Issue - meetings

Cabinet Member: Finance

Forward Plan Ref: 2018/001

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Strategy & Monitoring) Tel: 07584 909518

Report by Director of Finance (CA6).

The purpose of this report is to present and provide commentary on the provisional revenue and capital outturn position for 2017/18 prior to the formal closure of the accounts.

The Cabinet is RECOMMENDED to:

(a)         note the provisional revenue and capital outturn for 2017/18 along with the year-end position on general balances and earmarked reserves as set out in the report;

(b)         note the virements as set out in Annex 2a;

(c)         approve the transfer of over and under spends to general balances as set out in paragraph 12;

(d)         recommend Council to approve the use of £0.1m underspend on Transition fund for open access children’s services which will be transferred to the Budget Priorities Reserve until required as set out in paragraph 13; and

(e)         agree that the surplus on the On-Street Parking Account at the end of the 2017/18 financial year, so far as not applied to particular eligible purposes in accordance with Section 55(4) of the Road Traffic Regulation Act 1984, be carried forward in the account to the 2018/19 financial year as set out in Annex 4.

Recommendations agreed.

Cabinet considered a report that presented and provided commentary on the provisional revenue and capital outturn position for 2017/18 prior to the formal closure of the accounts. Cabinet also had before them revised Annexes 1, 1a, 1b and 1c set out in the addenda to the meeting.

Councillor Phillips, Shadow Cabinet Member for Finance, highlighted the number of underspends and referred to recommendation (c) seeking approval to transfer of under and over spends to general balances. Although accepting the need for reserves to deal with unexpected events there was a current and urgent need for services. Councillor Phillips stated that decisions to move funds to general reserves be on a case by case basis with a far more nuanced approach being taken. Councillor Phillips asked that Cabinet reconsider recommendation (b) relating to the remaining transition fund and asked that the funding be used for open access. Councillor Bartholomew, Cabinet Member for Finance responding to the points raised stated that general balances were crucial to financial flexibility in delivering a balanced budget. He pointed to the result obtained of a 99.8% accuracy against the budget which was an outstanding result. The underspend on the transition fund was to go back to full Council for a decision.

Councillor Bartholomew introduced the contents of the report and thanked the Director of Finance, Katy Jurczyszyn, Emma Greenland and the Finance Team for all their work.

During discussion Cabinet commended a remarkable result particularly given that many of the County Council services were reactive and had to respond to increased demand. Support was expressed for the recommendation to put the underspend on the transition fund into l reserves so that it was available if needed later in the year. Councillor Gray, Cabinet Member for Local Communities explained that with recommendation (d)  the intention was to bring it back to Council with a view to ensuring that the money was available as required to ensure the sustainability of existing provision.

RESOLVED:             to:

(a)         note the provisional revenue and capital outturn for 2017/18 along with the year-end position on general balances and earmarked reserves as set out in the report;

(b)         note the virements as set out in Annex 2a;

(c)          approve the transfer of over and under spends to general balances as set out in paragraph 12;

(d)         recommend Council to approve the use of £0.1m underspend on Transition fund for open access children’s services which will be transferred to the Budget Priorities Reserve until required as set out in paragraph 13; and

(e)         agree that the surplus on the On-Street Parking Account at the end of the 2017/18 financial year, so far as not applied to particular eligible purposes in accordance with Section 55(4) of the Road Traffic Regulation Act 1984, be carried forward in the account to the 2018/19 financial year as set out in Annex 4.