Agenda item

Budget Monitoring Report to 30 June 2019

The Budget Monitoring report sets out the Capital, Housing Revenue and General Fund Revenue budget performance to the end of June 2019. 

Decision:

The Deputy Leader of the Council and Cabinet Member for Corporate Support, Councillor Oppler, introduced this item and stated that financial performance was monitored on a regular basis to ensure that spending was in line with Council policies and that net expenditure was contained within overall budget limits.  Performance against approved budget to the end of June 2019 in relation to the General Fund, Housing Revenue Account (HRA) and capital was on track. 

The Financial Services Manager presented this report and stated that this was the first formal monitoring report for 2018/19.  Further reports would be presented to Cabinet for the period ended September and December 2019 with an outturn report this time next year. 

The variation against expected spend at the end of June 2019 was £54k.  The Financial Services Manager reiterated the situation in relation to homelessness and the continuing financial pressures from homelessness on nightly paid accommodation.   She anticipated that there would be a requirement for a further supplementary estimate later in the year.

 

In summary, the General Fund and HRA were on track, however, Members were asked to approve the HRA revenue and capital slippage highlighted in Paragraph 7.2 of the report, which linked to the favourable outturn position in the previous item.

In receiving the report, questions were asked about the homelessness situation in terms of whether this had been foreseen and was a result of West Sussex County Council’s (WSCC’s) decision to withdraw its homelessness support grant to some charitable organisations and whether this was in line with the expected predictions voiced when that decision had been made. 

The Chief Executive responded stating that the Council had not seen a major impact to date, however, he did feel that the situation would worsen over time.  Work was underway to try and produce figures so that there would not be the need to seek approval for further Supplementary Estimates in the future.  It would be necessary to make sure that the budget for next year would be more realistic to keep within the movement of temporary accommodation and homelessness costs. This was an ongoing and real situation with the Council working alongside its partners across the District including charities, churches and other charitable authorities to try and help people with complex needs and people in general need.  Members were reassured that the Council was attacking this issue from every angle including buying additional properties to house people. The Chairman asked how many properties had been purchased.  The Director of Services outlined that the Council bought properties but these took a while to come on stream.  Cabinet was informed that there was a full-on pipeline of purchases thought the precise number could not be provided at this time.  Officers were working closely with the Cabinet Member for Residential Services on an ongoing programme.

 

            The Cabinet

 

                        RESOLVED – That

 

(1)  the report in Appendix 1 be noted;

(2)  the significant anticipated overspend in relation to nightly paid accommodation be noted;

 

(3)  the HRA revenue and capital slippage contained in Appendix 1 (paragraph 7.2) be approved; and

 

(4)  it be noted that the overall performance against budget is currently on track

           

The Cabinet confirmed its decision as per Decision Notice C/015/020919, a copy of which is attached to the signed copy of the Minutes.

 

 

 

Minutes:

The Deputy Leader of the Council and Cabinet Member for Corporate Support, Councillor Oppler, introduced this item and stated that financial performance was monitored on a regular basis to ensure that spending was in line with Council policies and that net expenditure was contained within overall budget limits.  Performance against approved budget to the end of June 2019 in relation to the General Fund, Housing Revenue Account (HRA) and capital was on track. 

The Financial Services Manager presented this report and stated that this was the first formal monitoring report for 2018/19.  Further reports would be presented to Cabinet for the period ended September and December 2019 with an outturn report this time next year. 

The variation against expected spend at the end of June 2019 was £54k.  The Financial Services Manager reiterated the situation in relation to homelessness and the continuing financial pressures from homelessness on nightly paid accommodation.   She anticipated that there would be a requirement for a further supplementary estimate later in the year.

 

In summary, the General Fund and HRA were on track, however, Members were asked to approve the HRA revenue and capital slippage highlighted in Paragraph 7.2 of the report, which linked to the favourable outturn position in the previous item.

In receiving the report, questions were asked about the homelessness situation in terms of whether this had been foreseen and was a result of West Sussex County Council’s (WSCC’s) decision to withdraw its homelessness support grant to some charitable organisations and whether this was in line with the expected predictions voiced when that decision had been made. 

The Chief Executive responded stating that the Council had not seen a major impact to date, however, he did feel that the situation would worsen over time.  Work was underway to try and produce figures so that there would not be the need to seek approval for further Supplementary Estimates in the future.  It would be necessary to make sure that the budget for next year would be more realistic to keep within the movement of temporary accommodation and homelessness costs. This was an ongoing and real situation with the Council working alongside its partners across the District including charities, churches and other charitable authorities to try and help people with complex needs and people in general need.  Members were reassured that the Council was attacking this issue from every angle including buying additional properties to house people. The Chairman asked how many properties had been purchased.  The Director of Services outlined that the Council bought properties but these took a while to come on stream.  Cabinet was informed that there was a full-on pipeline of purchases thought the precise number could not be provided at this time.  Officers were working closely with the Cabinet Member for Residential Services on an ongoing programme.

 

            The Cabinet

 

                        RESOLVED – That

 

(1)  the report in Appendix 1 be noted;

(2)  the significant anticipated overspend in relation to nightly paid accommodation be noted;

 

(3)  the HRA revenue and capital slippage contained in Appendix 1 (paragraph 7.2) be approved; and

 

(4)  it be noted that the overall performance against budget is currently on track

           

The Cabinet confirmed its decision as per Decision Notice C/015/020919, a copy of which is attached to the signed copy of the Minutes.

 

 

 

Supporting documents: