Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2019/20 (Month 6) report which provided the latest detailed revenue budget monitoring position for 2019/20 for the Council Fund and the Housing Revenue Account for the financial year and presented the position, based on actual income and expenditure, as at Month 6.  The report projected how the budget would stand at the close of the financial year if all things remained unchanged.

                        The projected year end position, without new actions to reduce cost pressures and/or improve the financial return on efficiency planning and cost control was:

            Council Fund

·         An operating deficit of £2.698m which was a favourable movement of £0.344m from the deficit figure of £3.042m reported at Month 5; and

·         A projected contingency reserve balance as at 31^st March 2020 of £2.171m.

Housing Revenue Account

·         Net in-year revenue expenditure forecast to be £0.010m higher than budget which was a positive movement of £0.098m from the deficit figure of £0.108m reported at Month 5; and

·         A projected closing balance as at 31^st March 2020 of £1.313m.

As reported at Month 5, and to assist with mitigating the overall projected overspend, the following measures were introduced at Month 6:

1.    All non-essential spend had been reviewed and challenged with a view to ceasing/delaying where possible; and

2.    Further Portfolio Management Team challenge of recruitment to vacancies.

This had resulted in identifying a one-off delay in spend of -£0.530m at Month 6 which had helped to reduce the overall financial overspend position.  However, additional demand pressures at Month 6, totalling a net £0.186m, had negatively affected the overall position, hence the net overall reduction in variance of £0.344m.

Engagement by Portfolio Budget Holders with Finance Teams had been good, however work would continue into Month 7 and beyond with the same rigour and challenge in an attempt to further improve the position.

The Corporate Finance Manager also provided details on the projected position by portfolio; tracking of in-year risks and emerging issues; achievement of planned in-year efficiencies; other in-year issues; MTFS impact and risks; reserves and balances and earmarked reserves.

The report had been considered at Corporate Resources Overview and Scrutiny Committee the previous week and no specific issues had been raised.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2020 be noted; and

(b)       That the projected final level of balances on the Housing Revenue Account be noted.