The Sub-Committee is provided with summarised information from the latest Financial Performance Monitoring report (Period 10), with a view to considering whether it is reassured about the delivery of the 2023-24 General Fund, Housing Revenue Account (HRA) and the Capital Programme.
The Sub-Committee is provided with a report detailing the Key Performance Indicators monitored in the Directorate.
Minutes:
The report was introduced by Orlagh Guarnori, Head of Strategic Finance, who presented the key highlights. It was explained that the Housing Revenue Account (HRA) budget was forecasting a £12 million overspend due to an increase in demand for responsive repairs. This overspend was expected to remain at a similar level by year-end. The officers explained that to balance this budget, they would need to use HRA reserves. Similarly, the capital budget currently faced a potential overspend of around £10 million, which would also necessitate using reserves. However, the officers noted that they were working on mitigating and minimising the capital overspend.
The first question from the Sub-Committee concerned the projected savings and a forecasted savings slippage of £1.1 million for this year, and whether it would be absorbed into future savings targets, along with any associated risks. The officers explained that it was expected to carry the savings forward and attempt to achieve them in the next financial year.
The next question from the Sub-Committee asked if the officers anticipated anything that could adversely affect the end-of-year position. The officers assured that they had tried to account for all factors and did not anticipate any additional issues.
The Sub-Committee then inquired about a mentioned revenue gain of up to £4.5 million from claims for homeless people living in temporary accommodation, and where the money would be allocated. The officers responded that it would be allocated to the general fund.
Next, the Sub-Committee asked when the full list of KPIs would be completed.
The officers explained that the directorate monitored hundreds of measures, but not all would be relevant for the Sub-Committee. The officers assured that they were aiming to share the preliminary list of KPIs in September 2024.
The Sub-Committee also questioned the high vacancy rate and what was being done to recruit and retain staff. The officers responded that there was a significant need for a substantial recruitment programme. It was also mentioned that many posts were vacant due to the ongoing restructures. However, in some teams, such as housing needs, extensive recruitment had taken place in recent months, with permanent staff joining the Council. The officers highlighted that they had been working closely with Human Resources to better promote job offers.
Lastly, the Sub-Committee asked if any substantive changes to the budget development process were anticipated. The officers explained that for the HRA, the budget setting process would be different next year due to more advanced information from the stock condition survey, asset management strategy, and restructuring efforts. For the general fund, the budget setting process had already started and was more informed about costs and other drivers compared to last year, although the process would remain largely similar.
Conclusions
Following its discussion of this item, the Sub-Committee reached the following conclusions:
- The Sub-Committee noted with concern that, with less than a year remaining before the Exit Strategy, a clear set of KPIs has yet to be established, making monitoring more difficult and trend analysis challenging.
Supporting documents: