Report by Director of Resources and Deputy Chief Executive to the Strategy and Resources Committee on 6 November 2023 (attached).

Council considered the Performance and Financial Management report for quarter 2 of 2023-2024 to the Strategy and Resources Committee on 6 November 2023 (circulated previously).

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

(a) Minute Extract of Strategy and Resources on 6th November 2023 (to follow).

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 2023/24 together with Minute Extract of Strategy and Resources on 6th November 2023 (circulated previously).

The Finance Manager highlighted the following:

·       The revenue budget for 2023/24 was approved at Council on 22nd February 2023 at £14,766,450.

·       As at 30th September 2023, the latest forecast net budget was £14,698,450, which produced a budget surplus of £68,000, which was an improvement of £51,000 on quarter one. Details of the Variations of the Revenue Budget could be seen at Appendix A of the report

·       The original budget for 2023/24 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasts that the Council would achieve £142,000 based on known vacancies to date, but it was anticipated that the budget of £250,000 would be achieved by the end of the financial year.

·       The national pay award had been agreed by the Unions and the additional costs of this would be funded with the sum of £436,000 from the Budget Management Reserve.

·       The Collection Fund reserve balance was, approximately £1.3 million. This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected. This reserve included a £912,000 balance that would be utilised in 2023/24 and 2024/25 to mitigate timing differences of business rate reliefs awarded in 2022/23, this left a reserve balance of just over £427,000 protection against future volatility.

·       The Valuation Office Agency had notified the Council that the Rateable Value of the Museum of Barnstaple and North Devon was to be reduced to £1, backdated to 2019.

·       As at the 30th September 2023 total external borrowing was £3m. The timing of any future borrowing was dependent on how the authority managed its treasury activity.

·       Due to slippages in the Capital programme and using the cash flow balances for internal borrowing had reduced borrowing costs on the expenditure budget and the Council was currently forecasting a £164,000 underspend on the interest payable.

·       There is also no anticipated use of the Treasury Management reserve during 2023/24 and so the full reserve balance of £275,000 could be carried forwards to help protect and mitigate against higher borrowing costs in the future financial years.

·       Due to on-going higher interest rates the Council was also reporting a £250,000 net increase in interest receivable.

·       The costs of Temporary Accommodation had increased, the average cost per night have increased from £60 to £70 per night. The volume of cases presenting as homeless was also increasing but this was partly mitigated by the on-going programme of purchasing Temporary Accommodation properties. The increase in costs of £194,000 had been offset by additional homelessness grant.

·       Appendix B of the report – “Movement in Reserves and Balances” detailed the movements to and from earmarked reserves.

·       Appendix C of the report – “Strategic  ...  view the full minutes text for item 18

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 Q2 2023-24.

The Finance Manager highlighted the following:

·         The revenue budget for 2023/24 was approved at Council on 22^nd February 2023 at £14.766 million.

·         As at 30^th September 2023, the latest forecast net budget was £14,698,450 which produced a budget surplus of £68,000, this was an improvement of £51,000 on quarter one.  Details of the Variations of the Revenue Budget could be seen at Appendix A of the report.

·         The original budget for 2023/24 included a forecast to achieve £250,000 salary vacancy savings.  The current position forecasted that £142,000 based on known vacancies to date, but it was anticipated that the £250,000 saving would be met by the end of the financial year.

·         The national pay award had been agreed by the Unions and the additional costs of this would be funded with the sum of £436,000 from the Budget Management Reserve.

·         The Collection Fund reserve balance was, approximately £1.3 million.  This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected.  This reserve included a £912,000 balance that would be utilised in 2023/24 and 2024/25 to mitigate timing differences of business rate reliefs awarded in 2022/23, this left a reserve balance of just over £427,000 protection against future volatility.

·         The Valuation Office Agency had notified the Council that the Rateable Value of the Museum of Barnstaple and North Devon was to be reduced to £1, backdated to 2019.

·         The refund received from this backdate had a positive net impact to the Council £228,000, it was recommended that this be placed into the Regeneration Reserve for future projects.

·         As at 30^th September 2023 external borrowing was £3 million.  The timing of any future borrowing was dependent on how the Council managed its treasury activity.

·         Due to slippages in the Capital programme, and using the cash flow balances for internal borrowing had reduced borrowing costs on the expenditure budget and a net forecast of £164,000 underspend on interest payable was being made.

·         There was no anticipated use of the Treasury Management reserve during 2023/24 and so the full reserve balance of £275,000 could be carried forwards to help protect and mitigate against higher borrowing costs in the future financial years.

·         Due to on-going higher interest rates the Council was also reporting a £250,000 net increase in interest receivable.

·         The costs of Temporary Accommodation had increased.  The volume of cases presenting as homeless was also increasing but this partly mitigated by the on-going programme of purchasing Temporary Accommodation properties.  The increase in costs of £194,000 had been offset by additional homelessness grant.

·         Appendix B of the report – “Movement in Reserves and Balances” detailed the movements to and from earmarked reserves.

·         Appendix C of the report – “Strategic Contingency Reserve” detailed in full movements and  ...  view the full minutes text for item 52