Issue - meetings

Finance Update Report 2020/21 Period 8

Meeting: 09/02/2021 - Cabinet (Item 95)

95 Finance Update Report 2020/21 Period 8 pdf icon PDF 866 KB

To consider the report of the Cabinet Member for Corporate Delivery/Chief Finance Officer

Minutes:

Consideration was given to a report of the Cabinet Member for Corporate Delivery / Chief Finance Officer seeking approval for the utilisation of New Burdens Administration grants to cover costs incurred for administering grants related to Covid 19, Budget Pressure requests, amendment to the purpose of the Property Growth Fund capital scheme and a switch budgets within Economy Service.  Cabinet were requested to note the forecast 2020/21 financial positions for Revenue Funds, Dedicated Schools Grant, Capital Funds, the Collection Fund as at the end of November 2020, the £1,793k Waste Levy reserve refund which has been received from Greater Manchester Combined Authority, the forecast unachieved Savings target, the forecast Health & Social Care Pool Budget position, requests for a new reserve for Children’s Services, relating to the No Wrong Door initiative, and 2 reserves to earmarked for Covid 19 costs which have not been incurred in 20/21 but are expected to materialise in future years; and for the budget carry forward of Neighbourhoods underspends to ringfence £170k of in-year savings for the provision of school meals, net Capital budget changes of £722k, and, the Capital re-phasing of £11,017k approved by the Chief Finance Officer.

 

Alternatives considered

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.

 

Resolved

1.    That the utilisation of New Burdens Administration grants to cover costs incurred for administering grants related to Covid 19 of £209k, and government funding of £1,759k to compensate for lost Sales, Fees & Charges.

2.    That the Budget Pressure requests from Resources and Neighbourhoods Directorates be approved.

3.    That the amendment to the purpose of the Property Growth Fund capital scheme be approved.

4.    That the switch of budgets within Economy Directorate be approved.

5.    That the forecast 2020/21 financial positions for Revenue Funds, the Dedicated Schools Grant, the Capital Funds and the Collection Fund as at the end of November 2020, be noted.

6.    That the £1,793k Waste Levy reserve refund which has been received from Greater Manchester Combined Authority be noted.

7.    That the forecast unachieved Savings targets in Neighbourhoods, Economy, Resources and Public Health Directorates be noted.

8.    That the forecast Health & Social Care Pool Budget position be noted.

9.    That the requests for a new reserve for Children’s Services, relating to the No Wrong Door initiative, and 2 reserves to earmarked for Covid 19 costs which have not been incurred in 20/21 but are expected to materialise in future years; and for the budget carry forward of Neighbourhoods underspends to ringfence £170k of in-year savings for the provision of school meals, be noted.

10. That the net Capital budget changes of £722k, be noted

11. That the Capital re-phasing of £11,017k be noted.

 

Reason for resolution

Effective budget management is critical to ensuring financial resources  ...  view the full minutes text for item 95


Meeting: 08/02/2021 - Corporate Overview and Scrutiny Committee (Item 44)

44 Finance Update Report 2020/21 Period 8 pdf icon PDF 866 KB

To inform the Committee of the Council’s forecast 2020/21 financial position as at the end of November 2020, and additional Covid-19 funding received.

Minutes:

The Committee scrutinised a report of the Chief Finance Officer which detailed the Council’s financial situation at the end of Period 8 – 2020/2021. The report informed Members of the Council’s forecast 2020/2021 financial position as at the end of November 2020, and it also detailed additional Covid-19 funding that been received.

 

The Finance Update report contained details of:

a.               The forecast Revenue outturn position, which is an in-year saving of £2,162k. The General Fund net pressure relating to Covid-19 was £559k, largely offset by the use of government funding. Non-Covid-19 in-year savings are currently reported at £2,721k.  The net saving of £2,162k is an increase of £417k from the period 6 position.

b.               Details of the continuing pressure on the High Needs Block Dedicated Schools Grant (DSG). The 2020/2021 in-year pressure is £1,700k which would leave a closing 2020/2021 deficit position on the DSG reserve of £4,900k.

c.               Savings plans of £4,169k ongoing and £280k of ‘one off’ savings had been included in the 2020/2021 budget. There was a balance to address of £367k relating to the impact of Covid-19, which was £523k less than the period 6 forecast, due to mitigating actions in Adult care service.

d.               An update on the Health & Social Care Pool Fund position, which, after the application of Covid-19 Emergency funding, will leave a breakeven position.

 

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 November 2020.

 

The Committee was advised that the submitted report was due to be considered by the Cabinet at its next meeting on 9th February 2021.

 

In considering the report a member referred to the Waste Bin Replacement Programme, which had been implemented in 2020/2021 and requested that a report detailing the impact of this programme be submitted to a future meeting of the Committee.

 

Resolved:

1.               That the report be noted.

2.               The Director of Neighbourhoods be requested to submit a report, to a future meeting of the Committee detailing the progress of the Waste Bin Replacement Programme.