Agenda item

Purpose: To receive the latest period revenue and capital budget reports

The Commission considered a report (Agenda Item 12) concerning the Quarter two Financial Performance Report (2015-2016).

Rod Mercer, Chief Accountant, introduced the report to Members and advised that the forecast revenue position was an overspend of £0.5million, which was a decrease of £0.4 million from Quarter One and mainly a result of the amount used directly from reserves to support the Ofsted Improvement Plan.

Members heard that the Communities Directorate was reviewing spending plans to mitigate the over spend by year end. This was primarily a result of the reported overspend within the Education Service (£0.3 million) and the Children and Families Service (£0.7 million).

Rod Mercer advised that the Council remained in a challenging financial environment, and was faced with delivering savings of just under £6m, as well as addressing significant in year pressures in the Communities Directorate. The Council was taking steps to maintain financial discipline and ensure that savings are deliverable.  

Councillor Laszlo Zverko asked for clarification in respect of point 2.2 (3) - £454k from capitalising equipment. Gabrielle Esplin, Finance Manager (Capital & Treasury Mgt), advised that the service previously contributed towards a store of equipment from a central store. This had previously been understood to be a rental arrangement which was considered  to be revenue spend. A recent review concluded that the Council owned a portion of the goods due to its financial contribution and was therefore making use of its own assets – which should be considered Capital. Gabrielle Esplin advised that the items would depreciate over time and this had been factored into the purchase costs and resell value.

Councillor Alan Macro asked how the Council could increase the rate of items returned after use. He suggested that service users may not know how to return items and this could cause unnecessary delays. Gabrielle Esplin suggested that the service area would be better placed to answer the question.

Councillor Macro asked for an update position in terms of the Risk Reserve Fund which had previously been reported as a remaining balance of £220k. He had previously stated that he felt this exposed the Council to unnecessary levels of risk and he was keen to know the extent of contingency planning undertaken by the service.

Councillor Macro highlighted that there were unexpected funds available within the Culture and Environment Protection Service – according to point 3.4(3).  Gabrielle Esplin stated that future development work on the Padworth Recycling Site was planned and that some funding needed to be retained to allow for claims in connection with the contract for the original preparation of the waste site. Members requested an update position in terms of the work at the Padworth Recycling Site and re-profiling of Capital.

Resolved that:

(1)  Adult Social Care be asked to consider whether the Council could do anything more to increase the rate of equipment returned after use from the central store.

(2)  The Culture and Environment Protection Service be asked to provide an update position in respect of the Waste Site Budget allocated for the development of the Padworth Recycling Site.

(3)  The report be noted.