Issue - meetings

Cabinet Member: Finance & Property

Forward Plan Ref: 2011/185

Contact: Kathy Wilcox, Principal Financial Manager Tel: (01865) 323981

Report by Assistant Chief Executive & Chief Finance Officer (CA13).

This report sets out the forecast position for each Directorate.  This includes the delivery of the Directorate Business Strategies which were agreed as part of the Service and Resource Planning Process for 2011/12 – 2015/16.   Parts 1 and 2 include projections for revenue, reserves and balances as at the end of January 2012.  The Capital monitoring is included at Part 3. 

The Cabinet is RECOMMENDED to:

(a)               note the report and approve the virements as set out in Annex 2a;

(b)              agree the creation of the new reserves as set out in paragraph 45 to 48; and

(c)               approve the new capital schemes and budget changes set out in Annex 9c.

The Cabinet considered a report which set out the forecast position fro each Directorate, including the delivery of the Directorate Business Strategies which were agreed as part of the Service & Resource Planning Process for 2011/12-2015/16.  The Cabinet also had before them a supplementary report by the Assistant Chief Executive & Chief finance Officer as set of in the Addenda, which outlined changes made to the credit rating matrix limits set out in the Annual Treasury Management Strategy & Annual Investment Strategy for 2011/12 and 2012/13.

The Cabinet congratulated Ms Baxter on her recent appointment as Deputy Chief Finance Officer.

Councillor Armitage referred to the additional balances in funds, particularly around school intervention projects and early intervention, expressing concern that cuts were maybe being carried out too aggressively.  He questioned whether the under spends presented an opportunity to reduce pressure on Managers.

The Cabinet Member for Children, Education & Families pointed out that the savings in early intervention were in middle management and not to the service.

The Cabinet Member for Schools Improvement referred to the million under spend in school intervention projects, stressing that the money was earmarked to raise educational attainment by looking at different ways of working to achieve it.

The Cabinet Member for Finance and Property in moving the recommendations detailed the Directorate positions as set out in the report.  In relation to the comments made on the substantial under spends shown, he indicated the £2m of the under spend was due to be spent in next year and that the rest would go into efficiency reserves.  He commented that Directorates had worked hard to achieve early savings for 2012/13.

RESOLVED: to

(a)               note the report and approve the virements as set out in Annex 2a;

(b)               agree the creation of the new reserves as set out in paragraph 45 to 48; and

(c)               approve the new capital schemes and budget changes set out in Annex 9c.

(d)               note the changes made to the credit rating matrix limits set out in the Annual Treasury Management Strategy & Annual Investment Strategy for 2011/12 and 2012/13 under delegated powers (per paragraph 2 and 9); and

(e)               RECOMMEND Council to note the changes made to the credit rating matrix limits set out in the Annual Treasury Management Strategy & Annual Investment Strategy for 2011/12 and 2012/13.