Issue - meetings

To consider the report of the Chief Finance Officer.

Corporate Services Scrutiny Committee considered the report at its meeting on 22 November 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 six months and which sought approval for a supplementary budget.

Members were advised that the HRA showed a small underspend and the General Fund now had an improved financial position. The General Fund reserves had been projecting below the minimum level of £3 million at the end of quarter one and the Strategic Management Board had worked to reduce expenditure and the projected minimum reserves were now £3.015 million. The proposed supplementary budget of £481,600 in respect of the Rough Sleeping Initiative would be offset by a grant from the Ministry of Housing Communities and Local Government. In response to a question at Corporate Services Scrutiny Committee, the expenditure on Consultants and Agency Staff had been detailed in the report.

Corporate Services Scrutiny Committee considered the report at its meeting on 22 November 2017 and its comments were reported.

RECOMMENDED that Council notes and approves:-

(1)        General Fund forecast financial position for the 2018/19 financial year;

(2)        HRA forecast financial position for 2018/19 financial year;

(3)        additional supplementary budget set out in 8.3.7 of the circulated report;

(4)        outstanding Sundry Debt position as at November 2018; and

(5)        creditors’ payments performance.

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report that 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 six months.  He also sought approval for a supplementary budget, and explained that because the Council had been awarded a grant of £481,600 for the Rough Sleeping Initiative by the Ministry of Housing, Communities and Local Government (MHCLG) the supplementary budget totalling £481,600 would be recommended for approval by Council, as this budget would be cost neutral.

The Chief Finance Officer referred to an improvement in the financial position following efforts by the Strategic Management Board and Service Leads having worked to reduce expenditure, which had brought the projected balance to £3.015 million at the year end, and just over the minimum reserves level.  He reiterated the need to retain the discipline and be mindful of the ongoing financial position. The second quarter for the Housing Revenue Account also showed a significant reduction in the amount taken from the working balance, projection of £3,868,032 to leave the working balance at £6,344,212. He commented on the key variances as detailed in the report.   He also referred to the appearance of a significant overspend in planning which included funding from the Community Infrastructure Levy that was shown elsewhere in the report and offset the additional expenditure. A change in the way this was reflected would be made available for future reports.

Following a request from a Member at the September meeting of Corporate Services Scrutiny Committee, the Chief Finance Officer provided details of spending on agency and consultancies. In the case of agency staff, it could include cover for planned leave for an area where the service had to continue, such as in the case of refuse collection crews. There had been a concerted effort to reduce such spend, and a project had been undertaken to bring together the spend under one contract to achieve a more advantageous cost.  There were occasions where consultants were used, particularly when the expertise was not available at the City Council, and it was reviewed on a case by case basis. He also responded to a Member’s request for a comparison of the expenditure by other district councils across the country.  The Chief Finance Officer acknowledged a Member’s suggestion that a comparison of size of the District Council should be taken into account.   

Corporate Services Scrutiny Committee noted the report and requested 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;

(2)  The HRA forecast financial position for 2018/19 financial year;

(3)  The additional supplementary budget set out in 8.3.7;

(4)  The outstanding Sundry Debt position as at November 2018; and

(5)  The creditors’ payments performance.