Issue - meetings

Reporting Person: Eugene Walker

Eugene Walker introduced the item.  The report had been produced in part as the statement of accounts was due at the Standards and Audit Committee but had been delayed.

The report showed a £9 million overspend for the year.

A common theme between the item and the report at item ten, of overspend, exemplified the need for the Council to live within its means.  The Section 151 Officer exampled the size of the Council’s commercial estate, which had an income of £22 million which was larger than the income from Council Tax and Business Rates.  Eugene Walker noted that proportionality needed to be considered going forward due to the dependence on volatile income sources.

The report also showed issues with the sustainability of the Housing Revenue Account (HRA).  Work was being performed to ensure historic recharges to the HRA were correct and remained correct going forward.  Recent decisions by Council over Sheerwater would also help ensure sustainability of the HRA by reintroducing properties for rental.

Clarity was sought on the NVH contract termination.  Officers explained that an accounting error occurred in the 2021/22 year where a figure was reported incorrectly but then corrected in the 2022/23 year.

Officers confirmed that a review of how rental drops from tenancy changes and incentives offered to commercial tenants were amortised was underway.

It was recognised that the Council lacked the processes required to accurately forecast performance of its commercial estate and needed to be addressed.

Resolved

That the report be noted.

Reporting Person – Eugene Walker

The Executive received a report which set out the General Fund and HRA Outturn for 2022-23.  It was explained that the provisional outturn formed the basis of the Annual Statement of Accounts.

Following a question regarding Table 3.0 in the report relating to interest charges of some £5.5m in the HRA account, the Executive was advised that the interest charges related to long term historic loans on the HRA.  It was further explained that the majority of the capital investment related to the 2012 self-financing settlement, however the HRA had borrowed more recently in respect of the Hale End Court development.

The Leader highlighted the positive news that, following the decision made on the future of Sheerwater by the Council at its last meeting, 106 homes would go back into the HRA in 2024-25.

RESOLVEd

the reported outturn position be noted.

Reason:   To analyse the outturn position for the General Fund and Housing Revenue Account for financial year 2022/23.