Issue - meetings

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.

None.

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.

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.

None.

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.