Your Councillors


Strategic Planning, Sustainability and Transportation Committee

6 November 2018

 

2nd Quarter Budget Monitoring 2018/19

 

Final Decision-Maker

Strategic Planning, Sustainability and Transportation Committee

Lead Head of Service/Lead Director

Mark Green, Director of Finance & Business Improvement

Lead Officer and Report Author

Ellie Dunnet, Head of Finance

Paul Holland, Senior Finance Manager

Classification

Public

Wards affected

All

 

Executive Summary

 

This report sets out the financial position for this Committee at the end of Quarter 2 2018/19 against the revenue and capital budgets.

 

For this Committee, there is an overspend against the revenue budget of £45,000, but this is expected to worsen to an overspend of £231,000 by the end of this financial year.

 

The existing overspend is comprised of an overspend within Parking Services of £24,000 and an overspend of £21,000 on Planning Services.

 

There has been capital expenditure of £35,000 to date this year for the projects which sit within this Committee’s remit.  This represents slippage of £0.454m.

 

 

This report makes the following recommendations to this Committee:

1.   That the revenue position at the end of the second quarter and the actions being taken or proposed to improve the position, where significant variances have been identified, be noted.

 

2.   That the capital position at the end of the second quarter is noted.

 

 

 

Timetable

Meeting

Date

Strategic Planning, Sustainability and Transportation Committee

6 November 2018


 2nd Quarter Budget Monitoring 2018/19

nd

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 September 2018. This is a new format from that used in previous years, designed to bring together all the relevant information in a single report that can also be used as a stand-alone document.  It includes all the information that Members have previously seen in budget monitoring reports.

 

 

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 September 2018 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 second quarter budget monitoring reports are being considered by the relevant Service Committees between October and December, including a full report to Policy & Resources Committee on 21 November 2018.

 

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.

 

Mid Kent Legal

Privacy and Data Protection

No specific issues arise.

 

 

Director of Finance & Business Improvement

Equalities

The budget ensures the focus of resources into areas of need as identified in the Council’s strategic priorities. This monitoring report ensures that the budget is delivering services to meet those needs.

Director of Finance & Business Improvement

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: Second Quarter 2018/19  Revenue and Capital Monitoring – Strategic Planning, Sustainability and Transportation

 

 

9.        BACKGROUND PAPERS

 

None

 

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