Agenda item

As detailed in the recommendations.

The Head of Finance presented the latest revenue budget monitoring information (Month 3) for the Council Fund and the Housing Revenue Account (HRA) 2012/13. 

                        Members were informed that the projected year end position as estimated at Month 3 was a net overspend of £1.053m on the Council Fund and a net overspend of £0.030m on the Housing Revenue Account.   The Head of Finance advised that the main reason for the overall projected Council Fund overspend was a current forecast overspend of £1.303m within Lifelong Learning.  Details of the reasons for the variances were outlined in appendix 3 to the report where in addition to the historic pressures there were a small number of emerging new pressures.  Also detailed in appendix 3 were the specific management actions in place to reduce the overspends, including the consideration of some of the pressures for ongoing funding within the budget process for 2013/14.  She indicated that it was management’s intention to contain expenditure in year to within the overall budget as far as this was possible to do.

                        The Head of Finance advised that the in-year over/(under) spends as detailed in the report reflected a number of risks and assumptions.  She also reported on the unearmarked reserves and the HRA and advised that it was recommended that delegated authority be granted to the Head of Housing to allocate additional CERA contributions from HRA balances over and above the required level of 3% of total expenditure.  Further monitoring reports would be presented to Cabinet during the year.  It was suggested that the delegation to the Head of Housing be in conjunction with the Cabinet Member and this was agreed.   

                        The Leader of the Council said that detailed discussion had been held on the revenue budget monitoring report at the meeting of the Corporate Resources Overview & Scrutiny Committee on 13 September 2012.   He stated that it was critical that the background to the overspend was understood at this stage in view of the financial challenges ahead and the need to protect services. 

            The improvements in Housing performance and efficiencies were noted as were the positive improvements in facilities at Deeside Leisure Centre.  

RESOLVED:

a)           That the overall report and the management actions being taken to address the projected overspend be noted;

b)           That the Council Fund contingency sum (overdrawn balance) as at 31 March 2013 (paragraph 5.02) be noted;

c)            That the allocation of £0.361M from contingency as a one-off investment to support the new Leisure facilities in their first year of operation (paragraph 3.04) be approved;

d)           That  the projected final level of balances on the Housing Revenue Account (paragraph 6.03) be noted; and

e)           That delegated authority be granted to the Head of Housing in consultation with the Cabinet Member for Housing, to allocate additional CERA contributions from HRA balances over and above the required level of 3% of total expenditure (paragraph 6.06).