Agenda item

Joint Report of the Corporate Director of Regeneration and Economic Development and Corporate Director - Resources – presented by the Finance Manager, Resources

The Chairman introduced the Principal Accountant, Resources, John Hughes who was in attendance on behalf of the Finance Manager, Resources, Azhar Rafiq to speak to Members in relation to the Quarter 2 Revenue and Capital Outturn 2013/14 (for copy see file of minutes).

The Principal Accountant reminded Members of the areas reported upon, the General Fund Revenue Account, the Housing Revenue Account (HRA) and the Capital Programme for the RED Service.  Members noted the service was reporting a cash limit under spend of approximately £424,000 for 2013/14, based on the Quarter 2 forecast outturn, against a revised General Fund Revenue Budget of £43.507 million.  Members noted the major predicted under spend fell within Planning and Assets, with the detailed explanations as set out within the report including an increased income due to a small number of major applications generating extra income such as the Hitachi site at Newton Aycliffe and the Dalton Park site.  The Committee learned that there was continued overspend reported for Traffic, specifically related to parking services and enforcement activities, though it was anticipated that this would be partly resolved at the retendering stage as this was the final year of the current contract for the service.

The Committee noted that the HRA for 2013/14 had no major issues; with a forecasted balanced position after using a projected surplus of £931,000 towards the Capital Programme.  Members noted that the projected surplus was less than reported in Quarter 1, however, there had been additional pressures in terms of void properties and the council tax implication of those properties, and an increase in Right to Buy sales, therefore a slight loss of rental income.

As regards the Capital Programme, the Principal Accountant explained that subsequent to revisions to take into account grant additions/reductions and re-profiling the budget now stood at approximately £104.578 million split between the General Fund (£48.996 million) and HRA (£55.582 million).  Members noted that the spend to the end of September 2013 had been approximately £31.080 million and the Committee was reminded that the spending profile for the Capital Programme was such that the majority of the spend was closer to the end of the financial year, and that some projects could be carried over multiple years.

The Chairman thanked the Principal Accountant and asked Members for their questions on the finance report.

Councillors asked questions in respect of: overspends for supported housing, traffic and Business Durham; the number of properties that made up the additional council tax charges from void properties; and the potential impact of Welfare Reform on HRA income.

Members were informed that the supported housing service was a 24 hours, 7 days a week, full-cover service and there was contingency within the budget as regards this.  Councillors noted that the overspend within traffic was as set out in the report, and any additional cost as regards Lumiere and the Lindisfarne Gospel events was easily identifiable however, the additional income as generated by these events was more difficult to quantify.  The Principal Accountant explained that costs as regards Business Durham had been removed from the Financial Management System and were held on the list in terms of follow up work.  The Committee noted that number of properties in relation to voids and council tax costs could be obtained for the next financial monitoring report.  The Principal Accountant explained that there had been some planning in respect of the impact of Welfare Reform, though it was noted that Universal Credit, paid directly to the individual unlike Housing Benefit that came directly to the Authority, had not yet come into effect.

Councillor J Armstrong noted agency costs as regards the supported housing service and queried whether there could be scope for retraining Council staff displaced from other services to cover this area.    

Resolved:   

That the report be noted.