Issue - meetings

Report of the Cabinet Member for Resources and Workforce Planning summarising the General Fund Revenue financial position for the Authority for the 3 months to the end of the 2nd financial quarter of 2010 and highlighting any key issues by Portfolio which need to be brought to the attention of Cabinet, attached.

On consideration of the report of the Cabinet Member for Resources and Workforce Planning summarising the General Fund Revenue financial position for the Authority for the 3 months to the end of the 2nd financial quarter of 2010 and having received representations from a Member of the Council, Cabinet noted that:

(i)  the current General Fund revenue budget monitoring position for the General Fund 2010/11 as at Month 6 (September), which is a forecast over spend at year end of £293,900 against the budget approved by Council on 17^th February 2010, as outlined in paragraph 4.  This can be compared against the reported over spend at Month 3 of £1,123.600; an improvement of £829,700.

(ii)  the baseline forecast over spend for portfolios is £4,302,200;

(iii)  portfolios continue to take remedial action to manage a number of the corporate and key issues highlighted in this report and that the financial impact is reflected in the forecast position;

(iv)  the Risk Fund includes £3.3M to cover service related risks, and that the estimated draw at Month 6 is £3.0M to cover expenditure which is included within the baseline forecast portfolio over spend of £4.3M.  At this stage of the year, it has been prudently assumed that a further draw of £365,500 may be required in 2010/11 and consequently that the Risk Fund will be fully utilised;

(v)  the Revenue Development Fund now totals £3.6M following the allocation of a further £1.3M in 2010/11 to portfolios.  At this stage of the year it has been prudently assumed that the remainder of the Fund will be fully utilised, with the exception of £450,000.  This was earmarked for the Building Schools for the Future Programme which has been halted by the Government;

(vi)  it has been assumed that the contingency of £250,000 will be fully utilised by the end of 2010/11;

(vii)  the forecast includes an approved carry forward for Central Repairs and Maintenance as agreed by Full Council;

(viii)  the performance to date with regard to the delivery of the agreed savings proposals approved for 2010/11 as detailed in Appendix 10;

(ix)  the performance against the financial health indicators detailed in Appendix 11;

(x)  the performance outlined in the Quarterly Treasury Management Report attached as Appendix 12 and specifically that the indicator relating to the ratio of financing costs to the net revenue stream has been reviewed and amended to 10.0% as outlined in paragraph 16.  This amendment will be reflected in the next revision to the Treasury Management Strategy; and

(xi)  the current HRA budget monitoring position for 2010/11 as at Month 6 (September), which is a forecast under spend at year end of £1,300 against the budget approved by Council on 17^th February 2010, as outlined in paragraph 17.  This can be compared against the reported over spend at Month 3 of £154,200; an improvement of £152,900.