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Issue - meetings

Financial Performance Report – 2023/24 Quarter Three

 

 

Meeting: 06/03/2024 - Executive (Item 164)

164 Financial Performance Report – 2023/24 Quarter Three pdf icon PDF 302 KB

Purpose:

To detail the Council’s financial performance for Quarter Three 2023-2024.

 

Recommendations:

That the Executive Resolves to:

1.    Note the Council’s Financial Performance for Quarter Three 2023-2024;

2.    Delegate authority to the Director of Finance, in consultation with the Executive Member for Finance, to review and repurpose earmarked reserves to mitigate against the four main financial risks identified in the report.

Additional documents:

Minutes:

Councillor Alaric Smith, Executive Member for Finance, introduced the report, which detailed the Council’s financial performance for Quarter Three 2023-2024.

 

The Executive Member stated that the Executive had received a recommendation from the Overview and Scrutiny Committee, requesting that the Chair of the Overview and Scrutiny Committee be included as a consultee in the delegation to the Director of Finance, to review and repurpose earmarked reserves, in addition to the Executive Member for Finance.

 

The Executive Member stated that the Executive had decided not to accept the recommendation, highlighting that the additional consultation of the Chair of Overview and Scrutiny Committee would blur Executive and non-Executive responsibilities and would therefore not be appropriate.

The Executive Member reminded Members and Officers that Delegation to the Director of Finance in consultation with the Executive Member of Finance, is proper in terms of governance, adding that any decisions taken by officers would be notified to Members and any key decisions taken by officers would be subject to call in by Members.

 

Councillor Alaric Smith proposed that the Executive agree to the recommendations as listed on the report. This was seconded by Councillor Andy Graham, was put to a vote, and was unanimously agreed by the Executive.

 

The Executive Resolved to:

  1. Note the Council’s Financial Performance for Quarter Three 2023-2024;
  2. Delegate authority to the Director of Finance, in consultation with the Executive Member for Finance, to review and repurpose earmarked reserves to mitigate against the four main financial risks identified in the original report.

Meeting: 29/02/2024 - Overview and Scrutiny Committee (Item 52)

52 Financial Performance Report – 2023/24 Quarter Three pdf icon PDF 292 KB

Purpose:

To detail the Council’s Financial Performance for Quarter Three 2023-2024.

 

Recommendation:

That the Committee scrutinises the Financial Performance for Quarter Three 2023-2024 report and agrees any recommendations it wishes to submit to the Council’s Executive.

 

Invited:

Councillor Alaric Smith, Executive Member for Finance

Madhu Richards, Finance Director

Additional documents:

Minutes:

The Executive Member for Finance introduced the report that detailed the Council’s financial performance for Quarter Three 2023-2024. It was explained that the position at year end was forecasted to be an overspend of £326,268. The equivalent figure at Q2 was £783,170. The outturn position had significantly improved due to the contribution of £554,000 in additional Treasury Management investment income and an expected £250,000 reimbursement from Publica relating to early delivery against savings targets and slightly higher employee turnover.

The Finance Director asked the Committee to note the recommendation of delegated authority on page 62 of the report and that it was to ensure reserves could be used to address various risks if required.

Various questions and points of clarification were raised with Officers providing answers and points of clarification as follows:

  • Earmarked reserves that were no longer required for specific projects could be used to help with the general fund.
  • The budget was set on a general fund and the earmarked reserves were separate.
  • On page 63 the funds were earmarked but not ring-fenced. Therefore there was a request for delegated authority to revisit and move some monies into areas that were more of a risk if required.
  • All four risks that were referenced in the budget and medium term financial strategy (MTFS) were in the public domain.
  • This was an annual review and a risk assessment exercise that identified and assessed the highest risks.
  • Section 106 monies were not held in earmarked reserves.
  • The amount to be spent on mitigating the risks was not known yet.

 

RESOLVED that AGREED to submit the following recommendation to the Executive on 6 March 2024:

  1. That the Chair of the Overview and Scrutiny Committee is included as a consultee in the delegation to the Director of Finance to review and repurpose earmarked reserves, in addition to the Executive Member for Finance.

 

 

 

 

 

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