7 REVENUE BUDGET 2021/22 - END OF AUGUST 2021 REVIEW PDF 114 KB
Cyflwynwyd gan: Cllr. Ioan Thomas
Additional documents:
Decision:
To accept the report on the end of
August 2021 review of the Revenue Budget, and consider the latest financial
position regarding the budgets of each department / service.
It was noted that the financial
impact of Covid-19 remained in 2021/22, which was a combination of additional
costs, income losses and a slippage in the savings programme, as the Council
had given priority to protecting the health and lives of the people of Gwynedd
in response to the crisis.
It was noted that the Welsh
Government's Covid support system via the hardship
fund continued, but this did not address overspend because of slippage in the
savings programme.
It was noted that there was significant
overspend in the Adults, Health and Well-being
Department and the Highways and
Municipal Department this year, whilst there was a marked improvement in the
projections for the Children and Families Department.
The following recommendations and
financial virements (as outlined in Appendix 2) were approved.
• On Corporate budgets, that:
¾ An underspend of (£285k) relating to
capital costs is earmarked to a fund to finance the capital programme.
¾ A net underspend of (£1,957k) on
Corporate budgets goes to the Financial Strategy Support Fund to assist in
dealing with the financial challenges facing the Council, particularly so due
to the Covid crisis.
Minutes:
The item was presented by Cllr Ioan Thomas.
RESOLVED
To accept the report on the end of August 2021 review of the
Revenue Budget, and consider the latest financial situation regarding the
budgets of each department/service.
It was noted that the financial impact of Covid-19
continued in 2021/22, which was a combination of additional costs, income
losses and a slippage in the savings programme, as the Council had given
priority to safeguarding the health and lives of the people of Gwynedd in
response to the crisis.
It was noted that the Welsh Government's Covid support system
via the hardship fund was continuing, however, it did not address overspend due
to a slippage in the savings programme.
It was noted that there was significant overspend in the
Adults, Health and Well-being Department and the Highways and Municipal
Department this year, whilst there was a significant improvement in the
projections of the Children and Families Department.
The following recommendations and financial virements (as
outlined in Appendix 2) were approved.
• On Corporate budgets, that:
¾
An underspend of (£285k) relating to
capital costs was earmarked to a fund to finance the capital programme.
¾
A net underspend of (£1,957k) on
Corporate budgets to go to the Financial Strategy Support Fund to assist with
the financial challenges facing the Council, particularly due to the Covid
crisis.
DISCUSSION
The report was submitted, noting that it detailed the
latest review of the Council's revenue budget, along with the projections for
the end of the financial year. It was
highlighted that there had been a significant financial impact on the Council
as a result of Covid-19, with a combination of additional costs together with
income losses. It was explained that the
Council made monthly applications to reclaim costs from the Welsh Government's
Hardship Fund.
Back in January it was stated that measures had been
taken to draft an amended programme of savings for 2021/22, however, it was
explained that a delay in realising savings continued in some areas, with a
delay as a result of the crisis an evident factor.
Attention was drawn to the principal matters and it was
noted that the department anticipated an overspend of £1.4 million in the
Adults Department, with a failure to realise savings worth £855k being an obvious
factor of the overspend. It was stated that Covid had had a substantial impact
on the department and £1.3 million had already been claimed from the Welsh
Government towards the additional costs for the period.
It was explained following the Council's decision to allocate £1.8 million in additional funding to the Children's Department in the 2021/22 funding cycle as well as abolish savings schemes to the value of £1.1 million it was highlighted that the current financial projections for the department were very promising. It was stated that overspending problems in the waste collection and disposal field continued in the Highways and Municipal Department. It was noted that there had been difficulties to realise savings in a number of areas to ... view the full minutes text for item 7
Awdur: Ffion Madog Evans