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Issue - meetings
Final Accounts 2019/2020
Meeting: 02/11/2020 - Cabinet (Item 285)
285 Final Accounts 2019/2020 PDF 211 KB
(Peter Grace, Chief Finance Officer)
Additional documents:
Decision:
1. Cabinet review the revenue and capital outturn positions for 2019/20.
2. That the 2019-20 outturn position, along with the revised estimates for 2020/21 be taken into account when preparing the 2021/22 budget.
3. Cabinet review the achievement of Priority Income and Efficiency Review (PIER) savings for 2019/20.
Minutes:
The Chief Finance Officer presented a report on the outturn of the last financial year, ending in March 2020.
The financial landscape has changed dramatically from last year and continues to change as we move through this year. It is important to understand last year’s closing position given the financial impacts occurring this year as a result of COVID-19. The report provides a starting point to understand our reserves position in particular and to help identify ongoing savings that will need to be made in current and future years. Any underspends in the year will be helpful but it is the ongoing savings that will be achieved which helps balance the budget for future years.
The audit of the final accounts, being carried out by external auditors, Grant Thornton, has been delayed this year. The final accounts themselves are meant to be presented to the Audit Committee on the revised date of November 12th. Unfortunately, Grant Thornton will not be in a position to give a view on the accounts by this date, mainly as a direct result of COVID-19. The Council’s accounts remain in draft format and could be subject to change.
Currently, it looks like it was a good year, as the deficit of £1.598m was reduced from the £1.798m that was predicted in February 2020 – a reduction of £200,000. The big variations are identified in the appendices; of particular note are those in respect of street cleaning, waste and grounds maintenance. These areas need to be looked at to see if they can provide savings in the future. Whilst the report identifies numerous variations there is a lot more work to be carried out in order to set budgets for future years.
There remain uncertainties around the future of non-domestic rate income and whether the appeals provision remains sufficient given the significant payments being made. Councillor Peter Chowney highlighted the level of savings being achieved and the Priority Income and Expenditure Review (PIER) savings in particular – as detailed in the appendices.
Councillor Chowney proposed approval of the recommendations, seconded by Councillor Rogers.
RESOLVED (unanimously) that:
1. Cabinet review the revenue and capital outturn positions for 2019/20.
2. That the 2019-20 outturn position, along with the revised estimates for 2020/21 be taken into account when preparing the 2021/22 budget.
3. Cabinet review the achievement of Priority Income and Efficiency Review (PIER) savings for 2019/20.
Reasons:
Compliance with statutory requirements and good practice. The Council is accountable for the use of public money and continuously seeks to improve Value for Money.
The outturn position informs the budget setting process. Where there are under or overspends the reasons behind these are investigated with a view to reallocating resources to meet priorities.
The 2016/17 Audit Completion Report from the council’s external auditors (BDO at the time) recommended that management report on the achievement of PIER savings following their implementation.
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