Agenda and draft minutes

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Items
No. Item

1.

Preliminary Matters

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.

 

 

Minutes:

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. 

 

Members resolved that:

 

a)    The following declarations of interest were made by individual Members in relation to items of business on the Agenda:

·         Cllr Linda Maloney declared an interest in Agenda Item 3 – “Financial Review 2019/20 – April to June”, as the report makes reference to the new St. Helens Community Fire Station; and she is a member of the Planning Committee within St. Helens Council.

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

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.

2.

Minutes of the previous meeting pdf icon PDF 75 KB

The minutes of the previous meeting held on 6th April 2019 are submitted as a correct record and for signature by the Chair. 

Minutes:

The Minutes of the previous meeting of the Audit Committee, held on 6th June 2019, were approved as a correct record and signed accordingly by the Chair.

 

 

3.

Financial review 2019/20 - April to June pdf icon PDF 138 KB

To consider report CFO/050/19 of the Chief Fire Officer, concerning 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.

Additional documents:

Minutes:

Members considered Report CFO/050/19 of the Chief Fire Officer, concerning 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.

 

Members were advised that the report covers the revenue and capital budgets, reserves and treasury management updates for April to June 2019.

 

With regards to the revenue position, Members were informed that the report outlines the actual change in the Firefighters Pension Scheme employer rates, relative to the estimate assumed in the budget. They were informed that the actual change increased the employer rate by 1.9% to 2.5% above the budgeted increase, which equates to an additional £0.560m.

Members were informed that following a challenge by the Director of Finance, the Home Office agreed to increase the grant it had provided towards the cost of the increase to £3.025m, which is an additional £0.433m.

 

It was highlighted to Members that the higher Firefighters Pension Scheme (FPS) rate, will also mean that the £1m additional investment in front line services, approved by Members, will now require an additional £0.145m funding.

As a result, the net impact after taking into account the increase in grant, is an additional £0.272m.

 

Members were advised that as the £0.272m relates to the 1992 Firefighters Pension Scheme, and at some point in the near future, all firefighters will be on the 2015 scheme, this cost may be viewed as temporary, while some staff remain in the 1992 scheme. Members were informed that it is the view of the Director of Finance, that this temporary cost can be contained within the overall employee budget and recruitment reserve.

 

Other approved budget adjustments, were highlighted to Members; and they were informed that they are funded through the inflation provision or reserves.

 

Members were advised that the 2019/20 revenue budget is consistent with the original budget; and that the Authority is on target to deliver all of the approved revenue saving options. Members were also informed that since the report was written, the Fire Brigades Union has accepted the employers’ offer of a 2% increase in firefighter pay for 2019/20, which is consistent with the assumption built into the 2019/20 budget.

 

It was highlighted to Members that the report identifies a potential risk to the budget assumption, around the current employer costs associated with the FPS and the Local Government Pension Scheme (LGPS), following the outcome of the McCloud case, which deemed the transitional protections given to some members of the Firefighters Pension Scheme and the Judges Pension Scheme, amounted to unlawful discrimination. Members were advised that the difference in treatment will need to be remedied across all of those schemes, including the LGPS. They were informed that any remedy or compensation payments are not known at this point; and it may be sometime before they are known. However, Members will need to be mindful that there may be a financial impact on the Authority in relation to historic,  ...  view the full minutes text for item 3.