The Overview and Audit Committee of the Buckinghamshire and Milton Keynes Fire Authority convened on Wednesday, 11 February 2026, to review the Auditor's Annual and Year-End Reports for the period ending 31 March 2025. The committee was also scheduled to consider the Letter of Management Representation and the Statement of Accounts for the same financial year.

Auditor's Annual and Year-End Reports – Year Ended 31 March 2025

The committee was scheduled to consider the Auditor's Annual Report and Year-End Report for the financial year ending 31 March 2025. These reports, prepared by KPMG, summarise the findings and key issues arising from the audit of the Buckinghamshire and Milton Keynes Fire Authority's (the Authority) financial statements. The reports are required to be published alongside the Authority's annual report and accounts.

The Auditor's Annual Report indicated that no significant weaknesses were identified in the Authority's arrangements for securing economy, efficiency, and effectiveness in its use of resources. However, the report noted that the audit work in relation to the financial statements and other information was not yet complete at the time of publication. The report also stated that procedures for the Whole of Government Accounts were ongoing and that the National Audit Office had not yet confirmed their completion.

The report highlighted that the Authority had been stood down from enhanced oversight by HM Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS) due to improvements made following an adverse inspection outcome in a prior period. It also noted the Authority's success in increasing its whole-time firefighter headcount and its ability to invest in fleet without resorting to borrowing. However, the report also mentioned concerns regarding the deteriorating condition of the High Wycombe fire station and the potential impact of national funding reviews on the Authority's financial sustainability.

The audit findings also touched upon the statutory backstop measures introduced to address the local government financial reporting and audit backlog. This included the issuance of disclaimers of opinion by the predecessor auditor for the financial year ending 2022/23 and by KPMG for 2023/24, due to the inability to complete necessary audit procedures before the backstop date. Work was ongoing to rebuild assurance over these disclaimed periods.

Key audit risks identified included management override of controls and the valuation of post-retirement benefit obligations for the Firefighters Pension Scheme. The auditors reported no findings in relation to management override of controls, although a formal IT process for segregation of duties over journal postings and authorisation was noted as not being in place. Regarding the Firefighters Pension Scheme valuation, the auditors assessed the assumptions used by the actuary to be balanced and within a reasonable range, with no issues identified in relation to the significant assumptions used.

The report also detailed performance improvement observations, including recommendations for the High Wycombe fire station and enhancements to risk management processes. Follow-up on prior period recommendations indicated that the review of bank reconciliations had been implemented.

The audit fees for the year were detailed, including the scale fee set by Public Sector Audit Appointments Limited (PSAA) and variations for build-back assurance work. KPMG confirmed their independence and objectivity as auditors.

The report also included a summary of uncorrected and corrected audit misstatements. An uncorrected misstatement related to a provision for a lease break penalty where certainty of the penalty being triggered was lacking. Corrected misstatements included adjustments to IFRS 16 calculations and disclosures.

The report also referenced the Financial Reporting Council's (FRC) areas of focus for corporate reporting, including impairment of assets, cash flow statements, climate-related disclosures, financial instruments, revenue recognition, and presentation.

Letter of Management Representation 2024/25

The committee was asked to approve the Letter of Management Representation for signature by the Chief Finance Officer and the Chairman of the Overview and Audit Committee. This letter is a formal statement provided by the Authority's management to the auditors, KPMG, confirming their responsibilities for the preparation of the financial statements and providing assurances on various aspects of the financial reporting process.

The letter confirms that the Authority has fulfilled its responsibilities for preparing financial statements that give a true and fair view and comply with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2024/25. It also confirms that the financial statements have been prepared on a going concern basis and that all relevant information has been provided to the auditors. The letter addresses fraud, non-compliance with laws and regulations, litigation and claims, related parties, and the Authority's ability to continue as a going concern. It also confirms that actuarial assumptions underlying defined benefit obligations are consistent with the Authority's knowledge of the business.

Statement of Accounts – Year Ended 31 March 2025

The committee was asked to consider and approve the Statement of Accounts for the financial year ended 31 March 2025. This document provides a comprehensive overview of the Authority's financial performance and position. The Accounts and Audit (Amendment) Regulations 2024 require these accounts to be approved no later than 27 February 2026.

The Statement of Accounts includes the Narrative Statement, which provides an introduction to the Authority, key facts, financial performance in 2024/25, and corporate risks. It details the Authority's Public Safety Plan 2020-2025 and outlines the senior management structure.

The financial performance section details the budget setting process for 2024/25, including Council Tax changes and adjustments to government grants. It also outlines the capital programme and provides a breakdown of revenue and capital outturn for the year. The Authority reported an underspend of £0.954m, primarily due to lower employee-related costs and higher-than-expected investment income.

The Statement of Accounts also includes the Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement, and the Balance Sheet, along with detailed notes to the core financial statements. These notes provide further information on service expenditure and funding, officers' remuneration, provisions, right-of-use assets, capital financing, audit fees, revenue grants, related parties, funding, non-current assets, investment property, intangible assets, short-term investments, debtors, cash and cash equivalents, short-term borrowing and creditors, long-term borrowing, grants received in advance, lease liabilities, usable and unusable reserves, donated assets, contingent assets and liabilities, pension schemes, financial instruments, events after the balance sheet date, and cash flow statement notes.

A separate Firefighters' Pension Fund Account and notes to this account were also included, detailing the income and spending of the fund and its net assets. A glossary of terms was provided to assist understanding of the financial statements.

The committee was asked to consider any issues raised during the audit before approving the accounts for signing by the Chief Finance Officer and Chairman of the Overview and Audit Committee.