To consider the attached report of the Cabinet Mewmber for Corporate Delivery / Chief Finance Officer.
The Cabinet considered a report of the Chief Finance Officer which informed Members about the on the Council’s forecast 2020/21 financial position as at the end of September 2020, and the additional Covid-19 funding received in October.
Not reporting on financial performance puts at risk the achievement of the Council’s Medium Term Financial Plan. Effective budget management is critical to ensuring financial resources are spent in line with the budget and are targeted towards the Council’s priorities. Monitoring enables the early identification of variations against the plan and facilitates timely corrective action.
1. That the forecast 2020/21 financial positions for Revenue, Capital, and the Collection Fund as at the end of September 2020, as detailed in section 4 of the report be noted;
2. That the utilisation of the 4th tranche of emergency Covid 19 funding of £6,199k detailed in section 4.1. of the report be approved;
3. That the forecast Health & Social Care Pool Budget position as detailed in section 4.2 of the report be noted;
4. That the Budget Pressure requests for 2021/22 as detailed in section 4.3 of the report be approved;
5. That the forecast unachieved savings target as detailed in section 4.4 of the report be noted;
6. That the net Capital budget changes of £1,066k detailed in section 4.6.1 of the report be noted;
7. That the Capital re-phasing of £5,579k detailed in section 4.6.2. of the report be noted;
8. That the reversal of the £140k reduction in Townships capital budget in 2020/21, and rephasing of that budget into 2021/22, as detailed in section 4.6.3. of the report be approved;
9. That the budget returns of £1,001k detailed in 4.6.4 of the report be noted;
10. That the budget switch as detailed in 4.6.5 of the report be approved;
11. That the mid-year 2020/21 Treasury Management update report contained in section 4.8. of the report be noted.
Reasons for the decision:
Cabinet Members should be kept updated on the financial position of the authority, as effective budget management is critical to ensuring financial resources are spent in line with the budget and are targeted towards the Council’s priorities.
The report focuses on the forecast 2020/21 financial position as at the end September 2020.
Financial Update for Period 6: 2020/2021
The Committee scrutinised a report of the Chief Finance Officer, which described the Council’s forecasted financial position, for the ensuing, municipal year, as at 30th September 2020. The report had also factored in additional specific Covid-19 funding that had been received in October 2020.
The Finance Update report contains details of the forecasted revenue outturn position, which yields an in-year saving of £1,745,000. The General Fund net pressure relating to Covid-19 was reported to be £125,000, which was largely offset by the use of government funding relating to Covid-19 of £22,231, including an additional £6,199,000 being received in October 2020. Non-Covid-19 in-year savings were reported to be £1,870,000, which represented an improved position of £2,408,000 from the period 4 forecast (31st July 2020). This was largely due to an improved situation within the Adult Social Care and Economy Directorates, which were reporting a breakeven position, whilst the Children’s Social Care and Neighbourhoods Directorates were each forecast to achieve a budgetary underspend.
The report detailed savings plans of £4,169,000, which were ongoing; an update on the Health and Social Care Pool Fund position; a forecast Capital expenditure of £70,688,000, after re-phasing of £5,579,000 into future years; the forecast 2020/21 Collection Fund position of a deficit of £30,450,000, which would be partially mitigated by increased government ‘Section 31 grant’ of £20,950,000, leaving a residual pressure of £9,500,000; and the mid-year 2020/2021 Treasury Management update.
The purpose of the report was to keep Members updated on the financial position of the authority, as effective budget management was considered to be critical to ensuring the financial resources were spent in line with the budget and that they were targeted towards the Council’s priorities. The report focused on the forecast 2020/2021 financial position as at 30th September.
The Committee was advised that the submitted report was due to be considered by the Cabinet at its next meeting on 1st December 2020.
That the report be noted.