Prior to the start of the meeting, information regarding general housekeeping was provided by the Chair to all in attendance.

The Chair confirmed to all present that the proceedings of the meeting would be filmed and requested that any members of the public present who objected to being filmed, make themselves known.

No members of the public voiced any objection therefore the meeting was declared open and recording commenced.

Members are requested to consider the identification of:

a)    Declarations of interest by individual Members in relation to any item of business on the Agenda

b)    Any additional items of business which the Chair has determined should be considered as matters of urgency; and

c)    Items of business which may require the exclusion of the press and public during consideration thereof because of the possibility of the disclosure of exempt information:

·         Agenda Item 6, “CAD-MIS upgrade plan 2019” contains EXEMPT information by virtue of Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972. 

Members considered the identification of declarations of interest, any urgent additional items, and any business requiring the exclusion of the press and public.

Members Resolved that:

a)  no declarations of interest were made by individual Members in relation to any item of business on the Agenda

b)  no additional items of business to be considered as matters of urgency were determined by the Chair; and

c)  no items of business required the exclusion of the press and public during consideration thereof because of the possibility of the disclosure of exempt information.

The Minutes of the previous meeting of the Policy and Resources Committee, held on 28^th March 2019, are submitted for approval as a correct record and for signature by the Chair.

The Minutes of the previous meeting of the Policy and Resources Committee, held on 28^th March 2019, were approved as a correct record and signed accordingly by the Chair.

To consider report CFO/043/19 of the Director of Finance concerning the Authority’s revised 2018/19 Annual Governance Statement following comments received from external audit (Grant Thornton).

Members considered Report CFO/043/19 of the Director of Finance, concerning the Authority’s revised 2018/19 Annual Governance Statement following comments received from external audit (Grant Thornton). This statement fulfils the Authority’s statutory requirement to prepare a statement of internal control in accordance with proper practice, and in doing so presents an annual review of the effectiveness of the current arrangements.

Members were informed that the Authority is required to prepare an annual statement reviewing the Authority’s governance and systems of internal control arrangements that were in operation during the year; and that the Annual Governance Statement meets that requirement.

Members were advised that the Authority’s Audit Committee approved the 2018/19 Annual Governance Statement on 6^th June 2019, which is attached at Appendix A. However, the Authority’s external auditor – Grant Thornton, have requested the inclusion of a couple of paragraphs to confirm the view of those signing off the Statement, that:

·         The Governance and Internal Control arrangements were fit for purpose and provided acceptable overall assurance; and

·         The arrangements have been operating throughout 2018/19 and had provided an effective framework for identifying and dealing with any governance issues in the year.

Members were informed that the revised Annual Governance Statement is attached at Appendix B, which now includes the required statements requested by Grant Thornton.

Members Resolved that:

The revised 2018/2019 Annual Governance Statement, be approved.

To consider report CFO/037/19 of the Chief Finance Officer concerning the Authority’s year-end financial position for 2018/19.

Members considered Report CFO/037/19 of the Director of Finance, concerning the Authority’s year-end financial position for 2018/19.

Members were informed that this report provides a summary of the outturn position in relation to the approved 2018/19 Revenue and Capital budget.

Members were provided with an overview of the report, which highlighted some background information on the 2018/19 budget plan and budget updates, approved throughout the year.

It was highlighted to Members that the revenue outturn position was a £0.826m net underspend, which as per the strategy approved at the 2019/20 Budget Authority meeting, will be utilised to fund an increase in debt payments, the minimum revenue provision, in order to free-up future years budget to increase spend on frontline services. Therefore, Members were informed that after increasing the minimum revenue provision by £0.826m, the overall revenue outturn position is consistent with the approved budget.

Members were advised that the report also provides an explanation on the major revenue variances for 2018/19, with a detailed analysis of the revenue outturn position provided at Appendix A.

Members were also informed that the report summarises the opening and closing position on earmarked reserves; and it was highlighted that the total committed earmarked reserves, have reduced by £2.651m, or 10%, in the year, with the general revenue reserve remaining unchanged at £2m.

