Issue - meetings

To provide an overview of the financial outturn for the year 2021/22 and to seek approval of associated financial decisions related to the end of year accounting processes.

RESOLVED that Cabinet –

(a)    notes the financial outturn position for 2021/22, as set out in the Portfolio Holder’s report and its appendices;

(b)   approves the financing of General Fund capital expenditure for 2021/22, as detailed in Appendix D to the Portfolio Holder’s report;

(c)   approves the movement in uncommitted and earmarked General Fund reserves for 2021/22, as set out in Appendix E to the Portfolio Holder’s report;

(d) notes the requested carry forwards totalling £17.890m (£12.948m Revenue, COVID Funding £1.077m (net) and £3.865m Capital), as as set out in Appendix K to the Portfolio Holder’s report;

(e)   authorises the Section 151 Officer, in consultation with the Portfolio Holder for Corporate Finance and Governance, to approve the carry forwards with the outcome to be reported to Cabinet in September 2022;

(f)    in respect of the HRA, approves the movement on HRA balances for 2021/22 including any commitments set out within Appendices H and/or I to the Portfolio Holder’s report, along with recharges to the HRA from the General fund of £2.543m for the year and the financing of the HRA capital expenditure set out in Appendix I to the Portfolio Holder’s report;

(g)  approves the use of £0.050m from HRA General Balances to meet the cost of additional improvements to the Council’s Housing Repairs and Maintenance system in 2022/23;

(h)   notes the various COVID 19 grant funding amounts set out in Appendix K (ii) to the Portfolio Holder’s report and approves the use of the funding as set out in that same Appendix and main body of the report and authorises the Portfolio Holder for Corporate Finance and Governance to agree further allocations from this funding where it supports the on-going recovery from the COVID19 pandemic;

(i)    approves the overall General Fund Outturn Variance for the year of £0.252m being transferred to the existing contingency budget for further consideration as part of the updated Financial Forecast and Quarter 1 position for 2022/23 that will be presented to Cabinet in September 2022;

(j)    approves the use of £0.900m from the funding received from Local Health Partners to deliver the improvements set out in the Portfolio Holder’s report, and authorises the Corporate Director (Operations and Delivery), in consultation with the Portfolio Holder for Housing, to implement the associated schemes and projects;

(k)   approves an additional exemption from procurement rules to regularise the additional cost of £0.033m to deliver the Octopus Ahoy sculpture trail in 2021/22;

(l)    delegates approval of the identification of the necessary additional funding to support the delivery of the new artificial pitch at Clacton Leisure Centre to the Portfolio Holder for Corporate Finance and Governance; and

(m) authorises the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, to adjust the outturn position for 2021/22 along with any corresponding adjustment to earmarked reserves as a direct result of any recommendations made by the Council’s External Auditor during the course of their audit activities relating to the Council’s 2021/22 accounts.

Cabinet considered a detailed report of the Corporate Finance & Governance Portfolio Holder (A.6) which provided it with an overview of the financial outturn for the year 2021/22 and which sought its approval of associated financial decisions related to the end of year accounting processes.

It was reported that there had been a significant adverse impact on a number of budget areas in 2021/22 some of which would have been highlighted in the quarterly financial performance reports presented to Members earlier in the year. However, a number of further adverse budget issues within Services had only come to light as part of finalising the outturn position for the year. This had had potential major consequences on the Council’s financial position. Although the issues had been accommodated within the overall outturn position for the year, they had significantly reduced the available outturn variance at the end of 2021/22. This had had a ‘knock on’ impact on the ability to respond to significant financial issues the Council faced in 2022/23 and beyond along with the ability to timely invest in its priorities and objectives going forward. A repeat of this situation had to be avoided in 2022/23.

Given the severity of this situation, the Chief Executive had established regular Budget, Performance and Delivery Review meetings with Senior Managers. Assurances around this issue had also considered by the Audit Committee at its meeting on 30 June 2022. Those regular Budget, Performance and Delivery Review meetings would consider the following key issues throughout the year:

·      high level review of the in-year budget position for each Directorate / Department, which needed to draw out any potential financial issues ahead of the associated impact on the budget e.g. potential overspends, underspends and / or other financial issues / pressures;

·      following on from the point above, to promote and oversee any associated decision making / governance processes;

·      to identify financial pressures that might impact on the Council’s long term financial plan;

·      to promote connections / linkages with the recently implemented  Corporate Investment Plan;

·      to review the in-year performance against the Council’s key aims and objectives and other key delivery targets;

·      to identify and oversee any other key governance issues; and

·      set against all of the above, keep under on-going review the level of resources / capacity to meet the various demands on the Council’s departments and services.

Further updates would be presented to Members as part of the quarterly Financial Performance monitoring reports during 2022/23.

Outturn 2021/22

Following the completion of the comprehensive end of year processes, the financial outturn position for 2021/22 had been prepared across the various areas of the budget with a summary of the position set out below:-

 Summary by Key Areas of the Budget