Agenda item

To consider the report (attached).

The Assistant Director (Accountancy) reported on the second Quarterly Financial Monitoring report, which provided a comparison between the original estimate for the period ended 30 September 2018 and the actual expenditure or income. The reports covered the key areas of income and expenditure from 1 April 2018 to 30 September 2018. They were aligned to the new service directorates responsible for delivering the services to which the budgets related and the budgets themselves were the original estimate. However, the salaries monitoring data, which represented a large proportion of the Councils’ expenditure, was not presented under the new service directorates due to its complexity.

The report outlined the following points:

·                Revenue budgets (Annex 1 – 9) showed that the salaries schedule (Annex 1) had an underspend of £140,000 or 1.1%. The trend was indicating there would be a decrease over the rest of the year.

·                Development Control income at month 6 was well above expectations. Fees and charges were £139,000 higher than the budget to date and other pre-assessment charges were £23,000 higher than expected. This was due to the ongoing progress of the Local Plan where a number of larger schemes had come through this year.

·                Building Control income was £13,000 higher than the budgeted figure at the end of the second quarter.

·                Bed and breakfast expenditure had increased from 19 cases to 21 in such accommodation, which was relatively low. This was a cost to the Council’s general fund and so needed to be monitored closely. Although there were several initiatives in place to stem the use of bed and breakfast accommodation, any actual effect that those initiatives were having was difficult to measure.

·                The waste contract expenditure had fallen behind due to late invoicing and the leisure management contract showed a reduction in income due to some unexpected pension related expenditure. Therefore, the full expected saving would now be achieved later than expected.

·                The proposals for 75% of Business Rates to be retained within the local government sector would take effect from the financial year 2020/21. However, the proportions retained by each local government tier were likely to change. A bid was submitted to Central Government by all Essex authorities, except Thurrock, to become a 75% retention pilot for 2019/20, but the outcome due on 6 December had been delayed.

Councillor G Mohindra asked about use of the Council’s pods for the homeless, to which P Maddock replied that expenditure would decrease once the pod project was completed. It was unlikely all six pods at Norway House would be in operation this financial year. P Maddock would try and clarify this with the Service Director (Housing and Property), P Pledger.

Councillor G Mohindra commented on the low expenditure on disabled adaptations and if this was not spent, whether it should be reallocated. P Maddock replied that spend in this area should be going up, but was due to a backlog caused by the combination of staffing issues and tendering for two new contractors to assist in the increasing volume of disabled adaptations and extensions, but he would clarify this with the Service Director (Housing and Property).

            RESOLVED:

That the report on Quarterly Financial Monitoring for the second quarter of 2018/19 be noted.