Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2016/17 (Month 9) report which provided the latest revenue budget monitoring position 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

·         The net in year position comprised of an operating deficit of £0.799m; a decrease in the deficit of £1.011m from the position reported last month which was due to a number of factors, the most significant being the cost recovery of joint funded care packages within Social Services;

·         The overall projected in-year position included £2.886m due to the change in accounting policy for Minimum Revenue Provision (MRP) as agreed by County Council.  This had the effect of eliminating the operating deficit and net spend was projected to be £2.087m lower; and

·         Projected contingency reserve balance of £5.279m.

Housing Revenue Account

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

·         Projected closing balance as at 31^st 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.  A permanent budget realignment within the Social Services portfolio was recommended for implementation ahead of completion of the Month 10 budget monitoring report. 

The Chief Executive explained that the report had been considered at Corporate Resources Overview and Scrutiny Committee the previous week where a discussion had taken place on retrospective MRP. 

RESOLVED:

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

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

(c)        That a budget virement within Social Services be approved.