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 2019/20.

The general fund revenue outturn is a surplus of £0.2 million for the year. Consequentially this means that the council has successfully delivered the outturn within the financial parameters of the original 2019/20 Budget set by the Shadow Authority and without drawing down on the financial resilience reserves set aside to manage the high level of uncertainty in the first year of the new council.

This is an improved position compared with the anticipated overspend leading to a draw on reserves of £2.7 million predicted at quarter three. The improved position overall is generally from work concluded in the final quarter to establish the opening balance sheet of BCP Council including the position in relation to inherited debt. The finally agreed position, coupled with a full review of all legacy council balance sheet items, has generated £3 million of favourable one-off variances to balance the annual position.

The financial cost of the Covid-19 public health emergency has been significant in the final quarter with an estimated £3.5 million impact from lost revenue, particularly from carparking, and in reflecting the longer-term concerns for the local economy. Other net favourable variances within directorate services have largely offset these pressures.

It is proposed the surplus for the year in added to the financial resilience reserve.

RESOLVED that Cabinet:-

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

(b)           agree the capital virements in paragraph 84 of the report.

RECOMMENDED that Council:-

(c)           agree the capital virements in paragraph 85 of the report.

Voting: Unanimous

Portfolio Holder: Finance

Reasons

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 facilitate the implementation of a strong and active culture of financial management within the council by identifying when prompt management action is needed to avoid an adverse impact on future service delivery or the achievement of future corporate objectives.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

Cabinet were advised that this 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 2019/20. In relation to this Cabinet were advised the general fund revenue outturn is a surplus of £0.2 million for the year, and that consequentially this means that the council has successfully delivered the outturn within the financial parameters of the original 2019/20 Budget set by the Shadow Authority and without drawing down on the financial resilience reserves set aside to manage the high level of uncertainty in the first year of the new council.

Cabinet were further advised that this was an improved position compared with the anticipated overspend leading to a draw on reserves of £2.7 million predicted at quarter three, and that the improved position overall is generally from work concluded in the final quarter to establish the opening balance sheet of BCP Council including the position in relation to inherited debt. The finally agreed position, coupled with a full review of all legacy council balance sheet items, has generated £3 million of favourable one-off variances to balance the annual position.

With regards to the financial cost of the Covid-19 Cabinet were informed that the public health emergency had been significant in the final quarter with an estimated £3.5 million impact from lost revenue, particularly from carparking, and in reflecting the longer-term concerns for the local economy, but that other net favourable variances within directorate services had largely offset these pressures. In concluding Cabinet were advised that it was proposed that the surplus for the year is added to the financial resilience reserve.

Cabinet praised the work of the Officers and the Portfolio Holder in bringing this report together.

RESOLVED that Cabinet:-

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

(b)          agree the capital virements in paragraph 84 of the report.

RECOMMENDED that Council:-

(c)          agree the capital virements in paragraph 85 of the report.

Voting: Unanimous

Portfolio Holder: Finance