Agenda item

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Director of Corporate Services (report published on 14 September 2020)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Finance Officer that provided summary information regarding the provisional outturn for 2019/20, including treasury management. It also set out information regarding the carry forward of capital slippage and other matters for Members’ consideration.

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

The Council has a legal requirement to ensure that its expenditure is fully funded and to produce accounts in accordance with proper accounting practice. In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework. For these aspects, therefore, there are no alternative options for Cabinet to consider. Members are being asked to endorse certain actions taken by the Chief Finance Officer, and Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification.

The report requests Cabinet to consider a number of revenue overspending, capital slippage and other budget adjustment matters. The framework for considering these is set out in the report but basically Cabinet may:

o Endorse any number of the items / requests, in full or part.

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

o Request further information regarding them, if appropriate.

The Officer preferred options are as set out in the recommendations, on the assumption that Members continue to support their previously approved spending plans.

Despite the financial challenges faced by the Council and the associated reductions in Government funding, the financial standing of the Council remains relatively healthy as at 31 March 2020. Officers are undertaking several pieces of work to understanding the areas of significant variance and where appropriate undertake corrective action going forward. This will lead to further improvements to the Council’s budget setting and financial monitoring processes.

Councillor Whitehead proposed, seconded by Councillor Hanson:-

“That the recommendations, as set out in the report, be approved and that recommendation (3) be revised to read ‘Appendix 7’ rather than ‘Appendix 8.”

Councillors then voted:-

Resolved unanimously:

(1)             That the provisional outturn for 2019/20 be endorsed, including the transfers to and from Reserves and Balances actioned by the Chief Finance Officer, as set out in 5.1 and Appendix 5 of the report.

(2)             That Cabinet approve the treatment of year end overspends and endorse the do-nothing approach in-light of the current pandemic situation.

(3)             That the requests for capital slippage and the adjustments to reflect accelerated capital spending on projects as set out at Appendix 7 of the report be endorsed, with the Capital Programme being updated accordingly.

(4)             That the Annual Treasury Management report and Prudential Indicators as set out at Appendix 2 of the report, be noted and referred on to Council for information.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The Outturn and Statement of Accounts report on all the financial resources generated and/or used by the Council in providing services or undertaking other activities under the Policy Framework.