Agenda item

(i)          Resources - Report of Corporate Director: Resources.

(ii)         Assistant Chief Executive’s - Joint Report of Corporate Director: Resources and Assistant Chief Executive.

The Committee considered two reports, the first of the Corporate Director, Resources and the second of the Assistant Chief Executive (ACE) which provided details of the Quarter 4 2014/15 outturn budget position highlighting major variances in comparison with the budget based on the position at the year-end (for copy see file of minutes).

The Finance Manager, Azhar Rafiq provided a summary report for the Resources service grouping detailing the analysis by Head of Service and highlighting significant variances in the core budget.  It was noted that MTFP savings had been made for the year, there was a £1.970 million revenue underspend, against a revised budget of £15.693 million.  The capital programme outturn spend was £6.798 million against a budget of £7.178 million, noting that the majority of this spend was in relation to ICT.  It was added there was a breakdown of the capital programme within Appendix 2 to the report.

The second report related to the Assistant Chief Executive’s service grouping and an analysis by Head of Service was provided alongside those significant variances to the core budget.  It was noted that the outturn position was a £0.234 million underspend against a budget of £10.873 million. Members noted that MTFP savings had also been made for this service and that the ACE Capital Programme had an underspend of £1.585 million and this would be re-profiled for the 2015/16 budget.

The Chairman thanked the Finance Manager and asked Members for their questions on the 2014/15 reports.

Councillor M Wilkes noted that the Resources Revenue General Fund was underspent by 12.5%, and while accepting that the Council was a large Local Authority with large budgets, he felt that if there were similar large differences in spends compared to budgeted positions across all departments then questions would need to be asked. 

Councillor M Wilkes asked whether it was a case that costs were overstated at budget setting, and noted that the Resources Capital Budget spend was approximately 25% less than the original budget set.

The Finance Manager noted in terms of the Resources Capital Budget, the original budget was re-profiled and the final spend of £6.798 million from a revised budget of £7,178 million represented a 95% spend, with the remainder to carry forward into future years.  Councillor M Wilkes asked whether the re-profiling was due to external factors, or whether it was an issue of creep within the Capital Programme.  The Finance Manager noted he would look to obtain further information in this regard, thought felt that many capital programmes involved delivery with external partners and re-profiling could be associated with managing those relationships and contracts.

Councillor N Martin noted concern as regards keeping control over the spends within budgets and projects, in the context of difficult future choices that may affect staff and frontline services.  Councillor N Martin asked whether there was any information in relation to the transfer of bowling greens to clubs, and whether any delays in such were a reflection of a lack of capacity at the Council to undertake the necessary work.  Councillor J Armstrong noted that in the case of any redundancies, there would need to be a business case to support any recommendations being made.  Councillor J Hillary noted that spends in relation to ICT Business Continuity and Telephony had large percentage overspends and asked why this was the case.  The Finance Manager noted he would look to obtain further information in this regard from the relevant budget managers.

Resolved:

That the content of the reports be noted.