Issue - meetings

The Executive Member for Financial Sustainability presented the Financial Management Quarter 3 Forecast to Year End Report. The report stated the council’s financial position in relation to the 2021/22 budget at the end of December. He said that the predicted outturn was currently a £95,000 overspend but it was not unusual to show an overspend at this stage of the cycle.

Councillor Williamson proposed, and Councillor Boylan seconded a motion supporting the recommendations in the report. On being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – That (A) the net revenue budget forecast overspend of £95k in 2021/22 be noted (table 1); and

(B) the revised capital budget of £56.676m for 2021/22, has a forecast underspend of £27.669m, of which £27.603m will be carried forward to 2022/23 (appendix A) be noted.

The Financial Planning Manager, Alison Street introduced the report, and described the budget overspend and underspend. 

The Chairman congratulated officers for the Council’s improved financial position. He said that report showed that the Revenues and Benefits Department was the standout performer, and asked how long the Central Government grants related to this department would continue for. The Financial Planning Manager advised that work would continue with burden grants for the long term.

The Head of Strategic Finance and Property said that although these grants had done a lot of good, Members would also see the negative impact they have had on the Revenues and Benefits Department. He said that this included the pressure and stress placed upon the staff who processed these grants, the increase in the time to process other claims and change of circumstances (such as Housing Benefit), and the effect on collection rates.

Councillor Townsend asked if the Ukraine crisis would place more demands on the Revenue and Benefits Department. The Head of Strategic Finance and Property said that the required housing inspections would probably fall under the Council’s responsibility, but at present it was unclear if the responsibility for payments would be the remit of the Council or Social Services. 

The Chairman referred to page 64 of the report, and asked for clarity on the forecasted underspend attributed to the shared business and technology services. The Financial Planning Manager said that this underspend was due the slippage on IT projects. The Head of Strategic Finance and Property said that these funds would be used within the next six months upon conclusion of these projects.

The Chairman asked about the Council’s debtors. The Head of Strategic Finance and Property said that under the Transforming East Herts project it was proposed that   debt recovery would be centralised back within the Finance Department.

The Chairman referred to page 67 of the report and asked for clarity on projects which had moved into the “approved, but not yet committed” table. The Head of Strategic Finance and Property said that this was a way of managing the Council’s budget, and showed items for which Council approval had been given, but were not yet bound.      

It was moved by Councillor Alder and seconded by Councillor Burmicz that the recommendations, as detailed, be approved. After being put to the meeting and a vote taken, the motion was declared CARRIED. 

RESOLVED – that (A) the net revenue budget forecast overspend of £95k in 2021/22 be noted (table 1); and

(B) the revised capital budget of £56.676m for 2021/22, with a forecast underspend of £27.669m, of which £27.603m will be carried forward to 2022/23 (appendix A), be noted.