Agenda item

Report of the Treasurer (DSFRA/17/14) attached.

The Authority considered a report of the Treasurer (DSFRA/17/14) on the draft financial outturn position for 2016-17 against agreed financial targets.

For revenue, the report identified an underspend of £2.193m (2.96%) (net of transfers to earmarked reserves) against the approved revenue budget.  This significant saving was largely attributable to continued implementation of the Corporate Plan changes agreed in 2013 together with a strategy for budget-holders to identify in-year savings wherever possible.  The success of the latter initiative had enabled some £2.4m to be removed from the base revenue budget for the current (2017-18) financial year.  Proposals for use of the net underspend were identified in the report.

For capital, the report identified an underspend of £3.665m against a finally approved programme of £6.423m.  Of the underspend, £2.566m was accounted for by timing delays to be carried forward to 2017-18, with the remaining £1.109m being savings. 

RESOLVED

(a).      that utilisation of the provisional underspend of £2.193 (net) against the 2016-17 revenue budget to fund the following transfers to Earmarked Reserves be approved:

i.      the transfer of £1.780m to an Earmarked Reserve to be utilised to fund Essential Spending Pressures not included in the 2017-18 base budget; and

ii.     the transfer of the remaining £0.413m to the Capital Funding Reserve

(b).      that it be noted that the underspend of £2.193 is net of the following transfers:

i.      £0.281m to the Earmarked Reserve to fund the extension of the Home Fire Safety Pilot, as previously agreed by the Resources Committee at its meeting on 8 February 2017 (Minute RC/16 refers);

ii.     a total of £0.904m comprising

                                        A.    £0.884m to the Grants Unapplied Reserve;

                                        B.    £0.020m to the Direct Funding for Capital Reserve

as required under International Financial Reporting Standards (IFRS) relating to grants received during the financial year in question (2016-17) but not utilised;

iii.    £0.288m to Earmarked Reserves for 2016-17 Budget Carry Forwards to fund planned projects not completed by 31 March 2017;

iv.   £2.641m to the Reserve for Capital Funding; and

v.    £0.064m to fund additional provisions relating to pension liabilities.  

(c).      that, following a review of Earmarked Reserve requirements, an amount of £0.036m be transferred from Earmarked Reserves to the General Reserve;

(d).      that a total of £0.230m comprising:

i.      £0.200m from the existing Change and Improvement Ear Marked Reserve; and

ii.     £0.030m from the existing Budget Carry Forwards Ear Marked Reserve

be transferred to a new specific Ear Marked Reserve to fund replacement of the Performance Information Management System (PIMS);

(e).      That, as required by capital control legislation, the following use of capital finance be determined:

i.      £1.992m of external borrowing from previous years be utilised to fund the Capital Programme;

ii.     £0.752m be capitalised and funded from revenue contributions to capital spending, either directly from the 2016-17 revenue budget or from balances in Earmarked Reserves; and

iii.    £0.014m of capital receipts received in-year be used to contribute towards funding the 2016-17 Capital Programme;

(f).       That, subject to (a) to (e) above, the draft outturn position in respect of the 2016-17 Revenue and Capital budgets, as detailed in report DSFRA/17/14, be noted.