Decision details

Reserves, Provisions and Balances 2021-2022

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To report on the Council’s resources currently held as earmarked reserves, provisions and general balances as at 31 March 2022, taking account of the outturn position for 2021-2022.

Decision:

1.      That the transfers (to)/from earmarked reserves, provisions and general balances as detailed in tables 2, 3 and 4 of the report be approved.

 

2.      That expenditure from provisions for their purposes as set out in Appendix 3 and 4 to the report, up to the value held in each provision as at 31 March 2022 be approved.

 

3.      That authority be delegated to the Cabinet Member for Resources and Digital City, in consultation with the Director of Finance, to allocate funds from all reserves which fall within the Corporate remit as detailed in Appendix 1 and 2 to the report.

 

4.      That authority be delegated to the Cabinet Member for Resources and Digital City and the relevant Cabinet Member, in consultation with the Director of Finance and the relevant Director/Deputy Director to allocate funds from all other reserves as detailed in Appendix 1 and 2 to the report.

 

5.      That the level of the Council’s earmarked reserves, provisions and general balances as at 31 March 2022 and the purposes for which they are being held, as detailed in Appendix 1, 2, 3 and 4 to the report be noted.

 

6.      That it be noted that the reserve strategy is currently being reviewed in light of Our City Our Plan priorities and the budget challenge facing the Council over the medium term, and an updated Reserves Strategy would be reported back to Cabinet at a future meeting.

 

7.      That it be noted that the relevance and adequacy of earmarked reserves and general balances would be reviewed as required by the Constitution during the 2023-2024 budget setting process.

 

8.      That it be noted that allocation of funding from all earmarked reserves would be reported to Cabinet (Resources) Panel in the scheduled quarterly performance and budget monitoring reports. 

 

9.      That it be noted that the Resources and Equality Scrutiny Panel would  scrutinise the use of reserves as part of the budget setting process as in previous years.

 

10.   That it be noted that the Director of Finance considers that the overall level of all reserves, provisions and balances is sufficient to meet the likely level of obligations to be met from reserves, provisions and general balances in the short term.

 

11.   That it be noted that whilst the positive General Fund outturn position during 2021-2022, and the resulting adjustments to reserves, would help to support the Council’s short term financial position, it does not address the challenging financial position that the Council finds itself in over the medium term; namely identifying further projected budget reductions which were estimated at £12.6 million in 2023-2024, rising to £25.8 million over the medium term to 2025-2026 when reported to Full Council in March 2022. 

 

12.   That it be noted that the figures quoted in the report are still subject to statutory audit by Grant Thornton as part of the 2021-2022 accounts closedown process.

 

Report author: Mohammed Hasan

Publication date: 16/06/2022

Date of decision: 15/06/2022

Decided at meeting: 15/06/2022 - Cabinet

Effective from: 21/06/2022

Accompanying Documents: