Agenda item

Resourcing Better Outcomes - Finance and Corporate Performance Report for July (Period 4)

Minutes:

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 31 July 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 transfer of £500,000 from HRA reserves to support the increase in repairs and maintenance costs, be approved.

 

4. That the planned budget transfers (virements) of £2,327,766 from earmarked reserves, as set out in the report, be approved.

 

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

 

5. That the expenditure to date and the forecast outturn as at 31 July 2022 and its financing, be noted.

 

6. That the requested changes to the capital investment programme for 2022/23 and future years, as set out in section 4 of appendix 2 to the report, be approved.

 

7. That the Corporate Performance Report as at 31 July 2022 set out in 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. Even at this very early stage of the year – 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.  Improving efficiency and productivity is essential but the scale of the unprecedented financial pressures will inevitably lead to a reduction in the range, quality, cost and responsiveness of other discretionary Council services. 

 

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

Referred direct to: All three Scrutiny Committees

Cabinet Members: Cllr George and Cllr Collins

 

Supporting documents:

 

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