to the Standards Panel. The role of approving this Statement and recommending the Code of Corporate Governance for adoption by the full Fire Authority falls to the Scrutiny & Audit Panel. Also the responsibility for the approval of the Statement of Accounts and the related Annual Governance Report falls to this same Panel. The Local Code of Corporate Governance can provide only reasonable and not absolute assurance that the Fire Authority achieves its aim of good governance. Equally, the Fire Authority’s system of internal control is designed to identify and prioritise the risks to the achievement our policies, aims and objectives, to evaluate the likelihood and impact of those risks being realised and to manage those risks efficiently, effectively and economically. It cannot eliminate all risk of failure; it can therefore only provide reasonable and not absolute assurance that our policies, aims and objectives are achieved. The Local Code, which was substantially revised during 2008/09, and the system of internal control have been in place at East Sussex Fire Authority for the year ended 31 March 2009 and up to the date of the approval of the statement of accounts. 4. Policy and decision making In discharging its statutory duties in the provision of services the Fire Authority’s constitution provides details of the decision making process for the Fire Authority as a whole. The Fire Authority’s constitution is available on our website and is reviewed by the Monitoring Officer on a regular basis and regular reports are received by the relevant Panels relating to proposed changes. The Fire Authority’s key Panel for policy and resource planning is the Policy & Resources Panel as supported by an officer and member working group looking at key service planning issues. Reports of all Panel meetings are presented to the full Fire Authority for consideration at its next meeting. All Fire Authority and Panel meetings held are open to the public, unless the items being discussed are considered to be private under the Local Government Act 1972; these will include staffing, legal matters and those of a contractual nature. All Fire Authority and Panel agendas are posted on the Fire Authority website and copies of agendas are posted at Service Headquarters and issued for posting at Brighton & Hove City Council and East Sussex County Council main reception offices.

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5. Establishment and monitoring of corporate and service objectives

The Fire Authority’s Medium Term Plan (five year) is approved by Members and provides details of the medium term corporate priorities and community risks it is seeking to improve. The Fire Authority’s Annual Plan summarises the improvement agenda for the forthcoming year to meet our 3 Strategic Aims. Targets for the forthcoming year are also provided along with a summary of its performance achievements for the previous year. Targets are reviewed and updated on an annual basis and, where appropriate, further refined during the year based upon actual results. The Annual Plan also sets out a key summary of resources being used to meet service commitments. Copies of both documents can be found on our website at: http://www.esfrs.org. The Annual Plan establishes in detail our improvement priorities and these feed down through to Corporate Business Plans for each Directorate to follow as well as our Borough Plans for each of our 6 Borough Command areas and local station action plans. Our personnel can then understand where they fit into achieving our overall policy priorities and staff development appraisals help to ensure there is a “Golden Thread” from the strategic to each functional area. Our key Performance Plans include information on our corporately agreed performance targets. These targets are cascaded through all the Plans and are time specific. Performance is monitored by the Corporate Management Team (CMT) and the Scrutiny & Audit Panel on a quarterly basis giving details of the progress to date and what management action is being taken to correct any adverse performance. Work has now been completed to further refine the performance targets to a reduced set of key indicators with supporting performance measures to focus strategic attention on key issues. Since 2009/10, our key plans have provided improved community profiling information commensurate with the particular aims of the Plans. Local community risk information is also being included to ensure they are properly aligned to meet the diverse needs of local communities and help to mitigate the community risks across our local areas. This key intelligence will help us to ensure our services are prioritised to meet the greatest needs of vulnerable people and work with our partners to ensure our collective efforts protect them from life risk and injury.

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6. Audit Commission Annual Audit Letter 2009/10

The Audit Commission’s Comprehensive Area Assessment (CAA) ceased in 2010/11 following the change in government, although the complementary Operational Assessment regime continues in force. Copies of all previous Audit Commission assessments are available on our website at www.esfrs.org and a summary of their conclusions is also included in our Annual Plan. The most recent Audit Commission Annual Audit Letter was considered by the Fire Authority in December 2010, summarised the Fire Authority’s current arrangements in the following table:

Criteria Adequate arrangements?

Managing finances Planning for financial health Yes Understanding costs and achieving efficiencies

Yes

Financial reporting Yes Governing the business Commissioning and procurement Yes Use of information Yes Risk management and internal control Yes Good governance Yes Managing resources Natural resources (2009/10) Yes Workforce (Assessed in 2008/09) Yes

The Auditor also advised that future work will be based on a reduced number reporting criteria, specified by the Commission, concentrating on:

securing financial resilience; and prioritising resources within tighter budgets

The effective targeting and usage of our resources has always been a Fire Authority as well as a Service corporate priority, and for 2010/11 this is being achieved in several ways: Securing Financial resilience

• the production of an effective Five Year Financial Strategy which is supported by annual service planning and related budget setting on the most prudent principles.

• the mature corporate risk assessment processes in place • the investments made and continuing to be made on capital and asset

infrastructure • Investing unused Balances to fund Capital investment to minimise need for

borrowing • Full business appraisals for every financial investment • Agreeing a new policy for recruitment that requires a full business case to be

completed prior to proceeding to recruit to a vacancy.

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Prioritising resources within tighter budgets • The latest IRMP has unlocked capital resources in Service housing to release it

for operational capital investment over the next 4 years which will yield a full year revenue budget saving in excess of £0.5m per annum in relation to essential capital spending

• A fundamental review of the Capital Programme has taken place to meet reduced resourcing projections which has yielded an immediate revenue saving well in excess of £0.5m per annum for the foreseeable future

• A comprehensive service prioritisation programme is underway that has ensured the Fire Authority’s Medium Term Plan is balanced in terms of the expected 25% reductions in formula grant over the next four years until 2014/15.

• The preparation of a business case for merger/increased collaboration with West Sussex Fire & Rescue Service (WSFRS) is in progress.

• An immediate joint review to establish a merged control centre with WSFRS is also underway.

7. Complaints and confidential reporting policies The Fire Authority operates a formal complaints procedure which is available to both staff and stakeholders either on request or on our website. The procedure is well documented. The Complaints Investigation Officer formally investigates every complaint and a summary of complaints made is reported to the Scrutiny & Audit Panel in September each year. The Fire Authority has dealt with less than 30 complaints each year for the last five years. There have been no findings of maladministration against the Fire Authority for 2010/11. The Fire Authority also has a Whistleblowing Policy along with an Anti Fraud & Corruption Strategy. Staff are informed of these at their induction and are reminded on a regular basis. Both the Whistleblowing Policy and Anti Fraud Strategy are reviewed and updated where necessary on a regular basis and leaflets issued to all staff. No incidents have been reported under the Fire Authority whistleblowing arrangements in 2010/11. In April 2011, an Employment Tribunal claim has been received from a previous employee. 8. Compliance The Fire Authority has a duty to ensure that all activities undertaken are in accordance with the law. This is discharged in part by the Fire Authority’s Financial Regulations and Contract Standing Orders. Other policies or strategies covering both internal and external issues are available to staff and the public via the East Sussex Fire and Rescue Service intranet and our Fire Authority internet sites respectively and can be found on the Fire Authority website at www.esfrs.org These include:

• Anti-fraud Strategy • Whistleblowing Policy • Freedom of Information

East Sussex Fire & Rescue Service also has a complementary set of Manuals to ensure operational, personnel, health, safety and welfare, financial procedures and corporate administrative arrangements are executed effectively. All strategies, policies and Manuals are allocated to a lead officer who is responsible for the periodic review and updating of each.

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9. Review of effectiveness East Sussex Fire Authority reviews the effectiveness of its governance arrangements, including its system of internal control, on a continual basis. This review of effectiveness is informed by: 1. the work of Members through the Scrutiny and Audit Panel and the Standards Panel as

well as the full Fire Authority; 2. the work of Corporate Management Team as well as other senior managers within East

Sussex Fire & Rescue Service, who have primary responsibility for the development and maintenance of the internal control environment;

3. the Statement of Internal Financial Control and the work of the Treasurer of the Fire Authority (who is also the Director of Corporate Resources of East Sussex County Council) as the Fire Authority’s Chief Financial Officer and officers of East Sussex Fire & Rescue Service with financial management responsibilities;

4. the work of the Monitoring Officer (who is also the Head of Law at Brighton & Hove City Council); and officers of East Sussex Fire & Rescue Service with corporate governance responsibilities;

5. the annual risk management report and periodic review of strategic risks conducted by Corporate Management Team and considered by the Scrutiny & Audit Panel;

6. the work of the internal audit service including their annual report and opinion; 7. the external auditors in their various audit and annual governance reports; 8. the Audit Commission’s assessment processes for governance and internal control

arrangements. 9. any judgements made by a range of external inspection and other statutory bodies

including the Local Government Ombudsman and the Standards Board for England (no referrals have been reported by either organisations in 2010/11).

10. Key elements of the governance and internal control environments The key elements that comprise the Fire Authority’s governance arrangements are set out in the Local Code and they include: Fire Authority Constitutional arrangements • the Fire Authority’s constitution which sets out clear arrangements for decision

making, scrutiny, communication and the delegation of powers to officers and Members;

• codes of conduct for Members and employees which set out clear expectations for standards of behaviour;

• a clear framework for financial governance based on Contract Standing Orders, Financial Regulations and Standard Financial Procedures;

• a risk management strategy and detailed risk management framework, which takes account of both strategic and operational risks and ensures that they are appropriately managed and controlled;

• Fire Authority Panels (committees of Members of the Authority) with clear responsibilities for governance, audit and standards;

• established arrangements for dealing with complaints and whistle-blowing, and combating fraud and corruption.

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Strategies • a range of supporting Strategies that link the constitutional arrangements with our Vision, Strategic, Aims, supporting corporate objectives and our values which we wish to uphold in everything we do. It also provides links to the functions of the organisation. Performance Plans • an established medium term planning process including the process for reconciling policy priorities with financial resources, which takes account of the need to improve both customer focus and efficiency; and which feeds into:

• a Medium Term Plan that sets out our medium term vision for our local communities and the outcomes we intend to achieve for them;

• A Community Risk Management (Integrated Risk Management) Plan that covers a three year period detailing the key service priorities, proposed areas for review over the medium term and to seeks consultation and active engagement with our affected local communities through the lifetime of the Plan;

• an Annual Plan that sets out our annual aims and objectives for our local communities and the outcomes we intend to achieve for them each year;

• 4 Directorate Business Plans that identify the functional work targets across the organisation to meet the strategic aims;

• related Borough Plans that identify the functional work targets across the 6 Borough Commands for local stations to deliver local services targeted to their needs and summarise local community profiles and risk and how the Plan will help to support those with particular and diverse needs as well as mitigate local risks.

Performance Management Framework • a business planning and performance management framework which includes setting clear objectives and targets, both financial and otherwise; • regular reporting of performance against the Fire Authority’s key corporate objectives, national and local performance indicators and their related performance improvement targets as set out in the Annual Plan, to officers and Members; • established budgeting systems, clear budget management guidance and regular reporting of financial performance against budget forecasts to officers and Members; • delegated financial management processes to promote ownership of financial issues within our four Directorates; • a partnership review framework that ensures our partnership working arrangements meet the objectives set; • a range of policies and processes designed to ensure best practice and legal compliance for personnel matters, IT security, access to information, data protection and project management. Operational Assurance • the Operational Assurance action plan is being completed to the agreed timetable

set and monitored by CMT; • the Fire Authority has agreed the continued funding for the Operational Improvement

Team; • the Retained Duty System contracts are being revised to secure more effective and

resilient retained appliance availability;

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• a review of the Incident Command System is underway to provide a resilient command and supervision structure to be supported by an operational assurance framework that assesses our performance at all levels of incidents;

• business continuity plans are in place and will be tested in 2011/12; • the feasibility study for Control Rooms Options will provide a basis on which to plan

for the future effectiveness of our call handling providing dynamic mobilising of appliances based upon their ability to attend quickest not on location of fire station .

People and organisational development • assessment under the Equality Standard (now Equality Framework) ensures legal

compliance as well as fundamental linkage with business aims schemes for identifying the development needs of Members and officers, supported by appropriate training;

• development programme in place for Corporate Management Team learning and development approaches to not only ensure operational or professional competencies are sustained and enhanced, but building our middle managers to be our local community leaders;

• learning and development competency framework which received a national commendation;

• strategies for communication and consultation with our key stakeholders, partners and our local communities;

• commitment to Charter for Member Learning & Development, induction programme reviewed and mentoring scheme launched in preparation for new Members;

• reviewed and implemented new procedures for discipline, grievance, attendance and performance management ;

• introduced managing change policy (redundancy) and currently working on flexible retirement package;

• revision of staff contracts to improve capacity. Information Management • the Business Plan incorporates developing frameworks including the Information

Technology Infrastructure Library V3 (ITIL V3) to focus on organisational objectives and drive up productivity with emphasis on performance and quality.

• Information Management Strategy is designed to provide IT solutions to organisational business requirements and also assign resources for acquiring or developing such solutions. The Strategy also maps the solutions to the organisational objectives thereby providing a link between the solutions and the business objectives it supports.

• the Strategy is based upon a fundamental principle of providing IT solutions by not limiting technologies supplied by Microsoft or Novell thereby maintaining a platform that can support either system or format.

• the Strategy also is introducing a unified communication systems to foster collaborative working, sharing of information and task management. This will negate the need to circulate or store multiple copies of the same information.

• External and internal IT audit reviews. Regular external and internal audits take place on our IT infrastructure. An external auditor had undertaken a review of our current IT security arrangements and an action plan has just been approved by Corporate Management for quarterly consideration until all key priorities have been addressed.

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Corporate Risk and Insurance • corporate risk management arrangements are mature and corporate training is

refreshed annually with different approaches being used to ensure continual improvement in skill sets and competencies

• a fundamental review of corporate insurance cover was undertaken in 2010/11 to consider current and future risks and costs of insurance relative to those risks. The review was considered by Corporate Management Team and whilst most of the portfolio remained unchanged, decisions were taken to enhance cover in some areas and raise excesses on motor insurances and establish an internal fund to meet the self insured costs as this was likely to be cheaper over the long term.

11. Incident at Marlie Farm The Heath and Safety Executive (HSE) has undertaken a review of the work undertaken by East Sussex Fire & Rescue Service following the incident at Marlie Farm, East Sussex on 3 December 2006 where two personnel from East Sussex Fire & Rescue Service tragically lost their lives. A formal letter was received from the HSE on 19 March 2008 raising concerns on matters relating to operational communication to station personnel, operational training and risk management arrangements. A formal action plan was agreed to ensure all issues raised have been, or are being substantially resolved, within the timescale set by the Health and Safety Executive. The Health and Safety Executive have now reviewed the final position and approved the actions taken and so ESFRS has met all the concerns raised. Civil claims are being handled via our insurers. 12. Equality and Diversity ESFRS met the Level 3 of the Equality Standard for Local Government in March 2009. This involved all parts of the organisation ensuring that not only are our employment practices sound, but diversity and equality principles are embedded in everything we do. All our strategies have had Equality Impact Assessments completed on them, and the strategies adapted accordingly. Work is now continuing to achieve the new Achieving Excellence Standard. 13. Assurance and Significant Governance Issues No assurance can ever be absolute; however this statement seeks to provide a reasonable assurance that there are no significant weaknesses in the Fire Authority’s governance arrangements. On the basis of the review of the sources of assurance set out in this statement, we are satisfied that the Fire Authority has in place satisfactory governance arrangements which are operating effectively. A major review of our constitutional framework took place in 2007/08. A further update took place in 2009/10 with changes approved for the release of the Members’ Handbook in July 2010. Other related development work in 2009/10 has now been completed. The year’s work has included: • Continuing to implement the action plan following the self-assessment of our

corporate governance arrangements using the CIPFA/SOLACE guidance. Our base level of compliance was good and there remains only 1 action point still to be completed.

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• Continuing to implement the action plan following the self-assessment review of Managing the Risk of Fraud in line with other CIPFA guidance; again, our base level of compliance was good and the remaining action points have been completed. The latest Audit Commission guidance has also been reviewed, a compliance assessment undertaken and reported to the Scrutiny and Audit Panel for monitoring purposes;

• Continuing to develop our directorate/functional business continuity plans to the previously agreed corporate template so that every functional area can relocate and continue to work in an alternative premises, if required to meet our own responsibilities and are in keeping with our Civil Resilience responsibilities.

• Continuing to develop our directorate business plans to include the new challenges identified by the Audit Commission for managing the finances, governing the business and managing the resources now assisted with the development of Interplan during 2010/11 so that our business plans can be kept up to date throughout the year and corporate monitoring can take place more easily with effect from 1 April 2011.

• Continuing to develop the Fire Authority’s information security policy and put in place consistent and robust approaches to information security management in line with relevant national standards. An external consultant has been appointed to undertake a review of our current IT security in 2010/11. The report identified that certain agreed corporate IT security arrangements had not been undertaken effectively and a rectification plan has been agreed and is now underway for regular review by Corporate Management Team until all the recommendations have been addressed.

On the basis of the review of the sources of assurance set out in this statement, we are satisfied that the Fire Authority also has in place a satisfactory system of internal control which is operating effectively. On the basis of the internal audit work completed, it is internal audit’s opinion that “the Fire Authority has in place a sound framework of internal control that provides a reasonable assurance regarding the efficient and effective achievement of its objectives.” Although Internal Audit were able to provide this assurance, the Annual Report for 2010/11 drew the Scrutiny and Audit Panel’s attention to three areas where weaknesses in the control environment were identified. These involved the Retained Pay System, the ICT Network Infrastructure (see comments above) and Capital Contracts. Despite these weaknesses, the overall opinion reflected the positive response by management to our recommendations and its commitment to addressing the issues identified. Clearly, it is important that this work is completed as a priority to improve the control environment to an acceptable level and, therefore, formal follow up reviews will be undertaken by internal audit, in all three areas, during 2011/12. The respective senior managers within ESFRS have given their commitment to ensure that all the issues identified in these three areas are addressed. Apart from these latter issues, we have not identified any significant gaps in assurance over key risks or significant governance and internal control issues. The Fire Authority will continue to regularly monitor issues that may seriously prejudice or prevent achievement of its key objectives through its strategic risk review process.

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Both governance and internal control arrangements must be kept under review to ensure that they continue to operate effectively and meet changing legislative needs, reflect best practice and our intention to achieve excellence in all our activities. The Fire Authority has progressed with a number of initiatives to enhance its governance arrangements which will continue for 2011/12 and beyond, as follows: • Continue to implement outcomes achieved and further develop its strategic service

prioritisation approach to assist with the bleaker financial context facing the whole of the public sector for the foreseeable future;

• Rationalise the business agenda for the Fire Authority and its Main Panels to improve focus on strategic decision making and find alternative means for achieving effective information sharing;

• Further develop the Member Lead arrangements where 16 of the 18 members on the Fire Authority now have a lead responsibility for progressing a strategic issue and reporting progress to fellow Fire Authority members, as supported by ESFRS staff and CFA appointed officers as appropriate;

• Achieve Achieving Excellence Equality Standard for Local Government; • Enhance its management and control over energy usage and promote its

environment strategy objectives to gain commitment from all staff and improve performance across all organisational activities;

• Complete our community profiling development work to aid local and strategic decision making by better understanding the needs of our local communities and the diverse needs of individuals within our local area and ensure the information can be accessed and used simply and effectively across the organisation by having the right support systems and information management processes in place;

• Complete the action plans following the recent self-assessments identified above; • Keep under review corporate health, safety and welfare arrangements including the

health and safety values within the organisation; • Make further adaptations, if required, to our constitutional arrangements and

delegations to meet requirements of the Local Government and Public Involvement in Health Act.

Actions plans will be put into place to address these issues, and their implementation will be monitored and reviewed. A business case is being prepared for either increased collaboration with West Sussex Fire & Rescue Service or a possible merger to create a new Fire Authority covering East and West Sussex and the City of Brighton and Hove. Work is progressing on the business case for a final decision in December 2011 and if a merger is recommended by both Authorities, and subsequently approved by the DCLG, new governance arrangements will need to be developed to facilitate this by establishing shadow authority arrangements at an appropriate time in 2012/13. Councillor John Livings Desmond Prichard VICE CHAIRMAN OF THE FIRE AUTHORITY CHIEF FIRE OFFICER & CHIEF EXECUTIVE 1 June 2010

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Agenda Item No. 681

EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title of Report: Internal Audit – Annual Report for the period 1 April 2010 to

31 March 2011 By: Treasurer Purpose of Report: To provide an opinion on the Authority’s internal control

environment and report on the work of internal audit for the period 1 April 2010 to 31 March 2011.

RECOMMENDATION: The Panel is asked to:

i note the internal audit service’s opinion on the Authority’s

internal control environment for 2010/11; and ii consider whether the Authority’s system for internal audit has

proved effective during 2010/11. MAIN ISSUE 1. On the basis of the audit work completed, the Fire Authority has in place a sound

framework of internal control, which provides a reasonable assurance regarding the efficient and effective achievement of its objectives. Individual reports on the systems evaluated by internal audit included recommendations to enhance controls and management have drawn up action plans to implement audit recommendations. Members’ attention is drawn to three areas where we identified weaknesses in key internal controls and where urgent action is being taken by management to ensure improvement is made. These areas are the Retained Pay System, ICT Network Infrastructure and Capital Contracts, all of which will be followed up by internal audit in 2011/12.

Sean Nolan TREASURER 28 April 2011

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1. INTRODUCTION 1.1 East Sussex County Council’s Audit and Performance Division has provided the

internal audit service to the Fire Authority since 1 April 1997. The Audit and Performance Division is pleased to submit this annual report of its work for the year ended 31 March 2011. The purpose of this report is to give an opinion on the effectiveness and efficiency of East Sussex Fire Authority’s framework of internal control.

2. INTERNAL AUDIT WITHIN EAST SUSSEX FIRE AUTHORITY 2.1 On behalf of the Fire Authority, it is a management responsibility to determine the

extent of internal control in the Fire Authority’s systems, and it should not depend on internal audit as a substitute for effective controls.

2.2 The role of internal audit is: • To provide an effective internal audit service to the Fire Authority that satisfies

legal requirements and professional standards. • To examine, evaluate and report objectively on the adequacy of management

arrangements to secure the proper, economic, efficient and effective use of resources.

• To assist management with their responsibilities for maintaining internal control

systems and for ensuring that the Fire Authority’s resources are properly applied, and on the activities intended.

2.3 Most of the work carried out by internal audit is in the form of risk based audits which

analyse and report upon the existence, operation and effectiveness of internal controls within specified systems, both financial and otherwise. All audit reports produced have included a management action plan where recommendations have been made which will enhance the level of control, together with an opinion on the systems reviewed.

2.4 During 2010, ESCC Audit and Performance Division entered into a framework

contract with the London Borough of Croydon to provide specialist ICT audit, via Deloitte and Touche Public Sector Internal Audit Limited. With the agreement of the Assistant Chief Officer (Corporate Services) and the Assistant Chief Fire Officer, this specialist resource is also being applied to work for East Sussex Fire Authority. ESCC Audit and Performance Division remains ultimately responsible for the production and delivery of the Fire Authority audit plan, even where we may seek to use external specialists to deliver the work on our behalf.

3. AUDIT NEEDS ASSESSMENT AND PROGRAMME OF WORK 3.1 An annual assessment of internal audit needs has been completed which is based on

a combination of factors including the internal auditor’s knowledge of the Fire Authority, the Fire Authority’s Annual Plan, the Fire Authority’s own risk assessment, the levels of control in the past, management concerns and the degree of change taking place.

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3.2 Consultation on the draft assessment of internal audit needs and the audit plan for 2010/11 took place with the Assistant Chief Officer (Corporate Services), the designated Principal Officer on behalf of the Corporate Management Team and reported to the Scrutiny & Audit Panel on 20 May 2010 for final approval.

3.3 The terms of reference, approach and audit objectives for each audit assignment

are discussed and agreed with the Assistant Chief Officer (Corporate Services) to whom final internal audit reports are issued for consideration in the first instance, and for subsequent wider consultation and consideration.

4. AUDIT OPINION 4.1 No assurance can be absolute; however this opinion seeks to provide a reasonable

assurance that there are no weaknesses in the Fire Authority’s whole system of internal control. This level of assurance given takes into account:

• All audit work completed during 2010/11 and, where relevant, in previous

years; • Follow-up of actions from previous audits where appropriate; • Management’s response to the findings and recommendations; • The effects of any significant changes in the Fire Authority’s systems; • The level of resources available to deliver the audit plan. 4.2 On the basis of the audit work completed, it is internal audit’s opinion that

the Fire Authority has in place a sound framework of internal control that provides a reasonable assurance regarding the efficient and effective achievement of its objectives.

4.3 Although we have been able to provide this assurance, it is important that we draw

Members’ attention to three areas where we have identified weaknesses in the control environment, specifically, the Retained Pay System, ICT Network Infrastructure and Capital Contracts (see below). Despite these weaknesses, our overall opinion reflects the positive response by management to our recommendations and its commitment to addressing the issues identified. Clearly, it is important that this work is completed as a priority to improve the control environment to an acceptable level and, therefore, formal follow up reviews will be undertaken by internal audit, in all three areas, during 2011/12. The respective senior managers within ESFRS have given their commitment to ensure that all the issues identified in these three areas are addressed.

4.4 Of the 10 reviews completed during 2010/11 with standard audit opinions (including

fundamental accounting system work), 3 received ‘full assurance’, 4 received ‘substantial assurance’, 2 received ‘partial assurance’ and 1 received ‘minimal assurance’. None of the audits completed during the year resulted in a ‘no assurance’ opinion. A summary of the main findings of each report is included at Appendix A.

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4.5 The key issues to highlight from our work during the year are as follows:

• Review of the Retained Pay System – this review was conducted following a

previous internal audit investigation in 2009/10, in which a member of staff was found to have falsified records in order to receive additional payments. Our audit found that whilst arrangements in place for claiming and processing payments were generally found to be robust, the change management arrangements in support of the retained pay Management Information System (MIS) were not considered satisfactory. In particular, the system’s supplier was permitted remote access to the live system in order to apply patches and upgrades, without having first applied them to a test system to enable proper testing to be carried out. This arrangement has led to unplanned changes, including the removal of some validation controls, and this resulted in a number of firefighters being overpaid. Some weaknesses were also identified in the system for certifying firefighter claim forms. As a result of these findings, we were only able to provide ‘partial assurance’ over the control environment. Whilst it is understood that the Fire Authority will not be recovering the overpaid amounts from staff, they are continuing to seek recovery from the system’s supplier.

• ICT Network Infrastructure – this review examined a series of control objectives associated with management, security and control over the organisation’s network. Overall, a number of serious control weaknesses were identified which meant that only ‘minimal assurance’ over the control environment could be provided. The report included a range of high priority recommendations, relating to: o Improved change control procedures; o Management of network accounts; o Use of intruder detection settings; o Improved password controls and password settings; o Monitoring of unauthorised access attempts; o Weak backup and recovery processes; o Improved network penetration testing.

• Capital Contracts Audit – this review examined two capital contracts to assess the adequacy of project management arrangements, including the effectiveness of monitoring and reporting in relation to cost, quality and timescales. Particular weaknesses were identified in relation to the recording and accounting for expenditure within the approved budget within SAP, as well as the off SAP system adjustments which were being made for budget variations which impacted upon the accuracy and reliability of financial monitoring and reporting.

4.6 Throughout the year, variations were made to the internal audit plan to reflect

changing risks and priorities. These variations were discussed and agreed with the Assistant Chief Officer (Corporate Services) on behalf of the Fire Authority. The main changes relate to our work on the replacement HR system being deferred to 2011/12, whilst we increased our time on both the Review of the Retained Pay System and the Review of ICT Network Infrastructure.

