Agenda item

To consider Item 8

The Deputy Director of Finance and Assets advised Members that the report at Appendix A set out the Authority's revenue and capital spending position as at 31 March 2022, together with the projected outturn position for the financial year. The provisional outturn figure for the year was a net underspend of £0.225m. It was recommended that this figure be transferred to the Revenue Contribution to Capital Reserve in line with the approved Medium Term Financial Plan. 

The Deputy Director of Finance and Assets advised Members that there were some significant variances he would like to bring to their attention which had contributed to the overall underspend.

In 2021/22, there was a business rates review carried out on all the Authority’s estates by an external company to confirm if the rates being paid were correct.  Following completion of the review, a rates rebate was confirmed in the region of £300k which had been backdated to 2017.  This was a one-off saving.

The Service had seen significant underspend (£440k) in employee costs predominantly in relation to Support staff.  This was due to a delay in recruitment caused by the Covid-19 pandemic and general difficulties in recruiting staff to specialist roles in the current environment, which had resulted in several posts not being filled.

The Authority had received additional in year funding in the region of £350k in relation to Protection, Covid and local taxation income grants which were only confirmed in year. These significant variances had all contributed towards the underspend and had resulted in the Service not having to use reserves.

Table 3 provided a breakdown of Covid-19 spend since March 2020.  In total the Service had spent £969k of which £850k had been funded by government.

Table 5 showed the key capital projects and to note was the USAR rig built at Aylesbury Fire Station and now complete. A slippage of £1.5m had been requested which predominantly related to a delay in the delivery of red fleet appliances and the completion of the WAN/LAN project.

The Chairman asked for an update on the West Ashland issue.

The Director of Finance and Assets advised that the Authority was going through the legal process and explained the progress to date, whereupon the Lead Member for Finance & Assets, Information Security, and IT confirmed that he had received a thorough briefing on the position.

RESOLVED –

1.      That the provisional outturn forecast for the Authority as at 31 March 2022 be noted.

2.      That the slippage of £1.514m on the capital programme is approved to be carried forward into 2022/23.

3.      That the underspend of £0.225m is transferred into Revenue Contribution to Capital Reserve (RCCO).

4.      That delegated authority be given to the Chief Finance Officer to authorise any late changes to the movements in reserves and capital slippage amounts resulting from accounting adjustments needing to be made during the year-end closedown process.

5.      That should any changes to the amounts referred to above be required, then the Chief Finance Officer will report these to Members at the next available meeting.