51 Revenue and Capital Budget – Projected Outturn position as at Quarter Two - 2022/23 PDF 916 KB
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Minutes:
The Executive Member for Finance and Governance and the Director of Finance submitted a report for Executive’s consideration.
The Council’s Scheme of Delegation gave the Executive collective responsibility for corporate strategic performance and financial management / monitoring, together with associated action. Standing Orders and Financial Procedures required Executive’s approval for major virements between revenue budgets, and in-year changes to the Council’s capital Investment Strategy.
The report provided the necessary information to enable Executive to discharge its financial management responsibilities, setting out:
· projected revenue and capital budget year-end outturns as at Quarter Two 2022/23;
· position statements in relation to the Council’s borrowing and prudential indicators, and its reserves and provisions; and
· actions that the Council has taken and plans to address the issues raised.
OPTIONS
No other options were considered as part of the report.
ORDERED
That Executive:
1. Approve the proposed revenue budget
virements over £150,000 as detailed in Appendix 1 of the report; and
2. Approve the revised Investment Strategy to
2024/25 at Appendix 2 of the report.
That Executive Notes:
1. That there was a projected 2022/23 revenue
budget year-end outturn as at Quarter Two of a £9.429m overspend.
3.
The
management action being taken to address the shortfall and to improve this
position further, wherever possible, in order to mitigate the risk on reserves.
4.
The
proposed implementation of a Flexible Use of Capital Receipts Strategy for
2022/23 to fund transformation costs, in particular in Children’s Services, as
approved by Full Council on 7 September 2022.
5. That the current projected outturn and any non-implementation
of the approved Financial Recovery Plan 2022/23 would have a negative impact on
the Council’s current Medium Term Financial Plan, and that the ongoing
financial challenges would continue into 2023/24 and future years. The position
was being assessed and would be reported in a separate report to this Executive
and then to Council as part of the Medium Term Financial Plan Update, and then
as part of the budget strategy for 2023/24 to Executive and Council. It was
noted there was currently a great deal of uncertainty in forecasting created by
the pay award, inflationary pressures, and the impact on demand for services.
6. The 2022/23 capital budget predicted
year-end outturn of £69.241m as at Quarter Two against a revised capital budget
of £90.614m
REASON
To enable the
effective management of finances, in line with the Council’s Local Code of
Corporate Governance, the Scheme of Delegation and agreed corporate financial
regulations.