Issue - meetings

Report of the Financial Services Manager.

The Financial Services Manager introduced a report on Provisional Revenue, Capital and Treasury Management Outturn 2015/16. The report set out information regarding carry forward of capital slippage, as well as a number of issues including provisional outturn and treasury management outturn.

The options, options analysis, including risk assessment and officer preferred options considered by Cabinet were set out in the report as follows:

The City Council had a legal requirement to ensure that its expenditure was fully funded and to produce accounts in accordance with proper accounting practice. In addition, the Prudential Indicators were a statutory requirement linked to the budgetary framework. For these aspects, therefore, there were no alternative options for Cabinet to consider. Cabinet had been asked to endorse certain actions taken by the Chief Officer (Resources), to consider whether it had sufficient information to do so or whether it required any further justification.  

The report had requested that Cabinet considered a number of revenue overspending, capital slippage and other budget adjustment matters. The framework for considering these was set out in the report but basically Cabinet had been asked to:

·         Approve any number of items / requests, in full or in part.

·         Refuse various requests and if commitments have already need incurred, require alternative funding options to be identified. Cabinet should note, however, that this may impact on other areas of service delivery.

·         Request further information regarding them, if appropriate.

On the assumption that the Council continued to support its previously approved spending plans, then the Officer preferred options were to approve the capital slippage requests.

Although the Council’s General Fund budget and associated Government funding reduced again in 2015/16, it continued to manage the financial pressure well, and had again improved its overall financial standing as at 31st March 2016. Similarly the HRA’s standing was sound. Whilst net revenue underspends were experienced in both the General Fund and HRA, their scale was lower than in previous years, perhaps reflecting the much tighter financial environment within which the Council was working. Although various actions had been outlined in the report, there were no wholly new matters arising that had not previously been reported or highlighted in some form, and this could give some comfort with regard to the Council’s financial planning and monitoring arrangements. This was especially so, given that local government finance appeared to be getting more complex. It would be important that capacity was in place to address the various actions highlighted, however, as this was becoming increasingly difficult given the resource pressures that existed.

The resolution of Cabinet with regard to this matter was submitted as an Appendix to the report for Members’ information.

Members went on to ask a number of questions relating to surpluses and deficits, Business Rates and the Canal Corridor North, appeals provision, Housing Benefit overpayments, depreciation and impairment of fixed assets, and pensions.

Resolved:

(1)       That the report be noted.

(2)          That Business Rates and appeals provision be summarised as part of the Quarter 1 Financial Monitoring.