Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Performance and Financial Management for Quarter 2 of 2021/22.

The Accountancy Services Manager highlighted the following:

·       The revenue budget for 2021/22 was approved at Council on 24 February 2021 at £13,639,000.

·       As at 30 September 2021, the latest forecast net budget was £13,617,000, which produces a forecast budget surplus of £22,000. Details were shown in “Appendix A – Variations in the Revenue Budget”.

·       There was still pressure on the 2021/22 budget due to the Covid-19 pandemic with continued additional costs being incurred and forecast decline in core income sources.

·       Factored within the approved budget included a government grant in relation to Covid-19 pressures of £536,710 and also budgeted for £375,000 of additional costs and reduced income.  These were already incorporated into Appendix A along with the latest forecast for each service area.

·       The Government grant of £536,710 was approved and received and it was anticipated the Council would receive £80,000 re-imbursement for Quarter 1 loss of Sales, Fees and charges, from the continued Government 75% income reimbursement scheme.  This was an estimate as the scheme had been extended to include the period April to June 2021 only.

·       At the end of 2020/21 the Council placed £375,000 into a Covid Budget management reserve to help mitigate any further adverse variances due to the pandemic in 2021/22.  This future protection was still available if required.

·       As at 31 March 2021 the Collection Fund reserve balance was £9,810,252 as detailed in paragraph 4.1.8 of the report.

·       An additional provision had been included within the forecast figures shown in Appendix A for the National Pay Award potentially being settled higher than the original 1% budgeted amount. Negotiations were ongoing between the Unisons and the Employers and the outcome of these discussions would be included within the next report.

·       “Appendix B – Movement in reserves and Balances” detailed the movements to and from earmarked reserves in 2021/22.

·       Full details of the Strategic Contingency Reserve movements and commitments were detailed in “Appendix C – Strategic Contingency Reserve”.

·       The 2021/22 Capital Programme was detailed in “Appendix D – Capital Programme 2021/22”.

·       The Budget and Financial Framework report to Full Council on 24 February 2021 outlined the Capital Programme for the 2021/22 financial year of £22,419,916. Project underspend of £917,121 was bought forward from 2020/21 year and further variations of £1,479,065 were approved as part of the performance and financial management report to Strategy and Resources Committee, to produce a revised 2021/22 Capital Programme of £24,816,102.

·       Overall variations of £4,213,427 were proposed to the 2021/22 Capital Programme as detailed in paragraph 4.4.3 of the report.

·       Actual spend on the 2021/22 Capital Programme as at 30 September 2021 was £4,292,304.

·       The overall Capital Programme for 2021/22 to 2024/25 was £46,151,018 and was broken down as detailed in paragraph 4.4.6 of the report.

·       The Programme of £46,151,018 was funded by Capital Receipts / Borrowing (£28,274,889), External Grants and Contributions (£16,154,193) and Reserves  ...  view the full minutes text for item 78