Agenda item

Joint Report of the Corporate Director of Regeneration and Local Services and the Corporate Director of Resources - Principal Accountant, Resources.

The Chairman introduced the Principal Accountant, Paul Raine to speak to Members in relation to the Quarter 3 Revenue and Capital Outturn 2017/18 (for copy see file of minutes).

The Principal Accountant reminded Members of the areas reported upon, the General Fund Revenue Account, and the Capital Programme for the Regeneration and Local Services (ReAL) Service.  Members noted the service was reporting a cash limit underspend of approximately £0.992 million at Quarter 3 2017/18, against a revised General Fund Revenue Budget of £26.866 million.  Members noted the major variances were set out within the report and that the service grouping was on track to maintain spending within the cash limit and more details were contained within Appendix 2 to the report.

As regards the Capital Programme, the Principal Accountant explained that the budget now stood at £40.668 million, with a breakdown of the major capital projects given at Appendix 3 to the report.  Members noted the spend to date of £25,736 million and were reminded that many capital programmes profiles were such that they completed in the final quarter and it was anticipated that the projected outturn at 31 March 2018 would be in line with the revised budget. 

The Chairman thanked the Principal Accountant and asked Members for their comments and questions.

Councillor L Maddison noted transport being over budget in terms of bus shelter repairs and increases in business rates for car parks and bus stations and asked if the repair costs were through general wear and tear, or incidents of vandalism.  The Principal Accountant noted likely both, however, he could check as regards this and report back to Committee.  Councillor L Maddison noted a number vandalised in her Electoral Division.

Councillor J Maitland asked if there was an underspend, did that budget lose this amount from subsequent budgets.  The Principal Accountant noted not necessarily as some were one-off reductions, however, where they were savings being made in advance then it would equate to a reduction in budget.

Councillor P Howell thanked the Principal Accountant for the inclusion of year to date figures within the report.  He referred to page 37 of the agenda pack and asked as regards supplies and services which noted a £1 million underspend at Quarter 3 and predicted a £500,000 overspend at the year end.  The Principal Accountant noted that it would depend upon the spend profile, with not all dividing equally into twelfths across the year and added that in bringing together the forecast outturn, Officers from Finance worked with budget managers and would challenge in terms of budget spend.  Councillor P Howell asked how, all of a sudden, there was an overspend.  The Principal Accountant reiterated that depending upon the profile the year to date figure may give a false position.  Councillor P Howell noted that agency and contracted was an area that should be manageable, however, again this showed an overspend and noted concern in terms of the quality of information from budget holders.  It was agreed that the Principal Accountant would meet with Councillor P Howell to discuss.

Councillor P Jopling asked if budget holders were asked why in terms of overspends.  The Principal Accountant noted they were, and in some cases there could be slippages in terms of invoices, and with more costs coming in at the year end.  Mr T Batson from his experience in the past in dealing with public sector contracts it was sometime difficult to get an accurate picture until the year end.

Resolved:    

That the report be noted.