Subject

Reviewing Our Financial Performance
The outturn position needs to be seen in the context of the Council’s medium term financial position as set out
in the February Council budget report. The Council currently has a funding gap of £966,000 in 2017/18 and
£2,711,000 in 2018/19. The scope of management efficiency savings and for savings on major contracts is also
much reduced. Balancing the budget therefore becomes much more about generating income, in particular
business rates and New Homes Bonus.
The table below shows spend against budget for our service departments:
8
Actual
Spending
2015/16
Over/
(Under)
spend
2015/16
Service
Budget
2015/16
£’000 £’000 £’000
Commissioning & Customer Contact 5,808. 4,782. (1,026)
Economy & Communities 2,194. 1,985. (209)
Resident Services 885. 639. (246)
Planning 883. 911. 28.
Environmental Health 473. 434. (39)
Support Services 4,538. 4,221. (317)
Strategic Management and Policy 863. 752. (111)
Other Services 2,282. 2,244. (38)
Total Service Expenditure in Cabinet Report 17,926. 15,968. (1,958)
Adjustments between accounting and funding basis not included in
(31) 2,342. 2,373.
above services
Cost of Services in Comprehensive Income & Expenditure
Statement (CI&ES) (see page 23)
17,895. 18,310. 415.
Operating expenditure 1,245. 3,879. 2,634.
Financing and investment (255) 1,374. 1,629.
Revenue support grant (2,929) (2,929) 0.
Business rates (5,053) (6,650) (1,597)
New homes bonus (2,823) (2,823) 0.
Council tax freeze grant (158) (158) 0.
Council tax (7,032) (7,032) 0.
Other taxation & non-specific grants (953) (909) 44.
(Surplus)/Deficit on Provision of Services in CI&ES (see page 23) (63) 3,062. 3,125.
Transfers (to)/from earmarked reserves (439) 2,341. 2,780.
Adjustments between accounting and funding basis 444. (5,644) (6,088)
(Increase)/Decrease in General Fund (58) (241) (183)
General Fund brought forward 1 April 2015 (5,124) (5,124) 0.
General Fund carried forward 31 March 2016 (5,182) (5,365) (183)
The above table shows how the increase in the General Fund of £241,000 shown in the Movement in Reserves
(page 22) compared to the budget. Our policy is to maintain a balance of at least £1.5 million in the General
Fund. The balance of £5.4 million represents 30% of the cost of services budget for 2015/16, and is therefore
at an adequate level.
The table below explains the major differences between the budget forecasts and the actual money spent and
income received:
Reason for Budget Variance £’000
Additional Income (1,155)
Procurement/Shared Service Savings (435)
Staff Vacancies (279)
Delayed Projects (232)