Issue - decisions

Matter for Decision: The report identified considerable balances held within the Council’s accounts, earmarked for specific uses in the future. In the current challenging financial environment, they are a valuable resource that could be used to support the Council’s budget in the short term, and enable transformational projects to deliver savings in the longer term. 

 

Decision of the Executive Councillor for Finance and Resources 

 

The Executive Councillor resolved to:

 

i.       Approve the principles to be applied to the detailed review of General Fund earmarked reserves and specific funds (para 3.6 of the officer’s report).

 

ii.     Agree that the results of the review be reported and actioned in the budget setting report in February 2015.

 

iii.   Agree in principle to the setting up of an Invest to Save fund, subject to the development of terms of reference and operating procedures (para 3.7 of the officer’s report).

 

iv.   Note that the requirement for a contingency budget to act as a safety net will be considered (para 3.9 of the officer’s report).

 

Reasons for the Decision: As set out in the officer’s report

 

Any alternative options considered and rejected: As set out in the officer’s report

 

Scrutiny Considerations:

 

The committee received a report from the Head of Finance.

 

In response to member’s questions the Head of Finance said the following:

 

i.       The report proposed fundamental changes to the Council’s financial processes and the way funding was managed.

ii.     The report proposed moving from the ongoing availability of funds to an annualised budget setting process. 

iii.   It was important to prepare the Council for a time when less funding was available.

 

In response to member’s questions the Executive Councillor for Finance and Resources said the following:

 

i.       The level of earmarked and specific funds stood at £24m. This was significantly higher than other local authorities of similar size in the East of England.

ii.     These funds could be used to support the Council’s current budget challenges and be bid for only when required.

iii.   Acknowledged that there was a need to retain funds for ‘a rainy day’ but felt that over the years there had been a lack of transparency on how these funds were spent and allocated.

iv.   Agreed that earmarked funds did provide space and time for services to develop bid proposals, but felt that this could be retained with the new system.

 

It was agreed that the recommendations would be voted on separately.

 

The Scrutiny Committee considered the following recommendation and endorsed it by 4 votes 3:

 

-        Approve the principles to be applied to the detailed review of General Fund earmarked reserves and specific funds (para 3.6 of the officer’s report).

 

The Scrutiny Committee considered the following recommendations and endorsed them unanimously:

 

-        Agree that the results of the review be reported and actioned in the budget setting report in February 2015.

 

-        Agree in principle to the setting up of an Invest to Save fund, subject to the development of terms of reference and operating procedures (para 3.7 of the officer’s report).

 

-        Note that the requirement for a contingency budget to act as a safety net will be considered (para 3.9 of the officer’s report).

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

 

Not applicable.