Issue - meetings

Consideration was given to report of the Chief Officer Resources.

The Chief Officer Resources presented the report which outlined the draft outturn reserves position for 2020/2021 as at 31^st March, 2021, subject to audit.

The Officer went through the report and highlighted points contained therein.  The level of the Council’s general reserve disclosed in the statutory accounts for the financial year ended 31st March, 2020 was £6.399m which equated to 4.73% of net revenue expenditure (as reported in the 2019/2020 Revenue Outturn forms). The current 4% target level of general reserves was £5.414m.

Appendix 1 provided details of the total earmarked reserves held at the start of the 2020/2021 financial year (£8.272m) with actual reserve movements to the end of quarter 4 (31st March 2021).  The level of earmarked reserves was determined in accordance with the agreed reserves protocol. The level of earmarked reserves available to the Authority increased by £12.509m in 2020/2021.

The Officer confirmed that for those reserves utilised to fund actual expenditure to 31^st March, 2021 (£1.022m), details of the expenditure funded was provided in Appendix 2, and details of additional amounts transferred to earmarked reserves (£13.687m) are provided at Appendix 3.

A Member asked whether the Council would be audited in the future on how we spent the Welsh Government Hardship Funding, and potentially criticised for putting money into reserves.

In response the Chief Officer said Audit Wales would look at our level of reserves as part of their review of the end of year accounts.  She was confident that the funding received from Welsh Government was spent appropriately, and that the Council continued to respond and incur expenditure in relation to the Covid pandemic.  However, she pointed out that was not the reason for determining the level of reserves.

A brief discussion ensued when a Member referred to Appendix 2 and asked why the Sports Council of Wales expenditure of £29,700k for refurbishment of the changing rooms at Abertillery Sports Centre had come out of reserves.

In response the Corporate Director for Education explained that this was a bid submitted by Aneurin Leisure Trust, and under the terms of the commissioning arrangement the funding came to the Council and was held by us.  However, he confirmed that the project had been taken forward and the works were completed.

In response to a further question in relation to the expenditure for specialist commercial advice on Silent Valley, the Chief Officer Resources said it was felt prudent to establish a reserve whilst undertaking a review of Silent Valley and set aside some money for external independent advice whilst undertaking due diligence. 

A Member referred Appendix 2, page 82 and questioned the definition around Section 106 Agreements.

The Head of Community Services explained Section 106 Agreements could be used to support any additional or upgrading of the existing highway infrastructure required as part of a new school development.

The Corporate Director of Education also pointed out that Section 106 Agreements could also be used to support  ...  view the full minutes text for item 9