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PLANNING & HEALTHIER, STRONGER COMMUNITIES POLICY ADVISORY COMMITTEE |
9 July 2024 |
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4th Quarter Finance Update & Performance Monitoring Report 2023/24 |
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Will this be a Key Decision? |
No |
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Urgency |
Not Applicable |
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Final Decision-Maker |
Cabinet |
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Lead Head of Service |
Mark Green, Director of Finance, Resources & Business Improvement |
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Lead Officer and Report Author |
Paul Holland, Senior Finance Manager Carly Benville, Senior Information Analyst |
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Classification |
Public |
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Wards affected |
All |
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Executive Summary
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This report sets out the 2023/24 financial and performance position for the services reporting into the Planning and Healthier Stronger Communities Policy Advisory Committee (PHSC PAC) as at 31st March 2024 (Quarter 4). The primary focus is on:
• The 2023/24 Revenue and Capital budgets; and
• The 2023/24 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 Committee 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.
Quarterly monitoring reports for the first three quarters of 2023/24 were prepared for the four Policy Advisory Committees that were in place at the time. The reduction in the number of Policy Advisory Committees in May 2024 from four to three and the new allocation of responsibilities between Committees is reflected in this report, such that performance is shown as though the new allocations had been in effect throughout the financial year 2023/24. Where references are made in this report to 2024/25 and future years, no account has been taken of any possible changes of priorities under the new Administration, as these had not been finalised at the time of the issue of this report or any appendices hereto. Budget Monitoring
Capital expenditure at the end of Quarter 4 for PHSC PAC was £0.712m against a total budget of £2.089m, representing an underspend of £1.377m.
Performance Monitoring
75.0% (9 of 12) the targetable quarterly KPIs reportable to this Committee achieved their Quarter 4 target.
UK Shared Prosperity Fund Update
An update on progress made against schemes using this funding is shown at Appendix 3.
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Purpose of Report
The report enables the Committee to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues as at 31st March 2024.
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This report makes the following recommendations to the Planning and Healthier Stronger Communities Policy Advisory Committee:
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1. That the Revenue position as at the end of Quarter 4 for 2023/24, 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 for 2023/24 be noted;
3. That the Performance position as at Quarter 4 for 2023/24, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.
4. That the UK Shared Prosperity Fund update, attached at Appendix 3 be noted.
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4th Quarter Finance Update & Performance Monitoring Report 2023/24 |
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1. CROSS-CUTTING ISSUES AND IMPLICATIONS
Issue |
Implications |
Sign-off |
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.
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Director of Finance, Resources 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.
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Director of Finance, Resources and Business Improvement (Section 151 Officer) |
Risk Management |
This is addressed in Section 5 of this report. |
Director of Finance, Resources and Business Improvement (Section 151 Officer) |
Financial |
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.
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Senior Finance Manager (Client) |
Staffing |
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.
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Director of Finance, Resources and Business Improvement (Section 151 Officer) |
Legal |
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.
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Deputy Head of Legal Partnership |
Information Governance |
The recommendations do not impact personal information (as defined in UK GDPR and Data Protection Act 2018) the Council processes. |
Policy and Information Team |
Equalities |
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.
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Equalities and Communities Officer |
Public Health
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Monitoring performance indicators, revenue budget, expenditure and strategic milestones will have a positive impact on the public's health or that of individuals.
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Director of Finance, Resources and Business Improvement (Section 151 Officer) |
Crime and Disorder |
There are no specific issues arising. |
Director of Finance, Resources and Business Improvement (Section 151 Officer)
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Procurement |
Performance Indicators and Strategic Milestones monitor any procurement needed to achieve the outcomes of the Strategic Plan.
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Director of Finance, Resources and Business Improvement (Section 151 Officer)
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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.
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Director of Finance, Resources and Business Improvement (Section 151 Officer) |
2. INTRODUCTION AND BACKGROUND
2.1 The Medium Term Financial Strategy for 2023/24 to 2027/28 - including the budget for 2023/24 - was approved by full Council on 22nd February 2023. This report updates the Committee on how its services have performed for the financial year, up to and including quarter 4, with regard to revenue and capital expenditure against approved budgets.
2.2 The reduction in the number of Policy Advisory Committees from four to three and the new allocation of responsibilities between Committees is reflected in this report, such that performance is shown as though the new allocations had been in effect throughout the financial year 2023/24.
2.3 Attached at Appendix 1 is a report setting out the revenue and capital spending position at the Quarter 4 stage. Overall net expenditure at the end of Quarter 4 for the services reporting to PHSC PAC is £4.102m compared to the approved budget of £2.439m, representing an overspend of £1.663m. Capital expenditure at the end of Quarter 4 for PHSC PAC was £0.712m against a total budget of £2.089m, representing and underspend of £1.377m. There are a number of significant variances within that underspend, and these are also detailed in Appendix 1.
2.4 Attached at Appendix 2 is a report setting out the position for the KPIs for the corresponding period. Attached at Appendix 3 is an update on the UK Shared Prosperity Fund.
3.1 The Committee is asked to note the contents but may choose to comment.
4. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
4.1 In considering the current position on the Revenue budget, the Capital Programme, and the KPIs at the end of March 2024, the Committee can choose to note this information or could choose to comment.
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 2023/24. The budget is set against a continuing backdrop of
limited resources and the continuation of a difficult economic climate. 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 Cabinet the best opportunity to take actions to mitigate such
risks.
6. CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK
7. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION
7.1 The Quarter 4 Budget & Performance Monitoring reports are being considered by the relevant Policy Advisory Committees during July 2024.
8. REPORT APPENDICES
· Appendix 1: Fourth Quarter Budget Monitoring 2023/24
· Appendix 2: Fourth Quarter Performance Monitoring 2023/24
· Appendix 3: UK Shared Prosperity Fund Update 2023/24
9. BACKGROUND PAPERS
None.