Issue - meetings

Finance, Performance and Risk Monitoring Report

Meeting: 22/11/2023 - Cabinet (Item 6)

6 Finance, Performance and Risk Monitoring Report pdf icon PDF 842 KB

Additional documents:

Decision:

Cllr Lynden Stowe provided an update to Cabinet on the year-end forecast for the 2023/24 County Council’s Revenue and Capital Budget and reported on the Council’s performance and risk during Quarter 2 of 2023/24.

 

 

Having considered all of the information, Cabinet noted the report and

 

 

RESOLVED to:

 

1. Note the forecast revenue year end position based on Quarter 2 forecasts for the 2023/24 financial year is an overspend of £1.357 million.

2. Approve the drawdown of £3.289m from Pay & Prices reserve to fund the additional pay award as set out in paragraph 3.

3. Note the forecast delivery of £16.076 million of savings against a target of £21.101 million in 2023/24 or 76.18% of target.

4. Note the forecast capital year end position as at Quarter 2, of £154.800 million against a current budget of £157.245 million.

5. Note the intention to re-profile the capital budget to reflect the current forecast.

6. Approve the £4.923 million increase to the capital programme as detailed in Section C.

7. Note Section D Treasury Management Prudential Indicators

8. Note the planned process set out in paragraph 52, for commencing the consultation for the 2024/25 Budget.

9. Consider this report of the Council’s performance and risks and identifies any areas of concern requiring further analysis, assurance or action.

 

Minutes:

6.1      Cllr Lynden Stowe provided an update to Cabinet on the year-end forecast for the 2023/24 County Council’s Revenue and Capital Budget and reported on the Council’s performance and risk during Quarter 2 of 2023/24.

 

6.2      The forecast revenue year-end position for quarter 2 of the 2023/24 financial year is an overspend of £1.357 million. This was an adverse movement of £1.357 million compared to the balanced position reported to Cabinet in September (Quarter 1).

 

6.3      The largest variances were the £7.822 million forecast overspend in Children and Families, offset by favourable variances of £5.104 million in Economy, Environment & Infrastructure, and £2.693 million in Technical & Countywide budgets.  

 

6.4      There was a new format to the report which would ensure readers were briefed on the variances with more explanation provided.

 

6.5      The overspend in Children and Families continued to be primarily against the external placements budget, due to increasing numbers of children in care and the cost of placements due to limited market availability, both of which are national issues. Work was underway to manage the situation.

 

6.6      The Dedicated Schools Grant (DSG) cumulative deficit as at 31 March 2023 was £28.58 million. This was expected to grow to close to £45 million at the end of the current financial year.

 

6.7      With regards to Council performance, he outlined that there had been a peer review in adults. This had reflected back the areas for improvement which had already been picked up under the self-assessment.

 

6.8      It was stated that the Corporate Peer review had fed back the fact that the Council demonstrated that it had good financial controls in place.

 

6.9      The Leader noted that the Energy from waste facility at javelin park was providing income that was helping to support other areas of the Council.

 

 

Having considered all of the information, Cabinet noted the report and

 

 

RESOLVED to:

 

1. Note the forecast revenue year end position based on Quarter 2 forecasts for the 2023/24 financial year is an overspend of £1.357 million.

2. Approve the drawdown of £3.289m from Pay & Prices reserve to fund the additional pay award as set out in paragraph 3.

3. Note the forecast delivery of £16.076 million of savings against a target of £21.101 million in 2023/24 or 76.18% of target.

4. Note the forecast capital year end position as at Quarter 2, of £154.800 million against a current budget of £157.245 million.

5. Note the intention to re-profile the capital budget to reflect the current forecast.

6. Approve the £4.923 million increase to the capital programme as detailed in Section C.

7. Note Section D Treasury Management Prudential Indicators

8. Note the planned process set out in paragraph 52, for commencing the consultation for the 2024/25 Budget.

9. Consider this report of the Council’s performance and risks and identifies any areas of concern requiring further analysis, assurance or action.