Agenda item

(Director of Resources) To consider the attached report (FPM-016-2017/18).

The Assistant Director, Accountancy presented the quarterly financial monitoring report which provided a comparison between the original estimate and the actual expenditure or income, for the period from 1 April 2017 to 30 September 2017. The report provided details of the revenue budgets for both Continuing Services and District Development Fund, Capital budgets which included Major Capital schemes.

The Cabinet Committee noted that the salaries schedule showed an underspend of £153,000 or 1.3%.

Within the Governance Directorate, Development Control income was down on expectations with Fees and Charges £55,000 lower than budget to date although this could be affected by the impending publication of the Local Plan.Building Control income was £64,000 higher than the budgeted and the ring-fenced account had assumed a deficit of £129,000 due to the amount of scanning work required, however the account could breakeven.

Within Neighbourhoods Directorate, Public Hire licence income and other licensing was above expectations, although figures included future years so in reality income relating to 2016/17 was £7,000 down. The Income from MOT’s carried out by Fleet Operations was a little above expectations, but the account was budgeted to show a deficit because of higher estimated  business rates and the Car Parking income was a little below expectations. The shopping park would be around £200,000 lower than expected as some units were let late, but the rental income was still expected to be around £2.5m per annum and Local Land Charge income was £9,000 above expectations. The waste management contract showed some underspend due to timing and the leisure contract payments were now on track.

The Cabinet Sub-Committee commented that the MOT’s income would need to be kept under review.

Within Communities, the expenditure and income relating to Bed and Breakfast placements had been on the increase and although some would be reimbursed by the Department for Work and Pensions, it was only around 50%, leaving a similar amount to be funded from the General Fund. Growth of £12,000 had been included in 2017/18 and a few cases had been rehoused in the Zinc Arts scheme. The Housing Repairs Fund showed an underspend of £84,000 and underspends showed on both Planned Maintenance and Responsive work.

The Cabinet Sub-Committee enquired about the completion date of the housing pods to help with the costs relating to Bed and Breakfast placements. The Finance Officer, J Whittaker advised that the pilot pods would be ready by April 2018 and further pods in November 2018. Also, that there were four projects included on the Major Capital Schemes schedule which related to the House Building packages 1, 2 and 3 and the Epping Forest Shopping Park.

The Assistant Director, Accountancy advised that the funding retained by the authority after allowing for the Collection Fund deficit from 2016/17 exceeded the government baseline by £389,000 and the actual position for 2017/18 would not be determined until May 2018. In addition the Council was holding £536,413 of cash and benefited from the effective collection of non-domestic rates. The Director of Resources advised that the Valuation appeal decision for doctor’s surgeries had been successful and although the settlements were in line with the budget, it would impact on the cash figures.

The Cabinet Sub-Committee were requested to note the Council’s financial position as of 30 September 2017.

Resolved:

That the Revenue and Capital Financial Quarterly Monitoring Report for the 1 April 2017 to 30 September 2017 be noted.

Reasons for Decision:

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

Other options Considered and Rejected:

No other options were available.