PURPOSE OF REPORT

This purpose of this report is to present to Members the updated Financial Reserves Strategy (the Strategy).

EXECUTIVE SUMMARY

The Financial Reserves Strategy was last presented to the Fire and Rescue Authority in March 2016 and in line with good practice has been subject to review.

The Strategy has been updated to reflect current practices and procedures.

RECOMMENDATIONS

That Members approve the Financial Reserves Strategy at Appendix 1, as a basis for managing the Fire and Rescue Authority’s usable reserves.

OBSERVATIONS FROM AUDIT COMMITTEE

The report was reviewed by the Audit Committee, prior to submission to the Authority and the committee recommended approval.

BACKGROUND

The Fire and Rescue Authority differs from other local authorities in that it is funded from contributions from the six constituent authorities in North Wales, so is not a precepting or billing authority.

The Welsh Government enacted ‘The Combined Fire and Rescue Services Schemes (Variation) (Wales) Order 2009’ in recognition of the possible burden on council budgets should the Authority require an additional contribution in any year. This provided fire and rescue authorities in Wales with a statutory basis for holding reserves.

The use of reserves is a critical component in managing the financial affairs of the Authority and has ensured that in any year the need for revised contributions is reduced.

INFORMATION

The Financial Reserves Strategy is set out in Appendix 1 and details the reserves held and documents the process for the review and reporting of the reserves.

IMPLICATIONS

Wellbeing Objectives The holding of reserves enables the Authority to achieve its long-term well-being objectives which are:
To support people to prevent accidental dwelling fires and stay safe if they do occur;
To facilitate high quality, responsive and better integrated fire and rescue services so that prevention activity and emergency response can continue to be available when and where required, affordably, equitably and on the basis of risk
Budget Current usable reserves total £1.82m
Legal The Fire and Rescue Authority has a legal duty to set a balanced revenue budget. This may include the use of reserves for known commitments.

Staffing None
Equalities/Human Rights/Welsh Language None
Risks Income and expenditure is closely monitored to ensure that deviations from the approved budget are properly identified and reported to Members. This includes the movements in the reserves.