Agenda item

1.1 To note the final financial position of the Council’s departments for 2020/21.

 

1.2 To approve the amounts to be carried forward (the “Revised Over/ (Under) Spend” column of the summary in Appendix 1), namely -

 

 

DEPARTMENT	£’000
Adults, Health and Well-being	(100)
Children and Families	0
Education	(100)
Economy and Community	(100)
Highways and Municipal	0
Environment	(100)
Gwynedd Consultancy	(64)
Housing and Property	(75)
Corporate Management Team and Legal	(100)
Finance	(86)
Corporate Support	(100)

 

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

 

·         The Children and Families Department to receive one-off financial assistance of £1,261k to cancel the overspend entirely, given the exceptional circumstances involving the crisis this year.

 

To allow the department to move on to face the challenges of 2021/22.

 

·         In accordance with the Financial Regulations, it is recommended that the usual practice is adhered to in order to allow the Education Department to keep (£100k) of its underspend, and to move (£159k) which is the sum above (£100k), to be used to support the department that has overspent in 2020/21.

 

 

 

·         To allow the Housing and Property Department to transfer (£848k) relating to corporate maintenance to the repair and maintenance fund to fund the expenditure in future.

·         In accordance with the Financial Regulations, it is recommended that the usual practice is adhered to in order to allow the Corporate Management Team to keep (£100k) of its underspend, and to move (£6k) which is the sum above (£100k), to be used to support the department that has overspent in 2020/21.

·         On Corporate budgets:

¾    use (£926k) of the Corporate net underspend to assist the Children Department that has overspent in 2020/21.

¾    that (£2,047k) of capital schemes that are to be funded from revenue to be transferred to a fund to allow the reprofiling of the resource.

¾    that £600k is released from the Council’s General Balances.

¾    That (£4,000k) is allocated to the Council's Transformation fund to support transformational and one-off work.

¾    That (£2,519k) is allocated to a fund for recovery arrangements post Covid19.

 

1.4 To approve the virements from the specific reserves as outlined in

Appendix 4 following a review of the funds, harvesting (£170k) from funds to assist the Children Department that has overspent in 2020/21.

 

The report was submitted by Cllr Ioan Thomas.

 

DECISION

 

1.1 To note the final financial position of the Council’s departments for 2020/21.

 

1.2 To approve the amounts to be carried forward (the “Revised Over/ (Under) Spend” column of the summary in Appendix 1), namely -

 

 

DEPARTMENT	£’000
Adults, Health and Well-being	(100)
Children and Families	0
Education	(100)
Economy and Community	(100)
Highways and Municipal	0
Environment	(100)
Gwynedd Consultancy	(64)
Housing and Property	(75)
Corporate Management Team and Legal	(100)
Finance	(86)
Corporate Support	(100)

 

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

 

The Children and Families Department to receive one-off financial assistance of £1,261k to cancel the overspend entirely, given the exceptional circumstances involving the crisis this year.To allow the department to move on to face the challenges of 2021/22.

 

• In accordance with the Financial Regulations, it is recommended that the usual practice is adhered to in order to allow the Education Department to keep (£100k) of its underspend, and to move (£159k) which is the sum above (£100k), to be used to support the department that has overspent in 2020/21.

 

 

 

• To allow the Housing and Property Department to transfer (£848k) relating to corporate maintenance to the repair and maintenance fund to fund the expenditure in future.
• In accordance with the Financial Regulations, it is recommended that the usual practice is adhered to in order to allow the Corporate Management Team to keep (£100k) of its underspend, and to move (£6k) which is the sum above (£100k), to be used to support the department that has overspent in 2020/21.
• On Corporate budgets:
• use (£926k) of the Corporate net underspend to assist the Children Department that has overspent in 2020/21.
• that (£2,047k) of capital schemes that are to be funded from revenue to be transferred to a fund to allow the reprofiling of the resource.
• that £600k is released from the Council’s General Balances.
• that (£4,000k) is allocated to the Council's Transformation fund to support transformational and one-off work.
• that (£2,519k) is allocated to a fund for recovery arrangements post Covid19.

 

1.4 To approve the virements from the specific reserves as outlined in

Appendix 4 following a review of the funds, harvesting (£170k) from funds to assist the Children Department that has overspent in 2020/21.

 

DISCUSSION

 

The report was submitted, noting that the report elaborated on the Council's expenditure in 2020/21. Attention was drawn to a summary of the final position of all departments seen in the report with the amounts to be carried forward at the end of the financial year in the “Revised Over/ (Under) Spend” column.

 

The main matters and fields where signficant differences were seen were highlighted. It was noted that the financial impact of Covid had been substantial for the Council, with £20m claimed from the hardship fund and Furlough by the end of the year. It was explained that, as a result of receiving numerous other substantial grants associated with Covid-19 late in the financial year, this meant that the financial position of 2020/21 had been transformed by the end of the year. It was noted that five departments had been overspending before allocating the compensation grants for Covid-19 from Welsh Government, but after the allocation of grants, it was only the Children and Supporting Families Department that was overspending finally. Nevertheless, it was noted that a reduction in the overspend to £1.3 million was due to  savings worth £688k that would not have been possible to achieve being deleted as well as receiving a Covid grant.

 

It was explained that there was a substantial improvement in the Adults Department's situation following savings that would not have been possible to achieve being deleted and slipped as well as general grant receipts in the final months of the year. It was noted that the effect of Covid-19 had had a substantial impact on the Adults, Health and Well-being Department, worth over £4.5 million by the end of the year.

 

In terms of the Highways and Municipal Department, it was noted that the increase was a combination of reducing expenditure, covid grant and general grants received and savings deleted. It was stressed that the waste field remained the main pressure on the department. It was detailed that the department had faced substantial additional costs relating to complying with regulations as a result of Covid-19 as well as loss of income in the commercial waste field. 

 

It was noted that, with regards to schools balances, that there had been an increase from £4.3m in 2019/20 to £10.7m in 2020/21 as a result of the impact of Covid-19 and various grants received. It was explained that, as a result of a review of the adequacy of the Council's specific reserves at the closure of accounts, £170k of resources had been collected. The decision was noted.

 

The Head of Finance Department thanked the staff for ensuring that the accounts were closed in a timely manner and whilst working from home. It was stressed that the underspend situation seen across the departments was also seen across other Welsh authorities. It was noted that, last year, the Council had been fortunate of the funds it had in reserve to fund schemes during the pandemic without certainty about grant funding. However, following the grant funding received, it was now possible for the Council to prioritise schemes from the transformation fund in order to make a difference to the services and citizens of Gwynedd.

 

Observations arising from the discussion

¾    The staff of the Department were thanked for their work in ensuring financial stability in Gwynedd.