Agenda item

Consider report by Chief Financial Officer providing budgetary control statements for the Council’s General Fund. (Copy attached).

With reference to paragraph 11 of the Minute of 21 November, there had been circulated copies of a report by the Chief Financial Officer providing budgetary control statements for the Council’s General Fund based on actual expenditure and income to 31 December 2017 and explanations of the major variances between projected outturn expenditure/income and the current approved budget.  The report explained that after the third quarter of 2017/18 the Council overall was projecting a balanced position at 31 March 2018 with all known pressures and risks being managed within the 2017/18 revenue budget.  The Chief Financial Officer referred to paragraph 3.1 of the report and advised that the additional funding of £601k being directed from IJB had been received, removing this risk.    The Chief Executive’s instruction to restrict discretionary spend for the remainder of 2017/18 had contributed to this forecasted balanced position and would remain in place for the remainder of 2017/18.  This budgetary action aimed to mitigate any further budget pressures which might arise during the remainder of 2017/18 and maximise year end underspend opportunities to support the financial position of the Council.  The approach adopted around restricting discretionary spend towards the end of the financial year had been very beneficial to the Council in previous years.  Previous monitoring reports in 2017/18 had highlighted to Members that work was ongoing to stabilise the new Business World ERP system.  Ongoing technical difficulties were still being experienced including bank reconciliation and payroll, the resolution of these issues was being managed by external consultants and being paid for by CGI.  Work to enhance Business World functionality was progressing with CGI and steady progress continued to be made against an agreed rectification plan.   Appendix 4 showed the savings that had been delivered within the current year.  The remaining 3% (£0.430m) were profiled to be delivered during the remainder of 2017/18.  Emphasis during the remaining three months of 2017/18 needed to be placed on delivering as many savings as possible permanently as per the Financial Plan.  Full details of pressures, risks and challenges were detailed in Appendix 1 to the report.  Appendix 2 reflected virements required to realign budgets in line with current forecasts.  Appendix 3 included earmarking of £1m which had been transferred to Allocated Balances to support the 2018/19 Financial Plan. 

4.2       The Committee discussed the report and noted that at present only 58% of the savings had been made on a permanent basis. Mr Robertson explained that the Corporate Management Team was working on making permanent savings and progress with the implementation of Business World, and the Roads Review was being tracked.  Mr Robertson explained that a remediation plan had been agreed with CGI, prioritising Business World’s workstreams.  However, it was anticipated this would not be completed until the autumn.    The Executive Committee would continue to receive updates on progress through quarterly monitoring reports.             

            DECISION

(a)        NOTED:-

(i)         the corporate monitoring position projected at 31 December 2017, the underlying cost drivers and the identified areas of financial risk as reflected in Appendix 1 to the report;

(ii)        progress made in achieving Financial Plan savings in Appendix 4 to the report; and

(iii)       the action taken by Corporate Management team to deliver a balanced budget in the current year.

(b)       AGREED:-

(i)         the virements attached as Appendix 2 in order to realign budgets in 2017/18 in line with current forecasts; and

(ii)        the earmarking of budget from 2017/18 attached as Appendix 3 to the report.