Agenda item

This report presented the Core Financial Statements, which formed part of the Statement of Accounts for the Combined Fire Authority for the financial year ended 31 March 2019. 

The Statements took account of the information presented in the Year End Revenue Outturn, Year End Capital Outturn, Year End Treasury Management Outturn and Year End Usable Reserves and Provisions Outturn reports and were prepared in line with recommended accounting practice which was not accounted for on the same basis as we accounted for council tax.  As such this meant they did not match the details in the Outturn reports, and hence the sections provided an overview of each statement and a reconciliation between Outturn reports and the Core Financial statements where appropriate.

It was noted that the 2018/19 core statements presented assumed that the Authority’s 25% share of North West Fire Control Ltd year end position had not changed from 2017/18 to 2018/19 (which would be updated for the final version of the accounts).

The Director of Corporate Services had circulated before the meeting a slightly updated version of the Core Financial Statements 2018/19.  He advised that after the report had been produced the full statement of accounts was reviewed for accuracy and as part of that process an error was found which related to a year end adjustment for the Authority’s share of billing authorities’ year end council tax collection fund.  In order to present an accurate position to Members it was felt timely to present an updated version of the core financial statement at the meeting.  County Councillor O’Toole commended the team on noticing the error and bringing it to the attention of the Committee.

Members considered the appendices:

Narrative Report

This set out the financial context in which the Combined Fire Authority operated, and provided an overview of the financial year 2018/19 as well as details of future plans.  The performance statistics for 2018/19 were not yet completed and would be updated prior to the final version being approved.

Comprehensive income and expenditure account

This statement showed the accounting cost in the year of providing services. It was a summary of the resources that had been generated and consumed in providing services and managing the Authority during the last year. It included all day-to-day expenses and related income on an accruals basis, as well as transactions measuring the value of fixed assets actually consumed and the real projected value of retirement benefits earned by employees in the year.  

Movement in reserves statement

This statement showed the movement in the year on the different reserves held by the Authority, analysed into i) Usable Reserves (those that the Authority may use to provide services or reduce local taxation, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use) and ii) Unusable Reserves (which include reserves that hold unrealised gains and losses where amounts would only become available to provide services if the assets were sold; and reserves that hold timing differences ‘between accounting basis and funding basis under regulations’).

Balance Sheet

This showed the value as at the date of the assets and liabilities recognised by the Authority.  The net assets of the Authority (assets less liabilities) were matched by the reserves held by the Authority.

In response to a question from County Councillor Wilkins the Director of Corporate Services confirmed that the majority of the ‘Other Long-Term Liabilities’ net liability of £831m (as detailed on page 7 of the revised report) was in relation to the unfunded firefighters pension scheme which was based on an actuarial accounting valuation, not the full tri-annual valuation.

Cash flow statement

This statement showed the changes in cash and cash equivalents of the Authority during the reporting period.  The statement showed how the Authority generated and used cash and cash equivalents by classifying cash flows as operating, investing and financing activities.

The unaudited Statement of Accounts would be signed by the Treasurer to certify that it presented a true and fair view of the financial position of the Authority as at 31 March 2019.  This would be subject to review by the Authority’s external auditors, Grant Thornton which was scheduled to take place in June and July.  A further report will be presented to the Audit Committee in July, following completion of the external audit. At this meeting the Chair of the Audit Committee would be asked to sign the final statement of accounts, as well as the Treasurer. Following which a final audited set of accounts would be presented to the Resources Committee for information.

RESOLVED: - That the Committee noted and endorsed the Core Financial Statements.