Agenda item

(Assistant Director Accountancy) To consider the attached report (FPM-023-2017/18).

The Assistant Director (Accountancy) presented the Quarterly Financial Monitoring report on key areas of income and expenditure for the period covering 1 April 2017 to 31 December 2017. The reports were presented based on which directorate was responsible for delivering the services to which the budgets related.

The salaries schedule showed an underspend of £233,000 or 1.4%. The Resources Directorate was showing the largest underspend of £123,000, which related mainly to Housing Benefits, Facilities Management and Revenues. Neighbourhoods shows an underspend of £52,000 but it had been assumed that money from the Local Plan DDF budget would be required to prevent the salaries budget from becoming overspent. Other directorates were showing an underspend of around £20,000 each.

Within the Governance Directorate, Development Control income was down on expectations and the lower budget of £977,000 was probable. The Building Control income had been revised upwards from £450,000 to £530,000 and may exceed the anticipated outturn. The ring-fenced account had assumed a deficit of £129,000 due to the amount of scanning work required, however this had been revised to a small surplus of £6,000 which also now looked likely to be exceeded. Public Hire licence income and other licensing were close to expectations. The income from MOT’s carried out by Fleet Operations was left and although the account would still show a deficit in 2017/18, it was possible that it would be lower than expected.

Within Neighbourhoods Directorate the Car Parking income was on track. The shopping park had been included as the first units were now due to pay rent. Income in 2017/18 would be around £200,000 lower than expected as some units were let later than expected and tenants had not been identified for all the units when the budget was set, but the last three units were now in the final negotiations. Local Land Charge income was £3,000 below expectations. The waste and leisure management contract are both pretty much on track.

Within the Communities Directorate, expenditure and income relating to Bed and Breakfast placements had started to increase. Most were eligible for Housing Benefit and although some would be re-imbursed by the Department for Work and Pensions it was only around 50%, leaving a similar amount to be funded from the General Fund. Staff in the Communities directorate were keeping such placements to an absolute minimum and use of the Zinc arts and other similar schemes were expected to help keep expenditure down. The Housing Repairs Fund showed an underspend of £65,000, in both Planned Maintenance and Responsive work. There was also a variance on HRA Special Services which related mainly to tree maintenance and utility costs and underspends looked likely.

The Business Rates for funding purposes were set in the January preceding the financial year in question and for 2017/18; the funding retained by the authority after allowing for the Collection Fund deficit from 2016/17 was £3,499,000.  This exceeded the government baseline by £389,000 and the actual position for 2017/18 would not be determined until May 2018.

The Cash collection at the end of December, totalled £25,775,272 and payments out were £25,788,005, meaning the Council had paid out £12,733 more in cash than it had received. Although this represented a fraction of 1% when compared to the amounts collected overall.

In conclusion, income streams were either slightly below or above expectations but not significantly and expenditure was below budget which was often the case at this stage in the year. The Sub-Committee were asked to note the position on both the revenue and capital budgets.

The Acting Chief Executive advised that there was still a back log of invoices from Counsel and further costs associated with the Judicial Review would be forth coming. He informed the Sub-Commitee that the three remaining units at the Epping Forest Retail Park were in negotiations and concerns raised regarding the car parking charges in relation to The Broadway, Debden would be picked up in the Parking Review. Furthermore, the Section 278 Highways Works had been problematic with substantial delays and a final contract sum had been agreed at £4,250,000 with £165,000 being recovered from Essex County Council.

Resolved:

That the Revenue and Capital Financial Monitoring Report for the 1 April 2017 to 31 December 2017 be noted.

Reasons for Decision:

To note the third quarter financial monitoring report for 2017/18.

Other options Considered and Rejected:

No other options available.