Issue - meetings

As detailed in the recommendations.

Councillor Banks introduced the Revenue Budget Monitoring 2019/20 (Month 5) report which provided the second detailed revenue budget monitoring position for 2019/20 for the Council Fund and the Housing Revenue Account for the financial year and presented the position, based on actual income and expenditure, as at Month 5.  The report 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:

            Council Fund

·         An operating deficit of £3.042m which was a negative movement of £0.059m from the deficit figure of £2.983 reported at Month 4; and

·         A projected contingency reserve balance as at 31^st March 2020 of £1.827.

Housing Revenue Account

·         Net in-year expenditure forecast to be £0.108m higher than budget which was a negative movement of £0.027m from the deficit figure of £0.081m reported at Month 4; and

·         A projected closing balance as at 31^st March 2020 of £1.215m.

The Corporate Finance Manager explained that at the last meeting, Members considered reports on the two areas of major variance – Out of County Placements and School Transportation.  Members confirmed that they were satisfied that there was very limited scope for mitigation to reduce the in-year overspend and that there would be an inevitable impact on the budget position from 2020/21 and that it would need to be factored into the Medium Term Financial Strategy.

To assist with mitigating the overall projected overspend the following measures were being introduced:

1.    All non-essential spend would be reviewed and challenged with a view to ceasing/delaying where possible; and

2.    Further Portfolio Management Team challenge of recruitment to vacancies.

The outcome of the review would be included in the Month 6 Budget Monitoring Report.

The Corporate Finance Manager also provided details on the projected position by portfolio; tracking of in-year risks and emerging issues; achievement of planned in-year efficiencies; other in-year issues; MTFS impact and risks; reserved and balances and earmarked reserves.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2020 be noted; and

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