Issue - meetings

Cabinet Member: Finance

Forward Plan Ref: 2017/081

Contact: Katy Jurczyszyn, Strategic Finance Manger (Finance, Strategy & Monitoring) Tel: 07584 909518

Report by Director of Finance (CA6).

The report is the third financial monitoring report for 2017/18 and focuses on the delivery of the 2017/18 budget based on projections at the end of October 2017.  Parts 1 and 2 include projections for revenue, reserves and balances.   Capital Programme monitoring and update is included at Part 3. 

The Cabinet is RECOMMENDED to:

(a)          note the report;

(b)         approve the virement requests set out in Annex 2a;

(c)          note the Virements set out in Annex 2b;

(d)         approve the bad debt write offs set out in paragraphs 37 to 40;

(e)          note the Treasury Management lending list at Annex 3;

(f)           approve the updated Capital Programme at Annex 7 and the associated changes to the programme in Annex 6c;

(g)         approve the contractual commitment for construction of the new Secondary School in South West Bicester, with a total budget of £16.0m;

(h)         delegate to the Director of Finance and Strategic Director for Communities in consultation with the Leader of the Council to approve the stage 2 Full Business Case and the award of the construction contract for the new Secondary School in South West Bicester;

(i)                 approve the total project budget of £15.8m, including the release of £4.2m towards the delivery of the slip road at A34/A4183 junction at Lodge Hill; and

(j)           approve an increase in the capital programme to reflect the budget for the master site plans for Drayton and Deddington Depots to £4.5m and delegate authority to the Director of Finance on the funding option to support the capital investment.

Recommendations agreed.

Cabinet considered the third financial monitoring report for 2017/18 that focused on the delivery of the 2017/18 budget based on projections at the end of October 2017.  Parts 1 and 2 include projections for revenue, reserves and balances.   Capital Programme monitoring and update was included at Part 3. 

Councillor Helen Evans, Shadow Cabinet Member for Finance, expressed concern at the increase in the projected overspend and in particular at the increased overspend in CEF. She sought assurances that there would not be further increases. There was a need to look after the most vulnerable but there was also a need to be able to have confidence in the forecast and also confidence that the increase was due to increased demand and not to problems with the system/processes. She queried how the out of county SEND placements could be reduced and commented on the underspend in public health. Councillor Evans welcomed the look ahead at capital spend but noted that it was difficult to see the reasons for variations. She asked that consideration be given to including further commentary on variations in future reports.

Councillor Bartholomew responded to the points made and agreed that the CEF overspend was a matter of concern but it was necessary to meet statutory requirement and to do everything possible to protect vulnerable children. He added that he was able to say with confidence that there was rising demand. He clarified that the underspend in public health was not related to the ring fenced element.

Councillor Bartholomew moved the recommendations.

RESOLVED:             to:

(a)          note the report;

(b)          approve the virement requests set out in Annex 2a;

(c)          note the Virements set out in Annex 2b;

(d)          approve the bad debt write offs set out in paragraphs 37 to 40;

(e)          note the Treasury Management lending list at Annex 3;

(f)           approve the updated Capital Programme at Annex 7 and the associated changes to the programme in Annex 6c;

(g)          approve the contractual commitment for construction of the new Secondary School in South West Bicester, with a total budget of £16.0m;

(h)          delegate to the Director of Finance and Strategic Director for Communities in consultation with the Leader of the Council to approve the stage 2 Full Business Case and the award of the construction contract for the new Secondary School in South West Bicester;

(i)            approve the total project budget of £15.8m, including the release of £4.2m towards the delivery of the slip road at A34/A4183 junction at Lodge Hill; and

(j)            approve an increase in the capital programme to reflect the budget for the master site plans for Drayton and Deddington Depots to £4.5m and delegate authority to the Director of Finance on the funding option to support the capital investment.