Agenda item

Financial Monitoring 2017/18

Minutes:

The report set out the current budget position in respect of the 2017/18 revenue and capital budgets and performance against efficiency targets. 

 

Revenue Budget

 

The overall position as at the end of May showed an underspend of £0.097m. It was noted that it was too early in the financial year for any trends in expenditure to be evident and that the situation would be closely monitored as the year progressed.  The Committee was provided with detailed information regarding the position within individual departments with major variances related to non-pay spend and variances on the pay budget summarised as follows: -

 

 

Area

Overspend/ (Under spend)

Reason

 

£’000

 

Service Delivery

43

The overspend related to various headings, such as uniforms, training props for stations, and furniture,  the majority of which were timing related and were expected to even out as the year progressed.

Training & Operational Review

55

The overspend related to the timing of committed spend for training courses taking place later in the financial year, and was therefore a timing issue, rather than an anticipated outturn position.

Pay

(172)

In terms of the underspend to date, this was broken down as follows:

  • Wholetime pay (£50k underspend) this partly related to the number of early leavers in the year, whereby 4 personnel had left earlier than anticipated, whereas the budget allowed for just 2. With the balance of the underspend relating to the timing of costs of ad hoc payments such as overtime and public holidays.
  • Retained pay (£70k underspend) reflected the two month delay in implementing the new RDS pay scheme, as previously reported.
  • Support staff pay (£50k underspend) related to several vacant posts across various departments, which were in excess of the vacancy factor built into the budget. Recruitment for the majority of these vacancies was currently underway, however it was likely that this underspend would increase, albeit at a slower rate, as the year progressed until such time as we return to full establishment.

 

Capital Budget

 

The Capital Programme for 2017/18 stood at £13.533m, after allowing for slippage of £5.354m, as reported elsewhere on the agenda.

 

A review of the programme had been undertaken to identify progress against the schemes as set out in the report.  Appendix 2 set out the capital programme and the expenditure position against this, as reflected in the report.  The costs to date would be met by both capital grant and revenue contributions.  Members also noted that during May the surplus land at Valley Road, Penwortham was sold, bringing a capital receipt of £0.070m which could be used to fund future capital programmes.

 

Delivery against savings targets

 

The annual target stood at £1.55m. To date £0.5m of savings had been delivered.  The performance to date was slightly ahead of target, a combination of the underspend on salaries for the first two months, plus savings in respect of procurement activities during the same period.  It was anticipated that the efficiency target would be met for the financial year.

 

RESOLVED: - That the Committee note the financial position.

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