Agenda item

As detailed in the recommendations.

The Head of Finance provided the most up to date revenue budget monitoring information (Month 3) for the Council Fund and the Housing Revenue Account in 2013/14.

The projected year end position on the Council Fund, as estimated at Month 3, was:

·        Net in year expenditure forecast to be £2.065m less than the budget (An increase of £1.065m on the £1m reported at Month 2)

·        Projected contingency reserve balance at 31 March 2014 of £4.706m

·        Recurring efficiencies of £1.435m had been identified in Adult Services

·        Approval of the recommendations within the report would produce a net positive impact of £0.885m on the Medium Term Financial Plan (MTFP)

The projected year end position on the Housing Revenue Account, as estimated at Month 3, was:

·        Net in year expenditure forecast to overspend the budget by £0.043m (Nil variance reported at Month 2)

·        Projected HRA balances at 31 March 2014 of £1.391m

The Head of Finance explained that a number of actions had been taken to strengthen financial control, budget management and reporting through clear lines of responsibility, improved forecasting techniques, early warnings or “alerts” from service managers in changes to service demands and cost bases and improved formal reporting.  Further developments which would be included in the next monthly report were to revise the presentation of the appendices and to provide a specific analysis setting out progress with the achievement of the pre-planned efficiencies agreed as part of the budget setting for 2013/14.

Achieving efficiency targets was a priority within the 2013/14 Improvement Plan with a specific target of meeting 85% or more of the pre-agreed efficiency targets.  Careful monitoring and regular reporting would be a key driver to ensuring that plans were on target and any mitigating action could be taken if any efficiencies were delayed or became unachievable.  At this early stage, the projected in-year achievement of pre-planned efficiencies was 95%, which was ahead of target.

Following detailed consideration of the service trends and forecasts within Social Services for Adults, in-year savings of £1.670m had been identified and it was recommended that the in-year budgets were reduced by the appropriate amounts making up the £1.670m.

As a result of the overall review activity a budget pressure of £0.350m had been identified with the Professional Support budget – Children’s Services which was as a result of a marked increase in the demand for statutory child care support in Flintshire.  It was recommended that additional base budget of £0.350m be allocated to this service in 2013/14.

RESOLVED:

(a)       That the report be noted;

(b)       That the projected Council Fund contingency sub as at 31 March 2014 be noted;

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

(d)       That the in-year base budget reductions as detailed in paragraph 8.02 be approved; and

(e)       That the allocation of base budget of £0.250m to Professional Support – Children’s Services as detailed in paragraph 8.04 be approved.