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27 June 2022


4th Quarter Finance, Performance & Risk Monitoring Report 2021/22






27 June 2022



Will this be a Key Decision?



Not Applicable

Final Decision-Maker


Lead Head of Service

Mark Green, Director of Finance & Business Improvement

Lead Officer and Report Author

Paul Holland, Senior Finance Manager

Georgia Harvey, Senior Information Governance Officer



Wards affected



Executive Summary


This report sets out the 2021/22 financial and performance position for the services reporting into the former Policy & Resources Committee (PRC) as at 31st  March 2022 (Quarter 4). The primary focus is on:


•        The 2021/22 Revenue and Capital budgets; and


•         The 2021/22 Key Performance Indicators (KPIs) that relate to the delivery of the Strategic Plan 2019-2045.


The combined reporting of the financial and performance position enables the Executive to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues in their proper context, reflecting the fact that the financial and performance-related fortunes of the Council are inextricably linked.








Budget Monitoring


At the Quarter 4 stage the Council has incurred net expenditure of £19.228m against the approved profiled budget of £19.695m, representing an underspend of £0.467m.


Overall net expenditure at the end of Quarter 4 for the services reporting to PRC is  

£8.698m, compared to the approved profiled budget of £8.533m, representing an overspend of £0.166m.


At the Quarter 4 stage, the Council has incurred overall expenditure of £26.431m against a budget allocation within the Capital Programme of £33.629m.


Capital expenditure at the end of Quarter 4 for PRC was £16.406m against a total budget of £20.384m.


The budgets in this report are the revised estimates for 2021/22.


Performance Monitoring


A number of targets were missed due to the impact of Covid-19, although there were improvements in a number of other areas.


There is also an outturn report for 2021/22 that summarises the performance for the year as a whole. 


Purpose of Report


The report enables the Executive to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues as at 31st March 2022.



This report makes the following recommendations to the Executive:


1.   That the Revenue position as at the end of Quarter 4 for 2021/22, 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 4 be noted; and


3.   That the Performance position as at Quarter 4 for 2021/22, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.


4.   That Annual Performance for 2021/22 be noted.









4th Quarter Finance, Performance & Risk Monitoring Report 2021/22








Impact on Corporate Priorities

This report monitors actual activity against the revenue budget and other financial matters set by Council for the financial year.  The budget is set in accordance with the Council’s Medium-Term Financial Strategy which is linked to the Strategic Plan and corporate priorities.


The Key Performance Indicators and strategic actions are part of the Council’s overarching Strategic Plan 2019-45 and play an important role in the achievement of corporate objectives. They also cover a wide range of services and priority areas.


Director of Finance and Business Improvement (Section 151 Officer)

Cross Cutting Objectives

This report enables any links between performance and financial matters to be identified and addressed at an early stage, thereby reducing the risk of compromising the delivery of the Strategic Plan 2019-2045, including its cross-cutting objectives.


Director of Finance and Business Improvement (Section 151 Officer)

Risk Management

This is addressed in Section 5 of this report.

Director of Finance and Business Improvement (Section 151 Officer)


Financial implications are the focus of this report through high level budget monitoring. Budget monitoring ensures that services can react quickly enough to potential resource problems. The process ensures that the Council is not faced by corporate financial problems that may prejudice the delivery of strategic priorities.


Performance indicators and targets are closely linked to the allocation of resources and determining good value for money. The financial implications of any proposed changes are also identified and taken into account in the Council’s Medium-Term Financial Strategy and associated annual budget setting process. Performance issues are highlighted as part of the budget monitoring reporting process.


Senior Finance Manager (Client)


The budget for staffing represents a significant proportion of the direct spend of the Council and is carefully monitored. Any issues in relation to employee costs will be raised in this and future monitoring reports.


Having a clear set of performance targets enables staff outcomes/objectives to be set and effective action plans to be put in place.


