Agenda item

The Executive Director Core Services and Service Director Finance (Section 151 Officer) will submit a report that was approved by Cabinet on the 6^th March, 2019 on the financial performance of the Authority during the third quarter ended 31^st December, 2018 and assessing the implications against the Council’s Medium Term Financial Strategy.

The Executive Director Core Services and Service Director Finance (Section 151 Officer) submitted a joint report that had been approved by Cabinet on the 6^th March 2019 on the financial performance of the Authority during the third quarter ended 31^st December, 2018 and assessing the implications against the Council’s Medium Term Financial Strategy.

The report indicated that for Council Services there was a projected operational underspend of £2.418m in 2018/19 and in relation to Corporate Budgets there was an operational underspend of £2.530m.  Although quarter 3  was reporting a positive position, the Council still had some significant savings to deliver over the next three years within a financial climate that remained uncertain and challenging.

In the ensuing discussion reference was made to the following:

·         It was noted that there had been a significant improvement compared to quarter 2 although certain issues remained which needed to be addressed including, amongst other things, the Special Educational Needs Budget.  It was noted, however, that this matter was being addressed and an oversight board had been established led by the Executive Director People monitor progress

·         Arising out of the above, there was a detailed discussion about SEN expenditure/funding which, it was noted, was also a national issue.  In addition, it was reported that this area had also been inspected as part of the Peer Review and it was hoped that positive recommendations would be forthcoming

·         There was a further discussion of bad debts and how this was calculated.  Further information would be provided

·         In response to specific questioning, information was provided on the high levels of staff turnover particularly in some service areas and of the action taken to address the issues identified.  It was noted, however, that the authority was satisfied that it had the correct staffing levels in place to meet service requirements

·         Reference was made to the funding arrangements for both The Glassworks and Digital Media Centre.  It was particularly noted that in relation to The Glassworks, commercial lettings would driver the overall financial envelope

·         Arising out of the above, there was a discussion of the way in which finance was obtained via the City Region, of the appraisal mechanisms in place and on the monitoring arrangements which had to be established to ensure compliance with funding requirements

RESOLVED that the report be received and the Corporate Financial Performance position for the quarter ending 31^st December, 2018 be noted.