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Agenda Item No. 3

 

THE VALE OF GLAMORGAN COUNCIL

 

COUNCIL MEETING: 22 JULY 2015

 

REFERENCE FROM CABINET:  13 JULY 2015

 

C2845       CLOSURE OF ACCOUNTS 2014/15 (L) (SCRUTINY COMMITTEE – CORPORATE RESOURCES) -

 

Cabinet was informed of the provisional financial position of the Council for the 2014/15 financial year.

 

The Council on the 5 March, 2014 (minute no.884) agreed the Authority’s budget requirement for 2014/15. This represented budgeted net expenditure for the Authority of £214.331m. Total expenditure was to be financed by Revenue Support Grant (£118.125m), National Non-Domestic Rates contribution (£39.516m) and Council Taxpayers (£56.69m). The Standard Spending Assessment (SSA) for the year was £215.041m.

 

The revenue budgets had been amended and approved by Cabinet during the financial year, however, they remained at the same overall net level as the original budget of £214.331m, which was after the planned use of £2.5m from the Council Fund.  The actual expenditure for 2014/15 was £214.331m, which was a breakeven position and followed a transfer of £1.419m from the Council Fund.

 

Appendix 1 attached to the report amended the revised budgets to take account of the following adjustments. There was no overall effect on the Authority.

 

IAS 19 Retirement Benefits -The purpose of this Standard was to ensure that the operating costs of providing retirement benefits to employees were recognised in the accounting period in which they were earned by the employees. Figures provided by the actuary differed from that estimated and the movements needed to be incorporated into the accounts.

 

Asset Rents - This charge could vary each year due to an increase / decrease in the valuation of assets. The movements needed to be incorporated into the accounts.

 

Recharges - Related to movements in charges between internal Council services.

 

Carbon Reduction Commitment Scheme - The scheme required the Authority to report on carbon dioxide emissions associated with the use of electricity and gas within its buildings. Payment was then made to the Environment Agency to cover the charge in respect of those emissions. The original budget to cover the estimated cost was included in Policy; however it had been re-distributed to the relevant services.

 

The below table compared the amended budget and the actual expenditure for the Authority:

 

Service

 

Year - 2014/15

Amended Revenue Budget

Total Provisional Actual

Variance +Favourable  () Adverse

 

       £’000

          £’000

             £’000

Learning and Skills

 

 

 

Education and Schools

93,026

93,036

(10)

Libraries

2,567

2,560

+7

Adult Community Learning

254

252

+2

Youth Services

1,076

1,063

+13

Catering

1,792

1,772

+20

 

 

 

 

Social Services

 

 

 

Children and Young People

14,358

14,343

+15

Adult Services

36,830

36,864

(34)

Business Mgt & Innovation

308

300

+8

YOS

672

669

+3

 

 

 

 

Visible Services and Housing

 

 

 

Environment and Visible Services

18,355

18,351

+4

Parks and Ground Maintenance

3,702

3,696

+6

Building Services

30

29

+1

General Fund Housing

1,446

1,436

+10

 

 

 

 

Development Services

 

 

 

Public Protection

2,525

2,531

(6)

Private Housing

11,106

11,089

+17

Planning and Transportation

5,225

5,213

+12

Leisure

3,589

3,591

(2)

Economic Development

864

878

(14)

 

 

 

 

Managing Director

 

 

 

Resources

(12)

(28)

+16

Corporate and Customer Services

49

49

0

General Policy

19,069

20,246

(1,177)

 

 

 

 

Total Net Budget

216,831

217,940

(1,109)

Council Tax Surplus

0

(2,190)

+2,190

Use of Reserves

(2,500)

(1,419)

(1,081)

GRAND TOTAL

214,331

214,331

0

 

The main reasons for the variances were set out in the main body of the report. 

 

The overall position on the revised 2014/15 Capital Programme was a variance of £4.9m. The statement at Appendix 3 as attached to the report detailed the outturn by scheme.  To allow project managers to have fully approved capital budgets, capital slippage from 2014/15 to 2015/16 was approved by Managing Director's Emergency Powers on 16 June, 2015.

 

This was a matter for Executive and Council decision

 

RESOLVED –

 

(1)       T H A T the report and the financial measures taken and proposed be approved.

 

(2)       T H A T an increase in the Capital Programme of £600k for the Barry Regeneration Partnership scheme, for a 2 year period commencing in 2015/16 and funded from the Capital Commitment reserve, be referred to Council for approval. 

 

(3)       T H A T an increase in the Capital Programme of £1m for highways resurfacing and maintenance works, which would be carried out over a 2 year period commencing in 2015/16 and funded from the Visible Services reserve, be referred to Council for approval.

 

Reasons for decisions

 

(1)       To approve the report and the financial measures taken and proposed.

 

(2&3)  To amend the Capital Programme and to seek Council approval.

 

 

Attached as Appendix - Report to Cabinet: 13th July 2015

 

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