The Committee is asked to consider the Financial Management Report - Third Quarter 2021/22.

The Leader and Cabinet Member for Finance introduced the report which set-out the revenue and capital outturn position for 2021/22.  The report was based on service activity up to the end of December 2021 and was collated from monitoring returns from budget managers.  The Cabinet Member for Finance said there was an underspend of £99k and this could be a larger underspend by the end of the year.  The total expenditure due to the Covid-19 Pandemic was expected to be £679,000.  He referred Members to Table 1 and Appendix I which showed variances over the budget, and areas of underspend and the net impact on the revenue accounts was less than it might have been.  The Leader reminded Members of the Covid-19 Pandemic contingency fund of £1million, but as listed in paragraph 3.9 of the report, only £289,856 had been used.  The balance would go into the General Fund.  The balance from the Budget Contingency reserve would also go to the General Fund.  The Cabinet Member for Finance referred to the compensation given to bus companies as a result of the disruption to their services during the Spirit of Sittingbourne scheme.  He said that the funds for this had come out of the revenue budget for 2021/22, but on reflection this was not considered to be appropriate and so the funds would come from the Kent Pool Economic Development Business Rates reserve instead. 

The Cabinet Member for Finance referred to paragraph 3.7 of the report and highlighted that there was still a balance of £136,000 in the Improvement and Resilience Fund and £243,000 in the Special Projects fund.  At the Extraordinary Cabinet meeting on 13 April 2022 a full list of funds allocated would be reported to show the final balance for those funds.  He gave an update on the Capital Programme and concluded by saying that the revenue balance included £198,000 from Government for losses made previously on sales and fees and charges.  The Cabinet Member for Finance considered the Council was in a ‘pretty good place’.

Members were invited to make comments on the report.

The Cabinet Member for Finance responded to questions and explained that the underspend of £99,000 had been compensated by income of £198,000; that the Covid-19 Recovery Fund had been used to fund cost pressures over the year, which included repairs to The Swallows Leisure Centre roof; and he confirmed that reserves were being looked at and if they had not been used, they were transferred to the general fund.

The Director of Resources responded to questions and explained that, on Table 4, the funding for the Faversham Reach Footpath was a longstanding agreement with KCC; and that the Milton Creek access road was funded in parts where it had not been planned to be funded by the developer.

Members were invited to make comments on the appendices.

The Director of Resources clarified some points for Members.

The Chairman thanked the Leader and Cabinet Member for Finance and the Director of Resources for attending the meeting for this item.

Resolved:

(1)      That the report be noted.