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4.7 During 2010/11, internal audit were also commissioned to undertake the following activities, in addition to the work already included within the audit plan: • Review of Bohemia Road Fire Station – covering an examination of station

security and management of Station Mess Funds following previous incidents of theft/loss (NB Station Mess Funds are privately held and are not the responsibility of the Fire Authority, however, the Service does provide advice on management and security of these funds);

• Capital Grants Certification – validation work to confirm appropriate terms and conditions had been met for two capital grants awarded to the Authority;

• Internal investigation advice and support – provision of specialist advice associated with two separate management investigations.

4.8 As at 31 March 2011, all internal audit work within the Fire Authority audit plan for

2010/11 had been completed. 4.9 The table in Appendix B sets out actual time spent against the original audit plan,

which includes approximately 33 days of additional work, all of which has been agreed with the Assistant Chief Officer (Corporate Services) and has been separately invoiced to the Authority.

5. PERFORMANCE 5.1 The Accounts and Audit Regulations 2006 require the Authority to carry out an

annual review of the effectiveness on its system of internal audit and the following information should provide a sound basis for the Panel to make a judgement.

5.2 The Authority’s external auditor, the Audit Commission, has continued to place

reliance on the work of internal audit as part of its audit of the Authority’s accounts and this was confirmed in their Annual Governance Report for 2009/10.

5.3 The internal audit service carries out a self-assessment against the CIPFA Code of

Practice for Internal Audit (2006) and has continued to make improvements to its processes during 2010/11 to ensure that it complies with the code and improves its service to customers.

5.4 The Audit Commission undertakes a Triennial Review of internal audit to assess

compliance with professional standards as set out in the CIPFA Code of Practice for Internal Audit in Local Government. This review was last completed during 2009 and the Audit Commission concluded that: • ‘Internal Audit provides an effective service. It has a positive reputation and

standing within the Authority which allows it to contribute fully to the corporate governance framework’.

• ‘Internal Audit has achieved compliance with the CIPFA Code’. • ‘We are able to place reliance on the work of Internal Audit in conducting our

own audit work’. 5.5 The table in Appendix C shows the performance indicators agreed and how we

have performed against these targets. This demonstrates that the majority of performance targets have been achieved by internal audit.

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APPENDIX A

SUMMARY OF INTERNAL AUDIT FINDINGS

for the period 1 April 2010 to 31 March 2011

Whilst our opinion on many areas was that systems were operating effectively, most of our audit reports included recommendations to further strengthen controls. In all cases, these have been agreed with management within formal management action plans. Reporting to ESFRS Management and the Scrutiny and Audit Panel Internal audit representatives have attended Scrutiny & Audit Panel meetings and offered advice and assistance as required. This includes production of the annual reports for presentation to the Scrutiny & Audit Panel. Following a risk assessment exercise, a rolling 5-year strategic internal audit plan has been produced and this, along with the 2010/11 internal audit plan, has been agreed by the Scrutiny & Audit Panel at its meeting on 20 May 2010. The 2011/12 internal audit plan is to be presented to the Scrutiny & Audit Panel on 26 May 2011 for agreement. All internal audit reports have been produced and discussed with the Assistant Chief Officer (Corporate Services), with whom ongoing liaison is maintained throughout the year, or the appropriate manager, and recommendations made to improve levels of control where appropriate. Precepting Arrangements The audit was undertaken to verify that the processes used in calculating the precepting figures for the Fire Authority by East Sussex County Council are robust and that the calculations were verified and checked prior to publication. Internal audit found that this process has been carried out effectively. It was confirmed that thorough checks on the final calculations had been carried out and clearly evidenced working papers to support this have been maintained.

Retained Pay System This review was conducted following a previous internal audit investigation in 2009/10 in which a member of staff was found to have falsified records in order to receive additional payments. Our audit found that whilst arrangements in place for claiming and processing payments were generally found to be robust, the change management arrangements in support of the retained pay Management Information System (MIS) were not considered satisfactory. In particular, the system vendor was permitted remote access to the live system in order to apply patches and upgrades without having first applied them to a test system, to enable proper testing to be carried out. This arrangement has led to unplanned changes, including the removal of validation controls, and this resulted in a number of Firefighters being overpaid.

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In addition, we found that there was no system in place to force passwords to be changed within the MIS, resulting in the likelihood that many users are still using the passwords allocated to them when the system was first implemented. This increases the risk of unauthorised access. Finally, we found that the current claim form process does not include provision for Officer in Charge certification of claims to be properly evidenced, thereby preventing us from verifying whether this had taken place within the sample tested. A range of recommendations for improving controls has been made and in all cases these have been agreed with management. A formal follow up review will be undertaken as part of the 2011/12 internal audit plan. ICT Network Infrastructure This review was undertaken using a specialist ICT auditor and examined a series of control objectives associated with management, security and control over the organisation’s network. Overall, a range of serious control weaknesses were identified which meant that only ‘minimal assurance’ over the control environment could be provided. The report included a number of high priority recommendations, relating to: • Improved change control procedures; • Management of network accounts; • Use of intruder detection settings; • Improved password controls and password settings; • Monitoring of unauthorised access attempts; • Weak backup and recovery processes; • Improved network penetration testing.

All recommendations arising from the report have been agreed with management and it is understood that immediate action is being taken to address the issues raised. Internal audit will obtain updates on progress in this area and will be undertaking a formal follow up review during 2011/12. Information Governance As part of the agreed audit plan, we undertook a review of the arrangements in place at ESFRS for meeting level 1 of the HMG Information Assurance Maturity Model. This is primarily intended to ensure that an effective governance framework is in place to protect the organisation’s information assets from unauthorised access, disclosure and modification. This was a high level review only, providing advice and assurance over the adequacy of the project management arrangements. Overall, we found project management arrangements were in place and progress was being made towards achieving level 1 compliance. We did, however, identify opportunities for further improvement relating to:

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• Breaking down some of the tasks within the project plan into further detail to enable more effective monitoring; and

• Introducing more regular project team meetings to make project management more efficient and to ensure that more up to date information on project progress (and slippage) is available.

The recommendations arising from this exercise have been agreed with the Assistant Chief Fire Officer and are to be taken forward by the Project Manager. Capital Contracts Audit This review examined two capital contracts to assess the adequacy of project management arrangements, including the effectiveness of monitoring and reporting in relation to cost, quality and timescales. Particular weaknesses were, however, identified in relation to recording and accounting for budgets within SAP, impacting upon the accuracy and reliability of financial monitoring and reporting. As a result of these findings, only partial assurance could be provided as to the adequacy of the control environment. All recommendations have been agreed with management and will be followed up by internal audit in 2011/12. Starters, Leavers and Variations to Pay Follow Up Internal Audit carried out a review of the Starters, Leavers and Variations to Pay processes for the Fire Authority as part of the annual audit plan for 2009/10. Due to the control issues identified at the time and the partial assurance audit opinion given, a follow-up review was undertaken in 2010/11 to assess the implementation of the original recommendations. Based on the work completed during the follow up and the progress made by management in implementing our previous recommendations, we are now able to provide substantial assurance that there is a sound system of controls in place. Bohemia Road Fire Station Following previous incidents of theft/loss of Personal Protective Equipment (PPE) and Mess Funds at the above station, internal audit undertook an unplanned review at the station in order to identify how the losses may have occurred and whether any improvements could be made to avoid future repetition. Whilst we were not able to establish exactly how the losses arose, we were able to recommend a range of improvements to station security and the management and control of Station Mess Funds (NB Station Mess Funds are privately held and are not the responsibility of the Fire Authority, however, the Service does provide advice on management and security of these funds). All recommendations were reported to senior management in order to ensure that the lessons learned can be shared with other stations across the service.

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Station Regularity Visits The main purpose of this review was to provide an opinion on the effectiveness of financial controls in community fire stations as part of the cyclical programme of station audit reviews. The review involved visits to three stations across the County examining compliance with Fire Authority Financial Regulations, particularly in relation to expenditure, security, staff claims processes and storage of fuel and equipment. Overall, internal audit was able to provide substantial assurance that a sound system of internal control is in place with only a small number minor recommendations being made, primarily in relation to ensuring the accuracy of records. Audit of Fundamental Accounting Systems The Fire Authority uses the main financial systems of East Sussex County Council (ESCC). Each year, internal audit reviews these systems as part of its programme of fundamental accounting system audits, with this work being directly relied upon by the Authority’s external auditors, the Audit Commission, for annual accounts purposes. The audit approach used for the Fire Authority (where ESCC systems are utilised and already subject to internal audit coverage as part of the ESCC internal audit plan) is to establish whether or not there are any variations between the systems adopted by the Fire Authority and those of East Sussex County Council, and to conduct additional testing where necessary. The carry forward 2009/10 fundamental accounting system reviews of Accounts Payable and Accounts Receivable were completed and reported on during 2010/11. In both cases, we were able to provide substantial assurance there that was a sound system of internal control in place with only a small number of low risk recommendations being made. In addition to the 2009/10 fundamental accounting systems audits above, the following reviews have been completed and reported as part of the 2010/11 programme: HR/Payroll (Audit Opinion: Substantial Assurance) General Ledger (Audit Opinion: Full Assurance) Pensions (Audit Opinion: Full Assurance) Accounts Payable (Audit Opinion: Substantial Assurance) Accounts Receivable (Audit Opinion: Full Assurance) It is pleasing to report that in all cases the audit opinion for these reviews has been either substantial or full assurance with only a small number of lower risk recommendations being made in relation to HR/Payroll and Accounts Payable.

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National Fraud Initiative (NFI) This is a statutory exercise carried out by the Audit Commission every two years and involved the submission during 2010 of data covering East Sussex Fire & Rescue Service employees, pensioners and creditors. Internal audit co-ordinated the data to be submitted and the results from the matching exercise were received during early 2011. The data is matched against other authorities’ records and the Department of Works and Pensions Benefits Agency to detect any possible errors or frauds. The results of the exercise are currently in the process of being analysed and are subsequent to further investigation where necessary. Investigations – Advice and Support During 2010, internal audit was asked to provide specialist advice and support to East Sussex Fire & Rescue Service managers in support of two separate employee related investigations. This advice related primarily to the investigation methodologies and maintaining appropriate standards of evidence.

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APPENDIX B

SUMMARY OF INTERNAL AUDIT WORK IN 2010/11

Areas 2010/11 Planned Days

2010/11 Actual Days

Preparation of 5-year Internal Audit Plan (incl. Risk Assessment)

3 3.1

Production of Annual Report and Opinion 2 2.2

Advice and Liaison with ACO (CS) / Reporting to Scrutiny & Audit Panel

4 8.2

Anti-Fraud (incl. National Fraud Initiative) 2 1.5

Follow-up Recommendations from previous reports

1 0.1

Precepting Arrangements 1 0.7

Starters / Leavers and Variations to Pay (Follow Up Review)

2 1.9

Retained Pay 10 19.6

Replacement HR Systems 3 0.0

Capital Contract Audit 5 6.7

Station Regularity Visits 5 5.1

Information Governance – Advice and Support

4 5.4

ICT Network Infrastructure and Security 10 16.7

2010/11 Fundamental Accounting Systems Work

18 22.1

09/10 Carry Forward Work:

09/10 Fundamental Accounting Systems 3 3.0

Unplanned Work:

Capital Grant Claim 0 2.2

Bohemia Road Station Visit 0 5.8

Investigations Advice 0 1.5

Total Days 2010/11 73 105.8

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APPENDIX C

SUMMARY OF PERFORMANCE INDICATORS FOR 2010/11

Performance Indicator Achievement

1

Draft reports are issued to management within 10 working days of the completion of audit fieldwork.

Not Achieved – the draft reports for two reviews completed within the year were issued slightly outside of the 10 working days target.

2

Final reports are issued to management within 5 working days of client response to the draft report.

Achieved – All final reports have been issued within 5 working days of the client response.

3

Consistently achieving adequate, or higher, quality gradings in surveys of auditor performance through client survey questionnaires.

Achieved – All client satisfaction surveys received confirmed the quality of the internal audit work with the majority scoring ‘good’ or higher.

4

Acceptance of at least 90% of audit recommendations.

Achieved – 100% of audit recommendations made in 2010/11 accepted by the client.

5

Completion of the plan by the 31st March each year. Any revisions to the plan or changes to planned coverage are subject to the approval of the Assistant Chief Officer.

Achieved – 2010/11 audit plan completed by 31 March 2011.

6

Providing adequate internal audit arrangements. This would be assessed by reference to the external auditor’s annual management letter.

Achieved – The Audit Commission continues to place reliance on the work of internal audit.

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Agenda Item No. 682

EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title of Report: Internal Audit – Assessment of Internal Audit Needs By: Treasurer Purpose of Report: To provide an updated assessment of Internal Audit Needs for

the period 1 April 2011 to 31 March 2016. RECOMMENDATION: The Panel is asked to approve the Assessment of Internal Audit

Needs. MAIN ISSUES 1. East Sussex County Council’s Audit and Performance Division has provided the

internal audit service to the Fire Authority since 1 April 1997. This service is now delivered based on a budget of 70 audit days.

2. The Audit and Performance Division is pleased to present the latest version of the

Assessment of Internal Audit Needs for the period 1 April 2011 to 31 March 2016 which is set out as Appendix A.

3. In accordance with the Code of Practice for Internal Audit, a formal Internal Audit

Charter for the Fire Authority was approved by the Scrutiny & Audit Panel in 2009 and is attached to this report as Appendix B. It is a requirement of the Code of Practice that this Charter is subject to regular review and this has been undertaken in 2011 with no changes being made.

Sean Nolan TREASURER 28 April 2011

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APPENDIX A

East Sussex Fire Authority

Assessment of Internal Audit Needs

1 April 2011 – 31 March 2016

Contents

1. Introduction

2. Internal Audit Plan 2011/12 3. Details of Audit Coverage 2011/12

4. 5 Year Rolling Strategic Plan 2011 - 2016 5. Performance Indicators 2011/12

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ASSESSMENT OF INTERNAL AUDIT NEEDS 1. INTRODUCTION 1.1 The attached Internal Audit Plan has been drafted as an updated assessment

of the internal audit needs of the Fire Authority covering the period 1st April 2011 to 31st March 2016. The assessment of internal audit needs is based on an internal audit risk analysis exercise, the Fire Authority’s Corporate Risk Register and consultation with the Assistant Chief Officer (Corporate Services), the Assistant Chief Officer (People and Organisational Development), the Assistant Chief Fire Officer (Service Support) and the Deputy Treasurer. This work helps to determine the audit strategy by focussing audit resources against areas of higher risk. The plan also takes into account current issues facing the Fire Authority and the latest risk register.

1.2 Internal audit provide a service for the Fire Authority in accordance with the standards laid down by the CIPFA Code of Practice and the ESCC Internal Audit Manual. 1.3 Internal audit review, appraise and report upon the effectiveness of the internal control environment established by the management of the Fire Authority. It is the responsibility of management to establish and maintain appropriate systems of internal control. 1.4 In addition to the completion of the Internal Audit Plan, audit staff supports the management of the Fire Authority by providing informal advice and assistance through discussion of key issues as they arise throughout the year. 1.5 The assessment of internal audit needs includes the programme of audit work

for the period 1 April 2011 to 31 March 2016. However, it is important to note that whilst the programme covers a five year period, the activity set out within years 2-5 (2012/13 – 2015/16) is indicative only and is subject to revision as part of the annual audit planning process.

1.6 East Sussex Fire Authority is subject to audit and inspection by other bodies,

in addition to internal audit, including the external audit of the accounts. These additional sources of assurance have been taken into account, primarily through discussion with the ACO (Corporate Services), when preparing this audit plan. The Audit Commission, as the Fire Authority’s external auditor, have also been consulted on the content of the plan.

1.7 In order to monitor and further improve the quality of the internal audit service

provided, a range of performance indicators can be found under Section 6 of this report.

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2.0 EAST SUSSEX FIRE AUTHORITY – INTERNAL AUDIT PLAN 2011/12 Areas Planned

Days 1 MANAGEMENT AND GOVERNANCE Preparation of five year Internal Audit Plan (incl. risk assessment,

assessment of internal audit needs and planning for individual reviews) 3

Production of Annual Report and Opinion 2 Advice and Liaison with ACOs / Reporting to Scrutiny and Audit Panel 4 Corporate Governance and Corporate Risk Management Arrangements 3 East and West Sussex Collaboration / Merger Proposals 5 Anti-Fraud (incl. National Fraud Initiative) 2 Follow-up Recommendations from previous reports 1 Sub Total 20 2 FINANCE Precepting Arrangements 1 Strategic Financial Management - Contingency and Future Resilience 3 Capital Programme / Contract Audit – Follow Up 3 Sub Total 7 3 EXPENDITURE/PURCHASING Review of the Procure to Pay Process 10 Sub Total 10 4 PERSONNEL / PAYROLL Retained Pay - Follow Up Review 3 Replacement HR Systems 7 Sub Total 10 5 INCOME

No specific audits this year – income controls are covered within the Accounts Receivable Review under Fundamental Accounting Systems work (see below).

0

Sub Total 0 6 ASSET MANAGEMENT No specific audits this year 0 Sub Total 0 7 STATION REVIEWS Station Regulatory Visits (x3) 5 Sub Total 5 8 ICT AUDIT

ICT audit work for 2011/12 to be determined following a detailed risk assessment exercise early in quarter 1.

TBC

Sub Total 0 9 FUNDAMENTAL ACCOUNTING SYSTEMS Fundamental Accounting Systems Work 18 Sub Total 18 Contract Plan Days for 2011/12

Carry forward from 2010/11 TOTAL DAYS for 2011/12

70 0 70

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3.0 DETAILS OF INTERNAL AUDIT COVERAGE 2011/12

Management 3.1 Internal audit is responsible for the completion of the following:

- Annual risk analysis - Assessment of internal audit needs - Rolling five year strategic plan - Annual report and Opinion - Liaison with the Assistant Chief Officer - Liaison with the External Auditors to ensure best use of audit resources

overall - Reporting to the Scrutiny and Audit Panel - Following-up of previous audit recommendations - Finalising previous year’s reports

Risk Management 3.2 A short follow up to a previous review of risk management to examine the

extent to which audit recommendations have been implemented, focussing in particular on the effectiveness of strategic risk mitigation measures.

East and West Sussex Collaboration / Merger Proposals

3.3 In view of the potential for significant change, and associated risk, through the

possible collaboration or merger between East and West Sussex Fire Services, some provision has been made within the 2011/12 Internal Audit Plan to provide independent advice and support, particularly in terms of risk management, governance and internal control. Clearly, the extent of this work will depend on outcome from the current feasibility work and the timing of any subsequent activities. Anti Fraud

3.4 Anti-fraud work for 2011/12 will focus on overseeing the analysis and investigation of the results of the Audit Commission’s National Fraud Initiative 2010. This may also include conducting formal investigations into any examples of fraud or error which may arise. Finance – Precepting Arrangements

3.5 The review will ensure that the processes used in calculating the precepting figures for the Fire Authority are robust and that the calculations are verified and checked prior to publication.

44

Finance – Strategic Financial Management Contingency and Future Resilience

3.6 This work will examine and advise upon arrangements within the Fire Authority

for ensuring the continuity of strategic financial management services in the event of the loss of key, long standing members of staff.

Finance – Capital / Contract Audit Follow Up 3.7 A follow up review to assess implementation of previous recommendations

made as part of a Capital Projects audit in 2010/11, which resulted in a ‘partial assurance’ audit opinion. Expenditure/Purchasing – Review the Procure to Pay Process

3.8 A full systems based audit covering the complete procure to pay process within including procurement, ordering, goods receipting, invoice processing and VAT. Key control testing will be undertaken to satisfy the Audit Commission’s requirements for Accounts Payable as part of the managed audit arrangements. Personnel/Payroll – Retained Pay Follow Up

3.9 This will be a follow up review following an audit of the retained pay process in

2010-11, which resulted in only ‘partial assurance’ being provided over the control environment. The follow up will assess implementation of our previous recommendations and the progress made by management to improve internal controls.

Personnel/Payroll – Replacement HR Systems

3.10 Provision has been made within the Internal Audit Plan for 2011/12 to provide

advice and support on risk, internal control and probity issues as part of the project to procure, develop and implement a new corporate HR system. This is a continuing project with significantly more internal audit input likely to be required in future years.

Station Reviews

3.11 As part of an ongoing programme of visits, internal audit undertake audits at a sample of fire stations across the region. The work will include an examination of station security, the procedures and responsibilities for reconciling and managing petty cash, management of fuel and vehicle mileage and the adequacy of local personnel and payroll information.

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ICT Audit 3.12 Following a review of ICT Network Infrastructure in 2010/11 which identified a

range of key ICT control weaknesses, and resulted in only ‘minimal assurance’ being provided over the control environment, a more comprehensive ICT risk assessment will be performed for 2011/12, in order to identify future audit needs. This work is to be performed using specialist ICT audit resources but unfortunately will not be completed in time for inclusion in this report. It has however been agreed with the Assistant Chief Officer (Corporate Services), that any ICT reviews arising from the needs assessment and planned for 2011/12, would be funded separately, over and above our 70 contract days. Fundamental Accounting Systems

3.13 The Fire Authority uses the main financial systems (Payroll, Accounts Payable, Accounts Receivable, Pensions and General Ledger) of East Sussex County Council. Each year, internal audit review these systems as part of its fundamental accounting system audits to ensure the systems have adequate controls in place. The approach used for the Fire Authority is to establish whether or not there are any variations between the systems adopted by the Fire Authority and those of the County Council. Where such variations exist, additional testing of controls will be conducted.

3.14 We will continue to liaise with the Audit Commission, the Fire Authority’s

external auditors, to ensure they can rely on our work for final account audit purposes.

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4.0 ROLLING STRATEGIC PLAN 2011/12 –

2015/16 2011/

12 2012/

13 2013/

14 2014/

15 2015/

16

1 MANAGEMENT & GOVERNANCE Preparation of five year Internal Audit Plan

(incl. risk assessment, assessment of internal audit needs and planning for individual reviews)

3 3 3 3 3

Production of Annual Report and Opinion 2 2 2 2 2

Advice and Liaison with ACOs / Reporting to Scrutiny and Audit Panel

4 4 4 4 4

Corporate Governance and Corporate Risk Management Arrangements

3 - 5 - 5

East and West Sussex Collaboration / Merger Proposals

5 8 5 - -

Anti-Fraud (incl. National Fraud Initiative) 2 1 2 1 2

Follow-up Recommendations 1 1 1 1 1

Sub Total 20 19 22 11 17

2 FINANCE

Precepting Arrangements 1 1 1 1 1

Budgetary Control – Delegated Financial Management

- 5 - 5 -

Strategic Financial Management – Contingency and Future Resilience

3 2 - - -

Capital Programme / Contract Audit 3 - 10 - 5

Borrowing and Investments - - - 5 -

Sub Total 7 8 11 11 6

3 EXPENDITURE/PURCHASING Procure to Pay Processes 10 - - 10 5

Sub Total 10 0 0 10 5

4 PERSONNEL / PAYROLL

Starters / Leavers and Variations to Pay (Follow Up)

- - 5 - -

Retained Pay 3 - - 5 -

Replacement HR Systems 7 10 5 - -

Travel and Subsistence / Overtime - - 4 - 9

Pensions Arrangements - - - - 5

Sub Total 10 10 14 5 14

PAGE 1 TOTALS 47 37 47 37 42

47

2011/

12 2012/

13 2013/

14 2014/

15 2015/

16

5 INCOME

Income Generation from Training Activities - - - 5 -

Debtors - Raising of Accounts / Recovery (incl. Special Service Calls).

- 5 - - -

Sub Total 0 5 0 5 0

6 ASSET MANAGEMENT

Asset Management – Write Off and Disposal of Equipment

- - - 5 -

Insurance - 5 - - 5

Sub Total 0 5 0 5 5

7 STATION REVIEWS Station Regularity Visits (x3) 5 5 5 5 5

Sub Total 5 5 5 5 5

8 ICT AUDIT

ICT Audit Coverage to be Confirmed TBC TBC TBC TBC TBC

Sub Total TBC TBC TBC TBC TBC

9 FUNDAMENTAL ACCOUNTING SYSTEMS

Fundamental Accounting Systems Work 18 18 18 18 18 Sub Total 18 18 18 18 18

PAGE 2 TOTALS 23 33 23 33

28

ACTUAL TOTALS (PAGES 1 AND 2) 70 70 70 70 70

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SUMMARY OF PERFORMANCE INDICATORS FOR 2011/12

Performance Indicator Achievement 1

Draft reports are issued to management within 10 working days of the completion of audit fieldwork.

2

Final reports are issued to management within 5 working days of client response to the draft report.

3

Consistently achieving adequate, or higher, quality gradings in surveys of auditor performance through client survey questionnaires.

4

Acceptance of at least 90% acceptance and implementation of audit recommendations.

5

Completion of the annual internal audit plan by the 31st March each year. Any revisions to the plan or changes to planned coverage are subject to the approval of the Assistant Chief Officer.

6

Providing adequate internal audit arrangements. This would be assessed by reference to the external auditor’s annual management letter and the results of Triennial Reviews.

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Agenda Item No. 683EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title: Operational Assessment (2010 – 2012) By: Chief Fire Officer & Chief Executive Purpose of Report: To update the Panel on the progress of the operational

improvement plan.

RECOMMENDATION: The Panel is asked to note the progress against the operational improvement plan.

MAIN ISSUES

1. The operational improvement plan was agreed by the Panel at its meeting in October

2010, with six-monthly updates beginning in April 2011. The current version of the improvement plan is attached as a separate document, Appendix A to this report, for Members of the Panel, and is available on the internet or by request to the Clerk to the Fire Authority.

2. The original improvement plan consisted of 23 main tasks, which then contained a further

54 milestones. The Panel is asked to acknowledge the completion of 11 tasks and 34 milestones in this first update.

3. The completed tasks are now marked in green, tasks underway and on target are in

orange. Tasks not yet started or behind schedule are now shown in red. 4. An evidence portfolio is being created to track evidence against completed tasks; this will

lessen the burden of any future operational assessments and will provide an effective audit trail.


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51



Date: 26 May 2011

Title: Value for Money and Business Audit Programme for 2010/11 Progress Report

By: Chief Fire Officer & Chief Executive

Purpose of Report: To advise the Scrutiny & Audit Panel on the progress made on the Value for Money and Business Audit Programme for 2010/11.

RECOMMENDATION: The Panel is asked to note the report.

MAIN ISSUES

1. A programme of Value for Money Reviews (VfM), Business Reviews (BR) and Business Audits (BA) for 2010/11 was approved by the Scrutiny & Audit Panel at its meeting on 18 March 2010. This report summarises the progress made on the agreed programme.

2. From a total of 5 reviews/audits planned for 2010/11, the VfM review on Information Management Systems has been completed and appears as a separate report on the agenda. The VfM review on Estates Management is complete in draft form but needs to be approved by the Review Owner. The finalised report will be brought back to the Panel at its next meeting. One mini VfM review on the Borough Command structure has been completed, and the outcomes reported at Corporate Management Team and summarised in the Appendix for the Panel. The remaining mini VfM review on the Home Safety Advisory Service was not completed within the year due to the secondment of a review team member into another role earlier this year. It is anticipated that this will be completed at the end of May. One task and finish audit on the performance indicators has been completed and the outcomes summarised in this report.

3. Fire Authority Members continue to lead on Value for Money Reviews, and Member commitment continues to provide added value towards reaching sound and robust conclusions and improvement opportunities in Service provision. In addition, the Fire Authority methodology for conducting Business Reviews and Value for Money Reviews remains a valuable tool. The use of key business questions in relation to the ‘3 Es’ – Economy, Efficiency & Effectiveness – has been productive in terms of providing a sound benchmark to conduct the reviews. The application of the scoring system provides consistency in outcomes enabling both Corporate Management Team and the Scrutiny & Audit Panel to focus upon key areas for performance improvement.


