Dan Kirwan, Assistant Director Finance and Investment introduced the report of the Director of Finance and Investment (S151) that provided a summary of the projected year-end revenue and capital positions as at Quarter 1, 2019/20 (June 2019). The report informed that regular monitoring and reporting of the Revenue Budgets, savings achievements, medium term financial strategy (MTFS) position and the Capital Programme enabled decisions to be taken faster that may produce revenue benefits and improve financial control in Wirral Council. The content of the report was presented to the Cabinet at its meeting on 2nd September 2019. It was noted that was the responsibility of Cabinet to monitor and make decisions on budgets and that Scrutiny Committees had a responsibility to scrutinise the decisions of Cabinet.

The Assistant Director Finance and Investment informed that the report had been produced to provide assurance to the Audit and Risk Management Committee that officers were monitoring and forecasting regularly and that any risk of an adverse forecast was being mitigated.

The Assistant Director Finance and Investment further informed that the year-end revenue forecast recorded as part of June’s financial monitoring activity represented an adverse variance from budget of £4.327m. He added that plans were, in some cases, in place to mitigate the overspend whereas in other areas these were still undergoing development. Due to the Council’s financial position, an adverse budget variance was not viable and Corporate Directors would be supported to ensure that a balanced budget will be achieved by the year-end.

Members were also apprised of progress in respect of the Capital Programme for 2019/20 as at the end of June 2019. The 2019/20 Capital Programme of £88.3 million was inclusive of re-profiling, additional funding requirements and grant variations identified since February 2019. Expenditure to date was £2.9 million.

The Assistant Director Finance and Investment informed the Audit and Risk Management Committee of the year-end adverse forecast position, as at Quarter 1, of £4.327 million above budget, savings proposed for 2019/20, revisions to the Medium-Term Financial Strategy 2020-2025 and details of the Capital expenditure position as at Quarter 1 of £2.9 million.

The Assistant Director Finance and Investment informed that more recent forecasts had shown improvements, but there was still further work to be done. In response to a question from the Chair regarding the Audit and Risk Management Committees role to receive assurance and to oversee actions to be taken, he informed that significant finance challenges had been passed to individual directorates and would be reported back to the Committee.

Resolved –

That in respect of the Quarter One Revenue and Capital Budget Position for 2019/20

Revenue

1)  the year-end adverse forecast position, as at Quarter 1, of £4.327 million above budget, be noted;

2)  the savings proposed for 2019/20, be noted;

3)  revisions to the Medium-Term Financial Strategy 2020-2025, be noted; and

Capital

4)  the expenditure position as at Quarter 1 of £2.9 million, be noted.