(NOTE: A copy of the report that was considered by the Strategy and Resources Committee on 3rd February 2020 is attached).
Report by Head of Resources (attached).
The Committee considered a report by the Head of Resources (circulated previously) regarding the Performance and Financial Management report for Quarter 3 of 2019/20.
The Accountancy Services Manager highlighted the following:
· As at 31st December 2019, the latest forecast net expenditure was £12,512,000, which produced a forecast budget surplus of £6,000. Quarter 2 forecast a budget deficit of £87,000. Details were shown in Appendix A – Variations in the Revenue Budget. The main variances supporting the £93,000 positive movement from quarter two to quarter three included savings within Temporary Accommodation and ICT Software and Devon WAN contract.
· The original budget for 2019/20 included a forecast to achieve £239,000 worth of salary vacancy savings. This was reduced to £214,000 as a result of a virement in respect of the redesign of the salary pay structure. The current position forecasts this will be exceeded by £17,000.
· A review of procedures and processes within Works and Recycling was carried out at quarter two and a targeted spend had been set in respect of the vehicle workshop, challenging resources across all Works and Recycling manual sections and to reduce sickness levels. As a result of these changes a reduction in overtime and agency costs was factored within the quarter 2 projections. The current figures indicated that these targeted reductions were being achieved, although it would continue to be closely monitored until the end of the financial year.
· The sale of recyclable material continued to be an uncontrollable variable where there had recently been a reduction to zero for glass and cardboard, although the sale price of plastic had increased significantly. The continued volatility remained a risk on-going and would be monitored closely.
· At the 31st December 2019, a £200,000 increase to business rates growth had already been factored into the budget, the growth was now estimated to be £1,702,000.
· Appendix B – “Movement in reserves and balances” detailed the movements to and from earmarked reserves in 2019/20.
· Appendix C – “Strategic Contingency Reserve” detailed the Strategic Contingency Reserve movements and commitments.
· Appendix D – “Capital Programme”. The Budget and Financial Framework report to Executive 4th February 2019 outlined the Capital Programme for the 2019/20 financial year of £9,609,022.
· Variations of £908,967 were proposed to the 2019/20 Capital Programme as detailed in paragraph 4.4.3 of the report.
· Variations of £528,428 were proposed to the 2020/21 Capital Programme as detailed in paragraph 4.4.4 of the report.
· Variations of £171,413 were proposed to the 2021/22 Capital Programme as detailed in paragraph 4.4.5 of the report.
· The revised Capital Programme for 2019/20 taking into account the budget variations was £8,102,276.
· Actual spend on the 2019/20 Capital Programme, as at 31st December 2019 was £3,795,934.
· The overall Capital Programme for 2019/20 to 2021/22 was £31,275,809.
· The Programme of £31,275,809 was funded by Capital Receipts (£14,082,815), External Grants and Contributions (£14,618,838) and Reserves (£2,574,156).
· Once funds had been included in the Capital Programme the Constitution required a separate decision to release those funds. Accordingly the HGV ramp scheme needed the ... view the full minutes text for item 93