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Strategic Planning and Infrastructure Committee

25 June 2019

 

4th Quarter Budget Monitoring 2018/19

 

Final Decision-Maker

Strategic Planning and Infrastructure Committee

Lead Head of Service/Lead Director

Mark Green, Director of Finance & Business Improvement

Lead Officer and Report Author

Chris Hartgrove, Interim Head of Finance

Classification

Public

Wards affected

All

 

Executive Summary

 

This report sets out the financial position for the Strategic Planning and Infrastructure (SPI) Committee at the end of Quarter 4 2018/19 against the revenue and capital budgets (i.e. the final outturn, subject to audit). The SPI Committee is now responsible for the service areas formerly overseen by the Strategic Planning, Sustainability and Transportation Committee which has now been decommissioned.

 

For this Committee, after taking into account grants to be carried forward of £70,000, there is an overspend against the revenue budget of £54,000.

 

Capital expenditure totalling £67,000 has been incurred during 2018/19 for the projects which sat within the SPST Committee’s remit, representing slippage of £161,000.

 

The report also includes projected costs for completing the forthcoming Local Plan Review.

 

This report makes the following recommendations to this Committee:

That:

1.   The financial performance for 2018/19 be noted.

 

2.   The slippage within the capital programme in 2018/19 be noted.

 

3.   The projected costs for completing the Local Plan Review be noted.

 

 

Timetable

Meeting

Date

Strategic Planning and Infrastructure Committee

25th June 2019



4th Quarter Budget Monitoring 2018/19

 

1.    INTRODUCTION AND BACKGROUND

 

1.1     The Medium Term Financial Strategy for 2018/19 onwards was agreed by full Council on 7 March 2018.  This report advises and updates the Committee on how each service has performed in regards to revenue and capital expenditure against the approved budgets within its remit.

 

1.2     The Director of Finance & Business Improvement is the Responsible Financial Officer, and has overall responsibility for budgetary control and financial management.  However in practice, day to day budgetary control is delegated to service managers, with assistance and advice from their director and the finance section.

 

1.3     Attached at Appendix 1 is a report detailing the position for the revenue and capital budgets at the end of the 2018/19 financial year.                                        

 

1.4     The Committee has received various reports on the Local Plan Review, which will involve significant financial resource over the next few years.  The costs of undertaking this work are acknowledged in the Medium Term Financial Strategy (MTFS), which was approved by Council on 27 February.  The MTFS includes a provision for additional resources, above and beyond base budgets, of £800,000 over the years 2017/18 to 2021/22, for the Local Plan Review.  So far none of this provision has been drawn down.  Appendix 2 sets out projected resource requirements for the Local Plan Review, and shows that the work can be delivered within the budgetary provision of £800,000.

 

 

2.        AVAILABLE OPTIONS

 

2.1     There are no matters for decision in this report.  The Committee is asked to note the contents but may choose to take further action depending on the matters reported here.

 

 

3.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

3.1     In considering the current position on the revenue budget and the capital programme at the end of 2018/19 the committee can choose to note this information or it could choose to take further action.

 

3.2     The committee is requested to note the content of the report and agree on any necessary action to be taken in relation to the budget position. 

 

 

 

 

4.       RISK

4.1    This report is presented for information only and has no risk management implications.

4.2     The Council has produced a balanced budget for both capital and revenue expenditure and income for 2018/19. This budget is set against a backdrop of limited resources and a difficult economic climate. Regular and comprehensive monitoring of the type included in this report ensures early warning of significant issues that may place the Council at financial risk. This gives this committee the best opportunity to take actions to mitigate such risks.

 

 

5.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

5.1     No consultation has been undertaken in relation to this report.

 

 

6.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

6.1     The fourth quarter budget monitoring reports are being considered by the relevant Service Committees in June 2019 including a full report to Policy & Resources Committee on 26th June 2019.

 

6.2     Details of the discussions which take place at service committees regarding budget management will be reported to Policy and Resources Committee where appropriate.

 

 

7.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

This report monitors actual activity against the revenue budget and other financial matters set by Council for the financial year.  The budget is set in accordance

with the Council’s Medium-Term

Financial Strategy which is linked to the strategic plan and corporate priorities.

Director of Finance & Business Improvement

Risk Management

This has been addressed in section 4 of the report.

Director of Finance & Business Improvement

 

 

Financial

Financial implications are the focus of this report through high level budget monitoring. The process of budget monitoring ensures that

services can react quickly to potential resource problems. The process ensures that the Council is not faced by corporate financial problems that may prejudice the delivery of strategic priorities.

 

Director of Finance & Business Improvement

Staffing

The budget for staffing represents a significant proportion of the direct spend of the council and is carefully

monitored. Any issues in relation to employee costs will be raised in this and future monitoring reports.

Director of Finance & Business Improvement

Legal

The Council has a statutory obligation to maintain a balanced budget and this monitoring process enables the committee to remain aware of issues and the process to be taken to maintain a balanced budget for the year.

 

Team Leader (Corporate Governance), MKLS

Privacy and Data Protection

No specific issues arise.

 

 

Director of Finance & Business Improvement

Equalities

There are no equalities implications as a result of this update report.

Equalities and Corporate Policy Officer

Crime and Disorder

No specific issues arise.

Director of Finance & Business Improvement

Procurement

No specific issues arise.

Director of Finance & Business Improvement

 

8.        REPORT APPENDICES

 

The following documents are to be published with this report and form part of the report:

·         Appendix 1: Fourth Quarter 2018/19 Revenue and Capital Monitoring – Strategic Planning and Infrastructure

·         Appendix 2: Resource Requirements for Local Plan Review

 

 

9.        BACKGROUND PAPERS

 

None