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 12, Appendix A “Occupational Health Medical Services Contract” 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 that may require the exclusion of the press and public.

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 Chief Fire Officer advised Members that the third and final tranche of the HMICFRS Inspections had now concluded, with all 45 FRS’s now having been inspected. Members were informed that although a number of services, particularly those who participated in the pilot, fared well, Merseyside were the only FRS to achieve “outstanding” in 2 areas.

With regards to the State of the Nation’s Fire & Rescue Services Report, Members were informed that this was due to have been released, however with the General Election, this has now been put back; and is expected to be circulated in January.

Members commented that this is good news for MFRA; and that the Government should now be encouraged to move to the next stage, regarding the sharing of best practice and mentoring, to ensure that all FRS’s can be brought up to the same level.

Members also commented that the outcome of the inspections highlight that the position of MFRA around maintaining wholetime firefighters, is paying dividends.

Discussion took place around publicising the outcome and highlighting MFRA’s role in National Resilience. Members were advised that the focus at the moment is on the Tranche 3 report. However, the state of fire report is likely to give specific recognition to MFRA when it is issued; and as such, Members were advised that it would be more appropriate to wait until that report is issued, to publicise the outcome for MFRA.

A question was raised by Members as to the extent to which the inspections have been a benchmarking exercise. Members were advised that FRS’s have not been formally inspected for a number of years; and as such, the more robust inspection regime, will enable benchmarking. Members were advised that discussion has taken place around the next round of inspections, which are likely to follow the same format; and it was noted that this will enable direct comparison and benchmarking.

Members were informed that there will be some changes however, such as services may move tranches; and for MFRA, the Service Liaison Officer will change. However for MFRA, it will very much be normal business, with the Inspectorate being encouraged to come and see what we do.

Members were also informed that we will be benchmarking against ourselves; and that in the next round of inspections, we will hopefully have moved on with improvements observed. 

Discussion also took place around the potential inclusion of corporate governance in future inspections; and Members commented that  ...  view the full minutes text for item 1.

The Minutes of the previous meeting of the Policy and Resources Committee, held on 25^th July 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 25^th July 2019, were approved as a correct record and signed accordingly by the Chair.

The Exempt Minutes of the previous meeting of the Policy and Resources Committee, held on 25^th July 2019, are submitted for approval as a correct record and for signature by the Chair.

The Part 2 – EXEMPT Minutes of the previous meeting of the Policy & Resources Committee held on 25^th July 2019, were approved as a correct record and signed accordingly by the Chair.

To consider the Annual Audit Letter produced by the Authority’s External Auditors – Grant Thornton, concerning the key findings arising from the work carried out at Merseyside Fire & Rescue Authority for the year ended 31^st March 2019.

This report will be presented by a representative of the Authority’s External Auditors – Grant Thornton.

Michael Green was in attendance, representing the Authority’s external auditors – Grant Thornton; and presenting their Audit Findings Report for 2018/19.

Michael introduced himself and informed Members that he was a Director with Grant Thornton; and had recently been appointed as the Engagement Lead for MFRA.

Members were informed that the process was now substantially complete, with only some minor administrative work required; and that Grant Thornton are pleased to report that an unqualified audit statement has been issued.

Members were advised that the presentation of the report is much later than usual this year, due to a number of reasons. They were advised that there have been a number of additional areas of work required, for example around Pensions as a result of the McCloud case; and an issue around the valuation of land and buildings, which has led to a full re-evaluation completed in September 2019, which resulted in a material adjustment to the statement.

Members were also advised that there have been a number of other amendments made, however none which impact on the general fund, with the majority being balance sheet movements.

Members were taken through the report, with the key areas highlighted.

The areas of significant risk were highlighted to Members, which include improper revenue recognition; and management override of controls. No issues were found with either of these risks.

With regards to the risk around the valuation of land and buildings, Members were advised that there has been increasing scrutiny from regulators. They were informed that it was identified at an early stage that not all of the Authority’s asset base had been valued since 2015, which could result in a material misstatement. As such, Members were advised that Officers commissioned a full re-valuation, which resulted in valuation adjustments of £17m within the financial statements; and that no further issues were identified.

In relation to the audit risk around valuation of pension fund liability, Members were informed that this is the largest figure on the balance sheet; and represents a significant estimate. Members were informed that as a result of the impact of the McCloud transitional protection pensions ruling and the current legal position, the Authority’s gross pension liability has increased by £46m.

