Report of the Assistant Director Resources/Treasurer

The Policy & Resources Panel considered the report of the Assistant Director Resources/Treasurer (ADR/T).  This was the sixth report to Members for the 2021/22 financial year and highlighted the Provisional Outturn on the Revenue Budget 2021/22 and the 5 year Capital Programme, approved by the Fire Authority in February 2021 and the revised Capital Budget approved in February 2022.  It was noted that the provisional outturn was based on currently available information and was subject to External Audit.  The restructuring of the Finance team was almost complete, new members had started and there was already a noticeable improvement. 

The provisional outturn was a net revenue underspend of £20,000 which was a reduction in underspend of £244,000 from the position identified in the last report to this Panel of £264,000 underspend.  The ADR/T explained that of the variances listed the major ones would be picked up in terms of the 2022/23 monitoring.  The movement of £322,000 from the position reported at P11 could largely be attributed to an increase in overtime and on-call costs, an increase in funding and a reduction in forecast Occupational Health recharges. 

The ADR/T commented that the level of savings achieved would be very important for the coming year.  The performance against grants and spending plans was summarised in the report, £3million was carried forward in earmarked reserves and spending plans were being developed for future years.  The Capital Budget included further slippage from figures agreed at the February Fire Authority meeting.  Worldwide supply chain disruption had particularly impacted Estates and Fleet/Engineering projects.

Members asked how these compared to other Fire Authorities.  The ADR/T responded that there were no readily available comparative figures.  However East Sussex was viewed as a financially well-managed Authority including by the HMICFRS.  There were several smaller Authorities where the NFCC/Home Office had concerns about their financial sustainability.

Internally there was more work to do financially, the Senior Leadership Team would have to have some difficult conversations over the coming months, however, it was important to remember that the Authority was in a relatively good position in terms of its financial standing and stability.  The Panel could rely on and draw assurance from both the Internal and External Audit processes and the HMICFRS Inspection.

Members stated that there were likely to be difficult times ahead in terms of Government funding and asked where more savings could be found.  The ADR/T agreed that the lack of long-term funding would inevitably have impacts on the Authority.  A report would be taken to September Fire Authority setting out the latest assessment of future funding and the impact of pay and price inflation on expenditure

RESOLVED – The Policy & Resources Panel agreed to note:

      i.        the provisional 2021/22 Revenue Budget outturn;

     ii.        the provisional Capital Programme outturn, including the slippage amount and spending incurred in advance;

    iii.        the net drawdown from reserves during the year;

   iv.        the savings delivered in 2021/22; and

     v.        cash balances invested at year end and borrowing repaid.

   vi.        The Policy & Resources Panel agreed to approve that the outturn underspend of £20,000 be transferred to the improvement & Efficiency reserve.