Venue: By Zoom. View directions
Contact: Kath Flanagan-Jones
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Apologies To receive apologies for absence. Minutes:
Apologies for absence were received from: County Councillors: J. Pugh, G. Preston, C. Walsh, G Ratcliffe.
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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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To authorise the Chair to sign the minutes of the previous meeting, held on the 30th June 2023, as a correct record and to consider any outstanding actions. Minutes:
· The minutes of the 30th June 2023 were agreed by Panel members present as a true and accurate reflection of the meeting and ratified accordingly by the Chair.
ACTIONS:
1. Chair/ Vice Chair and Head of Service to discuss wording of Terms of Reference.
Points raised: · TOR lacked clarity and purpose. · Removal of wording “assist with” & add d to “evidence, base upon…” · Clarity required for how the Panel are to plan and inform policy. · Review formatting – 7.38.1 first line sub-heading, with the bullet points to follow. · Review formatting – 7.38.2 first line sub-heading, with the bullet points to follow: *Action:Jane Thomas to review, update wording and formatting “The Panel will review the strategic financial matters…” Share changes with Chair & Vice Chair and seek Finance Panel Members approval at next meeting. Changes to be referred to the Monitoring Officer.
Finance Panel Members are politically balanced & as such are required to provide challenge at the earliest opportunity to understand the context under which the Cabinet are working.
Sustainable Powys should inform of the Councils aspiration to progress. However, at present there appears a lack of substance, information, and development.
Service Areas are focussing on and developing plans through into the Autumn, for Cabinet to review and share when appropriate. Members Development on Sustainable Powys scheduled for 20th Sept.
Expected wage inflation for the next 12 months. The Head of Service will submit a report in due course, ideally with a presentation to Finance Panel between the submissions to Cabinet EMT (Executive Management Team) & Cabinet. 2. Head of Service to discuss outside this forum PTHB (Powys Teaching Health Board) contract and uplifts. Chair to be involved in discussion. · Action to be completed: Jane Thomas to discuss with Member concerned. 3. Information on receipt of £2.2m Capital Efficiency works grant to be forwarded to Chair / Panel. Date of award letter 02/02/23. Chair requests date which award received. Completed with Email sent 18/08/23. 4. Head of Service will review comment in relation to funding returned to WG (Welsh Government) and advise. Not yet received detail from the Member concerned after raising, nor has Head of Service been able to uncover anything other than a small amount of grant funding returned. · Action to be completed: Head of Service to seek further information from the Member concerned. 5. Bro Hyddgen capital project delivery timescales, Head of Service will request information and forward to Panel. (Below received from Marianne Evans) Timescales affected by changes to the leisure and library part of the buildings.
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The Revenue Financial Forecast as at 30th June 2023 - Quarter 1 PDF 344 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Minutes:
Background. Portfolio Holder gave a brief precis to the report: · Reported current position of £3.7m surplus. · Surplus largely associated with expenditure against Corporate Budgets. · £3m Risk budget with only £23k drawn down in Q1. · Risk budget was approved at budget setting, to manage financial risk across the Councils services, with £5m of potential costs identified. · Monies will be released as costs materialise throughout the financial year. · £9.4m of savings had been delivered with a further 40% (£7m) assured by Services. £968k of savings were unachieved and at risk of delivery within year. · Proposed to transfer the £0.7m from the Powys Recovery Fund Reserve to the General Reserve, to maintain the minimum level (4%) of net revenue budget. · Specific pay reserves were established to support this year’s pay awards. National level negotiations continue. Increase is expected to be above the 5% funded at budget setting. · The current pay offer equates to approximately 7%, resulting in a shortfall of £3.3m this year. Reserves will fund costs for this financial year, but recurring budget shortfall will need to be addressed at budget setting 2024-25. · Schools have set budgets with an expected call on reserves of £5.7m, an improvement of projected forecast by £98k. · A virement is required to re-allocate the approved budget for Transformation to the individual service budget, together with a proposal to utilise funds from the spend to save reserve for severance costs. · One-off funding approved at budget setting for the Urdd from reserves, was included in error in the funding for 2024-25. Therefore, a virement proposed to release £100k from reserves to support the Urdd 2023-24. · Inflation, demographic pressures, and rising interest rates continue to impact on the budget, whilst CPI levels are starting to fall, they remain higher than the budgeted allocation. · Greatest financial risk remains in the Councils ability to provide balanced budget over the medium and longer term.
Planning has a focus on 2024-25 and beyond in accordance with the MTFS (Medium Term Financial Strategy) with Sustainable Powys proving fundamental to help bridge forecasted gaps in 2024-25. The Council remain concerned about public finances in general terms, with the expectation that future settlements will be tight, and Council services would have to be delivered within a smaller financial envelope.
