Issue - meetings

RESOLVED that 1) the monitoring position of the General Fund at the end of the first quarter as detailed in Appendix 1 to the report (A net favourable variance of £0.576m against the profiled budget) and the key issues highlighted within the report, be noted,

2) the position on the Housing Revenue Account (HRA), the Capital Programme and Treasury Management at the end of the first quarter (Appendices 2, 3, 4, 5 and 6 to the report) be noted.

Executive considered a detailed report, presented by the Portfolio Holder for Resources, which provided an update on the financial position of the Council following the first quarter’s budget monitoring exercise for the General Fund, the Housing Revenue Account (HRA), Capital Programme and Treasury Management activity.

The Council continued to make payments to Dragonfly Management for the provision of services in line with the service level agreement (SLA), and made a charge to Dragonfly Development for the support services the Council provided to the whole company. Budgets from the already approved Medium-Term Financial Plan (MTFP) were paid over to Dragonfly Management to allow them to operate and pay for the Council’s services.

To ensure effective financial management continued to take place regarding the transferred services, the structure of services within the Council’s financial management system was changed.

Services that had been transferred into Dragonfly Management were shown as

Dragonfly Services on Appendices 1, 2 and 4 attached to the report. The remainder of the Council’s services were shown in the Community Services Directorate if they were outward facing services or in the Corporate Resources Directorate if they were internal support services.

The whole report was split between General Fund and Housing Revenue Account with the Dragonfly Services shown within each of the funds.

Moved by Councillor Clive Moesby and seconded by Councillor Duncan McGregor

RESOLVED that: 1) the monitoring position of the General Fund at the end of the first quarter as detailed in Appendix 1 to the report (a net favourable variance of £0.576m against the profiled budget) and the key issues highlighted within the report, be noted,

2)    the position on the Housing Revenue Account (HRA), the Capital Programme and Treasury Management at the end of the first quarter (Appendices 2, 3, 4, 5 and 6 to the report) be noted.

Reasons for Recommendation

The report summarised the financial position of the Council following the first quarter’s budget monitoring exercise for the General Fund, the Housing Revenue Account, Capital Programme and Treasury Management activity.

The Medium-Term Financial Strategy approved in July 2023, and being presented to Members during September and October 2024 for updates and approval, stated that it was the Council’s intention to monitor the budgets of the services transferred into Dragonfly Management as part of the budget monitoring process.

Alternative Options and Reasons for Rejection

The Budget Monitoring report for 2024/25 was primarily a factual report which detailed progress against previously approved budgets. Accordingly, there were no alternative options to consider.