Report of the Executive Member for Corporate Direction and Governance; and the Deputy Leader of the Council.
The Executive Member for Corporate Governance and Direction, Councillor Lewanski, presented the report, on the Council’s performance for Quarter 4 (January to March 2020). Of the 15 Key Performance Indicators reported during the quarter, 11 were on target or within the agreed tolerance. The Council’s KPIs for 2020/21 had been updated to ensure that they continued to be robust and demonstrated performance against key corporate objectives. Eleven strategic risks were presented to the Executive for approval and subsequent reporting to, and monitoring by, the Audit Committee.
Councillor Schofield, Executive Member for Finance and Deputy Leader of the Council, reported on the Council’s financial performance for Quarter 4. The Council had been impacted by several financial challenges in 2019/20 however, due to prudent financial management, overall financial performance had not been negatively impacted. Those challenges included the delay in reopening the Harlequin Cinema, DWP Housing Benefit Administration Grant reductions, service development pressures in the Finance Team and the emerging impacts of the global pandemic.
The provisional outturn for Service budgets was £0.47m (3.5%) higher than the approved budget; the overall provisional outturn including Central Items was £2.09m (11.9%) lower than budget. The net provisional outturn underspend of £2.09m, was recommended to be transferred to Earmarked Reserves initially to help address unfunded COVID-19 budget pressures with any unspent balance allocated to build up funds in anticipation of the next Pension Fund Revaluation in 2022.
Significant progress had been made on major capital projects which supported the delivery of the Council’s objectives. The 2019/20 Capital programme provisional outturn was £18.96m compared to the approved Budget of £49.11m; the £30.15m variance was 61% below the approved programme for 2019/20. The variance comprised £29.74m slippage and an £0.41m underspend.
The Overview and Scrutiny Committee had reviewed the report at its meeting and had welcomed the Council’s approach to supporting rough sleepers and homelessness during the crisis. The Executive acknowledged the comments made by the Overview and Scrutiny Committee; and in response to questions from a Visiting Member, The Leader explained:
· That the Council would continue to address the causes of homelessness, working with partners, through its housing strategy
· That the Council’s Recovery Plans demonstrated that the Council would continue to look to deliver services in a SMARTer way, which included working with the voluntary sector.
· That the recovery workstreams also provided for engagement with the Local Enterprise Partnership, and partners in the Gatwick Diamond, to mitigate the impact of COVID-19 on employment at the airport.
1. To note the performance and risk management update for the fourth quarter of 2019/20
2. That the provisional Revenue Budget outturn position for 2019/20 and the transfer of £2.086 million unspent resources to General Fund Reserves be approved
3. That the provisional Capital Programme outturn position for 2019/20 and the carry-forward of £29.491 million of approved Capital Programme resources to 2021/20 be approved
4. To approve the new KPIs to be reported on for 2020/21 as detailed in section 5 of the report
5. To approve the new strategic risks for 2020/21 as detailed in section 6 of the report.
Reason for decision:
To consider performance and risk management for 2019/20 and 2020/21, as well as to advise Members of the provisional Revenue and Capital expenditure for 2019/20.
Alternative options: None.