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CORPORATE SERVICES POLICY ADVISORY COMMITTEE |
6 February 2023 |
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3rd Quarter Finance, Performance & Risk Monitoring Report 2022/23 |
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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 |
Executive |
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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 Georgia Harvey, Senior Information Governance Officer Alison Blake, Interim Head of Mid Kent Audit Orla Sweeney, Senior Policies & Communities Officer Charlotte Yarnold, Programme Manager (Strategic Planning) |
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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 2022/23 financial and performance position for the services reporting into the Corporate Services Policy Advisory Committee (CS PAC) as at 31st December 2022 (Quarter 3). The primary focus is on:
• The 2022/23 Revenue and Capital budgets; and
• The 2022/23 Key Performance Indicators (KPIs) that relate to the delivery of the Strategic Plan 2019-2045.
· Corporate Risk Register
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.
Budget Monitoring
At the Quarter 3 stage the Council has incurred net expenditure of £8.476m against the approved profiled budget of £10.306m, representing an underspend of £1.830m. Overall net expenditure at the end of Quarter 3 for the services reporting to CS PAC is £2.199m, compared to the approved profiled budget of £2.960m, representing an underspend of £0.761m.
At the Quarter 3 stage, the Council has incurred overall expenditure of £12.232m against a budget allocation within the Capital Programme of £32.631m.
Capital expenditure at the end of Quarter 3 for CS PAC was £2.197m against a total budget of £10.079m.
The budgets used in this report are the revised estimates for 2022/23.
Performance Monitoring
A number of targets were missed due to current issues with the economy and the continuing after-effects of Covid-19, although there were improvements in a number of other areas.
Corporate Risk Update
Appendix 3 outlines all the Council’s corporate risks. Of note are changes to the retail / leisure sector risk which has decreased and been re-framed. The other corporate risks have been reviewed and updated with some changes to risk descriptions and/or controls or actions. The report also includes the operational risk profile of the Council and the most significant (black) operational risks.
Recovery & Renewal Update
A number of actions across the three areas of focus in the Recovery and Renewal Action have now been completed. This is show in the update at Appendix 4.
UK Shared Prosperity Fund Update
An update on progress made against schemes using this funding is shown at Appendix 5.
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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 December 2022. |
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This report makes the following recommendations to the Corporate Services Policy Advisory Committee:
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1. That the Revenue position as at the end of Quarter 3 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 Executive is recommended to write-off irrecoverable outstanding rent due of £25,152 from Chillington House.
3. That the Capital position at the end of Quarter 3 for 2022/23 be noted;
4. That the Performance position as at Quarter 3 for 2022/23, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.
5. That the Risk Update, attached at Appendix 3 be noted.
6. That the Recovery & Renewal Update, attached at Appendix 4 be noted.
7. That the Executive is recommended to endorse the reallocation of Recovery and Renewal Funding for a number of projects as shown at 2.4 in this report.
8. That the UK Shared Prosperity Fund update, attached at Appendix 5 be noted.
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3rd Quarter Finance, Performance & Risk Monitoring Report 2022/23 |
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1. CROSS-CUTTING ISSUES AND IMPLICATIONS
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Issue |
Implications |
Sign-off |
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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) |
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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) |
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Risk Management |
This is addressed in Section 5 of this report. |
Director of Finance, Resources and Business Improvement (Section 151 Officer) |
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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) |
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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) |
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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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Interim Team Leader (Contentious and Corporate Governance) MKLS |
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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 |
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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 |
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Public Health
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The performance recommendations will not negatively impact on population health or that of individuals. |
Public Health Officer |
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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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Biodiversity and Climate Change Manager |
2. INTRODUCTION AND BACKGROUND
2.1 The Medium-Term Financial Strategy for 2022/23 to 2026/27 - including the budget for 2022/23 - was approved by full Council on 23rd February 2022. This report updates the Committee 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 Committee on progress against its Key Performance Indicators (KPIs), and an updated covering corporate risks.
2.3 Attached at Appendix 1 is a report setting out the revenue and capital spending position at the Quarter 2 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 report providing an update on corporate risks, in response to the Policy & Resources Committee’s previous request for regular updates on this subject. Attached at Appendix 4 is an update on progress against the Recovery & Renewal Plan and attached at Appendix 5 is an update on the UK Shared Prosperity Fund.
2.4 We have reviewed the spend against projects planned as part of the Recovery and Renewal Action Plan. The following projects will not spend all or part of their allocated funds and therefore require a reallocation of funding.
• Vibrant Economy - Mid Kent College skills hub – £60k.
• Resilient Communities - Support and Encourage Volunteering in the Borough – reallocate £11,583 (out of original £25K)
• The Way We Work - Embedding new ways of working and ensuring the office is fit for purpose £30k (out of original £50k)
The amount to be reallocated is £101,583. It is proposed that this money is redistributed to two successful projects already in the plan.
• Resilient Communities – Community Resilience Fund -£52,083
• Resilient Communities – Extension of Let’s Talk Maidstone on a three-year subscription – £49,500
The full details of this proposal are shown in Appendix 4 to this report.
3. AVAILABLE OPTIONS
3.1 The Committee is asked to note the contents but may choose to comment on the content.
4. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
4.1 In considering the current position on the Revenue budget, the Capital Programme, KPIs and Corporate Risks at the end of September 2022, 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 2022/23. The budget is set against a continuing 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. CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK
7. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION
7.1 The Quarter 3 Budget & Performance Monitoring reports are being considered by the relevant Policy Advisory Committees during February 2023.
8. REPORT APPENDICES
· Appendix 1: Third Quarter Budget Monitoring 2022/23
· Appendix 2: Third Quarter Performance Monitoring 2022/23
· Appendix 3: Risk Update 2022/23
· Appendix 4: Recovery & Renewal Update 2022/23
· Appendix 5: UK Shared Prosperity Fund Update 2022/23
9. BACKGROUND PAPERS
None.