Issue - meetings

To consider the report of the Chief Finance Officer.

Corporate Services Scrutiny Committee considered the report at its meeting on 27 September 2018 and its comments will be reported.

The Chief Finance Officer presented the report advising Members of the overall projected financial position of the Housing Revenue Account (HRA) and General Fund Revenue Budgets for the 2018/19 financial year after three months and to seek approval for a number of supplementary budgets.

The Chief Finance Officer made particular reference to the level of the Council’s reserves and the work that the Strategic Management Board was undertaking to address the situation.

Corporate Services Scrutiny Committee considered the report at its meeting on 27 September 2018 and its comments were reported.

RECOMMENDED that Council notes and approves the:- 

(1)        General Fund forecast financial position for the 2018/19 financial year and the action proposed by the Strategic Management Board as set out in section 4.3 of the circulated report;

(2)        HRA forecast financial position for 2017/18 financial year;

(3)        additional supplementary budgets listed in Appendix C;

(4)        outstanding Sundry Debt position as at August 2017; and

(5)        creditors’ payments performance.

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report which advised Members of the overall projected financial position of the Housing Revenue Account (HRA) & General Fund Revenue Budgets for the 2018/19 financial year after three months and sought approval for a number of supplementary budgets. He discussed the HRA working balance, highlighting that the first quarter showed a projected underspend of £50,000, but the Capital Programme remained on target and would remain so throughout the year.

He drew Members’ attention to the General Fund balance, which predicted a deficit of £2,088,974. He stated that two supplementary budgets totalling £140,000 needed to be approved to cover refurbishment of car parks programme and to support the improvements at Exton Road. Both projects had been approved by Council but the budgets had been missed from the list approved in July 2018.

The year-end projection would see the Council’s General Fund Balances fall under the minimum recommended level and that the report was a first warning that Council reserves may fall below the minimum recommended level and therefore careful control of spending was required.

The Strategic Management Board (SMB) were working with their Service Leads to identify opportunities to reduce expenditure and to bring the balances back to the recommended level. The Chief Finance Officer would report the SMB findings to the Corporate Services Scrutiny Committee in the second quarter.

In response to questions from Members the Chief Finance Officer responded:-

·         Members were provided with update reports on services as a whole only, rather than a subjective analysis  for spending on agency, consultancy and employees expenditures etc;

·         The first warning from the Section 151 officer was notification stating that it was predicted that reserves may fall below the minimum level recommended and action was required to reduce spend. The alert was to inform Members of the situation and the proposed action required.

A Member proposed to have a report brought to Executive Committee on the spending on agency staff and consultancy costs. Members discussed the benefits of reporting of spending on agency and consultancies, and noted that a recent spotlight review had been undertaken on these issues and the review minutes would detail the required information, avoiding any unnecessary work for officers.

The Chief Finance Officer stated he could generate a report from the finance system to include figures and comparisons and bring to the next meeting in November.

The Corporate Services Scrutiny Committee noted the report and requested the Executive to note the report, and Council to note and approve the following:

(1)  The General Fund forecast financial position for the 2018/19 financial year and the action proposed by the Strategic Management Board;

(2)  The HRA forecast financial position for 2017/18 financial year;

(3)  The additional supplementary budgets;

(4)  The outstanding Sundry Debt position as at August 2017;

(5)  The creditors’ payments performance.