Issue - meetings

Revenue and Capital Monitoring 2016/17 - Quarter 3 as at 31 December 2016

Meeting: 20/03/2017 - Performance and Finance Scrutiny Sub-Committee (Item 87)

87 INFORMATION REPORT - 2016/17 Revenue and Capital Monitoring for Quarter 3 as at 31 December 2016 pdf icon PDF 125 KB

Report of the Director of Finance.

Additional documents:

Minutes:

The Sub-Committee received a report of the Director of Finance on the Council’s revenue and capital monitoring position for Quarter 3 as at 31 December 2016 which had been considered by Cabinet on 16 February 2017.  It was noted that the movement between quarter 2 and quarter 3 was £1.285k.

 

A Member expressed the view that financial information was received too late for meaningful comment and enquired what form the monthly financial information that had been previously agreed with effect from the next financial year would take. In terms of timeliness of the information, the Director of Finance pointed out that the Quarter 3 information was reported to Cabinet six weeks after the period end which was timely. The Director of Finance  advised that the monthly reporting would comprise a brief update, on an exception basis after period 1.

 

A Member enquired whether the capacity to achieve targets had been considered in the initial budget considerations and was it realistic to find resources elsewhere to balance variances as the Leader of the Council had suggested.  The Sub-Committee was informed that each saving was tracked quarterly and, as part of a budget refresh, unachievable savings had been removed and alternatives substituted.  Checks would take place to ensure that ‘red savings’ were actioned in future years.  Due to the size of the budget and number of savings required it was inevitable that substitution would be required.

 

A Member requested clarification on the position regarding capital receipts and reference was made to the scrutiny review which recommended better understanding of capital.  The Director of Finance advised on the current position. A report had been taken to Cabinet in November 2017 which detailed the proposals for asset disposals, the capital receipts from which would be applied under the new flexibility arrangements. The 2017/18 budget report showed that capital receipt flexibilities of £3.039m were being applied to the 2017/18 budget and the balance, if required, would be applied in 2016/17.  There was no prescribed limit in the regulations, allowing flexibility where legitimate revenue costs could be demonstrated.  The Council could not borrow capital to fund revenue overspend and, at the time of the Sub-Committee, the Council was not planning on drawing down from reserves other than that detailed in the Quarter 3 monitoring report, with the exception of redundancy costs.

 

A Member drew attention to the overspend arising from the negotiation on the IT contract with Capita and requested information on the final settlement, for example the outstanding invoice amount. The Director of Finance undertook to provide further information.

 

A Member stated that the outturn indicated about £9.8m excess spending, and asked what the bottom line was for earmarked reserves and contingencies compared to the previous year.  The officer advised that reserves were included in the report that there was an on going revenue contingency of £1.329m built into the budget. There were no plans currently to draw down further from contingencies and earmarked reserves, with the exception of redundancy costs.

 

In response to questions  ...  view the full minutes text for item 87


Meeting: 16/02/2017 - Cabinet (Item 516)

516 2016/17 Revenue and Capital Monitoring for Quarter 3 as at 30 December 2016 pdf icon PDF 645 KB

Report of the Director of Finance.

Additional documents:

Minutes:

RESOLVED:  That

 

(1)          the revenue and capital forecast positions detailed in the report as at Quarter 3 2016/17 be noted;

 

(2)          the write-offs of bad debt within the Community Directorate and Housing Revenue Account (HRA), as outlined in paragraphs 2.24 and 2.31 of the report, be approved;

 

(3)          the proposed reduction to the 2016/17 Capital Programme, as outlined in paragraphs 3.21 and 3.22 of the report, be noted;

 

(4)          in respect of the School Expansion Programme 1 and 2,the Corporate Director of People, following consultation with the Leader of the Council, Portfolio Holder for Finance and Commercialisation and the Director of Finance (section 151 officer), be authorised to settle the final accounts with the contractor including to affect any virements required as a result of the decision, as set out in paragraphs 3.38 and 3.39 of the report;

 

(5)          the capital additions, as set out in paragraph 3.45 of the report, be approved.

           

Reason for Decision:  To report the 2016/17 forecast financial position as at 31 December 2016 and to seek approval for budget adjustments in accordance with Financial Regulations.

 

Alternative Options Considered and Rejected:   As set out in the report.

 

Conflict of Interest relating to the matter declared by Cabinet member/Dispensation Granted:  None.