Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2017/18 (Month 4) report which provided the current revenue budget monitoring position for 2017/18 for the Council Fund and Housing Revenue Account.  This was the first full monitoring report for the year and presented the position, 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 mitigation to reduce cost pressures and improved the yield on efficiency planning, was:

Council Fund

·         Net in year expenditure forecast to be £1.256m more than budget; and

·         Projected contingency reserve balance as at 31^st March 2018 of £3.878m.

Housing Revenue Account

·         Net in-year expenditure forecast to be £0.026m higher than budget; and

·         Projected closing balance as at 31^st March 2018 of £1.090m.

The report covered the latest in-year forecast by portfolio; tracking of in year risks and emerging issues; other tracked risks; new emerging risks in 2017/18; inflation; and reserves and balances.

On Streetscene and Transportation, the Corporate Finance Manager explained that the projected overspend of £1.910m partly comprised the materialisation of some of the known significant risks when the 2017/18 budget was set by Council and included additional costs of £0.675m following re-procurement for covering various public transport routes and the confirmed reduction of the Single Environment Grant of £0.111m.  Further variations were listed in the report and the net position on the projected overspend was a net operating deficit of £0.569m.  Major variations affecting that operating deficit were also detailed in the report and work was ongoing to assess any potential impact on those in year variances on the Medium Term Financial Strategy (MTFS) forecast for 2018/19.

Following a review of services within Social Services for Adults, it was considered appropriate to seek approval for realignment of budget between some areas of Older People, which were currently reflecting underspends, and Learning Disabilities, which was experiencing some significant demand.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2018 be noted;

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

(c)        That a budget virement within Social Services be agreed to realign the budget to meet service needs; and

(d)       That an allocation of £0.052m be approved from the contingency reserve to provide financial support to meet in-year budget pressures anticipated for 2017-18 in respect of regional economic development structures and support for events.