(NOTE: A copy of the report that was considered by the Strategy and Resources Committee on 3 August 2020 is attached).

Council considered the Performance and Financial Management report Quarter 4 2019/20 to the Strategy and Resources Committee on 3 August 2020 (circulated previously).

Report by Head of Resources (attached).

The Committee considered a report by the Head of Resources (circulated previously) regarding the Performance and Financial Management Quarter 4 2019/20.

The Accountancy Services Manager highlighted the following:

·         The revenue budget for 2019/20 was approved at Council on 25 February 2019 at £12,518,000 and as at 31 December 2019, the Council was reporting a net surplus of £6,000 against the budget.

·         As at 31 March 2020 the final outturn position was a budget surplus of £241,000, which was an overall movement of £235,000 from the latest forecast at quarter 3.  The reasons for the movement were detailed in Appendix A of the report.

·         The original budget for 2019/20 included a forecast to achieve £214,000 worth of salary vacancy savings.  This was exceeded by £31,000 giving an overall actual saving of £245,000.

·         A review of procedures and processes within Works and Recycling was carried out at quarter 2 and we set targeted spend in respect of the vehicle workshop, challenging resources across all Works and Recycling services and to reduce sickness levels. As a result of these changes we factored in a targeted reduction in overtime and agency costs within the quarter 2 projections.  The quarter 3 position forecast a net deficit position of £312,000 for the services, the outturn position has shown this deficit to increase by a further £57,000 in the final quarter due to further pressure on employees, vehicle costs and tipping charges. However, the level of overspend seen in the final quarter, some of which would have been impacted by events of the last 2 weeks of March, was around 50% the level of budget variance seen in the first three quarters.

·         As at 31 December 2019 additional Business Rates income was forecast of £200,000.  The outturn position improved on this by a further £6,000 with overall business rate growth of £206,000.

·         As at 31 March 2020 the Collection Fund reserve balance was £732,620.  This was a healthy balance which provided some protection against future volatility.

·         From the revenue budget surplus of £240,615, it was proposed to set aside this amount into earmarked reserves as detailed in paragraph 4.1.8 of the report.

·         The Covid-19 pandemic has had, and will continue to have a considerable impact upon the Council.  The government’s lockdown announced on 23rd March 2020, had meant that many businesses have been forced to close, significantly impacting on the local economy and upon sources of core income to the Council.  In addition the Council had incurred additional expense ensuring the most vulnerable in our community were cared for, the homeless were kept safe during this period and ensuring that key front-line services such as collecting waste and recycling were maintained throughout the crisis.

·         These additional costs have not had a dramatic impact on the financial outturn for 2019/20 as the pandemic only started to make a notable impact upon the public and businesses in the last two weeks of March.  The impact was being felt with losses across major income sources such as parking, commercial waste,  ...  view the full minutes text for item 159