Agenda item

Submitted by Cllr Ioan Thomas  

DECISION

Resolved:

1.1  To note the final financial position of the Council’s departments for 2019/20.

1.2  To approve the amounts to be carried forward (the “Revised Over/ (Under) Spend” column of the summary), namely:

1.3  To approve the following recommendations and virements (as outlined in Appendix 2) -

·         The Children and Families Department to receive a one-off financial assistance of £3,259k to restrict the level of overspend that will be carried over by the Department to £100k, to support them to move on to face the challenges of 2020/21.

·         The Highways and Municipal Department to receive a one-off financial assistance of £447k, which limits overspend that will be carried forward by the Department to 2020/21 to £100k, to support them to face the challenges of 2020/21.

·         In accordance with the Financial Regulations, it is recommended that the usual practice is adhered to in order to allow the Environment Department to keep (£100k) of their underspend, and to move (£70k) which is the sum above (£100k), to be used to support the departments that have overspent in 2019/20.

·         On Corporate budgets, use (£1,012k) of the net underspend to assist the departments that have overspent in 2019/20.

1.4  To approve the virements from specific reserves and provisions:

·         as outlined in Appendix 3 following a review of reserves and provisions, harvest (£801k) from reserves and (£24k) from provisions using the total of (£825k) to assist the departments that have overspent in 2019/20.

·         Finance the rest of the departmental overspend from (£1,799k) from the Council's Financial Strategy Reserve.

DISCUSSION

The report was submitted, noting that it elaborated on the Council's expenditure in 2019/20. Fields where there had been a substantial difference following the previous report on accounts were highlighted. It was emphasised that substantial pressures faced the field of care and the field of waste, along with difficulties by some departments to achieve savings.

It was stated that there had been an improvement in the situation of the Adults Department by the end of the financial year, and that this was the result of receiving and re-directing late grants and using one-off finance of £420k. It was noted that there had been a further increase in the overspend tendency by the Children and Families Department, with £3.4 million overspend by the end of the financial year. It was emphasised that the situation was not unique to Gwynedd and that it was a worrying situation that could be seen nationwide. It was added that additional funding of £2 million had been allocated to the Children and Families Department in 2020/21 to meet the increasing pressures.

It was highlighted there had been a reduction in the overspend level by the Highways and Municipal Department, but that the field of waste continued to be problematic. It was noted that the Environment Department had an underspend as well as the Corporate headings. It was added that the adequacy of funds had been reviewed at the close of the accounts and that £825 million of resources had been harvested. As a result, it would also be possible to transfer £1.799 million from the financial strategy reserve in order to bridge the gap and to balance the 2019/20 financial position. By doing this, it was added that the Council's general balances would not need to be used.

Observations arising from the discussion

¾  It was noted in autumn 2019 that school budgets by 2020/21 would be under threat, but the Cabinet was thanked for being prepared to protect the financial position of Gwynedd schools.

¾  In terms of the Adults Department, it was noted that its financial position in 2019/20 had improved as a result of late grants, and the need was emphasised for the Government to fund correctly and to not keep hold of the funding.

The likelihood was emphasised that the financial position for 2020/21 would be completely different