Agenda item

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Budget Monitoring Reports – July 2022 – Period 4 and August 2022 – Period 5

The Financial Services Manager presented the budget monitoring report and advised that the format had been revised following consultation with Management Team and the Portfolio Holder for Finance. 

Period 4 - The Committee was advised that the item that had been raised in terms of forecasting any adverse events was vehicle and equipment cost of fuel had increased and provision of £50,000 increase in budget had been allocated and also identified £23,000 of budget errors in relation to business rates.

Period 5 – The Committee’s attention was drawn to the following sections of the report:

·         Appendix A – Budget Monitoring Variances August 2022 (page 205) –– £22,000 loss of rental income in respect of premise in South Gates area of the town which had been vacated and likely to be subject to development in the future.

·         Section 2 (page 197) – close monitoring would continue on the cost of living and escalating inflation and the impact on rising utility costs, a report would be presented to Cabinet and Council on the Pay Award for officers of the Council and fees and charges would also continue to be monitored.  The current position with regard to utilities (increase £450,000) and fees and charges was outlined.

·         Capital Programme (p198) – the significant changes were outlined as set out in the report.

In conclusion, the Financial Services Manager advised that the original overall forecast was £527,000 at year end to be contributed back to reserves, but now that an increase of £450,000 additional spend and other additional items, the Council was unlikely to make that contribution to reserves which was the national trend.

The Assistant Director, Resources and Financial Services Manager responded to questions and comments in relation to:

·         Pay Award of 4% and only 2.5% allocated in the budget.  It was noted that a decision from full Council would be required to set out the options for financing the additional funds needed.

·         Council’s investments/benefits of short term investments.

·         The Council’s working capital.

·         Minimum level of reserves for cash flow and managing future risks.

Following questions from Councillor Ryves, the Assistant Director Resources explained that budget monitoring reports were published on Mod Gov and that the latest published report was brought to the Audit Committee.

The Chair thanked the Financial Services Management for the two budget monitoring reports.

RESOLVED:  The Committee received the Budget Monitoring Reports for July 2022 – Period 4 and August 2022 – Period 5.