Agenda item

The Director of Finance and Resources (Section 151) introduced a report that provided an update on the provisional financial position of the Council’s Revenue Account for 2019-20 financial year.

The 2019-20 approved net budget for the Council was £108.781 million.  The provisional total net expenditure was £108.731 million.  This gave a provisional surplus of £0.050 million, which was £2.304 million more favourable than the previously forecasted projections reported at the last quarter.

The Housing Revenue Account (HRA) provisional outturn position was £38.828 million against a provisional income of £35.980 this resulted in a provisional net deficit for the HRA of £2.848 million.  The deficit would be made up by a planned contribution from the housing reserves.  It was explained that the HRA was a statutory ring-fenced account and any balances at the end of the year had to be carried forward within the account to the next year. 

The Chair invited Members to comment and ask questions.

During the course of the discussion, the following points were raised:

• Clarification was sought regarding the relationship of the Children’s Trust and the Council.  It was explained that the Children’s Trust was an independent company established by the Department for Education (DfE) to run children’s services.  When the Trust was initially set up the Council had provided two months funding in advance, which meant that the Trust now owed a liability to the Council.  The Trust had indicated that it would find it very difficult to repay this debt at contract end, due to finish in October 2021.  The Council had entered into discussions with the DfE concerning the financial liability.  It was the Council’s view that the Trust was an independent company set up by the DfE; therefore any outstanding debts at contract end should be met by the Secretary of State for Education.  Members were assured that they would be updated on this matter on a regular basis. 
• A Member requested some information regarding the Council’s current spend on: bus service provision in Slough, and adult learning and skills.  The Interim Head of Financial Management agreed to circulate this information to the Committee.
• Members were informed that a Council Budget Book had been published to the Council’s website.  It was agreed that a link to the webpage would be circulated to the Committee.
• Information regarding the number of Section 106 write-offs was requested.  Members were informed that no Section 106 funding had been written-off and monies were always used within the specified timescales. 
• In relation to Slough Children’s Trust it was reported that officers held discussions with the Trust regularly to monitor and scrutinise budget spends.  It was noted that the services of the Trust were demand led and there was a concern that following the lifting of the lockdown restrictions there may be an increase in the number of safeguarding referrals. 
• It was asked what steps were taken to minimise the number of debts ‘written-off’ by the Council.  It was explained that a pragmatic ‘holistic’ approach was adopted to work with debtors.  In view of the difficult circumstances being experienced by many residents during the Covid-19 lockdown period the Council had not taken any enforcement action, rather ‘softer’ reminder letters had been sent.  It was explained that every effort was made to recover money owed; however if the debtor was untraceable or had absconded it became uneconomical to pursue.  Debts remained on the Council’s system in perpetuity and would be followed up if a debtor reappeared.

Resolved –

(a)  That the Interim Head of Financial Management be request to circulate information to the Committee regarding the Council’s current spend on adults learning and skills and bus service provision.

(b)  That the Interim Head of Financial Management be requested to provide Members with a web link to the Council’s Budget Book.

(c) That the Committee noted the following:

  I.  The reported underlying provisional financial position of the Council for the year ending 2019-20;

  II.  The Council’s provisional reserve balances for the year end 2019-20;

  III.  The budget transfer (virements0 for 2019-20 as detailed in section 9 of the report; and

  IV.  The write-offs for the last financial quarter 2019-20 as detailed in section 10 of the report.