Agenda item

[Report of the Director of Finance.  To be introduced by the Cabinet Member for Finance and Transformation]

This report sets out the provisional outturn for 2020/21 for the General Fund, HRA, DSG and the Capital Programme compared to budget.  It provides explanations of significant under/overspends and also includes proposed transfers to/from reserves, revenue and capital carry forward requests and any budget virements or adjustments.

The Leader introduced the report on behalf of the Cabinet Member for Finance and Transformation. The report set out the provisional outturn for 2020/21 for the General Fund, HRA, DSG and the Capital Programme compared to budget. It provided explanations of significant under/overspends and also included proposed transfers to/from reserves, revenue and capital carry forward requests and any budget virements or adjustments.

The Cabinet Member for Finance and Transformation was available online and  commented that the report indicated a small underspend and that the contingency reserve earmarked to cover the risk of overspending had not been used. There were some concerns in relation to the relatively high underspend in the capital programme budget. However, the Cabinet Member advised that no external funding had been lost as a result of the underspend.

The Director of Finance responded to questions from the Committee:

-           The Government had announced considerable funding to cover any overspends as a result of Covid-19. The Council had received significant emergency funding in last year and was also supported in regard to the loss of fees and charges usually collected. Further such support was also being received in this financial year. However, whether this support would be enough would depend on the ongoing situation with Covid-19.

-           General Fund capital receipts can continue to be used  to  fund one-off costs to improve operations and make ongoing savings  within  the Council. The report provided a full explanation on capital receipts.

The Director of Finance responded to questions from Councillor Palmer:

-           In regard to applying for a disapplication on the DSG higher needs block, it was explained that the Council was trying to be at the forefront of Local Authorities lobbying the Government for better, more realistic funding of this area.

-           In response to Cllr Palmer’s second question, it was requested that this be put into writing to the Director of Finance for a written response.

RESOLVED

1.         To note the provisional revenue and capital outturn for 2020/21 as detailed in the report.

2.         To approve the capital carry forwards in Appendix 3 of the report.

3.         To approve the appropriations to/from reserves at Appendix 4 of the report.

4.         To approve the budget virements as set out in Appendix 5 of the report.

5.         To note the debt write-offs approved by officers in Quarter 4 2020/21as set out in Appendix 6 of the report.

Reasons for decision

A strong financial management framework, including oversight by members and senior management is an essential part of delivering the Council’s priorities and statutory duties.

It is necessary at year end to resolve the treatment of related balance sheet accounts, in light of the experience during the year and knowledge of the Council’s future position and requirements.

Alternative options considered.

The Director of Finance, as Section 151 Officer, has a duty to consider and propose decisions in the best interests of the authority’s finances and that best support delivery of the agreed borough plan outcomes whilst maintaining financial sustainability.

This report of the Director of Finance has addressed these points. Therefore, no other options have been presented.