Agenda item

Members considered the report of the Deputy Chief Executive and Chief Finance Officer updating the Members on the Council’s performance against Corporate Plan Priority actions, indicators and financial targets for 2013/2014.

The committee considered Appendix 1 containing information regarding quarter 1 activities and outturns of the performance indicators listed within the Corporate Plan which had been broken down into the 4 theme chapters. A summary table at the beginning of each chapter’s data showed the number of indicators on and off target.

Each project had been allocated a number of in-year actions and milestones to be completed in order to progress the project efficiently.  The specific milestones for Quarter 2 were set out in the actions report in Appendix 1 and details of the milestones for the whole year were available on Covalent and could be supplied on request.  The first section of Appendix 1 lists all Corporate Plan priority actions whose in-year milestones had fully completed this year.

Members noted that of the 33 Key Performance Indicators reported in the Corporate Plan this quarter, 5 were currently showing as “Red,” 17 were showing as “Green,” 3 were showing as “Amber” and 8 were “data only” or contextual PIs.  The off target PIs were;

• ECSP_004 Violent crime in a public place
• TL_014 Towner visitors
• CD_055 Number of completed adaptations
• CD_056 Average number of days for assistance with adaptations
• CS_011 Telephone call abandonment rate

The Senior Head of Infrastructure provided the committee with an update of the Waste Contract performance, following the briefing at the previous meeting.  Members noted that the Council were exceeding the targets for recycling.  Bin delivery and collection required additional work.  The call abandonment rate and targets for answering calls was improving.

Members noted that the position to the end of September showed a variance of £78,000 on service expenditure which was a movement of £102,000 compared to the position reported at the end of the first quarter in June. Service expenditure had a variance of £182,000 mainly as a result of:

-          Refuse Collection Contract savings  (£80k)

-          Housing Benefits Subsidy and overpayments recovery (£30k)

-          Cremation income over target (£40k)

-          Cremation gas savings from installation of new cremators (£53k)

-          Grounds maintenance additional cost of contract dispute £105k

-          Revenues and Benefits additional costs of £71k

-          Council Tax summons income below target £37k

-          Shortfall in Catering income of £100k

-          Shortfall in income and additional costs at the Bandstand 28k

This service overspend was off set by the saving on the contingency fund.

The contingency allowance currently stood at £208,409 and had been used to offset service expenditure. Therefore there was no further funding available for any future unforeseen one off areas of expenditure during the year.

The projected outturn showed a negative variance of £58,000. This was within 0.34% of the net budget and was within an acceptable tolerance level. However management continued to manage this position to ensure that this final position was achieved.

Financial procedure rules require all virements requests over £10,000 for revenue expenditure to be approved by Cabinet. Virement requests are set out at Appendix 3.  The General Fund item was required to formalise the budget transfer of a post between two services areas.

Transfer from reserves were also set out in Appendix 3. These transfers were in line with the approved financial strategy

HRA performance was currently above target due to an increase in service charge income less several areas of minor over spends which were being carefully monitored.  The current spend on the under occupation scheme indicated a potential overspend for the year of £60,000 due to the increase in the number of property transfers taking place. It was proposed to offset this additional cost from the extra income received from service Changes.

A prudent increase in the provision for bad debts was included in the budget to offset any effect of the new benefits regime. Whilst rent collection performance for the quarter had remained at prior year levels, the introduction of universal credits and the benefits cap might impact on this position later in the year. This was carefully being monitored and any reduction in the provision would be reflected at quarter three.

The detailed capital programme was shown at Appendix 4. Actual expenditure was low compared to the budget, due to delays in the start dates of housing major projects, sheltered accommodation remodelling projects and several general fund projects. Expenditure was expected to increase as schemes progress however the spending patterns would be reviewed at quarter three and re-profiled into 2013/14 year where appropriate.

The capital programme had been amended from that approved by Cabinet in September to reflect new approved schemes.

The report further detailed activity in Collection Management, Treasury Management, Interest Rate forecast, the Council’s Annual Investment Strategy and Investment Performance.

NOTED.