Issue - meetings

Issue - meetings

Quarterly Integrated Performance 2020/21 - Q1

Meeting: 05/10/2020 - Council (Item 33)

33 Quarterly Integrated Performance 2020/21 - Q1 pdf icon PDF 478 KB

The Head of Financial Services and Head of Business Improvement submitted a report to Cabinet on 12 August 2020 giving an update on Finance, Risk and Corporate Performance matters as at 30 June 2020.

Papers relating to this item and the decision of Cabinet are set out in the minutes of that meeting.

Cabinet recommends that Council resolves to:

1.     Agree an increase in the capital budget relating to the replacement housing management system of £423k funding as outlined in paragraph 16 of the report.

Additional documents:

Minutes:

Council considered the report of the Head of Financial Services and Head of Business Improvement giving an update on Finance, Risk and Corporate Performance matters as at 30 June 2020.

The Cabinet Member for Finance and Asset Management, Cllr Turner, introduced the report, outlined the pressures on the Council’s finances caused by the impact of the Covid pandemic, and answered questions on the report before proposing the recommendation.

The recommendation was agreed on being seconded and put to the vote.

Council resolved to agree an increase in the capital budget relating to the replacement housing management system of £423k funding as outlined in paragraph 16 of the report.

 


Meeting: 12/08/2020 - Cabinet (Item 44)

44 Quarterly Integrated Performance 2020/21 - Q1 pdf icon PDF 478 KB

The Head of Financial Services and Head of Business Improvement have submitted a report to update the Cabinet on Finance, Risk and Corporate Performance matters as at 30th June 2020.

Recommendation: That Cabinet resolves to:

1.    Note the projected financial outturn as well as the current position on risk and performance as at 30 June 2020; and

 

2.    Recommend to the Council an increase in the capital budget relating to the replacement housing management system of  £423k  funding as outlined in paragraph 16 of the report.

Additional documents:

Minutes:

The Head of Financial Services and Head of Business Improvement had submitted a report to update the Cabinet on Finance, Risk and Corporate Performance matters as at 30th June 2020.

Nigel Kennedy, Head of Financial Services, introduced the report. The position in relation to the General Fund was not significantly different from that previously reported in April. The Council was still sustaining heavy losses from commercial property rents, car parking and the commercial activity of its companies.  The adverse variance for the present financial year was currently predicted to be about £8.9m. One change since the last report was the introduction of two new Government funding streams: £500m for expenditure of which the Council’s allocation was £267,000, most of the allocation having gone to County Councils and Unitary Authorities. The second related to income losses. Councils will be expected to absorb losses up to 5%, with the balance compensated to the level of 75%. Eligibility for this has yet to be finalised but it is most unlikely to cover commercial losses and will only be available until 2021. So while welcome it will still fall short of the estimated £24 million o increased costs and reduced income  that the Council was forecasting for the next 4 year period.

For the Housing Revenue Account (HRA) there was an anticipated deficit of £2.2m, largely attributable to the consequences of Covid-19. There was no Government support for HRA related activity. 

In relation to capital, slippage had  increased by £24m from when last reported. This was largely accounted for by schemes which had been removed as no longer viable.

He drew attention to an increase in the costs (£423k) for the implementation of Aareon QL Housing Management Software. In relation to this there had had to be prolonged testing and increased consultancy fees. Progressing this project had been difficult. The company had been put on notice of an expectation of compensation for its part in the continually delayed introduction. The current focus, however, was on implementation by the latest anticipated go live date of October. It was noted that the Housing Company and Oxford Direct Services would also be dependent on Aareon QL and its delayed introduction was compromising their efficiency.

No Key Performance Indicators (KPIs) were included in this report, pending the imminent introduction of a new Council Business Plan with a revised set of KPIs.

Risks were recorded in relation to housing delivery; economic growth and development; and the ability to balance and deliver the financial plan. All of these had been significantly affected by Covid-19. In relation to housing delivery the Housing Company was reporting 9-12 month delays in its development projects.

The Chief Executive summarised the position about the extent of Government support in response to the consequences of Covid-19. The amount of funding promised for the present year would represent less than 50% of the costs to the Council and barely 20% of the anticipated costs over a four year period. This was significantly less than the Council  ...  view the full minutes text for item 44