Archived decisions

Financial Planning - Budget strategy

Commentary on progress

The budget strategy will be clearly related to the priorities set out in the Service's Corporate Plan and Integrated Risk Management Plan.

Budget approved alongside the IRMP at the Authority's meeting in February 2006.

Growth and savings proposals to be presented in a transparent manner to members as part of the annual budget cycle, identifying planned outcomes and performance improvements for budget growth and mechanisms for achieving any significant savings.

Budget reports to Finance and General Purposes Committee and main Authority.

Ensure that the long-term level of revenue commitments does not exceed long-term funding likely to be available including reasonable expected levels of future grant settlement and council tax.

Three year budget set against assumptions in future levels of grant.

Maintain three-year budget projections based where necessary on alternative scenarios to reflect uncertainty of spending and resource assumptions in order to set the likely context for making final resource allocation decisions on an annual basis.

Our projections aligned with the Governments medium term forecast and assumptions on resources available through grant and council tax, where local policy is to contain increases to state pension levels. Budgets are prepared to satisfy cash limits set as part of budget preparation cycle and self funded service developments.

Divert 2% of current resources to prevention and protection activities by 2008.

Achieved

Set a prudent minimum level of reserves based on a strategic-level risk assessment and reassessed annually as part of the budget process.

Risk assessment included with budget which identified contribution to bring general reserve back up to £2m level.

Minimise fluctuations in spending levels and council tax by absorbing the impact of different levels of pension outturn costs.

Impact minimised during 2006/07 by new financing arrangements.

Operate within firm cash limits, allocating provision for pay and other inflation at the start of the financial year.

Achieved

Contain spending within the approved cash limit for the year with no supplementary allocations being made from reserves other than in exceptional circumstances.

Only small contribution from modernisation reserve required which was more than covered by contribution into the reserve as part of Final Accounts 2005/06.

Seek Best Value in services which should always include considerations for quality, risk to achieve sustainability, environmental impact, local economic development and equalities as well as price.

Two best values published during the year on Service Level Agreements with the Authority and Partnerships. Review of insurance undertaken.

Aim to achieve a level of council tax that is in the lower quartile of the taxes of Combined Fire Authorities.

Not achieved - aim likely to be re-evaluated.

Capital programming

Review capital strategy on an annual basis and prepare a three-year programme in the light of needs identified in the Integrated Risk Management Plan, vehicle replacement programme and built estate condition survey, and prepare a three year capital programme in accordance with the strategy.

The three year approved capital programme addressed this.

Continue to reduce the proportion of vehicles leased and aim for full ownership of the fleet.

No new operational leases were taken out in 2006/07 - all vehicle purchases were made through loan or revenue contributions.

Reinvest income from disposal of capital assets where possible in order to fund new developments and initiatives identified in the IRMP.

No capital receipts in 2006/07.

Make full use of Government-supported borrowing.

Full use of supported borrowing made in financing 2006/07 capital payments.

Make use of unsupported borrowing within the framework of the Prudential Code where there is a sound business case approved by the Authority.

Unsupported borrowing not required in 2006/07.

Provision of Financial Services - Effective management of budgets

Maintain rigorous annual budgeting and budget monitoring processes.

Quarterly reporting to Finance and General Purposes Committee and monthly within the Service.

Maintain integrated accounting, budgetary and human resources systems.

Implementation of SAP has delivered further integration of HR, finance and procurement.

Ensuring good practice and probity

Apply sound financial regulations and associated financial procedures in support of good practice in financial administration and corporate governance.

Financial regulations reviewed on a regular basis with the last review being implemented during 2005/06. Part of the annual audit report and assurance statement refers specifically to the compliance with financial regulations and other procedures which comprise the control framework.

Provide an effective and efficient internal audit function which works co-operatively with the service's external auditors.

The Audit Commission continues to rely on the work of internal audit and to comment favourably on quality and professional standards achieved in the annual management letter.

Recognise the statutory role of the Treasurer in ensuring lawful and financially prudent decision making.

No breaches of compliance.

Report the internal audit strategy to the Governance Committee.

Reviewed and updated annually in advance of the financial year.

Present an annual internal audit assessment for the Service to the Governance Committee.

Annual internal audit report includes an assurance opinion to support the Statement of Internal Control.

Operate and develop ICT systems with enhanced provision of financial management information to users.

SAP operates on the basis of local data entry and access to financial management reports for all budget holders and managers.

Comply with the Cipfa Code of Practice for Treasury Management.

Code complied with.

Comply with accounting and audit standards contained in the relevant codes of practice and Cipfa guidance.

All standards complied with.

Efficient and accessible processing of transactions

Operate best practices in relationships with local contractors and suppliers, including payment of bills in line with the Government's prompt payment target.

The Government's target of 100% is probably not realistic, but at 92% the Authority performs well.

Seek continuous improvement through "customer focus" in the delivering of financial services and support.

Regular reports and meetings/support given to budget holders.

Improve and extend the use of ICT in delivering financial support services to users.

New station administrators given support from HQ finance team.

Ensure that financial systems are set up in a way which facilitates use of e-government and e-procurement.

E-focus user group considers and allocates funds for new ICT developments.

Review the balance of in-house and contracted-out provision of financial services with the aim of achieving Best Value.

Best value review of SLAs undertaken.

Maintain a separate bank account for the Fire and Rescue Service irrespective of any contracted-out arrangements for financial administration.

Account maintained.