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APPENDIX A

VALUE FOR MONEY AND BUSINESS AUDIT PROGRAMME FOR 2010/11

1. INTRODUCTION

1.1 A programme of Value for Money Reviews (VFM), Business Reviews (BR) and Business Audits (BA) for 2010/11 was approved by the Fire Authority at its meeting on 18 March 2010. This report summarises the progress made on the agreed programme.

1.2 Members may wish to note that it was agreed at the March meeting to manage the programme differently this year with a reduction in the number of reviews being undertaken. This change came from the expressed desire of the Panel to strengthen scrutiny reviews allowing more Member Leads to be appointed to the key reviews. The number of trained business auditors used in the programme was also reduced, replaced by the performance management core team to lessen overall training commitments and ensure improved continuity in the major reviews. However, one member of the team was seconded into another role earlier this year which meant that the last remaining review has not been completed to the year end deadline but has slipped into next year’s programme.

2. WORK PROGRESS AT 31 MARCH 2011

2.1 The Panel is asked to note the progress made on the 2010/11 programme as identified in the following paragraphs.

2.2 VfM Review: Information Management Systems – 100% complete

2.2.1 This review is complete and a separate report was approved by CMT and is included in the confidential part of the Scrutiny & Audit Panel agenda.

2.2.2 Outcomes

2.2.3 The Review was led by Councillor Tony Freebody and undertaken on the Information Management Department (IMD). The review objectives were to demonstrate value for money, including proposals to identify 5% efficiency savings over the medium term, as well as to provide a direction of travel towards continuous service improvement. The work in IMD together with the Service Prioritisation work has ensured that the value for money review target has been met.

2.2.4 Significant improvements were introduced under the direction of the new Head of Information Management (HoIM) from the time of his appointment in Mid 2010. Regrettably, he resigned whilst still within his probation period for a more senior appointment in commerce. The Review identified that there had been substantial investment by ESFRS to support IMD staff in gaining specialist IT qualifications. A more rigorous review process for all fixed contract renewals has been introduced, thereby reducing expenditure.

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2.3 VfM Review : Estates Management – 95% complete 2.3.1 This review commenced under the leadership of Councillor Harmer-Strange and is

a follow up review to the one conducted in 2007/8. The team concentrated on customer satisfaction, project management of building works, minor works/defect programme and post work inspection processes. The draft report is complete and is in the process of being shared with the Review owner and will reported at the next Panel meeting.

2.4 Mini VfM Review: Borough Command Structure – 100% complete 2.4.1 This review is complete and had been considered by CMT. 2.4.2 Outcomes 2.4.3 Overall, the Borough Command Structure was scored as Established – Performing

well. The review team noted that Borough Commanders were empowered to utilise the resources under their control in order to meet the strategic aims and objectives of the Fire Authority.

2.4.4 Partner agencies commented positively on the work Borough Commanders (BCs)

carry out in partnership, the Joint Action Groups being cited as an effective forum for working on partnership strategies. They suggested BCs were very proactive in looking at different ways of working and, in certain cases, partner agencies started to look at how their own organisations could work differently through these arrangements. One agency was very impressed that Community Fire Stations could be used for all types of community event, one of which they organised with great support from the Borough.

2.5 Mini VfM Review: Home Safety Advisory Service – 60% complete 2.5.1 This review is well underway but, due to the secondment of one of the team

members into another role, this review has slipped into next year. The team is working to the agreed scope, including looking at business intelligence and an assessment against approved VFM methodology for economy, efficiency and effectiveness.

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2.5.2 Outcomes 2.5.3 The review will meet the agreed scope of the review and define outcomes for each

of the key areas but there are no further details currently available for reporting. 2.6 Task & Finish Audit: PI 142 (iii) Number of accidental fires in dwellings. 2.6.1 One task and finish review was completed during the year on the performance

indicator that monitors the number of accidental fires in dwellings. 2.6.2 Outcomes 2.6.3 The review found that the existing quality assurance needed to be further

strengthened and additional training given to staff to ensure that the correct definitions were being adhered to. This training had commenced in terms of staff in the Mobilising & Control Centre who are responsible for the Quality Assurance process on the new Incident Recording System (IRS) and will be further enhanced by a programme of retraining for Junior Officers who are responsible for completing the IRS forms. A comprehensive training guide has been written and both sets of training will be completed in the first quarter of this year.

3. CONCLUSIONS 3.1 The Panel may wish to note that the outstanding review from the 2010/11

programme is expected to be completed by the end of May 2011.

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Date: 26 May 2011

Title: Progress Review of False Alarms from Automatic Fire Detection Systems for the period 1 December 2010 to 31 March 2011


Purpose Of Report: To inform the Panel of the performance results for false alarm calls from automatic fire detection systems from 1 December 2010 – 31 March 2011 following the introduction of the CFOA Protocol.

RECOMMENDATION: The Panel is asked to note: (i) the statistics for false alarm calls; (ii) the reduction in the number of calls to the previous ‘top twenty’

repeat offenders; and (ii) the further actions being taken to reduce the incidence of

unwanted fire signals.

MAIN ISSUES

1. At its meeting on 14 January 2010, the Fire Authority approved the appointment of a person, on a temporary contract, to reduce unwanted fire signals by 20%. Measures introduced in December 2010 by the Service have resulted in a month on month downward trend, achieving a 15% drop in the month of March 2011 alone.

2. Despite this downward trend, the current levels of unwanted signals from Automatic Fire Detection (AFD) systems continue to place an unacceptable burden on the Service in terms of cost, disruption to work and increasing the risk to Service personnel and other road users as a result of appliances responding at speed to calls. As detailed in this report, the strategy incorporating the national Chief Fire Officers’ Association (CFOA) Protocol is beginning to address the burden of unwanted signals. However, it is apparent that some Fire Alarm Monitoring Organisations / Alarm Receiving Centres (FAMOs/ARCs) are stating they are following the CFOA Protocol, but there is evidence to suggest that this is not the case.

3. Overall, there has been a significant reduction in the number of calls to false alarm apparatus. However, this figure is still higher than expected and the reduction is less than the 20% reduction target, and an 11% drop was delivered. This is due to a number of sites with systems that are unsuitable for their respective buildings, or which are not being maintained adequately. This requires the Service to educate and encourage the owners/managers of those premises to address such issues quickly and effectively.


Previous Reports Fire Authority – annually in September

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1. CLASSIFICATION OF FALSE ALARM CALLS 1.1 False Alarms are those calls where the Fire & Rescue Service needs to take no action.

These can be further broken down into broad headings: (i) False Alarm Good Intent – where there is reason to believe that the Fire & Rescue

Service attendance is needed. Automatic Fire Detection Systems (AFDs) can give a signal indicating correctly that smoke or fumes from a fire under control are present and has reached the operating threshold for the system. These are classified as False Alarm Good Intent.

(ii) False Alarm Malicious – where the caller is maliciously making a call or operating a

call point knowing that there is not a fire (where the person is in a Psychiatric Unit receiving treatment the call is recorded as False Alarm Good Intent).

(iii) False Alarm Apparatus – where the alarm is raised by an Automatic Fire Detector

(AFD) system responding to a non-fire condition. 1.2 The Service attends a number of calls to Automatic Fire Alarms (AFAs) and these are

defined as either Domestic or Commercial AFAs (AFAD or AFAC). The post holder has been employed to reduce the number of AFAs to Commercial premises and some Domestic premises that the Service can have an influence over under the Fire Safety Order.

2. INCIDENTS ATTENDED IN PROPERTIES COVERED BY THE FIRE SAFETY ORDER 2.1 Table 1 below provides an analysis of the number of AFA incidents attended in

properties covered by the Fire Safety Order, since the introduction of call challenging procedures at the start of December 2010, until the end of the financial year on 31 March 2011, against the same period in the previous year.

Table 1. Number of AFAs attended in properties covered by the Fire Safety Order

1 Dec–31 March 2009/10 1 Dec–31 March 2010-11 % Change 2009/10 to 2010/11

1,218 1,084 -11% 3. AUTOMATIC FIRE DETECTION SYSTEMS (AFD) 3.1 Overall, there has been a significant reduction in the number of calls as a result of false

alarm apparatus. However, this figure is still higher than expected and the reduction is less than the 20% reduction target, and an 11% drop was delivered. This is due to a number of sites with systems that are unsuitable for their respective buildings, or which are not being maintained adequately. This requires the Service to educate and encourage the owners/managers of those premises to address such issues quickly and effectively.

3.2 Since December, the Mobilising & Communications Centre (M&CC) has actively been

challenging 999 calls resulting from alarms from AFDs and no longer mobilises to confirmed false alarms. Also introduced was the facility to stop appliances en route to an incident, should a subsequent phone call be received confirming the cause of the alarm being activated was not a fire.

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3.3 ESFRS continues to use other initiatives to reduce the number of unwanted fire

signals. This is being achieved through Press Releases, posting guidance and providing advice and a range of guidance and downloadable documents on the Service web site. Two examples are attached as Appendices A and B. Ultimately, depending on the use of the building, the Service can and does take enforcement action under fire safety legislation, requiring staff training and maintenance of fire alarm systems.

3.4 The Service is encouraging all Alarm Receiving Centres (ARCs) and Telecare Service

Operators to reduce the numbers of unwanted fire signals forwarded to ESFRS by introducing ‘call challenge’ in their processes. In line with the CFOA Protocol, we have asked operators to call back any premises with an AFA alarm actuation, to filter out confirmed false alarms. As part of this work, we have written to all our Fire Alarm Monitoring Organisations (FAMO) and ARCs asking them to challenge the calls they receive from AFA protected premises. We received affirmative replies from most. However, it has been noticed that false alarm calls from FAMO/ARCs did not seem to reduce as expected.

3.5 M&CC operators are instructed not to challenge calls from FAMO/ARCs (as per the

CFOA Protocol). However, some FAMO/ARC staff have told us that it is not 'their' policy to call challenge, and yet we have letters on file from their companies, confirming they are call challenging. This is being addressed with each of the FAMO/ARCs involved, and robust measures have now been introduced in light of these findings.

4. TWENTY MOST FREQUENT ATTENDANCES TO SITES/PREMISES WITH

FALSE ALARMS FROM AFDS IN PREMISES COVERED BY THE FIRE SAFETY ORDER

4.1 Our priority has been to work with AFA Repeat Offenders (sites giving us the most

unwanted fire signals) and, by holding face-to-face meetings, to work with them to assist in finding safe and effective solutions. As a result of this pro-active work False Alarms fell by 4% (against the previous year) in December 2010, 12% in January 2011, 15% in February and 15% in March 2011.

4.2 Table 2 (Appendix C) shows the top twenty sites/premises most frequently attended

in response to AFD calls from 1 December 2010 to 31 March 2011. These premises were jointly responsible for 210, or 19.4 %, of all false alarm apparatus calls covered by the Fire Safety Order (2010/11). This compares with a total of 530 or 12.3 % of all calls in 2009/10 for the same period.

4.3 There has been a change in the way the top twenty offending sites/premises are

identified. Because of the way that some multi-premises sites monitor their automatic fire alarm systems and pass the call to the Service, these are recorded as one premises. For example, the University of Sussex campus is a complex of over 50 buildings yet is recorded as one premises. Nine of the top twenty premises are in the City of Brighton & Hove, this compares with 14 the previous year.

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4.4 Secondly, the number of incidents attended needs to be taken into context of the

size of the premises. The larger the premises the greater the number of detectors likely to be present, thus the likelihood of a greater number of calls. Whilst we are aiming for no unwanted fire signals, the new CFOA Protocol document details what is an acceptable rate of false alarms against the number of detector heads present. Again, a large site like the University of Sussex will have many thousands of detector heads; a medium site hotel may only have 100 – 200 detector heads.

4.5 The premises identified in the top twenty list of calls has required a considerable

amount of work to be done in partnership with these previously identified problem premises to reduce the number of incidents attended. For the majority of sites, this has resulted in some quite dramatic falls in the number of calls received.

4.6 The Service has also become aware that some premises managers do not wish the

Service to implement its AFA policy in respect to their premises and individual meetings will take place to address their concerns.

4.7 Table 3 (Appendix D) shows the top twenty sites from the 2009/10 reports, along

with the total number of calls attended in 2010/11 between 1 December and 31 March. As can be seen from Appendix D, considerable progress has been made with a number of sites/premises to reduce the number of unwanted fire signals. However, the dramatic reduction in the number of the top 20 premises is not reflected in the overall reduction. This is due in part to a large number of premises that are having only 1 or 2 calls.

5. CALLS CHALLENGED BY CONTROL 5.1 A number of new AFA classification codes have been set up, so ESFRS-challenged

calls can be monitored more effectively. There are two main categories: Calls to AFAs where no attendance is made are classified as a Fire Alarm Challenged call (FACh); Calls that are mobilised and subsequently the crews are stood down/returned are classified as Fire Alarm Returned (FARn). This has only been active since late February 2011. During the month of March 2011, 27 calls were challenged and a further 24 were returned.

6. RECENT AND FUTURE DEVELOPMENTS 6.1 The focus of the AFA Integrity Manager (AFAIM) has been to reduce unwanted fire

signals by 20% as soon as possible. The final stage of this process will be to reduce attendance to an AFA – cause unknown, to one pump, in line with the CFOA Protocol. Community Risk Management has agreed to help assess whether this could be introduced 24/7 or whether there will need to be risk-based exemptions. Following consultation and the necessary publicity, it is hoped to introduce this aspect of the CFOA Protocol before Autumn 2011.

6.2 The AFAIM has been liaising with his counterpart in West Sussex Fire & Rescue

Service throughout, with the aim of both Services having the same policy.

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6.3 Unwanted fire signals are the ‘symptom’ of false alarms that most affect the Fire &

Rescue Service. Once the 20% reduction has been achieved by focusing on the symptoms, the AFAIM will address the cause. False alarms are caused by: too many detectors; the wrong type of detector; the incorrect siting of detectors; poor management or poor training; or a combination of these. This situation can only be improved by working with the AFA premises’ Responsible Person, to help them review their Fire Risk Assessment to help the cause reducing unwanted fire signals as much as possible. When this is achieved, an alarm from the premises will probably indicate a fire and ESFRS will then mobilise accordingly. It is the aim of ESFRS to get every AFA protected site to this standard.

6.4 Since last year’s report, the Localism Bill has had its second reading in Parliament

and this proposes to reintroduce the facility to allow Fire Services to charge for attending false alarms. If this becomes law and the Fire Authority decides in which circumstances we will charge, this could have the benefit of further reducing unwanted fire signals.

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APPENDIX A

61

APPENDIX B

62

APPENDIX C Table 2

Twenty Most Frequent AFD Attendances

1 December 2010 – 31 March 2011

Premises Station Area Total Sussex University 4 38 Royal Sussex County Hospital 5 30 Warrior Square 8 15 Brighton General Hospital 5 13 The Terraces 5 11 Royal Terrace 8 10 Varley Halls of Residence 4 9 Priory Meadow 8 8 Stanley Court 4 8 Fred Emery Court 4 7 New England House 4 7 Beaufort Court 8 6 Chase Protective Coatings 20 6 Eastbourne District General Hospital 11 6 Esperance Private Hospital 11 6 Harewood Court 2 6 Mary Burfield Court 21 6 My Tuxedo 11 6 Saint James House 5 6 University of Brighton 4 6

Total 210

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APPENDIX D Table 3

Table 3 Twenty Most Frequent AFD Attendances to premises covered by a fire safety order from 1 December to 31 March 2009/10 compared with 2010/11

Ranking Premises 2009/10 2010/11 1 Sussex University 37 38 2 Brighton Seafront Regeneration 22 2 3 Joan Hughes Court 18 1 4 Royal Sussex County Hospital 17 30 5 University of Brighton 14 6 6= Harewood Court 10 6 6= Regency Square 10 0 8 Buxted Park Hotel 9 0 9= Brighton General Hospital 8 13 9= Mary Burfield Court 8 6 9= Old Ship Hotel 8 1 9= Varley Halls of Residence 8 9 9= Warrior Square 8 15 14= Christchurch Court 7 0 14= Eversfield Place 7 0 14= Gardner Books 7 0 14= Middle Street 7 0 14= Saint James House 7 6 14= Saint Mary in the CA 7 0 14= Stanley Court 7 8 Total 226 141

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Agenda Item No. 686

EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title: Corporate Risk Review and outcomes 2010/11 By: Chief Fire Officer & Chief Executive Purpose of Report: To report on the latest review of Corporate Risk and to

summarise the key outcomes achieved in 2010/11 RECOMMENDATION:

The Scrutiny & Audit Panel is asked to approve the contents of the report including the proposed amendments to the agreed corporate risks.

MAIN ISSUES 1. POLICY FRAMEWORK 1.1 East Sussex Fire Authority has an approved Corporate Risk Management Policy,

which helps to ensure Corporate Governance risk management arrangements are maintained. The effective monitoring of strategic risks to both the Fire Authority and ESFRS remains a critical function to support the wider governance arrangements.

1.2 The arrangements identify corporate risks as ‘above the line’ and ‘below the line’. If

they are ‘above the line’, their impact and likelihood of occurrence are at a level sufficient for the risks to be considered by the Scrutiny & Audit Panel and the ‘below the line’ risks are monitored by Principal Officers. Both are reviewed by CMT prior to Panel consideration.

2. INDEPENDENT AUDIT OF ARRANGEMENTS 2.1 A previous internal audit of our Corporate Risk Management has been undertaken

and the audit score received was that of ‘substantial assurance’. The management action plan agreed is attached as Appendix 1 for Member information which, in principle, seeks to tighten up on the information contained in the risk mitigation plans rather than there being anything fundamentally wrong with our arrangements. This is reassuring. The findings are being actioned.

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3. FIRE AUTHORITY BUSINESS AGENDA THAT MANAGES IDENTIFIED

STRATEGIC CORPORATE RISKS IN MEDIUM TERM 3.1 The majority of the key corporate risks are linked with our strategic service planning,

integrated risk management, resource management and performance framework agendas managed by the Fire Authority; the Policy & Resources Panel which is forward looking; and the Scrutiny & Audit Panel which covers governance, scrutiny and performance review. Appendix 2 summarises the key outcomes as reflected in the year’s business activity reports which are linked to our identified Corporate Risks. The Panel is asked to consider the outcomes of the work undertaken in 2010/11 to ensure ESFRS sustains best practices, continues to ensure its main business agenda is aligned to these identified risks so that they are reduced or, where this does not prove possible, that they are mitigated against in the long term.

4. QUARTERLY REVIEW OF CORPORATE RISKS 4.1 Reviews of corporate risk take place on a quarterly basis. The latest series of

meetings with Corporate Risk Owners has been carried out during April 2011 to update risk management action plans and review the position of each risk. The Panel is asked to note that all risk management action plans have been updated following individual reviews for each risk owner to monitor and review each action plan in line with Service key task areas and other service delivery objectives.

4.2 Through these one to one reviews with relevant Corporate Management Team

members, there is now one new corporate risk identified which relates to Information Management Security.

4.3 Change to existing ‘Above the Line’ corporate risks managed by the Panel 4.3.1 Following consideration by Corporate Management Team at its April 2011 meeting,

it is recommended that the ‘Above the Line’ Risk 35 RCC/Firelink be downgraded from CII to CIII (see Appendix 3) so it will become a ‘Below the Line’ risk managed by Corporate Management Team for the foreseeable future and that it should be renamed ‘Inadequate local preparations for the future of mobilising following cancellation of RCC’.

4.3.2 The mitigation plan will be amended accordingly. 4.4 Changes to existing ‘Below the Line’ corporate risks managed by Corporate

Management Team 4.4.1 Risk 34 is proposed to be reduced to ‘Below the Line’ from CII to CIII as all business

contingency plans are in place for operational needs.

67

4.4.2 As highlighted in 4.3.1 above, Risk 35 is proposed to be reduced to ‘Below the Line’ and renamed. There are no other national issues on the horizon and full contingency planning arrangements are in place with our current mobilising arrangement should any future problem arise. The previous mitigation plan will be held on file but has also been used to develop the new one for the strategic change in direction.

4.4.3 It has been proposed by Corporate Management Team at its April 2011 meeting to

delete the Below the Line Risk 1 – Inability to achieve effective succession planning in line with the Service requirements from the corporate risk register. This will remain as a potential future risk for re-implementation at any future date, with the mitigation plan kept under review to ensure previous improvements are not lost.

4.4.4 As highlighted in 4.2 above, a new ‘Below the Line’ risk has been proposed covering

Information Management Security. This is both in response to the national agenda to heighten information management security under the HMG Security Framework and our own corporate project to achieve ITIL standards in information management which is an externally accredited quality framework. Not withstanding these developments, a recent internal audit report undertaken by specialist consultants has identified issues in relation to information security that are being addressed as a matter of priority. The draft mitigation plan is attached as Appendix 4 for approval.

4.5 Summary of latest position 4.5.1 In summary, and subject to the Panel’s approval of these proposals: i. 0 risks are proposed to be added ‘above the line’; ii. 1 risk is proposed to be added ‘below the line’ on Information Management

Security as Risk Number 42; iii. Risk 34: Sustained adverse/extreme/abnormal weather is recommended to

be reduced from ‘above the line’ to ‘below the line’; iv. Risk 35 is recommended to be reduced from ‘above the line’ to ‘below the

line’ due to the cancellation of RCC and renamed: ‘Inadequate local preparations for the future of mobilising following cancellation of RCC’;

v. 1 risk is proposed for removal from ‘below the line’ (Risk 1: Inability to achieve effective succession planning in line with Service requirements);

vi. 0 risks are proposed to be enhanced in grading for Impact or Likelihood within these categorisations – although some other risks have heightened, but are not considered to warrant an enhancement to a higher level;

vii. 4 risks will then remain be ‘above the line’; and viii. 16 risks will then be ‘below the line’. 4.5.2 Appendix 3 provides a latest summary of risks and changes proposed since the last

review (S&A Panel January 2011). 5. DEVELOPMENT OF CORPORATE GOVERNANCE AND RISK MANAGEMENT

TRAINING 2010/11 5.1 Corporate Risk Management training has taken place in November 2010 and March

2011 for both Senior/Middle Managers by Zurich consultants in line with previous arrangements. .

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6. CORPORATE RISK MANAGEMENT OUTCOMES 2010/11 6.1 Subject to any further changes between when this report was written and the year

end: • There have been two risks, which have been able to be removed entirely in

2010/2011 from the corporate risk management system (Authority receives disappointing external assessment and Inability to achieve effective succession planning in line with Service requirements).

• There have been no legal cases brought against ESFRS in 2010/11 although it is understood that an Employment Tribunal case is now being sought by a previous employee who left in 2010/11.

• There have been no proven cases of fraud or corruption. • There have been compensation claims, although claims received in

relation to Marlie Farm are being handled by Zurich, as our insurers. • The Fire Authority continues to be held in high regard by its public in

comparison to regional benchmarking results. • The business activity/performance outcomes relating to each corporate risk

agreed within 2010/11 are identified in Appendix 2 to further reduce the risks in the long term.

Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 19 April 2011

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Appendix 1 EXTRACT OF INTERNAL AUDIT REPORT ON ESFRS CORPORATE RISK MANAGEMENT ARRANGEMENTS 6.0 MANAGEMENT ACTION PLAN Corporate Governance-Risk Management Arrangements, ESFRS; Date: 18 January 2010 Para Ref.

Recommendation Priority Agreed Name and Job Title of Person Responsible

Comments Date of Implementation

R1 Principal Officers should be advised of the need to complete all fields within the risk management action plans.

* Yes Corporate Risk Support Manager (CRSM) on behalf of ACO (CS).

First reminder issued August 2009. Regular checks to be made by CRSM as Risk management Action Plans reviewed by POs on a quarterly basis.

August 2009

R2 To ensure that the relevance of mitigation measures is understood by recipients of the Risk Management Action Plan, responsible managers should be requested to include adequate detail regarding actions and controls commensurate with other supporting documentation/adequate cross-referencing.

* Yes Principal Officers as the responsible managers for each Risk Management Action Plan.

Reminder sent to Principal Officers by CRSM. Action Plans updated as required.

December 2009 March 2011

R3 Responsible managers should be asked to ensure that dates in the key dates column are either future dates, if there is required management action, or are left blank if the action/control is already in place.

* Yes Principal Officers as the responsible managers for each Risk Management Action Plan.

Reminder sent to Principal Officers by CRSM. Action Plans updated as required.

December 2009 March 2011

Recommendations made to management in the management action plan are categorised by ‘star ratings’. A one star rating (*) is given in respect of findings, which, although relatively minor and low risk, provide an opportunity to improve the control arrangements

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Appendix 2 FIRE AUTHORITY BUSINESS ACTIVITY AND PERFORMANCE OUTCOMES

ACTIVITY IN 2010/11 TO REDUCE/MITIGATE APPROVED CORPORATE RISKS

ABOVE THE LINE RISKS PERFORMANCE OUTCOMES FOR 2010/11 RISKS

7

Effective internal communications

• ESFRS internal communications through Let’s Talk and Outlet are now mature

• Core Briefing working effectively for key operational or corporate information dissemination to every member of staff + formal feedback

• Principal Officers station visit programme formalised and working • Strategic Seminars regular events, well attended and other

management seminars reformatted to address differing needs • Intranet management and updating of key documents improved • Policy Support Team providing key policy information to assist

senior managers in flagging up issues of importance • Consultation and engagement processes met latest IRMP needs

10

Achieving Corporate Aims & Objectives in current Financial Climate

• Strategic Aims being achieved as monitored within the Improvement Plan monitoring arrangements

• Revamped and reprioritised capital programme to meet reduced medium term resources

• IRMP is delivering capital receipts from Service Housing over next 4 years to plough back into future operational infrastructure

• Corporate service prioritisation programme undertaken in 2010/11 to meet medium term financial targets based upon 25% reduction in formula grant over next 4 years

34

Sustained adverse/extreme/ abnormal weather

• Business Continuity arrangements enacted and sustained for winter conditions in January and national flooding exercise undertaken recently. Debriefing took place on business productivity due to sustained cold weather and staff problems attending their normal places of work. Practical measures undertaken regarding issue of snow socks for response cars and enhanced access to ESFRS business system from home for key individuals.

37

Failure to respond effectively to the economic downturn

• The Fire Authority continues to address its key service planning and resource management priorities through the plans reduced and is aware of the implications on reduced levels of resources on its spending plans for the medium term.

• The 3-year Community Risk Management Plan is supporting sustaining service delivery standards by considering different resource models and potential improvements in efficiency and effectiveness of both staff and use of assets.

39

Member Training • Member Lead oversees Member Development programme • Members’ Seminar programme is in place 2010/11

71

BELOW THE LINE RISKS PERFORMANCE OUTCOMES FOR 2010/11 RISKS

3

Compliance with new excellent Equality Standard (CRE)

• Equality and diversity improvements are being progressed beyond last year’s Equality Standard assessment to meet the new compliancy criteria to an agreed corporate action plan

4 Ineffective partnership working

• Long term partnership targets continue to be met • ESPP and City Strategic Partnerships are strong and ESFRS is a

partner in achieving identified service targets

5

Significant IT failure

• Policy notes being devised to strengthen information management systems and security

• Enhancement to ICT network awaits outcome of partnership tendering exercise

• Servers in situ at stn11 to operate as dual network server for the Service business infrastructure improvements in HQ generator supplies resolved

• UPS systems upgraded at Service HQ • Further improvements agreed and being implemented as funding

approved

6

Operational incident performance below agreed standards

• 10 year targets achieved in 2009/10 • Conclusions on 2010/11 results awaited following ¾ year results

11

Failure to deal with key performance/ competence issues

• Performance reports now improved following introduction of E-IRS regarding operational response performance across ESFRS

• E-IRS quality checking completed on primary fires and outcomes addressed

• Community profiling work continuing • Borough Commanders reporting quarterly to CMT on performance

results in relation to their respective local business plans

12 Regional Management Board

• Amended arrangements agreed regionally – business plan priorities being delivered by ESFRS as required

15

Compensation • Marlie Farm civil claims being managed by Zurich • Other compensation claims minimal and linked to minor claims

which it is not worth claiming on insurance

16

Cost of pension scheme rises disproportionately to revenue settlement

• Current pension projections inbuilt into medium term planning projections

• Annual efficiency savings identified due to excellent record in number of ill health retirements

• National pension changes being monitored actively re Hutton Review and potential implications for ESFRS

72

BELOW THE LINE RISKS PERFORMANCE OUTCOMES FOR 2010/11 RISKS

19

Corporate Capacity • Overall staffing levels sustained, recruitment targets met and shortfall in RDS staff now largely resolved.

