Agenda item

The Leader invited the Chairman of the Overview and Scrutiny Board, to present to the discussions in respect of the pre-scrutiny of the Financial Outturn Report and Quarter Four Performance Monitoring Report 2024/2025, which had taken place at a Finance and Budget Working Group meeting on 17^th July 2025 and at the Board meeting held on 22^nd 2025.

In doing so, Members were informed that during consideration of the report, Members of the Working Group had agreed that more detailed narrative was required in these reports going forward in order for Members and the public to better understand the content. Specific areas where further detail was needed was in the variances across service areas, information on the reasons for these variances and mitigations in place to ensure these were managed effectively. In addition, further information regarding the recharges made across both Bromsgrove District and Redditch Borough Councils during any financial year would also be helpful to better understand the financial position of the Council. This pre-scrutiny had resulted in a recommendation being made by the Board as follows:

RECOMMENDED to Cabinet that

Future Quarterly Financial Outturn and Performance reports provide:

                                                    i.     a detailed narrative in terms of variance for each specific service area

                                                   ii.     for each area of high variance provide detail of the action(s) being taken to address the issue and the officer(s) responsible  

                                                 iii.     information on recharge amounts.

The Cabinet Member for Finance welcomed the recommendation from the Board and felt that this was necessary in order for Members to ‘drill down’ into future information presented. It was noted that Cabinet Members would be required to take ownership and have a clear understanding of the spending across their specific portfolios in the future.

The Deputy Chief Executive informed the Cabinet that in the future there would be a need to present not only the ‘approved’ budget in these reports but also the ‘working’ budget which would provide a more accurate picture of any variances, carry forwards and burdens experienced within the financial year. These changes had been discussed with the Assistant Director Finance and Customer Services who understood that this would provide extra detail. It was further noted that the changes to these reports would be an iterative process, and that feedback was welcomed when considering these reports in the future, in order to ensure that useful and transparent data was provided to Members.

In terms of the performance monitoring data, significant improvements had been made. This data, however, would be provided in a separate report going forward. Although it was confirmed that both financial and performance monitoring reports would be considered within the same committee cycle, in order to provide a clear picture and highlight the links between what the Council was spending and what it was doing.

The Policy Manager presented the performance monitoring data contained within the report. The way in which performance data was monitored and presented had evolved which had resulted in data that was easier to interpret. This was an ongoing process and would continue to be developed.

Cabinet was informed that there were still gaps within some areas of the data and that Officers were working with managers to ensure these gaps were filled. The Power BI dashboard continued to be developed to ensure that real time data could be tracked by Members and, if appropriate for some performance measures, by members of the public on the Bromsgrove District Council website. In addition to this it was reported that a RAG (Red, Amber, Green) rating model would continue to be used to monitor and investigate areas where performance was unsatisfactory. Any areas that were not ‘green rated’ would be investigated further by Officers.

There was a query in respect of the Members Ward Budget Funds and whether there was the possibility to carry forward funds to future years. Although it was stated that in some exceptional cases this might be possible this was a fund that was set up to be accessed within a specific financial year and any leftover monies would go back into the General Fund at the end of the relevant financial year.

Although reminders had been sent out to Members regarding the Members Ward Budget Funds throughout the year, financial reporting on the Members Ward Budget Funds including the levels of funding spent by Members so far within the year, would be included in future reports as it would be helpful to ensure that all Members were aware of any spent and remaining funding.

The criteria for allocation of Members’ Ward funding was robust and if any projects had been rejected throughout the year, it was likely due to not meeting the criteria, such as a request being made for funding to an individual rather than to an organisation.

Members thanked Officers for their work on this report and were pleased with the dynamic approach being taken for future reports. 

RESOLVED that

1)    the 2024/25 outturn position in relation to revenue budgets was a revenue underspend of £129k and that this excluded the Balance Sheet Monitoring for the Treasury Monitoring Report as this was to be taken as a separate report.

2)    the 2024/25 outturn position in relation to Capital expenditure was £9.53m against a total an approved programme of £7.07m.

3)    to note the Members Ward Budget allocation position at the year ending 31 March 2025 was approved allocations at £55,812.

4)    to note the outturn position in respect of the General Fund Reserves which was £14.299m on the 31 March 2025.

5)    to note the outturn position in respect of Earmarked Reserves.

6)    there was an updated procurements position set out in Appendix D, with any new items over £200k to be included on the forward plan.

7)    the Quarter 4 Performance data for the period January to March 2025 be noted; and

8)    future Quarterly Financial Outturn and Performance reports provided:

                                                    i.          a detailed narrative in terms of variance for each specific service area

                                                   ii.          for each area of high variance provide detail of the action(s) being taken to address the issue and the officer(s) responsible  

                                                 iii.          information on recharge amounts.