Agenda item

(Director of Finance & ICT) To consider the attached report (FPM-017-2012/13).

The Assistant Director (Accountancy) presented the quarterly Financial Monitoring report for the period April to September 2012, which provided a comparison between the original profiled budgets for the period ended 30 September 2012 and the actual expenditure or income as applicable. The report provided details of the revenue budgets – both the Continuing Services Budget and District Development Fund – as well as the capital budgets, including details of major capital schemes.

The Cabinet Committee noted that the Salaries budget showed an underspend of £265,000 or 2.7%. Investment income levels were below expectation after two quarters and there was no obvious sign of rates improving at the current time. The Council had received 74.5% of its original £2.5million investment placed with the Heritable Bank from the Administrators. A further payment was expected in January 2013, and the Council was expected to receive 90% of its original investment.

Within the Planning & Economic Development Directorate, Development Control income was £27,000 below expectations, and this budget was expected to show a shortfall of approximately £40,000 by the end of the year. However, income from pre-application discussions had already exceeded the full year budget. Building Control income was also down, by £56,000, but expenditure was also down so it was anticipated that the account would still break even by the end of the year.

Within the Corporate Support Services Directorate, income from MOT’s carried out by Fleet Operations was £8,000 below expectations. There were some difficulties experienced while the new ramp was being installed, and income for the whole year was expected to be £10,000 below budget. Local Land Charge income was above the original estimate and this suggested that income would exceed the budget for the year. However, there was still significant uncertainty about charging for these services in the future.

Within the Housing Directorate, the Housing Repairs Fund was showing an underspend of £894,000 but a large proportion of the expenditure was due to be spent during the winter months. This budget would be revised shortly, and there could be a saving realised.

In conclusion, the Assistant Director stated that income was generally a little down on expectations, but expenditure was too. Currently, it seemed unlikely that there would be a significant variance on the estimated addition to the Reserves for the year. The Cabinet Committee was requested to note the Council’s financial position as at 30 September 2012.

The Housing Portfolio Holder queried the carry-forward within the Capital Programme of £436,000 into 2013/14 for off-street parking schemes on Council-owned land, as one of the schemes originally identified was not now being implemented. The Director of Finance & ICT responded that the report had been compiled on the basis of the knowledge available at the time, but that the figure would be revised following the consideration of the report on such schemes at the next meeting of the Cabinet.

Resolved:

(1)        That the Quarterly Financial Monitoring Report for the period April to September 2012 be noted.

Reasons for Decision:

To monitor the Council’s current financial position.

Other Options Considered and Rejected:

No other options were considered as the report monitored the Council’s financial position after six months of the financial year.