Issue - meetings

Report of the Interim Director of Resources

Presented by the Corporate Portfolio Holder

The Leader presented the report to Members.

He advised that the report summarised the main elements of the financial performance for 2016/17, however the results were provisional as they were still subject to external audit and could change. He informed Members that the final audited accounts would be considered and approved by the Audit & Governance Committee on 27 September 2017.

He asked Members to note the outturn position on both the General Fund and Housing Revenue Account, and moving forward, that a greater emphasis would be placed on robust financial management in forecasting the Council’s financial position and reducing variance between budgeted and outturn position. 

He highlighted that: the expected final position on the General Fund was £1.825m surplus against a budget of £0.983m with the major variances being due to an increase in business rates, recycling and planning fee income; that Cabinet had agreed throughout 2016/17 to use the surplus for initiatives totalling £1.178m and that the remaining surplus of £0.647m would therefore be transferred to reserves of which £0.577m would be allocated to Marlborough Square following the decision by Cabinet on 13 June 2017 that this be funded from any 2016/17 remaining surplus and the predicted surplus for 2017/18; that the outturn on the HRA was an expected surplus of £3.234m against a budget of £2.395m with the major variances being additional rental income, under spend on cyclical repairs and a reduction in corporate recharges paid to the general fund. He added that with the additional income received the Council was able to put more funds into the Coalville project.

Councillor R D Bayliss stated that the report was a testament to good financial management and advised Members that in relation to the HRA surplus the authority needed to accumulate surplus to be able to redeem debt, and with £10million to redeem in 2021/22 the authority was on target to do so.

It was moved by Councillor R Blunt, seconded by Councillor A V Smith and

RESOLVED THAT:

The Provisional Financial Outturn Position for 2016/17 be noted.

Reason for decision: Requirement of Financial Procedure Rules