The Authority is 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.

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.

To consider the minutes for the last meeting held on 7^th June 2022.

Resolved that the minutes of the last meeting held on 7^th June were agreed as an accurate record.

To consider the verbal presentation from Georgia Jones from the Authority’s External Auditors – Grant Thornton, concerning the audit finding following their audit of the Authority’s 2021/22 financial statements.

Grant Thornton presented the report on the audit findings for Merseyside Fire and Rescue Authority. Members were asked to consider the report and verbal presentation concerning the audit findings following their audit of the Authority’s 2021/22 financial statements.

Georgia Smith from Grant Thornton  advised Members’ that the audit is substantially complete however there are a few final outstanding queries that need to be addressed but that these should be completed by the end of next week and will not impact on their findings.

Members questioned if all of the bullet points had been resolved contained at page 5 of the report. Georgia Smith stated that there are a couple of areas with outstanding queries and work needs to be completed on both sides to ensure this is finished however nothing is substantial and no major findings should be brought back.

RESOLVEDthat Members noted the verbal presentation outlining the audit findings following their audit of the Authority’s 2021/22 financial statements and accompanying report.

To consider Report CFO/044/22 of the Director of Finance, concerning the audited 2021/22 Statement of Accounts for approval and to request that they be authorised for issue.

Director of Finance and Procurement Ian Cummins took the committee through the statement of accounts for 2021/22. Members were asked to consider the report. (Appendix 1)

Cllr Gorman queried what the main reason for the delay in the pension fund was. Ian Cummins stated the delay is  down to the difficulty of providing the level of assurances and information Grant Thornton are required by regulations to get from Merseyside Pension Fund and the associated Fund investments. He then assured Members that the information required by the Auditors and associated audit work should be completed  by next week and the draft statement of accounts are expected to remain unchanged.

RESOLVED that

a.      the unaudited Statement of Accounts 2021/22 attached as (Appendix A) to report CFO/44/22 be approved and authorised  for issue, and

b.      the letter of representation in relation to the 2021/22 accounts (Appendix B) be approved

To consider Report CFO/045/22 of the Director of Finance, concerning the revenue, capital, and reserves financial position for the Authority for 2022/23.  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 June 2022.

Ian Cummins (Director of Finance) then took the committee through the financial review for 2022/23. (Appendix 2)

Cllr Makinson brought the members attention to the current rise of interest rates and questioned how confident the authority is that the inflations are going to be significant for the rest of the year with pay awards, electricity contracts and the devaluation of the pound currently ongoing. Ian Cummins stated that things are moving day by day. The original inflation provision is 2-8% and a price inflation is expected to be the out sought contract (PFI, Telent etc.). He then stated that the authority have negotiated with those providers to try and contain the increase. Ian Cummins assured members that the authority is expecting some money to be left at the end of the year but the big if is pay awards. Ian told members that 2 million will be required to cover these pay increases and £600,000 for energy. This should leave around 1 million left if the authority should need to dip into this for any inflation increases.

Cllr Makinson then queried what effect the interest rates and general inflation would have on the capital programme and new training centre. Ian Cummins stated that the authority won’t need to borrow until the middle of next year at the latest however the authority have had conversations with treasury colleagues and they are meeting with their consultants in November. He then stated that the authority do model the MRP interest budget of 4% is robust but we do need to keep a high watch on it. Therefore, it is difficult to decide when to borrow as interest rates may change. Therefore this situation need to be monitored closely. Cllr Makinson then queried if the government price caps apply to the public sector. Ian Cummins confirmed that this does apply.

Cllr Hanratty followed this by stating that we need to ensure our budget is tight and must be monitored to protect the service. He then questioned if there was an update on the two letter the Chief sent out to the home office about the cost of living crisis.

Ian Cummins stated that two letters were written to the home office to query about the current inflation. Ian told the committee that the home office are working with the NFCC on this and the NFCC are hopeful the home office may find some money. However, at the moment there is no further detail on more funding and the government aren't going to open up a spending review. Ian also stated that there is a lot of uncertainty around pay rewards in further years and provisional settlement.

Resolved –

a.      The contents of the report was noted by members, and

Resolved – that members approved

b.     The proposed revenue and capital budget alignments,

c.      The use of the £3m inflation reserve to cover 2022/23 pay awards above 2.5% MTFP assumption and higher energy costs, and

d.     Instruced the Director of Finance and Procurement to continue  ...  view the full minutes text for item 5.