Agenda item

Report of the Interim Treasurer (DSFRA/21/16) attached.

The Authority considered a report of the Interim Treasurer (DSFRA/21/16) on the draft financial outturn position for 2020-21 against agreed financial targets.

In particular, outlined the draft outturn spending position against the 2020-21 revenue budget with explanations of the major variations. It was indicated that gross spending would be £1.960m below budget (2.54% of the total budget). Net spending (before transfers to earmarked reserves noted in this report) would be £9.745m below budget (12.61% of the total budget). Of this amount, £7.412m was associated with additional grants received, making the operational underspend £2.333m (3.02% of the total budget).

There had been some significant movements against the original budget (set in February 2020) as a result of organisational focus on the COVID pandemic response, with opportunities taken during the year to fund reserve items such as the full rollout of the Payment for Availability system.

Significant savings had been utilised either within the year or as part of the year end process within officer delegations, with the balance providing an opportunity to invest in the future via the capital reserve. A large amount of additional grant income was accounted for in 2020-21 which had impacted on the year-end position.

In relation to capital, the Authority had initially set its capital programme 2020-21 at £10.7m at its budget meeting on 18 February 2020 (Minute DSFRA/38(b) refers). This had subsequently been revised in-year to £11.3m as a result of timing differences in spending from the previous year, albeit that this increase did not represent any increase to the previously agreed borrowing limit. Capital spending of £4.582m was reported against the final capital programme, resulting from:

·       an unspent programme of £6.715m, of which £6.316m related to timing differences to be carried forward to 2021-22; and

·       £0.399m savings.

The Authority’s reserves position as at 31 March 2021 was £46.348m (subject to approval of the recommendations as set out in the report).

The report indicated that none of the prudential indicators associated with the 2020-21 budget had been breached albeit that the outturn as set out in the report was subject to external audit of the Authority’s accounts.

RESOLVED

       (a).       that the provisional underspend against the 2020-21 revenue budget of £1.876m be transferred to the Reserve for Capital Funding;

       (b).       that, subject to (a) above, the following be noted:

(i).    the draft position in respect of the 2020-21 Revenue and Capital Outturn position, as indicated in report DSFRA/21/16; and

(ii).   that the net underspend figure of £1.876m was after

A.      the transfer of £3.281m to reserves as set out in Appendix C to the report; and

B.      a transfer of £5.601m to the Grants Unapplied Reserve as required under International Financial Reporting Standards (IFRS) and relating to grants received during the financial year but not utilised as set out in Appendix D to the report; and

       (c).       that, subject to b(ii)B above, a virement of £2.846m relating to National Non-Domestic Rates (NNDR) additional reliefs be approved within the 2021-22 budget, in line with accounting requirements;

       (d).       that, in accordance with capital control legislation, the following use of capital finance resource be determined:

(i).    use of £1.528m of external borrowing from previous years to fund the capital programme;

(ii).   that £2.674m be capitalised and funded from revenue contributions to capital spending, either directly from the 2020-21 revenue budget or from balances in earmarked reserves; and

(iii).  that £0.380m capital receipts be utilised to fund the capital programme.