Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

RESOLVED –

1.     That the Quarter 3 net expenditure on services year to date was £13,081,000, £4,093,000 more than budget be noted.

2.     That by year end the Council anticipates net expenditure of £19,484,000 on services and that this forecast is £6,620,000 over budget and a further £277,000 since Quarter 2 be noted.

3.     That by year end the Council anticipates receiving an increase in funding of £5,035,000, a further £908,000 since Quarter 2 and that this reduces the deficit to £1,585,000 over budget, an improvement of £631,000 this quarter be noted.

4.     That write offs as set out in Paragraph 2.27 and detailed in Appendix J be approved. 

REASON FOR DECISION:

To show the actual expenditure on services compared to the revised budget for the period ending 31 December 2020, and the forecast outturn position, highlighting significant variances from the revised annual budget. 

Jane Fineman, Head of Finance, Procurement and Parking introduced the report that showed actual expenditure on services compared to the revised budget for the period ending 31 December 2020.  It further included the forecast outturn position from the revised annual budget.

Discussion and responses to Members questions included the following:

-       Actual expenditure to 31 December 2020 was £13.081m, £4.093m over budget.

-       This consisted of a shortfall in income of £6.179m, less a saving in costs of £2.086m.

-       The forecast outturn for the year was now £1.585m over budget.  This was an improvement from quarter 2 of £631k.

-       At quarter 2, income from sales, fees and charges were forecast to be £6.945m under budget for the year.  This was due to the impact of the pandemic.   This had increased by £1.135m in quarter 3 to £8.08m.

-       The main changes were a further £705k for off street parking, £336k for the Assembly Hall Theatre, £350k for income from the ice rink, £200k court income and £71k from on street parking.

-       The Government compensation scheme to help cover these losses was estimated at £4.27m and this had been provided for in the forecast.  This was an increase of £545k from quarter 2.

-       TWBC was awarded a grant of £500k from the Governments Cultural Recovery Grant Fund for the Assembly Hall Theatre. Of which £445k would be used for revenue.  The additional income, as well as £28k additional furlough income had been added to the quarter 3 forecast.

-       Forecast cost savings were anticipated to be £1.46m for the year, an increase of £858k this quarter.  The main contributor was £519k of savings from staffing, mainly staff vacancies.  An additional savings of £169k had been forecast of the Assembly Hall Theatre as the theatre had remained closed.

-       There was a projected improvement in investment and bank interest of £140k. 

-       Approval was sought for £59,665 in write offs.

-       Ear marked reserves had already been approved to fund the balance of £2.216m.  This transfer could now be reduced to £1.585m.

-       As at 31 march 2020 the Council had £21.2m of usable reserves.  This included £4.09m in the General Fund and £11.26m in earmarked reserves.  The reserves had been analysed and £6.6m had been identified to be used to meet the budget deficit caused by Covid-19. 

-       The Council had sufficient reserves to cover the budget shortfall at this time. 

RESOLVED –

1.    That the Quarter 3 net expenditure on services year to date was £13,081,000, £4,093,000 more than budget be noted.

2.    That by year end the Council anticipates net expenditure of £19,484,000 on services and that this forecast is £6,620,000 over budget and a further £277,000 since Quarter 2 be noted.

3.    That by year end the Council anticipates receiving an increase in funding of £5,035,000, a further £908,000 since Quarter 2 and that this reduces the deficit to £1,585,000 over budget, an improvement of £631,000 this quarter be noted.

4.    That write offs  ...  view the full minutes text for item 110

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Jane Fineman, Head of Finance, Procurement and Parking introduced the report that showed actual expenditure on services compared to the revised budget for the period ending 31 December 2020.  It further included the forecast outturn position from the revised annual budget.

Discussion and responses to Members questions included the following:

-       Actual expenditure to 31 December 2020 was £13.081m, £4.093m over budget.

-       This consisted of a shortfall in income of £6.179m, less a saving in costs of £2.086m.

-       The forecast outturn for the year was now £1.585m over budget.  This was an improvement from quarter 2 of £631k.

-       At quarter 2, income from sales, fees and charges was forecast to be £6.945m under budget.  This had increased by £1.135m in quarter 3 to £8.08m. 

-       The main changes were a further £705k for off street parking, £336k for the Assembly Hall Theatre, £250k for the ice rink, £200k court income and £71k from on street parking.

-       The Government compensation scheme to help cover these losses was estimated at £4.27m and this had been provided for in the forecast.  This was an increase of £545k from quarter 2.

-       TWBC was also awarded a grant of £500k from the Governments Cultural Recovery Grant Fund for  the Assembly Hall Theatre.  Of which £445k would be used for revenue. 

-       The additional income had been included in the quarter 3 forecast.

-       Forecast cost savings were anticipated to be £1.46m for the year, an increase of £858k this quarter.  The main contributor was £519k of savings from staffing and staff vacancies.  An additional saving of £169k had been forecast for the Assembly Hall Theatre costs.

-       There was a projected improvement in investment and bank interest of £140k.

-       Approval of £59,665.00 in write offs had been requested.

-       Ear marked reserves had already been approved to fund the balance of £2.216m.  This transfer could now be reduced to £1.585m.

-       As at 31 March 2020 the Council had £21.2m of usable reserves.  £6.6m had been identified to be used to meet the budget deficit caused by Covid-19. 

-       The five year deficit forecast would be re-forecast after Full Council had agreed the budget.

RESOLVED - That the recommendations to Cabinet as set out in the report be supported.