Issue - meetings

Report of the Cabinet Member Resources, Leisure and Culture, detailing General Fund Revenue Financial Monitoring for the period to the end of December 2011, attached.

On consideration of the report of the Cabinet Member for Resources, Leisure and Culture and having received representations from Members of the Council, Cabinet noted

(i)  the current General Fund revenue position for 2011/12 as at Month 9 (December), which is a forecast under spend at year end of £141,000against the budget approved by Council on 16 February 2011, as outlined in paragraph 4.  This can be compared against the reported under spend at Month 6 of £20,000; an improvement of £121,000;

(ii)  that the baseline forecast over spend for portfolios is £2.1M;

(iii)  that portfolios plan 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)  that the Risk Fund includes £1.9M to cover service related risks, and that the estimated draw at Month 9 is £0.8M to cover expenditure which is included within the baseline forecast portfolio over spend of £2.1M.  The Risk Fund has been reviewed and it has been assumed that £204,200 of the Fund will not be required in 2011/12;

(v)  that the Revenue Development Fund totals £1.2M.  The Revenue Development Fund has been reviewed and it has been assumed that £100,000 of the Fund will not be required in 2011/12;

(vi)  Note that contingency of £250,000 which was originally built into the 2011/12 budget has been fully utilised;

(vii)  the revised minimum balance of £5.0M, subject to approval by Council on 15 February 2012, as recommended by the Chief Financial Officer in line with good practice guidance;

(viii)  the forecast level of balances which will not fall below the revised minimum level of £5.0M in the medium term based on the current forecast;

(ix)  the use of £563,000 of in year under spend to increase the Interest Equalisation Reserve in 2011/12 to ensure that adequate provision is made for the future increase in interest costs associated with the ongoing utilisation of variable interest rates;

(x)  the performance to date with regard to the delivery of the agreed savings proposals approved for 2011/12 as detailed in Appendix 9;

(xi)  the performance against the financial health indicators detailed in Appendix 10;

(xii)  the performance outlined in the Quarterly Treasury Management Report attached as Appendix 11; and

(xiii)  the current Housing Revenue Account budget monitoring position for 2011/12 as at Month 9 (December), which is a forecast under spend at year end of £4,400 against the revised budget which will presented to Council for approval on 15 February 2012 and as outlined in paragraph 37.