|
Report to: |
Audit and Governance Committee |
||||||
|
Date: |
28 March 2024 |
||||||
|
Title: |
Budget Book 2024/25 |
||||||
|
Portfolio Area: |
Finance – Cllr J Brazil
|
||||||
|
Wards Affected: |
ALL |
||||||
|
|
|||||||
|
Urgent Decision: |
N |
Approval and clearance obtained: |
Y |
||||
|
|
|
||||||
|
|
|
||||||
|
Author: |
Pauline Henstock Carmen Bottrell |
Role: |
Head of Finance Practice Senior Accountant |
||||
|
Contact: |
Email: pauline.henstock@swdevon.gov.uk Email: carmen.bottrell@swdevon.gov.uk
|
||||||
|
Recommendations: That the Audit and Governance Committee: 1. Notes the content of the Budget Book for 2024/25. |
1. Executive summary
Attached is a copy of the Budget Book for 2024/25. This sets out the Council’s Revenue Budget for the year into the four Directorates of Customer Service and Delivery, Place and Enterprise, Strategy & Governance and Strategic Finance.
2. Background
The Budget Book compares the Budget for 2023/24 against the Budget for 2024/25. Cost pressures and savings which were set out in Appendix A of the Medium Term Financial Strategy (MTFS) and agreed as part of the budget process are shown in the highlighted ‘24/25 MTFS Adjustments’ column, with a note underneath.
A copy of the relevant MTFS appendix (Extract of the February 2024 Council report on the Budget) is shown in Appendix B of this report for information.
The Budget Book in Appendix A reflects the Revenue Budget for
2024-25 approved at Council on 15th February 2024.
Appendix B confirms that budget pressures amounting to £2,846,000 and savings and income generation of £1,460,000 were built into the 2024/25 base budget resulting in a net increase to the budget of £1,386,000. These movements in the base budget have been allocated to the relevant detailed lines in the 2024/25 budget book. For example, the income target for Treasury Management investment income has been increased by £800,000 for 2024/25, and this is shown in Cost Centre S6050 Interest and Investment Income.
In addition various presentational changes have been made to the 2024/25 budget shown in the ‘other adjustments’ column in the Budget Book. This aligns budgets to reflect current income and expenditure arrangements. These adjustments net to zero overall, as they are purely presentational.
Finally, capital charges (akin to a deprecation charge) have been realigned in 2024/25 to reflect the current position. This is a notional charge which is offset by the reversal of depreciation and therefore has no impact on the overall budget position.
3. Implications
|
Implications
|
Relevant |
Details and proposed measures to address |
|
Legal/Governance
|
Y |
The Council is legally required to set a Balanced Budget each financial year.
|
|
Financial Implications to include reference to value for money
|
Y |
There are no direct financial implications as a result of this report.
The Budget Book in Appendix A reflects the Revenue Budget for 2024-25 approved at Council on 15th February 2024.
The annual budget setting process will ensure the Council has arrangements in place to secure economy, efficiency and effectiveness in its use of resources.
On 14th December 2023, the Audit and Governance Committee considered an interim Auditor’s Annual Report from the Council’s external auditors, Grant Thornton. This gave commentary on the Council’s arrangements to secure economy, efficiency and effectiveness in its use of resources.
The report stated that ‘The Council has demonstrated an appropriate understanding of its role in securing economy, efficiency and effectiveness in its use of resources. Our work has not identified any significant weaknesses in arrangements.’
|
|
Risk |
Y |
The Council’s budget book sets out the income and expenditure budgeted for each service area. A prudent level of reserves is held by the Council to mitigate against financial risk.
|
|
Supporting Council Plan |
Y |
The budget book report supports all of the themes within the Council’s Plan 2024-2028 and includes the detailed revenue budgets for the year 1 (2024/25) delivery plan.
|
|
Climate Change – Carbon / Biodiversity Impact
|
N |
None directly arising from this report. |
|
Comprehensive Impact Assessment Implications
|
||
|
Equality and Diversity |
N |
N/a |
|
Safeguarding |
N |
N/a |
|
Community Safety, Crime and Disorder |
N |
N/a
|
|
Health, Safety and Wellbeing |
N
|
N/a |
|
Other implications |
N |
None
|
Supporting Information
Appendix A – Budget Book 2024/25
Appendix B – Budget Pressures and Savings 2024/25
Approval and clearance of report
|
Process Checklist |
Completed |
|
Portfolio Holder briefed |
Yes |
|
SLT Rep briefed |
Yes |
|
Relevant Exec Director sign off (draft) |
Yes |
|
Data protection issues considered |
Yes |
|
If exempt information, public (part 1) report also drafted. (Committee/Scrutiny) |
N/A |