Agenda item

Report of the County Treasurer (CT/18/43) on the Revenue and Capital Budget Outturn position for 2017/2018, attached.

(Councillors Biederman, Dewhirst, Hannaford and Greenslade attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the County Treasurer (CT/18/43) circulated prior to the meeting in accordance with regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 on the outturn position for 2017/2018.

The Cabinet were informed of the earlier reporting of the Outturn than in previous years, as the Accounts and Audit Regulations had changed the statutory deadline for preparation of the full Statement of Accounts from 30th June to 31st May with effect from this year. 

Regular budget monitoring reports had been received throughout 2017/18 in which budget pressures and risks had been identified. 

Members acknowledged that rigorous, effective financial and budgetary management had again enabled expenditure to be contained within the overall target budget. Overall, an underspend had been achieved in spite of the significant financial challenges that the Council had continued to face during the financial year.

The Report also contained a detailed breakdown of the position within specific service areas and other funding items showing all over and under-spendings and the reasons for that. 

The outturn for Adult Care and Health Services showed an overall net underspend of £7.5 millions after taking into account grants and contributions carry forward and any other carry forward requests (Adult Care Operations and Health showing an underspend of £6.7 millions and Adult Commissioning and Health underspending by £782,000).

The position for Children's Services was a £2.6 millions overspend (Children's Social Work and Child protection being an overspend of £2.3 millions, Education and Learning General Fund was an overspend of £260,000 and expenditure in Education and Learning relating to spending on schools, funded from the Dedicated schools grant, was shown as breakeven.

The outturn for Communities, Public Health, Environment and Prosperity showed an overall underspend of £1.3 millions after taking into account grants and contributions carry forward and any other carry forward request. Economy Enterprise and Skills was underspent by £234,000, Planning, Transportation and Environment an underspend of £821,000 and Public Health underspent by £159,000.

In relation to Corporate Services, there was an overall underspend of £1.1 millions (Chief Executive, Legal and Communications were £145,000 underspent, Digital Transformation and Business Support were showing an underspend of £1.3 millions and the County Treasurer an underspend of £344,000.

The outturn position for Highways, Infrastructure Development and Waste was a £2.1 millions underspend.

The Report outlined other factors such as the budget of £1.5 millions set for the County Council elections; the outturn being an underspend of £249,000, the reduction in the insurance premium and claims, the improved ‘better care fund’ grant, capital financing costs being less than budgeted, interest receivable being more than budgeted, slippage in the capital programme and the carry forward of the infrastructure development budget.

The Leader on behalf of the Cabinet Member for Resources & Asset Management, who had submitted apologies for the meeting, again paid tribute to the County Treasurer and all staff of the Council who had been instrumental in bringing expenditure in under budget. Despite significant pressures the Authority had achieved a net underspend overall and careful budget management had allowed the authority to contribute £12 millions to the Budget Management Reserve and report an Outturn surplus of £15,000.

The level of earmarked reserves held by the Authority was low compared with other County Councils.  At 31st March 2017, Devon's reserves were the 12^th lowest out of 27 County Councils.  The contribution to reserves of £12 millions was welcome and would help to improve the authority's financial resilience and help to bridge the gap projected in the MTFS (Medium Term Financial Strategy) for 2019/20.

Cabinet noted that 2019/20 was the last year of the current funding settlement from Government and the Council had no indication of the funding it would receive from Government in 2020/21 and beyond.  The Council may not know its level of funding for 2020/21 until late in the budget process for that year which posed a significant financial risk to the Council. A reasonable level of reserves offered some protection against and softened the impact of a late, low settlement.

The Cabinet wished to place on record its thanks to Councillor Clatworthy for his excellent track record in bringing expenditure in under budget.

The matter having been debated and the options and/or alternatives and other relevant factors (e.g. financial, sustainability, carbon impact, risk management, equality and legal considerations and Public Health impact) set out in the County Treasurers Report and/or referred to above having been considered:

It was MOVED by Councillor Hart, SECONDED by Councillor Barker, and

RESOLVED

(a) that the draft outturn for 2017/18, after carry forwards and contributions to balances, reserves and provisions, showing an underspend of £15,000 against the approved revenue budget be noted;

(b) that the 2017/18 revenue outturn be approved, including transactions on earmarked reserves and provisions, spending against budget, treatment of over and under spending and the implications for balances, as set out in the tables and the narrative of the Report; 

(c) that the 2017/18 capital outturn be approved including spending against budget and proposed carry forwards, in accordance with the tables included in the Report;

(d) that the use of capital finance as set out in the Statement of Determination of Capital Finance on page 37 of the Capital Outturn Report be approved;

(e) that a total of £8.416 millions is set aside from revenue resources as provision for credit liabilities (to repay debt);

(f) that the Prudential Indicators as set out in section 11 of the Report be noted; and

(g) that the total monies owing to the Council as at 31st March 2018 be noted.