Agenda item

BUDGET MONITORING REPORT 2021/22 - PERIOD 10

Summary:

 

 

 

 

Options considered:

This report summarises the budget monitoring position for the revenue account, capital programme and reserves to the end of January 2022. 

 

Not applicable.

 

Conclusions:

 

The overall position at the end of January 2022 shows an £8,774,619 underspend for the current financial year on the revenue account, this is however currently expected to deliver a full year underspend of £414,439.

 

Recommendations:

 

 

 

 

 

Reasons for

Recommendations:

It is recommended that Cabinet:

 

1)     Note the contents of the report and the current budget monitoring position.

 

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)

 

 

System budget monitoring reports

 

 

 

Cabinet Member(s)

Cllr Eric Seward

Ward(s) affected

Contact Officer, telephone number and email: Lucy Hume, 01263 516246, Lucy.Hume@north-norfolk.gov.uk

 

 

Minutes:

Cllr E Seward, Portfolio Holder for Finance, introduced this item. He began by drawing members’ attention to the current forecast full year underspend of £414,439. He said that this was due to higher than anticipated car parking income and  savings generated within the waste collection and disposal service.

 

The Director for Resources highlighted the variances to the budget set out within the report. He said that the Council had received £10m from the Government in the form of Covid grants which had resulted in a year to date underspend of almost £9m. The Council had received considerably more than anticipated early in the pandemic and had held the money in a reserve in anticipation of a request from Central Government to repay it. This had now been received. However, retaining the money for a lengthy period of time had helped with the Council’s cashflow position in the last year.

 

Cllr Seward referred to the savings achieved on waste collection and asked for more detail. The Director for Communities explained that the bulk of it was down to the billing contract with the contractor, Serco. There had been an issue with the fixed core billing and invoices were not received from the waste contractor for a long time. This had now been resolved but there was no an issue with the variable monthly billing. Several factors were still being discussed and awaiting resolution. In response to Cllr Seward’s query as to whether he was confident regarding the forecast £150k saving, the Director for Communities confirmed that he was.

 

Cllr Seward then asked about paragraph 5.4 and sought additional information on the reference to the Government’s ‘Sales, Fees and Charges Compensation scheme’ and the investigation into the unexpected increased payment of £141,787. The Director for Resources replied that it was an income scheme based on a number of projections and there was an element that the Council had to cover itself. The Council had submitted a claim under the scheme and received £141k more than expected. Rather than assume this was correct, a request had been made to central government to check if it was correct. The outcome was still awaited.

 

Cllr C Cushing referred to page 49 and the industrial units at Hornbeam Road, North Walsham. He asked about the projected loss of £45k in rental income. Cllr Seward replied that it was due to the units not being leased during the current financial year, however, he was pleased to say that all three units were now about to be let at a good return.

 

It was proposed by Cllr E Seward, seconded by Cllr L Shires and

 

RESOLVED to

 

Note the contents of the report and the current budget monitoring representation.

 

Reason for the decision:

 

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

Supporting documents: