Agenda item

Councillor Elliot introduced the financial outturn report for 2018/19. It is provisional as the financial outturn report is yet to be finalised and scrutinised by Audit. The final outturn with audit opinion will be reviewed and approved by the Audit Committee on the 18 July.

In summary, the financial outturn report details that DBC has on the revenue finances delivered: a balanced outturn position against the approved budget for the general fund and that the HRA has delivered an operating underspend of £235k.

In regards to the capital budget, the general fund capital programme has slipped £4m in the final quarter 4 and this relates predominantly to small timing differences in 3 major capital projects such: Housing Grant payments to Housing Associations for the delivery of affordable homes, £2.1m. Berkhamsted multi storey car park £15m and Tring swimming pool completion £0.3m - This project is now completed.

The HRA capital programme has slipped by £1.5m predominantly due to; slight delays in Stationers Place project, and a reduction in commissioned capital works of £0.9m. This is as a result of a £465k gain share payment form Osbornes and a well targeted replacement programme reducing the need for additional works.

This week External Audit conducted their review for the outturn and there were no new issues.

Councillor Tindall referred to paragraph 6.1 on page 16 and asked for a likely timescale of the garage stock condition survey. N Howcutt advised that it had now been procured but wasn’t sure of the timescale so he would find out and let him know.                                                                                            Action: N Howcutt

Councillor Tindall noted that there was a difference of £57k on premises and asked what it referred to. N Howcutt advised it was small amounts across different premise areas on Housing and Community and he said it was difficult to highlight every variance. He offered to circulate a breakdown but Councillor Tindall suggested it was only necessary if it was a significant amount.

Councillor Claughton referred to paragraph 5.4 regarding recyclable materials and asked if we anticipated how much bigger this problem could become. N Howcutt advised we didn’t anticipate as much of an impact in 19/20 but it was susceptible to fluctuations. He said we were fortunate though to work as a group with Hertfordshire waste services.

Councillor Adeleke referred to paragraph 4.1 regarding recruitment and asked what level of vacancies we had now. N Howcutt advised that finance were now fully staffed at present. In terms of the internal audit plan for 18/19, all finance reports received a full commendation from internal audit which gives him the full confidence that staff are performing to the top of the market. In terms of reports they produce there isn’t huge variations quarter on quarter which proves that financially they’re monitoring in an effective and suitable manor. Equally the comments received from internal and external audit were very positive. The other difficulty was recruiting for senior positions, however all posts have been filled in the last year.

Councillor Chapman referred to paragraph 5.4 on page 15 and noted he had asked at the previous meeting if there was a possibility of working alongside other local authorities to look at the recycling of glass. He asked if this would be considered in the future. N Howcutt advised there was a waste consultation paper out by Government in March which we had submitted our response to. He said we will wait and see how the consultation exercises go but we are very happy to do all the proposals they set out. He added that glass was very profitable but was unfortunately a small percentage of our recycled products, with plastic being the highest percentage.

Councillor Claughton referred to paragraph 5.5 and sought clarification on the income reduction of £180k in the commercial waste service. N Howcutt advised that a report had been done on our commercial waste service to look at how we change the service and that report will be going to various groups in July/August. He explained that commercial waste doesn’t cost the council or the tax-payer anything, it just isn’t achieving the profit levels that are in budget at present.

Councillor Townsend referred to Appendix A, finance and resources by month column. He queried if there was any commentary on the -£4.728m variance. N Howcutt explained that within finance and resources there were two significant parts of our business; one is revenues and benefits and the other is third party payments for revenues and benefits which is around £40m but this fluctuates throughout the year and then we get large grant payments at year end. He advised that the actuals within the provisional report don’t really tell you anything but he said he was more than happy to go through it in more detail with him. Councillor Townsend said it was a large variance and felt it should be more detailed. N Howcutt explained that the budget constantly changes every month and every time you have a variance so it wouldn’t make sense.

The Chairman queried if ‘third parties’ related to contractors. N Howcutt explained it related to specific contracts we have with set organisations to deliver certain services.

The Chairman referred to paragraph 9.3 regarding the slippage on the HRA new builds and asked for more detail. N Howcutt said slippage does happen in capital projects because of the nature of the work and explained there had been an overspend at the Martindale site and Stationers Place had been delayed due to a third party wall. He said capital at year end is most vital so going forward they will be making sure they profile the capital spend more appropriately.

Outcome

The report was noted.