Financial Management Report: April - June 2021
Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
This report shows the revenue and capital
projected outturn for 2021/22 as at the end of period 3, covering
the period from April to June 2021.
The Leader and Cabinet Member for Finance introduced the report which set-out the revenue and capital projected outturn position for 2021/22, based on service activity up-to the end of June 2021 and collated from monitoring returns from budget managers.
The Leader and Cabinet Member for Finance reminded Members that the projected revenue overspend of £392,000 was an annual overspend and that the Council had covered themselves by setting-up the Covid Recovery Fund of £1.043million allocated from the 2020/21 savings. The Cabinet Member drew attention to Table 1 on page 85 of the report, and noted that the most significant predicted overspend was in Commissioning, Environment and Leisure at £408,000, and referred to Appendix I of the report which showed loss of income in parking due to the Covid-19 Pandemic and additional forecast expenditure on homelessness. He welcomed the additional income from garden waste collections and projected underspends due to salary variances mainly in the planning and legal service areas, and an additional Government grant of £170k due to losses in income from fees and charges.
The Leader and Cabinet Member for Finance referred to paragraph 3.10 of the report which reported that the General Fund had a balance of £2.856million which he noted was still £1.3million above the agreed minimum. However, the Leader and Cabinet Member for Finance stated that he had requested a full review of all the Council’s reserves to see how the General Fund could be made more “buoyant”.
The Leader and Cabinet Member drew attention to Table 7 in Appendix I to the report, which showed that on a budget of £25million the Council had spent £967,692 with projected variances of £596,727 for 2021/22. In concluding, the Leader and Cabinet Member for Finance considered that the Council were doing very well in managing the finances during a very difficult time.
The Leader and Cabinet Member for Finance proposed the recommendations which were seconded by the Cabinet Member for Housing.
(1) That the projected revenue overspend of £392,000 be noted.
(2) That the capital expenditure of £968,000 as detailed in paragraph 3.13 and Appendix I (Table 7) be noted.
(3) That the transfer of £1.043m from the 2020/21 underspend to the Covid Recovery Fund as detailed in paragraph 3.9 of the report be noted.
(4) That the Chief Executive be given delegated authority to top-up the Pension and Redundancy Fund as set-out in paragraph 3.10 of the report.
(5) That the additional Government funding received by the Council in response to the Covid-19 pandemic as detailed in paragraph 3.3 of the report be noted.
(6) That the capital variances and their funding as detailed in paragraph 3.15 and Appendix I (Table 7) of the report be approved.
(7) That paragraph 3.14 of the report regarding the Swallows Leisure Centre be noted.
Report author: Nick Vickers
Publication date: 30/09/2021
Date of decision: 22/09/2021
Decided at meeting: 22/09/2021 - Cabinet