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Agenda item

Financial Performance Report 2022/23 Out-turn

Purpose

This report sets out the outturn position for the 2023/24 financial year.

 

Recommendation

That the Committee:

1.            Reviews and notes the financial position set out in the report.

 

Invited

 

Cllr Mike Evemy, Deputy Leader and Cabinet Member for Finance;

David Stanley, Deputy Chief Executive;

Gemma Moreing, Business Information Lead

Minutes:

The Chair handed over to the Deputy Leader and Cabinet Member for Finance to introduce the report.

 

The Deputy Leader introduced the report and outlined that the report was referring to the management information of the finances on a revenue and a capital basis. It was noted that the Audit and Governance Committee had specific responsibilities for the accounts.

 

The following points were noted:

 

  • It was highlighted that the 2022/23 budget approved in February 2022 was affected immediately by the invasion of Ukraine by Russian Forces. This changed budget assumptions and added a number of cost pressures such as rising fuel costs.
  • It was also noted that the national pay award in 2022/23 was a 6% rise for Publica staff and 7% rise for Ubico staff in comparison to the 2.5% estimated.
  • The Chief Accountant reinforced that the £1.2 million deficit was due to the increases in pay, fuel and energy costs. It was noted that these comparisons would have to be taken into consideration for the 2023/24 budget.
  • It was also noted that there was a shortfall in car parking income, and a reduction in income from planning services and land charges.
  • However, investment income had continued to perform well with rising interest rates, which led to a £510,000 favourable variable against the budget.
  • It was noted in Annex C that there was an underspend in the capital programme of £1.3 million outlined which included a loan to Cottsway Housing, the purchase of vehicles through Ubico, and the changing places toilets scheme, which would be carried forward.
  • The Committee was also informed in Section 3 (Table 3) of the General Fund closing balance which had been budgeted as £4.2 million and the outturn was now £1.7 million. This was partly due to the higher than budgeted deficit position and because of a transfer to the newly established Financial Resilience Reserve. There was also a £1.6 million budgeted transfer into the General Fund following the lump sum payment made to the pension fund in 2021 which provided capacity in the budget to increase the general fund.

 

There were comments made about the introduction of cashless parking and the link to the reduction of car parking income. It was also asked whether the higher cost had been factored in to electric vehicle charging points. The Deputy Leader outlined that the reduction was £24,000 which wasn’t felt to be a material deterioration. It was also noted that the 2023/24 revenue was projected to grow without a change in the current tariff.

 

In response to the question on electric vehicle charging points, the Chief Accountant noted that the increase in energy costs would be counterbalanced by income from chargers.

 

It was noted for the benefit of new Members that the Medium Term Financial Strategy presented at Full Council looked ahead 4 financial years into the future whereas this report was retrospective. It was noted that with the £861,000 used to balance the 2023/24 budget from reserves, there was a High Risk Budgets report going to Cabinet on 17July, which would make Members aware of the challenges ahead.

 

It was also noted that the Cabinet was working closely to deliver the savings needed alongside the Council’s partners in Ubico and Publica.

 

It was commented that a simpler table of reserves might be useful for general reading. The Chief Accountant would take this away for future presentations.

 

The Committee entered into discussion on the following points:

 

  • The allocation of money into specific funds.
  • The future financial position of the Council and how it may increase its revenue and capital receipts.
  • The constraints of income from central government.

 

The Committee asked about the question of the Green Bond and how this was accounted for. The Chief Accountant noted that this would be part of the report to the Audit and Governance Committee on the accounts. It was also noted that the funding could be seen on the Capital Programme as it was used for funding electric vehicle charging points and solar photovoltaic improvements to the Council Offices.

 

RESOLVED: That the Committee NOTED the report.

 

Supporting documents:

 

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