• Sustained and organisational development investment continues in personal development of all personnel as well as enhanced programmes for middle and senior management operational and generic management skill development

• Member development has been a major area of work in 2010/11 which has been Member led and supported by the ACO (POD) to strengthen Member leadership

• 68 senior and middle managers have received one day’s training on corporate strategies, governance, contract management, risk management, delegated management and project management by Zurich and ESFRS senior officers

• the Fire Authority continues to address its key service planning and resource management priorities and is aware of the implications on reduced levels of resources on its spending plans

24

Legislation • Strategic Aims, supporting business plans linked to key expectations in FRS legislation and related FRS framework document

• HR/Equality legislation requirements in medium term resource plans where remaining fixed asset investments are still required

• ESFRS proactive in promoting new legislation in relation to management of explosives, sprinklers and pensions

• Localism Bill being kept under review – Members’ Seminar update already completed

• Role of CFO&CE on CFOA and other national bodies sustained in relation to strategic change agenda

31 Pandemic Flu • The pandemic flu outbreak has been managed within the

context of the Service’s absence management and business continuity plans as will other health pandemics

35

Inadequate national, regional and local preparations for the migration to Firelink and then RCC systems

• All agreed work programmes for Firelink completed but decision taken not to proceed with RCC. And now local solution must be found

41

Future Industrial Action • Current review of existing performance policy • Current review of Contingency Plans • Development Strategy and agreement with representative

bodies for Gold and Major incidents currently being created.

40

Occupational Road Risk

• Relevant manual notes have been revised and are in circulation for consultation before publishing.

• Road Risk group has been re-organised to better align with significant risk areas.

• All driver records currently being updated. • Refresher courses arranged (in priority order). • 3 year Driver Training plan produced

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Appendix 3 CORPORATE RISK REGISTER for approval by Panel in May 2011 – with further changes highlighted

A 10

B 37 C 31, 34, 35 7, 34, 35,

39

D

4, 6, 11, 24, 1, 3, 5, 12, 15,16,19, 40,41, 42

E F

Like

lihoo

d

IV III II I

Likelihood: A Very high B High C Significant D Low E Very low F Almost impossible Impact: I Catastrophic II Critical III Marginal IV Negligible

Impact

‘Above the line’ Risks

PO Lead

Risk Status

Impact of January 2011 Review

Impact of April 2011 Review

7 Effective internal communications

ACO (POD)

CII No change to risk rating No change to risk rating

10

Achieving Corporate Aims & Objectives in current Financial Climate

CFO&CE

AII No change to risk rating No change to risk rating

34 Sustained adverse/extreme/ abnormal weather

DCFO CII No change to risk rating Reduce from CII to CIII

35

RCC/Firelink DCFO CII No change to risk rating – although slippage has occurred on RCC. Firelink completed.

Reduce to below the line Clll, rename ‘Inadequate local preparations for the future of mobilising following cancellation of RCC’

37 Failure to respond effectively to the economic downturn

CFO & CE

No change to risk rating No change to risk rating

39

Member Training on strategic issues including risk management

CFO & CE

CII No change to Risk Rating Proposed new risk rating

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‘Below the line’ Risks

PO Lead

Risk Status

Impact of January 2011 Review

Impact of April 2011 Review

1

Inability to achieve effective succession planning in line with service requirements

ACO (POD)

DII No change to risk rating Proposed deletion from Risk Register, all actioned has been completed

3 Compliance with new excellent Equality Standard (CRE)

ACO (POD)

DII No change to risk rating No change to risk rating

4 Ineffective partnership working

DCFO DIII No change to risk rating No change to risk rating

5 Significant IT failure ACFO DII No change to risk rating No change to risk rating -

6 Operational incident performance below agreed standards


11 Failure to deal with key performance / competence issues


12 Regional Management Board (new arrangements)

CFO DII No change to risk rating No change to risk rating

15

Compensation ACFO DII No change to risk rating No change to risk rating

16

Cost of pension scheme rise disproportionately to revenue settlement

ACO (CS) DII

No change to risk rating No change to risk rating

19

Corporate Capacity DCFO CII No change to risk rating No change to risk rating

24

Legislation CFO DIII No change to risk rating No change to risk rating

31 Pandemic Outbreak DCFO Clll No change to risk rating No change to risk rating

40 Occupational Road Risk

ACFO DII No change to risk rating No change to risk rating

41 Future industrial action

DCFO D11 No change to risk rating No change to risk rating

42

Protect Security work streams aimed at the vulnerability to terrorism and reduce the risk of information loss or misuse information owned or managed by ESFRS

ACFO - - Suggest commence at CII for initial monitoring by CMT

G:\SPG\CFA\AGENDAS 2000 onwards\Being converted to pdf\11-05 - S&A agd.pt1.doc Saved Document on 18/05/11

75

APPENDIX 4 RISK MANAGEMENT ACTION PLAN

Title: Risk or Misuse of Information PO Responsible: ACFO Date: April 2011 Risk No.

Initial Score

Revised Score

Description –

42 CIII Protect Security work streams aimed at the vulnerability to terrorism and reduce the risk of information loss or misuse information owned or managed by ESFRS

Ownership Audit & Controls already in

place. List plans, procedures and contracts, etc.

Required management action & control measures.

Responsibility for action - name

Critical success factors & KPIs

Review frequency

Key dates

ACFO

Work stream analysis taken from the HMG Security Policy Framework Oct 2009. Compliance is measured against current practice within

Project tracker is maintained, achievement of level one of the HMG IA Maturity by 31st May 2011

CRSM

All

Quarterly

31 May 2011

ACFO

Creation and maintain an ESFRS Security breach risk log

Update register as advised, regular check and conclusion of outstanding issues

CRSM All

Quarterly

Ongoing

ACFO

Identified Asset Control Managers, review of Policies procedures and current security procedures within organisation

Review, update or create appropriate policies. Awareness training by tip sheet, intranet net, policies, manual notes and workshops

CRSM All

Quarterly

Ongoing

1 of 2

Threat Level Below the Line


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Ownership Audit & Controls already in place. List plans, procedures and contracts, etc.

Required management action & control measures.

Responsibility for action - name

Critical success factors & KPIs

Review frequency

Key dates

ACFO

Current status of project update is communicated to CMT.

Annual or as appropriate CMT reports are issued.

ACFO All Annually March 2011 Completed Apr 2012

ACFO

Internal Audit to Audit HMG Security Policy Framework implementation with ESFRS, as part of the internal audit and governance programme

Internal Audit to measure current status against level 1 of the maturity model matrix for HMG Security Policy Framework

ACFO All Annually March 2011 Completed April 2012

ACFO

Internal Audit Review of Information Management Security

Agree and implement action plan once approved by CMT

ACFO All Monthly June 2011 for next report to CMT

2 of 2

Manager’s Statement of Assurance (SIN): Review date: Signed off:


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Date: 26 May 2011

Title: Managing the Risk of Fraud – Update


Purpose of Report: To update the Panel on the completion of the latest self-assessment relating to the latest Audit Commission best practice document entitled ‘Protecting the Public Purse – fighting fraud against local government and local taxpayers’ and to advise on the current status of the earlier risks identified within the previous Managing the Risk of Fraud review.

RECOMMENDATION:

The Panel is asked to note the summary of the assessment against the issues raised in the Audit Commission’s latest document as set out in Appendix A and to note the current status of the previous review set out in Appendix B.

MAIN ISSUES

1. A review of the ESFRS processes for Managing the Risk of Fraud was reported to the Scrutiny & Audit Panel at its meeting in May 2008 (Minute 436). The tasks identified were all completed by June 2010. Access to whistleblowing leaflets has been re-issued to all employees. Further training has taken place on corporate governance and other compliancy issues and a further review has been undertaken with the ESCC finance team in relation to progress with the internal audit risk assessment template orginally reported to the meeting in January.

2. In October 2010, the Audit Commission released a second national report called ‘Protecting the Public Purse – fighting fraud against local government and local taxpayers’. The report identifies specific risks that are often not adequately addressed within local government. This report encourages reassessment of local authority counter fraud plans and seeks to ensure that organisations ensure that staff understand and have faith in whistleblowing arrangements. Officers have been through the internal risk assessments and the checklist recommended within the report, namely Personal Budgets (direct Payments), Procurement, and Housing and Council Tax benefits.

3. A summary of the outcomes of relevant risks identified within the Audit Commission’s report ‘Protecting the public purse ….’ is set out as Appendix A, and Appendix B sets out the current status of the risk assessment levels identified within ESFRS regarding the earlier Managing Risk of Fraud review.

Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 13 April 2011


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Previous Reports: Scrutiny and Audit report May 2008 Scrutiny and Audit report January 2010

Background Papers: CIPFA Managing the Risk of Fraud Self Assessment Anti Fraud and Corruption Strategy for ESFRS Whistleblowing Management Audit Commission National reports: ‘Protecting the Public Purse:Local Government fighting fraud and fighting fraud against the local government and local tax payer’


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Appendix A Summary of the Audit Commission’s conclusions and ESFRS position.

Personal Budgets (Social Care) The provision of Personal budgets (direct payment) was considered by officers of ESFRS. Personal budgets relates to the provision of adult social care in England, currently costing over £16 billion each year. There is no risk on this issue for ESFRS as we do not provide or work within the social care field described within the Audit Commission report. Housing and Council Tax Benefits The Officers within ESFRS also reviewed Housing and Council Tax Benefit advice. Again, this reference and actions relate to almost £22 billion of housing and council tax benefit paid by councils in 2009/10. There is no risk on this issue for ESFRS as we do not provide these services. Procurement Procurement Councils and local agencies (representing the Government spend of around £80 billion each year buying goods and services from suppliers). There is currently no credible estimate of the level of procurement fraud in local government. As a consequence of recent legislative changes, authorities may be exposed to the risk of additional costs in accordance with European Procurement Directives. This could mean unsuccessful bidders challenge the process and the Authorities could face direct financial loss or possible claims for financial compensation. In such cases, courts may set aside a signed contract thus involving the authority in more cost in undertaking the procurement process again. Cartels are an example of widespread, costly and damaging fraud and are illegal. A cartel is an agreement between businesses not to compete with each other. The agreement is usually in secret, oral and informal. Imposed fines total £129 million on 103 construction firms found guilty of unlawful collusion with competitors. On 13 April 2011, it was announced by the European Commission that Unilever and Proctor & Gamble were fined 315 million euros (£280 million) for price fixing in eight European countries. The Office of Fair Trading and CIPFA have produced joint guidance on good practice including:

Effective Corporate Arrangements, by comparing arrangements with good practice; Proper arrangements for reporting suspected fraudulent or unethical behaviour; Including procurement on Internal Audit programmes; and Ensuring frauds detected and lessons learned are shared effectively throughout the

organisation.


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Fraud may occur at any stage through the procurement process. Areas that were identified within the report were:

• Business case/specification favours one supplier. • Personal Interests not disclosed. • Analyse Markets: approved list of contractors not used. • No robust due diligence undertaken. • Information not provided to all bidders. • Cartels operating. • Material criteria ignored. • Undue weighting applied to favour a specific bidder. • Poor performance monitoring and management. • Weak verification procedures for completed work. • Lack of effective review process. • Failure to learn from lessons from previous contracts.

Officers of ESFRS reviewed the examples of potential risks within procurement as highlighted above and have made the following assessments:

1. Business case/specifications favours one supplier

This is where procurement fraud can involve more than one person, i.e. an employee(s) of the organisation, an external contractor or sub-contractor and any combination of these colluding to perpetrate a fraud. Evidence produced included the written procedures with Contract Standing Orders and the Members’ Handbook; procurement staff advising and helping to draw up tenders and assist with evaluations. No-one within ESFRS was able to procure and sign off contracts of works and invoices, other internal checks and controls, project control management arrangements requiring a lessons learnt exercise to take place. The persons interviewed were the Strategic Finance Manager, Budget Control Manager, Contracts & Insurance Manager, Estates and Procurement Managers.

As such, the risk assessment level was determined as Low.

2. Personal interests not disclosed An employee potentially involved in the procurement process could either have an informal or formal relationship with a third party contracting or supplying services to the authority.

Members and employees of the Fire Authority have clearly defined procedures to follow as set out in the Members’ Handbook Section F – Codes and Conducts for Members and Employees; Anti-Fraud and Corruption Strategy; and the Contract Standing Orders. Access to this information is also available on the ESFRS Intranet and leaflets are also produced and issued to staff.

Annually, a declaration is sent out to all ESFRS managers involved with budgets and procurement requesting that any declarations are recorded and decisions made as to whether the interest may or could lead to the potential of influencing procurement of goods and services.

The persons interviewed were the Strategic Finance Manager, Contracts & Insurance Manager and Estates Manager.

As such, the risk assessment level was determined as Low.


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3. Approved Contractor lists The approved list of contractors should be effectively managed. An approved list may have been correctly or incorrectly created and may also be mismanaged by authorised employees to favour contractors consistently over other contractors on the list. ESFRS procedures are identified within the ESFRS Members’ Handbook 2010 edition, Sections C (Standing Orders), D (Financial Regulations), E (Delegated Functions) and F (Members and Fire Authority Employees). Related Manuals also reviewed were the CPS-02-01 Contracts and the Code of Practice and CPS-04-01-03 Standing Orders Contracts and Tenders. CMT approval was required for the ‘Approved Contractor and Consultant List’ for a three year period, up until December 2010. This has been amended so that a Principal Officer now authorises the contractors’ list. Advertisements within publications are sent out every three years and all contractors on the current list are asked whether they wish to remain on the list. Financial performance and scoring of applicants is completed externally by ESCC – if an inadequate number of contractors apply, then application to supplement is sought from Construction Line, approved by the Fire Authority in December 2003. Contractors each have an annual works value which is not exceeded, as well as an individual tender value. Contractors are also rated for different trades and various listings are created and agreed, based on the key areas of specialist work covered by the contractor. After all contracts are completed, there is a scoring of the work including: work undertaken, performance of contract, time and budget performance, the duty of care to employees of ESFRS and relevant persons within East Sussex County Council and Brighton & Hove City Council. Rotation is given to contractors to facilitate equal opportunity; this factor is applicable for all works. However, consideration is given to the type of work, the professional skills available and the availability of the contractor. The persons interviewed were the Strategic Finance Manager, Contracts & Insurance Manager and Estates Manager. As such, the risk assessment level was determined as Low. 4. No robust due diligence undertaken This is where a number of tender evaluation tests should take place involving either a business or person prior to signing a contract in order to establish that they will act within certain standards of care, financial standing and legal compliance. The key criteria used are Compatibility, Financial, Legal & Environment and Management. All contractors provide pre-qualifying data in their tender submissions and more than one person makes the assessments. A scoring matrix is pre-agreed and appropriate evidence is sought for all legal certification, policies and procedures.


82

Expert financial appraisals are carried out by external organisations such as ESCC on behalf of ESFRS. All relevant information is assessed and, again, no one individual decides who selects which contractor to fulfil the contract or procurement. Documents reviewed included Contract Standing Orders, Financial Regulations contained within the Members’ Handbook and the latest Contract Template. The persons interviewed were the Strategic Finance Manager and Contracts & Insurance Manager. As such, the risk assessment level was determined as Low. 5. Information is not provided to all bidders This is where an organisation tendering for business does not receive the same information as other bidders to enable it to submit an adequate tender, either in the original tender document or subsequently. All pre-qualifying and tender submissions are sent to all interested parties. Where any organisation seeks clarification of a question, the question and the ESFRS response are sent to all bidders not just the organisation seeking the information. Questions and related documents are approved and sent out complete and all scorings record every answer. Documents reviewed were the Members’ Handbook, Contract Standing Orders, CPS.02-01.v2 ESFRS Procuring and Best Value policies The persons interviewed were the Strategic Finance Manager and the Contracts & Insurance Manager As such, the risk assessment level was determined as Low. 6. Cartels Cartels are agreements among competing firms that normally include price fixing, marketing or production collusion. There have been increases in identified cases relating to the building industry. Proving the existence of a cartel is rarely easy as organisations are usually not so careless as to put such agreements on paper. No actual documentation could be found within ESFRS policies and procedures directly relating to cartels, although our Pre-Qualification Questionnaire, tender evaluation and procurement processes should help to minimise such risks. Whistle blowing would be another method for identifying such practices and ESFRS adequately promotes whistle blowing in leaflet form and on our internet and intranet. The persons interviewed were the Contracts & Insurance Manager and the Budget Control Manager. As such, the risk assessment level was determined as Low.


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7. Material criteria ignored This is where a specification of materials is identified at the tender stage and interested parties are advised of the specification, but a selected contractor is allowed to change the materials, and ESFRS ignores the changes made. All procurement issues are identified within Tender Procedures and Contract Standing Orders which establish that changes cannot be made without following a formal process. Monitoring of this procedure is assessed by the Contracts & Insurance Manager and the Strategic Finance Manager. As such, the risk assessment level was determined as Low. 8. Poor performance of monitoring and management 9. Lack of effective review process 10. Failure to learn from previous lessons from contracts The above issues relate to continued poor performance, and the symptoms are over-run on project times scales, over-budget, failure to deliver to the contract specification, ineffective communication, lack of review and monitoring process and repeatedly not learning or putting appropriate measures in place to improve delivery. Documentation reviewed included the Members’ Handbook, Contract Standing Orders and the tender and contract template and the project control documents. It was identified that a contract monitoring and review process is delivered largely by the Estates Manager, Procurement Manager and Contracts & Insurance Manager. Monitoring and recording is also completed with the project control documents, monitored by the Project Co-ordinator. The persons interviewed included the Estates Manager, Procurement Manager and Contracts & Insurance Manager. This risk assessment level was determined as Medium in relation to the risk of poor performance as some contracts have overrun in terms of timescales, budgets, etc, but the ESFRS policies and procedures are kept under review, particularly project management controls, and improved as required based upon lessons learnt over time.

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Annex B Summary of the Risk Assessment Levels identified within ESFRS regarding Managing the Risk of Fraud. (ESFRS adopted ESCC internal Risk Assessment process for managing the Risk of Fraud).

Potential fraud risk area Extreme Level

High Level

Medium Level

Low/Negligible Level

Cash Handling 0 0 0 5 Accounts Receivable 0 0 0 9 Accounts Payable 0 0 0 9 Payment Instruments 0 0 0 11 Stocks and Stores 0 0 0 3 Assets 0 0 1 7 Contracts 0 0 0 11 Loans and Investments 0 0 0 2 HR Payroll 0 0 1 11 Claims and Expenses 0 0 0 9 Insurance 0 0 0 5 Governance 0 0 0 7 IMD 0 0 0 10 Grants 0 0 0 1 Totals 0 0 0 100

Assessing Risk 'Impact' Risk Type Extreme High Medium Low / Negligible Financial £ Millions £ Hundreds of

thousands £ Thousands < £1,000

Reputation Complete loss of public

confidence

Poor reputation Adverse publicity Unfavourable media comment

Assessing Risk

'Likelihood'

Almost Certain Likely Moderate Chance Unlikely / Rare

Frequency More than one or two cases a year for past 2

years

One or two cases in past 2

years

One or two cases in the past 5 years

No previous instances

The two medium risks identified within ESFRS are:

Failure to asset-mark or stock-control low value items purchased at stations on procurement card

Moderate Chance

Meeting to review protocols and procedures with Dir of RR, Strategic Finance Mgr, Budget Control Mgr, Procurement Mgr and Corporate Risk Support Mgr

Abuse of hours/attendance Moderate

Chance ACO POD and Head of HR are working on new HR system and exploring MIS system generated by Performance Management Team expected to be resolved. Feedback is expected by May 2011

85

Agenda Item No. 688EAST SUSSEX FIRE AUTHORITY


Date: 26 May 2011

Title of Report: 2010/11 4th Quarter Performance Results


Purpose of report: To present the 4th quarter performance indicator results for 2010/11.

RECOMMENDATION:

The Panel is asked to: i. note the 2010/11 performance results for Quarter 4 as set out

in the report and complementary Appendix A; and ii. consider the information included within the exceptions report

set out as Appendix B.

MAIN ISSUES

1. This report contains the Quarter 4 performance indicator results for 2010/11, compared with the results for the same quarter in 2009/10.

2. In terms of the overall performance this year, of the Fire Authority’s priority areas, 67% are on target and 33% are not on target at the end of quarter 4.

3. The Panel is reminded that our strategic ‘Top 40’ performance indicator targets continue to expect performance improvement across the entire Service, even despite the overall success of our performance improvements gained over the last 10 years and, in particular, within 2009/10. However, in many areas, it is also accepted that both the rate and scope of future improvement is now slowing, and some of our targets for 2010/11 and the future trends reflect this position. In some areas, performance improvement will prove ever harder to achieve without smarter targeting of risk and community need. This is where the Service is striving to ensure all available information and tools at our disposal achieve even tighter targeting of services to the most vulnerable in our local communities in future years.

4. The Scrutiny & Audit Panel approved a new format for performance indicator reporting at its meeting in September 2010. The report provides a simple Red, Amber, Green traffic light system. It was also agreed that where particular indicators show two or more reds, these would be subject of a more detailed exception report than the ‘comments’ system previously in use.

5. The new style of presentation shows each of the indicators by strategic objective and the red, amber, green status along with the numeric value. Please note that there are a number of indicators that are new for this year and, therefore, they have neither a target set nor previous years’ data with which to compare performance. These indicators appear as blank circles in the reports and a key is provided for ease of use.

6. The main performance outcome summary is set out as Appendix A.

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7. The supporting exception report is set out below as Appendix B. Officers responsible

for those indicators where two or more reds are shown have sought to explain the variances in performance and provide a short commentary on the actions needed to address the current downturn in expected performance. Further analysis of these variations in expected performance has been prepared for the responsible officers to further explain at the meeting.

8. Wherever available, the Performance Management Team will provide more detailed

analysis on a quarterly basis to those responsible officers to support them in determining the courses of action most appropriate to get performance back on track. This is in addition to the more detailed performance information already supplied across the Service on a monthly basis.

9. The Panel is asked to note that several National Indicators have been removed from

the National Indicator Set (NIS) in line with the Government’s proposals to scrap the NIS reference list. As such, we have been informed that East Sussex County Council has, with immediate effect, deleted two indicators which form part of our Top 40. The first of these is NI 110 (ESL 9 young people’s participation in positive activities) as the Government cancelled the ‘Tell Us Survey’ with immediate effect and this indicator was dependent on this survey for its completion. The second to be deleted was NI 188 (ESL 11 planning to adapt to climate change). As no data will be available for either of these indicators these have been removed from the top 40 set. NI 186 (ESL 10 per capita reduction in CO2 emissions) has not been reported as ESCC has stated this indicator is reported 21 months in arrears, so the data for 2010/11 will not be available until September 2012.

10. The Panel is asked to note that a number of ESFRS indicators have no year end

result: C7 (Reduction in CO2) and Env 1 (To achieve a 3.5% reduction in CO2 emissions from energy usage in premises and fleet usage per annum), due to problems with the metering and accounts which the ESCC Energy Section is currently trying to resolve; E1 (To provide a framework for FRS work on business continuity for benchmarking and ongoing improvement) – the service is waiting for further definitive guidance for this indicator from CFOA before it can be implemented; NI 47 (People killed or seriously injured (KSI) in road traffic accidents in Fire Authority's area), as the year end data is not yet available from Sussex Safer Roads. This also affects the local indicators ESL 9 (People killed or seriously injured (KSI) in road traffic accidents NI47 for East Sussex only)) and BHL1 (People killed or seriously injured (KSI) in road traffic accidents (NI 47 for Brighton & Hove only)) for the same reasons. Finally, Par 1 (100% of our partnership activities deliver their specified community outcomes or they are terminated/reworked) is currently under review and the data required for the calculation of Fin 2 (To ensure community safety services are afforded an increasing proportion of the annual budget spend) was unavailable for this report.

Des Prichard Chief Fire Officer & Chief Executive 28 April 2011

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Appendix B

EXCEPTION REPORTS – QUARTER 4 2010/11 Indicator Commentary Actions to be taken Responsible

Officer 143(ii) Number of injuries in accidental dwelling fires

We have not met the target for injuries in accidental dwelling fires this year. The target was 60 and we have reported 68 injuries. The majority of the injuries happened in the last 2 quarters of the year. There were a number of multi casualty fires in those quarters, e.g. 4 in one incident in Peacehaven just before Christmas. It has not been possible to find the reasons at this stage as to why there were such a large number of injuries in the latter half of the year and if this is a known trend. Also, the target for the total number of injuries in primary fires was met and is nearly 50% below the target, yet the injuries in accidental dwelling fires exceeded the target Lastly, we had less accidental dwelling fires than the target, we met the target for the number of premises where no smoke alarm was fitted and met our attendance times. These are all factors which, if we were off target, could explain the increase, but we still had more injuries than expected

Review trends over time of year against previous years figures. Review this target against indicator NI 49C.

Director of Response and Resilience

FS3 Reduction of automatic fire alarms in properties covered by a FSO

The target of a 20% reduction of automatic fire alarms in properties covered by a Fire Safety Order (FSO) has been missed. There was overall an increase of 0.9% (34) on the previous year. However, since work began contacting Fire Alarm Monitoring Centres in December 2010, quarter 4 saw a 13.9% decrease on the previous year, a reduction of 124 attendances at AFA incidents.

Unfortunately, the high numbers of AFAs in the first three quarters of the year meant the AFA total overall was going to be high. Since the implementation of the AFA reduction policy in December, numbers have fallen in the quarter 4. It has become apparent that some are stating they are following the CFOA protocol and clearly they are not. This is being actioned.

Director of Prevention and Protection

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Indicator Commentary Actions to be taken Responsible Officer

B2 Inspections of high risk premises

The target of 900 for 2010/11 has been missed, 666 audits were completed.

In total, there have been 901 inspections carried out during 2010/11, which will lead to a full audit. There are a variety of reasons why an audit cannot be completed, which in the main is beyond our influence. Analysis of the SAFFIRE database and the outcome of the Fire Safety Audit review will assist in improving target setting and clarifying definitions of what we actually want to measure in the future.

Director of Prevention and Protection

12(ii) – Shifts lost to sickness – all staff

The increase in staff sickness has meant we have failed to meet the target. The year end result is 9.15 (against a target of 7.5 shifts per employee). Over the year, wholetime (W/T) sickness has increased by 1,063 shifts against the same period last year (a 38% Increase). This is mainly due to long term sickness, which has increased by 64% against the previous year (1,211 shifts to 1,989 shifts). However, M&CC sickness has decreased by 19% against the previous year. Support staff sickness has increased by 17% (220 shifts), which can all be attributed to medium term sickness which has increased by 284 shifts on the previous year.

Quarter 4 has seen a decrease in all areas of sickness on Quarter 3 (with the exception of mid term sickness in support staff which has increased). However, sickness is up against the same quarter last year. From examination of the statistics, the increase in WT sickness is largely attributable to muscular illnesses (accounting for 47.5%), mental illnesses (accounting for 10.7%), and cold and flu type illnesses (accounting for 18.3% of absence). Absence for support staff is mainly attributed to colds and flu (33%). However, there was no long term sickness in M&CC for the second quarter in a row. Procedures on attendance have been strengthened in the past 12 months, a review of these will be undertaken and advice from Occupational Health is being sought in relation to the number of muscular/bone injuries and potential trends.

