Issue - decisions

2022/23 Quarter 4 Performance Report

13/09/2023 - 2022/23 Quarter 4 Performance Report

The Committee considered a report­ setting out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account (HRA) for 2022/23 and the performance against the measures of success set out in the Council’s Corporate Plan.  The following documents were attached to the report:

 

·         Appendix 1 - General Fund Outturn

·         Appendix 2 - Housing Revenue Account (HRA) Outturn

·         Appendix 3 - Capital Programme Outturn

·         Appendix 4 - Savings

·         Appendix 5 - Delivery Fund

·         Appendix 6 - Reserves Position as at 31 March 2023

·         Appendix 7 - Corporate Plan Monitoring for Quarter 4 2022/23 (Measures & Projects)

·         Appendix 8 - Corporate Plan Measures for Quarter 4 (Charts)

·         Appendix 9 - Debt Write-Offs (exempt information)

 

The report noted that the budget for 2022/23 had been prepared during a challenging period due to the continuing uncertainty caused by the ongoing implications of the Covid-19 pandemic and a one-year Local Government funding settlement from Central Government. The Budget had included £10.224m of savings to be delivered in 2022/23 to deliver a balanced budget position, with a planned contribution of £0.695m to reserves.  The actual outturn position was a positive net variance of £4.191m, which was an improvement of £0.884m from the projected outturn position as at the end of Quarter 3.  The actual outturn position for net service expenditure was £137.408m, inclusive of approved net transfers to reserves of £6.592m, resulting in an adverse net variance of £3.989m. This included adverse variances of £1.221m within Economic Growth and Neighbourhood Services, £0.123m within Resources, and £0.131m within Chief Executive Services, which were offset by positive variances of £0.237m within Adult Care and Health Services, and £0.094m within Children’s Services Retained by the Council.  Brighter Futures for Children (BFfC) were requesting additional funding support of £2.845m over and above the 2022/23 contract sum.  The adverse variance on service expenditure was a net increase of £0.004m from the projected outturn position reported to the meeting of the Committee on 13 March 2023 (Minute 62 refers), with the most material movements being from the increase in the adverse variance reported by BFfC of £1.974m and the improvement in the Adult Care and Health Services position of £1.553m which was mainly due to additional Winter Pressures income.  Detailed explanations for all service variances were set out in the report.

 

The report explained that Services had submitted two carry forward requests totalling £0.281m which related to staffing in Human Resources & Organisational Development and Digital, Technology & Change. If these requests were approved this would leave a remaining surplus of £3.910m that would be added to earmarked reserves. It was recommended that £0.500m be transferred to a new Hardship Fund and the remaining balance of £3.410m be transferred to the Capital Financing Smoothing Reserve to support the Capital Programme.

 

The original budget for 2022/23 had included assumed savings of £10.224m, including £2.045m of savings brought forward from the previous year.  A total of £7.401m of ongoing savings had been delivered in 2022/23, leaving a residual balance of £2.823m to be carried forward for delivery in future years.  This balance of £2.823m would be added to the £5.295m of savings already included in the 2023/24 budget to give a revised savings target of £8.118m. Savings delivery would continue to be monitored and reported on regularly throughout 2023/24.

 

The provisional General Fund Capital Programme outturn was a £15.327m positive net variance against the proposed revised budget of £74.434m. A net total of £15.443m of budgets are requested to be reprogrammed from 2022/23 into future years of the Capital Programme and these were set out in Appendix 3 attached to the report.  The report sought spend and scheme approval for three new General Fund Capital Programme schemes to be funded from grants and Section 106 contributions: New Directions Ways into Work Skills capital project, Forbury Gardens Bandstand and Ecological works.  Spend Approval was also sought for a scheme to restore a historic wall at Caversham Court Gardens; this was an approved scheme in the 2023/24 capital programme but works had started in advance of the 2023/24 financial year.

 

The approved Housing Revenue Account (HRA) budget had assumed a drawdown from HRA reserves of £2.154m. The provisional outturn position for the HRA required an actual net drawdown from HRA reserves of £2.022m and the HRA was therefore reporting a positive net variance compared to budget of £0.132m.  The provisional HRA Capital Programme outturn was a £1.584m positive net variance against the approved budget of £29.987m.  The report sought approval to reprogramme a net total of £1.584m of budgets from 2022/23 into future years of the Capital Programme as set out in Appendix 3 attached to the report.  This included £0.448m and £0.754m to be brought forward into 2022/23 from 2023/24 for the Major Repairs rolling programme of works due to an increase in the programme in the final quarter of the year; £0.114m to be brought forward into 2022/23 from 2023/24 for other schemes; and £2.900m of budget to be re-profiled into 2023/24 for the Local Authority New Build and Acquisitions schemes.

 

The report also set out performance against the measures of success published in the Council’s Corporate Plan.  Of the 58 Corporate Plan Performance Measures, 72% were currently “green”, 16% “amber” and 10% “red”.  Of the 27 measures monitored monthly or quarterly, 70% had improved since Quarter 3, whilst 19% had gotten worse.  Of the 52 Corporate Plan Projects, 67% were currently “green”, 31% “amber” and 2% “red”.  Those measures that had shown significant change since Quarter 2 were set out in Appendix 8.

 

Resolved –

 

(1)       That it be noted that:

 

a)         the provisional General Fund outturn position for 2022/23 was a £4.191m positive net variance as set out in Appendix 1;

b)        the provisional Housing Revenue Account (HRA) outturn position for 2022/23 was a net £2.022m transfer from HRA Reserves as set out in Appendix 2;

c)         the provisional General Fund Capital Programme outturn position for 2022/23 was a positive net variance of £15.327m against the proposed revised budget as set out in Appendix 3;

d)        the provisional HRA Capital Programme outturn position for 2022/23 was a positive net variance of £1.584m against the approved budget as set out in Appendix 3;

e)         £7.401m of agreed savings had been delivered in 2022/23, with £2.823m of non-delivered savings being carried forward into future years as set out in Appendix 4;

f)          £1.268m of Capital Receipts had been used to fund transformation in accordance with the Capitalisation Directive as set out in Appendix 5;

g)        the performance achieved against the Corporate Plan success measures was as set out in Appendices 7 and 8;

 

(2)       That the service requests to roll forward funds totalling £0.281m into 2023/24 be approved;

 

(3)       That the remaining balance of £3.910m be transferred to earmarked reserves as set out in Appendix 6;

 

(4)       That the Council provide £2.845m of additional funding support to Brighter Futures for Children (BFfC) over and above the 2022/23 contract sum in respect of their 2022/23 outturn position;

 

(5)       That the amendments to the General Fund Capital Programme (as set out in Appendix 3) resulting in a revised Capital Programme budget of £74.434m for 2022/23 and £134.209m for 2023/24, be approved;

 

(6)       That Scheme & Spend approval be given for the three General Fund Capital Programme schemes as set out in Table 11 totalling £0.105m;

 

(7)       That spend approval be given for the Caversham Court Gardens General Fund Capital Programme scheme as set out in Table 12 totalling £0.015m;

 

(8)       That the amendments to the HRA Capital Programme (as set out in further detail in Section 7 of this report and Appendix 3) resulting in a revised HRA Capital Programme net budget of £28.403m for 2022/23 and £55.894m for 2023/24 be approved.