A further significant audit risk highlighted to Members, was around accounting for PFI. Members were advised that the draft financial statements did not include the required disclosure of the fair value of the PFI liability, however this has subsequently been calculated and disclosed within the revised financial statements. Members were advised that no other issues were identified.

With regards to other matters identified, Members were informed that there had been 3 adjustments. One was identified by officers during the preparation of the financial statements, regarding an error in the IAS 19 pension valuation provided to the Authority by the Local Government Pension Fund actuary.

Members were informed that the other two relate to pensions, with one being in relation to a reclassification issue around the Firefighters Pension Fund account; and the  ...  view the full minutes text for item 4.

To consider Report CFO/061/19 of the Treasurer, concerning the audited 2018/19 Statement of Accounts and letter of representation.

Members considered Report CFO/061/19 of the Treasurer, concerning the audited 2018/19 Statement of Accounts and letter of representation.

Members were informed that the Draft Statement of Accounts were presented to the Policy & Resources Committee in July, were it was resolved that:

·         The unaudited Statement of Accounts be approved and authorised for issue.

·         The audit opinion will follow once the updated asset valuation has been completed and shared with the external auditor.

·         The Draft Letter of Representation in relation to the audited 2018/19 accounts, be noted.

·         Once audit have finalised their work, it be noted that an audited Statement of Accounts and Letter of Representation, will come back to Members for approval.

Members were therefore advised that the purpose of this report, is to present the audited 2018/19 Statement of Accounts and Letter of Representation to Members for approval.

Members were informed that the previous agenda item, highlighted the findings of Grant Thornton’s audit and the adjustments required to the financial statements. Members were advised that Officers had taken into account most of these adjustments in the draft financial statements presented to Members in July, with the only significant adjustment since then, being the increase in property valuations. They were advised that all of the required adjustments have now been included within the financial statements; and Grant Thornton have received the required assurance they needed to complete their audit work.

Members were advised that although the technical changes around Pensions and Property Valuations are significant in value, they do not impact on the general fund position, as they are all reversed out via contra entries within the statements. It was therefore highlighted to Members that it is important to note that these changes have not altered the 2018/19 revenue outturn position reported to Members on 25^th July 2019.

Members Resolved that:

a)    The audited Statement of Accounts 2018/19, attached as Appendix A, be approved.

b)    The Letter of Representation in relation to the audited 2018/19 accounts, attached as Appendix B, be approved.

To consider Report CFO/056/19 of the Treasurer, concerning a review of the financial position, revenue and capital, for the Authority for 2019/20.

The Authority receives regular comprehensive financial reviews during the year, which provide a full health check on the Authority’s finances. This report covers the period April to September 2019.

Members considered Report CFO/056/19 of the Treasurer, concerning a review of the financial position, revenue and capital, for the Authority for 2019/20.The Authority receives regular comprehensive financial reviews during the year, which provide a full health check on the Authority’s finances. This report covers the period April to September 2019.

Members were advised that the purpose of the report is to provide Members with assurance that the approved budget remains robust and that the capital forecast of expenditure can be contained within the available resources.

Members were informed that the report can be split into 4 areas: Revenue, Capital, Reserves; and Treasury Management.

With regards to the revenue position, Members were advised that the net budget requirement of £60.282m, remains consistent with the original budget.

They were informed that Paragraph 14 of the report, summarises the latest forecast revenue position; and after reviewing income and expenditure, Officers have identified the following savings:

·         £250k savings off the firefighter employee budget, as a result of retirement numbers being slightly ahead of the expected forecast.

·         £200k savings off the non-firefighter employee budget, as a result of staff vacancies arising from staff turnover in the year.

·         £103k savings off the Local Government Pension Scheme (LGPS) pension budget, as a result of an advanced payment discount from paying 3 years of the outstanding deficit upfront.

·         £100k savings off the non-employee budget, identified on the supplies and services budget, as a result of the savings on professional fees.

Members were advised that as a result of the one-off savings, the report has identified a total saving of £653k; which it is proposed to utilise, to fund an increase in the minimum revenue position, in order to free up future debt servicing revenue budget.

In relation to capital, Members were informed that the capital programme has been updated for £718k scheme additions, which are summarised at paragraph 18 of the report.

Members were advised that these include:

·         £470k increase in St. Helens Fire Station build costs, in order to future proof the station.

·         £170k increase in fire appliance costs, due to the expectation that the unit price of fire appliances will increase in the future, requiring additional funding in order to maintain the capital programme of purchasing 12 fire appliances over the next 5 years.

