Agenda item

To seek approval of the allocation of the overall 2022/23 General Fund revenue variance.

RESOLVED that -

(a)    the high level Financial Outturn Position set out in this report and the initial favourable General Fund Revenue variance of £3.352m for the year, which is currently held within the Revenue Commitments Reserve be noted;

(b)    £0.240m of the overall favourable variance of £3.352m be used to meet the additional maintenance costs of the new cremators over the associated 10 year maintenance period;

(c)    the remaining favourable variance for the year of £3.112m be retained within the Revenue Commitments Reserve for further consideration during 2023/24;

(d)    the approval of the carry forwards from 2022/23 be delegated to the Portfolio Holder for Corporate Finance and Governance, in consultation with the Section 151 Officer;

(e)    the value of any of carry forwards not subsequently approved be added to the general variance set out in (c) above; and

(f)     the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, be authorised to adjust the outturn position for 2022/23 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 2022/23 accounts.

Cabinet considered a report of the Leader of the Council & Portfolio Holder for Corporate Finance and Governance (A.8), which sought its approval of the allocation of the overall 2022/23 General Fund revenue variance.

The Leader of the Council, acting in his capacity of Portfolio Holder for Corporate Finance and Governance had agreed the overall outturn position for 2022/23 on 10 July 2023, with a high level summary of the General Fund revenue position as set out below:-

The favourable variance for the year of £3.352m was currently being held in the Revenue Commitments Reserve.

Cabinet was made aware of an emerging issue that was likely to have an impact on this overall variance for the year, which related to the Crematorium Replacement Capital Project. In summary, £0.558m of the overall favourable variance of £3.352m above related to the underspend against the associated capital scheme, which was due to the original capital programme incorrectly including the costs of the 10 year maintenance contract associated with the new cremators. Following an associated review, it had been identified that £0.240m of the overall favourable above was required to ‘top up ‘the existing maintenance budget to meet the cost of this on-going contract.

After taking into account the above, the remaining favourable variance was therefore £3.112m.

It was proposed to continue to hold the remaining favourable variance for the year of £3.112m within the Revenues Commitment Reserve and to consider its allocation alongside the Financial Performance Reports later in the year, which would include the development of the financial forecast for 2024/25 and beyond.  This approach would enable future investment to be aligned alongside other key financial decisions associated with delivering options and actions to support the Council’s long-term financial sustainability.

There were also a number of carry forwards that had been requested by Services which totalled £25.703m (£15.779m relating to revenue budgets and £9.924m relating to capital schemes). It had been intended to have reviewed all of the carry forwards requested by Services in order to identify those to be agreed or otherwise for reporting to this meeting of Cabinet. However, that review remained in progress and so it was now proposed to delegate their approval or otherwise to the Portfolio Holder for Corporate Finance and Governance in consultation with the Section 151 Officer. This review would also seek the input from relevant Senior Officers and Portfolio Holders. Following this review and associated decision, it was proposed that the total amount relating to any carry forwards not subsequently approved would be added to the general favourable variance for the year of £3.112m highlighted above and retained within the Revenues Commitment Reserve for consideration later in the year as proposed.

In order to allocate the overall General Fund favourable outturn variance for 2022/23 along with the associated delegations of authority:-

It was moved by Councillor M E Stephenson, seconded by Councillor Kotz and:-

RESOLVED that -

(a)    the high level Financial Outturn Position set out in this report and the initial favourable General Fund Revenue variance of £3.352m for the year, which is currently held within the Revenue Commitments Reserve be noted;

(b)    £0.240m of the overall favourable variance of £3.352m be used to meet the additional maintenance costs of the new cremators over the associated 10 year maintenance period;

(c)    the remaining favourable variance for the year of £3.112m be retained within the Revenue Commitments Reserve for further consideration during 2023/24;

(d)    the approval of the carry forwards from 2022/23 be delegated to the Portfolio Holder for Corporate Finance and Governance, in consultation with the Section 151 Officer;

(e)    the value of any of carry forwards not subsequently approved be added to the general variance set out in (c) above; and

(f)     the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, be authorised to adjust the outturn position for 2022/23 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 2022/23 accounts.