Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (copy enclosed) on the final revenue outturn position for 2014/15 and proposed treatment of reserves and balances.

RESOLVED that Cabinet notes the final revenue outturn position for 2014/15 and approves the proposed treatment of reserves and balances as detailed in the report and Appendices 1 and 2 attached to the report.

Councillor Julian Thompson-Hill presented the report on the final revenue outturn position for 2014/15 and proposed treatment of reserves and balances.

Members were guided through the detail of the report and appendices.  In brief the overall outturn position showed an underspend against the approved budget which, together with a better than forecast council tax yield, strengthened the Council’s financial position.  Consequently it was possible to make recommendations for services to carry forward balances and make transfers to specific reserves that would assist in addressing future financial pressures and meet the cash commitments required to deliver the Corporate Plan.  The final position on service and corporate budgets was an underspend of £1.075m which was 0.57% of the net revenue budget.

During consideration of the report the following matters were raised –

·         the reasoning behind the creation of specific reserves was explained, particularly in social care in order to accommodate peaks and troughs in demand for care packages and placements.  With regard to Supporting People, this reserve had been created in order to mitigate the threatened future removal of the Supporting People Grant by Welsh Government – assurances were provided that reserves were reviewed on a regular basis

·         grants received by the Council at the end of the financial year were initially allocated to Revenue Grants Unapplied before being processed and reallocated to individual services – there was flexibility during the year and some grants had been reallocated earlier in the year

·         it was noted that earmarked reserves had been considered as part of the budget workshops and that they were regularly reassessed and reviewed on an annual basis.  In order for comparisons to be made with previous years Councillor Eryl Williams asked for a more detailed report showing both historical figures and future projections with a view to identifying trends

·         work would soon be undertaken to review the Council’s reserves policy following the requirement that all Welsh local authorities publish details of their treatment of reserves in a manner that could be more easily understood – it was suggested that Welsh Government should also be more open and transparent about their reserves and that the issue be raised with them when the opportunity arose

·         in terms of funding for the Corporate Plan it was confirmed that based on current assumptions it was affordable and deliverable – any changes to those assumptions would require a further review and it was recognised that the Council was not in overall control over all elements within the plan

·         with regard to the schools balances in deficit assurances were provided that each school had a financial recovery plan in place.

RESOLVED that Cabinet notes the final revenue outturn position for 2014/15 and approves the proposed treatment of reserves and balances as detailed in the report and Appendices 1 and 2 attached to the report.