Venue: By Zoom. View directions
Contact: Wyn Richards
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Apologies To receive apologies for absence. Minutes: Apologies for absence were received from County Councillors, A Cartwright and E.A. Jones
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To receive the minutes of meetings held on:
25-11-2022 Minutes: Documents Considered: · Minutes 25-11-2022.
Issues Discussed:
Outcomes: Agreed by all present as a true and accurate reflection of the meeting and ratified accordingly by the Chair.
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Declarations of Interest To receive any disclosures of interests by Members relating to items to be considered at the meeting. Minutes: There were no Declarations of Interest from Members relating to items to be considered on the agenda. |
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Financial Forecast for the year ended 31st March 2023 (as at 31st December 2022) PDF 82 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Additional documents: Minutes: Documents Considered: · Quarter Three 2022-23 Financial Forecast Update
· The report provides an update on the forecast financial outturn (both revenue and capital) for the 2022-23 financial year based on the updated position at quarter three (as of 31st December 2022). The report explains the changes from quarter two, covering how well we are achieving our savings targets, what reserves we may have to use to balance the outturn, what grants have been received and whether any budget virements need to be approved. The report allows the Service Heads to provide an update about their financial position and challenges in Appendix B
Issues Discussed:
The Head of Finance highlighted the following points: -
· The Pay awards that were agreed nationally have seen an additional £7.9m, some of which was provided for. However, there is a budget shortfall to be managed across the year of £3.8m through mitigating action across all service areas in reviewing their expenditure. · The Q2 projected deficit was £7m. £5.3m was covered off by specific reserves and the risk budget plan for the current year. A deficit of £1.7m remained and would call on general fund reserves, if still materialised by the end of the year. · Services had taken further action to limit expenditure and the position being reported at Qtr3 was improved. Specific reserves would still be drawn upon but there is now no expectation to draw down on general reserves, as a £1m surplus is now projected at Year end. Table 1 shows the overall position, with base budget and cost pressures, including the level of underspend offsetting some of the cost pressures. · The largest improvement of £800k was from Children’s Services, Social Care Commissioning managed to pull back on £700k as utilised grant funding. All Corporate budget assumptions have been reviewed; Council Tax, debt collection, capital budgets based on current projects resulting in an improved position of £600k due to reduced borrowing this year and reprofiling of some capital schemes. · There has been a slight change in costs reductions, of the £10m savings to be achieved this financial year. £7.2m has been realised, with a further £1.2m expected by the year end. This has left £2.3m of unachieved savings, of which £1.6m had been written out of the budget, as agreed on 23.02.2023 by Council. · There was an expected draw on reserves, some of which was planned and included within the budget, the use of some specific reserves would be required this year, to meet additional pressures and balance the budget. · The updated Schools Delegated budget position is noted, with the draw on reserves being made to manage some of the pressures seen. Some schools are drawing on reserves to smooth budgets over the year as planned. Some schools have not actioned their recovery plans and would be expected to continue to manage that over the longer term. · The reserve position overall has moved from the £63.7m opening balance of revenue reserves, to £49m at the end of this financial year a draw of approximately ... view the full minutes text for item 4. |
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Capital Forecast 2022-23, as at 31st December 2022 PDF 209 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Minutes: Documents Considered: · Capital Forecast 2022-23, as at 31st December 2022 The 2022/23 Capital Programme was approved by Council on the 3rd March 2022. It included capital schemes totalling £133.88m, of which £25.55m related to the Housing Revenue Account (HRA). The programme has been updated following the reprofiling of projects and additional grants received from Welsh Government.
Issues Discussed:
The Head of Finance highlighted the following points: -
· (2.2) Table 1 shows the breakdown via service area of the original budget, approved virements. Commenced the year with a Capital budget of £133.8m, there have been virements of over £40.5m during the year which could be attributed to re-profiling or receipt of grant monies. · The revised programme at the 31st December 2022 is budgeted at £93.37m following the successful award of additional grants and the reprofiling of budgets between financial years. Actual spend amounts to £41.08m, representing 44% of the total budget. · Forecasting is critical and Project Managers need to accurately profile budgets. · Appendix A Chart 2 shows the financing of the capital programme, a large proportion £43.4m is financed via grants. There are revenue contributions, capital receipts and supported or prudential borrowing to fund the remainder of the Capital Programme. · Interest rates have increased borrowing costs this year, further detail would be found in the treasury management report which is discussed at Governance & Audit Committee.
· Questions:
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Forward Work Programme PDF 59 KB To note the schedule of meetings. Minutes: Documents Considered: · Forward Work Programme for 2023.
Issues Discussed: · Finance Panel to receive regular information on the Reimagining Powys work and the development of the financial plan for 2024-2025 and beyond. · Also include Benchmarking against Other Local Authorities in Wales and IBPs within the Re-Imagining Powys work. · Q4 report to be brought forward to June 30th meeting.
Work to be undertaken with the Chair around what information is to be shared within a Public or Private session.
County Councillor A W Davies (Chair)
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