·         £78k increase in scheme funded by revenue, which include energy conservation and ICT.

Members were advised that following the successful sale of Upton and West Kirby Fire Stations, the actual level of receipts to that assumed, has resulted in an additional £1.750m, which will be used to reduce the level of borrowing.

They were also informed that the report also includes a small amount of re-phasing having a net impact in this year’s budget of £37.8k.

With regards to reserves, Members were informed that there are two reasons for changes in the reserves in Quarter 2. One is a result of the movement on reserves within the period; and the other is as a result of re-alignment of reserves by the CFO  ...  view the full minutes text for item 6.

To consider Report CFO/057/19 of the Treasurer, concerning the requirements of the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Codes requires the Authority to review its Treasury Management activities during the year to ensure they are consistent with its approved Prudential Indicators. This report meets that requirement and outlines the Treasury Management activities and performance for the first half of the financial year 2019/20.

Members considered Report CFO/057/19 of the Treasurer, concerning the requirements of the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Codes requires the Authority to review its Treasury Management activities during the year to ensure they are consistent with its approved Prudential Indicators. This report meets that requirement and outlines the Treasury Management activities and performance for the first half of the financial year 2019/20.

Members were informed that the report provides a summary on the key points of performance so far, which include:

·         No new borrowing.

·         Debt of £265k has been repaid with no further debt due to be repaid this year.

·         The Authority had investments of £43.8m.

·         The Bank of England base rate remained at 0.75%.

·         PWLB rates fell during the first half of the year by 0.57%, however on the 9^th October 2019, the cost of new loans increased by 1%.

Members were informed that Treasury Management activity for 2019/20, has been carried out in compliance with the relevant codes and statutes; and within the borrowing and treasury management limits approved by the Authority, as part of the budget setting process in February 2019.

Questions were raised by Members regarding the impact that the change in PWLB rates has had on the Treasury Management strategy. Members were informed that Officers will monitor market conditions and consider when the most appropriate time will be for borrowing.

A further question was raised by regarding investing with other local authorities and whether this is something we have done previously. It was confirmed to Members that it is something that we have done previously and something which is contained within the Treasury Management Strategy.

Members Resolved that:

The content of the report, be noted.

To consider report CFO/063/19 informing the Authority of the outcomes and success of Bonfire period 2019 and the ongoing challenge of deliberate secondary fires.

Appendix A will be presented by Group Manager Ben Ryder at the start of this report.

Members considered Report CFO/063/19 of the Chief Fire Officer, concerning the outcomes of the 2019 Bonfire Period.

Members were provided with a presentation in support of this report, by Group Manager Ben Ryder, which highlighted the 2019 Bonfire Period outcomes and performance; and how those outcomes were achieved by staff.

Members were provided with an overview of the Arson Reduction Strategy 2017-20, devised due to the prevalence of arson, high deprivation; and high levels of serious and organised crime. Members were informed that a focus of the Strategy is around working with Merseyside Police and other partners; and that during the Bonfire Period, MFRS don’t do anything different, we simply increase our level of activity.

The presentation highlighted to Members that during the 2019 Bonfire Period, there was a 33.61% reduction in the number of ASB fires.

They were advised that there was 7 violence at work incidents during the period, which represents a reduction on the previous year, although a number of those incidents involved significant damage.

Members were informed that there was 47.5 tonnes of bonfire material removed across Merseyside over the period; and a total of 105 target hardening visits undertaken to support some of the most vulnerable individuals within our communities.

With regards to firework incidents, Members were informed that there was a total of 16 reported, however the severity of some of those incidents was high, resulting in life changing injuries. Members were advised that this issue will be considered further for next year.

The presentation went on to provide Members with some contextual figures regarding deliberate secondary fires during Bonfire periods, over the past 10 years. Members were advised that with the exception of 2013, 2019 has seen the lowest number of such incidents, with a total of 243 recorded. They were advised that the low number of incidents recording during 2013, was a result of the conscious decision to stack calls, due to the reduction in the number of appliances during that year.

With regards to how the performance was achieved, Member were informed that a funded social media campaign was ran over this year’s Bonfire Period, which reached approximately 700,000 people. It was noted that this level of contact could not be achieved through staff on the ground alone; and that the use of social media to promote safety messages, will be a useful form of engagement moving forward.

The presentation provided Members with an overview of performance for each local authority area.

