Issue - meetings

Finance and Performance Management - May 2022

Meeting: 03/05/2022 - Corporate Overview Group (Item 25)

25 Finance and Performance Management pdf icon PDF 328 KB

Report of the Director – Finance and Corporate Services

Additional documents:


The Senior Finance Business Partner presented the report of the Director of Finance and Corporate Services which detailed the quarter three position in terms of financial and performance monitoring for 2021/22. The report also highlighted the Covid-19 variances.


The Senior Finance Business Partner explained that the budgets for quarter one were set prudently in anticipation of an adverse impact of Covid but the largest of which had recovered more quickly than anticipated namely - car parks, leisure, planning and community facilities.


The Senior Finance Business Partner referred to Table 1 at paragraph 4.2 of the report which summarised the position at Quarter 3, including lost income and costs due to Covid-19 which showed a net Covid pressure of £0.118m, offset by other in-year efficiency savings of £1.187m, leaving a net revenue efficiency of £1.069m. The Group was informed that Table 1 also showed additional non-ringfenced grant funding of £0.167m (new burdens funding). It was noted that there was a Business Rates surplus of £2.958m, £2.4m of which would be transferred to reserves to cover the anticipated deficit that would arise next year and in 2023/24.


Regarding further commitments from in-year efficiencies, detailed in Appendix A, this included £0.3m to Streetwise and £50k for feasibility in Central Avenue, West Bridgford and £5k for the Bingham Improvement Board.


The Group was informed that the Special Expenses budget had also been impacted by Covid restrictions.  However, some activity was covered by Government Sales Fees and Charges funding for Quarter 1 leaving a total Special Expense budget forecast deficit of £15.7k.


It was explained that the Capital Programme forecast an underspend of £5.1m, which mainly related to Bingham Hub, Rushcliffe Oaks Crematorium and LAD funding for green energy grants.  Due to current projections, it was unlikely that there would be a need to borrow funding.


The Senior Finance Business Partner referred to Table 2 at paragraph 4.11 and explained that it detailed the grants received and no further grants were anticipated. The projected position was positive with a net £54k efficiency. However, uncertainties over funding, increased cost of goods and services along with government policy reviews, meant that a healthy reserves position was vital to ensure the Council remained financially resilient. It was noted that there was no room for complacency as there remained a great deal of uncertainty such as Business Rates, Comprehensive Spending review, Fair Funding and Brexit not to mention opportunities in the Freeport and Development Corporation. The Council’s financial position would need to be closely monitored.


The Service Manager Corporate Services informed the Group that two strategic tasks still showed as 0% - these related to new legislation expected for Planning and Waste services - due to delays with the introduction of the new legislation.


The Group was informed that of the 13 Performance Indicators (PI), 12 had previously been reported to the Group, which had been made clear in the appendices to the report. There was one new exception - Choice Based Lettings – which was linked to previously  ...  view the full minutes text for item 25