Agenda item

To receive the report of the Cabinet Member for Performance and Resources which outlines the budget variances, year end forecasts and progress made against agreed savings targets for the second quarter ended 30^th September 2014.  The report also highlights some key performance indicators.

The Chair welcomed Councillor James, Leader of the Council and Cabinet Member for Regeneration and Culture and Mr Jon Topping, Head of Finance, to the meeting.

Councillor James introduced a report which set out financial monitoring information including budget variances, year end forecasts, and progress made against agreed savings targets for the second quarter ended 30 September 2014.  The report also highlighted some key performance indicators.  Overview and Scrutiny Committee was asked to note the contents of the report and make any recommendations it wished to the Cabinet.

Members discussed the following matters:-

1.         Whether the historic budget issue identified in paragraph 6.1 relating to the level of recharges to partners would be addressed.  The Head of Finance explained the background to this historic issue and confirmed that work was underway to determine the correct level of income that should be received which in turn would resolve the issue.

2.         A Member commented on the presentation of the tables within the report and made positive suggestions to aid the legibility of the tables.

3.         The Committee was informed that whilst it was unlikely that all the savings in Appendix A to the report would be achieved in 2014/15 it was anticipated that all of them would be realised in the year 2015/16.

4.         There was a discussion on the General Fund.  It was noted that the increase in the General Fund was not as high as had been anticipated due to the current forecast overspend of £317K.  Councillor James commented that he believed the amount going into the General Fund was adequate.

5.         A Member queried the £100K target to be achieved in the Regeneration and Economic Development restructure (paragraph 6.3) and asked where the remaining £80K would be found.  The Head of Finance referred the Member to the consultation on the restructure which was currently taking place and stated that he was confident that the remaining £80K savings would be achieved in the year 2015/16. 

6.         The anticipated reduction in income from catering at the City Museum was discussed.  Councillor James explained that this was likely to arise as a result of increased competition and the way the operation was managed.

7.         A Member queried the £356K overspend in the Business Improvement Service and asked for a breakdown of the figures.  The Head of Finance agreed to let the Committee have this information before their next meeting.

8.         There was a discussion on the investment in IT (paragraph 6.1) with one Member querying how much it was costing to improve systems and network security.  Councillor James responded that investment in IT was programmed in the budget.

9.         Reference was made to the additional savings target imposed on Amey, the Council’s streetcare partner, of £230K which was deemed to be ‘at risk’ (paragraph 5.4).  The Head of Finance confirmed that discussions were still ongoing with Amey in an effort to realise the savings by the end of 2015/16.

10.       The Chair asked if the Council benefited from Civica’s involvement in other contracts whilst operating from the City Council’s buildings.  Councillor James confirmed that this was the case with the exception of the IT contract which was only delivered to City Council staff and Members.

RESOLVED – That the report be noted.