Issue - meetings

This report provides details of the final financial outturn for the revenue account, capital programme, reserves, and the housing revenue account (HRA) for the financial year 2020/21. It also includes a small number of proposed virements to the budget for 2021/22 for new grants awarded since the budget was set in February. 

The general fund revenue outturn is a surplus of £5.1 million for the year which it is proposed be added to the earmarked medium term financial plan (MTFP) mitigation reserve to manage financial risks over this timeframe. This period includes major projects to transform how the council operates and to regenerate the area. This is an improved position compared with quarter three from work concluded in the final quarter to make the best use of all available grants to support unbudgeted Covid expenditure within services, reductions in cost pressures, most notably within adult social care, and significant income streams performing better than expected.   

RESOLVED that Cabinet: -

(a)           noted the year-end financial outturn positions achieved including revenue, capital, reserves and for the HRA;

(b)           accepted the 2021/22 awards from Public Health England for the drug & alcohol homeless grant of £0.688 million and the criminal justice system grant of £0.414 million and delegates authority to the directors of adult social care and housing to implement the programmes of revenue expenditure as set out in paragraphs 92 to 101; and

(c)           agreed the capital virement in paragraph 153.

RECOMMENDED that Council: -

(a)           agree the transfer of the £5.1 million surplus for the year to the MTFP mitigation reserve;

(b)           agree that the contain outbreak management fund (COMF) allocation for 2021/22 of £2.533 million is retained in a contingency to manage any outbreaks that may occur later in the year, as recommended by the director of public health as set out in paragraph83; and

(c)           agree the capital virements in paragraph 154.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reason

To comply with accounting codes of practice and best practice which requires councils to report their end of year financial position compared with the budget of the authority.

To comply with the council’s financial regulations regarding budget virements and the acceptance of new grants.

The Leader presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was informed that the report provided details of the final financial outturn for the revenue account, capital programme, reserves, and the housing revenue account (HRA) for the financial year 2020/21, and that it also included a small number of proposed virements to the budget for 2021/22 for new grants awarded since the budget was set in February. 

In relation to this Cabinet was advised that the general fund revenue outturn is a surplus of £5.1 million for the year which it is proposed be added to the earmarked medium term financial plan (MTFP) mitigation reserve to manage financial risks over this timeframe and that this period included major projects to transform how the council operates and to regenerate the area.

Further to this Cabinet was advised that this is an improved position compared with quarter three from work concluded in the final quarter to make the best use of all available grants to support unbudgeted Covid expenditure within services, reductions in cost pressures, most notably within adult social care, and significant income streams performing better than expected.  

RESOLVED that Cabinet: -

(a)           noted the year-end financial outturn positions achieved including revenue, capital, reserves and for the HRA;

(b)           accepted the 2021/22 awards from Public Health England for the drug & alcohol homeless grant of £0.688 million and the criminal justice system grant of £0.414 million and delegates authority to the directors of adult social care and housing to implement the programmes of revenue expenditure as set out in paragraphs 92 to 101; and

(c)           agreed the capital virement in paragraph 153.

RECOMMENDED that Council: -

(a)           agree the transfer of the £5.1 million surplus for the year to the MTFP mitigation reserve;

(b)           agree that the contain outbreak management fund (COMF) allocation for 2021/22 of £2.533 million is retained in a contingency to manage any outbreaks that may occur later in the year, as recommended by the director of public health as set out in paragraph83; and

(c)           agree the capital virements in paragraph 154.

Voting: Unanimous

Portfolio Holder: Leader of the Council

To consider the following Finance and Transformation related reports scheduled for Cabinet consideration on 23 June 2021:

·       Financial Outturn Report 2020/21

·       Medium Term Financial Plan (MTFP) Update

The O&S Board is asked to scrutinise the reports and make recommendations to Cabinet as appropriate.

Cabinet member invited to attend for this item: Councillor D Mellor, Leader of the Council and Portfolio Holder for Finance and Transformation.

The Cabinet report for this item is included with the agenda for consideration by the Overview and Scrutiny Board.

Financial Outturn Report 2020/21 – The Leader of the Council and Portfolio Holder for Transformation and Finance introduced the report. A copy of which had been circulated to Board members and a copy of which can be found at Appendix A to these minutes in the minute book. The Leader outlined the key points from the report and the Board discussed a number of issues including:

·     Potential problems for the future in adult social care which were not being provided for. There was a changing profile of risk, the cost of expenditure going forward would be different from that seen recently. The Portfolio Holder indicated that the Council was in better position to deal with issues coming forward and further detail was included within the Medium Term Financial Plan Paper. The Chief Financial Officer advised that with the impact of Covid it was quite difficult to see in comparison to what would have been spent originally.

·     Part of the reason Council was in a good investment position was that the previous administration had provided sound foundation. The Leader noted that the previous administration had been more cautious, and the political preference of the current administration was that it was a good time to invest.

·     The previous year was unprecedented due to Covid. The impact of grant funding had meant a positive surplus at year end. However, there was lots of uncertainty around a number of issues, e.g. car parking. Board Members expressed their hope that this was being monitored and that future plans were being implemented for uncertain times. The investment strategy for the Council was part of the big plan.

·     The solutions that were being planned to deal with the overspend in care home placements as this was an issue which would continue. Adult Social Care was being more interventionalist in the market and technology would also be part of the solution. The Care Homes and Older People Strategy would be taken through Cabinet in September. Investment was also being made to help people live in their own homes for longer.

·     It was noted that the core part of the Poole Civic Centre would be retained. The Council would be looking to retain ownership as well. There were no plans to dispose of either asset.

·     East Cliff Lift was not included in the Town Fund spending as outlined in the report. It was suggested that this could be looked into further via the Futures Fund.

·     In response to a query the Chief Financial Officer advised that in relation to the collection of council tax and business rates, whatever the Council precepts for the year, this was received from the collection fund. However, this could put the collection fund into deficit which would then be adjusted.  It was confirmed that the £40 million referenced in the report was part of the Council’s share of relief, this would need to be paid back into the collection fund to account for deficit. As well as the deficit caused by retail relief,  ...  view the full minutes text for item 27