Agenda item

Report of the Head of Finance (Treasurer) (RC/24/10) attached.

The Committee considered a report of the Treasurer (RC/24/10) on the draft financial outturn position for 2023-24 against agreed financial targets.

In particular, the report outlined the draft outturn spending position against the 2023-24 revenue budget with explanations of the major variations. It was indicated that gross spending was £4.782m below budget (5.8% of the total budget). Net spending (before transfers to earmarked reserves of £4.782m noted in this report) was £80.631m.

There had been some significant movements against the original budget (set in February 2023) as a result of the organisational focus on the need to save money to enable the Service to invest and modernise.  This had been achieved largely as a result of vacancies held in both Wholetime and Professional and Technical staffing but the increased return on investment achieved in 2023-24 had also contributed significantly to this very positive outcome.

In relation to capital, the Authority had initially set its capital programme 2023-24 at £14m at its budget meeting on 15 February 2023 (Minute DSFRA/22(b) refers). This had subsequently been reduced to £13.086m in year as a result of timing differences in spending from the previous year and revisions to the capital plan, albeit that this did not represent any increase to the previously agreed borrowing limit. Capital spending of £5.966m was reported against the final capital programme, resulting from:

·       an unspent programme of £7.129m, of which £7.039m related to timing differences to be carried forward to 2024-25; and

£0.081m savings.

The Authority’s reserves position as at 31 March 2024 was £28.809m (subject to approval of the recommendations for proposed transfers as set out in the report).

The report indicated that none of the prudential indicators associated with the 2023-24 budget had been breached albeit that the outturn as set out in the report was subject to external audit of the Authority’s accounts.

RESOLVED

(a).          That the Authority be recommended to approve that, of the   provisional underspend against the 2023-24 revenue budget, £2.356m be transferred to the Revenue Contribution to Capital reserve and an element transferred to the General Reserve to ensure it is within 5% of the revenue budget for 2023-24;

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

                                        (i).        The draft position in respect of the 2023-24 Revenue and Capital Outturn position, as indicated in this report.

                                       (ii).        That the net underspend figure of £2.612m is allocated as follows;

A.    There is a requirement to transfer £0.100m to the Grants Unapplied Reserve as required under International Financial Reporting Standards (IFRS) relating to a grant received during the financial year but not utilised per 4.1.b.

B.    The balance be allocated for the Fire Cover review £0.040, £1.125m be used to fund the Control Room system change and £1.0m be used to support the Change & Improvement Programme per 4.1.c.

C.  The £2.8m added to the budget to fund the pay award for 2023-24, as agreed by the Fire Authority on 15 February 2023, is returned to the Capital Reserve per 4.1.d.

(c).          That a transfer of £0.348m is approved to increase the balance of the general fund balance reserve to ensure it is 5% of the revenue budget for 2023-24 as per paragraph 6.1.

NB.  Minute RC/23/25 above and RC/23/27 below also refer.