Agenda item

As detailed in the recommendations.

The Corporate Finance Manager provided Members with the latest revenue budget monitoring information for 2015/16 for the Council Fund and Housing Revenue Account (HRA) based on actual income and expenditure as at month 3.  The projected year end position, as estimated at month 3, was:

                        Council Fund

·         Net in year expenditure forecast to be £0.212m lower than budget

·         Projected contingency reserve balance at 31 March 2016 of £4.958m

Housing Revenue Account

·         Net in year expenditure forecast to be £0.070m higher than budget

·         Projected closing balance as at 31 March 2016 of £1.168m

The reasons for the variances were reported in appendix 1 for the Council Fund and appendix 4 for the HRA.  A projected underspend within Social Care of £0.573m was mainly due to the additional allocation included in the budget for Independent Living Fund of £0.338m now met by grant from Welsh Government (WG).  As a result, it was proposed that £0.300m of this allocation be held centrally as a one off in year efficiency with the potential for any permanent efficiency to be assessed once confirmation had been received from WG.   

The Corporate Finance Manager explained that it was currently projected that £10.876m (84%) of efficiencies would be achieved resulting in a net underachievement of £1.998m.  Details of the latest position where there was a variation to the level of efficiency achievable compared to the budget were summarised in Appendix 2.  He added that the position would continue to be monitored and reported throughout the monthly monitoring process.

Taking into account the current underspend at Month 3, the balance on the Contingency Reserves at 31 March 2015 was projected to be £4.958m.  In June 2015, Cabinet approved expenditure of £0.210m for the costs of the Speed Limit Review and it was recommended that these costs be met from the Contingency Reserve.

The position at Month 3 for the HRA was projecting in year expenditure to be £0.070m higher than budget and a projected closing balance as at 31 March 2016 of £1.168m which at 3.8% of spend satisfied the prudent approach of ensuring a minimum level of 3%.

In response to a comment from Councillor Aaron Shotton, the Chief Executive confirmed that the report had generally been well received when it had been considered by the Corporate Resources Overview & Scrutiny Committee the previous week but a concern on the overspend in Streetscene was to be referred to the Environment Overview & Scrutiny Committee and the outcome reported to a future meeting of Cabinet.      

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2016 be noted;

(b)       That the transfer from Social Services of £0.300m of budget for Independent Living Fund (ILF) to be held within Central and Corporate Finance as a one off in year efficiency be approved;

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

(d)       That an allocation of £0.210m from the Contingency Reserve for the costs of the speed limit review which is an improvement plan priority be approved.