Issue - meetings

To consider a joint report of the Head of Commercial Strategy, Business Innovation and Performance, Cheshire East Council, and the Director of Resources, Cheshire West and Chester Council, on the financial position at First Quarter Review 2013-14 for the remaining Shared Services

Consideration was given to a report which provided a summary of the financial position at First Quarter Review 2013-14 for the remaining Shared Services.

Details of the outturn projections for these Shared Services were shown in Appendix 1 to the Report.  It was noted that the Farms Shared Service and ICT Shared Service were currently forecasting significant budgetary variances. 

The Farm Shared Service was forecasting an total underspend of £0.287m, which was due to lower than expected farm maintenance costs in both Cheshire East and Cheshire West & Chester.  It was requested that a report on the farm maintenance programme be brought to a future meeting.

The ICT Shared Service was reporting a total forecast overspend of £0.418m before remedial measures (£0.524m) which would reduce the forecast outturn to an overall underspend of £0.106m.  The gross overspend was mainly due to the significant number of additional project hours (estimated 70,000 additional hours) that were expected to be commissioned by both Councils above the 40,000 guaranteed amount and the capacity of the ICT Shared Services Target Operating Model.    To deliver the additional work, external partner and external contractors would need to be engaged.  The hourly rate for external delivery was higher than the current income rate for project work, which was resulting in a forecast overspend of £0.524m.   The ICT Shared Services had prior approval, as part of its Target Operating Model to charge the market rate for additional project costs. 

RESOLVED:

That the overall first quarter financial review relating to Shared Services be noted.