Issue - meetings

            That the report be noted.                 

The Head of Finance introduced a report to provide Members with the Revenue Budget Monitoring 2012/13 (Month 8) report which was being submitted to Cabinet on 19 February 2013. 

                        The projected year end underspend of £0.611m on the Council Fund was a significant improvement to the projected overspend of £0.516m reported at Month 7.  The significant in-year projected variances to date were detailed in appendices 2 to 6 and the table in the report showed the changes from Month 7 to Month 8.  The improving position of the Out of County Placements underspend was as a result of smarter procurement from the continued involvement of Commercial and Clinical solutions and reduced numbers of placements which had been influenced by the development of in-county provision from foster care and within special schools. 

                        The Contingency Reserve projected at year end as a result of the projected underspend was £1.267m but it was being recommended to Cabinet that an allocation of £0.770m from the reserve be made in 2012/13 to make provision for the triggering of the Municipal Mutual Insurance (MMI) scheme of arrangements which was now needed in accordance with Accounts & Audit regulations.  This would leave an estimated balance of £0.497m in the Contingency Reserve at 31 March 2013.  The Head of Finance explained that a report on MMI was being submitted to Cabinet on 19 February 2013 and that she had copies available for Members if required. 

                        The Chief Executive highlighted the underspend of Out of County Placements which was due to positive management of the placements as identified by the Head of Finance.  The issue was still reported as a risk as the effect of future placements was unknown. 

                        Councillor P.G. Heesom expressed concern at the build up of underspends, which was a change in philosophy from the previous administration, and also at the carry forward request for Housing Services (Homelessness).  Councillor N.R. Steele-Mortimer commented on the successful work undertaken on Out of County Placements which had resulted in the underspend.  He asked whether the Chief Executive felt that the improved position meant that all of the needs could be catered for in-county.  The Chief Executive responded that Out of County Placements was one of the most significant in year budget shifts and was partly due to investment in special schools, challenging the need to use placements not in county and working with those who provided the services to get a better deal.  He spoke of the need to provide more regional solutions and more general longer term solutions but added that he was confident that the process had left the authority with a more manageable budget.

                        The Leader of the Council responded to the comments by Councillor Heesom and said that the current years budget had been set in March 2012 and had crossed two council administrations.  It was important to protect core key services and the opportunity to use monies from the reserves for the MMI challenge would ensure that the authority was prepared should the payment need  ...  view the full minutes text for item 75