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Agenda item

Second Quarter Finance, Performance and Risk Monitoring Report 2022/23

Minutes:

Councillor Perry, the Lead Member for Corporate Services, introduced the report setting out the financial and performance position for the services reporting into the Committee as at 30 September 2022 (Quarter 2), together with an update on corporate risks.  It was noted that:

 

·  A modest surplus was projected for the end of the year.  There had been a significant increase in the cost of temporary accommodation for the homeless, but it was offset by improvements in income areas.

 

·  This was a period of financial uncertainty, but the reserves remained sound.  High inflation posed a particular challenge for the Council.  Financial uncertainty was probably the biggest single corporate risk and areas such as the Public Works Loan Board and increasing interest rates would have an effect on the Revenue Budget and not just the Capital Budget and the Council’s borrowing.  Nevertheless, the position as at the end of Quarter 2 was sound.

 

In response to questions by Members:

 

The Lead Member for Corporate Services advised the Committee that:

 

·  Additional provision had been made within the 2022/23 budget for the expected impact of higher inflation and, at this stage, a small surplus was projected for the end of the year.  However, this was a period of financial uncertainty. 

 

·  The Executive was progressing delivery of the 1,000 Affordable Homes Programme and further information would be made available in due course.

 

·  Concerns had been expressed about the effect if any of the County Council’s financial situation on the Borough Council.  The Borough Council did not have the same constraints as the County Council which had high spend areas such as education and adult social care.  The Borough Council’s finances were sound, and it had a good level of unallocated reserves which met the CIPFA standards.  The Borough Council also had a strong balance sheet which meant that it was in a good position for the future, and he wanted to maintain that.

 

The Director of Finance, Resources and Business Improvement advised the Committee that:

 

·  MPH (Maidstone Property Holdings) Residential Properties was the housing company where the Council held its private rented sector housing.

 

·  Reference was made in Table 5 of the report to the issues currently being experienced in getting up to date information from the managing agents in respect of Sundry Corporate Properties, the Phoenix Park Units and the Boxmend Industrial Estate.  The Council had sub-contracted the role of managing agents, but consideration was being given to taking the service in-house.

 

·  In accordance with the Council’s commitment to transparency and recognised good practice, virements (the transfer of funds between cost centres after the overall budget has been agreed by full Council) were reported to the Committee on a quarterly basis.  The virements made in Quarter 2 were set out in Table 9 of the report and consideration would be given as to how the information might be better presented in future to provide more detailed explanations.

 

·  For example, the Bereavement post had been established using funding from various cost centres as the service had been very busy. The costs of the senior management restructure had been allocated to the various applicable service cost centres.

 

During the discussion, the Director of Finance, Resources and Business Improvement and his team were thanked for their work given the current economic situation and uncertainty.

 

RESOLVED:

 

1.  That the Revenue position as at the end of Quarter 2 for 2022/23, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted.

 

2.  That the Capital position at the end of Quarter 2 for 2022/23 be noted.

 

3.  That the Performance position as at Quarter 2 for 2022/23, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.

 

4.  That the Risk Update, attached at Appendix 3 to the Officers’ report, be noted.

 

5.  That the Recovery & Renewal Update, attached at Appendix 4 to the Officers’ report, be noted.

 

6.  That the UK Shared Prosperity Fund update, attached at Appendix 5 to the Officers’ report, be noted.

 

Note:  Councillor Cannon entered the meeting during consideration of this item (6.40 p.m.).  He said that he had no disclosures of interest or of lobbying.

 

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