Agenda item

A report from the Interim Executive Director of Resources and Regulation is attached.

Andrew Baldwin, Head of Financial Management presented a report updating the Committee on the authority’s financial position in line with the Committee’s Statement of Purpose to ‘Provide independent scrutiny of the authority’s financial and non financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment’.

It was reported that that the authority is projecting an overspend of £3.491m for the year, based on spending and income information as at 30 September 2017.

It was explained that the Authority’s financial position is continually monitored throughout the year, monthly reports are considered by departmental management teams and summaries available to Cabinet Members. A monthly summary is submitted to the Senior Leadership Team and to the Cabinet Member for Finance.

Quarterly detailed monitoring reports are considered by the Senior Leadership Team, the Cabinet, Star Chambers and the Overview and Scrutiny Committee. These set out a risk assessed summary of the financial position, explanations of major variances from budget, an assessment of the minimum level of balances, information on the forecast balances position and an assessment of performance against the objectives of the Financial Strategy.

It was explained that the projected overspend of £3.491m represents approximately 2.58% of the total net budget of £135.330m, and compares to an overspend of £3.651m at quarter 1, and £4.921m the same point in 2016/2017.

An overview of the variance was outlined in the report.

It was reported that due to the extremely difficult financial situation facing the Council in 2017/2018 the Senior Leadership Team had agreed and drawn up an action plan with some immediate additional spending controls over and above the usual controls:-

·         Recruitment freeze on staff and new agency placements (exceptions to be signed off by SLT);

·         Release of all existing casual/agency staff (exceptions to be signed off by SLT);

·         Cease overtime/additional hours (exceptions to be signed off by SLT);

·         Enter into no new training commitments and review existing training (exceptions to be signed off by SLT);

·         Re-launch Work Life Balance options around reduced hours/purchase of leave;

·         Cease spend on discretionary budgets; stationery, office equipment etc;

·         Cease spend on IT/Communications (exceptions to be signed off by SLT);

·         Any spend greater than £250 to be signed off by Executive Director;

·         Any new contractual commitments greater than £5000 (lifetime value of contract) to be signed off by SLT;

·         Consider “in year” budget options – e.g. previously unidentified efficiencies, review of non key services.

It was explained that the report being presented showed month 6 figures so the situation has moved on. The month 7 figures had shown that the overspend had reduced to £3.2m and the month 8 figures were due to be produced at the start of January and would show the most recent figures, these will be reported to the Audit Committee at its March 2018 meeting.

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

·         Councillor Silbiger referred to the £1.4m income shortfall recorded for Resources and Regulation in the table at 3.5 of the report and what this was in relation to.

It was explained that this figure related to a shortfall from property and car parking.

·         Councillor Walker referred to the enforcement money from the bus lanes across the borough and explained that he had asked for a breakdown to show each bus lanes individually. He explained that he had been told that this would not be possible.

·         Councillor Nuttall stated that it would also be interesting to compare previous years’ figures in relation to each bus lane.

Andrew Baldwin stated that he would look into the information available to see if this could be done.

·         Councillor Whitby referred to the ‘delayed achievements’ and ‘non achievements’ and asked what the difference was.

It was explained that the ‘delayed’ were achievements that would be realised later than was planned. Non achievements would not now happen. If this was the case other achievements would have to be found to the same amount.

·         Councillor Whitby asked whether the Star Chambers considered the work that was being carried out by community groups when looking at savings.

It was explained that this was recognised and considered within the plans.

·         Councillor Silbiger asked how the projected overspend was calculated and if, usually, a lot of the savings come at the second half of the year could this be built into the forecasting.

Andrew explained that the figures were actual spend plus committed spend. At the start of the process activity and demand is considered and then new information is added as the year goes on. The same data cannot be replicated year on year due to the changes in demand and unknown pressures that may arise.

Delegated Decision:

That the contents of the report be noted.