Financial Monitoring Out-turn 2018-19
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Financial Monitoring Out-turn
Councillor Janette Williamson introduced a report which detailed the out-turn for 2018/19 and concluded the reporting to Cabinet for the 2018/19 financial year. Attached to the report were separate appendices for Revenue (including details of the reserves), Capital (including resources used to fund the Programme) and the Collection Summary (including Council Tax, Business Rates and Sundry Debts).
Although a net underspend of £0.6m had been achieved, she outlined the continuing pressures in the various directorates where overspends had occurred, which in 2018/19 had been mitigated by various measures. However, in 2019/20, these measures would not be available to address any potential overspends.
Cabinet Members thanked everyone involved for maintaining services and balancing the budget whilst also achieving savings under increased pressure on Council budgets.
Councillor Tony Jones expressed the view that the government should pause the cessation of the Revenue Support Grant to local authorities, due to come into effect in 2020, whilst undertaking a full spending review.
Councillor Tom Usher commented upon the government’s refusal to fund the crisis in social care head on and that it was left to the council to fund these costs, whilst maintaining financial responsibility.
On a motion by Councillor Janette Williamson, seconded by Councillor it was -
Resolved – That
(a) the revenue out-turn indicated a variance of £0.6 million of expenditure less than budget in 2018/19;
(b) the General Fund Balances at 31 March 2019 of £10.7 million, be noted; and
(c) the Earmarked Reserves totalling £59.5 million (£85.5 million subject to External Audit) be confirmed.
(a) The additional re-profiling of £5.0 million from 2018/19 to 2019/20 be noted;
(b) The financing of the Programme for 2018/19 be noted; and
(c) The Programme for 2019/20 and beyond be kept under review to ensure it is realistic and deliverable.
(3) Collection Summary
(a) The decrease in Council Tax in-year collection rate from 95.5% in 2017/18 to 94.8% in 2018/19 be noted;
(b) Increase in cash collected for Council Tax 2018/19 of £9.4m;
(c) The Business Rates collection rate for 2018/19 of 97.9%; the same collection rate of 97.9% as attained in 2017/18;
(d) The Sundry Debt arrears figure as at 31 March 2019 decreased by £3 million to £26 million; and
(e) That the sundry debts for Adults Social Services and Other Directorates detailed in the report be written-off against the Provision for Bad Debts.
Reasons for decision: Local authorities have to produce an Annual Statement of Accounts which demonstrates the financial performance of the Council for the year and the financial position at the end of the period. The full Statement is approved by Audit & Risk Management Committee on behalf of the Council. This report informs Cabinet of the key elements.
The Collection Summary provides details on income collection performance and any sums which are deemed irrecoverable need to be written off in accordance with the authorisation processes set out in the Council Constitution.
Report author: Chris Kelly
Publication date: 26/07/2019
Date of decision: 22/07/2019
Decided at meeting: 22/07/2019 - Cabinet
Effective from: 03/08/2019