Agenda item

To consider the financial monitoring position as at 31 December 2021 (Quarter 3 2021/22).

Resolved:

1.1 Note the financial monitoring position as at 31 December 2021 (Quarter 3 2021/22) and refer the report to the Budget and Corporate Scrutiny Management Board for consideration and comment.

1.2 Note the projected financial position; services are projecting an

overspend of £5.233m against allocated budgets and an underspend of £7.822m after adjusting for the movement on reserves, use of corporate resources and the application of centrally held Covid-19 grant funding.

1.3 Approve the  budget virements above the higher of £0.250m or 1% of the Gross Budget of the service area, as outlined in the report.

1.4 Approve the following changes to the council’s capital programme: - £0.400m to be added into the 2022/23 capital programme in relation to the West Bromwich Town Hall Quarter project within Borough Economy. These resources are essentially match funding for the larger Towns Fund project.

A virement of £0.068m in 2022/23 from the Blackheath Library project within Borough Economy to further contribute match funding towards the West Bromwich Town Hall Quarter project mentioned above.

Consideration was given to the financial monitoring position as at 31 December 2021 (Quarter 2021/22) and the projected financial position.

Approval was sought to a number of  budget virements and changes to the Council’s capital programme. 

             The Chair of the Economy Skills Transport and Environment Scrutiny Board questioned whether the Council would consider undertaking an external review of the property maintenance account and the way in which this operated. In response, the Cabinet Member for Finance and Resources stated that the Scrutiny Board was reviewing the workings of the Property Maintenance Account and were meeting with officers imminently.

In response to the question raised by the Chair of the Economy Skills Transport and Environment Scrutiny Board regarding the date for the competition of the refresh of the corporate Medium-Term Financial Strategy, the Cabinet Member for Finance and Resources stated it was aimed to be completed by the end of June.

Reason for Decision

Section 151 of the 1972 Local Government Act required the Chief Financial Officer to ensure the proper administration of the council’s financial affairs. Budgetary control, which included the regular monitoring and reporting of budgets was an essential element in discharging this statutory responsibility.

Alternative Options Considered

There were limited decisions within the recommendations, Cabinet could vary the proposed transfer of Covid funding to the Sandwell Children’s Trust or the requested virements within Public Health which reflect increases in the available resources since the 2021/22 budgets were approved.

Agreed:-

(1)     that the financial monitoring position as at 31 December 2021 (Quarter 3 2021/22) be noted and referred to the Budget and Corporate Scrutiny Management Board for consideration and comment;

(2)     that the projected financial position and where services are projecting an overspend of £5.233m against allocated budgets and an underspend of £7.822m after adjusting for the movement on reserves, use of corporate resources and the application of centrally held Covid-19 grant funding be noted;

(3)     that the following budget virements above the higher of £0.250m or 1% of the Gross Budget of the service area be approved:

(4)     that the following changes to the Council’s capital programme be approved:-

         £0.400m to be added into the 2022/23 capital programme in relation to the West Bromwich Town Hall Quarter project within Borough Economy. These resources are essentially match funding for the larger Towns Fund project.

         A virement of £0.068m in 2022/23 from the Blackheath Library project within Borough Economy to further contribute match funding towards the West Bromwich Town Hall Quarter project mentioned above.

[Councillor Simms left the meeting for duration of this item]