Lancashire Combined Fire Authority

 

Resources Committee

Meeting to be held on 3 July 2024

 

Financial Monitoring - Provisional Outturn 2023/24

(Appendix A-D refers)

 

Contact for further information: Steven Brown - Director of Corporate Services

Tel: 01772 866804

 

Executive Summary

 

This report presents the financial outturn position for 2023/24, and the impact of this on usable reserves. The revenue outturn position shows an overspend of £0.382m which is broadly in line with previous forecasts. The Capital outturn expenditure for the year is £6.034m.

 

Recommendation

 

The Committee is asked to:

·         Note the Revenue Budget provisional revenue outturn set out in paragraph 2.

·         Note and endorse the receipt and proposed use of grant funding set out in paragraph 4.

·         Note the Capital Budget provisional outturn set out in paragraph 7.

·         Note and endorse the revised Capital Budget for 2024/25 set out in paragraph 8.

·         Note and endorse the transfer to earmarked reserves set out in paragraph 6 and year end reserve levels.

 

1.          This report presents the financial outturn position for 2023/24, and the impact of this on usable reserves. The draft 2023/24 financial statements will be prepared using this provisional information and presented to the External Auditors in July for Audit. Following completion of their audit they will be presented to the Audit Committee for approval.

Revenue Provisional Outturn

2.          The annual budget for the year was set at £68.183m. The provisional outturn position shows net expenditure of £68.565m, giving a total overspend for the financial year of £0.382m, which is broadly in line with previous forecasts presented to the Resources Committee.

3.          The detailed provisional revenue outturn is set out in Appendix A. The pay budget was broadly on budget, the major non-pay variances are summarised below:

Area

Overspend/ (Underspend) £m

Reason

Fleet

0.133

The overspend is mainly due to the increased cost of repairs and inflationary pressures on the supply of parts for vehicle and equipment repairs. It is hoped that repair costs will reduce in 2024/25 as older stock has been replaced.

 

Property

(0.150)

The underspend is due to lower utility costs than budgeted during the winter period.

 

Apprenticeship Levy Funding

0.248

As previously reported the Apprenticeship Levy income for the year is lower than budgeted due to a reduction in the number of recruits meeting the eligibility criteria for funding. This ongoing pressure was included in the 2024/25 budget.

 

Training Centre – non pay

0.154

As previously reported, due to vacancies in the Training Centre, the department has had to appoint more associate trainers than budgeted to meet the training needs of the service; this includes driver training and specialist training such as swift water rescue as a result of the Emergency Cover Review (ECR). This pressure is offset by vacancies.

 

 

4.          In March a grant of £0.245m was received from the Home Office to fund research activity managed by the National Fire Chiefs Council (NFCC). This will be grant funded to the NFCC in 2024/25.

General Reserve

5.          The General Reserve exists to cover unforeseen risks and expenditure that may be incurred outside of planned budgets. In February the Authority approved the minimum level of General Reserve as advised by the Treasurer at £3.75m. Following the provisional outturn the level of the General Reserve at 1 April 2024 is £4.918m, this is above the minimum level of General Reserve set by the Authority.

Earmarked Reserves

6.          Earmarked reserves are all funds that have been identified for a specific purpose. Appendix B sets out the proposed transfers to earmarked reserves for approval of £0.532m. The balance of all the earmarked reserves is £28.813m as at the 31 March 2024; this includes the Capital Reserve of £20.344m and Private Finance Initiative (PFI) reserves of £4.918m.

Capital Budget Provisional Outturn

7.          The revised Capital Budget for 2023/24 was £7.769m. Total capital expenditure for the year was £6.034m, with slippage of (£1.772) proposed to be transferred to the 2024/25 Capital Budget. The table below sets out the provisional outturn for the main programmes and projects and Appendix C sets out the detailed provisional outturn.

Area of Spend (£m)

23/24 Budget

Actual Exp

Slipp-age

 

(Under)/Overspend

Explanation

Operational Vehicles

4.302

3.925

(0.403)

0.027

In year expenditure reflects the planned purchase of

·         11 Fire Appliances.

·         One Aerial Appliance.

·         Three Command units.

·         Two Technical Rescue Units.

Slippage is due to longer than expected lead times for the climate change vehicle, ATV and Foam Pod.

Support Vehicles

0.925

0.598

(0.327)

0.000

In year expenditure reflects the planned purchases of:

·         One electric vehicle for BA Support Services.

·         13 Cars.

·         5 pickups.

Slippage relates to longer lead in times.       

Operational Equipment

1.298

0.731

(0.568)

0.001

In year expenditure relates to Road Traffic Collision (RTC) Rescue Equipment tools and charging units, an underwater drone, CCTV on operational vehicles and thermal imaging cameras. Slippage relates to RTC cutting equipment and CCTV on appliances.

