Issue - meetings

To consider the report for the Chief Finance Officer.

Corporate Services Scrutiny Committee considered the report at its meeting on 22 March 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 2017/18 financial year after nine months.

Members were advised that the General Fund had an underspend of £345,219, the Housing Revenue Account (HRA) an underspend of £3,667,716 and the Council own Build Houses an underspend of £7,000. The high underspend on the HRA was due to the delay in a number of significant projects and the General Fund which was showing overspend in the first quarter now showed an underspend.

Corporate Services Scrutiny Committee considered the report at its meeting on 22 March 2018 and its comments were reported.

RECOMMENDED that Council notes and approves the;-

(1)        General Fund forecast financial position for the 2017/18 financial year;

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

(3)        outstanding Sundry Debt position as at December 2017; and

(4)        creditors’ payments performance;

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report on the Revenue Budget for 2017/18, advising Members of the overall projected financial position of the HRA & General Fund Revenue Budgets and for Members to note the Council’s projected financial position and approve any additional expenditure required during the financial year.

He provided Members with the budget variance over and under spends for the general fund, HRA and Council own build houses. Members were referred to the key variances of the report, which highlighted the net interest underspend. Advice has been received recommending to avoid longer term borrowing to reduce the interest spend. The repayment of debt was lower than forecasted.

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

·         The £110,000 expenditure for major projects for Place Scrutiny Committee, covered the compensation payment toStagecoach as a result of the termination of their lease;

·         There were challenges with spending this year, which if property fund underspend money were to go into the general fund balance, would need approval by full council;

·         During quarter one, there was an over spend on services, which the Leader had asked the Directors to address Quarter two spending had broken even;

·         There was a typo in the outstanding sundry debt text of the report, which would be amended;

·         A detailed explanation would be requested from the Customer Access team about the housing rent debt write off and would be provided to all Members;

·         The underlying issues for the corporate property assets had been discussed which highlighted the resource challenges resulting in a significant underspend of £156,000. Although the amount issignificant, it was lower than in previous years;

·         Treasury management fees of £31,000 were paid to the CCLA to manage investment. Property fund investment was £5,000,000, which was invested to provide for a better return on the investment.

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

(1)  The General Fund forecast financial position for the 2017/18 financial year;

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

(3)  The outstanding Sundry Debt position as at December 2017;

(4)  The creditors’ payments performance.