Agenda item

Report of the Executive Manager – Finance and Corporate Services.

The Financial Services Manager presented the report of the Executive Manager – Finance and Corporate Services which outlined the quarter one position in terms of financial and performance monitoring for 2020/21.

The report presented the budget position for revenue and capital as of 30 June 2020. It was noted that details of the report formed part of the Expected Outturn Budget Report to be taken to Council on 24 September and included the in-year variances along with variances resulting from Covid-19. The Group were informed that the anticipated budget of £0.442m gap caused by the pandemic was partially offset by additional government grants and in-year efficiencies. The Financial Services Manager informed the Group that the Capital Programme showed a planned underspend of £24.8m largely due to slippage in two major schemes (Bingham Hub and Crematorium) and uncommitted funds in the Asset Investment Strategy.

The Financial Services Manager was pleased to note that the Council’s discretionary grant scheme had received 189 claims, decided on 159 and had paid 62 totalling £0.814m which equated to 84% of the total available funds. It was hoped that all payments would be made by 30 September 2020. 

The Group asked questions regarding the Council’s loss of planning income. The Financial Services Manager informed the Group that the Council had lost £200k of income. It was also clarified that a £215,000 capital spend on a resurfacing of all car parks within the Borough was due to commence during 2020/21. The Financial Services Manager also confirmed that there was a budget of £220,000 for the development of a skate park at Rushcliffe Country Park which would be considerably smaller than the one recently built in Radcliffe on Trent.

The Service Manager – Finance and Corporate Services asked the Group to comment on the monitored tasks which were outlined in the Corporate Strategy and the performance measures within the Corporate Scorecard. The Group were reminded that was agreed at the last meeting to omit targets, as a way of measuring performance for those indicators that are being impacted by the coronavirus pandemic. However, targets had been included in this report (for information purposes) to enable members of the Group to see what the impact had been, thereby showing the true performance position for all indicators.

The Service Manager – Finance and Corporate Services was pleased to note that performance during quarter one has been good and of those indicators not identified as being impacted by Covid-19, only one had been identified as an exception. The exception in this quarter was the number of successful homelessness preventions undertaken. It was explained that this exception was due to the Council not being able to house those in need as landlords were unable to evict tenants and some residents not wanting to move during lockdown.

It was RESOLVED that the Corporate Overview Group note

a)    The report of the Executive Manager – Finance and Corporate Services;

b)    the projected net effect of in-year efficiencies (£0.624m) and Covid-19 pressures (£2.564m) and Covid Government funding (£1.518m) resulting in an expected net revenue position for the year of £0.422m be noted;

c)    a projected £2.864m net surplus on Business Rates as a result of additional S31 reliefs and that this surplus is to be transferred to the Organisation Stabilisation Reserve to offset the expected Collection Fund deficit in later years;

d)    the capital underspend of £24.8m as a result of planned programme slippage

e)    the projected Special Expenses position with a projected deficit of £0.119m for the year to be financed by a loan from the Council, terms to be consulted on with the West Bridgford CIL and Special Expenses Group; and

f)      considers if scrutiny is required for identified performance exceptions.