The received and noted a report that introduced the Quarterly Budgetary monitoring report for Quarter 2 (September 2018). It included details of the Capital and Revenue outturn position, the projected position of the Housing revenue account and outlined progress being made against Savings targets.  The Council it was noted has a duty to achieve Best Value in terms of economy efficiency and effectiveness in the delivery of its services and the expenditure of its resources. The report detailed that the expenditure of the money will be based upon competitive exercises performed either individually or through the use of pre-existing framework agreements.

The main points of the discussion may be summarised below:

The Committee:

·         Noted that the Council could choose to monitor its budgetary performance against an alternative timeframe but it is considered that the reporting schedule provides the appropriate balance to allow strategic oversight of the budget by members and to manage the Council’s exposure to financial risk. More frequent monitoring is undertaken by officers and considered by individual service Directors and the Council’s Corporate Leadership Team (CLT) including approval of management action.  However, the view was expressed that there was a need for a clearer explanation of the budgetary performance for there to be a clearer comprehension;

·         Noted that the additional funding streams from Government will be set out so that it is clear where the funding has been spent e.g. winter pressures and adult social care;

·         Noted that the Council is required to make arrangements for the proper administration of its financial affairs.  Accordingly, the Council’s chief finance officer has established financial procedures to ensure the Council’s proper financial administration. These include procedures for budgetary control;

·         Noted that regarding investments the Council has worked on this in a co-ordinated fashion that has meant that an above the rate of inflation return of 3%-4% has been achieved; and

·         Noted that Lewisham Council have developed a new way to scrutinise the budgetary process and details would be made available to the Committee.

The Committee is asked to note and comment on the contents of the attached report that is to be considered by the Cabinet at its meeting to be held on Tuesday 27^th February, 2018.

(Time allocated – 20 minutes)

The Committee received and noted a report that indicated in February 2017 the Council had agreed a General Fund (GF) revenue budget of £338.9m and a Capital programme of £216.2m (GF £103.1m, £113.1m Housing Revenue Account (HRA) for 2017-18). This report details the projected outturn position for 2017-18 based on information as at the end of Period 9 (December 2017). The report includes details of (i) General Fund (GF); Revenue Budget Position (ii) Housing Revenue Account (HRA); (iii) Budget Position; (iv) Progress delivering 2017-18 Savings (v) Progress delivering Council Growth Priorities, including Mayoral Priority Growth (vi) Council Tax and Business Rates Income (vii) Treasury Management Activities and (viii) Pension Fund Investments Position.  The questions arising from the discussions on this agenda item may be summarised as follows:

The Committee:

·         Welcomed the new format for the report;

·         Asked that they be provided with clarification on the reason for the £0.4m underspend in Substance Misuse Services? Accordingly it was agreed to add this question to the list for submission to the next Cabinet on the 27 th February, 2018; 

·         Noted that with regard to the Pension Fund the overall fund value has increased by £99m £1,489bn;

·         Was informed that the £10.5m spend in Children’s Services is a result of the spending needed after Ofsted;

·         Was pleased to note that every child eligible for Free School Meals would now have to register;

·         Wanted to know if the Housing Community Benefit Society is likely to work with the Council on acquisitions of affordable housing during 2018/19. It was therefore agreed to add this question to the list for submission to the next Cabinet on the 27^th February, 2018; and

·         Asked if the £190m in Affordable Housing had been spent since it was last considered at Scrutiny in December? It agreed to add this question to the list for submission to the next Cabinet on the 27^th February, 2018.