Agenda item

F Jump introduced the report and explained it was the responsibility of the audit committee to look at the final outturn report, provide comments on the position and agree the final reserve movements for the year which are incorporated into the final financial position for the authority. She presented the highlights of the report and welcomed questions from the committee.

Councillor Symington questioned how we were going to manage the increasing pressures going forward.

F Jump agreed we were experiencing rising costs across the country and beyond in terms of all aspects of expenditure. She advised they had a really tight monitoring process for the capital programme so they were constantly reviewing it as more pressures become known. They will be reporting through the committee and when they feel that they need to perhaps look again at the capital programme and the approved financial envelope they will bring decisions to the committee for approval. She summarised it was very much a concern but they will be constantly reviewing the situation and members will be kept up to date as part of the financial monitoring process and decision making.

Councillor Townsend asked for more information on the contribution from the Covid-19 Hardship Reserve, to support the cost of the Council Tax Hardship relief scheme.

F Jump advised they received a grant from central government at the end of the last financial year to support the provision of council tax relief to local residents. There was an understand on that grant at the end of the financial year which under accounting guidelines was carried forward into the current financial year and that was then used to fund that particular scheme into 21/22.

Councillor Townsend questioned if it had been spent or if it’s a general reserve.

F Jump responded that the majority has been spent but there was around £100k leftover so a decision will need to be taken as to how that’s applied in 2022/23.

Councillor Symington queried if F Jump wished to comment on the difference between the budgeted movement and the net reserve movement that actually occurred.

F Jump explained we were expecting a reserve movement of £1.2m transfer into the council’s reserves but what we’ve actually seen is a transfer of £5.9m. She said at the time the reserve movement budgets were set they wouldn’t have known what those funding equalisation reserve movements were going to be and that’s why we’re seeing such a large difference.

Councillor Townsend noted two other relatively material moves relating to the saving efficiencies reserve and the Dacorum development reserve and asked for comments on those.

F Jump replied there had been a number of additional reserve movements in year but all of those have been put forward to Cabinet and Council to approve during the year. She said she didn’t have a breakdown to hand but members could be assured that any reserve movements had been subject to other committee reports before they’ve been included in the position.

Outcome

1.   The Committee reviewed and noted the final financial outturn position for 2021/22.

2. The Committee approved the following reserve movement for 2021-22:

A draw- down of £11.149m from the Funding Equalisation Reserve to support statutory payments in respect of the business rates deficit on the Collection Fund in 2021-22.

A contribution of £6.856m to the Funding Equalisation Reserve to support statutory

payments in respect of the business rates deficit on the Collection Fund in 2022-23.

A contribution of £0.448m from the Covid Hardship Reserve, to support the cost of the Council Tax Hardship relief scheme in 2021-22.