Issue - meetings

To receive the report considered by Cabinet on 18^th January 2022. 

The Executive Director, Corporate Development introduced the Quarter 3 Financial Management Report which had been considered by Cabinet on 18 January 2022 and made comment on the current cost of living issue and consequent impact on residents and council services.

The Corporate Director, Finance & Commercial advised that the

forecast overspend had reduced through year and there had been improvements against budgets across many of the service areas.  The accounts were in the process of being finalised for 2021/22 and predictions were that the outturn would be very close to the budget set.

The Corporate Director, Finance & Commercial gave a Summary of the report before inviting Finance Business Partners to give updates on the impact of inflation affecting pay, fees and energy costs, procurement services, types of procurement contracts and the impacts of the forthcoming Adult Services care fee cap.

The Corporate Director, Finance & Commercial confirmed the next steps to Close the 2021/22 accounts and present the outturn position to Cabinet in June.

In response to member questions, members were advised that some suppliers had found it difficult to price goods and services in the current economic climate, there was some risk that there may not be such an open market.

The need for good contract managers who would seek assurance of where costs had been occurred was raised and whether more in-house provision should be investigated for children’s residential homes which could provide more value for money in the future.

In response the Executive Director, Corporate Development reminded members that inflationary risk had been highlighted during the budget setting process.  In addition to an inflation uplift there had also been additional uplifts in some specific areas.  £8.7m had been set aside as a contingency budget and general fund reserves of approx. £33m.

The profile on contract management had been raised across the organisation but there was a fine balance to reach, including talking to suppliers to see if there was a way for the council to help them reduce their costs to avoid them passing those costs on to us.  Balance between being a firm contract manager but having an open relationship with suppliers. Many skilled people in various sectors of the council had set up an internal network to learn from each other.

Members were concerned over inflationary pressures faced by the council and felt it would be helpful to understand the inflationary cost pressures for the separate directorates as they would vary. 

Inflation was changing weekly and the committee were keen to know what the various inflationary pressures were on a more regular basis.

The Executive Director, Corporate Development confirmed that the intention was to look at reporting mechanisms, with more information on the sensitive areas reported.

The report was noted.

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Assets.

Noted

(a)           That the senior leadership team’s forecast of outturn at the end of Quarter 3, including progress of the transformation and tactical savings incorporated into the budget be noted.

(b)           That the position on the capital programme at the stage and the likelihood of significant slippage into 2022/23, as referenced throughout the budget setting work, be noted.

(c)           That the downgrading of the risk assessment for the financial performance for the final quarter of the current year be agreed.

Reason to note and receive the report

The Council had responsibilities to deliver within its corporate plan and it must do this within the resources made available through the revenue and capital budgets for 2021/22. The report summarised the Council’s forecast financial performance for 2021/22 at the Quarter 3 point of the year.

The Portfolio Holder for Finance, Commercial & Capital Strategy presented the quarter 3 financial management report. The document provided information about the Council’s forecast performance against its revenue budget in 2021/22 and the impact this could have upon reserves, including the general fund.

Noted

(a)           That the senior leadership team’s forecast of outturn at the end of Quarter 3, including progress of the transformation and tactical savings incorporated into the budget be noted.

(b)           That the position on the capital programme at the stage and the likelihood of significant slippage into 2022/23, as referenced throughout the budget setting work, be noted.

(c)           That the downgrading of the risk assessment for the financial performance for the final quarter of the current year be agreed.

Reason to note and receive the report

The Council had responsibilities to deliver within its corporate plan and it must do this within the resources made available through the revenue and capital budgets for 2021/22. The report summarised the Council’s forecast financial performance for 2021/22 at the Quarter 3 point of the year.