Agenda item - BUDGET MONITORING REPORT 2020/21 – PERIOD 10

Agenda item

BUDGET MONITORING REPORT 2020/21 – PERIOD 10

Summary:

 

 

 

 

 

 

Options considered:

This report summarises the budget monitoring position for the revenue account and capital programme to the end of January 2021. The report also provides an update on the financial impact of Covid-19 on the Council’s Financial position.

 

Not applicable.

 

Conclusions:

The overall position at the end of January 2021 shows an £8,443,191 underspend for the current financial year on the revenue account, this is however currently expected to deliver a full year overspend of £164,729 which, as per the previous COVID update, is to be funded from the General Fund reserve if required.

Recommendations:

 

 

 

 

 

 

 

Reasons for Recommendations:

It is recommended that Cabinet:

 

1)     note the contents of the report and the current budget monitoringposition;

2)     agree to fund any deficit from the General Fund reserve at the year-end ifrequired

3)     Approve the capital programme funding as identified fromreserves.

 

To update Members on the current budget monitoring position for the Council.

 

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on the write the report and which do not contain exempt information)

Text Box: System budget monitoring reports

 

 

Cabinet Member(s) Cllr Eric Seward

Ward(s) affected

  All

 

Contact Officer, telephone number and email: Duncan Ellis, 01263 516330, Duncan.ellis@north-norfolk.gov.uk

 

Minutes:

Cllr E Seward – Portfolio Holder for Finance and Assets introduced the report and informed Members that at present there was a small overspend of £165k, though it was hoped this would be balanced by the year end. The DFR stated that the period 10 report highlighted the position of the revenue and capital account at the end of January 2021, with a further update on the ongoing impact of Covid-19. It was noted that a year-end deficit of approximately £1m had been forecasted in May, though this had reduced to £400k, and subsequently to £165k, as outlined in the report. The DFR stated that efforts continued to balance this deficit by the year end, though it could be covered by reserves if necessary. On fees and charges support, it was reported that the Council was expected to receive a grant of approximately £750k, to cover income losses incurred as a result of the pandemic. The DFR referred to grant schemes administered by the Council, and noted that the funding received for this had aided the Council’s cashflow and delayed requirements for borrowing, that had saved approximately £350k. He added that the Council’s investments had also seen an upturn, which in combination with savings equated to a positive budget impact of approximately £440k.

 

Questions and Discussion

 

        i.          Cllr C Cushing referred to a request for £424k of additional funding for Cromer Pier that was expected to go to Cabinet, and asked when this would be considered. The DFR replied that the report would go to Cabinet in the coming months, as consultants were in the process of finalizing requirements. He added that work had been done approximately three years ago to move to a more regular maintenance schedule, with an annual requirement to prepare an updated report on the condition of the asset. It was confirmed following a question from Cllr C Cushing, that the £424k was additional funding, and had not yet been included in the Pier maintenance costs.

 

      ii.          The recommendations were proposed en bloc by Cllr P Heinrich and seconded by Cllr W Fredericks.

 

RESOLVED

 

1.     To note the contents of the report and the current budget monitoring position.

 

2.     To agree with the decision to fund any deficit from the General Fund reserve at the year-end, if required.

 

3.     To agree with the approval of the capital programme funding as identified from reserves.

 

Supporting documents: