Agenda item

This report shows the year end position for the financial year ending on 31 March 2022 for both revenue and capital and makes the following recommendations:-

•           to carry forward to 2022/23 certain unspent revenue budgets and;

•           to re-phase those capital budgets that require completion in 2022/23

The report focuses on the variation between the latest agreed budget and the final expenditure and income for the financial year.   This comparison provides an indication of the accuracy and robustness of financial control and the achievement of the strategic objective to manage resources to deliver the Council’s strategic priorities and service needs.

This report shows the year end position for the financial year ending on 31 March 2022 for both revenue and capital and makes the following recommendations:-

•           to carry forward to 2022/23 certain unspent revenue budgets and;

•           to rephase those capital budgets that require completion in 2022/23

The report focused on the variation between the latest agreed budget and the final expenditure and income for the financial year.   This comparison provides an indication of the accuracy and robustness of financial control and the achievement of the strategic objective to manage resources to deliver the Council’s strategic priorities and service needs.

The Head of Finance advised that the Council do have a significant underspend on revenue of £1.4m with a carry forward request of £602,000 which would leave a surplus of £786,000 to return to balances at year end subject to the recommendations being agreed.  A couple of points were highlighted to Members which had contributed towards that position.  We had some unplanned housing grant of £127,000 and also recycling credits of £147,000 which were received from County very late in the year.  We also have an underspend on our Leisure contract which includes £96,000 of additional funding which was agreed in the year to support the Leisure provider which they did not need in 2021/22 but we do need to carry forward to support them in 2022/23.  On capital there was a significant carry forward request of just over £11m but highlighted that the majority of that (£10.47m) related to investment in Pre-Emption sites.  We put that into the budget in February anticipating that we would be able to complete on the purchase of the land by 31 March but unfortunately that had not been possible due to the legal process which needs to be progressed.  So that budget had been requested to carry forward into 2022/23.

A Member said spending less than budgeted was not normally a bad thing and it had been explained the reasons for the Leisure underspend but noted the underspend for corporate climate change was significant as well and wanted to understand the constraints that the Council face.  When you asking to defer amounts into the next year to what extent are they necessary as opposed as going into savings.  The Member also picked up on a lot of funds going into agency workers for waste management.

The Director of Community and Environment Services advised on waste management we have had a lot of vacancies and it had been very difficult to employ people on a permanent basis particularly HGV drivers and loaders as there are other opportunities particularly during the pandemic when there has been a lot more delivery activity and more demand for drivers and we have had difficulty filling posts.  We have reviewed salaries and have applied bonuses and as from the beginning of July we have another HGV driver and 3 more loaders due to start with us and are just going through the DBS checks.  This will get us closer to be being fully staffed again.  On some of the reasons why the project work had not happened had been due to the pandemic as staff have been ill or have been seconded to other work in the Council but we are looking to get the work back on track in the coming financial year which was why some of the money is being carried forward. 

The Head of Finance said on climate change there was more detail provided in Appendix 1 of the report which highlighted why there had been delays.  In terms of the carry forwards which had been requested on the whole that was work which had already commenced and if we don’t carry that funding forward those projects would need to cease and a decision had been made to complete the project and deliver on the outcome.  We will do a Q1 report to the Committee in September and with inflation being where it is we are already starting to look at the pressures on the budget and the fact that we do have an underspend going into balances at year end is positive in the light of the pressures to the budget during 2022/23 and onwards.

In response to a question on the salary contingency budget the Head of Finance advised that this budget was there to fund the pay award. We had put 2% aside but received 1.75% pay award so there is a balance left.  Details had remained in the budget to make it more transparent.  It is held as a contingency as it is a guess at the time of the setting the budget and is held centrally instead of distributing out to services so that we have more control.

Councillor Chris Lloyd moved the recommendations and wished to thank officers for the report and with all the things that had happened it had made it quite complex, seconded by Councillor Sarah Nelmes.

On being put to the Committee the motion was declared CARRIED the voting being 8 For, 0 Against and 4 Abstentions.

RECOMMEND:

That the favourable revenue outturn variance after carry forwards of (£785,638) to be noted.

That the capital outturn as summarised in paragraph 2.6 and Appendix 3 be noted.

To approve to carry forward the unspent service budgets from 2021/22 to 2022/23 which total £601,970 to enable completion of projects as detailed at Appendix 2.

To approve the rephasing of capital projects from 2021/22 to 2022/23 which total £11,336,915 as detailed at Appendix 4.