Agenda item

The Chairman introduced the Month 5 CFO Report and invited Officers who summarised and presented the report to the Committee.

In response to a comment about debtors, Officers noted the improved position by virtue of a reduction of £3.3M for the total sundry debt owed as at 31 August 2019 in comparison to the same period last year. Officers also spoke about the active dialogue that had taken place with Barnet CCG in respect of the total debt owed as set out in Table 19 of the report.

Committee Members expressed concerns over the level of drawdown from reserves and requested clarification. The Director of Finance (S151 Officer) Anisa Darr briefed Members about the elements concerning the drawdown of reserves including:

-        the current budget setting processes,

-        changes to the HRA borrowing cap

-        earmarked reserves to fund expenditure and

-        overspend in relation to demand led services.

The Chairman highlighted the importance of future sustainability and noted that once the recovery plans were ready, the Committee will receive an update report on the necessary actions to contain the overspending and reach a balanced position. (Action: Finance)

Officers agreed to provide briefing notes to the Chairman and Councillor Levine on underlying debt in the budgeting process. (Action: Finance)

Following a comment from the Committee about Brent Cross and the Capital Programme, it was agreed that Officers in consultation with the Chairman develop an item due to be reported to a future FPC Committee.  (Action: Forward Work Programme - Finance) The requested report on Brent Cross will set out the following:

-        the major Capital Programme projects and sub-projects within the Capital Programme

-        risks against each of those project and sub-projects

-        the summary of progress against each project and sub-project

-        amount of funding spent compared to amount of funding expected to be spent

The Committee asked for the total cost of moving to the Oakleigh Road Depot and acknowledged the difficulties in calculating the total cost due to the changing nature of the comparison data. Officers were instructed to provide a report to the Committee on this matter. (Action: Forward Work Programme March 2020)

Following a query about the part closure at Finchley Lido leisure centre, the Assistant Director for Estates Chris Smith noted that this was due to structural issues with the roof and that the closure will be dependent on the outcome of the investigation work which is due to take place until at least December 2019.

Mr Smith informed Members that a team was commissioned to investigate the issues which has resulted in another intrusive investigation to identify the scale of the problem. Once this has concluded the remedial work can be commissioned. Further information will be reported back to this Committee. (Action: Estates - Forward Work Programme)

Members raised a query around the overspend for demand led services and the Adults overall forecast. Ms Darr noted that forecast demand is reviewed on an annual basis along with the forecasting methodology which is reviewed regularly through peer reviews with other Local Authorities.

The Committee noted the increase in security cost for Colindale due to the additional entrance and exits. The Committee also noted that there were additional costs in respect of the delay in vacating North London Business Park and asked for details of the thinking on options for mitigating costs at Barnet House.

The Chairman referred to the maintenance and renewal of Street Scene Fleet costs which has risen significantly and requested a briefing note on the matter from Officers. (Action – Street Scene/ Estates)

It was unanimously RESOLVED that:

1.     The Committee noted the 2019/20 revenue forecast outturn, as detailed in Table 1 and in Appendix A;

2.     The Committee noted the savings anticipated to be delivered in 2019/20, as detailed in Table 6;

3.     The Committee noted the 2019/20 capital forecast outturn, as detailed in Table 7 and in Appendix B;

4.     The Committee noted the level of reserves and balances as detailed in Table 10.

5.     The Committee noted the treasury position outlined in section 4.

6.     The Committee noted the debtors position outlined in section 5.