Issue - meetings
Financial Performance Report 2024-25 Quarter Two
Meeting: 20/11/2024 - Executive (Item 252)
252 Financial Performance Report 2024-25 Quarter Two 
PDF 392 KB
Purpose:
To detail the Council’s financial performance for Quarter Two 2024-2025
Recommendations:
That the Executive resolves to:
1. Note the Council’s Financial Performance Report for Quarter Two 2024-2025
Additional documents:
Minutes:
The Executive Member for Finance introduced the report that detailed the Council’s financial performance for Quarter Two 2024-2025 Overall overspend.
It was explained that at quarter 2 (Q2) there was an overall overspend of £96,821 against the profiled budget for the period and at quarter 1 there was an overall overspend of £257,013 against the profiled budget. The key factors driving this revenue position were income shortfalls in garden waste and development management, the delayed Elmfield office letting, the empty Carterton Industrial Estate units and increased expenditure on waste and recycling container replacement.
Development management income has struggled in the first half of the year but may yet recover should a major application be received. The recycling contract with Suez had also expired at the end of September and the cost centre was showing a temporary underspend of £126,000 against the contract as officers and Suez were negotiating the final two months invoicing cost. The new contract, approved at the Executive meeting on 11th September 2024, was expected to deliver a budget saving of £300,000 from 2025/26 (£62,000 in 2024/25).
The Elmfield offices had been empty since August 2023 and required capital investment before the new tenant occupies the building in January 2025. The tenant would undertake the work and has scheduled it to take 12 weeks. Rent would be paid from mid - January, irrespective of whether the construction works had been completed. There was a table in the report that set out the summary revenue monitoring position for the 30th September 2024 against profiled budget by service area.
As reported in Q1 there continue to be some key areas of concern which have been highlighted in the body of the report. Some overspends that have been reported cannot be mitigated and will be an overspend at year end.
The revenue outturn position, which was forecast to year end in the table at £87,203 overspent does not include the non-revenue budget lines which could materially change the final outturn position i.e. retained Business Rates, Publica contract refund, interest on external borrowing and Minimum Revenue Provision. All of these elements, which were classed as funding, would not be known until year end and therefore the table offers a guide on the cost of services position only. All areas would be closely monitored and reported on in future quarterly Financial Performance Reports.
Councillor Alaric Smith proposed that the Executive agree the recommendations as listed on the report. This was seconded by the Leader, 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 Two 2024-2025.
Meeting: 06/11/2024 - Overview and Scrutiny Committee (Item 63)
63 Financial Performance Report 2024-25 Quarter Two PDF 391 KB
Purpose:
To detail the Council’s financial performance for Quarter Two 2024-2025.
Recommendations:
That the Committee resolves to:
1. Agree any recommendations it wishes to submit to the Executive on 20 November 2024.
Invited:
Councillor Alaric Smith, Executive Member for Finance
Madhu Richards, Director of Finance
Georgina Dyer, Chief Accountant
Additional documents:
Minutes:
The Executive Member for Finance introduced the report that detailed the Council’s financial performance for Quarter Two 2024-2025Overall overspend.
It was explained that the considered the significant variances in revenue income and expenditure against the approved revenue budget set by Full Council on 28th February 2024 which anticipated a contribution of £5,107 to General Fund reserves. The report also included progress in delivering the approved Capital Programme. A year end revenue forecast was also included based on the data available in Q2. The forecast did not include any potential variances in funding i.e. Interest on external borrowing, Minimum Revenue Provision, Retained Business Rates income and General Government Grants. These items made a significant impact on the 2023/24 outturn position, but at this stage in the year it was not possible to accurately predict their final position for the year.
At quarter 2 (Q2) there was an overall overspend of £96,821 against the profiled budget for the
period. At quarter 1 there was an overall overspend of £257,013 against the profiled budget. The key factors driving the revenue position were income shortfalls in garden waste and development management, the delayed Elmfield office letting, the empty Carterton Industrial Estate units and increased expenditure on waste and recycling container replacement. Development management income had struggled in the first half of the year but may yet recover should a major application be received. The recycling contract with Suez expired at the end of September and the cost centre was showing a temporary underspend of £126,000 against the contract as officers and Suez were negotiating the final two months invoicing cost. The new contract, approved at the Executive meeting on 11th September 2024, was expected to deliver a budget saving of £300,000 from 2025/26 (£62,000 in 2024/25). The Elmfield offices have been empty since August 2023 and required capital investment before the new tenant occupies the building in January 2025. The tenant would undertake the work and had scheduled it to take 12 weeks. Rent would be paid from mid- January, irrespective of whether the construction works had been completed.
The following points and suggestions were noted by the Committee:
· There were many moving parts and it was unknown if there would be an underspend and the outcome of the Publica review would be seen.
· In terms of planning projects, there fortnight meetings to ensure all work streams were working efficiently.
· Working on opportunities for partnership working across Oxfordshire.
RESOLVED that the Committee noted the report and it was agreed that there were no recommendations to the Executive on 20 November 2024.