Decision details

2022/23 Quarter 2 Performance and Monitoring Report

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Decisions:

The Director of Finance submitted a report setting out the projected revenue and capital outturn positions for 2022/23 for both the General Fund and the Housing Revenue Accounts as at the end of Quarter 2 (September 2022), as well as performance against the measures of success published in the Council’s Corporate Plan.  The following documents were attached to the report:

 

      Appendix 1 – Financial Monitoring for Quarter 2

      Appendix 2 – Capital Programme for Quarter 2

      Appendix 3 – Corporate Plan Measures for Quarter 2

      Appendix 4 – Corporate Plan Projects for Quarter 2

 

The report stated that the forecast General Fund revenue outturn position at the end of Quarter 2 included a projected adverse net variance on service expenditure of £3.509m. This variance was offset by a projected £4.776m positive net variance on Corporate Budgets, of which £3.627m related to the unallocated Corporate Contingency, resulting in a projected overall positive net variance of £1.267m.  The forecast adverse variance on services included net pressures totalling £1.232m within Adult Care and Health Services relating to care cost pressures; £1.389m within Economic Growth and Neighbourhood Services, primarily relating to ongoing income shortfalls in Car Parking and Planning as an ongoing impact of Covid-19; £1.437m within Brighter Futures for Children (BFfC), relating to pay, inflation and demand pressures; and a total of £0.158m across Resources and Chief Executive Services. Detailed explanations for these variances were set out in the report.  The pressures were offset by positive net variances within Corporate Budgets, specifically £1.908m on Capital Financing Costs as a result of the 2021/22 Capital Programme outturn position and £3.627m on Corporate Contingencies.

 

The report explained that £1.935m (19%) of budgeted savings had been delivered to date in this financial year, with a further £5.020m (49%) of savings on track to be delivered by March 2023. £2.084m (20%) of savings were currently categorised as non-deliverable and £1.185m (12%) categorised as at risk of delivery. There was therefore a potential impact on the 2023/24 budget should these savings not be deliverable on a recurring basis and they would be reviewed as part of the 2023/24 budget setting and 2023/24-2025/26 Medium Term Financial Strategy processes.

 

The report sought approval for amendments to the General Fund Capital Programme, following a review during Quarter 2. The amended Capital Programme was now forecasting a positive net variance of £1.201m against a proposed revised budget of £80.027m in 2022/23. This variance related to £1.151m of the Delivery Fund that had not yet been allocated to specific proposals as at the end of Quarter 2 and a forecast positive variance of £0.050m on approved Delivery Fund allocations. 

 

The report also noted that the Housing Revenue Account was projecting a positive net variance of £2.662m as at the end of Quarter 2, which resulted in a forecast contribution to HRA reserves of £0.508m.  The HRA Capital Programme was forecasting an adverse variance of £0.060m against a revised budget of £27.828m in 2022/23.

 

The report also set out performance against the measures of success published in the Council’s Corporate Plan and key projects and initiatives helping to deliver the Council’s mission and priorities.  In Quarter 2 the target had been achieved for 54% of the measures of success and performance was within 10% of the target for 29%.

 

Resolved –

 

          (1)      That it be noted that:

 

a)    The forecast General Fund revenue outturn position as at the end of Quarter 2 was a positive net variance of £1.267m;

b)    The Housing Revenue Account (HRA) was projecting a positive net variance of £2.662m as at the end of Quarter 2, which results in a forecast contribution to HRA reserves of £0.508m;

c)    £1.935m (19%) of savings had been delivered (blue) to date in this financial year, with a further £5.020m (49%) of savings on track to be delivered (green) by March 2022. £2.084m (20%) of savings were currently categorised as non-deliverable (red) and £1.185m (12%) categorised as at risk of delivery (amber);

d)    There was a total £4.065m Delivery Fund available for 2022/23 (inclusive of 2021/22 approved carry forwards). At Quarter 2, £2.914m of this funding has been allocated out to approved schemes;

e)    The General Fund Capital Programme was reporting a positive net variance of £1.201m against a revised budget of £80.027m;

f)     The HRA Capital Programme was forecasting an adverse variance of £0.060m against a revised budget of £27.828m;

g)    The performance achieved against the Corporate Plan success measures was as set out in Section 12 of this report and Appendices 3 and 4.

 

(2)        That the BFfC Contract Sum for 2022/23 be increased by £0.707m in order to fund the additional pressure arising from the 2022/23 pay award;

 

(3)        That the amendments to the General Fund Capital Programme (as set out in further detail in Section 11 of the report and Appendix 2) be agreed, resulting in a revised budget of £80.027m;

 

(4)        That the amendments to the HRA Capital Programme (as set out in further detail in Section 11 of the report and Appendix 2) be agreed, resulting in a revised budget of £27.828m;

 

(5)        That spend approval be given for the Capital Programme Schemes set out in Table 10 totalling £0.880m and paragraph 11.9 totalling £0.162m.

Publication date: 23/01/2023

Date of decision: 15/12/2022

Decided at meeting: 15/12/2022 - Policy Committee

Accompanying Documents: