Agenda item

(Director of Resources) To consider the attached report (FPM-020-2015/16).

The Director of Resources presented the quarterly Financial Monitoring report for the period 1 April to September 2015, which provided a comparison between the original profiled budgets for the period ended 30 September 2015 and the actual expenditure or income. The report provided details of the revenue budgets for both the Continuing Services Budget and the District Development Fund and the capital budgets including details of major capital schemes.

The Cabinet Committee noted that the salaries budget showed an underspend of £287,000 or 2.7%. A vacancy allowance of 1.5% had been allowed for but clearly vacancies were running at a rather higher level at the moment within all directorates (except Chief Executive) and showed a degree of underspend. Investment interest levels were below expectations at Month 6 by £45,000 and this was likely to continue as the second half of the financial year should see the start of the construction of the retail park which would deplete the cash balances further.

The Resources and Neighbourhoods Directorates had the largest underspend of £114,000 and £98,000 respectively. The former related mainly to Revenues, Benefits and to a lesser degree Accountancy and the latter to Grounds Maintenance and Estates.

The Director of Resources reported that the non-domestic rate estimated at the end of September 2015 had reduced by £576,602 and as the Council retained the 40% of gains and losses it would mean a reduction in funding of £230,641. Cash Collections was £19,093,976 and payments out were £17,076,138, which meant that the Council held £2,017,838 of cash and so the Council’s overall cash position was benefitting from the effective collection of non-domestic rates.

Within the Neighbourhoods Directorate the Public Hire licence income was in line with expectations but other licensing was below expectations and Income from MOT’s carried out by Fleet Operations was £3,000 above expectations. The Car Parking income was £41,000 below the estimate with the telephone payments being two months behind and accounting for £12,000 of the shortfall. Also the Season ticket income was £8,000 down. Local Land Charge income was £14,000 below expectations because of a reduction in searches undertaken and the waste management contract recycling credits were behind expectations due to late billing.

Within the Governance Directorate Development Control income was £179,000 higher than the budget to date and pre-application charges were £12,000 higher. Building Control income was £31,000 higher than the budgeted with the ring-fenced account showing an in-year surplus of £51,000.

Within Communities the Housing Repairs Fund showed an underspend of £314,000. There was also a significant variance on HRA Special Services which relate partly to heating and lighting and some savings were also due in part to the work undertaken by Smith Bellerby.

There were three projects included on the Major Capital Schemes schedule which were related to the Museum redevelopment, the House Building package 1 and the Epping Forest Shopping Park.

Resolved:

(1)        That the Quarterly Finance Monitoring Report for the period 1 April to 30 September 2015 be noted.

Reasons for Decision:

To note the second quarter financial monitoring report for 2015/16.

Other Options Considered and Rejected:

No other options available.