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Communities, Housing and Environment Committee

17 July 2018

 

Revenue Outturn 2017/18 Ė Allocation of Underspend

 

Final Decision-Maker

Policy and Resources Committee

Lead Head of Service/Lead Director

Mark Green, Director of Finance & Business Improvement

Lead Officer and Report Author

Ellie Dunnet, Head of Finance

Classification

Public

Wards affected

All

 

Executive Summary

 

As reported to the last meeting of this Committee, the Council ended 2017/18 with an overall underspend against its revenue budget, amounting to £185,000.† Policy and Resources Committee will be considering the allocation of the underspend at its meeting on 24 July.† Proposals are invited from all Service Committees as to the allocation of the underspend.

 

 

This report makes the following recommendation to this Committee:

1.   That it identifies any one-off projects required to deliver Council strategic objectives, relating to functions within its remit, for which funding would not otherwise be available.

2.   That Policy and Resources Committee approves allocation of the necessary funding from the £185,000 underspend for 2017/18.

 

 

Timetable

Meeting

Date

Communities, Housing and Environment Committee

17 July 2018

Policy & Resources Committee

24 July 2018



Revenue Outturn 2017/18 Ė allocation of underspend

 

 

1.††† INTRODUCTION AND BACKGROUND

 

1.1     The overall financial outturn for the Council for 2017/18 was a revenue underspend of £185,000.† Within this underspend there were individual budget variances, both favourable and unfavourable.† Explanations for variances within individual cost centres which exceed £30,000 have been provided in accordance with the Councilís constitution and were considered by the relevant service committees in June 2018.

 

1.2     Overspends have been offset against underspends to arrive at the overall underspend for the Council of £185,000.† It is common practice to rely on underspends to offset overspends, while recognising that if a service is overspending persistently then there may be an underlying problem, requiring remedial action and/or an adjustment to the budget.

 

1.3     Allocation of the £185,000 underspend falls to Policy and Resources Committee, given its financial remit.† However, it is appropriate to seek the views of individual Service Committees on how this money is spent.

 

 

 

2.        AVAILABLE OPTIONS

 

2.1     Option 1

 

The Committee may wish to identify one or more one-off projects required to deliver Council strategic objectives, relating to functions within its remit, for which funding would not otherwise be available.

 

2.2     Option 2

 

The Committee may recommend that the underspend is added to revenue reserves.† If employed in this way, the underspend would provide additional resources for the Council, to be called on as necessary in the future.

 

2.3     Option 3

 

The Committee may choose not to make any recommendation.

 

 

3.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

3.1     If there is a project or projects which are genuinely required in order to meet the Councilís strategic objectives, and would not otherwise be funded, the Committee is recommended to choose Option 1 and give details of those projects.† Otherwise it is recommended that Option 2 is chosen.

 

 

 

4.       RISK

4.1     The Council has produced a balanced budget for both capital and revenue expenditure and income for 2018/19. The Councilís reserves are considered to be adequate.† The risk of using the underspend, rather than holding it in reserves, is not therefore considered to be excessive.

 

 

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 overall outturn for the year ended 31 March 2018 will be reported as part of the Councilís Statement of Accounts, which will be presented to the Audit, Governance and Standards Committee for approval at its meeting 30 July 2018.† The Statement of Accounts will be audited and is due to be approved by 31 July 2018 at the latest.

 

 

 

7.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

The Councilís budget is set in accordance

with the Councilís 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

Addressed in report.

 

Director of Finance & Business Improvement

Staffing

None.

Director of Finance & Business Improvement

Legal

The Council has a statutory obligation to maintain a balanced budget budget. This report informs the committee of a revenue underspend for 2017/18 and recommends options that assist in maintaining a balanced budget for the current financial year

 

†Mid Kent Legal

Privacy and Data Protection

No specific issues arise.

 

 

Director of Finance & Business Improvement

Equalities

Equalities implications will be considered as part of each project identified for funding allocation in line with the Councilís strategic priorities.

 

 

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

 

None.

 

 

9.        BACKGROUND PAPERS

 

None.

 

 

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