ACO POD

Breakdown of Sickness 2009/10 2010/11 WT - Short term sickness 1,041 1,226 WT - Med. term sickness 534 635 WT - Long term sickness 1,211 1,989 M&CC - Short term sickness 107 158 M&CC - Med. term sickness 75 88 M&CC - Long term sickness 178 45 Support - Short term sickness 533 549 Support - Med. term sickness 220 504

Support - Long term sickness 569 489

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Agenda Item No. 689 EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title: Draft Value for Money and Business Audit Programme Scoping

Statements for 2011/12. By: Chief Fire Officer & Chief Executive Purpose of Report: To seek the Panel’s endorsement of the draft Value for Money

Review and Business Audit (BVR) Programme 2011/12 to 2015/16 and the scoping statements for 2011/12 reviews.

RECOMMENDATION: The Panel is asked to approve: i. the 2011/12 to 2015/16 Value for Money Review and Business

Audit/Review programme attached as Appendix A; and ii. the draft scoping statements for the 2011/12 Value for Money

Review and Business Audit programme attached as Appendix B. MAIN ISSUES 1. The Panel approved the previous Five Year Value for Money Review Business Audit

programme for 2010/11–2014/15 inclusive at its meeting in May 2010. Progress on the 2010/11 annual programme is the subject of a separate report on the agenda (item 683).

2. The aim of the report is to seek the Panel’s approval for an amended Value for Money

and Business Audit/Review programme for 2011/12 to 2015/16 (Appendix A) and to seek approval for the draft scoping statements attached as Appendix B. Currently, the programme is a roll forward of the previous programme, with some minor changes. The task and finish review heading has been broadened so that resources from the performance and review team may be reallocated to issues that may arise from the future potential work burdens arising from increased collaboration and possible merger.

3. The scoping statements have been prepared jointly with the responsible Managers to

ensure that the review programme supports previously approved IRMP Annual Action plans, the Fire Authority’s service improvement agenda, and improved efficiency requirements.

4. Two Member Leads are required to manage the Value for Money programme and it has

been suggested that Councillor Ost leads on the first review (Procurement) but a second Member lead is required for the review of Engineering Services. The arrangements agreed last year were that any Member selected to lead a VFM review who is not already a member of the Panel would be co-opted on to it for the purposes of the review and would also be able to claim a special responsibility allowance if not already entitled to one.

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5. The Head of Performance Management and team manage the corporate co-ordination of the Value for Money Review/Business Audit & Review programme activity on behalf of the Panel and CMT. The Programme has allowed for some flexibility for the Service to respond to dynamic issues that may emerge during the business year including, for example, operational debriefs or investigations.

6. Progress with the reviews is reported to the Panel on a quarterly basis. CMT is also

provided with monitoring information on the progress made and will provide direct guidance and support accordingly.

7. There are no other issues pertinent to this report. Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 5 May 2011

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APPENDIX A AMENDED FIVE YEAR VALUE FOR MONEY REVIEW & BUSINESS REVIEW/AUDIT PROGRAMME 2011/12 TO 2015/16 (UPDATED MARCH 2011)

YEAR 1 – 2011/12 Value for Money Reviews Unchanged * Procurement – proposed as Councillor Ost Unchanged * Engineering Services – Member Lead is needed Mini Value for Money Reviews Unchanged Scrutiny of Community Safety Partnership initiatives using evidence

from newly proposed proformas (continued work from 2007/08 BVR) New Organisational Development Communications Business Reviews and Audits Unchanged ROSPA QSA on H&S management systems (triennial programme) Amended Task and finish reviews on performance indicator results and other

issues that may arise External Scrutiny Unchanged * Customer Service Excellence Unchanged * Service Prioritisation

YEAR 2 – 2012/13 Value for Money Reviews Unchanged * Devolved Financial Management – Councillor Terry Fawthrop proposed

currently Unchanged * Environmental Strategy review – Councillor Sven Rufus proposed

currently Mini Value for Money Reviews Unchanged Performance Management Framework – systems compliance New Operational Planning and Policy Business Reviews and Audits Unchanged IRMP outcomes for all phases of 3 year IRMP programme Amended Task and finish reviews on performance indicator results and other

issues that may arise External Scrutiny Unchanged * Customer Service Excellence Unchanged * Service Prioritisation

*High priority items to be achieved before other work undertaken

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YEAR 3 – 2013/14 Value for Money Reviews Proposed to be deleted

Regional Control arrangements and interface with ESFRS systems

Unchanged * Special Services Mini Value for Money Reviews Unchanged Strategic Planning/ Strategic Intelligence for ESFRS business

requirements New Corporate Governance and Risk Management Business Reviews and Audits Unchanged Community Risk Management outcomes Amended Task and finish reviews on performance indicator results and

other issues that may arise External Scrutiny Unchanged * Customer Service Excellence Unchanged * Service Prioritisation

YEAR 4 – 2014/15 Value for Money Reviews Unchanged * Technical Fire Safety Unchanged * Health and Safety Mini Value for Money Reviews Unchanged External Financial Services Unchanged External Legal Services Business Reviews and Audits Amended Task and finish reviews on performance indicator results and

other issues that may arise External Scrutiny Unchanged * Customer Service Excellence Unchanged * Service Prioritisation

* High priority items to be achieved before other work undertaken

NEW YEAR 5 – 2015/16 Value for Money Reviews New Estates Management (Follow-up from 2010/11) New Information Management (Follow-up from 2010/11) Mini Value for Money Reviews New Partnership Arrangements (Follow-up from 2009/10) New IRMP Effectiveness of CS initiatives (Follow-up from 2010/11) Business Reviews and Audits New Task and finish reviews on performance indicator results and

other issues that may arise External Scrutiny New Customer Service Excellence New Service Prioritisation

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APPENDIX B 2010/11 Value for Money Review and Business Review & Audit Programme

DRAFT Scoping Statements

2011/12 Value for Money Review and Business Review & Audit Programme DRAFT Scoping Statements Description/Title: Review 1: Value for Money Review: Procurement Lead Member: Member Lead Cllr Ost Outcome: To demonstrate continued value for money in all of the Service’s commissioning and procurement activities, to review progress on the previous direction of travel towards continuous improvement of all procurement activities including proposals to identify minimum annual efficiency savings of 5% over the medium term, bearing in mind previous review outcomes and agreed savings arising from the service prioritisation agenda and suggest future proposals for further improvement.

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Issues to be included: Reviewing progress made • Reviewing ESFRS progress on the BVR on commissioning and procurement

undertaken in 2008/09 as well as other procurement function reviews undertaken by external consultants on streamlining supplies arrangements through use of procurement cards, SAP enhancements etc. and actions achieved since then.

• Considering what efficiency savings have been generated from procurement in the last 3 years in proportion to functional areas/values along with plans for the future being generated from within the current Service Prioritisation exercise.

Reviewing the effectiveness of current arrangements • Considering how current corporate structures facilitate procurement efficiency savings

including level of skills, expertise. • Considering the extent to which relevant senior and middle managers are now more fully

engaged and committed to value for money improvements in the procurement functions for which they have responsibility and whether they are making best use of the specialist procurement expertise within the Service and explore the extent to which internal service customer satisfaction measurement is used as a performance measure to further this previous organisational aim.

• Considering the extent to which the organisation’s existing strategic procurement overview and how the latest constitutional procedures for Contract Standing Orders, Commissioning and Procurement Strategy and supporting policies and procedures contained in the Service Manuals facilitate best practice suggesting what other processes might be required.

• Examining the resource inputs, outputs and outcomes from the procurement team against overall service needs for procurement and outcomes achieved.

• Considering the extent to which more cost effective procurement processes have been introduced and future capacity to improve them.

• Reviewing of the organisational compliance on procurement within the corporate performance framework.

• Reviewing the effectiveness of service wide understanding, commitment and engagement.

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Considering the future - strengths and weaknesses assessment • Considering whether there are any useful opportunities for shared services with other

local authorities/ FRS with particular reference to the possibility of a merger with West Sussex FRS and other procurement partnerships currently evolving.

• Considering the necessary expertise within the section and their potential preparedness to meet future demands in terms of outsourcing, mixed service provision and enhanced needs for evaluation of service change proposals with regard to procurement needs.

• Considering the extent to which the procurement function is aware of opportunities and best practices evolving elsewhere

Assessment against approved VFM methodology for economy, efficiency and effectiveness CHALLENGE OF THE CURRENT REQUIREMENTS METRICS Are functional inputs, outputs and outcomes measured effectively? What are the metrics for the function including service specification standards, performance indicators, performance measures? What are the key budget areas and how is the budget analyses over locations, types of expenditure and business activities? What monitoring systems are in place to periodically review performance? What customer satisfaction information is available? Are the target outcomes realistic and achievable? Have the medium term service demands been defined, and approved corporately?

CORPORATE CAPACITY Is the financial and business intelligence fit for purpose to meet current and future needs of the procurement team as well as meet corporate demands? Is the service effective in the way it carries out procurement? Are any parts of the service duplicated within the organisation? Is the procurement team workforce sufficient in resource terms and competent to fulfil all work required of them? Do the team have the necessary tools to fulfil their roles effectively? Do development opportunities exist in role?

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CHALLENGE OF THE CURRENT REQUIREMENTS (cont) BUSINESS OUTCOMES FOCUS How is value for money determined in relation to the capital and revenue investment profiles? Is the procurement team’s business plan working to achieve the Fire Authority vision of achieving safer and more sustainable communities? Does it consider a holistic development agenda as part of this process? Is priority given in the right areas to meet strategic, and local service objectives? What other alternative options for investment might have greater community impact? Are the expected outcomes the right ones for the internal customers, external stakeholders and communities and overall corporately? COMPARE: What does the Service cost? Is it within budget – capital and revenue? (Consider last 3 years) What service improvements have been made over the last 3 years? When was the most recent SWOT/or similar assessment undertaken? What further efficiency savings/improvements can be completed / identified? Has the service demonstrated that it benchmarks its performance against that of similar organisations and is the information used to improve the service provision? What benchmarking information is available but isn’t being used by the organisation? COLLABORATE: What previous consideration, if any, has been given to shared working, contracted out elements? Can the level of service be provided by other organisations/ partnerships more economically? Has the service taken into account local or regional plans/frameworks/best practice? What are other FRAs in the south east doing? What level of contact is there with colleagues in other authorities, supply partners, best practice exemplars? What opportunities are there to progress the collaboration agenda in the medium term?

Client Owner: ACO Corporate Services

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Description/Title: Review 2: Value for Money Review: Engineering Services - Need Member Lead Lead Member: NEED MEMBER LEAD Outcome: To demonstrate value for money and to provide a direction of travel towards continuous improvement including proposals to identify minimum annual efficiency savings of 5% over the medium term Issues to be included: • Review ESFRS progress on the BVR on Engineering undertaken in 2008/09 • Consider what efficiency savings have been generated from Engineering in the last 3

years in proportion to functional areas/values • Consider what efficiency savings have been generated from the Service Prioritisation

exercise • Consider how the corporate supporting structures facilitate efficiency savings including

level of skills, expertise and whether there are opportunities for shared services with other local authorities/ FRS with particular reference to the possibility of a merger with West Sussex FRS.

• The liaison with end users on the needs and role of transport provision. • The management of fleet resources in terms of life cycle and replacement scheduling. • The management of fleet budgets and the projection of future spending and budget

bidding. • The provision of maintenance, repairs and testing of all fire service vehicles and

equipment. • The provision of 24-hour response for the above including Defect repair. • The provision of technical/legislative support regarding product specification.

CHALLENGE OF THE CURRENT REQUIREMENTS METRICS Are functional inputs, outputs and outcomes measured effectively? What are the metrics for the function including service specification standards, performance indicators, performance measures? What are the key budget areas and how is the budget analyses over locations, types of expenditure and business activities? What monitoring systems are in place to periodically review performance? What customer satisfaction information is available? Are the target outcomes realistic and achievable? Have the medium term service demands been defined, and approved corporately?

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CHALLENGE OF THE CURRENT REQUIREMENTS (cont) CORPORATE CAPACITY Is the financial and business intelligence fit for purpose to meet current and future needs of the engineering department as well as meet corporate demands? Is the service effective in the way it carries out its business? Are any parts of the service duplicated within the organisation? Is the workforce sufficient in resource terms and competent to fulfil all work required of them? Do the team have the necessary tools to fulfil their roles effectively? Do development opportunities exist in role? BUSINESS OUTCOMES FOCUS How is value for money determined in relation to the capital and revenue investment profiles? Is the business plan working to achieve the Fire Authority vision of achieving safer and more sustainable communities? How is the Service commissioned by the organisation? Does it consider a holistic development agenda as part of this process? Is priority given in the right areas to meet strategic, and local service objectives? What other alternative options for investment might have greater community impact? Are the expected outcomes the right ones for the internal customers, external stakeholders and communities and overall corporately? COMPARE: What does the Service cost? Is it within budget – capital and revenue? (Consider last 3 years) What service improvements have been made over the last 3 years? When was the most recent SWOT/or similar assessment undertaken? What further efficiency savings/improvements can be completed / identified? Has the service demonstrated that it benchmarks its performance against that of similar organisations and is the information used to improve the service provision? What benchmarking information is available but isn’t being used by the organisation? COLLABORATE: What previous consideration, if any, has been given to shared working, contracted out elements? Can the level of service be provided by other organisations/ partnerships more economically? Has the service taken into account local or regional plans/frameworks/best practice? What are other FRAs in the south east doing? What level of contact is there with colleagues in other authorities, supply partners, best practice exemplars? What opportunities are there to progress the collaboration agenda in the medium term? Client Owner: CFO&CE

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Description/Title: Review 3: Mini Value for Money Review: Scrutiny of Community Safety Partnership initiatives using evidence from newly proposed proformas (continued work from 2007/08 BVR) Outcome: To demonstrate Value for Money in relation to community safety outcomes achieved by partnership working Issues to be included: ��Consideration of resource inputs, outputs and outcomes and benchmarking information

as appropriate/available. ��What is the level of success in inputs meeting expected outputs and outcomes, how

are these measured? ��Are the expected community outcomes realistic and are they the right ones to meet

partnership/ESFRS objectives? ��What achievements have been made over the last 3 years? ��What is the scope of ESFRS levels of resource commitment towards partnerships, is it

appropriate? ��What does the activity cost ESFRS? - Is it within budget? (Consider last 3 years) �� Is the partnership effective in terms of engagement with the planning, implementation,

monitoring and reviewing processes by contributing organisations? �� Is priority given within ESFRS in the right areas to meet the partnership’s objectives? ��To evaluate the scope and scale of risk in relation to the community and ESFRS with

regard to the Partnership activity. ��Has the partnership taken into account local or regional plans/frameworks/best

practice? CHALLENGE OF THE CURRENT REQUIREMENTS METRICS Are functional inputs, outputs and outcomes measured effectively? What are the metrics for the function including service specification standards, performance indicators, performance measures? What are the key budget areas and how is the budget analyses over locations, types of expenditure and business activities? What monitoring systems are in place to periodically review performance? What customer satisfaction information is available? Are the target outcomes realistic and achievable? Have the medium term service demands been defined, and approved corporately? CORPORATE CAPACITY Is the financial and business intelligence fit for purpose to meet current and future needs of as well as meet local management and corporate demands? Is the service effective in the way it carries out its partnerships? Are any parts of the service duplicated within the organisation? Is the workforce sufficient in resource terms and competent to fulfil all work required of them?

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CHALLENGE OF THE CURRENT REQUIREMENTS (cont) BUSINESS OUTCOMES FOCUS How is value for money determined? Are partnerships working to achieve the Fire Authority vision of achieving safer and more sustainable communities? Is priority given in the right areas to meet strategic, and local service objectives? What other alternative options for investment might have greater community impact? Are the expected outcomes the right ones for the internal customers, external stakeholders and communities and overall corporately? COMPARE: What does the Service cost? Is it within budget – capital and revenue? (Consider last 3 years) What service improvements have been made over the last 3 years? When was the most recent SWOT/or similar assessment undertaken? What further efficiency savings/improvements can be completed / identified? Has the service demonstrated that it benchmarks its performance against that of similar organisations and is the information used to improve the service provision? What benchmarking information is available but isn’t being used by the organisation? COLLABORATE: What previous consideration, if any, has been given to shared working, contracted out elements? Can the level of service be provided by other organisations/ partnerships more economically? Has the service taken into account local or regional plans/frameworks/best practice? What are other FRAs in the south east doing? What level of contact is there with colleagues in other authorities, supply partners, best practice exemplars? What opportunities are there to progress the collaboration agenda in the medium term? Client Owner: DCFO

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Description/Title: Review 4: Mini Value for Money Review: Organisational Development Communications. Outcome: To assess the progress made in the first year of the Communications Team and the impact it has made in terms of improving organisational communication using the Communications Strategy as the benchmark. Issues to be included:

• Review the Seven overarching communications and marketing priorities (taking into account other Fire Authority Strategies)

• To identify particular problems or inefficiencies with existing mechanisms and their use.

• Recommend ways in which the Fire Authority Strategy and communications and marketing function might be made more effective or efficient.

CHALLENGE OF THE CURRENT REQUIREMENTS METRICS Are functional inputs, outputs and outcomes measured effectively? What are the metrics for the function including service specification standards, performance indicators, and performance measures? What are the key budget areas and how is the budget analyses over locations, types of expenditure and business activities? What monitoring systems are in place to periodically review performance? What customer satisfaction information is available? Are the target outcomes realistic and achievable? Have the medium term service demands been defined, and approved corporately? CORPORATE CAPACITY Is the financial and business intelligence fit for purpose to meet current and future needs of the team as well as meet local management and corporate demands? Is the service effective in the way it carries out its local service delivery arrangements? Are any parts of the service duplicated within the organisation? Is the workforce sufficient in resource terms and competent to fulfil all work required of them? Do the team have the necessary tools to fulfil their roles effectively? Do development opportunities exist in role?

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CHALLENGE OF THE CURRENT REQUIREMENTS (cont) BUSINESS OUTCOMES FOCUS How is value for money determined in relation to the capital and revenue investment profiles? Is the business plan working to achieve the Fire Authority vision of achieving safer and more sustainable communities? BUSINESS OUTCOMES FOCUS How are the local service delivery business plans commissioned by the organisation? Do they consider a holistic development agenda as part of this process? Is priority given in the right areas to meet strategic, and local service objectives? What other alternative options for investment might have greater community impact? Are the expected outcomes the right ones for the internal customers, external stakeholders and communities and overall corporately? COMPARE: What does the Service cost? Is it within budget – capital and revenue? (Consider last 3 years) What service improvements have been made over the last 3 years? When was the most recent SWOT/or similar assessment undertaken? What further efficiency savings/improvements can be completed / identified? Has the service demonstrated that it benchmarks its performance against that of similar organisations and is the information used to improve the service provision? What benchmarking information is available but isn’t being used by the organisation? COLLABORATE: What previous consideration, if any, has been given to shared working, contracted out elements? Can the level of service be provided by other organisations/ partnerships more economically? Has the service taken into account local or regional plans/frameworks/best practice? What are other FRAs in the south east doing? What level of contact is there with colleagues in other authorities, supply partners, best practice exemplars? What opportunities are there to progress the collaboration agenda in the medium term?

Client Owner: ACO POD

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Description/Title: Review 5: Business Audit: ROSPA QSA on H&S management systems (triennial programme) Outcome: To carry out a full RoSPA QSA audit on the Health & Safety Management System within ESFRS to establish organisational compliance/performance in relation to HS(G) 65 and RoSPA QSA. Issues to be included: All health & safety policies and procedures Site inspections Individual staff interviews Internal/External reports Client Owner: ACO POD

Description/Title: Review 5: Business Audit – Task and finish reviews on performance indicator results or other issues that may arise. Outcome: To ensure East Sussex Fire Authority in meeting its strategic objectives, is complying with its policies and procedures for all service activities and that community outcomes are being met. Note: PIs to be decided – based upon considered issues such as poor relative performances, declining performances, geographical differences, examining best practices, planning for future prevention initiatives etc. Alternatively, ad hoc task and finish reviews to be decided on based on the workload arising from the potential merger/ increased collaboration. Issues to be included: FRS policies and procedures. (Compliance with National, Regional and Local drivers) Do the service policies and procedures reflect current practices? Are they periodically reviewed? Is the service working to the policies and procedures i.e. Best Practice? Are the policies and procedures and working practices periodically tested? Are service management information systems being utilised effectively?. Are their clear lines of responsibility in the service? Is the workforce competent and do development opportunities exist in role? What monitoring systems are in place to periodically review performance? How can the provided service be made more efficient? Is working in partnership beneficial to the provided service? Have relevant risk assessments been completed? Other issues that may arise.

Client Owner: DCFO

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Agenda Item No. 690

EAST SUSSEX FIRE AUTHORITY Panel: Scrutiny & Audit Date: 26 May 2011 Title: Contract Standing Orders By: Chief Fire Officer & Chief Executive Purpose of Report: To seek approval of an updated Fire Authority Standing

Orders. RECOMMENDATION: The Panel is asked to approve the updated Fire Authority

Standing Orders, attached as a separate document, on behalf of the Fire Authority.

MAIN ISSUES 1. Section C of the Members’ Handbook contains the Fire Authority’s Standing Orders.

The Chief Fire Officer & Chief Executive has delegated authority to approve minor amendments to these Standing Orders to keep them up to date. Any substantial amendments are brought to Members for their consideration and approval.

2. An updated Section C – East Sussex Fire Authority Standing Orders – is attached as

Appendix ‘A’. There have been a number of amendments, which warrant the Panel’s approval. (A copy is attached a separate document for Members of the Panel, copies available on website www.esfrs.org and from the Clerk to the Fire Authority).

3. The main changes to the Standing Orders are summarised below: - The thresholds for acceptance of tenders has been changed to align with best

practice, guidance and to reflect the practicalities of procurement in the Service (Section B para. 8).

- Update the section on Framework Agreements following the winding up of

FireBuy (Section B para. 12). - Introduction of a requirement to obtain legal advice when Transfer of

Undertaking Protection of Employment (TUPE) may apply (Section B para. 12.7). - Clarification that Approved Lists cannot be used for contract values in excess of

the EU Directive thresholds (Section B para. 23.2). Des Prichard CHIEF FIRE OFFICER & CHIEF EXECUTIVE 10 May 2011

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APPENDIX A

Strategic Objective 3

Strategic Objective 5

PERFORMANCE RESULTS 2010/11QUARTER 4

Achieving safer and more sustainable communities

1 of 4 Saved: 21/04/2011, Filepath: Q4 New look indicator report 2010-11v2.xls

Q4 2009/10 Q4 2010/11 Year end Result

2010/11 Target

CS 1 Home Safety Visits (HSV's) 3,037 2,450 10,026 10,000B1 % of HSV's to vulnerable people 60% 60% 65%NI 49a No of primary fires 311 286 1,343 1,599

NI 49b No of deaths in primary fires 2 1 2 6

NI 49c No of injuries in primary fires 20 29 89 164

142 (iii) No of accidental dwelling fires (ADF's) 126 130 507 600

143 (i) Deaths in ADF's 1 1 2 3

143 (ii) Injuries in ADF's 12 28 68 60

NI 33ai Deliberate primary fires not in vehicles 45 39 215 332

NI 33aii Deliberate primary fires in vehicles 37 37 189 272

NI 33bi Deliberate secondary fires not in vehicles 101 70 702 998

NI 33bii Deliberate secondary fires in vehicles 2 6 17 35

209 (iii) % of fires in dwellings with no smoke alarm 30.5% 27.5% 28.5% 33.0%207 No of fires in non-domestic properties 60 44 205 332

B2 Inspections of high risk premises 194 666 900

144 %of accidental dwelling fires confined to room of origin 89.7% 90.0% 91.5% 93.0%FS3 % Reduction of automatic fire alarms -13.90% 0.90% -20.00%DDF 2 %of Domestic dwelling fires (DDF's) attended in 8 mins 74.83% 78.80% 78.90% 50.00%DDF 3 % of DDFs attended within 13 minutes 96.50% 94.40% 94.60% 90.00%NI 47 Killed or seriously injured in road traffic collisions (RTC's) 99 N/a N/a 465

RTC 3 % of RTCs, persons trapped, within 8 minutes 50.00% 45.70% 53.10% 50.00%RTC 4 %of RTCs, persons trapped, within 13 minutes 78.90% 82.80% 87.00% 90.00%E1 Business continuity for benchmarking �� N/a N/a N/aKey On Target 999 999

Result the same as last year 999 999New Indicator no Target set ��

Priority Area

Off targetWithin 10%

Annual Target

ESFRS Performance Report Quarter 4 2010-11

All against Target

Stra

tegi

c O

bjec

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1O

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3


2010/11 TargetESFRS Performance Report Quarter 4 2010-11

2a Equality framework 3 3 3 32b The duty to promote race equality 79% 79% 79% 79%C3 Retained (RDS) female firefighters as new entrants 4 4 N/aC4 Minority ethnic staff as new entrants to the FRS 1 1 N/aC6 (i) % of firefighters deemed competent for pay purposes 92.42% 92.42% N/aC6 (ii) % of crew & watch managers deemed competent for pay purposes 93.22% 93.22% N/aC6 (iii) % of station & group managers deemed competent for pay purposes 98.00% 98.00% N/aC6 (iv) % of area managers deemed competent for pay purposes 100.00% 100.00% N/aC6 (iii) % of RDS firefighters deemed competent for pay purposes 69.48% 69.48% N/aC6 (iv) % of RDS supervisory managers deemed competent for pay purposes 88.52% 88.52% N/a12 (ii) The no of working days/shifts lost due to sickness 1.71 2.12 9.15 7.5

H&S 1 Number of workplace reported accidents / injuries 23 26 121 127

H&S 7 Number of RIDDOR incidents 4 1 18 18

150 Expenditure per head of the population £48.30 £50.60 £50.60 £51.00Fin 2 Affordable community safety services N/a N/a N/aA3 (i) Cost per head of population dwelling primary fires £7.63 £30.94 N/aA3 (ii) Cost per head of population commercial property fires £3.36 £18.32 N/aA3 (iii) Cost per head of population public property fires £1.72 £6.36 N/aA3 (vi) Cost per head of population vehicle fires £0.51 £2.35 N/aA3 (v) Cost per head of population outdoor fires £1.04 £10.09 N/aC7 Reduction of CO2 (annual Indicator) �� N/a N/a N/aEnv 1 To achieve a 3.5% reduction in CO2 emissions �� N/a N/a N/aKey On Target 999 999


Priority Area

Obj

4S

trate

gic

Obj

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e 5

Obj

6S

trate

gic

Obj

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Off targetWithin 10%

Annual Target


2010/11 TargetESFRS Performance Report Quarter 4 2010-11

Par 1 100% of our partnership activities N/a N/a N/aESL 8 KSI in RTCs East Sussex only 73 N/a N/a 342BHL 1 KSI in RTCs B&H only 23 N/a N/a 123Key On Target 999 999


Total On Target 20 3Within 10% of Target 3 18Failed to meet target 4

Priority Area

Off target

Obj

8

Within 10%

Annual Target

Annual TargetNew Target

OpA Task No.

KLOE Main Task Sub/Number Performance Milestones Priority H,M,L

Task Owner Delivery Manager Target Date Complete %

1.1 Review internal communications to ensure strategic messages are received at the grass roots level and translated into actions.

H ACO (POD) HofOrg Dev Apr-11 100%

1.2 Develop more effective ways of promoting the achievements of the Service. M ACO (POD) HofOrg Dev Apr-12 50%

1.3 Review the effectiveness of the evaluation of partnership working to align with Service priorities. H ACO (POD) HofOrg Dev Jun-11 0%

2 Cross Cutting Theme Review framework to support performance management culture and integrate information systems to support improvement.

