Agenda item

To note the revenue and capital forecast variances from budget for 2016-17 for the Strategic & Corporate Services Directorate based on the July monitoring to Cabinet

The Committee received a report setting out the position for the Strategic and Corporate Services Directorate.  The report was introduced by the Deputy Leader and Cabinet Member for Finance and Procurement who explained that the format of the report had not yet been updated owing to the early scheduling of the Committee’s meeting.

Jackie Hansen, Strategic and Corporate Services Finance Business Partner, spoke to the item and, in particular, referred to the following:

1. That although the format was not fully amended this was the first monitoring report based on new outcomes as set out by Cabinet.  Therefore the financial table in the report set out the net variance, the previous reported position, any movements since and the latest position.  The figures were also more up to date than the Committee had previously received.
2. Overall the Strategic and Corporate Services Directorate was in a strong position and was reporting a good underspend.  However an overspend of £513k was reported in the Property division where an aspirational savings target was in place for asset utilisation.  It was explained that this was a complex saving to deliver as it involved both service delivery and logistical decisions some of which would be made outside of the Property team.  Of the budgets that were within the direct control of the Strategic and Corporate Services Directorate an underspend of £865k was currently reported.
3. The Finance and Procurement Division had reported an underspend of £350k largely as a result of new income generating opportunities. The Policy Division had reported an underspend of £236k partly as a result of in-year staffing savings and partly from new income from the National Health Service. The Engagement, Organisation Design and Development Division had reported an underspend of £252k largely as a result of staff vacancies.
4. That £2.1 million of the Member Grant fund was currently committed, leaving £890k uncommitted.  Members had reported that they intended to spend the remainder of the fund within the financial year.

The item was opened for discussion and the following responses were received to comments made and questions raised by Members:

1. That the Local Democracy budget line consisted of three main areas:  The Member Grant Fund of over £3million; the annual payment to the election reserve of £570k; and the partnership arrangements with District level authorities.
2. That the Democratic and Members’ Services’ budget line consisted of the cost of the Democratic and Members’ Services’ Support teams and Member allowances.
3. That the Engagement, Organisation Design and Development (HR, Communications and Engagement) budget line included the costs of KCC’s Human Resources Division, Internal and External Communications teams and the Engagement and Consultation teams.  It was also confirmed that this budget line, and not the Democratic and Member’ Services’ budget line, included the costs of the Council’s Community Engagement Officers. 
4. That procurement work with West Kent CCG had helped to create reported underspends.  It was envisaged that such work would continue in future years and would be included within budget projections. Ms Hansen also reported that the unbudgeted projected income from the NHS related to costs recoverable for project work being undertaken by KCC’s Policy team and commissioned by the NHS.
5. An example of a partnership arrangement, referred to in (i) above, was the cost of providing financial incentives to district councils to improve the Council Tax collection rate.

It was RESOLVED that the report be noted.