Agenda item
FINANCE REPORT (2020/21 FINANCIAL OUTTURN)
- Meeting of Cabinet, Tuesday, 25 May 2021 10.00 am (Item 7.)
- View the declarations of interest for item 7.
To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the final revenue position for 2020/21 and proposed treatment of reserves and balances.
Decision:
RESOLVED that Cabinet –
(a) notes the final revenue
outturn position for 2020/21;
(b) approves the proposed
treatment of reserves and balances as described in the report and detailed in
Appendices 1, 2 and 3, and
(c) notes the details of
transfers to and from Earmarked Reserves as set out in Appendix 4.
Minutes:
Councillor Julian Thompson-Hill
presented the report on the final revenue outturn position for 2020/21 and
proposed treatment of reserves and balances.
Members were guided through the
detail of the report and appendices. In
brief the final outturn position on service and corporate budgets (including
schools underspend of £7.058m) was an underspend of
£9.457m. Details of the 2020/21 budget
service savings and efficiencies required had been provided (£4.448m). The impact of coronavirus was highlighted and
the significant grant funding received from Welsh Government – £19m had been
received by the end of the financial year with the assumption that the final
grant claims (£2.7m) would be paid in full.
Other areas to note included an overall school balance to be carried
forward of £5.670m (an increase of £7.058m on deficit balances brought forward
into 2020/21 of £1.388m) with much of that funding to be used in 2021/22 to
recover from the impact of Covid-19. Key
elements of the underspend in corporate budgets
(£1.874m) were highlighted which allowed services with commitments going into
2021/22 to put forward proposals to carry forward their underspend to cover
those costs and also to increase the Budget Mitigation Reserve. Given the overall position within services
and the availability of corporate funds, it was proposed that services carry
forward the net underspends listed as committed service balances to help
deliver the 2021/22 budget strategy and meet existing commitments. Reference was also made to the transfers to
and from Earmarked Reserves.
The Head of Finance added that the
report had been brought forward earlier to achieve the 31 May close down date
and for Cabinet to approve the treatment of reserves and balances prior to
consideration of the Annual Performance Report at Governance and Audit
Committee. He highlighted that, whilst
the figures looked high, the two big movements related to school balances and
capital schemes.
The following issues were raised
during the ensuing debate –
·
reference was made to
the impact on school balances over the last year with most schools showing
positive balances. Councillor Huw
Hilditch-Roberts responded to questions regarding Christ the Word Catholic
School and explained the reasoning behind the deficit balance, which was as
expected given the new school had started with a zero balance and payments were
made in arrears, and the subsequent impact of increased pupil numbers. Consequently there was no cause for concern
with projections that the school would show a positive balance of £584k by year
3. The system in place for assisting
schools in financial difficulty was further explained including the production
of financial recovery plans which had proved extremely effective. Further assurances were provided regarding
the excellent communication with schools which enabled early identification of
issues or potential issues of concern and for the council to work with schools
to resolve them
·
in response to a question from Councillor Bobby
Feeley regarding future funding availability for businesses continuing to
struggle financially, the Head of Finance confirmed that Welsh Government were
in the process of finalising a new scheme targeted at businesses which would be
administered via Planning and Public Protection Services and supported by the
Revenues and Benefits Team.
Cabinet paid tribute to the work
of finance officers in responding to the challenges faced during an extremely
difficult year and in the general financial management which also gave members
confidence that the council’s finances were secure and effectively
managed. The Leader also referred to the
positive collaborative working between the Welsh Government and WLGA and
regular meetings with the Minister for Local Government where there was recognition
for the work carried out by local authorities and the challenges faced. It was hoped that positive relationship and
dialogue would continue. Councillor
Julian Thompson-Hill also highlighted the significant financial support
provided from both UK and Welsh Governments, without which the council’s
financial position would have been very different.
RESOLVED that Cabinet –
(a) notes
the final revenue outturn position for 2020/21;
(b) approves the proposed
treatment of reserves and balances as described in the report and detailed in
Appendices 1, 2 and 3, and
(c) notes
the details of transfers to and from Earmarked Reserves as set out in Appendix
4.
Supporting documents:
- FINANCE REPORT (FINANCIAL OUTTURN), item 7. PDF 147 KB
- FINANCE REPORT - Appendix 1 Summary Position, item 7. PDF 196 KB
- FINANCE REPORT - Appendix 2 Summary of Service Commitments, item 7. PDF 216 KB
- FINANCE REPORT - Appendix 3 School Balances, item 7. PDF 213 KB
- FINANCE REPORT - Appendix 4 Earmarked Reserves Summary, item 7. PDF 438 KB