To consider the Statement of Accounts for 2023/24 and the approval of the audited Statements (CFO/84/24).

Director of Finance & Procurement, Mike Rea, introduced the report, taking Members to page 41 showing the ‘Balance Sheet’ table, noting that the reference within the table to ‘Pension Fund’ had been requested to change to ‘Pension Liability’ following advice from External Auditors.

Members’ attention was also drawn to page 43 of the agenda, under the ‘Accounting Policies and Roman Numeral V Prior Period Adjustments, Changes in Accounting Policies and Errors’. It was proposed this be moved out of ‘Accounting Policies’ to Note 44 on pages 89 – 90 of the Statement of Accounts.

On page 47 under the ‘Events after the Report Period’ section, the paragraph starting ‘The Court of Appeal has recently issued its judgement in the Virgin Media Case’ was to be moved to Note 40 within the Statement of Accounts.

Members were advised the final changes were on page 70 under ‘Financial Instruments’. The heading ‘PFI liabilities at amortised cost’ was to be removed and the totals updated. The balance for ‘Creditors at amortised cost’ was to be amended from £6,282 to £5,531 as of 31st March 2024. The ‘Non-financial instruments’ was amended from £7,029 to £7,780 as of 31st March 2024. It was explained that the figures at the end of 31st March 2023 was also to be restated to take into account these amendments. Confirmation was received that the overall totals had not changed. A copy of the updated Statement of Accounts with the proposed amendments was shared with Members.

Members were informed that the main financial statements in terms of the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet and Cash Flow Statement had not changed as a result of these amendments.

Councillor Grace recommended the changes proposed by Mike Rea be adopted asked if Members agreed that the updated Statement of Accounts explained by Mike were to be reflected in the publicised Statement of Accounts. This action was seconded by Councillor Murray and agreed by Members.

The report was presented, noting that the Authority was required to prepare a set of annual financial statements in a format that was set out under the relevant Accounting Codes and Standards, which must then be approved and signed off for publication by the Authority.

Members were advised that the public Statement of Accounts must include any certificate or opinion entered by the External Auditor, Forvis Mazars, on whether the statements gave a true and fair view of the financial position of the Authority and had been prepared in accordance with the relevant Code of Practice.

The attention of Members was drawn to paragraphs 10 – 25 on pages 11 – 16 of the report which gave background to the four core financial statements in the Statement of Accounts and explained the changes from the figures in the previous year. It was also noted that paragraph 20 outlined the Balance Sheet movements between 2022-23 and 2023-24 and the movements on the Authority’s assets and liabilities.

It was acknowledged that the Code and Regulations required a number of notional accounting entries and adjustments that were significant in value to be included in the Statement of Accounts, such as a deprecation charge. These were notional in nature so that they did not form part of the costs that must be funded by the Authority’s approved general fund budget. Mike advised that the table on page 12 outlined the 2023-24 general fund outturn position.

Mike explained that the budgeted outturn position had not changed to that reported at the Policy and Resources Committee in July 2024. Furthermore, it was reported that Appendix B to the report showed the Authority’s ‘Letter of Representation’ which set out assurances from the Authority to the Auditor that relevant accounting standards had been complied with and gave further assurances that the Authority had disclosed all the relevant information to support the financial statements.

The report was concluded by Mike advising Members that the accounting team was a new team, adopting new roles due to a number of retirements. He was pleased to see that an unqualified opinion on the account had been given. Mike gave his thanks to the Accounting Team and to the External Auditors for their advice they have given the Accounting Team.

Councillor Grace thanked Mike for his report and asked for clarity on page 37, paragraph 2 mentioning the local government pension scheme - ‘Any shortfall on the Firefighter Pension Schemes is met by grant funding from Central Government and the Authority is only required to cover discretionary benefits when the pensions are actually paid’. She queried whether this was a huge help which Mike advised it was. He explained that a number of years ago, the pension scheme was fully funded by the Authority, through individual employee pension contributions and employers’ pension contributions. Out of that, the Authority had to pay the pensions and commutations of retired firefighters. Mike explained that as the number of firefighters reduced, and the number of pensioners increased, it became unaffordable for Fire and Rescue Services to maintain the pension scheme. It was advised that this was where the Government began subsidising Fire & Rescue Services with a pension grant. This allowed the Authority to continue to pay the pensions and commutations when employees left.

RESOLVED that:

a)    the amendments proposed by the Director of Finance and Procurement to be incorporated into the Statement of Accounts be approved;

b)    publication of the 2023/24 Statement of Accounts, attached as Appendix A along with the amendments to this report be approved;

c)    authority to the Chair of the Audit Committee and the Director of Finance & Procurement, as the s151 officer to sign the statement of accounts attached as Appendix A including the amendments be delegated; and

d)    authority to the Director of Finance & Procurement , as the s151 to sign the letter of representation in relation to the 2023/24 accounts, attached as Appendix B.be delegated.