Agenda item

As detailed in the recommendations.

            The Corporate Finance Manager introduced the Revenue Budget Monitoring 2018/19 (Month 10) report which provided the latest revenue budget monitoring position for 2018/19 for the Council Fund and Housing Revenue Account.  The report presented the position, based on actual income and expenditure, as at Month 10 of the financial year.

            The report projected how the budget would stand at the close of the financial year if all things remained unchanged.  Given that the Council was approaching the close of the financial year significant variations on the final out-turn position were unlikely.

            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 surplus of £0.743m (£0.233m at  Month 9); and

·         A projected contingency reserve balance as at 31^st March 2019 of £8.527m, which, when taking into account the agreed contributions for the 2019/20 budged, reduced to £6.306m.

The positive movement of £0.510m was due to very recent variances including the ending of some out of county placements and the notification of one-off Non Domestic Rate (NDR) income.  Those variations could not have been foreseen at the time of setting the 2019/20 annual budget.  The improvements in the outturn would have a positive impact on the projected availability of reserves at year end which would help safeguard the Council against the known risks in 2019/20.  Further use of reserves to help balance the budget for next year would be unsustainable, and the advice on the amount of reserves which could have been drawn down would have remained unchanged at the stage of setting the annual budget even with the improved position.

Housing Revenue Account

·         Net in-year revenue expenditure forecast to be £0.067m lower than budget; and

·         A projected closing balance as at 31^st March 2019 of £1.165m.

The report covered the Council Fund projected position; projected position by portfolio; out of county placements; central and corporate finance; tracking of in-year risks and emerging issues; achievement of planned in-year efficiencies; other tracked risks; independent inquiry into child sexual abuse; income; recycling income; schools – risks and impacts; other in-year issues; reserves and balances; earmarked reserves; and a request for carry forward of funding.

            The Chief Executive explained that, as the last meeting of Corporate Resources Overview and Scrutiny Committee had been cancelled, the Cabinet report was sent to Members of the Overview and Scrutiny Committee before the Cabinet agenda was despatched for any comments; none had been received.  He added that information had been included in the report on late grant notifications, detailing the grant, whether it was additional or new, the amount and the impact on the 2018/19 budget.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2019 be noted;

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

(c)        That the carry forward request in paragraph 1.23 be approved.