The Combined Fire Authority for County Durham and Darlington Audit and Finance Committee meeting was scheduled to review the audit completion report for the year ended 31 March 2025 and the statement of accounts for the same period. The committee was also set to consider the corporate risk register and the forecast of outturn for the 2025/26 financial year.

Audit Completion Report Follow-Up

The committee was scheduled to receive an update on the Audit Completion Report for the year ended 31 March 2025, as detailed in the CDDFRA Follow Up Letter 24-25. This report from external auditors Forvis Mazars LLP was expected to address any outstanding matters from the previous audit. The report pack indicated that the auditors had been able to conclude their work on accounting for leases under IFRS 16 and on Group Consolidation. However, it was noted that the Whole of Government Accounts (WGA) procedures could not be completed pending final confirmation from the group auditor, the National Audit Office.

Statement of Accounts for the Year Ended 31 March 2025

A significant portion of the meeting was allocated to the Statement of Accounts for the year ended 31 March 2025. This comprehensive document, prepared in accordance with the Code of Practice on Local Authority Accounting in the UK 2024/25, provides a detailed financial overview of the Authority's activities. The report pack included a narrative report from Anthony Hope CPFA, Treasurer to the Authority, outlining the financial performance for 2024/25, non-financial performance, the operating environment, and future plans. The Statement of Accounts itself comprises the Independent Auditor's Report, Statement of Responsibilities, Group Accounts, Movement in Reserves Statement, Comprehensive Income and Expenditure Statement, Balance Sheet, Cash Flow Statement, notes to the accounts, Pension Fund Accounts, and a glossary of terms. A key change noted in the accounting policies was the mandatory implementation of IFRS 16 Leases for the financial year 2024/25, which required the recognition of right-of-use assets and lease liabilities on the Balance Sheet.

Corporate Risk Register

The committee was scheduled to review the Corporate Risk Register, which provides an overview of the risks currently facing the Authority. The report indicated that six risks were on the register, with no change noted for ER218 and FIN225, and FIN08. Risk ER224 was noted as reduced, while FIN152 and FIN153 were increased. Specific discussion was anticipated regarding FIN08, relating to the pension scheme, which was linked to remedies arising from discrimination rulings in pension cases and required further adjustments to pension figures for members.

Forecast of Outturn 2025/26 (Quarter 3)

The meeting was also set to consider the Forecast of Outturn for 2025/26. This report provides an indication of the Service's revenue and capital financial outturn position based on expenditure and income up to 31 December 2025. The forecast revenue outturn position to 31 March 2026 was projected to be an underspend of £0.732 million, representing 2.00%.

Short-Term Investments and Long-Term Borrowing (Quarter 3)

An update on the performance of the Authority's short-term investments and long-term loans for the period ended 31 December 2025 was scheduled for discussion, as detailed in the Public reports pack.

2026/27 Budget and Medium-Term Financial Plan

The committee was due to review the provisional local government finance settlement for 2026/27, alongside the draft revenue and capital budgets and the medium-term financial plan (MTFP). The report indicated that the MTFP had been revised to incorporate the latest information on government funding, council tax, pay awards, and inflation. It was noted that five services, including the Fire and Rescue Service, were facing a reduction in government funding. The report pack stated that members were expected to consider the proposed council tax increase for 2026/27 and recommend an increase of 4.06% (£5 for a Band D property) to the Fire Authority meeting on 17 February 2026.