Issue - meetings

Second Financial Review of 2024/25 (Environment and Communities Committee)

Meeting: 27/11/2024 - Environment and Communities Committee (Item 5)

5 Second Financial Review of 2024/25 (Environment and Communities Committee) pdf icon PDF 609 KB

To receive a report on the current forecast outturn for the financial year 2024/25 based on income, expenditure and known commitments as at the end of August 2024. It also identifies actions that are being taken to address adverse variances to urgently address financial sustainability.

Additional documents:

Minutes:

The committee received the report which provided the current forecast outturn for the financial year 2024/25 based on income, expenditure and known commitments at the end of August 2024. The report also identified actions that were being taken regarding adverse variances to urgently address financial sustainability.

 

Paragraph 28 of the report stated that any directorate identified as being off target by more than 5% was now subject to a detailed finance and performance review on a weekly basis through a financial recovery review process. It was queried why this was set at 5% and whether a lower percentage would be more beneficial in addressing overspend.  It was agreed that a written response would be provided.

 

Paragraph 85 of the report referred to the cost of short-term borrowing which was expected to reduce with falling interest rates. A request was made for more information about interest rates, and what had been built into the forecasting, to be shared with the committee. Officers undertook to provide this detail in a written response.

 

A further query was raised regarding the graphs on page 24 of the agenda which referred to weekly trends in finance monitoring for Adults Services with regard to distinct clients and total weekly costs. It had been noted that there appeared to be a drop in the number of clients during summer but it was not clear why there was no corresponding reduction in weekly costs. Officers undertook to provide a written response.

 

RESOLVED (unanimously):

 

That the Environment and Communities Committee:

 

  1. Review the factors leading to a forecast adverse Net Revenue financial pressure of £20.1m against a revised budget of £395.4m (5.1%). To scrutinise the contents of Annex 1, Section 2 and review progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts, and to understand the actions to be taken to address any adverse variances from the approved budget

 

  1. Review the in-year forecast capital spending of £157.7m against an approved MTFS budget of £215.8m, due to slippage that has been re-profiled into future years

 

  1. Note the available reserves position as per Annex 1, Section 5

 

  1. To delegate to the Interim Director of Environment and Neighbourhood services to undertake all necessary steps to enter into a grant funding agreement with The Mersey Forest in order to accept a Trees For Climate grant offer of £647,173.91 for woodland creation at Buttertons Lane Farm