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 4 Revenue and Capital Outturn and the Quarter 1, 2018/19 Revenue and Capital Outturn (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.  In reference to Quarter 4, 2017/2018 Members noted the service was reporting a cash limit underspend of approximately £1.496 million at Quarter 4 2017/18, against a revised General Fund Revenue Budget of £25.266 million.  Members noted the major variances were set out within the report with more details contained within Appendix 2 to the report.

As regards the Capital Programme, the Principal Accountant explained that against a revised budget now stood at £40.668 million there had been a spend of £38.942 million, with a breakdown of the major capital projects given at Appendix 3 to the report.

The Chairman thanked the Principal Accountant and asked Members for their comments and questions on the Quarter 4 2017/18 report.

Councillor P Howell noted his frustration in terms of forecasts being made and the large differences between Quarters, adding that an apparent £11 million differential did not suggest control.  The Principal Accountant noted that in terms of the £11 million, this was not comparing like-for-like and that around £8 million of capital charges would come into the ledger at the year end and that CIPFA code was adhered to.  Councillor P Howell noted he felt that at best the information could be misleading, though he noted he did not feel this was deliberate and added that any differences needed to be set out within the narrative of the report.

The Chairman noted she would raise the issues as set out by Councillor P Howell and that arrangements would be made for an appropriate senior officer from the Resources Service Grouping to attend a future meeting to resolve the budget issues raised. 

Councillor S Dunn noted he did not read the report as a “balance sheet”, rather there were a number of programmes and projects that ran over a number of years and he added it did not feel it was the Committee’s remit to manage finances, rather to monitor projects, programmes and performance.

The Principal Accountant referred Members to the information relating to Quarter 1 2018/19 with the service reporting a cash limit underspend of approximately £0.395 million, against a revised General Fund Revenue Budget of £58.434.866 million.  It was noted that from 2018/19 the former “Regeneration” and “Neighbourhoods” budgets were reported together and that the report to the Environment and Sustainable Communities Overview and Scrutiny Committee would note a corresponding fall within their budget report.  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 revised budget stood at £57.516 million, with a breakdown of the major capital projects given at Appendix 3 to the report.  Members noted the spend to date of £6.996 million and that it was anticipated that the capital programme would be spent fully by the year end. 

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

Councillor P Howell noted in the table set out at paragraph 13 of the report there was reference to approximately £7 million of £57 million having been spent to date and asked as regards sticking to budgets and how to monitor progress in terms of the turning projects into actions.  The Principal Accountant noted the previous year’s spending profile in relation to the Capital Programme with a similar spend for Quarter 1 year on year.  Councillor P Howell asked how one would know where the Council was at in terms of the RED Capital Programme and progress being made.

Resolved:   

That the reports be noted.