Agenda item

Financial Performance 2017-18


The Interim Head of Finance presented a report, the purpose of which, was to provide Cabinet with an update on the Council’s financial performance for the year ending 31 March 2018.


The report gave some background information, confirming that on 1 March 2017 Council approved a net revenue budget of £258.093m for 2017-18, along with a capital programme for the year of £63.854m, which had been updated during the financial year to take into account new approvals and slippage of schemes into 2018-19.


The next section of the report, outlined in Table 1 a comparison of budget against actual outturn at 31 March 2018, confirming that the overall outturn as at the above date was an underspend of £387k which has been transferred to the Council Fund.


Table 2 in the next section of the report, included Virements and technical adjustments processed during Quarter 4, whilst paragraph 4.2 of the report highlighted Budget Reductions for 2016-17 and 2017-18 and the continued monitoring of these by the Chief Executive and Directors.


The next part of the report gave a commentary on the financial position of the Authority’s main service areas (see Appendix 3 for further details), as well as comments on the most significant variances within each of the different areas of Council Directorates.


Paragraph 4.4 of the report, then gave Cabinet an update on the Council’s Capital Programme for 2017-18, including new approvals that are either grant funded or relating to schemes that were funded from revenue but have been re-categorised as capital expenditure, in line with accounting requirements, for example ICT equipment (£151k) and minor works. Paragraph 4.4.3 showed details of the main schemes where slippage was required, and the reasons for the slippage.


Appendix 4.4.4 then outlined details of the individual schemes within the Capital Programme, showing the budget available in 2017-18 compared to the actual spend. The Interim Head of Finance confirmed that the total expenditure as at 31 March 2018 was £36.584m, resulting in a small underspend of £39k on BCBC resources, which would be returned to the capital receipts fund.


The report then referred to Earmarked Reserves of the Council, including the drawdown from these during 2017-18. Table 6 in the report gave further detailed movement on these for the above period. A full breakdown of the position regarding Earmarked Reserves was provided in Appendix 5 to the report.


Finally, Table 7 in 4.5.3 of the report showed the Net Appropriations to/from Earmarked Reserves during Quarter 4.


A Member referred to page 12 of the report and noted that there was a £1.183m overspend in the area of Looked After Children (LAC) during the last 3 years, and she asked if the position here was improving.


The Corporate Director – Social Services and Wellbeing advised that numbers of LAC were fluctuating but also showing signs of reducing, so therefore, overspend in this service area would hopefully continue improving in the future.


A Member also noted that the increase in numbers of children at primary and secondary schools was resulting in the Council having to provide further Home to School Transport provision as well as looking to provide an increase with regard to Safe Routes to Schools.


The Interim Corporate Director – Education and Family Support confirmed that this was the case, and that this was work in progress, and that he would be furnishing Cabinet with updates on the above in due course, when these pieces of work had been completed.


The Leader concluded debate on this item, by advising that the Council had s  reduced £400k of the overspend, as a result of increasing the use of In-House Foster Carers as opposed to more expensive Independent Foster Carers.


RESOLVED:                    That Cabinet noted the actual Revenue and Capital Outturn position for 2017-18.


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