ADVISERS have been alerted to an “urgent need” to implement measures to minimize financial risk due to increased demand.
A financial monitoring report for 2021-22 was presented to the full board when it met on Wednesday.
Councilors took note of cabinet resolutions, which included taking note of the latest revised budget and forecast revenue position for 2021-22, taking note of the latest position on the implementation of the 2021-2021 budget savings, 22 and approval of a revised capital program.
This is the second quarterly financial tracking report of 2021-22 and covers the period from April 2021 to September 2021.
The report states: “There is an urgent need for mitigation measures to be implemented by management to minimize the financial risk to the board this year and in the years to come due to increasing demand, non-delivery of savings and other prevailing budget pressures. ”
spend too much
He confirmed that there is currently a planned service overrun of £4.041m against the current revenue budget of £146.7m.
However, ‘corporate variances’ will offset this by £2.528m, resulting in a net change in budget overruns of £1.513m.
But the report says that position excludes additional Covid-19 expenses and lost business revenue, which will be offset by an emergency grant and other Covid-related grants.
It also excludes “fees and expenses” revenue losses compensated under the selling expenses and expenses compensation scheme, but it includes the 2021-22 savings plans which “are at risk” of not being delivered during the year.
The report adds: “It is recognized that the financial environment in which the council operates presents significant financial challenges, particularly as the economy seeks to recover from the impact of the coronavirus pandemic and the finances of the council remain uncertain.
“In addition to the key risk of non-distribution of savings, other financial risks include pressures resulting from demand-driven spending budgets, particularly in integrated care and health, as well as the potential volatility of some revenue budgets.
“With uncertainty over the mechanism and timing of local government funding developments, as well as the continued impact of Covid-19, the financial outlook remains challenging and uncertain.”