Staining above a fireplace opening is a record of where combustion products have been going. If the flue were drafting properly, smoke and heat would rise into the throat and up the chimney, and the wall above the opening would stay clean. Brown staining and scorched paint mean the opposite has been happening repeatedly — smoke rolling out of the opening and up the face of the wall. The causes are worth knowing because they are all correctable: a closed or restricted damper, a blocked or undersized flue, a firebox opening too large for the flue area, an inadequate smoke shelf, or a house so tight or so depressurised by exhaust fans that the chimney cannot establish draft. Since spillage means combustion products entering living space, the inspector reports it as a safety concern and recommends the fireplace not be used until a chimney professional evaluates it.