Agenda item

E/19/03 Financial Management & Control: Out-Turn Report 2018/19

Portfolio Holder – Councillor Martin Cook

 

This report gives details of the out-turn position for 2018/19 on:

 

1.         The General Fund Revenue Budget, General Balances, and the Council’s Reserves;

 

2.         The Housing Revenue Account;

 

3.         The Shared Revenues Partnership;

 

4.         The Capital Programme, for the General Fund and Housing Revenue Account.

Minutes:

8.1         Councillor Cook explained that the Council had ended the 2018/19 Financial Year with a small favourable variance compared to its budget. Councillor Cook noted that most of the underspends had been identified early in the financial year which was a sign of good financial management, although he noted that there was still room for improvement when considering the Capital Programme. The Big Ticket Savings Programme had again over achieved, saving £920k which was £180k higher than budgeted.

 

8.2         Councillor Cook noted that an additional £75k was proposed to be taken from the capital contingency budget to fund additional software licences for the Agresso finance system. Councillor Cook also noted that a significant write-off was proposed, but that this would end a long lasting legal dispute.

 

8.3         In accordance with Standing Orders Part 3 Section 3 Paragraph 3.5, the following question was asked:

 

Question 2 – Councillor T Lockington

‘Can the Executive confirm the value of the land at Raeburn Road recovered in lieu of the debt of £430,592.00 and whether this land has any history of contamination, and what plans are in place to mitigate the loss of ongoing rental income?’

 

8.4         Councillor Cook replied that the capital value of the land, as recorded in the recent Asset Valuation exercise, was £2,741,400.

 

8.5         Councillor Cook explained that a selection of surveys had been carried out at the site in order to review and rectify any compliance issues, for example, asbestos, electrical and fire safety; a full contamination assessment was planned to be carried out.

 

8.6         Councillor Cook reported that in order to safeguard rental income, previous sub-tenants were being placed onto ‘Tenancy at Will’ agreements in order to regularise their occupation.  Full leases were being negotiated and these would ensure that rental income was secured and provide both the Council and its tenant’s greater certainty.

 

It was RESOLVED:

 

a)     that the contents of the 2018/19 out-turn report be noted and that the resulting budget changes be approved;

 

Reason: to fulfil Executives role in financial management

 

b)     that the budgets carried forward to 2018/19 for the General Fund (paragraph 3.2 and Appendix 5 of the report), the Housing Revenue Account (paragraph 8.2 and Appendix 7 of the report) and the Capital Programme (paragraph 10.3 and Appendix 9 of the report) be approved; 

 

Reason: to ensure adequate budgetary provision for commitments made in 2018/19 but not completed in that year

 

c)     that the transfers to/from reserves  detailed in paragraphs 7.10, 8.2 and 8.3 of the report be approved;

 

Reason: to facilitate effective budgetary control

 

d)     that the position on the 2018/19 and future years Capital Programme be noted and that the additions to the capital programme identified in paragraph 10.7 of the report be approved;

 

Reason: to facilitate effective budgetary control

 

e)     that the £75,000 transfer from the ‘Contingency - additional commitments’ budget to the Finance System capital scheme be noted, bringing the total project value to £429,813 (paragraph 10.9 of the report);

 

Reason: to facilitate development of finance system

 

f)      that the write off totalling £430,592.50 relating to rent payable by Cheltenham Developments Ltd, as identified in paragraph 17.1 of the report, be approved against the provision made.

 

Reason:  to recognise that the debt is irrecoverable and allow the necessary accounting entries to be made.

Supporting documents: