Issue - meetings
Revenue Budget Monitoring 2018/19 (month 4)
Meeting: 25/09/2018 - Cabinet (Item 233)
As detailed in the recommendations.
The Corporate Finance Manager introduced the Revenue Budget Monitoring 2018/19 (Month 4) report which provided the latest revenue budget monitoring position for 2018/19 for the Council Fund and the Housing Revenue Account. It was the first full detailed monitoring report for the new financial year and presented the position, based on actual income and expenditure, as at Month 4 of the financial year. It projected how the budget would stand at the close of the financial year if all things remained unchanged.
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:
· An operating deficit of £0.660m (the actual net in-year expenditure forecast showed a £2.680m surplus once the positive impact of a £1.400m contribution due to the agreed change to the accounting policy for Minimum Revenue Provision (MRP) and receipt of a VAT rebate for £1.940m were included, noting that both sums were recommended for allocation to the Contingency Reserve to support the Medium Term Financial Strategy); and
· A projected contingency reserve balance as at 31st March 2019 of £8.145m
Housing Revenue Account
· Net in-year revenue expenditure forecast to be £0.007m higher than budget; and
· A projected closing balance as at 31st March 2019 of £1.165m
The report covered the Council Fund projected position; projected position by portfolio; tracking of in-year risks and emerging issues; National Joint Council (NJC) pay award; out of county placements; achievement of planned in-year efficiencies; other tracked risks; income; recycling income; schools pressures; other in-year issues; reserves and balances; earmarked reserves; and carbon reduction commitment.
The Chief Executive added that the risks on teachers’ pay award and pension contributions, as reported at agenda item number 4, would be included in the next budget monitoring report.
(a) That the overall report and projected Council Fund contingency sum as at 31st March 2019 be noted;
(b) That the projected final level of balances on the Housing Revenue Account be noted;
(c) That an allocation of £1.084m from the Contingency Reserve be approved to meet the additional budget pressure in 2018/19 for the agreed pay award over and above the 1% included in the Council Fund budget for 2018/19;
(d) That an allocation of £0.100m from the Contingency Reserve for the ongoing resourcing of the Victim Contact Team within Social Services be approved;
(e) That a transfer to the Contingency Reserve for the amount of £1.400m recovered from the change in accounting policy for the Minimum Revenue Provision be approved;
(f) That a transfer to the Contingency Reserve for an amount of £1.940m due to the amount received from the VAT rebate be approved;
(g) That the earmarking of £0.296m from the Carbon Reduction Commitment budget for consideration of funding costs associated with the solar farm project agreed at Cabinet in July be approved.