Issue - meetings

That the report be noted and:

1.    The movement on earmarked reserves as set out in section 9 of the report be approved

2.    The capital slippage into financial year 2020/21 as set out in Appendix C of the report be reviewed and approved

Resolved to recommend:

3. The approval of a supplementary capital budget  of £300k in 2020/21 to complete works to the Berkhamsted multi-storey car park

Decision

That the report be noted and:

1. The movement on earmarked reserves as set out in section 9 of the report be approved
2. The capital slippage into financial year 2020/21 as set out in Appendix C of the report be reviewed and approved

Resolved to recommend:

3. The approval of a supplementary capital budget of £300k in 2020/21 to complete works to the Berkhamsted multi-storey car park

Corporate objectives

Ensuring efficient, effective and modern service delivery.

Deputy Section 151 Officer

This is a Deputy S.151 Officer report

Monitoring Officer

No comments to add to the report

Advice

Councillor Elliot introduced the report to members. The report summarises the financial performance in 2019-20 and details other minor accounting changes. The final audited accounts will be presented to the Audit Committee for scrutiny and approval in September prior to final publication. The General Fund shows an overall balanced budget with small variances in different services areas as outlined in the report. The Housing Revenue Account has an in year surplus of £884k and the Capital Programme is broadly on track and there is a projected rephrasing of £0.4 million into the 2020/21 General Fund. Due to the current crisis with Covid-19, next year may show a very different set of accounts with many challenges up ahead.

Councillor Birnie referred to page 11, paragraph 4.2 and asked for further details about the £115k of additional insurance costs relating to uninsured losses.

N Howcutt explained that the council undertakes its own insurance provision for minor claims and for significant claims, the council has external insurance. For the small claims, this is covered from reserves which is far more cost effective than having external insurance for all eventualities because of the large premiums.

Councillor Birnie asked if the £115k was multiple small claims or one claim.

N Howcutt confirmed that this total was made up of all insurance claims under £10k.

Councillor Birnie then referred to page 31, paragraph 5.1 relating to the vacancy pressure within the Clean, Safe and Green team. He asked if it would be better to increase the budget for staff vacancies in this team.

J Deane said the vacancy factor comes from balancing budgeting experience with what experience has shown in the past. The council budgets on a post by post basis and experience shows that at the end of the financial year, the council comes in at 5% under budget. This process gives an easy way to show what is a realistic saving over the year when taking all vacancies across the council into account.

Councillor Birnie asked if the external auditors were comfortable with this approach.

N Howcutt confirmed they were comfortable with this approach because it is part of the budget setting process and uses sound reasoning to justify. It is also reviewed every year.

Recommendations agreed.