Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2016/17 (Month 7) report which provided the latest revenue budget monitoring position for 2016/17 for the Council Fund and Housing Revenue Account based on actual income and expenditure.  The report projected how the budget would stand at the close of the financial year if all things remained equal.

                        The projected year end position, without any further action to reduce cost pressures or to identify new efficiencies was:

Council Fund

·         Net in year expenditure forecast to be £1.771m higher than budget

·         Projected contingency reserve balance of £1.434m

The overall projected in year position was an increase of £0.218m on the positon reported in November 2016.  The Council was awaiting a decision from Welsh Government (WG) for an additional in-year transport grant which would reduce the underlying forecast overspend.

Housing Revenue Account

·         Net in year expenditure forecast to be £0.037m higher than budget

·         Projected closing balance as at 31 March 2017 of £1.061m

The report covered significant budget movements; programme of efficiencies; inflation, reserves and balances; and an overview of the Housing Revenue Account.

The Chief Executive reported that the Revenue Budget Monitoring 2016/17 (Month 7) had been considered by the Corporate Resources Overview & Scrutiny Committee on Thursday 8^th December, 2016.  The Scrutiny Committee were concerned around the significant portfolio variances as detailed within the report which included the increase in the projected outturn for Out of County Placements in Children’s Services due to an increase in the number of Child and Parent placements.  The main influence on this increase was the new Social Services and Wellbeing Act which had led to a higher number of court outcomes and placements.  This matter needed to be raised with Welsh Government (WG) who when introducing the Act assured local authorities that there would be no negative financial impact.

Councillor Shotton said that there was a need for continued focus on the implications of financial overspend.  He said that it had been pleasing to hear the Cabinet Secretary for Economy and Infrastructure had praised Flintshire County Council for the action undertaken in securing the school and public transport subsidised routes when GHA Coaches went into liquidation, as opposed to neighbouring local authorities.

In response to comments from Councillor Kevin Jones, the Chief Executive advised that the Council was awaiting a decision from WG for an additional in-year transport grant to part fund the costs incurred in procuring a full replacement service provider.  The Council expects to recover at least a proportion of the additional cost.       

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2017 be noted and further work be commissioned on options for mitigating action in the future; and

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