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FRM(22)16.01 Finance Report

FERMFERM Agendas & Papers Uploaded on April 8, 2022

FRM(22)16.01

MANAGEMENT ACCOUNTS – FINANCIAL REPORT FOR THE PERIOD

1 APRIL 2021 to 31 MARCH 2022

In addition to this overview Councillors will receive the following reports:

  • Cashbooks for five accounts: Barclays Current Account, Barclays Deposit Account, Lloyds Bank Treasurer’s Account, Ipswich Building Society Deposit Account and Ipswich Building Society Rent Deposit Account. These show income and expenditure at a detailed level and Members are asked to note the income and the payments made. Please note that the Suffolk Building Society Accounts have not changed since they were reported to Full Council in January 2022.
  • Income and expenditure by budget heading, which shows cumulative income and expenditure against budget heads for the period 1 April 2021 to 31 March 2022 and the position remaining.
  • Balance sheet as at 31 March 2022 – Please note that adjustments for accruals and prepayments will need to be made to arrive at the year-end position.
  • Bank reconciliation reports for all five accounts to note and review.

These financial reports, particularly the detailed income and expenditure report and Balance sheet, give a clear picture of the initial financial position at the end of the year 2021/22. For simplicity all figures are rounded.

Total income received in 2021/22 is £235,677, which includes CIL receipts transferred to an ear marked reserve of £106,600. Without CIL overall income was £129,077. The budgeted expected income for this year was set at £117,581. The additional income is from a mix of grants, hire agreements and donations.

Overall expenditure in 2021/22 is £206,601. Of this sum, £89,764 has been paid out of CIL and grants. Otherwise, expenditure amounts to £116,837. Budgeted expenditure for the year was set at £125,789.

Accruals and Prepayments

Before the final year end position is reached the following accruals and prepayments need to be recorded in the finance system:

£600 external audit fee

£350 internal audit fee (estimate)

£1,500 legal fees (estimate)

£2,400 Bredfield Road Bus Shelter invoice which has been received but payment withheld until the work is completed – £2,400 has been transferred to an EMR already so there is a net-nil change to the General Reserve balance

A prepayment of £462 was made in 2021/22 for estate charges April-June 2022.

In terms of cash resources as at 31 March, cash in the Council’s bank accounts totalled £584,179 made up as follows:

  • Barclays Bank Current Account £249,231
  • Barclays Bank Deposit Account            £209,358
  • Ipswich Building Society Deposit Account          £101,369
  • Lloyds Bank Treasurer’s Account              £  19,094
  • Ipswich Building Society Rent Deposit Account £    5,127

After adding as assets £5,235 in respect of the VAT due to us and deducting the rent deposit of £5,127 as liabilities the total liquid assets amounted to £584,287. Of that sum, £515,845 relates to the balance of CIL and grant monies held as a restricted reserve:

CIL reserves £126,914

EMR Melton Rd crossings project £35,755

EMR Landscaping & parking improvements £52,765

EMR Pavilion project £271,976

EMR Bins £2,000

EMR Divested land sinking fund £19,778

Hall Farm Road/SWT Events £3,633

Bredfield Road Bus Shelter £2,400 (includes £700 grant from SCC)

Fete EMR £624 (transferred from General Reserve)

Currently, there is a General Reserve sum of £68,442. Once the remaining year-end entries are input, it is estimated that the General Reserve will be around £66k.

There is a separate report on today’s agenda which proposes the creation of a Budget Risk Earmarked Reserve with an initial transfer of £5k from the General Reserve.  If this proposal is agreed, the final level of the General Reserve (£61k) at 31 March 2022 would be considered adequate by comparison with the Joint Panel on Accountability & Guidance (JPAG) guidance on reserves.

Recommendations

That members of FERM NOTE AND COMMENT on this report

 

Pip Alder

Clerk, Melton Parish Council

7th April 2022