Issue - meetings

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer providing financial performance information at the end of quarter three (Q3) (December 2024). The report provided an update on the Revenue and Capital budgets at the end of Q3 and it was noted that due to conflicting priorities within the Finance team, it was decided that a light-touch approach to Q3 would be applied.

The report highlighted that an in-depth review of budget monitoring process was being undertaken and this had meant that the usual detailed commentary on variances was not available.

Members were advised that a further adjustment relating to a correction in Earmarked Reserves resulted in a Revised Budget at the end of Q3 and table 1 of the report outlined these adjustments.

The anticipated underspend to the capital budget at the end of December 2024 was set out in the report and it was noted that a large of amount of the delayed expenditure related to the leisure contract works starting.

It was noted that an addendum to the report had been circulated and this detailed the Council’s use of Supplementary Estimates, Virements, Reserves and Procurement Exemptions at the end of period ten (January 2025).

Members discussed the report and in response to questions raised, the Interim Chief Finance Officer provided the following information regarding the Capital Budget:

·                Table 3 of the report provided a status on the projects and the Interim Chief Finance Officer reported that he had met with all Assistant Directors to go through the underspend.

·                The capital budgets relating to Parks and Play Equipment were managed by two separate services and it was noted that related projects were not delayed, just moving into the 2025 / 26 year.

·                Improvement to the budgeting process would be made when the capital budget for 2025 / 26 was set. In addition, there would be a review of the projects, with some being removed, added and any remaining budget would be reprofiled.

Members congratulated the Interim Chief Finance Officer for his report and the information provided. It was noted that the Council was advertising for a permanent Chief Finance Officer and the Interim Chief Finance Officer reassured Members that he was committed to giving the new Officer a handover and would stay for as long as the Council wanted him to stay. He referred to the Finance Team and commented that this was also now in a better position.

The Chairperson then put the recommendations which were duly agreed.

RESOLVED

(i)             That the forecasted revenue outturn position for 2024/25, as summarised at section 4 of the report, be noted.

(ii)            That the forecasted capital outturn position for 2024/25, as summarised at section 5 of the report, be noted.

(iii)       That the Supplementary Estimates, as summarised in Table 1 of the Addendum, be noted.

(iv)       That the use of Reserves, as summarised in Table 2 of the Addendum, be noted.