Agenda item

The Committee are invited to consider the report and to make any appropriate recommendations to Cabinet.

In presenting the report, the Group Accountant explained that the report set out in summary the revenue outturn of 2014/2015 for the General Fund (council tax accounts).  The report showed details of the major differences between actual costs/income and the revised estimates for 2014/2015 reported in February 2015 monitoring report.

The Committee was advised that the accounts showed actual Borough spend of £18,781,895 which was, after the transfer to reserves, £80,445 less than the February Revised Estimate for 2014/2015.  The additional saving would be held within the General Fund balance and be carried forward to 2015/2016.

The Group Accountant explained that the Council’s continuing strategy was to identify budget savings in year, as part of the monitoring process and at year end.  The savings would then be transferred to the General Fund Balance for use in future years.

Members’ attention was drawn to the following sections of the report:

·        Final Outturn 2014/2015.

·        The major differences in the revised Estimates and the actual costs.

·        Business Rates Retention Scheme Outturn for 2014/2015.

·        General Fund Working balance.

In response to questions from Councillor Gourlay regarding capital expenditure, the Chief Executive explained that within the Central and Community Service budget, an allocation was made for Disabled Facilities Grants.  The Borough Council met the cost of adaptations in order to enable the occupier to remain living at home.  Such adaptations could include the installation of a stair lift, ramps, etc.  The Chief Executive advised that the premises, however, were not in the ownership of the Borough Council.

Following further questions from Councillor Gourlay on the advertising budget for Homechoice, the Assistant Director explained that the savings achieved had been due to using alternative methods of advertising which proved more cost effective, e.g. on line rather than in the local press.

Councillor Blunt asked for clarification on REFCUS.  The Assistant Director explained that REFCUS was Revenue Expenditure Funded from Capital Under Statute.  The Committee was informed that capital expenditure that did not result in a new or enhanced asset in the Authority’s accounts.  The Assistant Director gave an example of the Disabled Facilities Grant made to individuals which were charged to the Income and Expenditure Account and reversed out as part of the Financing Adjustment.

In response to further questions from Councillor Blunt regarding the approval process for Disabled Facilities Grant, the Chief Executive provided an overview of the process which was means tested.

In response to questions from Councillor Devereux regarding reserves, the Group Accountant explained that the Council had a Reserves policy which set out the maximum balances in reserves.  The transfer to reserves was presented to Management Team, the Audit and Risk Committee and details were included in the Monthly Monitoring Report available to all Members.  The Committee was informed that the majority of reserves were earmarked for specific projects and gave an example of resurfacing of the Council’s car parks.

Councillor Devereux asked how real savings were segregated from deferred spend.  The Assistant Director referred to the Introduction to Finance training session which had been held on 4 June, when those present had been informed of the links on the Council’s Intranet relating to the February Cabinet report which had set out the reserves and balances.  A link had also been provided on Financial Regulations – Guidelines on transfer to reserves.  In conclusion, the Assistant Director explained that the Statement of Accounts would be presented to the Audit and Risk Committee in September which would provide more details on reserves.

Councillor Gourlay referred to Disabled Facilities Grants and asked what happened in the event of a death or a person moving to an alternative property.  In response, the Chief Executive explained that work was being undertaken to establishing a Norfolk-wide Adaptations Housing Register to match up people’s needs to a property rather than taking out previously installed items.  However, it was highlighted that it was not always possible to achieve a match and in the case of a death it was possible than other members of the family remained in the property. 

In response to further questions from Councillor Gourlay regarding a claw back condition when the property was sold to recover any equipment, etc, the Chief Executive explained that he did not have the information to hand, but would email a response direct to the Panel.

Councillor Wareham referred to properties in the private rental market and asked if the consent of the landlord was required to undertake adaptations work.  In response, the Chief Executive explained that the consent of the landlord would be required and that when a tenant vacated a property it was the responsibility of the landlord to return items to the Council.  In some cases, ramps and stair lifts were returned to the Council.

The Chairman, Councillor Humphrey commented that the returned items may not be in a suitable condition to be re-used and in some cases the costs involved to remove an item could outweigh the cost of installing a new item.

In response to questions from Councillor Devereux regarding the Council’s Pension Scheme, the Assistant Director explained that in April 2014 Cabinet made a payment of £3.1m to the Pension Fund.  The original target in 2014/2015 assumed a payment of £0.9m which would be followed by two further annual instalments of £1.2m in 2015/2016.  The advance payment made in April 2014 saved the Council £176,000 in interest payment to the fund over the period of the Financial Plan 2014 – 2017.

The Assistant Director advised that the valuation of the Pension Fund and detailed information would be included in the Statement of Accounts and presented to the Committee in September 2015.

In response to questions from Councillor Middleton regarding the Pension Fund, the Assistant Director explained that the calculation of the pension stabilisation payment was made on a 3 yearly basis.  When the revaluation of the Pension Fund took place, the Council would look to see if it would be advantageous to make an advance payment for a further 3 years.

RESOLVED: That the Panel support the recommendations to Cabinet as follows:

It is recommended that Cabinet approves:

1)            The revenue outturn and proposed transfers to reserves for 2014/2015.