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Capital Forecast 2023-24, as at 30th June 2023 - Quarter 1 PDF 181 KB To receive and consider the report of the Cabinet Member for Finance and Corporate Transformation. Minutes:
Background Portfolio Holder gave a brief precis to the report: · The programme has been updated following the re-profiling of projects and with additional grants received from WG. · The revised programme as at the 30th June 2023 is budgeted at £102.5m. · Actual spend at £7.61m representing only 7.4% of the total budget. · Currently £48.82m of 48% of the capital expenditure is budgeted to be finance through borrowing, interest costs of which are charged to the revenue account. · Finance Services are working with Services to ensure that the profiling of budgets is accurate to effectively manage borrowing. · Virements proposed for approval by Cabinet: o £0.02m from the leisure capital budget to schools major improvements budget as a contribution to the works for Llanidloes HS sports centre gymnasium. o £0.02m to the Highways budget from the unallocated central Capital budget, WG Funding of £0.13m has been provided to continue to expand the community electric vehicle hubs and will enable the Council to meet its percentage of the total cost.
Q1 spend was extremely low. Heads of Service commentary provides further context. Many schemes where spend was anticipated later in the year, were still progressing as planned.
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Financial Planning Report PDF 405 KB To receive and consider the Financial Planning Report update. Additional documents: Minutes:
Background Portfolio Holder gave a brief precis to the report as: An update on the latest economic projections, how they influence and impact the development of the Councils budget for 2023-25 and the MTFS (Medium Term Financial Strategy). The report sets out the key factors to our financial planning and how they change the assumptions used to develop budget plans.
· WG are reviewing departmental budgets, impact of which is yet to be seen by Local Government. · NHS funding is subject to review which could impact on joint funding arrangements i.e., CHC (Continuing Health Care) ALN (Additional Learning needs and Children’s Services. · Inflation continues to impose cost pressures, transport, food, and insurance continues to see higher levels of inflation that the average. · Economic context has significant implications for the Council financial planning, updating the strategy is key to the Councils financial stability. To reduce the gaps in the financial plan will require resolution either by increased income generation or cost reductions. · Cost of living challenge continues to impact on businesses and residents, with increased demand for Council services expected through 2024-25, influencing the Councils indicative budget plan for 2024-25 increasing costs, pushing the budget gap to £16.3m, an increase of £6m from the projected figure in February 2023. If the teachers’ pension increase is included from 2024 this will increase to £18m. · Future funding levels including those from WG are not yet confirmed i.e., Settlement and Council Tax income with the assumptions key factors in the development of budget plans. · The revised modelling creates a £16.3m budget gap next year and a cumulative gap of £43.4m. · Worst case scenario sees the cumulative figure increase to £82.3m at the end of year 5. · It is becoming clear that the Council in its current form is not sustainable over the longer term, in response the Council has embarked on a programme of change to re-imagine what the Council to ensure that it can remain financially sustainable and provide services over the long term. Services provision and delivery will be reviewed to meet current needs whilst ensuring innovative solutions and adaptation made to meet future need. · Proposals will be developed for consideration prior to inclusion in the budget plan.
The Council must place financial resilience at the forefront of its activities, with support from Audit Wales, drawing on CIPFA’s 5 Pillars of financial resilience, which are indicators of financial stress. A financial resilience snapshot is included for the first time in reports for Panel, providing a higher-level overview of the financial health of the Council. There is no immediate cause for concern, however, need to remain vigilant over the medium term. Management of risk is a necessity, with effective monitoring and management of financial risk to support financial resilience. The requirement to hold an appropriate level of reserves has been highlighted over the last year, particularly supporting pay pressures, whilst uncertainty persists reserves will remain crucial to the Councils financial stability.
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Forward Work Programme PDF 71 KB To note that the schedule of meetings is as follows: Minutes:
Comments: · Council Tax Base Rate 2024/25 to be added.
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Exempt Item
To consider passing the following Resolution:
RESOLVED to exclude the public for the following item of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
The Monitoring Officer has determined that category 3 of the Access to Information Procedure Rules applies to the following item. His view on the public interest test (having taken account of the provisions of Rule 14.8 of the Council's Access to Information Rules) was that to make this information public would disclose information relating to the financial or business affairs of any particular person (including the authority holding that information).
These factors in his view outweigh the public interest in disclosing this information. Members are asked to consider these factors when determining the public interest test, which they must decide when considering excluding the public from this part of the meeting. Minutes:
The following Resolution was passed by Finance Panel Members:
RESOLVED to exclude the public for the following item of business on the grounds that there would be disclosure to them of exempt information under category 3 of The Local Authorities (Access to Information) (Variation) (Wales) Order 2007).
The Monitoring Officer has determined that category 3 of the Access to Information Procedure Rules applies to the following item. His view on the public interest test (having taken account of the provisions of Rule 14.8 of the Council's Access to Information Rules) was that to make this information public would disclose information relating to the financial or business affairs of any particular person (including the authority holding that information).
These factors in his view outweigh the public interest in disclosing this information. Members are asked to consider these factors when determining the public interest test, which they must decide when considering excluding the public from this part of the meeting.
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Financial Management (FM) Code To receive and consider the Financial Management Code. Minutes:
A presentation of the Financial Management Code was received by Finance Panel members.
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