2.1 Consider appropriate IT systems to support performance management H ACO (CS) Hof Perf Review Apr-12 30%

3.1Develop a stronger link between Local Resilience Forum Community Risk Register and the Integrated Risk Management Plan. M HoCRM HoCRM Apr-12 50%

3.2 Produce framework for auditing and validating risk analysis process on an annual basis. L HoCRM HoCRM Apr-12 25%

3.3 Report on demand led approach to rostering fire-fighters for duty. L HoCRM HoCRM Apr-12 25%

4.1 Ensure Annual Update of base data for all risk modelling systems. (These milestones are fully reliant on E IRS capabilities to export data in FSEC format which currently is not possible).

H HoCRM HoCRM Dec-10 100%

4.2 Along with Protection Department complete ‘Other Buildings’ module within FSEC toolkit L HoCRM HoCRM Apr-12 5%

4.3 Complete the provision of community profiling information to Response, CFS and TFS teams to further enhance their targeting of risk.

H HoCRM HoCS Jun-11 80%

4.4 Advise CFS on the development of a station-based HSV prioritisation tool. H HoCRM HoCRM Apr-11 100%

4.5 Complete mapping exercise that captures information flows from and to CRM team (Knowledge Management). H Ho P&P HoCRM Oct-10 100%

4.6 Consider outcomes of 4.5 to and next steps M Ho P&P HoCRM Apr-11 100%

5 Community Risk Management (CRM)

Use our customer insight information, via our Community Engagement and Consultation plan, to achieve:

• More effective engagement with local communities to build up a comprehensive risk profile for the area• Improved involvement with local communities in developing fire prevention, fire protection and community safety priorities• Help to ensure that partners are engaged in larger scale emergencies, civil contingency and local resilience.

5.1 Post-implementation review of the rural review and consultation M HoCRM HoCRM Apr-11 100%

6.1Produce a strategy for Home Safety Visits (and include as an Appendix in the Overarching Community Safety Strategy) H HoCS HoCS Jan-11 100%

6.2 Replace individual strategies for Road Safety, Children & Young People (including Education Programme) and Tackling Anti-Social Deliberate Fires with Appendices to the Overarching Community Safety Strategy

M HoCSSM AIRT

Mngr CSETMngr YIT

Jan-11 100%

6.3 Review remainder of existing Overarching Community Safety Strategy M HoCS HoCS Mar-11 100%

7.1 Arrange public launch of CPFS Scheme & recruit more active partners to it. H HoCS WM CFST Nov-10 100%

7.2 Produce bespoke processes & training to enable ease of referral by members of the Scheme M HoCS WM CFST Mar-11 100%

7.3Conduct a pilot of joint (HSV & NHS Occupational Therapist) visits to vulnerable people and report on effectiveness. M HoCS WMCFST Mar-11 100%

7.4 Monitor CPFSS performance and provide data to Members of Scheme M HoCS WM CFST Mar-11 100%

6 Prevention Produce an overarching Prevention (Community Safety) Strategy

7 Prevention Develop the ESFRS Care Providers Fire Safety Scheme to increase HSV referrals from the Ageing population and other more at risk groups

3Community Risk Management (CRM) Produce IRM Plans in accordance with Service procedure.

Shift CRM products from predominantly reactive services to proactive services, by identification of high priority intelligence, to support targeting of risk for all stakeholders starting with internal response and resilience protection and prevention.

4 Community Risk Management (CRM)

Operational Assessment Improvement Plan 2010/12

1 Cross Cutting Theme Ensure a clear leadership message linked to the vision, with associated priorities to focus the Service.

1

OpA Task No.




8.1 Ensure that partner agencies are provided with copies of formal evaluation findings of community safety work following considerations of internal impact of the results

L HoCS HoCS Apr-12 50%

8.2 Market the benefits of initiatives by use of Social Media L HoCS

SM AIRTWM CFSTMngr CSET

Mngr YITMngr C4SC

Apr-12 10%

9.1 Review enforcement strategy H P Scott P Scott Mar-11 100%

9.2 Update Guidance (Manual) H P Scott R.Fowler Jun-11 75%

10.1 Replace TFS database H P Scott P Scott Mar-12 65%

10.2 That Audit programme of Fire Safety Offices is fully embedded. M P Scott M Hobbs Mar-11 100%

11.1 Implement a policy of flexible use of resources based on risk e.g. across Boroughs. H P Scott P Scott Mar-11 100%

11.2 Implement a workforce planning process for Fire Safety Officers to ensure there are the required number of people in post with the necessary skills to meet the risk of the locality

M P Scott M Hobbs Jun-11 75%

11.3 Invite a peer review of protection activity M P Scott P Scott Mar-11 100%

12.1 Submit report to CMT on future of operational improvement team. H A.Brown G.Pearson Sep-10 100%

12.2 Complete recommendations on future of team issued by CMT. H A.Brown G.Pearson Apr-11 100%

13.1 Produce linkages between Incident analysis and operational equipment provision. M A.Brown N.Robinson Apr-11 100%

13.2 Implement review of implementation of operational procedures process e.g. ICUs M A.Brown N.Robinson Apr-11 100%

14 ResponseFormulate a medium term plan to enhance and expand training to ensure all Fire-fightersand operational officers are fully competent in the use of CAFS . 14.1

User Group Committee and designated lead officer to develop better performance and management of all procedures for the use of CAFS M A.Brown J.Owen Jun-11 100%

15 H&S Consider extending the Strategic Managers H&S course to Heads of Function 15.1 Report to Workforce Development on proposals for Strategic H&S course L A.Strawson A.Strawson Mar-11 100%

16 H&S Investigate potential for “Shared Services” project between East Sussex and Surrey FRS 16.1 Report to Corporate Management Team M A.Strawson A.Strawson Jan-11 100%

17.1 Identify what constitutes good performance. M A.Strawson A.Strawson Mar-11 100%

17.2 Review audit techniques to check compliance in selected areas of work. L A.Strawson A.Strawson Oct-11 20%

18.1 That the HSWC and WSRC have reduce the number of outstanding items by 10% by 2012. M A.Strawson ACFO, AS & LF Mar-11 100%

18.2 Introduce new business management system M A.Strawson ACFO, AS & LF Sep-11 75%

19 L&DDevelop an evaluation framework (to measure suitability and provision to meet service needs) 19.1 Implement a process around the Kirkpatrick model once agreed by CMT H WFD Manager Matt Lloyd Nov-10 100%

20 L&D PDR-pro - use the system to provide high level management information to monitor competence

20.1 Undertake a PDR audit identifying how the system could be used for each work group and report to CMT H HoL&D Hannah Scott-Youldon

Dec-10 100%

Improve internal business assurance processes.H&S17

18 H&S Integrate all tracker monitoring systems for health and safety action points to provide feedback on implementation of specific issues for compliance.

Consider the long-term sustainability of the operational improvement function.12 Response

13 Response Review the Operational Policy and Equipment Group.

Provision of an all encompassing database with strong links to operational information systems

Protection10

Improve use of resourcesProtection11

8 Prevention Sharing findings of evaluations with partners

Review strategy and guidance on enforcementProtection9

2

OpA Task No.




21.1To have aligned all operational courses to the PDAs with all instructors communicating this at the start of each course delivered. M STC Stn Mgrs COT Manager Apr-11 100%

21.2 To have mapped the PDAs to the NOS to identify any gaps in the PDAs - communicate linkages H Steve Whittlesey WFD Manager Dec-10 100%

21.3To have communicated the principles of PDAs to enable operational personnel to understand and be able to demonstrate them at operational incidents M Nigel Cusack HoL&D Mar-11 100%

21.4 To have a process in place where the outcomes and minutes from the RTR Group are communicated to all relevant stakeholders

M Nicky Thurston HoL&D Jan-11 100%

22.1 Develop and enhance existing consultation processes L Mark O'Brien ACO (POD) Sep-11 0%

22.2Develop a process enabling an impact assessment to be undertaken prior to the secondment of operational personnel on their substantive role L

Mark O'Brien / Vicky Chart /

Andy ReynoldsACO (POD) Sep-11 100%

23.1Develop a QA process to call handling times to determine whether the right equipment and appliance has been sent. M S Lewis R.Moore Jun-11 100%

23.2 Implement call challenge performance measures for operators to operator level H S Lewis R.Moore Jan-11 100%

23.3 Build a close working relationship with the AFA Reduction manager and agree performance targets for M&CC. H S Lewis R.Moore Jan-11 100%

23.4 Ensure that the Station Manager (Control) has the facility to monitor. M S Lewis R.Moore Jun-11 100%

23.5 Development of the watch action plans and fully linked with the Station action plan. H S Lewis R.Moore Dec-10 100%

Key: Task now complete, evidence supplied and control document completedTask now underway, with progress tracked.Task not yet started, or task progress not on target.

Support corporate processes22 L&D

Implement a formal Quality Assurance process for M and CC 23 M&CC

Ensure implementation of the PDAs throughout the Service to enable assurance of organisational competence to achieve priorities and reflect core values.

21 L&D

3

Date Complete

31.03.11

05.04.11

05.04.11

05.04.11

05.04.11

05.04.11

31.03.11

31.03.11

31.03.11

08/11/2010

01/02/2011

31.03.11

01.05.11

4

Date Complete

31.03.11

31.03.11

09/05/2011

31.03.11

28.09.10

31.03.11

30.04.11

30.04.11

30.03.11

31.03.11

01.01.11

09/05/2011

31.03.11

31.03.11

31.03.11

5

Date Complete

31.03.11

31.03.11

31.03.11

31.03.11

31.03.11

05.05.11

31.03.11

31.03.11

31.03.11

05.05.11

6

Page No.1 Section C

Responsible Officer

First Section Issue Date

Section Amended/Updated

Review Date

ACO(CS)

October 2005

March 2006/

February 2008/ March 2010 March 2011

February

2011March 20123

Index Page SECTION A: GENERAL STANDING ORDERS Part 1 Authority Meetings 5 (a) General 1. Interpretation of Part 1 5 2. Membership of the Authority 5 3. Place and time of meetings 6 4. Summons 6 5. Circulation of Panel Reports 7 6. Record of Attendances 7 7. Admission of public and press 7 8. Motions affecting employees 8 9. Election of Chairman and Vice-Chairman 8 10. Minutes 8 11. Suspension of Standing Orders 8 12. Adjournment of Meeting 9 13. Lack of quorum 9 14. Order of business 9 (b) Rules of Debate 15. Points of order or personal explanation 10 16. Motions and amendments 10 17. Definition of ‘amendment’ 11 18. Disposal of amendments 11 19. Alteration of motions 11 20. Withdrawal of motion or amendment 11 21. Closure of Debate on a motion or amendment 11 22. Voting 12 23. Voting on Appointments 12

East Sussex Fire Authority Standing Orders

Page No.2 Section C

(c) Questions and petitions 24. Questions which Members may ask without notice 13 25. Questions of which members of the public or Members must give notice

(Wwritten Qquestions) and presentation of petitions 13

(d) Improper Conduct of Members and Public 26. Chairman may direct Member to discontinue speech 14 27. Disorderly conduct 14 28. Disturbance by members of the Public 15 29. Disclosure of Authority Business 15 Part 2 General 30. Financial Regulations 15 31. Custody of the Common Seal 15 32. Sealing of documents 15 33. Inspection of documents 16 34. Inspection of land and premises etc. 16 35. Interest of Members or Officers in appointments 16 36. Interest of Officers in contracts 17 37. Members’ Interests 17 38. Canvassing of Members 17 39. Standing Orders to be Given to Members 17 Part 3 Panels (Committees) of the Authority 40. Appointment of Panels 18 41. Standing Orders to apply to Panels 19

Page No.3 Section C

SECTION B: CONTRACT STANDING ORDERS 1. Introduction 20 2. Purpose 20 3. Interpretation 20 4. Compliance 20 5. Application 21 6. Contracts Register 21 7. Waivers 22 8. Authorised Officers 22 9. Declarations of interests 23 10. Valuation and aggregation 23 11. Budgeting 23 12. Choice of procurement method 24 13. Competition processes 25 14. Delivery, opening and recording of Quotations or Tenders 27 15. Evaluation of Quotations or Tenders 28 16. Clarification after receipt of Quotations or Tenders 29 17. Acceptance of Quotations or Tenders 29 18. Contract formalities 30 19. Mandatory Contract clauses 30 20. Monitoring Contract performance 31 21. Contract variation 31 22. Disposal of Supplies 31 23. Compilation of selected lists of Contractors 32 Appendix 1 Words and Phrases used in CSOs 33 Appendix 2 Procedures for obtaining Quotations or Tenders 36

Page No.4 Section C

Page No.5 Section C

C o n s t i t u t i o n a l A r r a n g e m e n t s a n d S t a n d i n g O r d e r s f o r t h e E a s t S u s s e x F i r e A u t h o r i t y P a r t 1 - Au t h o r i t y M e e t i n g s

(a) G e n e r a l P 1. Interpretation of Part 1 1.1 In these Standing Orders:

i. "Authority" means the East Sussex Fire Authority. ii. "Chairman" means the Chairman of the Authority, the Vice-Chairman of

the Authority, or the person presiding at the meeting of the Authority. iii. "Chairman of a Panel" includes the Vice-Chairman of the Panel or any

other Member of the Panel nominated by the Chairman to act on the Chairman's behalf or acting in the Chairman's absence.

iv. Chief Fire Officer and Chief Executive means the Chief Fire Officer and Chief Executive of the Authority.

v. "Constituent Authorities" means East Sussex County Council and Brighton & Hove City Council.

vi. “Member(s)” unless the context requires otherwise means Member(s) of the Authority and, in relation to the Standards Panel and its Assessment and Hearing Panels, includes the independent persons appointed to serve on those Panels.

vii. “Monitoring Officer” means the Monitoring Officer of the Authority and (except in relation to Standing Orders 31 and 32) includes the Clerk to the Authority.

viii. "The Scheme" means the East Sussex Fire Services Combination Scheme.

1.2 If there is any conflict between these Standing Orders and the Local

Government (Access to Information) Act 1985 the Act shall prevail. 1.3 'P' before the title of a Standing Order denotes that the order applies to

Panels. 1.4 The ruling of the Chairman as to the meaning or application of any of the

Standing Orders in Part 1 or as to any aspect of the Authority's procedure (including the order of business) shall be conclusive and shall not be challenged at any meeting of the Authority nor open to discussion.

2. Membership of the Authority

2.1 Each Constituent Authority shall appoint, so far as is practicable, such

number of representatives to be Members of the Combined Fire Authority as is proportionate to the number of local government electors in its area in relation to the number of such electors in the other Constituent Authority's area. (Scheme paragraph 11).

Page No.6 Section C

2.2 The Authority shall consist of Members who shall be appointed by the Constituent Authorities in accordance with paragraph 12 of The Combination Scheme.

2.3 The political balance rules contained in the Local Government and Housing Act 1989 apply both at the stage when each Constituent Authority makes appointments to the Authority and also when the Authority establishes Panels (Committees or Sub-Committees) unless the Authority resolves otherwise. (Note the political balance rules have not been applied to the Standards Panel and its panels).

2.4 A Member may resign from the Authority by giving notice in writing to the Monitoring Officer at any time prior to the start of a meeting of the Authority. The relevant Constituent Authority may appoint a replacement who will continue in office for the remainder of the period for which the predecessor would have held office, had he or she not resigned. Alternatively, the Constituent Authority may appoint a temporary replacement for the day of the Fire Authority meeting only, and such an appointment shall not affect the standing Members’ entitlement to Member Allowances nor allow the temporary replacement access to the Member Allowance Scheme.

3. Place and time of meetings 3.1 Meetings of the Authority shall be held at Authority premises notified

annually in advance, except when otherwise agreed by the Authority or its Chairman.

3.2 In addition to any extraordinary meetings called by the Chairman or on the requisition in writing of five Members, meetings will be held in June, (annual meeting), September, December (draft budget) and February (precept setting) each year unless the Authority decides otherwise.

3.3 In addition to the annual meeting and any meeting convened by the Chairman or by Members, meetings for the transaction of general business shall be held in each year at the times and on the dates fixed at the Annual Meeting.

3.4 Meetings of the Authority shall commence at 10.30 a.m. or such other time as may be determined by the Authority or by the Chairman.

3.5 At the appointed time the proceedings at a meeting of the Authority shall commence by the Chairman calling the Authority to order.

4. Summons

4.1 The Monitoring Officer shall send to Members a summons to attend a meeting

of the Authority together with the minutes of the preceding meeting and such summons shall specify the business to be transacted normally at least eight days before the meeting and in any event not less than 5 clear working days.

4.2 Want of service of the summons on any Member shall not affect the validity of the meeting.

Page No.7 Section C

5. Circulation of Panel reports

5.1 After consulting the Chairman of any relevant Panel, the Monitoring Officer

shall settle on behalf of all Panels any reports from Panels to the Authority (incorporating appropriate material before the Panel) for signature by the Panel Chairman.

P 6. Record of Attendances

6.1 Every Member of the Authority attending a meeting of the Authority shall sign the attendance book or sheet but any omission may be rectified by the Monitoring Officer.

P 7. Admission of public and press

7.1 The public shall be admitted to all the meetings of the Authority unless excluded by resolution in accordance with the provisions of the Local Government Act 1972 as amended by the Local Government (Access to Information) Act 1985 and regulations relating to the local assessment and determination of standards matters.

7.2 The Ppress and Ppublic shall be excluded for the whole or any part of the proceedings if a motion in one of the following forms, duly moved and seconded, is carried:

i. To exclude the public and accredited representatives of the press from the

meeting during consideration of items(s)....on the agenda on the grounds that the item(s) involve(s) a likely disclosure of exempt information as defined in paragraph(s)...of Part 1 of Schedule 12A to the Local Government Act 1972, in that...

ii. To exclude the public and accredited representatives of the press from the meeting during the consideration of item(s)...on the agenda on the grounds that there would be a disclosure of confidential information furnished to the Authority by a Government Department on terms which forbid its disclosure to the public.

iii. *To exclude the public and accredited representatives of the press from the meeting during consideration of item(s)...on the agenda, on the grounds that there would be a disclosure of confidential information prohibited by statute or by order of a Court.

7.3 The Chairman may give the Monitoring Officer directions as to arrangements

for the admission of the public. 7.4 With the knowledge of the Authority, tape or video records, transmitters,

microphones, cameras or similar equipment shall be permitted at meetings of the Authority unless the Chairman decides otherwise.

7.5 No member of the public shall interrupt or take part in the proceedings at any meeting without the consent of the Chairman. If any member of the public interrupts or takes part in the proceedings at any meeting, the Chairman shall warn them and if they continue to interrupt, the Chairman will order their removal.

Page No.8 Section C

7.6 The Chairman may at any time, if the Chairman thinks it is desirable in the interest of order, move that the meeting be adjourned or suspended, and if the motion is carried, the meeting shall be adjourned or suspended to a time to be determined by the Members.

P 8. Motions affecting employees

8.1 If any question arises at a meeting of the Authority as to the appointment, promotion, dismissal, salary, superannuation or conditions of service, or as to the conduct or ability of any person employed by the Authority, a motion to exclude the public and press shall be moved forthwith by the Chairman and put without debate.

9. Election of Chairman and Vice-Chairman

9.1 The Authority shall at the annual meeting elect a Chairman and may elect a Vice-Chairman or Vice-Chairmen from among its Members as the first business.

9.2 On a casual vacancy occurring in the office of Chairman and Vice-Chairman, the Authority shall elect from its Members a person to replace the Chairman and may so elect a person to replace the Vice-Chairman as the case may be.

9.3 The Authority, when deciding to elect a Vice-Chairman, should consider an appropriate representative balance between the two Constituent Authorities such that the Vice-Chairman, unless the Fire Authority specifically determine otherwise, should be a Member from the other Constituent Authority to that of the newly elected Chairman.

10. Minutes

10.1 The Chairman shall put the question "that the Authority resolves to approve the signing of the minutes of the last meeting of the Authority as a correct record".

10.2 No discussion shall take place upon the minutes, except upon their accuracy, and any question of their accuracy shall be raised by motion. If no such question is raised, or if it is raised then as soon as it has been disposed of, the Chairman shall sign the minutes.

11. Suspension of Standing Orders

11.1 One or more Standing Orders in Part 1 may only be suspended by the Authority if a motion to do so is formally moved, seconded and put without discussion when at least two thirds of the total number of Members are present.

12. Adjournment of Meeting General power to adjourn

Page No.9 Section C

12.1 The Chairman may, in addition to any other power, adjourn a meeting of the Authority for such period, as the Chairman shall consider expedient. The Chairman shall fix the date and time at which the Authority will resume either at the time of the adjournment or at any time thereafter.

Adjourned meeting

12.2 Subject to Standing Order 12.1, if any meeting of the Authority is adjourned

before its business has been finished, the meeting shall then stand adjourned until a date and time fixed by the Authority, or fixed by the Chairman, or if no such date and time is fixed, to the next ordinary meeting of the Authority.

13. Lack of quorum 13.1 One third of the total number of Members (at present 6), this to include at least

one Member from each Constituent Authority, constitutes a quorum, except that when a motion is moved to suspend Standing Orders (Standing Order 11.1) there shall be present at least two thirds Members of the Authority.

13.2 If during any meeting of the Authority the Chairman, after the Members present have been counted, declares that there is not a quorum, the meeting shall stand adjourned until a date and time to be fixed by the Chairman or if no such date and time is fixed to the next ordinary meeting of the Authority.

13.3 A quorum found to be present under Standing Order 13.2, at any meeting of the Authority shall be deemed to continue to be present at the meeting until found otherwise under Standing Order 13.1.

P 13.4 No business shall be transacted at any meeting of:

i. The Discipline and Dismissal Appeals Panel, the Grievance Panel or the Principal Officer Appointments Panel unless at least three voting Members of the Panel are present.

ii. The Standards Panel unless at least three voting Members of the Panel are present, including at least one twovoting Authority Members of the Fire Authority and one voting independent person appointed to the Panel.

iii. An Assessment or Hearing Panel of the Standards Panel unless there is a quorum as specified in the approved assessment or hearing procedures.

iv. Any other Panel unless at least two voting Members of the Panel are present.

14. Order of business 14.1 The order of business at a meeting of the Authority shall be: 1. At an annual meeting and any other meeting where for some reason it

is necessary, to elect a Chairman. 2. At an annual meeting and any other meeting where for some reason it

is necessary, to elect a Vice-Chairman. 3. To elect a person to preside if the Chairman and Vice-Chairman of the

Authority are not present.

Page No.10 Section C

4. To notify urgent business items/Chairman's business. 5. To deal with written questions from members of the public / Members

under Standing Order 25. 6. To approve as a correct record and sign the minutes of the last

meeting of the Authority. 7. To deal with any business required by law to be done before any other

business. P 8. Callover: The Chairman to call the item numbers of the remaining

items on the open agenda. Each item which is called by any Member shall be reserved for debate. The Chairman will then ask the Fire Authority to adopt without debate the recommendations and resolutions contained in the relevant reports for those items which have not been called.

9. To dispose of business (if any) remaining from the last meeting. 10. At the annual meeting, in each year, to appoint a Chairman, and if

appropriate a Vice-Chairman, of each Panel. (In any case where no such appointments are made, the relevant Panel will exercise this function under Standing Order 40.)

11. To consider reports. 12. To consider any other business specified in the summons or required

by law to be dealt with.

(b) Rules of Debate P 15. Points of order or personal explanation 15.1 A Member may raise a point of order and shall be heard immediately. A point

of order shall relate only to an alleged breach of a Standing Order or statutory provision and the Member shall first specify the Standing Order or statutory provision and the way in which they consider it has been broken.

15.2 With the leave of the Chairman, a Member may make a statement by way of personal explanation which must be confined to some material part of a former speech by the Member at the same meeting of the Authority which has been misunderstood.

16. Motions and amendments 16.1 A motion or an amendment to a motion shall not be discussed unless it has

been proposed and seconded, and it shall, if required by the Chairman, be put in writing and handed to the Monitoring Officer before it is further discussed or put to the meeting.

16.2 Notwithstanding Standing Order 16.1, a motion to adopt a report, or paragraphs of a report, of a Panel of the Authority need not be seconded.


17. Definition of "amendment" 17.1 An amendment shall be relevant to the motion and shall be either: i. To refer a subject of debate to a Panel for consideration or

reconsideration. ii. To leave out words. iii. To leave out words and insert or add other words; or iv. To insert or add words, but such omission, insertion or addition of words shall not have the effect of

negating a motion before the Authority. 18. Disposal of amendments 18.1 Notice of any number of amendments may be given and, unless the

Chairman decides to the contrary, those on related subjects will be moved in the order in which the Monitoring Officer receives them. Unless the Chairman rules otherwise those on related subjects shall be debated (but not voted on) together.

18.2 If an amendment is lost, other amendments may be moved on the original motion. If an amendment is carried, the motion as amended shall take the place of the original motion, and shall become the substantive motion upon which any further amendment may be moved.

18.3 If an amendment to refer a subject of debate to a Panel has been rejected and no other amendment is moved the Chairman shall, unless a Member requires a vote, declare the motion carried.

19. Alteration of motions 19.1 A Member may, with the consent of the seconder and of the Authority,

signified without discussion alter a motion or amendment if the alteration is one which could be made as an amendment.

20. Withdrawal of motion or amendment 20.1 A motion or amendment moved during a meeting may be withdrawn by the

mover with the consent of the seconder and of the Authority, which shall be signified without discussion, and no Member may speak upon it after the mover has obtained permission for its withdrawal.

21. Closure of Debate on a motion or amendment 21.1 A Member who has not spoken on the matter before the meeting may at the

conclusion of a speech by another Member move without comment "that the Authority proceeds to the next business" or "that the question is now put" or "that the debate is now adjourned" or "that the Authority now adjourns" on the seconding of which the Chairman shall proceed as follows:


i. On a motion "to proceed to the next business", unless in the Member's opinion the matter before the meeting has been insufficiently discussed (in which case the Chairman may refuse to accept the motion), the Member shall put to the vote the motion "to proceed to next business".

ii. On a motion "to put the question", unless in the Member's opinion the matter before the meeting has been insufficiently discussed (in which case the Chairman may refuse to accept the motion), the Member shall first put to the vote the motion "to put the question" and if it is passed, then before putting the original motion to the vote the Member shall give rights of reply.

iii. On a motion to adjourn the debate or the meeting, if in the Member's opinion the matter before the meeting has not been sufficiently discussed and cannot reasonably be sufficiently discussed at that meeting the Chairman shall put the adjournment motion to the vote without giving any right of reply on that occasion.

22. Voting 22.1 The Authority shall vote upon all matters (except where by law otherwise

provided) by show of hands, but on demand of four Members, the names of the Members present and their votes shall be taken by the Monitoring Officer and recorded in the minutes.

P 22.2 Where a Member so requests immediately after a vote is taken at a meeting of the Authority, there shall be recorded in the minutes of that meeting whether the Member voted for the issue, against the issue or abstained from voting.

P 23. Voting on appointments 23.1 Notwithstanding Standing Order 22, where there are more persons

nominated for any position(s) to be filled by the Authority than there are vacancies, voting shall be by roll-call unless otherwise agreed and if more than half the total number of votes given are not cast in favour of the required number of persons, the name of the person having the least number of votes shall be struck off the list and a fresh roll-call shall be taken, and so on until more than half the total number of votes are given in favour of the required number of persons. If two or more persons have equal and least votes, a vote shall be taken to decide whose name shall be struck off the list.

