Agenda item

To consider Item 5

The Principal Accountant advised Members that the report set out the Authority’s revenue and capital spending position as at 30 November 2020, together with the projected outturn position for the financial year. The current expenditure forecast of £31.698m against a budget of £31.339m resulted in an overspend of £358k.  However, due to the additional funding of £847k received in year in relation to Covid, Protection Grants and Airwave, there was a net overall underspend of £489k.

The summary of variances seen within each Directorate, was as follows:

·       Corporate Core was showing a £16k underspend which related to underspend in legal costs and consultations with the public (Public Safety Plan) as well as courses and conference fees postponed due to Covid; offset by unachievable interest income on investments and additional audit fees not budgeted for.

·       Finance & Assets was showing an overspend of £48k which predominantly related to West Ashland revenue costs which would be partially covered by charges to South Central Ambulance Service and Thames Valley Police, not currently reflected in the forecast. This was offset by underspend relating to vacant posts within the directorate that have been now filled or recruitment delayed due to Covid.

·       People & Organisational Development was showing an underspend of £69k mainly relating to underspend seen within employee costs. In addition, Thames Valley collaboration costs of £13k were not expected during the current financial year.

·       Delivery, Corporate Development & Planning was currently projecting a £104k underspend.  Covid response costs of £845k were reported within this directorate (including the £230k that has been transferred to a Covid-19 reserve as approved by this Committee in September) was offset by underspend seen within Wholetime and On-call direct employee costs. This was due to a number of wholetime posts not at the top of pay scales and employees being on the 2015 pension scheme which would see a lower contribution rate than budgeted for in the 1992 scheme.

·       Statutory Accounting and Contingency overspend of £500k related to additional revenue contribution to capital as approved by this Committee in September.

The Principal Accountant advised Members that the Capital Programme for 2020/21 of £3.025m, included £1.809m worth of carry forward capital projects from 2019/20. Most of the capital works related to West Ashland. The forecasted year-end variance for Property Review (£2.686m) was expected to be offset by additional capital receipts and contributions which would result in a net variance of around £1m against the forecast expenditure.

A Member asked what was the latest position with regard to Covid-19 costs and the use of funding, given that the forecast was only until the end of November and the position may have changed.

The Deputy Director of Finance and Assets advised that the Authority had been given two allocations, £90k in March 2020 and £606k within this financial year, a total of £696k. The current projection looked like all the funding would be utilised. Following on from that, the Government had made another tranche of funding available, and having collated all the figures, the Authority would be putting in a bid for around £140k. This was predominantly due to the support it had given to South Central Ambulance Service, with some of its operational staff being seconded to drive ambulances and also the support the Authority had given to the mass vaccination programme. None of those costs were covered in the existing allocation of funding so the Authority was looking to access some of the additional funding being made available.

A Member asked about the property portfolio, in particular West Ashland, and recalled there was concern about one of the professional teams involved in the project and there had been discussions about getting some of the fees returned.

The Director of Finance and Assets advised that at present, work was ongoing to finalise the final account. It had taken longer than anticipated, partly due to Covid but also the complexity of finalising the figures. Once there was a final figure on the final account, the Authority would look at the possibility of what could potentially be recovered from the professional teams in terms of delays caused by design costs, design problems etc. It was still to be investigated over the coming months and Members would be kept up to date with progress.

RESOLVED –

That the latest projected outturn forecast for the Authority as at 30 November 2020 be noted.