Issue - meetings

To consider the report of the Cabinet Member for Performance and Resources presenting the Council’s final General Fund Revenue and Capital Outturn positions against agreed budgets for the 2022-23 financial year, and report on performance against certain key financial performance indicators.

RESOLVED that:

       (1)               it is noted that:

a)    the year-end position for the financial year 2022-23 is currently a decrease to the General Fund balance of £278k against a budgeted net zero position

b)    the General Fund balance has decreased from £1.127m to £0.849m at the end of 2022-23

c)    that the level of earmarked reserves has decreased by £3.209m to £4.264m, with the final release of £2.811m from the Section 31 Grant Repayment Reserve created in 2020-21 because of the Covid-19 pandemic

d)    the current level of Capital expenditure as shown in Appendix 1 of the report

e)    that the work to reconstitute the large volume of data from the manual transactions processed following the cyber incident in December 2021 into the system is in progress. The volume of manual data being analysed and reconciled means that there will be movements between the outturns forecast for the detailed categories, and that the figures provided are the best estimates based on current analyses

       (2)               the transfers to and from earmarked reserves as detailed in the table in section 6 of the report is approved.

Cabinet considered the report of the Cabinet Member for Performance and Resources that presented the Council’s final General Fund Revenue and Capital Outturn positions against agreed budgets for the 2022-23 financial year, and reported on performance against certain key financial performance indicators.

The Cabinet Member for Performance and Resources drew Members’ attention to decreases in the General Fund balance and level of ear-marked reserves (2.1.1).  She noted that the 2022-23 year had been a challenging one with the impact of post-COVID19, the cyber incident, inflation and an increased ask from Aspire Sports and Cultural Trust that had not been anticipated when the budget was set.  The Cabinet Member for Performance and Resources summarised the position in each portfolio including her own.

The Cabinet Member for Culture and Leisure informed Members that despite recent challenges he was very optimistic for revenue growth by the Guildhall, Museum and Blackfriars.  The Cabinet Member for Environment highlighted the partial mitigation of the raised high fuel and labour costs by increased revenue from recyclable materials (5.19).  He noted this income had risen from £350k in 2016 to £1.2m last year which he attributed to the good work of both officers and residents.  The Cabinet Member for Communities and Neighbourhoods ascribed the positive performance of his portfolio to sourcing more external funding and greater co-operation with partners such as the County Council and NHS.  He reminded Members that these achievements translated to better care for residents in what are difficult times.

RESOLVED that:

       (1)               it is noted that:

a)    the year-end position for the financial year 2022-23 is currently a decrease to the General Fund balance of £278k against a budgeted net zero position

b)    the General Fund balance has decreased from £1.127m to £0.849m at the end of 2022-23

c)    that the level of earmarked reserves has decreased by £3.209m to £4.264m, with the final release of £2.811m from the Section 31 Grant Repayment Reserve created in 2020-21 because of the Covid-19 pandemic

d)    the current level of Capital expenditure as shown in Appendix 1 of the report

e)    that the work to reconstitute the large volume of data from the manual transactions processed following the cyber incident in December 2021 into the system is in progress. The volume of manual data being analysed and reconciled means that there will be movements between the outturns forecast for the detailed categories, and that the figures provided are the best estimates based on current analyses

       (2)               the transfers to and from earmarked reserves as detailed in the table in section 6 of the report is approved.

To consider the report of the Cabinet Member for Performance and Resources presenting the Council’s final General Fund Revenue and Capital Outturn positions against agreed budgets for the 2022-23 financial year, and report on performance against certain key financial performance indicators.

21.1   The Cabinet Member for Performance and Resources, Councillor Hannah Norman, introduced and summarised the report. She advised the Committee that the year-end position for the financial year 2022-23 was currently a decrease to the General Fund balance of £278k against a budgeted net zero position, and that the level of earmarked reserves had decreased by £3.209m to £4.264m. 

21.2   Councillor Norman stated that 2022-23 had been a challenging year, with service areas still experiencing the impact of Covid-19 pandemic, the cyber incident of 2021 and rising inflation. She noted that there had been an additional pressure of £360k as a result of the Council providing increased support to Aspire Leisure Trust to assist with additional energy cost pressures during the year. Councillor Norman confirmed that parking levels had continued to increase and were now at normal pre-Covid levels, however inflationary pressures alongside a slow return to normal parking levels had led to an adverse position of £260k. She noted that the Council’s IT had proved close to budget, despite significant spending needed to restore services following the cyber incident and that although the Commercial Property portfolio was averse to budget by £0.8m, it had contributed a net income of £2.57m.

21.3    In relation to other portfolio areas, Councillor Norman confirmed that the outturn position for the Communities and Neighbourhoods was a minor underspend due to the performance of Shopmobility and community grants. Referring to the Culture and Leisure portfolio, she confirmed that the planning of works at the Museum of Gloucester to utilise the MEND grant funding in 2023-24 was underway.

21.4    Referring to paragraph 2.2(1)v in the report, Councillor Wilson asked how long it was likely to take for the volume of data to be fully analysed and reconciled. The Head of Finance and Resources confirmed that the process of re-hydrating the financial systems for 2021-22 was complete, and that the Finance Team were in the process of producing the 2021-2022 end of year accounts. He explained that once this was complete, the Finance Team would be able to work on the 2022-23 financial year. The Head of Finance and Resources noted that following this, there might be some adjustments but neither he nor the team expected material differences.

21.5    Councillor Wilson referred to the challenges caused by high inflation and the pandemic and noted his understanding that the Council had used the VAT shelter to hedge against the interest rate rises. He asked whether the rates had risen more than expected, to which the Head of Finance replied that they had. He confirmed that the Council had taken out short term borrowing to cover year 1, with rates expected to return to more normal levels over the next few years.

21.6   In response to an additional query from Councillor Wilson, the Head of Finance and Resources confirmed that the Council was still working within the expected parameters. Councillor Norman noted that the latest developments on interest rates were discussed on a regular basis at Major Projects Board  ...  view the full minutes text for item 21