Agenda item

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

Steve Kenyon, Interim Director of Resources and Regulation 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 £3.589m for the year, based on spending and income information as at 30 September 2018.

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 £3.589m represents approximately 2.60% of the total net budget of £138.016m, and compares to an overspend of £3.176m at quarter 1, and £3.589m the same point in 2017/2018.

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 2018/2019 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.

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

·         Councillor Silbiger referred to the delayed delivery of cuts set out within the report and asked why the delivery continued to be delayed.

It was explained that this was due to organisational capacity as well as external factors. Also Council services provided were demand led.

·         Councillor Silbiger asked whether there was a way to build the overspend into the forecast.

It was explained that the forecast should be about actual figures rather than predicted or forecast.

·         Councillor Sarah Southworth referred to the income shortfall and asked what work was being carried out around this.

Steve explained that the Business Growth and Infrastructure Directorate would be focussing on growth across the Council from both council tax base and business rates.

Delegated decision:

That the contents of the report be noted.