Agenda item

The report of the Director – Finance and Corporate Services is attached.

It was RESOLVED that Cabinet:

a)           notes the 2021/22 revenue position and efficiencies identified in Table 1, the variances in Table 2 and approves the carry forwards and appropriations to reserves in Appendix E;

b)           approves the other changes to the earmarked reserves as set out at Appendix B;

c)           notes the re-profiled position on capital and approves the capital carry forwards outlined in Appendix C; and

d)           notes the update on the Special Expenses outturn at paragraph 4.12 and in Appendix D.

The Portfolio Holder for Finance and Customer Access, Councillor Moore presented the report of the Director – Finance and Corporate Services outlining the year-end financial outturn position for 2021/22, linked to the closure of the accounts process and previous financial update reports.

Councillor Moore referred to the very difficult year and welcomed this good set of accounts, which showed a good financial position, with a surplus of £211k, having taken into account movements to reserves and the need to carry forward for various capital investments. 

Councillor Moore referred to Table 1 in the report and advised that the balancing and reconciling of all of those funds had added additional complexity to the closing of accounts process.  Cabinet was advised that the transfer amounts appeared large, and they would be placed in the Collection Fund Reserve, with the balance to be released over the next few years, to offset the deficit of £3.2m arising in later years.  Councillor Moore referred to further reserve transfers, including the vehicle replacement fund, utility inflation, and possible future pay increases.  Councillor Moore referred to Table 2 in the report, which listed both the main adverse and favourable variances, details of which were highlighted in the report.   

Cabinet was reminded that having a well-managed budget enabled the Council to make the most of any opportunities and manage downside risks, including using £845k to cover various schemes and initiatives, details of which were highlighted in Appendix E of the report.  Future years would be challenging and having a sound financial position would enable the Council to deal with future challenges.

In conclusion, Councillor Moore referred to the financial pressures being faced by all councils and advised that Rushcliffe was not immune to those pressures; however, the Council had reserves to support in the short term, no debt, and a positive Transformation Programme to help mitigate risk and enable sensible management, to ensure that the Council could still deliver excellent service to its residents.  To reach this financial position took a great deal of work and Councillor Moore thanked the Director – Finance and Corporate Services and the Service Manager - Finance for producing an excellent set of accounts.

In seconding the recommendation, Councillor Edyvean referred to two capital  projects, the Bingham Hub, and the Crematorium, where money had been deferred into next year’s budget, and reminded Cabinet that although there were slight variations in expenditure, both projects would be delivered on budget and on time.  Councillor Edyvean referred to the recent decision to move Streetwise in house, with promised improvements and savings, and stated that it would be important to demonstrate that those outcomes were being achieved and looked forward to seeing that.

The Leader reiterated that the Council remained debt free, which give it the resilience, particularly when entering such challenging times, having to absorb those variances, including the changes to income profiles, and increased energy and employment costs associated with rising inflation.  The Leader commented that some other councils would struggle during such difficult times, and it was a real testament to the Service Manager - Finance and her team that each quarterly report highlighted what robust and resilient finances the Council had.

Councillor Upton stated that since joining the Council in 2015, he had read many financial reports, which had always been positive and the Council should be very proud of that, particularly given the difficult circumstances that have been faced, and the uncertainty ahead.  Councillor Upton considered that going forward, the Council should be determined to ring-fence its current financial strengths ,against any future efforts to change local government organisation.

It was RESOLVED that Cabinet:

a)           notes the 2021/22 revenue position and efficiencies identified in Table 1, the variances in Table 2 and approves the carry forwards and appropriations to reserves in Appendix E;

b)           approves the other changes to the earmarked reserves as set out at Appendix B;

c)           notes the re-profiled position on capital and approves the capital carry forwards outlined in Appendix C; and

d)           notes the update on the Special Expenses outturn at paragraph 4.12 and in Appendix D.