Issue - items at meetings - Resourcing Better Outcomes - Financial and Performance Report for September 2022 (Period 6)

Minute No. 453 (Cabinet Book 1, Agenda Item No. 6 refers)

Called-in by Councillors Cox, Davidson and Woodley

The Committee considered Minute 453 of the meeting of the Cabinet held on 8 November 2022, which had been called-in for scrutiny, together with a report of the Executive Director (Finance and Resources) reviewing the Council’s financial performance.

The relevant Cabinet Members undertook to provide written responses to questions raised by members of the Committee, with regard to:

(a) Whether the budget provision of £80,000 allocated for the work being undertaken by Grant Thornton was a one-off cost, or whether further resources would be required to support this work.

(b) The cost of the engagement of interim/agency staff to fill Executive Director positions, compared with the cost of the recruitment of permanent officers to such establishment positions and the process for the appointment of existing interim Executive Directors to permanent positions.

(c) The process applied to the procurement and award of the Council’s new waste disposal contract (including the circulation of the report considered by the Cabinet in this respect to all members of the Committee).

(d) Whether the current budget provision for ensuring that dwellings across Southend-on-Sea meet the Decent Homes Standard is sufficient, and the arrangements currently in place for the assessment of Council dwellings to ensure that they meet the Decent Homes Standard.

Resolved:

That the following recommendations of the Cabinet be noted:

“That, in respect of the 2022/23 Revenue Budget Performance, as set out in Appendix 1 to the submitted report:

1. That the forecast outturn for 2022/23 for the General Fund and the Housing Revenue Account as at 30 September 2022, be noted.

2. That the management action taken and to be taken to reduce the forecast overspend of the Council’s revenue budget for 2022/23, be noted.

3. That the planned budget transfers (virements) of £400,000 from earmarked reserves, be approved.

That, in respect of the 2022/23 Capital Budget Performance, as set out in Appendix 2 to the report:

4. That the expenditure to date and the forecast outturn as at 30 September 2022 and its financing, be noted.

5. That the requested changes to the capital investment programme for 2022/23 and future years, be approved.

6. That the Corporate Plan Performance Report as at 30 September 2022, as set out at Appendix 3 to the report, be noted.”

Note: This is a Council Function

Cabinet Members: Councillors S George and Councillor P Collins

Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) reviewing the Council’s financial performance.

Recommended:

That, in respect of the 2022/23 Revenue Budget Performance, as set out in Appendix 1 to the submitted report:

1. That the forecast outturn for 2022/23 for the General Fund and the Housing Revenue Account as at 30 September 2022, be noted.

2. That the management action taken and to be taken to reduce the forecast overspend of the Council’s revenue budget for 2022/23, be noted.

3. That the planned budget transfers (virements) of £400,000 from earmarked reserves, be approved.

That, in respect of the 2022/23 Capital Budget Performance, as set out in Appendix 2 to the report:

4. That the expenditure to date and the forecast outturn as at 30 September 2022 and its financing, be noted.

5. That the requested changes to the capital investment programme for 2022/23 and future years, be approved.

6. That the Corporate Plan Performance Report as at 30 September 2022, as set out at Appendix 3 to the report, be noted.

Reasons for recommendations:

1. The regular reporting of Revenue and Capital Budget Monitoring information provides detailed financial information to Councillors, senior officers and other interested parties on the financial performance of the Council. It sets out the key variances being reported by budget holders and the associated management action being implemented to address any identified issues. It also informs decision making to ensure that the Council’s priorities are delivered within the approved budget provision.

2. It is important that any adverse variances are addressed in order for the Council to remain within the approved budget provision or where this cannot be achieved by individual service management action, alternative proposals are developed and solutions proposed which will address the financial impact. Councillors will have a key role in approving any actions if the alternative proposals represent significant changes to the service delivery arrangements originally approved by them.

3. The challenge of delivering a balanced financial outturn for 2022/23 is significant. Some positive improvement has been achieved from Period 4 to 6, but further urgent action is needed to try to reduce all non-essential expenditure and/or generate extra income. This priority must be achieved whilst ensuring that our most vulnerable residents are looked after appropriately, and our statutory responsibilities are effectively discharged.

Other options:

The Council could choose to monitor its budgetary performance against an alternative timeframe, but it is considered that the current reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Councillors and to also formally manage the Council’s exposure to financial risk. More frequent monitoring is undertaken by officers and considered by individual service Directors and the Council’s Corporate Management Team (CMT) including the implementation of any necessary remedial actions.

Note: This is a Council Function

Eligible for call-in to: Policy and Resources Scrutiny Committee

Cabinet Members: Cllr George and Cllr Collins