Issue - meetings

Financial Monitoring 2021-22 Period 3 (April/June 2021)

Meeting: 26/08/2021 - Corporate Governance and Standards Committee (Item 24)

24 Financial Monitoring 2021-22 Period 3 (April/June 2021) pdf icon PDF 358 KB

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The Committee considered the latest financial monitoring report, which summarised the projected outturn position for the Council’s general fund revenue account, based on actual and accrued data for the period April to June 2021.


Officers were projecting an increase in net expenditure on the general fund revenue account of around £4.4million.


Covid-19 continued to impact the Council.  The direct expenditure incurred by the Council in the current financial year currently stood at £59,718.  The Government support would contribute to both the direct and indirect costs of the Covid-19 pandemic.


The indirect costs of Covid-19, particularly the loss of income, were reflected in the services forecasting.  As the pandemic continued, estimates for losses in income and increased costs had been made with the best information available, which were subject to change as the year progressed. The report considered the expenditure and income forecasted up to 30 June 2021 and would potentially be subject to substantial movement depending on the success of the Government’s roadmap for lifting all Covid restrictions. 


The Council would be able to make a claim for some of the income loss under the Sales, Fees and Charges compensation scheme; however, officers were waiting for the government to issue guidance on this scheme for 2021-22 so an estimate of how much might be claimed was not currently included within the projection.


There was a reduction (£217,940) in the statutory Minimum Revenue Provision (MRP) charge to the general fund to make provision for the repayment of past capital debt reflecting a re-profiling of capital schemes. 


A surplus on the Housing Revenue Account would enable a projected transfer of £7.2 million to the new build reserve and £2.5 million to the reserve for future capital at year-end. 


Progress against significant capital projects on the approved programme as outlined in section 7 of the report was underway.  The Council expected to spend £118.194 million on its capital schemes by the end of the financial year. 


The Council’s underlying need to borrow to finance the capital programme was expected to be £73.329 million by 31 March 2022, against an estimated position of £94.59 million. The lower underlying need to borrow was a result of slippage on both the approved and provisional capital programme as detailed in paragraphs 7.3 to 7.6 of the report.


The Council held £130 million of investments and £271 million of external borrowing on 31 January 2021, which included £192.5 million of HRA loans.  Officers confirmed that the Council had complied with its Prudential indicators in the period, which had been set in February 2021 as part of the Council’s Capital Strategy.


In considering this report, the Committee made the following comments:


·       In response to a question in relation to expenditure in the current year on the proposed Guildford Park Road development in the HRA capital programme, the Director of Resources confirmed that a small amount of expenditure on the project was forecast for this financial year.  The project was progressing and had been redesigned to omit the car  ...  view the full minutes text for item 24