Financial Position May 2019 - Report for the Year Ending 31st March 2020
Councillor Joyce Plummer, Portfolio Holder Resources, reported on financial spending of the Council up to the end of May 2019 and the financial forecast outturn position for the Accounting Year 2019/20. Members considered a table within the report, which set out the core financial details. Councillors also thanked the Corporate Management Team and the Deputy Chief Executive’s team for their work in maintaining the Council’s positive financial position.
Approval of the report was not deemed a key decision.
Reason for Decision
The spend for the first 2 months of the financial year to the end of May 2019 is £1,790,959 compared to a Budget of £1,889,915 giving a positive variance of £99,000 over the first 2 months of the year.
The current forecast spend to the end of the financial year in March 2020 is £10,850,000 compared to a Budget of £10,994,000. This forecast produces a positive variance of £143,000. There are small adverse variances for Planning & Transportation and Policy & Corporate Governance with a more significant adverse variance on Town Centre & Markets of £155,000. These adverse variances are offset by predicted savings elsewhere on the Budget during the year. Service level details are summarised as follows:
Food Safety is predicting that net expenditure will be £4,000 less than Budget by the year end. This is due to salary savings of £4,000.
Waste Services are predicting a positive variance for the financial year of £87,000. This is due to Savings on the Recycling Budget of £103,000 and £16,000 of additional income compared to Budget less £31,000 of extra salary costs and £1,000 of additional miscellaneous expenditure.
The Parks & Cemeteries Service is forecasting a break even outturn at this point in the year.
The Town Centre & Market Budget shows an overall adverse variance of almost £155,000. This is attributable to the continuing economic pressures limiting the generation of funds from the Market Hall in Accrington by £144,000 compared to Budget and other income down £9,000 and £4,000 of miscellaneous additional costs, offset by £2,000 of salary savings.
Culture & Leisure Services
Culture and Leisure Services are indicating a break even outturn position by the end of the year.
Planning & Transportation
Planning & Transportation are predicting an adverse variance for the year of £33,000. This is due to a predicted shortfall in income compared to budget on Building Control of £65,000. Elsewhere on the Budget there are £3,000 of staff saving and £48,000 of additional income less £19,000 of miscellaneous additional expenditure.
Regeneration & Property Services
Regeneration & Property Services are predicting a break even position by the year end with additional income of £157,000 offset by £144,000 of additional staff costs and £13,000 of additional miscellaneous spending.
Policy & Corporate Governance
Policy & Corporate Governance are predicting an adverse variance of £31,000. This is due to increased income above budget of £100,000 and £19,000 of savings on miscellaneous spending less a predicted £150,000 Housing Benefit spend.
Non Service Items
The current estimate for the year is a positive variance of £270,000.
There were no alternative options considered or reasons proposed for rejection
Resolved - That Cabinet notes the report and asks the Corporate Management Team to continue to identify savings and increase income over the coming year to boost the overall surplus of the Council.