With regards to the Knowsley District, Members were advised that there was a good reduction in incidents during the Bonfire Period, on the previous year. They were informed that the Knowsley Street Intervention Team was deployed into high demand areas; and a new Crime and Communities Team was established within the District, with significant funding provided to tackle anti-social behaviour (ASB).

Members were also advised that although MFRS do not have certain powers to have an impact on ASB, through working closely with partners who do have the necessary  ...  view the full minutes text for item 8.

To consider Report CFO/058/19 of the Chief Fire Officer, concerning the Authority’s Statement of Assurance 2018/19, for publication on the Authority’s website.

Members considered Report CFO/058/19 of the Chief Fire Officer, concerning the Authority’s Statement of Assurance 2018/19, for publication on the Authority’s website.

Members were informed that the Authority’s Statement of Assurance is a backwards looking document covering the financial year 2018/19; and that the Authority is required to produce the document each year.

Members Resolved that:

a)    The information contained within the report, be noted.

b)    The Authority’s Draft Statement of Assurance 2018/19, be approved.

c)    The Statement of Assurance 2018/19, be signed by the Chair of Merseyside Fire and Rescue Authority and the Chief Fire Officer.

To consider Report CFO/059/19 of the Chief Fire Officer, concerning the current risks within the Corporate Risk Register, the status of the risks and associated control measures, including any updates for the period April to September 2019.

Members considered Report CFO/059/19 of the Chief Fire Officer, concerning the current risks within the Corporate Risk Register, the status of the risks and associated control measures, including any updates for the period April to September 2019.

Members’ attention was drawn to a new risk that has been included within the Corporate Risk Register, around the impact of the McCloud judgement.

An exert from a recent Fire & Rescue Services National Employers Circular, concerning the transitional protections pensions claims interim order on remedy, was read out to Members.

It was highlighted that in December 2018, the Court of Appeal found that the transitional protections unlawfully discriminated on age and the case therefore returned to the Employment Tribunal for it to determine remedy.

Members were advised that following a preliminary hearing, the Employment Tribunal have made an interim order; and it is anticipated that the final determination on that remedy issue, should be resolved around mid-July 2020.

Members were advised that Home Office are being pushed to issue guidance for FRS’s around implementation, specifically around dealing with ill health retirements, backdated employee contribution; and taper arrangements.

Members were informed that this issue has been brought to their attention, as it has been raised previously in relation to the potential financial challenge as a result of the expected judgement. They were also informed that as a result of the transition arrangements, there will be an impact on the Authority’s workforce planning assumptions. As such, the issue has been included within the Corporate Risk Register; and control measures have been put in place.

Members Resolved that:

The updated Corporate Risk Register for 2019/20, which incorporates the current status of those risks to September 2019, be approved.

To consider Report CFO/060/19 of the Chief Fire Officer, concerning the Service Delivery Plan for 2019/20, which has been updated to include actions resulting from the inspection of Merseyside Fire & Rescue Service by Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS), the Integrated Risk Management Plan (IRMP) Supplement 2019/20; and updated outturn performance figures.

Members considered Report CFO/060/19 of the Chief Fire Officer, concerning the updating of the Service Delivery Plan for 2019/20 to include actions resulting from the inspection of Merseyside Fire and Rescue Service by Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS), the Integrated Risk Management Plan (IRMP) Supplement 2019/21 and updated outturn performance figures.

Members were provided with an overview of the report and it was highlighted that the Service Delivery Plan is broadly the same, with the inclusion of an Action Plan following the HMICFRS Inspection, which will be discharged through the Officers of the Strategic Leadership Team.

Members Resolved that:

The updated Service Delivery Plan 2019/20, be approved.

To consider Report CFO/062/19 of the Chief Fire Officer, concerning the outcome of the Tender Process for the new Occupational Health Medical Services Contract; and to approve the award of the contract following conclusion of this process, to Healthcare Limited.

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

Members considered Report CFO/062/19 of the Chief Fire Officer, concerning the outcome of the Tender Process for the new Occupational Health Medical Services contract, and to seek Authority approval of the award of the contract to Healthwork Limited. 

Members were provided with an overview of the report, which highlighted that Healthworks Ltd significantly outperformed the other bidder, as detailed within the scoring matrix attached at Appendix A.

Members Resolved that:

The award of the new Occupational Health Medical Services contract to Healthwork Limited with effect from 1^st April 2020 for the period 2020-2025, with an option for further extensions up to 5 years, be approved.