Issue - meetings

RESOLVED: That the Committee note and comment on the First Quarter Revenue Budget Monitoring 2022/23

RECOMMENDED TO CABINET: That Cabinet:

(1)   Note this report

(2)   Approves the changes to the 2022/23 General Fund budget, a £559k decrease in net expenditure

(3)   Notes the changes to the 2023/24 General Fund budget, a £414k increase in net expenditure

(4)   Delegates to the Service Director: Resources authority to enter in to a Business Rate Pooling arrangement (if available).

REASON FOR DECISIONS: Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process

Audio recording – 1:11:45

Ian Couper, Service Director – Resources, presented the report entitled First Quarter Revenue Budget Monitoring 2022/23.

·         This report is on revenue budget and is what we spend on the day-to-day things, such as staffing and services

·         Following the end of year position, we did notice one adjustment that needed to be made. This was put through the statement of accounts and affects the closing balance at the end of the year.

·         Another thing to highlight is the amount of transfers to and from earmarked reserves wasn’t quite there yet as we were still waiting for the final decision on the collection fund account

·         The current plan from our external auditors is that they’ll commence the audit of the 21/22 financial statements in November

·         Our draft accounts have been published in line with the requirements and they are on our website.

·         We have now gone through the public inspection of accounts period and we’ve had no feedback to directly to us and we will check with auditors if there has been any feedback with them. This process gives members of the public and residents a chance to ask questions and seek out documents we hold in relation to the statement of accounts

·         In relation to table 3 of the report, the impact of these numbers is much lower than it could’ve been. Overall the variances are moving in the right direction in terms of reducing our spend or increasing our income.

·         This most significant item relates to our treasury investment income, we have a current forecast of an underspend of £589,000. This is predicted to have a continuing impact of half a million in future years

·         A big provision was set within the budget at the start of the year in relation to the impact of covid-19 continuing. The amount we set aside seems to be right and a lot of variances within this relate to the provisions set aside to balance this

·         Recycled materials is an area where the budget is moving in the right direction. At the moment, the value is very high compared to what we forecast it would be, but these vary. Although there has been a £341,000 underspend this year, there’s nothing in the forecast for next year as it may move by then

·         Many areas of overspend are covered by the amount set aside for the impact of covid-19

·         The only one that isn’t, is in relation to staff costs. This forecast is based on the current employer offer to the unions which is a £1925 increase for all pay grades. This is being considered by unions at the moments, two have gone out with no recommendations, one is recommending employees don’t take the offer. This is due back in September/October.

·         For a number of years we have reported on a number of indicators relating to significant areas of income for the Council. This has changed from last year, for example land charge has been taken out and income sources that  ...  view the full minutes text for item 52