Agenda item

To consider the 2021/2022 Financial Outturn Report.

Resolved:-

1.1 Receive the financial outturn reports of the Capital Programme (Appendix D), Key Performance Indicators (Appendix E), each service area (Appendices F to L), Housing Revenue Account (Appendix M), Schools (Appendix N), and Treasury Management (Appendix O) and refer them to the Budget and Corporate Scrutiny Management Board for consideration and comment.

1.2 Approve the allocation of £0.141m to Sandwell Children’s Trust to fund Covid-19 pressures, which is in addition to the transfers made during the year and represents total funding of £1.124m from the Covid Emergency Grant in 2020/21, as reflected within the Children’s Services Outturn report (Appendix 1K).

1.3 Approve the Revenue Contributions to Capital Outlay (RCCO) and reserve transfers of £5.542m set out on Appendix 1 and Appendix 4.

1.4 Note the new grants that have been received during the final quarter of 2021/22 as shown on Appendix 5.

                  Consideration was given to the financial outturn reports of the Capital Programme, Key Performance Indicators, each service area, Housing Revenue Account, Schools, and Treasury Management and approval sought to refer them to the Budget and Corporate Scrutiny Management Board for consideration and comment.

                  Approval was sought for the allocation of £0.141m to Sandwell Children’s Trust to fund Covid-19 pressures, which is in addition to the transfers made during the year and represents total funding of £1.124m from the Covid Emergency Grant in 2020/21, as reflected within the Children’s Services Outturn report.

                  Approval was also sought for the Revenue Contributions to Capital Outlay (RCCO) and reserve transfers of £5.542m.

                  Details of new grants that have been received during the final quarter of 2021/22 were noted.

                  The Chair of the Budget and Corporate Scrutiny Management Board asked what steps were being taken by the Council to ensure more robust financial management of Sandwell Children’s Trust and its budget. The Cabinet Member for Finance and Resources stated that the Council had representatives on both the Operational and Strategic Partnership Boards at which the budget position was discussed. The Head of Finance Business Partnering for People also worked closely with the Finance team to understand the latest budget projections and provide support. The latest MTFP position that was discussed as part of the budget setting process for 2022/23 showed that the Trust would have a surplus budget by the end of 2023/24.

                  A further question was asked on what measures would be taken by the Council to account for the impact inflationary pressures would have on the current financial year. The Cabinet Member stated that Finance teams were working on estimating the additional cost of high inflation currently and these would be factored into the budget planning process for 2023/24 and the review of the MTFP.

                  The Chair of the Budget and Corporate Scrutiny Management Board also asked whether the Council’s current financial plans account for inflation remaining high beyond 22/23. The Cabinet Member for Finance and Resources stated that the current MTFP for the council did not account for inflation remaining as high as it currently was as this was unknown at the time that MTFP was updated. Officers were now reviewing the MTFP and would factor in the impact of high inflation, albeit with a lot of uncertainty about how long the high inflation would continue for and at what level.

                  Reasons for Recommendations

Section 151 of the 1972 Local Government Act required the Chief Financial Officer to ensure the proper administration of the council’s financial affairs. Budgetary control, which included the regular monitoring and reporting of budgets was an essential element in discharging this statutory responsibility. The recommended treatment of the year end variances supports the financial sustainability of the

council.

Alternative options considered

Cabinet could vary the proposed transfer to the Sandwell Children’s Trust, the use of revenue to fund capital costs (RCCO) and the proposed treatment of the year end variances from budget.

                           Agreed:-

(1)     that the financial outturn reports of the Capital Programme, Key Performance Indicators, each service area, Housing Revenue Account, Schools, and Treasury Management be received and referred to the Budget and Corporate Scrutiny Management Board for consideration and comment;

(2)     approve the allocation of £0.141m to Sandwell Children’s Trust to fund Covid-19 pressures, which is in addition to the transfers made during the year and represents total funding of £1.124m from the Covid Emergency Grant in 2020/21, as reflected within the Children’s Services Outturn report;

(3)     approve the Revenue Contributions to Capital Outlay (RCCO) and reserve transfers of £5.542m as now submitted;

(4)     note the new grants that have been received during the final quarter of 2021/22 as now submitted.