To consider the Performance Report for Quarter 2 (2020/21) including Revenue and Capital Budget Monitoring report and to make any observations.
Members considered and discussed the Quarter 2 2020/Performance Report. This included the Key Performance Indicators (KPIs), Revenue and Capital Budget monitoring and the allocation of an additional payment of £0.054m in the capital programme for the Horley Pay-on-Exit parking to be funded through prudential borrowing.
Councillor V. Lewanski, Portfolio Holder for Corporate Policy and Resources, said that two KPIs were red rated. These were KPI 7 – Net affordable housing completions and KPI 10 – Recycling performance (Q1 2020/21 performance). The reasons for the red ratings were set out in the report but both were due to the pandemic. The report also contained figures on the Revenue Budget and Capital Budget with some detailed analysis. Councillor Lewanski thanked Councillor T. Schofield, Portfolio Holder for Finance, and the Finance team for their work in preparing this information.
Members asked questions and discussed the following points:
· Building Partnership Control – Members asked about the building partnership control with Tandridge and the budget for a financial shortfall of £197k. It was confirmed that the Council did not have to call on the budget this year. The Director of Place said she would provide a written response to Members giving more details.
· Revenue, Benefits & Fraud service – Members asked why this service was expected to make a net loss on traded services in 2020/21. This is a service that the Council provided to many of the districts and boroughs in Surrey. The Interim Head of Finance explained that there was a small deficit overall which was due to the impact of COVID-19 pandemic when resources were diverted from external work. The Interim Head of Paid Services confirmed that the service currently had 21 clients which included a mix of local authorities, housing associations and private clients. The team’s fraud work in particular saves the Council significant amounts of money, for example, checks were carried out on everyone applying to go on the housing register or who were homeless. Over three months, the team has been awarded four new client contracts, with a number of older contracts currently being renegotiated.
· Underspend this year – Members noted that there was a forecast substantial net budget underspend this year (£1.713m) mainly because the Council had not made as many capital investments or borrowing as expected, and the headroom contingency budget was expected to be underspent. This was a positive position and more than offset the unfunded Covid-costs, which were forecast at £0.613m. Also, it was noted that the uncollected council tax collection rate was down by 1.37 per cent or £1.7m which was considered good in these times.
RESOLVED – that:
(i) the Key Performance Indicator performance for Q2 2020/21 and the observations of the Committee be noted for the Executive;
(ii) the Revenue and Capital Budget position at Q2 2020/21 and the observations of the Committee be noted for the Executive;
(iii) the recommendation of the Executive to Council of the allocation of an additional payment of £0.054m in the capital programme for the Horley Pay-on-Exit parking to be funded through prudential borrowing be noted.