Agenda item

Laura Shipley, Group Accountant and Sarah hardy, Principal Finance Business Partner, on behalf of Colleen Warren, Financial Services Manager, presented Performance Scrutiny with the third quarter’s performance (up to 31 December) on the Council’s:

a)    General Fund Revenue Account – was currently projecting a forecast overspend of £222,080 (Appendix A provided a forecast General Fund Summary). Full details of the main variances were provided in Appendix B while the key variances were summarised below:

-       Homeless B&B – increased expenditure: £107,800

-       Savings Target – shortfall in delivery: £201,750

-       Housing Benefit Overpayment – reduced income: £318,000

-       HIMO – reduced income: £74,260

-       City Bus Station – reduced expenditure (£104,800)

-       External Interest payable – reduced expenditure (£225,945)

-       City Hall, Industrial Estates & Lincoln Prop. – increased income: (£159,360)

-       Car Parking – increased income: (£162,000)

-       Car Parking – increased expenditure: £135,000

-       Bereavement Services – increased income: (£124, 150)

-       Bereavement Services – increased expenditure: £88, 020

b)    Housing Revenue Account – was currently projecting an in-year forecast underspend of £79,582 (Appendix C provided a forecast HRA summary). Full details of the main variances were provided in Appendix D while the kay variances were summarised below:

-       Staff Vacancies – reduced expenditure: (£177,000)

-       Repairs Costs – increased expenditure (offset from HRS surplus): £62,400

-       Council Tax – increased expenditure: £67,000

-       Depreciation: increased expenditure: £375,000

-       Interest Payable – increased expenditure: £129,000

-       DRF Contribution – reduced expenditure: (£429,000)

-       HRS Surplus – increased income: (£117,000)

c)    Housing Repairs Service – were forecasting a surplus of £117,075 in 2019/20 (Appendix E provided a forecast HRS summary), with full details of the main variances provided.

d)    Earmarked Reserves – the details of all the earmarked reserves and their forecast balance as at 31^st March 2020 were attached in Appendix F.

e)    Capital Programmes – movements in the programme during the third quarter had decreased overall planned expenditure in 2019/20 to £12,509,748.

New projects that were agreed at Capital Programme Group and were subject to Executive approval for the third quarter were:

-       Stamp End Depot demolition works: £134,440 funded from the unallocated capital contingency budget, relating to 50% recharge of capital works undertaken in agreement with a third party.

The following projects had previously been approved by Executive and added to the General Investment Programme in quarter 3:

-       Crematorium Remodelling - £4.7m towards crematorium enhancements at Washingborough Road commencing in 20/21 approved by Executive on 25^th November 2019.

-       Swift Gardens Play Area - £74,200 for a new play area scheme approved by Executive on 30^th August 2017. £14,000 from grant funding in relation to the MUGA refurbishment, and £60,200 funded by S106.

The overall spend on the General Fund Investment Programme for the third quarter was £8.847m, which was 70.7% of the 2019/20 programme and 75.4% of the active programme. This was detailed further at Appendix I.

f)     Housing Investment Programme – expenditure against the Housing Investment Programme budget during the first three quarters was £8.025m, which was 53.84% of the programme. The expenditure was detailed further at Appendix K.

g)    invited members’ comments and questions.

Question: Members asked whether the reduction in the level of housing benefit overpayments being raised was a positive or a negative?

Response: The reduced overspend was a positive but this had a negative effect as it created a budgetary pressure. The issue had been corrected in the MTFS.

Question: Members asked whether maintenance was being carried out on the Transport Hub as the maintenance underspend had been moved to a sinking fund?

Response: Maintenance was being carried out as there was a budget for the maintenance of assets. The money moved into the sinking fund would fund any special work in the future that would be needed.

Question: Members asked for clarification on why there were two entries for the profiling expenditure for the Birchwood Leisure Centre Roof?

Response: Some expenditure for the roof wouldn’t come out of 2019/20 budgets but some work needed to be completed this year which created the two entries.

Question: Members asked whether the money for the WGC that had been re-profiled into 2020/21 was part of the money already re-profiled.

Response: Anticipated spend for the WGC was lower so the money was re-profiled. This was in addition to the money that had previously been re-profiled.

Question: Members asked what the £43k overspend on equipment for car parking was?

Response: The overspend related to some extra costs for banking/card payments and increased connectivity to all car parks in the city.

RESOLVED that the progress on the financial performance for the period 1^st April to 31^st December 2019 and the projected outturns for 2019/20 be noted.