The capital outturn position was also outlined to Members. They were informed that £3.838m of planned spend for 2018/19, has now been re-phased into 2019/20, with an explanation for the re-phasing provided within the report.

Questions were raised by Members, regarding the purpose of the Bellwin reserve; and the PFI reserve.

With regards to the Bellwin reserve, Members were informed that this is an amount which is set aside to support a major incident, such as large scale flooding, with any additional financial support, being provided by the Government.

In terms of the PFI reserve, Members were advised that the PFI Scheme runs up to 2038, but that the grant was paid upfront at the start of the scheme. Therefore, there will be an affordability gap for every year of the scheme, with the greatest gap being towards the end of the scheme. As such, the PFI reserve was created as a “smoothing reserve”, with funds being drawn down from the reserve each year, to fund the affordability gap. 

Members Resolved that:

a)    the actual financial performance against the approved budget, after taking into account year-end reserve adjustments was a net revenue underspend of £0.826m, be noted.

b)    this underspend, be noted as having been used to increase the actual 2018/19 minimum revenue provision (debt repayment) as per our plans with the aim of freeing up future debt servicing budget to allow reinvestment back into front line services, (this strategy was approved at the 2019/20 Budget Authority meeting).

To consider report CFO/043/19 of the Chief Finance Officer concerning the audited 2018/19 Statement of Accounts.

Members considered Report CFO/043/19 of the Director of Finance, concerning the audited 2018/19 Statement of Accounts.

Members were informed that the Authority is required to prepare a set of financial statements in a format that is set out under the relevant Accounting Codes and Standards. They were advised that the Statement of Accounts attached to the report as Appendix A, presents the required Authority core financial statements for 2018/19, having regard to the various codes and regulations.

Members were advised that the Authority has a statutory duty to approve and sign-off for publication, the Statement of Accounts for the previous year, before the 31^st July of the following year. They were informed that this report, presents the 2018/19 Statement of Accounts for Members consideration and requests that Members approve the statement and sign it off for publication.

Members were also informed that they would normally receive a report from the Authority’s Auditor – Grant Thornton, outlining their findings from their audit work on the financial statements and value for money review, however Grant Thornton feel that a full property valuation must be carried out to confirm the figures in the financial statements, before they can finalise their opinion.

Members were advised that after speaking to colleagues in other fire and rescue authorities and local authorities, it would appear that a number are facing similar challenges from their auditors this year, as auditors have sought greater assurance around figures within the financial statements.

Members were advised that any amendment to property values as a result of the valuation exercise, will have no impact on the outturn to budget position reported in the previous report.

Some background information to the four core financial statements; and a summary of the 2018/19 key movements and significant changes to the previous year’s figures, where also highlighted to Members.

Members were advised that the Codes and Regulations require a number of notional accounting entries and adjustments that are significant in value, to be included in the Statement of Accounts, such as a depreciation charge. As they are notional in nature, they do not form part of the costs that must be funded by the Authority’s approved general fund budget. It was highlighted to Members that the 2018/19 neutral general fund outturn position, reported in the previous outturn report, becomes a £79.6m adverse variance under the Statement of Accounts code and regulations.

It was clarified to Members that the report is requesting that they note the draft Letter of Representation, attached to the report as Appendix B, which simply states that the Director of Finance and the Chair of the Committee, are not aware of anything that would alter the information contained in the Statement of Accounts. Once Grant Thornton have completed their audit and issued an opinion, their audit review report, a final statement of accounts; and a Letter of Representation, will come back to Members for sign-off.

Questions were raised by Members around the concerns of the auditors in relation to the property valuation;  ...  view the full minutes text for item 5.

To consider report CFO/026/19 of the Chief Fire Officer concerning the recommendations of this report to ensure the maintenance and improvement  of vital ‘999’ emergency response infrastructure. 

This report contains EXEMPT information by virtue of Paragraph 3, of part 1 of Schedule 12A of the Local Government Act 1972. 

This minute contains EXEMPT information by the virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.