Agenda item

That the report be noted.                                                

The Corporate Finance Manager introduced a report to provide Members with the Revenue Budget Monitoring 2013/14 (Month 11) information for the Council Fund and Housing Revenue Account (HRA) which was being submitted to Cabinet on 13 May 2014. 

                        For the Council Fund, the projected net in-year expenditure was reported to be £2.215m less than budget, which was an increase of £0.064m on the £2.151m reported at Month 10.  This was reflected in the table at paragraph 3.01 and the movements from Month 10 in Community Services, Environment, Lifelong Learning, Corporate Services and Central & Corporate Finance were summarised in Appendix 1. 

Progress on the efficiencies included in the 2013/14 budget was detailed in paragraph 3.05, which currently indicated that £4.270m of the £5.331m (80%) would be achieved, resulting in a net under-achievement of £1.061m; the full details were provided in appendix 9.  

On the issue of inflation, the Corporate Finance Manager explained that to date only the amounts in respect of the pay award and food costs had been allocated out to service areas.  With regard to energy costs these would continue to be closely monitored, although at this stage it appeared that all of the allocation would be required and was reflected in the projected outturn.  Section 6 and appendix 7 provided details of the unearmarked reserves and indicated that the current projected level of the contingency reserve at the end of March 2014 was £4.901m. 

                        The HRA was projected to have an overall underspend of £0.171m for 2013/14 and a projected closing balance at Month 11 of £1.605m, which at 5.61% of the total expenditure, satisfied the prudent approach of ensuring a maximum level of 3%; full details on the significant variances in the HRA were included in appendix 8. 

One carry forward request had been received for £0.085m for costs that had been scheduled for 2013/14 but would now fall into 2014/15. 

                        In response to a question from Councillor Haydn Bateman about the write offs in Central Services due to the higher than anticipated presentation of out of date cheques, the Corporate Finance Manager explained that when cheques that had been raised against a specific service area had not been cashed after six months they became invalid and the relevant amount written back into the accounts within Central and Corporate.  If a reissue of the cheque was subsequently required, the expenditure would be re input against the Central & Corporate Finance area. 

Following a further question the Corporate Finance Manager advised that the word ‘demand’ had been omitted from the third bullet point under the Community Services Section on appendix 1. 

Councillor Ian Dunbar queried whether the amount for the works undertaken on the former Euticals site in Sandycroft was the final cost and asked whether there would be any benefit to the Council once the issue had been concluded.  He also queried what percentage of monies had been lost by the Council due to the issue of obtaining a refund from Landsbanki.  The Chief Executive explained that the Council was looking to recover as much of the cost of the works on the former Euticals site from the sale of the site.  It was now in the ownership of the Council and the approximate value was £0.400m.  The figures reported for the works were not final and a timetable had been identified but it would be a period of a few months before the site was completely cleared.  However, most of the dangerous items had now been removed and updates on the progress being made would be reported to Members in the future.  On the issue of Landsbanki, the Corporate Finance Manager advised that details had recently been provided to Member and that although he did not have the details with him today he would respond direct to Councillor Dunbar.  He also referred to paragraph 5.03 and advised that a final accounting adjustment would be undertaken in Month 12 and would be reported accordingly. 

Councillor Haydn Bateman sought clarification on the amount of £0.058m for screening which was reported in appendix 8; the Corporate Finance Manager advised that he would provide the details following the meeting. 

Councillor Peter Curtis requested that the text on some of the appendices be larger to make it easier to read.  In referring to residents who required permits to allow them to take their vans to the Council’s Waste and Recycling sites, he asked why there was a need for them to take the vehicle to Alltami depot for inspection after they had produced their log book at the Flintshire Connects office.  The Chief Executive advised that he would make enquiries and would report back. 

In response to a query from Councillor Haydn Bateman about an expected reduction in the costs for the leachate treatment plant, the Corporate Finance Manager advised that he would provide an update to Councillor Bateman following the meeting. 

Councillor Paul Shotton asked about the review of the rebate on the Matrix Contract which had been undertaken and requested further information on the decrease in Agency staff usage.  The Head of Human Resources and Organisational Development explained that when the contract commenced four years ago, the costs for agency usage had been significantly higher.  However, through collaboration, the numbers of agency staff required had reduced and therefore the procurement savings had also reduced. 

On the issue of licences for van permits to allow usage of waste sites, Councillor Richard Lloyd raised concern about fly tipping in the Saltney area following the closure of the sites at Saltney and Queensferry and asked that consideration be given to allow owners of vans to use the Sandycroft site.   

The Chief Executive advised Members that following the decision taken at the County Council meeting on 25 March 2014 about the new Senior Management Structure, the Head of Finance would be leaving the authority at the end of June 2014.  The Corporate Finance Manager would become the Chief Finance Officer and Section 151 Officer and would be line managed by the Head of Human Resources and Organisational Development  in her new role as Chief Officer (People and Resources), and he would work closely with the Chief Executive, Chief Officer Team and Cabinet on Strategic Finance issues.

RESOLVED:

That the report be noted.