Issue - meetings
Performance and Financial Management Quarter 1 of 2024/25
Meeting: 05/08/2024 - Strategy and Resources Committee (Item 37)
37 Performance and Financial Management Quarter 1 of 2024/25 PDF 465 KB
Report by Finance Manager (attached)
Additional documents:
- Appendix 1, item 37
PDF 172 KB
- Appendix 2, item 37
PDF 183 KB
- Appendix 3, item 37
PDF 102 KB
- Appendix 4, item 37
PDF 155 KB
- Appendix 5, item 37
PDF 510 KB
Minutes:
The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously), regarding Performance and Financial Management Quarter 1 of 2024/25.
The Finance Manager highlighted the following:
· The revenue budget for 2024/25 was approved at Council on 21 February 2024 at £16,432,690.
· As at 30 June 2024, the latest forecast net budget was £16,419,690, which produces a budget surplus of £13,000. Details were shown in Appendix A – Variations in the Revenue Budget of the report.
· The original budget for 2024/25 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasted that the Council would achieve £143,000 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 was currently being considered by the Unions; however if the 2024-25 pay award exceeded the budgeted 4% included in the original budget then the Council would look to fund any shortfall from the Budget Management reserve, which currently had a balance of £528,627.
· As at 1 April 2024 the Collection Fund reserve balance held was £1,790,180. 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. Collection Fund deficits/surpluses were reversed out to bring the revenue account back to the budgeted figure for the year; the deficits/surpluses were recovered/distributed in the following financial years. This reserve included a £1,246,078 balance that would be utilised in 2024/25 (£1,012,856) and 2025/26 (£233,222) to mitigate timing differences of business rate reliefs awarded in 2023/24 that from an accounting perspective impact over the next two financial years; thus leaving the fund reserve with a residue balance of £544,105 protection against future volatility.
· At the 30 June 2024 total external borrowing was £6,000,000. The timing of any future borrowing was dependent on how the Authority managed its treasury activity.
· Due to project spend slippages in the Capital programme and using the cash flow balances for internal borrowing, an estimated reduction in borrowing costs and a potential underspend of £100,000 on the interest payable revenue budget.
· The Budget and Financial Framework report to Full Council 21 February 2024 outlined the Capital Programme for the 2024/25 financial year of £20,258,368. Project underspend and further variations of £4,356,379 were approved as part of the performance and financial management report to Strategy and Resources Committee, to produce a revised 2024/25 Capital Programme of £24,614,747.
· The Programme of £30,905,987 is funded by Capital Receipts / Borrowing (£13,411,234), External Grants and Contributions (£15,417,968) and Reserves (£2,076,785).
· Release of Funds – Capital Programme:
Ø S106 Anchorwood Bank £11,170.
· Section Five of the report detailed a summary of updates on the Corporate Plan, Key results and performance indicators.
In response to a question on the impact to the Council if the pay award were settled at a half percent or full percentage higher than currently ... view the full minutes text for item 37