Issue - meetings

(a)       That the Month 7 Revenue Budget Monitoring Report be received; and

(b)       That no formal recommendations be made to the Cabinet on this occasion.

The Finance Manager – Corporate Accounting and Systems introduced a report to provide Members with the Revenue Budget Monitoring 2015/16 (Month 7) for the Council Fund and Housing Revenue Account (HRA) which was to be submitted to Cabinet on 19^th January 2016. 

                        The figures were based on actual income and expenditure as at Month 7, and projected forward to year-end.  For the Council Fund, the projected net in-year expenditure was forecast to be £0.387m lower than budget which was a positive movement of £0.678m from Month 6.  Appendix 1 detailed the movements from Month 6 with the main change being an improved position on the Central Loans & Investment Account (CLIA) of £0.596m.  The Programme of Efficiencies was reported in paragraphs 1.05 and 1.07 and it was currently projected that £10.642m (83%) would be achieved; appendix 3 provided details on the latest variation to the level of efficiency achievable compared to the budget.  Details of costs for inflation and non-standard inflation were reported along with information on unearmarked reserves which showed that taking into account previous allocations and the current underspend at Month 7, the Contingency Reserve at 31^st March 2016 was projected to be £4.923m.  It was being recommended to Cabinet that two costs be funded from the Reserve.  The first was £0.800m to meet the estimated 20% increase of the levy required to meet past and future claim liabilities in relation to the former Municipal Mutual Insurance (MMI) company.  The second was a cost of £0.100m for the increased need for specialist social work capacity for child protection support working in partnership with statutory agencies.  The Chief Executive provided further detail on this area.  The Finance Manager – Corporate Accounting and Systems advised that if both of these uses of the contingency fund were approved by Cabinet, the remaining reserve would be approximately £4.00m.  Issues relating to the MMI, recycling, car parking, out of county placements, former Euticals site and in-year reductions in specific Government grants were all reported as risks for the Council.

                        Councillor Richard Jones referred to the transfer of the transport budget of £0.656m from Social Services to Streetscene & Transportation and queried whether this has had an impact on the overspend in Streetscene & Transportation.  The Chief Executive explained that the spend was originally held within Social Services portfolio but it was felt that it was more appropriate to hold it within the Streetscene & Transportation portfolio.  He added that it did not affect the over-spend in the portfolio.  Councillor Jones also referred to the movement of £0.376m between the Education & Youth and Central & Corporate Finance portfolios.  The Chief Executive explained that this move was to ensure that all borrowing was held in the CLIA account but added that it would not have an effect on the over or underspends for the respective portfolios.  In response to a question from Councillor Jones on whether match fund spend came from the relevant department or from Central & Corporate Finance, the Chief Executive confirmed that this could be from  ...  view the full minutes text for item 75