Agenda item

To receive the report of the Cabinet Member for Performance and Resources which sets out financial monitoring report details including budget variances, year-end forecasts, and progress made against agreed savings targets for the 2nd quarter ended 30th September 2015.

The Chair welcomed Councillor David Norman (Cabinet Member for Performance and Resources), Anne Brinkhoff (Corporate Director) and Andrew Cummings (Management Accountant) to the meeting.

Councillor David Norman shared that the forecasts within the report were best estimates based on the current financial status and that the financial performance was stronger than at the end of Quarter 1.

Councillor David Norman stated that the Cabinet were aware that the Culture and Leisure Portfolio presented some challenges and expressed disappointment that targets were not being met. He stated that the Cabinet Member for Culture and Leisure was taking steps to improve the financial performance of the portfolio.

Councillor David Norman concluded his update stating that the Council continued to enjoy a wide range of financial options and opened the topic to the Committee for questions.

Councillor Wilson stated it was an encouraging report with a large breakdown of figures, but that it did not show if there were any overall concerns in specific areas, such as an effect on performance due to financial changes and the resultant changed workloads for Officers. 

Councillor Wilson also raised the matter of the discrepancy between the forecast income and the actual income for the Tourist Information Centre (TIC) and asked if it should be of concern. Councillor David Norman confirmed that the Council should not be complacent regarding any missed target. Andrew Cummings clarified the figures, stating that a significant amount of TIC revenue was due to ticket sales but a large amount of costs were also due to ticket sales, so as sales rose, costs would rise and vice versa. Due to lower sales resulting in lower costs, the TIC was expected to be down by about £20,000 in revenue, rather than £109,000 in the income appendix.

In response to a question from Councillor Wilson regarding the difference between the forecast and actual spend on Housing projects, Andrew Cummings explained it may have been due to lower take up of Disabled Facilities Grants but he would obtain the Councillor further information.

Councillor Hilton expressed disappointment that, with only a few months of the year left, there was no time to address the overspend within the Culture and Leisure Portfolio. Councillor David Norman agreed that it was disappointing that targets had not been met, but that the matter was being addressed in plans for the next financial year. Andrew Cummings stated that the predicted overspend was due to the saving target agreed by Council, and the revenue performance for this portfolio was set to exceed this time last year. Councillor David Norman stated that Cabinet was in the process of drafting the budget for 2017/18 and were aware that the Council was facing financial challenges and would be realistic with their aims. As part of meeting those challenges, Cabinet had received recommendations from the Together Gloucester team on how to make savings.  He stated that 2017/18 will be a financial challenge for the Council, but all portfolios would be scrutinised by Cabinet, and that he would oversee that process.

Councillor Haigh asked for further information regarding the Garden Waste and Bulky Items schemes, as these were intended to be cost neutral, but currently were not. Andrew Cummings said that the scheme was broadly on target, but an increase in engagement, meant an increase in costs. He said more details could be shared and Councillor Haigh requested this.

The Chair thanked Councillor David Norman, Anne Brinkhoff and Andrew Cummings for their presentation.

RESOLVED – That the report be noted.