Issue - meetings

This report presents the council’s performance against budget for the period 1 April 2019 to 30 June 2019.

In summary, the general fund revenue projected outturn for 2019/20 is a pressure within services net expenditure of £5 million. These pressures should though not result in a deficit as additional resources were allowed for within the overall budget approved by the BCP Shadow Authority in February 2019 to manage the greater than normal level of uncertainty in the first year of the new Council. These additional resources can be listed as;

1)  A £2.7m revenue budget contingency designed to cover ongoing pressures not recognised or foreseen in service budgets.

2)  £6.3m in service specific Financial Resilience earmarked reserves designed to enable the service to manage any one-off emerging issues as they strive to deliver the seamless transfer of services.

At this early stage in the financial year the reported shows the potential use of some of these additional resources.

This report requests that the Corporate Directors report further on service pressures and the detailed actions they propose in mitigation. Only once these actions plans have been agreed and had chance to mature will consideration be given to the formal application of the additional resources.

It is also important to emphasise that;

a)  at this stage in the financial year the forecast is just a projection and the deficit has not yet actually occurred. Positive management action can prevent the full level of this position from materialising.

b)  historically the first quarter budget monitoring within the legacy Councils has presented a generally pessimistic view of the projected outturn with improvements over each subsequent quarter.

c)  the Council’s strong culture of active financial management is expected to continue to serve it well.

In addition, arrangements for non - financial performance monitoring for 2019/20 are noted in paragraph 68.

RESOLVED that Cabinet:-

(a)           approves the actions set out in paragraphs 74-77 of the report;

(b)           notes the contents of the report;

(c)           notes the position of the forecast for the General Fund outturn for the financial year ended 31 March 2020;

(d)           notes the update (set out in Appendix C) from the Corporate Director for Children’s Services on the progress in delivering a sustainable solution to the High Needs element of the Dedicated Schools Grant; and

(e)           notes the forecast year end outturn positions for capital, reserves and Housing Revenue Account neighbourhood accounts.

Voting: Unanimous

REASONS

To comply with the draft CIPFA Financial Management Code of practice.

To facilitate the implementation of a strong and active culture of financial management within the BCP Council by identifying when prompt management intervention and action is needed to avoid an adverse impact on future service delivery or the achievement of future corporate objectives.

All Directors have confirmed their acknowledgement of the issues raised.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'L' to these Minutes in the Minute Book.

Cabinet were asked to consider the council’s performance against budget for the period 1 April 2019 to 30 June 2019.

The Chairman of the Overview and Scrutiny Board reported that the Board, at its meeting on 9 September 2019 recommended that Cabinet practice sustainable budgeting and avoid using reserves for day to day revenue needs.

A member of the Council present requested that more detail be provided in terms of the pressures on the Libraries and Cultural Services.

In relation to this the Portfolio Holder for Finance advised that there were a lot of detailed figures within the report and that it would be appropriate for the relevant corporate director to provide further detailed information.

RESOLVED that Cabinet:-

(a)           approves the actions set out in paragraphs 74-77 of the report;

(b)           notes the contents of the report;

(c)           notes the position of the forecast for the General Fund outturn for the financial year ended 31 March 2020;

(d)           notes the update (set out in Appendix C) from the Corporate Director for Children’s Services on the progress in delivering a sustainable solution to the High Needs element of the Dedicated Schools Grant; and

(e)           notes the forecast year end outturn positions for capital, reserves and Housing Revenue Account neighbourhood accounts.

Voting: Unanimous

Portfolio Holder: Finance