Your Councillors

Policy & Resources Committee

18 September 2019

 

1st Quarter Performance & Budget Monitoring

 

Final Decision-Maker

Policy & Resources Committee

Lead Head of Service

Mark Green, Director of Business Improvement

Lead Officer and Report Authors

Chris Hartgrove, Interim Head of Finance

Paul Holland, Senior Finance Manager (Client)

Clare Harvey, Data Intelligence Officer

Classification

Public

Wards affected

All

 

Executive Summary

 

This report sets out the financial position for the Council at the end of Quarter 1 2019/20 against the revenue and capital budgets. The report also asks the Committee to review the progress of Key Performance Indicators that relate to the delivery of the Strategic Plan 2019-2045, and to consider the comments and actions against performance to ensure they are robust.

 

At the end of the Quarter 1 the profiled revenue budgets are showing an under spend of £0.293m, and the current year-end forecast shows that we will remain with budget. 

 

Capital expenditure totalling £1.430m was incurred between 1st April and 30th June, with forecast slippage into 2020/21 of £14.528m.

 

Overall, 18 of the 21 Performance Indicators (86%) achieved their target, with 11 indicators showing improvement compared to Quarter 1 last year.

 

Six of the seven indicators relating to the strategic priority “A Thriving Place” achieved their target, with four showing an improvement from the same quarter last year.

 

All six targeted indicators for “Safe, Clean and Green” met their targets, with three indicators showing an improvement.

 

All three targeted indicators for “Homes & Communities” also met their targets. Four of the five indicators where trend information is available have improved compared to Quarter 1 last year.

 

The three targeted indicators for “Embracing Growth and Enabling Infrastructure” have also exceeded their targets.

 

Purpose of Report

 

The report enables the Committee to consider the financial position and any performance issues at the end of June 2019.

 


 

 

This report makes the following recommendations to the Committee:

1.   That the Revenue position at the end of the Quarter 1 and 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 1 be noted.

 

3.   That the Summary of Performance for Quarter 1 for Key Performance Indicators is noted.

 

 

Timetable

Meeting

Date

Policy & Resources

Committee

 

18 September 2019



1st Quarter Performance & Budget Monitoring

 

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.

 

Interim Head of Finance (Deputy 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 2019-20, including its cross-cutting objectives.    

 

Interim Head of Finance (Deputy Section 151 Officer)

 

Risk Management

This is addressed in Section 5 of this report.

Interim Head of Finance (Deputy 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.

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.

 

Interim Head of Finance (Deputy Section 151 Officer)

Legal

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

 

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.

 

Team Leader (Corporate Governance), MKLS

Privacy and Data Protection

The performance data will be 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.

 

Team Leader (Corporate Governance), MKLS

Equalities

No impact 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 Corporate Policy Officer

Public Health

 

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

Public Health Officer


 

Crime and Disorder

No specific issues arise.

Interim Head of Finance (Deputy Section 151 Officer)

 

Procurement

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

 

Interim Head of Finance (Deputy Section 151 Officer)

 

 

2.        INTRODUCTION AND BACKGROUND

 

2.1     The five-year Medium-Term Financial Strategy for 2019/20 to 2023/24 was agreed by full Council on 27 February 2019. This report advises and updates the Committee on how each Service Committee has performed with regard to revenue and capital expenditure against the approved budgets within its remit.

 

2.2     The Director of Finance & Business Improvement is the Responsible Financial Officer and has overall responsibility for budgetary control and financial management. However, in practice, day to day budgetary control is delegated to service managers, with assistance and advice from their director and the finance section.

                                                                  

2.3     This report now also includes a section on the Key Performance Indicators (KPIs) for the Council. This was previously covered in a separate report, but it was felt that it would be more helpful for Members to see this alongside the financial reports as there are sometimes common issues that link the two sets of data.                                                                                                          

2.4     Attached at Appendix 1 is a report detailing the position for the revenue and capital budgets at the end of June 2019. Attached at Appendix 2 is a report setting out the position for the KPIs at the end of June 2019.

 

 

3.        AVAILABLE OPTIONS                                                                                

3.1     There are no matters for decision in this report.  The Committee is asked to note the contents but may choose to take further action depending on the matters reported here.

 

 

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 June 2019, the Committee can choose to note this information or it could choose to take further action.                                                                                            

4.2    The Committee is requested to note the content of the report and agree on any necessary action to be taken in relation to the budget position or the KPIs report.                                                                                  

 

5.       RISK

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

 

5.2   The Council has produced a balanced budget for both revenue and capital income and expenditure for 2019/20. This budget is set against a backdrop of limited resources and 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 Committee the best opportunity to take actions to mitigate such risks.

 

 

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK                                      

6.1    The KPI Update is reported quarterly to the service committees; Communities Housing and Environment Committee, Strategic Planning & Infrastructure Committee and Economic Regeneration & Leisure Committee. Each Committee will receive a report on the relevant priority action areas. The full set of KPIs are presented to the this Committee, reporting on the priority areas of: “A Thriving Place”, “Safe, Clean and Green”, “Homes and Communities” and “Embracing Growth and Enabling Infrastructure”.

 

 

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1     The Quarter 1 performance and budget monitoring reports are being considered by the relevant service committees during September, including a full report to this Committee on 18th September 2019.                                  

7.2     Details of the discussions which take place at service committees regarding budget management will be reported to this Committee where appropriate.                                                                                    

7.3     The Council could choose not to monitor the Strategic Plan and/or make alternative performance management arrangements, such as reporting frequency. This is not recommended as it could lead to action not being taken against performance during the year, and the Council failing to deliver its priorities.

 

 

8.        REPORT APPENDICES

·         Appendix 1: First Quarter Budget Monitoring 2019/20

·         Appendix 2: First Quarter Key Performance Indicators 2019/20

 

 


9.       BACKGROUND PAPERS

 

None.