Agenda item

This is the eleventh financial monitoring report for the 2009/10 financial year and covers the period up to the end of February 2010.  It includes projections for revenue, balances, reserves and capital monitoring.The report sets out explanations where the forecast revenue outturn is significantly different from the budget along with proposals to recover the position where appropriate.

The in – year Directorate forecast is an overspend of +£3.619m.  After taking account of  calls on balances (pending or to be approved) it is expected that the overspend reported this month will reduce to +£0.884m or +0.24% of the budget by year end.  

The current position for general balances is set out in Annex 5 and shows a forecast of £10.578m after taking account of agreed and proposed requests for supplementary estimates.  After taking into account the forecast Directorate overspend adjusted for supplementary estimates requested to date the consolidated revenue balances forecast is £9.321m.

The capital monitoring position set out in the report shows forecast expenditure for 2009/10 of £86.1m (excluding schools), a decrease of £3.7m compared to the latest capital programme.

The Cabinet is RECOMMENDED to:

(a)                           note the report;

(b)                          approve the supplementary estimate request of £0.060m in relation to legal fees over £0.025m in Annex 2f and paragraph 68;

(c)                           note the increase of £1.081m in the provisional allocation for the Personal Care at Home Grant for 2010/11 as set out in paragraph 97;

(d)                          note the removal of £0.6m Green Book pay inflation from 2010/11 budgets as shown in Annex 8 and paragraph 98 & 99;

(e)                           note the addition to Council budgets of £0.1m Teachers’ pay inflation as set out in paragraph 100; and

(f)                             agree the virements to Children, Young People & Families budgets for 2010/11 as set out in Annex 9 and paragraph 101.

Cabinet considered the eleventh financial monitoring report for the 2009/10 financial year covering the period up to the end of February 2010.  It included projections for revenue, balances, reserves and capital monitoring.

The in – year Directorate forecast was an overspend of +£3.619m.  After taking account of calls on balances (pending or to be approved) it was expected that the overspend reported this month would reduce to +£0.884m or +0.24% of the budget by year end.  

The current position for general balances showed a forecast of £10.578m after taking account of agreed and proposed requests for supplementary estimates.  After taking into account the forecast Directorate overspend adjusted for supplementary estimates requested to date the consolidated revenue balances forecast was £9.321m.

Cabinet noted an amended annex 8, and considered annex 9, which was marked to follow on the original agenda.

Cabinet also considered a supplementary report and recommendations relating to adjustments to the 2010/11 budget concerning Personal Care at Home Grant for 2010/11 and the write off of a bad debt.

The Cabinet Member for Finance & Property highlighted three areas that continued as pressure points. Children’s placements were still rising; young unaccompanied asylum seekers was beginning to see a resolution but the underlying problem of lack of proper resourcing by central government remained; and ICT was a known difficulty where action was being taken. He also referred to pooled budgets that were likely to end up close to budget following the funding from the PCT. However he continued to be concerned about some of the underlying structure, and would continue to monitor closely seeking additional information.

The Cabinet Member for Children, Young People & Families confirmed that the issues around young unaccompanied asylum seekers were a national problem and Councils had lobbied government with some limited success. Children’s placements were demand led and social worker’s made decisions based on the best interests of the County’s vulnerable youngsters. A successful bid had been made with regard to foster caring initiatives and she would be discussing this with the Chief finance officer to explore options to invest to save.

The Cabinet Member for Schools Improvement referred to steps being taken around the schools repairs and maintenance budgets.

The Deputy Leader confirmed that steps were being taken to address the ICT overspend but that the budget would remain pretty tight.

RESOLVED:             to:

(a)                           note the report;

(b)                           approve the supplementary estimate request of £0.060m in relation to legal fees over £0.025m in Annex 2f and paragraph 68;

(c)                           note the latest position relating to the Personal Care at Home bill;

(d)                           agree the write off of a bad debt of £16,456 as set out in paragraph 73 and 74;

(e)                           note the increase of £1.081m in the provisional allocation for the Personal Care at Home Grant for 2010/11 as set out in paragraph 97;

(f)                             note the removal of £0.6m Green Book pay inflation from 2010/11 budgets as shown in Annex 8 and paragraph 98 & 99;

(g)                           note the addition to Council budgets of £0.1m Teachers’ pay inflation as set out in paragraph 100; and

(h)                           agree the virements to Children, Young People & Families budgets for 2010/11 as set out in Annex 9 and paragraph 101.