Agenda item

Budget Monitoring Report Quarter 1 - April to June 2019

Recommendation on page 24

Decision:

RESOLVED – That Executive:

 

(i)  notes 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 £0.365m against the profiled budget) and the key issues highlighted within the report; and

 

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

 

Minutes:

Executive considered the report of the Portfolio Holder – Finance and Resourceswhich 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 Chief Accountant and S.151 Officer gave an update on the report following the announcement of the Government’s Spending Review. This included an update to the projected shortfalls in the Medium Term Financial Plan as follows:

 

 

19/20

Budget

20/21

Budget

21/22

Budget

22/23

Budget

 

£

£

£

£

Opening Budget shortfall/(surplus)

82,748

974,537

1,559,378

2,204,665

Efficiencies identified (removed from budget)

(344,036)

(242,894)

(242,894)

(242,894)

Current Budget Shortfall

(261,288)

731,643

1,316,484

1,961,771

Efficiencies identified not yet realised

(116,651)

(1,577,580)

(1,465,025)

(1,839,804)

Target Budget Shortfall

(377,939)

(845,937)

(148,541)

121,967

 

General Fund

 

The overall position on the General Fund at the end of Quarter 1 showed that there was a favourable variance of £0.365m. This was mainly due to receiving income in advance of spend for the year. There were no real budget pressures identified in Quarter 1, however officers were to continue to monitor the position during the next quarter.

 

The savings target for 2019/20 in the Medium Term Financial Plan had been met, however there was still a need for on-going savings. The shortfall in future years was to be addressed though the Transformation Programme which included a combination of income maximisation, business redesign and business cost reduction options.

 

Housing Revenue Account (HRA)

 

At the end of Quarter 1, the HRA was showing a net deficit of £0.361m. There were no significant issues to report in respect of this period.

 

 

 

 

Capital Programme

 

In headline terms, the Capital Programme profiled budget for Quarter 1 was £3.913m and the actual spend and known commitments totalled £2.830m, which was £1.083m behind the planned spend position.

 

There were no significant financial issues to report regarding capital expenditure, however it was noted that the delivery of the approved Capital Programme was slightly behind the profiled position as at Quarter 1.

 

Treasury Management

 

The Treasury Management activity undertaken in the first quarter of 2019/20 was in line with the plans agreed as part of the Treasury Management Strategy 2019-2023. The income received from investments was higher than budgeted, however, interest rates were variable and therefore it was too early in the financial year to predict if this trend would continue. A full assessment of this was to be carried out during the next quarter with a view to amending budgets accordingly.

 

Moved by Councillor Clive Moesby and seconded by Councillor Mary Dooley

RESOLVED – That Executive:

 

(i)        notes 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 £0.365m against the profiled budget) and the key issues highlighted within the report; and

 

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

 

REASON FOR DECISION:

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

 

OTHER OPTIONS CONSIDERED:

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

(Chief Accountant and S.151 Officer)

 

Supporting documents: