Agenda item - FINANCIAL OUTTURN REPORT 2017/2018

Agenda item

FINANCIAL OUTTURN REPORT 2017/2018

Report of the Corporate Director (Resources, Environment and Cultural Services), which presents the General Revenue Fund (GRF), Housing Revenue Account (HRA) and Capital Programme outturn positions as at the end of the financial year 2017/18.  These reports were presented and discussed at the Cabinet meeting on the 5 June 2018 and are attached to this summary report.  The Cabinet reports analyse the reasons for changes between the current budget and projected outturn.

Minutes:

Report of the Corporate Director (Resources, Environment and Cultural Services), which presented the General Revenue Fund (GRF), Housing Revenue Account (HRA) and Capital Programme outturn positions as at the end of the financial year 2017/18.  These reports were presented and discussed at the Cabinet meeting on the 5 June 2018 and were attached to the report.  The Cabinet reports analysed the reasons for changes between the current budget and projected outturn.

 

The contribution to the General Fund working balance was £0.470m.  There have been a number of changes to the forecast since the budget was set, which were set out within the attached Revenue Budget Quarter 4 monitoring report.  The Officers explained that with regards to the Capital budget at Quarter 4, the current approved budget was £55.426m which included rolled forward budget from 2016/2017 of £10.597m.  The outturn was £35.516m.  The Cabinet report provided a summary of the outturn on a scheme by scheme basis, a breakdown of the funding to be applied and the extent to which the Council had internally borrowed.  At Quarter 4, the deficit on the HRA decreased by £0.647m from Quarter 3, to £4.157m.  The reasons for the variance between current budget and forecast outturn were detailed in the section 4 of the revenue report together with a summary of the HRA in Appendix D.  Members commented on the variances and stated that these were respectable.

 

Members were advised that the figures were set at the time when the budget was agreed and on occasions projects can take up to two years and therefore this appears as an underspend but the funds would be rolled forward.  Further clarification was provided on £113k Grant Funding, which was favourable and had been moved to earmarked reserves.  Members questioned the monies relating to the Local Plan and Officers advised that these funds would be utilised during 2018/2019 financial year. 

 

Members inquired about the grant funding received as part of the Homelessness Reduction Act to help meet the requirements of the new legislation. It was noted that due to the timing of the grants these funds would be used fully in the coming year.

 

 

 

 

The following points were raised and discussed:

 

·         Projects delayed – Bereavement Services, Property Investment and Splashland. Officers advised that projects were moving forward and some projects going beyond one year.

·         Clarification was sought on the approvals and how these worked in the public sector compared to the private sector accounting.

·         Comments were made in respect of borrowing for the property investment and the proposed reduction in cash flow.

·         Members were advised that there were measures in place to monitor the forecast and the Council was aware of the postponements relating to projects.

·         Officers explained that the Council needed to spend the retained right to buy receipts for replacement of affordable housing.  Following the review during the year it was identified that the Council would need to increase spend during 2017/2018 to ensure that receipts were not returned to the Government.  Members were advised that this spend was partly funded by the retained right to buy receipts with the balance from HRA balances.

 

RESOLVED

 

That the report be noted.

 

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