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The Treasurer presented a report with the provisional financial results for 2019-20 and the Treasury Management Activities for 2019-20.
Members were reminded that detailed budget monitoring reports had been presented to the Policy and Resources Committee on a quarterly basis throughout 2019-20 and subject to specific areas highlighted in the report, the out-turn was consistent with the reporting.
There was a query regarding the alliance costs, of which £200,000 had been set aside for the Alliance programme with Shropshire & Wrekin Fire Authority. Members were informed that approximately £150,000 was committed to the shared cost of the joint ICT post, to be spread over three years with the Alliance Reserve to meet the agreed costs in future years as they occur.
With regard to the capital budget a Member requested an update on Redditch fire station. The Head of Legal Services assured Members that a substantial amount of work had already been undertaken and an update would be sent out to Members next week.
Members were reminded that due to the pandemic the Statement of Accounts this year needed to be signed off by the Treasurer no later than 31 August 2020 and approved no later than 30 November 2020, rather than the normal dates of 31 May and 31 July respectively .The Treasurer confirmed that he had actually signed them on 29 May and that they were on track for the Audit and Standards Committee to approve the Accounts at their scheduled meeting on 8 October 2020.
The Deputy PCC queried why the Legal Services budget had increased. The Head of Legal Services explained that this was due to the Judicial Review which had incurred £37,000 costs and the remainder included employment tribunal costs.
With regard to Treasury Management activities, in 2019/20 additional borrowing of £3.000m was taken, in line with the Capital Financing Requirement, to replace temporary funding of capital from internal cash balances and anticipating the maturity of £1.500m of loans in 2020/21.
The Treasurer was pleased to inform Members that the Prudential Code Indicators for 2019-20 were within the limits set by the Authority and no matters required further action.
RESOLVED that the Authority:
i) Notes the provisional financial results for 2019/20;
ii) Notes the transfers between reserves previously approved in accordance with the Reserves Strategy, or approved by the Fire Authority on 18th December 2019 as below;
a) £0.454m from the Budget Reduction Reserves;
b) £0.381m from the new Dimensions Reserve;
c) £0.300m from General Balances;
d) £0.130m from the Pensions Reserve;
e) £0.285m to the July 2017 Pay Award Reserve; and
f) £0.250m to the Broadway Fire Station Reserve
iii) Notes the revised transfers arising from timing differences previously approved in accordance with the Reserves Strategy or approved by the Fire Authority on 18th December 2019 as below as below;
a) £0.115m from the Property Maintenance Reserve;
b) £0.270m from the Equipment Reserve; and
c) £0.242m to the Prevention Reserve
iv) Approves the final transfers to Earmarked Reserves as set out below:
a) An additional £0.130m from the Pension Reserve;
b) £0.188m to the Alliance Collaboration Reserve; and
c) £0.164m to the Day Crew Plus (DCP) change reserve.
v) Notes that the Treasurer will certify the 2019/20 Statement of Accounts, in accordance within the regulatory time-scale, of 31st August 2020;
vi) Notes that the Audit of the accounts will be undertaken by Grant Thornton LLP; and
vii) Confirms that the Prudential Indicators for 2019/20 were within the limits set by the Authority and no matters require further action.