23.2 Standing Order 29.1 relating to confidentiality shall apply to appointments of Members and Officers.


(c) Questions and Peti tions 24. Questions which Members may ask without notice 24.1 A Member may, without notice, ask the Chairman of a Panel or other Member

introducing the report of a Panel any question upon an item of the report of the Panel then before the Authority during the Authority's consideration of the item to which the question relates.

25. Questions of which members of the public or Members must give

notice (written questions) and presentation of petitions 25.1 At each ordinary meeting of the Authority a period of up to 15 minutes shall

be set aside for questions to be put in person to the Chairman or Chairman of the appropriate Panel by persons who reside or work in East Sussex or the City of Brighton & Hove or by Members on any matter within the Authority's powers or duties, subject to the provisions in Standing Orders 25.2 – 25.6 below. This period may also be used at the discretion of the Chairman for the presentation of petitions relevant to the functions of the Authority.

25.2 A question may not be asked which relates to: i. An individual or the questioner's own particular circumstances. ii. A matter which is the subject of legal proceedings or an appeal to a

tribunal or to a Government Minister or an investigation by the Local Government Ombudsman or the subject of an ethical standards complaint which has not been finally determined; or

iii. the appointment, promotion, dismissal, salary, superannuation or conditions of service or the conduct or ability of any individual employed by the Authority or the conduct of a Member of the Authority.

25.3 The Chairman of the Authority shall be entitled to rule that a question shall not be answered because:

i. The preparation of the answer would require the expenditure of a disproportionate amount of time, money or effort or

ii. In the Chairman's opinion it is improper, irrelevant or otherwise objectionable or is in the same or similar terms to a question asked at the previous meeting.

25.4 A question must be by way of a genuine enquiry and not a statement. 25.5 The wording of a question must be received by the Monitoring Officer in

writing at least five clear working days before the meeting of the Authority, accompanied by the name and address of the questioner.

25.6 The Monitoring Officer may edit any question to secure reasonable brevity or to delete any part that appears to be defamatory or to delete improper or unbecoming language and shall inform the questioner accordingly. The Monitoring Officer shall return to the questioner, with an explanation, any question that cannot be dealt with under this Standing Order.

25.7 Questions shall be dealt with in the order in which they are recorded as having been received by the Monitoring Officer.


25.8 A questioner shall be limited to one question per meeting, subject to the right in Standing Order 25.9 below to ask one supplementary question for clarification.

25.9 At the meeting of the Authority, when the agenda item is reached, questioners shall be invited to read their question that shall be answered orally by the Chairman to whom it is addressed. If the questioner is not present in person they shall be sent a written response. Questions shall be asked and answered without discussion. However, a questioner may ask one supplementary question solely for the purpose of clarifying a point in the answer given.

25.10 A copy of the questions that have been received, together with the names and addresses of the questioners shall be circulated in the room before the meeting at which the questions are to be asked to all Members and the media.

25.11 In the event of there being insufficient time to deal with all the questions of which notice has been received, a response to any unanswered question(s) shall be sent to the questioner(s) in writing by the appropriate Chairman. A copy of the response shall be sent to all Members and to the media.

25.12 Details of the questions, which have been asked, and by whom, together with the answers given, shall be recorded in the minutes of the Authority.

(d) Improper Conduct o f Members and Public P 26. Chairman may direct Member to discontinue speech 26.1 The Chairman shall call a Member to order for irrelevance, tedious

repetition, unbecoming language, improper motives, failure to address the Chairman, reflections of a personal character on any Member or employee of the Authority, or any breach of order, and may direct such Member, if speaking, to discontinue the speech and be seated.

P 27. Disorderly conduct 27.1 If at a meeting any Member, in the opinion of the Chairman notified to the

Authority, misconducts themself by persistently disregarding the ruling of the Chairman, or by behaving irregularly, improperly, or offensively, or by wilfully obstructing the business of the Authority, the Chairman or any other Member may move "that the Member named should not be heard further", and the motion as seconded shall be put and determined without further discussion.

27.2 If the Member named continues to misconduct themself after the motion under the foregoing paragraph has been carried, the Chairman shall either move "that the Member named should be required to leave the meeting" in which case the motion shall be put and determined without seconding or discussion, or adjourn the meeting of the Authority for such period as the Chairman shall consider expedient.

27.3 In the event of general disturbance or repeated interruptions which in the opinion of the Chairman renders the orderly dispatch of business impossible, the Chairman may forthwith adjourn the meeting in accordance with Standing Order 12.1.


P 28. Disturbance by members of the public 28.1 If a member of the public interrupts the proceedings at any meeting the

Chairman shall warn that person. If the interruption continues, the Chairman shall order the person's removal from the room. In case of general disturbance or repeated interruptions in any part of the room, the Chairman shall order that part to be cleared of members of the public.

P 29. Disclosure of Authority business 29.1 All documents marked "confidential", all documents marked

"exempt/confidential", all documents and matters which have been, or are intended to be, raised or discussed in the absence of the press and public, and all discussions on those occasions, shall be treated as confidential.

29.2 Without the consent of the Chief Fire Officer and Chief Executive, a Member shall not disclose to any person not being a Member or an officer of the Authority any such business.

P a r t 2 - G e n e r a l

30. Financial Regulations 30.1 Such Financial Regulations as the Authority may from time to time make for

regulating and controlling the finances of the Authority shall have the force and validity of Standing Orders (see Section D).

31. Custody of the Common Seal 31.1 The Common Seal of the Authority shall be kept in a safe place in the custody

of the Monitoring Officer. 32. Sealing of documents 32.1 The Common Seal of the Authority shall not be affixed to any document

unless the sealing has been authorised by a resolution of the Authority or of a Panel or by an officer acting under delegated powers but a resolution of the Authority or of such Panel which requires for its execution the sealing of any document shall be sufficient authority for the purpose.

32.2 The affixing of the Common Seal shall be attested by the Monitoring Officer or an officer authorised by him in writing for the purpose.

32.3 An entry of the sealing of each document shall be made in a book provided for that purpose and on each occasion of sealing the book shall be signed by the Monitoring Officer or authorised officer present at the sealing.

32.4 Where it is not essential or customary to affix the Common Seal, any person with sufficient specific or general delegated power from the Authority may sign on behalf of the Authority any document necessary to give effect to a decision of the Authority or of a Panel or officer acting under delegated powers.


32.5 Where any document will be a necessary step in legal proceedings on behalf of the Authority it shall be signed by the Monitoring Officer, or an officer authorised in writing by the Authority for the purpose.

33. Inspection of documents 33.1 Members may, for the purposes of their duty as such Members but not

otherwise, on application to the Monitoring Officer inspect any document which has been considered by a Panel or by the Authority, and if copies are available shall on request be supplied for the like purposes with a copy of such a document.

33.2 A Member shall not knowingly inspect and shall not call for a copy of any document relating to a matter in which they have a personal interest which is also a prejudicial interest under the Authority's Code of Conduct.

33.3 This Standing Order shall not preclude the Monitoring Officer from declining to allow inspection of any document which is, or in the event of legal proceedings would be, protected by privilege arising from the relationship of solicitor and client.

33.4 All reports made or minutes kept by any Panel shall be open for the inspection of any Member and the Monitoring Officer shall send to any Member who so requests all reports and papers (save those marked "exempt/ confidential") submitted to any Panel.

NOTE: See Standing Order 29 that relates to disclosure of Authority business. 34. Inspection of land and premises, etc. 34.1 Unless specifically authorised to do so by the Authority or a Panel, a Member

shall not issue any order on behalf of the Authority or claim by virtue of membership of the Authority any right to inspect or to enter upon any lands or premises which the Authority has the power or duty to inspect or enter.

35. Interest of Members or Officers in appointments 35.1 A candidate for any appointment under the Authority who knows that they are

related to any Member or Officer of the Authority shall when making application disclose that relationship in writing. This requirement shall be included in any application form. A candidate who fails to disclose such a relationship shall be disqualified for the appointment and if appointed shall be liable to dismissal without notice.

35.2 Every Member and every Officer of the Authority shall disclose to the Chief Fire Officer and Chief Executive any relationship known to them to exist between themself and any person known to be a candidate for an appointment under the Authority. The Chief Fire Officer and Chief Executive shall report to the Members or officers responsible for making the appointment details of the disclosure.

35.3 For the purpose of this Standing Order persons shall be deemed to be related if they are family members. Family membership includes a partner (whether or not this is a formal marriage or civil partnership), a parent, a parent-in-law, a son or daughter, a stepson or stepdaughter, the child of a partner, a brother or sister, a partner’s brother or sister, or a grandparent.


36. Interest of Officers in contracts 36.1 The Chief Fire Officer and Chief Executive shall record in a book to be kept

for the purpose particulars of any notice given by an officer of the Authority, under the Local Government Act 1972, of any pecuniary interest in a contract and the book shall be open during office hours for the inspection of any Member.

P 37. Members’ Interests 37.1 Members shall observe the requirements of the Authority’s Code of Conduct

for Members (see section F - Sectionpart 6 4). 37.2 Without prejudice to the requirements of the Code of Conduct any Member

who (whether personally or by any partner or associate) or whose employer or company is about to act in any professional or private capacity in any matter in which the Authority has an interest, shall forthwith notify the fact to the Monitoring Officer.

38. Canvassing of Members 38.1 Canvassing of Members directly or indirectly for any staff appointment under

the Authority shall disqualify the candidate concerned for such appointment. The purpose of this Standing Order shall be included in the form of application.

39. Standing Orders to be given to Members 39.1 A copy of these Standing Orders shall be given to each Member upon

appointment to the Authority.


Part 3 - Panels (Committees) of the Authority P 40. Appointment of Panels

40.1 At its annual meeting the Authority:

i. May resolve which Panels shall be appointed, what shall be the terms of reference of each of those Panels and of how many voting Members each Panel shall consist.

ii. May resolve that non-voting co-optees shall also be appointed to any such Panel.

iii. Shall specify the number of non-voting co-optees and the functions in relation to the Panel each such person so appointed may exercise.

iv. Shall ensure that a Standards Panel is appointed which complies with the requirements of the Local Government Act 2000 and relevant Regulations.

40.2 The terms of reference of Panels as agreed from time to time are set out in

Section B of the Members Handbook. 40.3 The Authority may at any time amend resolutions made under the previous

paragraph. 40.4 Subject to Standing Order 40.17, no Panel may appoint a sub-panel to

discharge any of the functions of the Authority that the Panel may discharge without the approval of the Authority.

40.5 Each Panel set up under this Standing Order shall continue to discharge the functions committed to it until the Authority resolves otherwise.

40.6 Each person appointed as a Member of or co-optee to such a Panel shall continue to act as such for as long as that person has been appointed by the Authority, or until such time as the appointment is terminated by the Authority or that person resigns.

40.7 The Monitoring Officer shall submit a report to the Authority showing the allocation of seats which would be in the Monitoring Officer's opinion best meet the requirements of the allocation of seats between political groups in accordance with the requirements of the Local Government and Housing Act 1989. Such report shall be submitted:

i. Whenever the Authority is required to review the allocation of seats

on Panels between political groups or ii. The Authority resolves to carry out such a review; or iii it appears proper to the Monitoring Officer to do so.

40.8 In the light of such a report the Authority shall determine the allocation of

seats to political groups. 40.9 Whenever an appointment of a voting Member for a Panel needs to be

made in accordance with the wishes of the political group to whom the seat has been allocated, and whenever such an appointment falls to be terminated in accordance with such wishes, then the Monitoring Officer shall make or terminate the appointment accordingly.


40.10 Panels may from time to time establish working groups/working parties/advisory bodies, the membership of which shall be drawn from Members and/or non-voting co-optees. The proceedings of any such group shall be reported to the Panel that established it and should include any recommendations or advice from that group. No Panel may delegate its functions to any such group.

40.11 The Authority or the relevant Panel may fix the date, time and place of ordinary meetings of Panels.

40.12 The Chairman or Vice-Chairman of the Panel may call a special meeting of the Panel as the case may be at any time.

40.13 The Authority may appoint, from amongst its voting Members, a Chairman and a Vice Chairman for each Panel.

40.14 If no appointments have been made by the Authority under Standing Order 40.13 the Panel at its first meeting after the annual meeting of the Authority or in the case of a vacancy at any meeting shall elect from amongst its voting Members a Chairman and and may elect a Vice- Chairman.

40.15 In the absence of the Chairman or Vice Chairman of a meeting of a Panel, those voting Members present shall elect a person from amongst their number to preside over the meeting.

40.16 If it is necessary for a chairman to be elected, the Monitoring Officer shall invite nominations and shall exercise the powers of the chairman in order to regulate the discussion.

40.17 The Standards Panel may appoint one or more sub-panels to deal with complaints referred to the Authority for assessment or determination and for any other purposes for which a Standards Committee may appoint sub-committees. Standing Orders 40.5, 40.6 and 40.11 to 40.16 shall apply to any such sub-panel with the substitution of the word 'sub-panel' for 'Panel' and 'Standards Panel' for 'Authority' in each case.

41. Standing Orders to apply to Panels 41.1 Standing Orders 1 (interpretation), 6 (record of attendances), 7 (admission

of public and press), 8 (motions affecting employees), 13.4 (lack of quorum), 15.8 (Callover), 15 (points of order), 22.2 (voting), 23 (voting on appointments), 26-28 (improper conduct), 29 (disclosure of Authority business), 37 (Members interests) and 40 (Appointment of Panels) shall, with any necessary modification, apply to all meetings of Panels and Sub Panels.


SECTION B CONTRACT STANDING ORDERS 1. Introduction 1.1 These Contract Standing Orders govern the making of Contracts for and on behalf of the

East Sussex Fire Authority. They regulate the manner in which procurement takes place and include provision for competition. They were approved on 10 December 2007.

1.2 Contract Standing Orders are referred to below as “CSOs” or “CSO” as appropriate and

East Sussex Fire Authority is referred to as “the Authority”. 2. Purpose 2.1 The main purposes of these CSOs are to ensure that the Authority: (a) complies with the laws which apply to the Contract processes; (b) has clear and fair rules for contracting; (c) has suitable safeguards against fraud and corruption in its Contract processes; and (d) achieves Best Value with its Contracts. 3. Interpretation 3.1 Words and phrases used in the CSOs which are defined are set out in Appendix 1 and for

ease of reference begin with capital letters. 3.2 Any dispute or difference as to the interpretation of CSOs shall be determined by a Principal

Officer. If the Principal Officer considers that it is necessary to obtain financial and/or legal advice, the Principal Officer shall consult the Treasurer and/or Monitoring Officer before making a determination.

4. Compliance 4.1 Every Contract made by the Authority must comply with: (a) the EU Procurement Directives and any relevant English law; (b) these CSOs, subject to CSOs 5 (Application) and 7 (Waivers); and (c) the Authority’s Financial Regulations. 4.2 In interpreting and applying the CSOs, where there is a difference, (a) EU Procurement Directives take precedence over both English law and the CSOs;

and (b) English law takes precedence over the CSOs. 4.3 For each Contract, the Contract Officer (whether an officer of the Authority or not) is

responsible for ensuring that there is compliance by the Authority with CSO 4.1. The Contract Officer must also have regard to the Authority’s other procurement documents, which include:

(a) the commissioning and procurement strategy; (b) the information management strategy; (c) the capital asset management strategy; (d) the contracts code of practice and


(e) relevant East Sussex Fire and Rescue Service manuals relating to project management, electronic procurement and financial management policies and procedures.

4.4 The Contract Officer must ensure that any other Person (whether an officer of the Authority

or not) who assists the Authority in procuring and managing a Contract complies with CSO 4.1.

4.5 The Contract Officer must contact the Contracts and Insurance Manager at the outset of the

procurement process to ensure the proposed Contract is registered on the Contracts Register and must liaise with Contracts and Insurance Manager thereafter so that all relevant information is supplied as required under CSO 6 (Contracts Register). This requirement applies to Contract extensions and renewals as well as to new Contracts.

4.6 The Contracts and Insurance Manager shall assist Principal Officers to manage effectively

and prudently the corporate Contract management arrangements of the Authority as determined by these CSOs and the Authority’s other procurement documents such as those mentioned in CSO 4.3.

5. Application 5.1 The CSOs shall not apply to the following: (a) any Contract of employment; (b) any Contract relating to the engagement of counsel or other legal specialists; (c) any Contract relating to the transfer, acquisition or disposal of land or any interest in

land; (d) any Contract for the provision of Supplies, Services or Works where the Cost of the

Contract is estimated at less than £10,000, but in such cases procurement must be in accordance with the Authority’s Financial Regulations and any other applicable procurement documents of the Authority such as those mentioned in CSO 4.3 (Compliance);

(e) any Contract where the Authority is the seller rather than the buyer, except to the extent that CSOs are applied to disposals of Supplies by the Authority by CSO 22 (Disposal of Supplies).

6. Contracts Register 6.1 The Authority shall keep a single, corporate, electronic register of Contracts for which the

Cost of the Contract as awarded is £10,000 or more. The Contracts Register shall include the following as a minimum in relation to each Contract:

(a) name of the Contract Officer; (b) appropriate Quotation / Tendering information to assist with the determination of Best

Value, including type of Quotation / Tender process used (for example Framework Agreement, Select List etc) and confirmation Quotation / Tender information requirements were met;

(c) Contract category (Supplies, Service, Works or combination thereof); (d) summary of the Supplies, Services and / or Works to be provided under the Contract; (e) whether or not the Contract has been procured through a Consortium or Partnership

arrangement and the details thereof; (f) details of any declarations of interest under CSO 9 (Declarations of interests);


(g) details of any waiver(s) approved under CSO 7 (Waivers); (h) name of the Contractor; (i) Contract duration; (j) Cost of the Contract (which may be the anticipated or estimated cost where the

Contract is for an indeterminate amount); (k) all payments under the Contract; (lk) details of any retentions under the Contract; (ml) any other Contract management information that may be relevant to the Contract, for

example compliance / potential default issues. 6.2 The Contracts Register shall be kept by the Authority’s Contracts and Insurance Manager. 6.3 The Contracts Register shall be open for inspection by any Member of the Authority and

otherwise as directed by a Principal Officer. 7. Waivers 7.1 Any proposal to waive any of the provisions of one or more CSOs in relation to a Contract

must be referred by the Contract Officer to a Principal Officer. Except in an emergency, the proposal must be in writing, setting out the reason(s) for the waiver.

7.2 Subject to CSO 7.3, a Principal Officer, may waive any provision of one or more CSOs in

relation to a proposed Contract. Except in an emergency, the Principal Officer shall consult the Monitoring Officer, the Treasurer and the Relevant Member of the Authority before making a decision.

7.3 The following CSOs cannot be waived: (a) CSO 4.1(a) – Compliance with EU Procurement Directives and any relevant English

law; (b) CSO 9 – Declarations of interests; and (c) CSO 19 – Mandatory Contract clauses. 7.4 All waivers of CSOs must be reported to the Authority or its Scrutiny and Audit Panel and

recorded by the Contracts & Insurance Manager in the Contracts Register. 8. Authorised Officers 8.1 Contract Officers are hereby given delegated power from the Authority to take any steps

required or authorised under the CSOs but may only accept a Quotation or Tender if authorised to do so under CSO 8.2.

8.2 Each officer of the Authority in the categories listed below is hereby given delegated power

from the Authority to accept Quotations or Tenders for the amounts shown: (a) Where the Cost of the Contract is less than £20,00025,000, any officer who is

designated as either a budget holder or as responsible for Contracts of a particular typeHead of Department;

(b) Where the Cost of the Contract is £20,00025,001 or more but less than £200,000, any Principal Officer;

(c) Where the Cost of the Contract is £200,000 or more, the Chief Fire Officer and Chief


Executive or the Deputy Chief Fire Officer. 9. Declarations of interests 9.1 At the beginning of and throughout the Contract process, the Contract Officer and any other

Person (whether an officer of the Authority or not) involved in process must consider if they have any direct or indirect interests in either the Contract or in any Contractor who wishes to be appointed for the Contract. Any such interests must be declared immediately in writing to a Principal Officer and recorded in the Contracts Register.

9.2 In relation to each declaration under CSO 9.1, if the interest is a financial interest, the

Person who made the declaration shall take no further part in the Contract process. If the interest is not a financial interest, the Principal Officer must decide how far, if at all, the Person making the declaration may participate in the Contract process. The Principal Officer must ensure that a written record is kept of the outcome of any declaration of interest as part of the Contracts Register.

10. Valuation and aggregation 10.1 For each proposed Contract, the Contract Officer must estimate and record the Cost of the

Contract. 10.2 The Cost of the Contract must not be artificially divided either in structure or duration so as

to avoid the application of any CSO or the EU Procurement Directives. 11. Budgeting 11.1 For each proposed Contract, the Contract Officer must ensure that the Cost of the Contract

will be within the financial capability of the Authority and either that provision has been made for the Contract in the Authority’s approved revenue budget or capital programme provision or that appropriate adjustments to the revenue budget / or capital programme provision are made in accordance with Financial Regulations before the Authority accepts any Quotation or Tender for the Contract.

11.2 Capital schemes :- If a Contract is to be financed from the capital programme, before the

Authority accepts any Quotation or Tender for the Contract the Contract Officer must ensure that:

(a) the Cost of the Contract can be met from the individual scheme provision within the approved capital programme of the Authority and that, for a Contract which will carry on over more than one financial year, the capital programme makes allowance for the financial implications of the phasing of the Contract between years;

(b) the approved limits contained within the prudential guidelines supporting the approval capital programme can be met;

(c) any necessary and specific government approvals have been received; and (d) any Partnership or Regional Management Board requirements or national and local

funding requirements can be met.


11.3 Revenue budgets:: - If a Contract is to have a duration of more than one financial year, tThe Contract Officer must ensure that the Cost of the Contract for the current year and any subsequent years of the Contract can be met by the Authority from the budget for the financial year in which the Contract is to begin and from budget commitments for future years as necessary.

11.4 CSOs 11.1 to 11.3 and 21 (Contract variation) will also apply in relation to any increase in

the Cost of the Contract to the Authority as a result of any variation to the Contract after acceptance of a Quotation or Tender.

12. Choice of procurement method 12.1 At the beginning of the Contract process, the Contract Officer shall consider and select the

procurement method which is likely to is expected to will give Best Value to the Authority in relation to the proposed Contract, bearing in mind that:

(a) any best practice commissioning and procurement guidance made available from

time to time by the Authority must be considered; (b) there will be stricter requirements for Contracts to which the full EU Procurement

Directives apply; (c) if available, an Approved Joint Purchasing ArrangementFramework Agreement as

described in CSO 12.2 and 12.3 may be the most appropriate arrangement; and (d) if available, collaborative procurement arrangements may be appropriate; and (ed) if available, electronic purchasing may be the most suitable method. 12.2 A Framework Agreement For the purposes of the CSOs, a joint purchasing arrangement

means anyis an agreement with contractors that sets out terms and conditions under which specific purchases (call-offs) can be made through the terms of the agreement. Examples of organisations setting up Framework Agreements which are likely to be used include:

(a) Buying Solutionsnational, regional or local Consortium or Partnership; (b) The Pro5 Local Authority Consortiagovernment, government agency or public

authority Framework Agreement; (c) The Consortium (sucessor to FireBuy)Joint Commissioning arrangement; or (d) government, government agency or public authority dynamic purchasing system or

electronic auction or other local authority partnership agreements. 12.3 The joint purchasing arrangements of the organisations or of the descriptions listed below

are Approved Joint Purchasing Arrangements: (a) Firebuy Limited; (b) South East Fire and Rescue Regional Procurement; (c) South East Fire and Rescue Regional Collaboration; (d) Fire Service Procurement Association (or its successor) (e) South East Centre for Excellence (known as SECE) (f) Construction Line; (g) any others approved in accordance with CSO 12(4).


12.34 The Contract Officer must A joint purchasing arrangement may be approved as an Approved Joint Purchasing Arrangement by a Principal Officer if satisfiedsatisfy themselves that that the Framework Agreementit has been constituted in a way that lawfully permits the Authority to use the arrangement in procuring Contracts and that using it is expected to has the potential forwill providing provide Best Value to the Authority. The following information shall be ascertained in writing from the relevant procurement manager of the joint purchasing arrangement and supplied by the Contract Officer to the Principal Officer as part of the approval processIn particular evidence shall be sought that:

(a) that the EU Procurement RegulationsDirectives, where relevant, and any applicable English law have been followed;

(b) that the proposed Framework Agreementjoint purchasing arrangements have has satisfied the approved contract standing orders or other similar rules of the organisation acting as the procurer;

(c) that full Quotation / Tender and Contract award information is available for inspection on reasonable request and

(d) that a summary of the Quotation / Tender selection information including financial differentials will be submitted to the Contract Officer for the Authority’s Best Value monitoring needs, to be kept with the Contracts Register.

12.45 If the Contract Officer selects an Approved Joint Purchasing Arrangementa Framework

Agreement for the Contract, he/shethey shall ensure that the Authority complies with the requirements of the Approved Joint Purchasing ArrangementFramework Agreement in obtaining any Quotations or Tenders.

12.56 Depending on the estimated Cost of the Contract and the procurement method selected,

the Contract Officer will also need to consider and determine: (a) the criteria for selecting the Contractors who will be invited to submit Quotations or

Tenders (see CSO 11.7 - Budgeting); (b) the procedure for obtaining Quotations or Tenders (see Appendix 2); (c) the form of Contract (see CSO 18 – Contract formalities and CSO 19 – Mandatory

Contract clauses); and (d) the criteria for assessing which Quotation or Tender shall be accepted (see CSO 11.7

– Budgeting and CSO 15 – Evaluation of Quotations or Tenders). 12.67 Prior to Contract award, the Contract Officer must ensure that an adequate technical and

financial appraisal of the proposed Contractors, commensurate with the Cost of the Contract, has been undertaken at an appropriate stage in the process. Where financial appraisals are necessary they shall be carried by East Sussex County Council’s financial services personnel or otherwise as directed by the Treasurer. If the open procedure (described in Appendix 2) is used, this will be on receipt of the Quotations or Tenders. If the restricted procedure (also described in Appendix 2) is used, this will be on receipt of expressions of interest and before receipt of Quotations or Tenders.

12.7 When any employee either of the Authority or of a Contractor may be affected by any

transfer arrangement, the Contract Officer must ensure that the Transfer of Undertaking (Protection of Employment) (TUPE) issues are considered and obtain legal advice before proceeding with inviting Tenders or Quotations.

13. Competition processes


Q u o t a t i o n o r f o r m a l T e n d e r p r o c e s s - E s t i m a t e d C o s t o f t h e C o n t r a c t £ 1 0 , 0 0 0 t o £ 5 0 2 5 , 0 0 0

13.1 For a proposed Contract where the estimated Cost of the Contract is £10,000 to £5025,000,

the Contract Officer must obtain Quotations, or Tenders if he/she considers this more appropriate, in accordance with either CSO 13.2 or CSO 13.3.

13.2 The Contract Officer may give Public Notice of the proposed Contract if it appears cost

effective to do so and shall seek at least three Quotations or Tenders. If less than two Quotations or Tenders are received then the Contracts Officer must consult with a Principal Officer and provide evidence to show that the Authority can obtain value for money. and obtain at least two, OR

13.3 The Contract Officer shall obtain Quotation(s) or Tender(s) in one of the following ways: (a) where there is a suitable Approved Joint Purchasing ArrangementFramework

Agreement, by using that Arrangement and (if the particular Arrangement permits competition by the Authority) seeking Quotations or Tenders from at least three Contractors and obtaining at least two;

(b) where the Authority maintains a suitable list of selected Approved Contractors under CSO 23 (Compilation of selected listsApproved Lists of Contractors), obtaining Quotations or Tenders from at least two Contractors on the list;

(c) where, in the opinion of the Contract Officer after consulting a Principal Officer, there is only one Contractor who can properly provide the Supplies, Services or Works required for the Contract, obtaining a Quotation or Tender from that Contractor; or

(d) where, in the opinion of the Contract Officer after consulting a Principal Officer, it is appropriate to seek a Quotation or Tender from a particular Contractor because of the developmental or trial nature of the Supplies, Services or Works to be provided, obtaining a Quotation or Tender from that Contractor.

