Agenda item

            That the report is received and its contents noted.

The Corporate Finance Manager introduced a report on the Revenue Budget Monitoring 2012/13 (Month 7) which was due to be considered by Cabinet on 22 January 2013.   

                        The latest forecast projected a year end overspend of £0.516 million on the Council Fund and a projected year end net under spend of £0.401 million on the Housing Revenue Account.  For the Council Fund there was an improvement on the month 6 position of £0.198m.

                        The reasons for all variances over month 6 were included in Appendix 1 of the report.  Risks were highlighted in section 3.05 of the report.  Carry over requests for funding had been submitted by Environment and Corporate Services.

                        The current projected level of contingency reserve at the end of March 2013 was £0.115 million.

                        The Housing Revenue Account (HRA) latest projection was an under spend of £0.401 m which would mean a closing balance at the end of the financial year of £1.471m, which at 5.4% of total expenditure satisfied the minimum level of 3%.

                        The Chair thanked the Corporate Finance Manager for his report.

                        Councillor P.G. Heesom asked for a progress report in relation to the required budget efficiencies of £14 million for the medium term financial plan and if they would be realised.  The Chair in response said that the end of year projections were based on the implementation of all efficiencies.  Councillor Heesom asked if efficiencies were on target.  The Corporate Finance Manager said that in terms of the medium term financial plan, any efficiencies to be made in the current year are assumed to have been met.  Any variances to this would be reported in in-year figures.

                        Councillor P.G. Heesom asked if paragraph 3.08 which related to requests for carry over of budget for Environment was connected to possible outsourcing or restructuring of the development, control and planning process.  The Leader of the Council said that there were ongoing discussions regarding planning control.

                        Councillor A. Woolley asked when a report would be produced about the financial risks to the council associated with Municipal Mutual Insurance Ltd (MMI).  The Chair in response said that this was discussed at the previous meeting and that a six figure sum was quoted by the Head of Finance.  The Head of Finance said that the council were on the brink of reaching an understanding of the implications and that details would be shared internally and would feature in budget balancing for 2012/13.

                        Councillor M. Bateman asked for further information about the overspend of £0.44 million recorded on page 2 of Appendix 6, in relation to additional superannuation costs and the overspend of £0.079 in relation to the regional transformation fund.  The Corporate Finance Manager said that he would send the superannuation information to her. He explained that the £0.079 overspend was caused by the payment of a bill in 2012/13 which should have been processed in the previous year. 2011-12.

                        Councillor G. H. Bateman asked if the gas engines at land fill sites highlighted on page 3 of Appendix 3 had previously belonged to AD Waste and sought clarification on the reduction of income due to problems with the engines.  The Member Engagement Manager said that there were no relevant officers present to answer this question. 

                        Councillor R. Davies said that the gas engines were originally put in place by A. D. Waste.  He asked for further information about the reasons for the engine break down.  The Head of Finance explained that during the passage of time, the amount of gas produced by the engines would diminish.  She agreed to find out more information.

                        The Chair said that variances in Transition and Disability Service, Vulnerable Adults and Disability Service and Commissioning (Development and Resources) appeared on page 39 in Appendix 1, but did not appear in the commentary about Community Services in Appendix 2.  He pointed out that the commentary on page 53 in Appendix 3 about fleet services did not feature in the Budget Monitoring Summary, Appendix 1 on page 39.  Details about vacancy savings in management and support on page 4 of Appendix 3 did not

            Appear in the Budget Monitoring Summary, Appendix 1.  The Corporate Finance Manager said that supporting appendices gave detailed information on variances and that sometimes there were differences in reconciliation.

                        Councillor A. Woolley asked for an update on the early introduction of P2P in Leisure Centres to better control expenditure on page 56 of Appendix 4.  The Corporate Finance Manager said that he would get an update from Lifelong Learning.

            RESOLVED:

            That the report is received and its contents noted.