Issue - meetings

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the first quarter’s (ending 30 June 2022) performance for the Revenues and Benefits Shared Service for 2022/23, as detailed at Appendix 1 to the report.

Decision

That the actual position as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The approved budget for 2022/23 was agreed by the Shared Revenues and Benefits Joint Committee on 8 February 2022, which set a budget of £2,516,830 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £22,115 as detailed within  paragraph 3.2 of the officers report.

Financial performance for the first quarter of 2022/23 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £10,376.

The forecast outturn for 2022/23 predicted that there would be an underspend against the approved budget of £10,326, as detailed at Appendix 2 of the officer’s report.

The main forecast year-end variations against the approved budget for 2022/23 were noted within the table at paragraph 4.4 of the officer’s report:

One of the main reasons for the forecast overspend within the Revenues Local Taxation team was due to additional postage and IT costs as a result of administering the Council Tax Energy Rebate payments. Each Council had received a grant to compensate them for this cost, along with other administration costs associated with these payments, however, these grants sat outside of the shared service budget.

For the period 1 April 2022 to 30 June 2022, New Burdens Grants had been received from Central Government of £59,673 for City of Lincoln Council and £64,514 for North Kesteven District Council.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the financial outturn for the Revenues and Benefits Shared Service for 2021/22, as detailed at Appendix 1 to the report.

Decision

That the content of the report and the budget adjustments as set out in paragraph 3.6 be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The approved budget for 2021/22 was agreed by the Shared Revenues and Benefits Joint Committee on 23 February 2021 which set a budget of £2,520,080 for the service.

At Quarter 1 the budget was subsequently reduced by the sum of £60,110 to reflect charges resulting from the deletion of vacant posts as agreed by Joint Committee on 23 February 2021. The budget was then increased by a further £17,790 as a result of New Burdens funding to give a revised budget of £2,477,760. At Quarter 3 it was further increased to reflect additional New Burdens grants totalling £1,650 and again at Quarter 4 by a further £9,010.

The 2021/22 financial outturn for the Revenues and Benefit Shared Service resulted in an overspend of £41,927, a variance of 1.7% of the revised budget and an improvement against the forecast overspend of £85,807 as at Quarter 3. This was prior to a recharge for new IT kit totalling £38,914.62 split at agreed proportions between both authorities at £20,795.48 for Lincoln and £18,119.14 for North Kesteven.

The main year-end variations against the approved budget for 2021/22 were noted within the table at paragraph 4.2 of the officer’s report:

One of the main reasons for the forecast overspend related to Benefits overtime largely due to the administration of Test and Trace Support Payments (TTSP). Each Council had received a compensation grant to cover this administration cost, however, these grants sat outside the Shared Service budget. For the period 1 April 2021 to 31 March 2022 TTSP administration grants were requested from Central Government in the sum of £107,516 for Lincoln and £57,015 for North Kesteven, and although the final figures had not yet been received, these grant payments would outweigh the overspend.