This week, the Watford council held the following meeting:

Finance Scrutiny Committee - Tuesday 25 June 2024

The Finance Scrutiny Committee met to review the council's financial performance for the financial year 2023/24. Although no decisions were made during this meeting, several important points were discussed.

2023/24 Financial Year End Position

The committee reviewed the Financial Monitoring Report 2023/24 - Year End, which highlighted an underspend of £1.429 million against the revised budget. This represents a 1.0% variance. The underspend was attributed to increased income from car parking, reduced expenditure on agency staff, and the timing of capital expenditure. This marks the third consecutive year that the council has ended with an underspend.

Whilst this outturn position is positive, particularly given the significant financial pressures being faced across the public sector, there remain a number of financial risks that need to be carefully managed over the coming years.

— Financial Monitoring Report 2023/24 - Year End

The report also underscored several financial risks, including the ongoing impact of inflation, increasing demand for services, and uncertainty surrounding government funding.

The committee discussed the overachievement of £1.072 million in car parking income, which was attributed to the increase in car parking charges implemented last April and the popularity of the new parking app. Additionally, a £0.5 million underspend on agency staff was noted, thanks to the success of the council's recruitment campaign and the use of new technologies to reduce reliance on agency staff.

Treasury Management Performance

The committee also reviewed a report on the council's treasury management performance for 2023/24. The report detailed the council's investment portfolio and debt position, indicating that the council's investments had performed well, generating a positive return. The debt level was deemed within acceptable limits, and there was no further discussion on this report.

This meeting provided a thorough review of the council's financial health and highlighted areas of both strength and potential risk. The continued underspend and effective management of resources are positive signs, but the council must remain vigilant in managing future financial challenges.