Agenda item

The Service Manager (Strategic Finance) introduced the report which presented the 2024/25 Provisional outturn and the 2024/25 draft statement of accounts. She highlighted the report’s key points, advising that variances had been monitored and reported to Members throughout the year.

The Service Manager (Strategic Finance) referred to Appendix B, which showed the significant variances against net cost of services compared to the amounts reported at Quarter 3. She said that variances not previously reported were shown at the bottom of this appendix.

The Service Manager (Strategic Finance) said that reviews of Minimum Revenue Provision (MRP) and capitalisation of interest were completed in Quarter 4 of 2024/25, adding that the impact of these had resulted in reductions in expenditure against the budgets of £281k and £340k respectively. She said that £4.7m of reserves had been utilised to fund expenditure in 2024/25, and of this £3m was used to fund capital works at BEAM and £1.8m funded the loss in investment in the Lothbury Property fund (which had been funded from a reserve specifically set aside for this purpose).

The Service Manager (Strategic Finance) drew Members attention to Table 3 in the report which showed the capital outturn position. She said that £7m was spent in 2024/25 against a budget of £19.15m giving a variance of just over £12m. She added that carry forward budgets of just under £9m were approved as part of the 2025/26 capital programme in February 2025, with Members asked to approve an additional £358k of carry forwards, required in relation to schemes where expenditure has been reprofiled to 2025/26, or where retentions were still to be paid.

The Service Manager (Strategic Finance) said that the 2024/25 draft statement of accounts were included at Appendix D, which were published in line with the statutory deadlines, and which Members were requested to note. She said that officers were working with Azets to complete the audit of these accounts by the 27 February 2026.

The Chair thanked the Service Manager (Strategic Finance) for the report.

Councillor Deering referred to paragraph 3.3 of the report and sought further clarity in relation to the loss on the Lothbury property fund.

The Service Manager (Strategic Finance) said that the Council had equally invested a total of £20m of surplus income into two property funds in 2015, which gave the best return, with interest above that given elsewhere at that time. She said that the terms of entry for both of these funds had since changed, causing lots of investors to disengage, and assets within the fund to be sold – she added that the interest received from the fund exceeded the ‘loss’, which had been caused by units within the fund decreasing since their purchase.  

It was moved by Councillor Willcocks and seconded by Councillor Nicholls that that the recommendations, as detailed, be approved. After being put to the meeting and a vote taken, this motion was declared CARRIED. 

RESOLVED – that (A) the general fund revenue outturn of £132k overspend to be funded from the general reserve, and;

(B) that the capital outturn position and approve carry forward budgets of £358k be noted, and;

(C) that the 2024/25 draft statement of accounts be received.