Agenda and minutes

of the previous meeting held on    attached.

RESOLVED that the public Minutes of the budget meeting held on 8 February 2022 be signed as a correct record.

Report of the Director of Finance, People & Estates (RC/22/8) attached.

The Committee considered a report of the Director of Finance, People & Estates (RC/22/8) on the draft financial outturn position for 2021-22 against agreed financial targets, together with explanations of major variations.

It was indicated that spending would be £1.379m over budget, net of transfers to earmarked reserves as noted in the report, equivalent to 1.86% of the total budget.

There had been some significant challenges during the 2021-22 financial year, most notably the nationally agreed pay awards (1.5% to firefighters and 1.75% to support staff), the cost of which to the Authority was in the region of £0.800m and which were previously not budgeted for in light of the  Government’s expectation that there would be a public sector pay freeze in that year.

The majority of the balance of the overspend related to an expedited implementation of the new Pay for Availability pay system introduced for on-call firefighters and aimed at securing Service improvements.

The figures as presented were subject to external audit of the financial statements for the year.

RESOLVED

(a).  that the Authority be recommended to approve that the provisional overspend against the 2021-22 revenue budget of £1.379m be met by a transfer from the General Reserve;

(b).  That, subject to (a) above, the following be noted:

(i).    The draft position in respect of the 2021-22 Revenue and Capital Outturn position, as indicated in report RC/22/8;

(ii).   That the net overspend figure of £1.379m was after the removal of the Pensionable Allowances Provision (£0.409), which was deemed no longer required, together with a transfer of £2.013m to the Grants Unapplied Reserve as required under International Financial Reporting Standards (IFRS) relating to grants received during the financial year but not utilised as per Appendix C of the report.

Report of the Director of Finance, People & Estates (Treasurer) (RC/22/9) attached.

The Committee considered a report of the Director of Finance, People & Estates (RC/22/9) on a proposed revision to the Capital Programme and associated Prudential Indicators 2022-23 to 2024-25, as approved by the Authority at its budget meeting on 19 February 2022 (Minute DSFRA/21/39(b) refers).

The proposed revision would allow for an amount of money not spent in 2021-22 to be carried forward to 2022-23. This would not require any adjustments to the Authority’s external borrowing requirement but it was noted that, while the Authority had not borrowed any external funding in the last ten years, the Capital Programme would, unless otherwise adjusted, require further borrowing from 2024-25.

RESOLVEDthat the Authority be recommended to approve the revised capital programme and associated prudential indicators for 2022-23 to 2024-25, as set out report RC/22/9 and summarised in the tables at Appendices A and B respectively to these Minutes.

Report of the Director of Finance, People & Estates (Treasurer) (RC/22/10) attached.

(Adam Burleton [Link Group] in attendance for this item).

The Committee received for information a report of the Director of Finance, People & Estates (RC/22/10) on the performance of the Authority’s borrowing and investment activities during the 2021-22 financial year as compared to the treasury management strategy adopted. Such reporting was required by the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management.

The report highlighted that no prudential indicators had been breached and that a prudent approach had been taken in relation to investment decisions, with priority being given to liquidity and security over yield.

Despite uncertainties in the aftermath of the 2008 financial crises and unusual Brexit conditions, the Authority returns were above the benchmark returns for short-term investments (the London Inter-Bank Bid Rate three-month rate).

RECOMMENDATION that, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public (with the exception of representatives of Red One Ltd.) be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined Paragraph 3 of Part 1 of Schedule 12A (as amended) to the Act, namely information relating to the financial and business affairs of any particular person – including the authority holding that information.

RESOLVEDthat, in accordance with Section 100A(4) of the Local Government Act 1972, the press and public (with the exception of representatives of Red One Ltd.) be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined Paragraph 3 of Part 1 of Schedule 12A (as amended) to the Act, namely information relating to the financial and business affairs of any particular person – including the authority holding that information.

Attached.

(An item taken in accordance with Section 100A(4) of the Local Government Act 1972 during which the press and public (with the exception of representatives from Red One Ltd.) were excluded from the meeting).

RESOLVED that the Restricted Minutes of the budget meeting held on 8 February 2022 be signed as a correct record.

Report RC/22/11 attached.

(An item taken in accordance with Section 100A(4) of the Local Government Act 1972 during which the press and public (with the exception of representatives from Red One Ltd.) were excluded from the meeting).

The Committee received for information a report of the Chief Executive and the Finance Director of Red One Ltd. on the financial performance of the company during the 2021-22 financial year.