Formal Tender process - Est imated Cost of the Contract in excess of

£5025,001 to £100200,000 13.4 For a proposed Contract where the estimated Cost of the Contract is £5025,001 to

£100200,000, the Contract Officer must seek and obtain Tenders in accordance with either CSO 13.5 or CSO 13.6.

13.5 The Contract Officer shall give Public Notice of the proposed Contract, shall seek at least

fourthree Tenders. If less than two Tenders are received then the Contracts Officer must consult with Chief Fire Officer and Chief Executive or the Deputy Chief Fire Officer and provide evidence to show that the Authority can obtain value for money. and obtain at least two, OR

13.6 The Contract Officer shall seek and obtain Tender(s) in one of the following ways: (a) where there is a suitable Approved Joint Purchasing ArrangementFramework

Agreement, by using that Arrangement and (if the particular Arrangement permits competition by the Authority) seeking Quotations or Tenders from at least fourthree Contractors and obtaining at least two;

(b) where the Authority maintains a suitable list of selected Contractors under CSO 23 (Compilation of selected lists of Contractors), seeking Quotations or Tenders from at least three Contractors on the list and obtaining at least two;


(c) where, in the opinion of the Contract Officer after consulting a Principalthe Chief Fire Officer and Chief Executive or the Deputy Chief Fire Officer, there is only one Contractor who can properly provide the Supplies, Services or Works required for the Contract, obtaining a Quotation or Tender from that Contractor;

(d) where, in the opinion of the Contract Officer after consulting the Chief Fire Officer and Chief Executive or the Deputy Chief Firea Principal Officer, it is appropriate to seek a Quotation or Tender from a particular Contractor because of the developmental or trial nature of the Supplies, Services or Works to be provided, obtaining a Quotation or Tender from that Contractor.

Formal Tender process - Est imated Cost of the Contract £100200,001 or

more 13.7 For a proposed Contract where the estimated Cost of the Contract is above £100200,001 or

more, the Contract Officer must seek and obtain Tenders in accordance with either CSO 13.8 or CSO 13.9, but in both cases this shall be subject to CSO 13.10.

13.8 The Contract Officer shall give Public Notice of the proposed Contract, shall seek at least

five Tenders. If less than two Quotations or Tenders are received then the Contracts Officer must consult with the Treasurer and the Monitoring Officer and provide evidence to show that the Authority can obtain value for money. and obtain at least two., OR


13.9 The Contract Officer shall seek and obtain Tender(s) in one of the following ways: (a) where there is a suitable Approved Joint Purchasing ArrangementFramework

Agreement, by using that Arrangement and (if the particular Arrangement permits competition by the Authority) seeking Quotations or Tenders from at least five Contractors and obtaining at least two;

(b) where the Authority maintains a suitable list of selected Contractors under CSO 23 (Compilation of selected lists of Contractors), seeking Quotations or Tenders from at least five Contractors on the list and obtaining at least two;

(c) where, in the opinion of the Contract Officer after consulting with the Treasurer and the Monitoring Officer a Principal Officer, there is only one Contractor who can properly provide the Supplies, Services or Works required for the Contract, obtaining a Quotation or Tender from that Contractor;

(d) where, in the opinion of the Contract Officer after consulting with the Treasurer and the Monitoring Officera Principal Officer, it is appropriate to seek a Quotation or Tender from a particular Contractor because of the developmental or trial nature of the Supplies, Services or Works to be provided, obtaining a Quotation or Tender from that Contractor.

13.10 Where the estimated Cost of a Contract is above the relevant threshold in the EU

Procurement Directives, the procurement method chosen must be one which enables the Authority to comply with the Directives. In relation to CSO 13.8, this would include giving public notice in the Official Journal of the European Union. In relation to CSO 13.9 (a) and (b) the Approved Joint Framework Arrangement Agreement or list of selected Contractors would need to have been set up in a way that allowed compliance with the Directives. It is not permitted to use CSO 13.9 (b) for procurement above the EU Procurement Directive threshold. Before CSO 13.9 (c) or CSO 13.9 (d) is chosen, the Principal Contract Officer must seek advice from the Monitoring Officer as to whether the circumstances are sufficient to allow compliance with the EU Procurement Directives.

14. Delivery opening and recording of Quotations or Tenders 14.1 Every invitation to submit a Quotation or Tender must state that the Authority does not bind

itself to accept the Most Economically Advantageous Quotation or Tender or the Lowest Cost Quotation or Tender, or indeed, any Quotation or Tender.

14.21 After the expiry of the period specified in any Public Notice, all Contractors who have

applied or been selected to submit a Quotation or Tender shall be invited to do so. 14.2 Every invitation to submit a Quotation or Tender must state that the Authority does not bind

itself to accept the Most Economically Advantageous Quotation / Tender or the Lowest Cost Quotation / Tender, or indeed, any Quotation / Tender.

14.3 Every invitation to submit a Quotation or Tender must either: (a) if paper based, state that the Quotation or Tender must be delivered in a sealed

envelope, without any mark identifying the sender, addressed to the Chief Fire Officer and Chief ExecutiveContracts and Insurance Manager and bearing the words "Quotation for…” or “Tender for …. " and the title of the Contract; or

(b) be received electronically in a designated format.


14.4 The Contract Officer and Insurance Manager shall ensure that the receipt of paper based Quotations or Tenders is recorded and that they are endorsed with the date of receipt.

14.5 Paper based Quotations or Tenders where the estimated Cost of the Contract does not

exceed £10,000 will remain unopened in the custody of the Contract Officer or a Principal Officer until the time appointed for their opening.

14.56 Paper based Quotations or Tenders where the estimated Cost of the Contract is £10,00025,001 or more will remain unopened in the secure custody of a Principal Officer or the Contracts and Insurance Manager until the time appointed for their opening.

14.67 Electronically received Quotations or Tenders will remain in their unique, secure electronic

state until the time appointed for their opening. 14.78 All Quotations or Tenders will be opened together after the end of the time set for

submission. 14.9 All Quotations or Tenders where the estimated Cost of the Contract does not exceed

£10,000 will be opened in the presence of at least two officers of the Authority. One of the officers present at the opening must be independent from the Contract Officer.

14.810 All Quotations or Tenders where the estimated Cost of the Contract is £1025,000 001 or

more will be opened in the presence of at least two officers of the Authority. One of these must be a Principal Officer. The Contracts and Insurance Manager shall also be present if available. One of the officers present at the opening must be independent from the Contract Officer.

14.911 The date of opening, the name of the Contractor who has submitted each Quotation or

Tender received and the identity of the officers present at the time of opening shall be recorded. For electronic Quotations or Tenders a secure, auditable electronic record showing the identity of the officers opening the Quotation / Tender, and the date of opening shall be added to the file.

14.102 Any electronic Quotations or Tenders must conform to any protocols issued from time to

time by a Principal Officer. 14.113 Any Quotations or Tenders received after the end of the time set for submission or which

contravene any provision of these CSOs or any applicable Quotation or Tender conditions, instructions or protocols will only be opened and accepted for evaluation with the authority of a Principal Officer, who will consult with Treasurer and the Monitoring Officer if minded to waive compliance. The Principal Officer shall have authority to waive compliance if he/she sees fit, but any Quotation or Tender received after the time set for submission will normally be rejected. Any rejected Quotation or Tender may only be opened to ascertain the name of the Contractor who submitted it, so that it can be returned to the Contractor.

15. Evaluation of Quotations or Tenders 15.1 Subject to CSO 15.2 and 15.3, the Contract award must be assessed in accordance with

the Most Economically Advantageous Quotation / Tender evaluation criteria specified in the Quotation / Tender documents.


15.2 For Contracts where the Cost of the Contract was estimated not to exceed £2550,000, if there are no such Most Economically Advantageous Quotation / Tender evaluation criteria specified in the Quotation / Tender documents, then the sole evaluation criterion will be the Lowest Cost.

15.3 For Contracts where the Cost of the Contract was estimated to exceed £2550,0010, a

Tender evaluation procedure based on the identification of the Most Economically Advantageous Tender shall normally be specified and applied in the evaluation of the Contract unless the Contract Officer, after consulting a Principal Officerthe relevant Authorised Officer CSO 8, determines that a tender evaluation based on Lowest Cost is more appropriate. If the Lowest Cost evaluation criterion has been specified, then the sole criterion will be Lowest Cost.

16. Clarification after receipt of Quotations or Tenders Arithmetical errors 16.1 CSO 16.2 shall apply where any errors of arithmetic are discovered after the time set for

submission in a Quotation or Tender.

16.2 Subject to the approval of a Principal Officer and only prior to the acceptance of any

Quotation or Tender for the Contract, the Contractor will be allowed either (a) to confirm without amendments or withdraw the Quotation or Tender or (b) to amend the Quotation or Tender in order to correct those errors.

Clarification of other matters 16.3 In relation to Quotations or Tenders submitted under the open and restricted procedures

(described in Appendix 2) CSO 16.4 shall apply where the Contract Officer considers that matters other than arithmetical errors need to be clarified after the time set for submission of Quotations / Tenders.

16.4 Discussions may take place with a Contractor but only for the purpose of clarifying or

supplementing the content of the Contractor’s Quotation / or Tender or the requirements of the Authority. There shall be not be any negotiations on fundamental aspects of the Contract, nor any variations which are likely to distort competition, in particular on prices. Any such clarifications after receipt of Quotations or/ Tenders and before the letting of a Contract must have the authorisation of a Principal Officer. If the Principal Officer considers that it is necessary to obtain financial and/or legal advice, the Principal Officer shall consult the Treasurer and/or the Monitoring Officer before any discussions take place with the Contractor. Any amendments, once agreed, must be put in writing by the Contractor and shall be signed by the Contractor.

16.5 CSO 16.4 will not apply where the use of the negotiated procedure or the competitive

dialogue procedure (described in Appendix 2) have been approved by the Authority and in such cases negotiation will be permitted within the terms of the procurement process approved by the Authority.

17. Acceptance of Quotations or Tenders


17.1 The Quotation or Tender for a Contract which has been assessed under CSO 15

(Evaluation of Quotations or Tenders) as the preferred Quotation or Tender may be recommended for acceptance by the Contract Officer. If for any reason a preferred Quotation or Tender is withdrawn or ceases to be preferred before it has been accepted, the Contract Officer may recommend another Quotation or Tender for acceptance.

17.2 Where the Cost of a Contract is above the relevant thresholds in the EU Procurement Directives, before a Tender for the Contract is accepted, between notification of the provisional award decision to Contractors who submitted Tenders and the date on which the successful Tender is accepted there shall be a standstill period in accordance with the EU Procurement Directives.:-

in the case of fax or electronic notification, there shall be a 10 day standstill period; or in the case of notification by any other means, there shall be a 15 day standstill

period or 10 day standstill period ending at midnight after the date the last contractor receives such notice, whichever is the earlier.

17.3 Subject to CSO 17.2, the preferred Quotation or Tender may be accepted by any officer

with the necessary delegated power under CSO 8.2 (Authorised Officers). 17.4 The Contract Officer shall record the Quotation or Tender accepted and any amendments

agreed by under CSO 16 (Clarification after receipt of Quotations or Tenders). Immediately after the award of the Contract, the Contract Officer shall ensure that this and any other information required to update the Contracts Register is supplied to the Contracts and Insurance Manager.

18. Contract formalities 18.1 Every Contract shall be in writing. 18.2 Subject to CSO 18.3, the Contract Officer shall determine the form of the Contract. 18.3 Where the Cost of a Contract exceeds £500,000 the Contract must be in a form agreed by a

Principal Officer in consultation with the in a form approved by a Principal Officerprepared in liaison with the Monitoring Officer.

18.4 Subject to CSO 18.5, each Contract shall be signed by an officer of the Authority who has

the necessary delegated power under CSO 78.2 (WaiversAuthorised Officers). 18.5 The Contract Officer must consider, in conjunction with the Contracts and Insurance

Manager, whether by the nature of the Contract it should be completed under the common seal of the Authority. In any event if the Cost of the Contract Where the Cost of a Contract for the provision of Works exceeds £500,000 the Contract must be completed under the common seal of the Authority on the recommendation of a Principal Officer.

19. Mandatory Contract clauses Termination for fraud or corruption


19.1 The clause set out in CSO 19.2 (or an equivalent clause of similar effect) shall be included in every written Contract where the estimated Cost of the Contract at Tender preparation stage exceeds £50,000.

19.2 “The Authority may terminate the Contract and recover all its losses if the Contractor, its

employees or anyone acting on the Contractor’sits behalf do any of the following things: (a) offer, give or agree to give to anyone any inducement or reward in respect of this or

any other Authority Contract (even if the Contractor does not know what has been done); or

(b) commit an offence under the Prevention of Corruption Acts 1889 to 1916 or Ssection 117(2) of the Local Government Act 1972; or


(c) commit any fraud in connection with this or any other AuthorityCouncil Contract

whether alone or in conjunction with AuthorityCouncil members or employees. Any clause limiting the Contractor’s liability shall not apply to this clause.” Use of consultants in the Contract processes 19.3 It shall be a condition of any Contract between the Authority and any Person who is not an

employee of the Authority, but who is authorised engaged to carry out the Authority’s functions under CSOs, that such Person complies with the CSOs as if that Person were an employee of the Authority.

20. Monitoring Contract performance 20.1 The Contract Officer responsible for a Contract exceeding £50,000 in value, must ensure

that appropriate management and performance monitoring mechanisms are in place in accordance with procurement policies and procedures defined in the relevant East Sussex Fire and Rescue Service Manuals or any additional protocols determined by a Principal Officer.

21. Contract variation 21.1 Subject to CSO 21.2, variations to extend the period or value of a Contract (other than

those already provided for within the original terms of the Contract) may be approved by the Contract Officer after consulting a Principal Officer, where Best Value to the Authority can be demonstrated.

21.2 The Treasurer and the Monitoring Officer shall be consulted if approval of a proposed

variation would mean that the Supplies, Services and / or Works to be added to or deleted from the Contract would render the Contract substantially different in scope and cost.

21.3 In relation to any such variation, the Contract Officer must ensure that before the variation is

approved: (a) the variation can be made without the Authority breaching the EU Procurement

Directives and any relevant English law; (b) the Cost of the Contract after the variation is within the financial capability of the

Authority; and (c) either that provision has been made for the cost of the variation in the Authority’s

approved budget or that appropriate adjustments to the budget are made in accordance with Financial Regulations.

22. Disposal of Supplies 22.1 When the Chief Fire Officer and Chief Executive determines, under his delegated power to

authorise the disposal of surplus supplies, that competitive Quotations or Tenders shall be sought, the Contract Officer shall seek to comply with the spirit of CSOs, particularly CSOs 8 (Authorised Officers), 9 (Declarations of Interest), 14 (Delivery, opening and recording of Quotations or Tenders), 17 (Acceptance of Quotations or Tenders), 18 (Contract formalities) and 19 (Mandatory Contract clauses).


22.2 The Contract Officer shall take instructions as necessary from a Principal Officer in relation to the disposal method to be followed and the extent to which the CSOs shall be applied in the circumstances of the proposed disposal.

22.3 The Contract Officer shall ensure compliance with any recycling, environmental protection,

data security and / or electrical supply requirements arising from any disposal. 23. Compilation of selected listsApproved List of Contractors 23.1 Where a Contract Officer, after consulting a Principal Officer, decides that a an select

Approved list List of approved Contractors shall be maintained, at least four weeks before the list is compiled or reviewed Public Notice (as a minimum in a trade newspaper or journal) inviting applications for inclusion on the list must be given. In addition, each Contractor already included on any relevant list shall be asked whether they wish to remain on it.

23.2 Approved Lists should be used where recurrent transactions of a similar type are likely but

where such transactions need to be priced individually and cannot easily be aggregated and priced in a single tendering exercise. Approved lists cannot be used where the EU Procurement Directives apply.

23.32 The criteria for admission to and suspension from a select listan Approved List shall be

based upon the Authority’s corporate policy and procedural guidance, be specified in writing by the Contract Officer and be approved by a Principal Officer.

23.43 The evaluation of the Contractors who wish to be considered shall be made in accordance

with the Authority’s corporate policy and procedural guidance and shall include a formal evaluation of at least the following:

(a) the financial standing of the Contractors by East Sussex County Council financial services personnel (or otherwise as directed by the Treasurer) based upon the submission of statements of accounts for the last two years as a minimum;

(b) their technical ability to perform the Contract including any externally accredited quality service marques of the Contractors; and

(c) compliance by the Contractors with environmental, health and safety, equality standards and ethical standards as determined by legislation and as approved by the Authority.

23.54 The select listApproved List shall include the names and addresses of all the Contractors

who meet the selection criteria and shall indicate the nature and value of Contracts for which each Contractor listed may be used.

23.65 Any Contractor may withdraw at any time from a select listan Approved List by giving written

notice to the Authority. 23.76 Each list must be re-advertised at least every three years. Any necessary amendments

including additions and deletions may be made in between where approved by the Contract Officer responsible for the list.


23.87 The Contract Officer responsible for a select listan Approved List, may after consulting a Principal Officer, discontinue the use of a select listthe Approved List if it appears that it no longer offers Best Value to the Authority in comparison with other procurement processes.


A P P E N D I X 1

W o r d s a n d P h r a s e s u s e d i n C S O s 1.1 “Approved Joint Purchasing Arrangement” has the meaning given in CSO 11

(Budgeting). 1.1 “Approved List” is a list drawn up for use under CSO 23 1.22 “Authority” (East Sussex Fire Authority) includes East Sussex Fire and Rescue Service. 1.33 "Best Value" means the duty of the Authority to make arrangements to secure

continuous improvement in the way in which its functions are exercised, having a regard to a combination of economy, efficiency and effectiveness.

1.4 “Chief Fire Officer and Chief Executive” includes his/her Deputy and any other

officer(s) or the holder(s) of any other posts authorised in writing by him/her to act on his/her behalf.

1.55 "Contract" means a binding agreement which is intended to be enforceable at law made

between two or more parties for purchasing Services, Supplies, and / or Works. 1.66 “Contractor” means any Person who may or has entered into a Contract with the

Authority under these CSOs. 1.77 “Contract Officer” means any Person responsible for procuring a Contract for the

Authority. 1.88 “Contracts and Insurance Manager” means the Person appointed to be responsible for

upholding the corporate procurement standards of the Authority in support of Principal Officers, by whatever title the postholder is known.

1.99 “Contracts Register” means the register kept under CSO 6 (Contracts Register).

1.1010 "Consortium " means two or more local authorities or public bodies (including any companies controlled by them) acting jointly for the purpose purchasing Services, Supplies, and / or Works.

1.1111 “Cost of a (the) Contract” means the estimated total value (net of value added tax) payable by the Authority to the Contractor over the term of the Contract, including allowable extensions. In the case of indefinite contract periods, the term of the Contract is assumed to be 4 years.

1.1212 ”Dynamic Purchasing System” means a completely electronic process for making

commonly used purchases, the characteristics of which, as generally available on the market, meet the requirements of the contracting authority, which is limited in duration and open throughout its validity to any economic operator which satisfies the selection criteria and has submitted an indicative tender that complies with the specification.

1.1313 ”Electronic Auction” means a repetitive process involving an electronic device for the


presentation of new prices, revised downwards, and/or of new values concerning certain elements of tenders, which occurs after an initial evaluation of the tenders, enabling them to be ranked using automated evaluation methods.

1.1414 "EU Procurement Directives" or “the Directives” means the Directives and guidance of the European Union in relation to public procurement and any national laws implementing them in the United Kingdom, all as amended and replaced from time to time.

1.1515 "Framework Agreement" means an agreement for a defined range of Services,

Supplies, and / or Works, the terms of which are agreed through an initial competitive tendering exercise, and under which the Contractor undertakes to enter into Contracts for requirements called off as and when required.

1.16 “Head of Department” means any Officer appointed to directly report to a Principal

Officer. 1.1616 "Joint Commissioning" means where the Authority jointly with one or more local

authorities or public bodies enters into a Contract. 1.1717 "Lowest Cost" in relation to a quotation or tender means the lowest price if payment is

to be made by the Authority and the highest price if payment is to be made to the Authority and, in either case, refers to a Quotation or Tender which conforms to the Authority’s tendering requirements.

1.1818 “Monitoring Officer” includes his/her Deputy and (subject to consultation with the Chief

Fire Officer and Chief Executive) any other officer(s) or the holder(s) of any other posts authorised in writing by him/her to act on his/her behalf.

1.1919 "Most Economically Advantageous Quotation / Tender" means the most

economically advantageous Quotation or Tender to the Authority (determined by pre-set criteria adopted by the Authority such as quality, price, technical merit, aesthetic and functional characteristics, environmental characteristics, running costs, cost effectiveness, after sales, technical assistance, delivery date and delivery period and period of completion) and refers to a Quotation or Tender which conforms to the Authority’s tendering requirements.

1.2020 “Partnership” means two or more local authorities or public bodies (including any

companies controlled by them) acting jointly to provide to each other Services, Supplies or Works.

1.2121 “Person” shall include a firm, partnership, company or public authority. 1.2222 “Principal Officer” means any Officer appointed as a Principal Officer of the Authority

and includes the Chief Fire Officer and Chief Executive, and the Deputy Chief Fire Officer, the Assistant Chief Fire Officer and Assistant Chief Officers.

1.2323 “Public Notice” means giving notice by any one or more of the following methods: (a) on

the Authority’s web-site, (b) in a local or national newspaper, (c) in a trade newspaper or journal, (d) in the Official Journal of the European Union


1.2424 “Quotation” means a formal written statement setting out the price and any other relevant matter offer to provide Services (including consultancy), Supplies and / or Works at a stated price based on terms and conditions agreed with the Contractor.

1.2525 “Relevant Member of the Authority” means the Chairman of the Authority (or the Vice

Chairman of the Authority if the Chairman is not available) or in relation to any Contract for which a Member of the Authority has been designated the lead Member, that Member.


1.26 “Regional Management Board” means the joint committee of fire and rescue authorities known as the South East Regional Management Board;

1.27 "Select List" (sometimes also known as an approved list) means a list of suitable

prospective Contractors approved for the provision of Services (including consultancy), Supplies and / or Works in accordance with the provisions of CSO 23.

1.2826 “Services” – a Contract for Services means a Contract having as its object the provision

of Services. 1.2927 “Supplies” (often referred to as goods and materials) – a Contract for Supplies means a

Contract having as its object the purchase, lease, rental or hire purchase, with or without option to buy, of products.

1.3028 "Tender" means a formal written offer to provide Services (including consultancy),

Supplies and / or Works, at a stated price based on the Authority’s terms and conditionsproposal submitted in response to an invitation to Tender.

1.3129 “Treasurer” includes his/her Deputy and (subject to consultation with the Chief Fire

Officer and Chief Executive) any other officer(s) or the holder(s) of any other posts authorised in writing by him/her to act on his/her behalf.

1.302 “Works” – a Contract for Works means a Contract involving building or civil engineering

activities whether in the form of a specific service or in the form of a series of services leading to the completion of a work that has an economic or technical function.


A P P E N D I X 2 Procedures for obtaining Quotations or Tenders To help Contract Officers in their Contract preparations, this Appendix contains some information about the tendering procedures recognised in the EU Procurement Directives and equivalent United Kingdom regulations (primarily the Public Contracts Regulations 2006). The Authority is most likely to use the restricted procedure, but occasionally the open procedure may be appropriate. The negotiated procedure and the competitive dialogue procedure are likely to be used very rarely and then only for major projects. The specialist procedures, particularly framework agreements, will be encountered increasingly where the Authority participates in Approved Joint Purchasing AgreementsFramework Agreements.

1. Open Procedure This allows any Contractor to submit a Quotation or Tender in response to Public Notice. It

does not enable the number of potential Contractors to be restricted. Any assessment of the suitability of Contractors has to be carried out as part of the Quotation / Tender evaluation process. For most Contracts, the Restricted Procedure is likely to be more appropriate.

2. Restricted Procedure This enables a limit to be placed on the number of Contractors who will be asked to submit a

Quotation or Tender. All those expressing interest in response to Public Notice are issued with a pre-qualification questionnaire. Invitations to submit Quotations or Tenders are issued only to those assessed as suitable after pre-qualification.

3. Negotiated Procedure Where the Cost of a Contract is above the relevant threshold under the EU Procurement

Directives, the power to negotiate a Contract with no or only limited competition is very closely controlled. Thus the negotiated procedure may be used in exceptional cases where the open or restricted procedures are not considered appropriate. The procedure might be used in cases where the requirement is difficult to fully specify, the requirement does not permit prior overall pricing, or in other special circumstances where Best Value is unlikely to be achieved by using the open or restricted procedures. If the Contract Officer considers that it might be appropriate to use the negotiated procedure, he will need to consult a Principal Officer as CSOs do not envisage that the Authority will use this procedure and it is likely that approval to do so will need to be sought from the Authority. The Principal Officer will need to ensure that the Chief Fire Officer and Chief Executive, the Treasurer and the Monitoring Officer are satisfied that the procedure is appropriate. If the negotiated procedure is used, it will usually be necessary for Public Notice to be given and a pre-qualification questionnaire issued to all those expressing interest. An invitation to negotiate is only issued to those successful after pre-qualification.


4. Competitive Dialogue Procedure Where the Cost of a Contract is above the relevant threshold under the EU Procurement

Directives, the competitive dialogue procedure may be considered in exceptional cases where the Authority wishes to award a particularly complex contract and the open or restricted procedures are not considered appropriate. It may be a suitable alternative to the negotiated procedure. The Authority may be aware of its broad needs but does not know in advance what is the best technical, legal, or financial solution for satisfying those needs. Competitive dialogue is a structured process of identifying one or more solutions to meet the Authority’s needs. It always involves a competitive tender, and the Most Economically Advantageous Tender award criteria must be used. If the Contract Officer considers that it might be appropriate to use the competitive dialogue procedure, he will need to consult a Principal Officer as CSOs do not envisage that the Authority will use this procedure and it is likely that approval to do so will need to be sought from the Authority. The Principal Officer will need to ensure that the Chief Fire Officer and Chief Executive, the Treasurer and the Monitoring Officer are satisfied that the procedure is appropriate. If the competitive dialogue procedure is used, Public Notice is required. A pre-qualification questionnaire is normally issued to all those expressing interest. An invitation to competitive dialogue is only issued to those successful after pre-qualification.

5. Specialist procedures The following specialist procedures are likely to be employed in some of the Approved Joint

Purchasing ArrangementsFramework Agreements. There may also be scope for Contract Officers to set them up under CSOs for the Authority alone, but before taking any steps to do so a Principal Officer would need to be consulted.

5.1 Framework Agreements In the terminology of the EU Procurement Directives, a framework agreement is an agreement

between one or more contracting authorities and one or more Contractors, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged. A framework agreement is likely to be suitable for repetitive purchases. It can be set up to identify one or more suppliers who will be able to meet the Authority’s needs and can be asked to do so in accordance with a call-off contract each time the Authority wishes to make a purchase. Framework agreements may be set up in conjunction with the open procedure, restricted procedure, negotiated procedure, or competitive dialogue procedure set out above.

5.2 Dynamic Purchasing System Dynamic purchasing systems are intended to address commonly used purchases. They are a

kind of electronic framework agreement, which bidders can join at any point during its lifetime. The open procedure must be used to establish the system up to the award of contracts. The system must be wholly electronic. Public notice is required.

5.3 Electronic Auctions Electronic auctions may be used in conjunction with the open, restricted, negotiated, or

competitive dialogue procedures, or the reopening of competition within a framework, or on the opening for competition of contracts to be awarded through a dynamic purchasing system.

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