NIFCA BUDGET
After a standstill budget for 2024/25, NIFCA’s Finance Committee agreed an increase in the Local Authority funding precept for 2025/26 by 2%. An agreed Cost of Living rise of 3% was applied to all staff salaries which, together with incremental rises and the rise in employers’ National Insurance, increased budgeted employee costs by 5.2% from the previous year. Our end of year forecast predicted a small net surplus of £3,800, but the eventual outturn for 25/26 was a net deficit of £11,565. This was principally due to the significant cost of unexpected repairs to St Aidan’s engines, resulting in an overspend of £21,000. Additionally, NIFCA paid the legal costs of three ongoing prosecutions, which required the services of a court barrister, resulting in a further budgetary overspend of £33,000. Some of this overspend was offset by lower than predicted expenditure in annual employee costs, RIB running costs and overall Management costs. The Authority still achieved its £50,000 annual contribution to the Asset Renewals fund. There was an increase in total income from budget (excluding R-DEL grants and bank interest) due to £4,700 received from the sale of recovered pots. However, this £4,700 was paid out again as donations to the Fisherman’s Mission and Berwick RNLI, so the deficit figure was unchanged. The Defra R-DEL funding income for 25-26, and its associated expenditure are excluded from the outturn figure as they are assumed to be budget-neutral. The unspent balance at the end of March 2026 (£145,954) are treated as deferred grant income to be spent in future periods. GENERAL RESERVES The Authority considers it essential to set aside funds every year to pay for eventual vessel replacement. This year the budgeted transfer of £50,000 to the Renewals Fund was augmented by a further 35K from investment account interest. 24.5K was drawn from the fund to pay part of the cost of repairs and reconditioning of the St Aidan’s engines (see NIFCA Budget). The net effect increased the Fund to £908,356 as at 31/3/26. The Authority's General Reserves are separate from the Renewals Fund and are maintained at a minimum level of 20% of total Turnover in order to fund budget deficits, cover any financial emergencies and fund additional capital expenditure to enhance the Authority's capabilities. The net effect of the budget deficit (11.6K) and capital expenditure drawings (18.7K) for 2025- 26 was to decrease the level of General Reserves from £256,768 to £226,518 as at 31/3/26.
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