Council Reports A Successful Year-end Position For 2021/22
3rd July 2022
A report outlining the key points within The Highland Council's annual accounts for the year to 31st March 2022 was presented to full Council today (30 June 2022), ahead of their submission for full audit.
The report shows that the Council continued to demonstrate strong financial management during financial year 2021/22, with an overall surplus of £9m recorded against the revenue budget for the general fund. This surplus was added to the Council's general reserve which ended the year at £19.3m, producing a reserve level of just over 3% of the annual revenue budget which is in line with the target level agreed as part of the budget in March 2022. It is essential that this reserve is maintained at a healthy level to allow for investment in change or the management of emergent risks.
The improved position over the course of the year was supported by underspends across the majority of service areas as well as additional general funding received in-year from government.
Chair of the Corporate Resources Committee, Cllr Derek Louden, praised the positive year-end position. He said: "The 2021/22 financial year proved to be another extraordinary year for the Council in the context of the twin challenge of dealing with the ongoing pandemic, while supporting the recovery of Council services and the Highland region as a whole.
"I welcome the increase in reserves that will help to put us in a secure position moving forward. The raised levels of reserves demonstrate good financial management and are critical to our financial sustainability. The Council will face renewed challenges in the months and years ahead, especially given the impact of global influences on inflation levels. The report describes a number of key risks which are emerging, and in this context, we must proceed with financial prudence."
He added: “I wish to add my thanks to councillors, staff and officers for all their hard work in helping to deliver a very successful year end position."
The report can be viewed at this link. https://www.highland.gov.uk/download/meetings/id/80169/7_annual_accounts_202122
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