Buildings

0.351

0.255

(0.106)

0.010

Expenditure in the year relates to

•    Upgrade of dormitory facilities at Hyndburn.

•    Work to the fleet workshop at Training Centre.

•    Completion of drill tower replacements at Tarleton, Blackpool and Boulton le Sands, which was now in use.

Slippage relates to drill tower replacements and estate improvements.

ICT Systems

0.893

0.525

(0.368)

0.000

Software expenditure in year includes:

•   Dynamic Coverage Tool.

•   Command Support Software.

Hardware expenditure in year includes:

•   Vehicle Mounted Data Solutions.

Software slippage includes RDS/Alerter software and Learning Management and System Incident ground Radios.

Total

7.769

6.034

1.772

0.038

 

8.          The original approved capital programme for 2024/25 was £10.196m. This has been updated for £1.772 of slippage outlined previously giving a revised Capital Budget for 2024/25 of £11.969m. The revised 2024/25 Capital Budget and funding is set out in Appendix D.

Financial Implications

9.          As outlined in the report

Legal Implications

10.       None

Business Risk Implications

11.       None

Environmental Impact

12.       None

Equality and Diversity Implications

13.       None

Human Resource Implications

14.       None

Local Government (Access to Information) Act 1985

List of background papers NA

Reason for inclusion in Part 2 if appropriate: N/A

 

Appendix A: Revenue Budget Monitoring Statement

Appendix B: Transfers to Earmarked Reserves

Appendix C: Capital Budget Monitoring Statement

Appendix D: Capital Budget 2024/25

 

 

Appendix A

Revenue Budget Monitoring Statement

 

 

Appendix B

Transfers to Earmarked Reserves

Year End Transfers to Earmarked Reserves:

Transfers to Budget Holders Earmarked Reserves

£m

Procurement – to fund structural PPE not yet delivered.

0.024

Property – delay in committed planned maintenance works.

0.408

Fleet – to fund operational equipment planned for replacement in 2023/24.

0.100

 

0.532

 

 

 

Appendix C

Capital Budget Monitoring Statement

CAPITAL BUDGET 2023/24

 2023/24 Revised Prog

Year End Outturn

Slippage to future years

Over/ (Under) Spend

 

 

Vehicles

 

Operational Vehicles

4.302

3.925

(0.395)

0.027

Support Vehicles

0.925

0.598

(0.327)

0.000

 

5.227

4.523

(0.722)

0.027

Operational Equipment

 

Operational Equipment

1.298

0.731

(0.577)

0.001

 

1.298

0.731

(0.577)

0.001

Buildings Modifications

 

STC

0.016

0.019

(0.000)

0.003

Enhanced station facilities

0.028

0.035

(0.000)

0.007

Drill tower replacements

0.156

0.103

(0.053)

0.000

Estate Improvement Provision

0.151

0.098

(0.053)

0.000

 

0.351

0.255

(0.106)

0.010

ICT

 

IT Systems

0.893

0.525

(0.368)

0.000

 

0.893

0.525

(0.368)

0.000

 

 

Total Capital Requirement

7.769

6.034

(1.773)

0.038

 

 

 

 

 

Funding

 

Capital Grant

               -

               

 

 

Revenue Contributions

4.170

4.170

 

 

Earmarked Reserves

0.364

0.266

 

 

Capital Reserves

1.544

              

 

 

Capital Receipts

1.691

1.598

 

 

Total Capital Funding

7.769

6.034

 

 

 

 

Appendix D

Capital Budget 2024/25

 (£m)

 2024/25 Original Budget

Slippage from 2023/24

2024/25 Revised Budget

 

 

Vehicles

Operational Vehicles

2.548

0.395

2.943

Support Vehicles

0.621

0.327

0.948

3.169

0.722

3.891

Operational Equipment

Operational Equipment

1.269

0.577

1.846

1.269

0.577

1.846

Buildings

Update Preston Facilities

0.500

 -

0.500

Development & Land Acquisition

0.340

 -

0.340

Blackpool Dormitory

0.834

 -

0.834

Drill tower replacements

1.155

0.053

1.208

Wylfa Prop

0.125

 -

0.125

Estate Improvement Provision

0.579

0.053

0.632

3.533

0.106

3.139

ICT

IT Systems

2.225

0.368

2.593

2.225

0.368

2.593

Total Capital Requirement

10.196

1.773

11.969

 

Funding

 

Revenue Contributions

2.500

 -

2.500

Capital Reserves

7.696

1.773

9.469

Total Capital Funding

10.196

1.773

11.969