Agenda item

To consider the enclosed report which sets out the revenue and capital outturn and financial reserves statement for the financial year 2015-16.

Members considered the Council’s final financial position for 2015/16 for both the General Fund and Housing Revenue Account.  Officers advised of an amendment to recommendation 2.1 of the report in that the transfer to balances of £40k would be a recommendation to full Council and not a matter for noting by the Executive.

Officers advised that the draft Statement of Accounts had been submitted to the external auditors on 30th June 2016 and that the auditing of these was due to commence towards the end of July.  No issues had been raised by the external auditors during their draft audit work.

The £1.031m underspend on the revenue budget was noted, together with the required adjustments to this as detailed in the report, which resulted in a net underspend of £150k.  There was an expectation that £110k would be drawn down from balances in 2015/16.  As this transfer had not been required it was intended that a further £40k would be allocated to balances, which would give a resulting final position for 2015/16 of £2.024m; £1.3m higher than the minimum level for reserves.  The Senior Management Team would now be challenging Heads of Service to see if they could base their 2016/17 budgets on the 2015/16 budgets to maintain savings.

The £3.967m underspend on the capital budget was noted, which Officers explained the reasons for as detailed in the report.  This was in part due to a large underspend on the vehicle replacement programme, which had been delayed until the Place Team implementation was stabilised.

The Financial Reserves Statement at Appendix 2 to the report was noted and Officers stated that it would be helpful if future quarterly reports could advise which reserves were being drawn down on.  The £300k Housing Revenue Account (HRA) reserves for Job Evaluation (JE), which were separate to the £755k General Fund JE reserves, were noted and questions raised on this, particularly the separate HRA element which some Members had been unaware of.  The £572k underspend on the HRA was also noted.  Officers advised that work was being undertaken on the HRA underspend and JE element and that further information on these elements would be provided to Members.  The new terms and conditions under JE were due to be implemented in September, together with any applicable back-pay.  Officers undertook to confirm to Members how many staff had not signed up to the new terms and conditions, in which case dismissal and re-engagement would apply.

In relation to the Housing Support element of the Reserves Statement, and reference to a Government Specific Grant, Officers clarified that this should have stated £243k Government Grant and £180k RBC.  A query was also raised on the Income element of the HRA and increase in tenants’ charges and variance in dwelling rents, which Officers agreed to look into and to report back to Members on. 

A Member queried the position in relation to vacant posts and a review which Officers had previously confirmed they would be undertaking on this.  Officers apologised that this piece of work had not yet been completed as the accounts had taken priority.  Members were advised that Heads of Service reviewed all vacancies to ascertain, on an individual basis, if these were required and that only those that were deemed business-critical were filled.  Officers had spoken with Human Resources the previous week and work was due to be undertaken, across both Redditch and Bromsgrove Councils as some of the vacant posts impacted on both authorities, which Members would be receive details of. 

RESOLVED that

1)          the financial position on Revenue and Capital for the financial year 2015/16, as detailed in the report, be noted; and

RECOMMENDED that

2)          the transfer to balances of £40k be approved; and

3)          the movement in reserves, as detailed in Appendix 2 to the report, be approved.