Agenda item

Purpose:

1. The purpose of this report is to provide Members with information on the revenue and capital outturn position of the Authority at the end of reporting period 3 which represents the financial outturn position for the 2017/18 financial year.

2. This report will also be considered by Select Committees as part of their responsibility to:

• assess whether effective budget monitoring is taking place,

• monitor the extent to which budgets are spent in accordance with agreed budget and policy framework,

• challenge the reasonableness of projected over or underspends, and

• monitor the achievement of predicted efficiency gains or progress in relation to savings proposals.

Recommendations Proposed To Cabinet

1. That Members consider a net revenue outturn underspend of £653,000, an improvement of £694,000 on period 2 (month 7) outturn predictions.

2. Members consider a capital outturn spend of £46.8 million against a revised budget of £47.2 million, after proposed slippage of £11.8 million, resulting in a net underspend of £395k.

3. Considers the use of reserves proposed in para 3.7.1,

4. Supports the apportionment of general underspend in supplementing reserve levels as described in para 3.7.3 below, i.e.:

Priority Investment Fund £155k

Capital Receipts Generation Reserve £50k

Balance Invest to Redesign Reserve £448k

Total £653k

5. Members note that the low level of earmarked reserves will notably reduce the flexibility the Council has in meeting the challenges of scare resources going forward.

6. Members notes the extent of movements in individual school balances placing emphasis on schools to review the extent that recovery plans can be delivered over shortened timescales, and appreciates a net use of balances of only £94k instead of the original budgeted intention of schools to draw on balances by £877k.

Member Scrutiny:

The Assistant Finance/Section 151 Officer presented the report and invited questions:

A Member asked about progress with the budget at Chepstow School and was informed that a recovery plan was put in place and the Headteacher, Governors and Bursar worked together to outperform the recovery plan ending the year with an £180,000 surplus.  Comparisons were drawn with the deficit positions of the other three secondary schools.  Recovery plans will be used to manage the situation back to surplus position.

The Chair referred to a recent robust scrutiny session with the Chief Officer, Resources regarding the procurement strategy mentioning the savings listed in this report being relatively small.  It was noted that savings of £100,000 for procurement were not met and questioned what other challenges are expected.  It was queried how to make changes and what potential there is to drive savings from procurement.  It was explained that there have been lessons learned and ways to make savings will be reviewed.  It was agreed that there needs to be a focus on managing commissioning.

A Member asked if there was extra capacity to assist with addressing this matter and suggested that expertise is used collaboratively.  It was explained that Officers involved in procurement have tended to be involved in repair and building, and a broader expertise is necessary.  A Working group across the Council was recommended.

A Member commented that there didn’t appear to be a system to map spending. 

A Member congratulated Chepstow School on its recovery from a deficit budget and recognised the Assistant Finance Officer’s input.  It was explained that the financial responsibility rests with the Governors, and was successfully delegated to the Headteacher, Staff and School Bursar. 

It was questioned if there was scope for a suggestion scheme to tap into staff members’ innovation. It was responded that the Council welcomes engagement.