Issue - meetings

Revenue and Capital Budget - Forecast Outturn position at Quarter Three 2023/24

 

 

Meeting: 14/02/2024 - Executive (Item 68)

68 Revenue and Capital Budget - Forecast Outturn position at Quarter Three 2023/24 pdf icon PDF 1 MB

Additional documents:

Decision:

ORDERED

 

1.    In respect of the General Fund Revenue Budget that Executive approve the proposed revenue budget virements over £250,000 as detailed in Appendix 4. These were technical adjustments.

2.    In respect of the Capital Programme and Treasury Management that Executive approve the inclusion of additions to the Capital Programme for 2023/24 totalling £0.297m (summarised in Table 9) which were externally funded or funded from within existing Council resources for the 2023/24 Capital Programme as approved by Council in February 2023. These had increased the 2023/24 Capital Programme budget to £67.631m from the £67.334m revised Capital Programme budget for 2023/24 approved at Quarter Two.

 

AGREED

 

In respect of the General Fund Revenue Budget that Executive:

1.    Note the forecast 2023/24 net revenue budget year-end outturn as at Quarter Three of £131.898m against an approved budget of £126.354m, a forecast year-end overspend of £5.544m (4.4%). This represented an improvement of £3.012m from that forecast at Quarter Two.

2.    Note that the forecast year-end overspend of £5.544m related primarily to a combination of forecast demand and inflationary pressures as detailed in the table on page 39 of the agenda pack.

3.    Note and endorse the management actions taken in consultation with Executive Members over the year to date to control expenditure within the approved budget and to develop more financially sustainable solutions for future years as set out in paragraphs 4.6 to 4.13 of the report.

4.    Note that work would continue to try to mitigate further the forecast year-end overspend before the end of 2023/24 and the final position would be reported as part of the final 2023/24 outturn report to Executive in June 2024.

 

In respect of the Council’s Reserves and Provisions Executive:

 

1.    Note that the s151 Officer had undertaken a review of the balance sheet which had resulted in the release of £0.757m from the Revenue Grants Received Unapplied account that has been transferred to the Change Fund and the balance had been re-stated as at 31 March 2023 from £0.730m to £1.487m.

2.    Note that the s151 Officer had determined that the 2023/24 Change Fund Reserve of £1.487m, should be available to fund expenditure on transformation and efficiency as part of an agreed financial recovery plan.

3.    Note that, as a result of the balance sheet review, the s151 officer was in discussion with the External Auditor in relation to the audit of the Council’s methodology to calculate the Collection Fund Bad Debt provision in 2021/22 financial statements. This was estimated to result in a favourable adjustment of approximately £8.3m affecting the 2022/23 and 2023/24 accounts and impact upon 2024/25 budget setting – this would be used to replenish the usable unrestricted revenue reserves and General Fund balance that would be used to fund the final 2023/24 overspend.  This sum was not available to balance the 2024/25 budget.

 

In relation to the Council’s financial recovery and resilience Executive:

 

1.    Note the Quarter Three forecast of usable revenue reserves of £9.036m available at 1 April 2024 based on  ...  view the full decision text for item 68

Minutes:

The Executive Member for Finance and Governance submitted a report for Executive’s consideration.

 

The report set out a forecast of the year-end annual outturn for the financial year 2023/24, based on the Quarter Three review of revenue current and projected expenditure against the current year’s Revenue Budget, and highlighted the areas of financial challenge.

 

The report also set out the management actions that had been taken to control expenditure within the General Fund budget approved by Council in February 2023 as well as seeking Executive’s endorsement of the management actions that were in place to control expenditure within the approved budget and to develop more financially sustainable solutions for future years.

 

The report sought approval from Executive in relation to revenue budget virements and revisions to the Capital Programme.

 

The Council’s Scheme of Delegation gave Executive collective responsibility for corporate strategic performance and financial management / monitoring, together with associated actions. Standing Orders and Financial Procedures required Executive’s approval for major virements between revenue budgets, and in-year changes to the Council’s Capital Programme within approved Council resources.

 

The report enabled Executive to discharge its financial management responsibilities by setting out the General Fund Revenue Budget forecast outturn at Quarter Three, the Statement of the Council’s projected reserves and provisions at Quarter Three, the Capital Programme forecast outturn at Quarter Three, the statement of the Council’s borrowing and prudential indicators and actions that the Council had taken, and planned to take, in order address the issues identified.

 

Financial Procedure Rule 1.37 required Executive’s approval of the proposed revenue budget virements as set out in Appendix 4.

 

A revised Capital Programme for the period 2023/24 to 2025/26 was attached at Appendix 6 for Executive’s consideration.

 

The Executive Member for Finance and Governance commented that both Members and Officers and Officers had worked together to improve the Council’s financial situation. The Director of Finance was thanked for her work on the report and that of the Collection Fund.

 

The Mayor commented that the Council’s improved outturn projections was another reflection the Council could control its own destiny.

 

ORDERED

 

1.    In respect of the General Fund Revenue Budget that Executive approve the proposed revenue budget virements over £250,000 as detailed in Appendix 4. These were technical adjustments.

2.    In respect of the Capital Programme and Treasury Management that Executive approve the inclusion of additions to the Capital Programme for 2023/24 totalling £0.297m (summarised in Table 9) which were externally funded or funded from within existing Council resources for the 2023/24 Capital Programme as approved by Council in February 2023. These had increased the 2023/24 Capital Programme budget to £67.631m from the £67.334m revised Capital Programme budget for 2023/24 approved at Quarter Two.

 

AGREED

 

In respect of the General Fund Revenue Budget that Executive:

1.    Note the forecast 2023/24 net revenue budget year-end outturn as at Quarter Three of £131.898m against an approved budget of £126.354m, a forecast year-end overspend of £5.544m (4.4%). This represented an improvement of £3.012m from that forecast at Quarter Two.  ...  view the full minutes text for item 68