Agenda item - Pre-Audit Corporate Finance Outturn 2019/20 - Key Decision

Agenda item

Pre-Audit Corporate Finance Outturn 2019/20 - Key Decision

Report of the Portfolio Holder for Finance, Growth and the City Centre

Minutes:

The Board considered the report of the Portfolio Holder for Finance, Growth and the City Centre setting out the pre audit General Fund and Housing Revenue Account revenue outturn and Capital Programme for 2019/20. The Portfolio Holder highlighted the substantial reduction in government fund of Local Authorities over the last 10 years, detailing that Nottingham City Council had had to make savings of over £270 million over that period. The following points were highlighted during discussion:

 

(a)  As a result of loss of income and costs associated with COVID 19 and existing overspend the net overspend is £6.754 million for quarter 3;

 

(b)  Table 9, Capital Programme Outturn 19/20 shows slippage of projects rather than underspend on budgeted projects. The Strategic Director of Finance indicated that details of the slippage will be circulated to members of the Board at their request;

 

(c)  The Make Tofu Not War installation is a purchase fully funded by the Arts Council and is a permanent acquisition for the Council. Council funds were not used to purchase this piece of art;

 

(d)  The Blue Green Infrastructure project has been implemented following a large grant from the EU. Money has been spent across the city, and has helped to alleviate the risk of flooding as well as encouraging natural wetland habitat for a number of species. It has also allowed the creation of new footpaths and cycle routes across the city;

 

Resolved to:

(1)  To note:

a.  The pre-audit revenue outturn overspend of £6.754m for 2019/20 as set out in paragraph 2.2 and Appendix A of the report published with the agenda;

b.  The portfolio variances +/- £50k as set out in Appendix B of the report published with the agenda;

c.  The discretionary rate relief granted in 2019/20 detailed in paragraph 2.11 of the report published with the agenda;

d.  The additions to the Capital Programme detailed in Table 10 of the report published with the agenda;

e.  The refreshed Capital Programme, including planned and proposed as set out in paragraph 2.17 and 2.18 (Tables 11 to 12) of the report published with the agenda.

 

(2)   To approve:

a.  The movements of resources set out in paragraph 2.5 and Appendix D of the report published with the agenda;

b.  The net movement on earmarked reserves, as set out in paragraph 2.7 and Appendix E of the report published with the agenda;

c.  The HRA outturn for 2019/20 as set out in paragraph 2.8 of the report published with the agenda

d.  Write-offs in excess of £10,000, totalling £0.648m where all options for recovery have been exhausted, as set out in paragraph 2.10 of the report published with the agenda

e.  Additional costs of £2.456m in relation to various capital schemes set out in paragraph 2.16 of the report published with the agenda; and

 

(3)  To note and endorse the allocations from the corporate contingency as set out in paragraph 2.3 of the report published with the agenda.

 

Reasons for decisions

The approval of virements of budgets is required by corporate financial procedures. The actions approved will enable formal monitoring of progress against the 2019/20 budget and the impact of planned and actual management action. 

 

Other options considered

This report details the 2019/20 outturn and how the overspend will be managed.

Supporting documents: