A MORE than £3m budget surplus is being reported for Merthyr Tydfil Council in the last financial year.
A budget monitoring report going before cabinet on Wednesday, November 6, shows that for 2023-24, the council is provisionally reporting a net revenue budget surplus of £3.092m.
This is subject to audit and it’s being recommended that the council transfers this surplus to the budget reserve.
General reserves at March 31, 2024 stood at £5.723m, which is 3.75% of the council’s budgeted net revenue spend for 2023-24.
Budget savings from the corporate vacancy factor, which are savings resulting from the time between posts becoming vacant and then re-filled, have exceeded the budgeted £1.7m by £145,000.
The report also said a contribution from the budget reserve of £5.5m was drawn down in full in line with the approved budget strategy.
The final audited revenue out turn position will be reported to council when the external audit of the accounts is done by Audit Wales.
As for this financial year, a net revenue budget deficit of £647,000 is being forecast, as at the end of the second quarter of the year, which covers the period between April 1 and September 30.
It includes projected deficits of £780,000 for education, £793,000 for economy and public protection, £785,000 for neighbourhood services and £146,000 for governance and resources but there are projected budget surpluses of £331,000 for social services and £1.061m for corporate.
The council is also forecasting a surplus against the council tax collection fund of £465,000.
The report recommends managers urgently address projected budget deficits, identifying all possible measures to offset projected deficits.
The report said: “Regular planned budget monitoring is crucial in ensuring effective financial stewardship and accountability and is governed by the Chartered Institute of Public Finance and Accountancy’s recommended best working practices.
“It is considered critical that budget monitoring arrangements are continually reviewed and enhanced to ensure continued effectiveness with robust challenge and scrutiny.”
