In the Budget Commission, the Council manager illustrates the details of the Report: «In 2025 the Municipality of Reggio Calabria will no longer be a structurally deficient body»
In recent days, the municipal council of Reggio Calabria approved the proposed resolution regarding the management report and the reporting scheme for the 2023 financial year.
The budget account for the 2023 financial year, as can be seen from the analysis of the attached documents, closes with an administration deficit of 211,129,737.10 euros, a decrease of approximately 25 million euros compared to the previous year.
The reporting scheme, in addition to being approved by the municipal council, has today also been examined by the first permanent council commission led by Giuseppe Cuzzocrea. In the session held this morning, the manager of the Finance Sector, Francesco Consiglio, spoke and illustrated the Management Report for the 2023 financial year, reviewing all the most significant data in the accounting documents and also providing some interesting insights.
First of all, a fact that catches the eye is what Consiglio reported at the end of his report: «This year there is no deficit. This means that starting from 2025 the Municipality will no longer be a structurally deficient body.” Certainly very positive news after many difficult years from an economic-financial point of view.
Council began his hearing in the commission by providing very precise figures, especially with reference to the methods of calculating the administrative deficit. The manager explained how the administrative result as of 31 December 2023 is equal to €662,089,343.38. From here the value for set aside, restricted and earmarked quotas equal to €873,219,080.48 must be deducted. The difference between these two values produces the administrative deficit for the figure of -211,129,737.10.
As mentioned, therefore, approximately 25 million euros will be recovered, reaching the annual objective set also in the context of the agreement with the Government. Nineteen million were recovered through state contributions. The remaining part through taxation.
The institution has covered the annual deficit quota foreseen with the recovery project, approved with resolution of the City Council n. 54 of 29 July 2022.
«The municipal administration – we read in the management report – in line with the commitments undertaken with the President of the Council of Ministers has guaranteed the overall recovery share of the expected deficit, and in the three-year period 2020/2022, has activated a virtuous path of shelf, recovering over 163 million of deficit, including that determined with the approval of the multi-year financial rebalancing plan, ascertained, moreover, by the regional control section for Calabria of the Court of Auditors”.
Furthermore, it is clear from the Management Report that the positive value of the budget balance is in line with the application of the accounting principles «since provisions have been made to protect the budget balance, as well as provisions for future expenses with particular reference to the provisions to the litigation risk fund”. As also highlighted by the Council manager during his speech, the funds and provisions constitute an accounting tool designed to guarantee budget balances through the preventive sterilization of a certain quantity of resources necessary to balance contingencies that may jeopardize their maintenance during management .
Another important item is that relating to the Fund for doubtful debts, for the reduction of which «it is essential to increase the collection capacity of one’s income and above all to speed it up, in order to increase collections on the accrual account or on the residual account of the following year.”
No cash advances were used for the 2023 year either. “It’s the third year that they haven’t been used,” remarked the manager, referring to a “positive trend”.
Finally, as regards the operating result for 2023, it is positive and set at 68,171,491.54 euros.
The examination of the reporting format and the management report for the 2023 financial year will continue in the next sessions of the Budget Commission chaired by Giuseppe Cuzzocrea. As for the municipal council, it has ordered the transmission of the scheme and the report to the audit body for its opinion and, having acquired the same, the transmission of the reporting scheme to the municipal council for approval.
Press release
