Issue - meetings

That the reports be noted.         

The Corporate Finance Manager introduced a report to provide Members with the revenue budget monitoring 2013/14 (Month 4) information for the Council Fund and Housing Revenue Account (HRA) which was being submitted to Cabinet on 15 October 2013.  

For the Council Fund, the projected net in-year expenditure was reported to be £1.247m less than the budget which was a decrease of £0.818m on the £2.065m reported at Month 3 as reflected in the table at paragraph 3.01. 

The main reasons for the changes related to two main areas being a significant reduction in the projected outturn for Out of County Placements of over £0.600m and the inclusion of estimated costs of £0.400m in relation to securing and managing the site and its contents at the former chemical plant site in Sandycroft. 

The programme of efficiencies were detailed in paragraph 3.05 which currently indicated that £4.469m of the £5.331m included in the budget (83.8%) would be achieved, resulting in a net under-achievement of £0.862m; full details were provided in appendix 9.      

Paragraph 4 detailed the amounts for pay inflation and non standard price inflation which had not changed from Month 3 and the risks and assumptions were identified in section 5.00. 

The current position of unearmarked reserves was detailed in paragraphs 6.01 and 6.02 where it was reported that after taking account of an allocation for £0.518m for recovery costs following the March 2013 severe weather, and taking account of the impact of the projected in year budget position, the current projected level of the contingency reserve at the end of March 2014 was £3.888m.          

The Corporate Finance Manager also advised of a projected overspend of £0.260m on the HRA which was an increase of £0.217m on the £0.043m overspend reported at Month 3.  The projected closing balance at Month 4 of £1.174m was 4.1% of total expenditure and satisfied the prudent approach of ensuring a minimum level of 3%.  Appendix 7 detailed the reasons for significant variances occurring to date and the actions planned to deal with them. 

In response to a query from Councillor Clive Carver, the Corporate Finance Manager said that the figure of £0.862m included some elements that might be achievable in subsequent years and some that may not be achievable.  However, it was important to note that the amount of £0.862m had already been assumed in the projected figures. 

Councillor Arnold Woolley asked whether there were any predictions on trends for Out of County Placements.  The Corporate Finance Manager said that trends were analysed as part of the forecasting but that the main reason for the increase was due to new placements and extensions to existing placements.  The situation was being monitored and would be reported monthly to Cabinet and this Committee. 

The Leader of the Council said that it was a national trend of increases in the use of Out of County Placements but assured Members that the situation was being closely monitored. 

He also provided a verbal update following the announcement by  ...  view the full minutes text for item 37