CABINET

20 September 2023

1^st Quarter Finance, Performance & Risk Monitoring Report 2023/24

Will this be a Key Decision?

No

Urgency

Not Applicable

Final Decision-Maker

Cabinet

Lead Head of Service

Mark Green, Director of Finance, Resources & Business Improvement

Lead Officer and Report Author

Paul Holland, Senior Finance Manager

Carly Benville, Senior Information Analyst

Orla Sweeney, Senior Policies & Communities Officer

Charlotte Yarnold, Programme Manager (Strategic Planning)

Uche Olufemi, Emergency Planning & Resilience Manager

Classification

Public

Wards affected

All

Executive Summary

This report sets out the 2023/24 financial and performance position as at 30^th June 2023 (Quarter 1). 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.

·                      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 1 stage the Council has incurred net expenditure of £2.916m against the approved profiled budget of £2.473m, representing an overspend of £0.444m. The projected year-end outturn position at this stage is an overspend of £0.274m.

Overall net expenditure at the end of Quarter 1 for the services reporting to CS PAC is  £1.606m, compared to the approved profiled budget of £1.309m, representing an overspend of £0.297m.

At the Quarter 1 stage, the Council has incurred overall net expenditure of £2.411m against a budget allocation within the Capital Programme of £54.999m. The projected year-end net expenditure is £40.627m.

Capital expenditure at the end of Quarter 4 for CS PAC was £0.490m against a total budget of £17.605m.

Performance Monitoring

100% (2 out of 2) of the Key Performance Indicators for this Policy Advisory Committee achieved their Quarter 1 target. Across the other three Committees a number of targets were missed, mainly due to current issues with the economy, although there were improvements in a number of other areas.

Recovery & Renewal Update

One of the three areas of focus in the Recovery and Renewal Action has now been completed. This is shown in the update at Appendix 3.

UK Shared Prosperity Fund Update

An update on progress made against schemes using this funding is shown at Appendix 4.

Corporate Risk Update

Appendix 5 outlines all the Council’s corporate risks. The corporate risk ratings and scores have remained largely consistent with the last report in May. There remains one black operational risk in respect of the waste collection contact costs. 

Purpose of Report

The report enables the Cabinet to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues as at 30^th June 2023.

This report makes the following recommendations to the Cabinet:

1.   That the Revenue position as at the end of Quarter 1 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 1 for 2023/24 be noted;

3.   That the Performance position as at Quarter 1 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 Recovery & Renewal Update, attached at Appendix 3 be noted.

5.   That the UK Shared Prosperity Fund update, attached at Appendix 4 be noted.

6.   That the Risk Update, attached at Appendix 5 be noted.

1^st Quarter Finance, Performance & Risk Monitoring Report 2023/24

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.

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.

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.

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.

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.

Senior Legal Advisor – Corporate Governance

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.

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, Resources and Business Improvement (Section 151 Officer)

Procurement

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

Director of Finance, Resources and Business Improvement (Section 151 Officer)

Biodiversity and Climate Change

Sufficient budget has been allocated for the Council's short to medium term financial commitment to addressing the biodiversity and climate issues stipulated in the Biodiversity and Climate Change Action Plan.

Biodiversity and Climate Change Manager