Director of Finance and Business Improvement (Section 151 Officer)


The Council has a statutory obligation to maintain a balanced budget and the monitoring process enables the Committee to remain aware of issues and the process to be taken to maintain a balanced budget.


There is no statutory duty to report regularly on the Council’s performance. However, under Section 3 of the Local Government Act 1999 (as amended) a best value authority has a statutory duty to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. One of the purposes of the Key Performance Indicators is to facilitate the improvement of the economy, efficiency and effectiveness of Council services. Regular reports on Council performance help to demonstrate best value and compliance with the statutory duty.


Senior Lawyer (Corporate Governance), MKLS

Information Governance

The performance data is held and processed in accordance with the data protection principles contained in the Data Protection Act 2018 and in line with the Data Quality Policy, which sets out the requirement for ensuring data quality. There is a program for undertaking data quality audits of performance indicators.

Policy and Information Team


There is no impact on Equalities as a result of the recommendations in this report. An EqIA would be carried out as part of a policy or service change, should one be identified.


Equalities and Communities  Officer

Public Health



The performance recommendations will not negatively impact on population health or that of individuals.

Public Health Officer

Crime and Disorder

There are no specific issues arising.

Director of Finance and Business Improvement (Section 151 Officer)



Performance Indicators and Strategic Milestones monitor any procurement needed to achieve the outcomes of the Strategic Plan.


Director of Finance and Business Improvement (Section 151 Officer)


Biodiversity and Climate Change

The implications of this report on biodiversity and climate change have been considered and there are no direct implications on biodiversity and climate change.


Biodiversity and Climate Change Manager





2.1     The Medium-Term Financial Strategy for 2021/22 to 2025/26 - including the budget for 2021/22 - was approved by full Council on 24th February 2021. This report updates the Executive on how its services have performed over the last quarter with regard to revenue and capital expenditure against approved budgets.                                                                                                           

2.2     This report also includes an update to the Executive on progress against its Key Performance Indicators (KPIs).                                                                      

2.3     Attached at Appendix 1 is a report setting out the revenue and capital spending position at the Quarter 4 stage. Attached at Appendix 2 is a report setting out the position for the KPIs for the corresponding period.         Attached at Appendix 3 is a further KPI report summarising the position for the year as a whole.





3.1     There are no matters for decision in this report.  The Executive is asked to note the contents but may choose to comment.







4.1     In considering the current position on the Revenue budget, the Capital Programme, and the KPIs at the end of March 2022, the Executive can choose to note this information or could choose to comment.                                                                                       

4.2     The Executive is requested to note the content of the  report.



5.       RISK

5.1     This report is presented for information only and has no direct risk management implications.                                                                                        

5.2     The Council produced a balanced budget for both revenue and capital income and expenditure for 2021/22. The budget is set against a backdrop of limited resources and a difficult economic climate, even before the impact of the Covid-19 pandemic became clear. Regular and comprehensive monitoring of the type included in this report ensures early warning of significant issues that may place the Council at financial risk. This gives the Executive the best opportunity to take actions to mitigate such risks.




6.1     The KPIs update (“Performance Monitoring”) were reported to the service committees quarterly under the previous constitution: Communities, Housing & Environment Committee; Economic Regeneration & Leisure Committee; and the Strategic Planning & Infrastructure Committee. Each committee also received a report on the relevant priority action areas. The report was also presented to the Policy & Resources Committee, reporting on the priority areas of “A Thriving Place”, “Safe, Clean and Green”, “Homes and Communities” and “Embracing Growth and Enabling Infrastructure”.







7.1     The Quarter 4 Budget & Performance Monitoring reports have been considered by the relevant Policy Advisory Committees during June 2022.                                  





·         Appendix 1: Fourth Quarter Budget Monitoring 2021/22

·         Appendix 2: Fourth Quarter Performance Monitoring 2021/22

·         Appendix 3: Performance Monitoring Outturn Report 2021/22

·         Appendix 4: Risk Update 2021/22