Issue - meetings

(Report of the Director of Corporate Resources. To be introduced by the Cabinet Member for Finance and Carbon Reduction). To consider the forecast financial revenue and capital outturns for 2012/13 based on actual performance up to the end of January 2013 (Period 10) and the proposed management actions and approve budget adjustments (virements) in accordance with the Council’s Financial Regulations.

Cabinet considered a report, introduced by the Cabinet Member for Finance and Carbon Reduction, which set out the forecast financial revenue and capital outturns for 2012/13, based on actual performance up to the end January 2013. The report also proposed management actions and approval of budget adjustments (virements) in accordance with the Council’s Financial Regulations.

In response to a question, it was noted that new regulations were coming into force from April 2013 to tighten the rules around the Scheme of Financing for Schools and these would enable the Local Authority to intervene at an earlier stage where a school’s budget was in deficit.

Cabinet was reminded that the report was for the third quarter of the current financial year and as such did not present the year-end financial information. Therefore the areas of under spend detailed in the report were likely to change by the end of the financial year.

RESOLVED:

1. That the projected outturn position against the Council’s 2012/13 revenue and capital budgets be noted.

2. That the proposed Transfers to Reserves set out in section 6 of the report be noted.

3. That the budget changes (virements) set out in Appendix 3 of the report be approved.

Alternative Options Considered

The regular reporting to Cabinet on the Council’s overall financial position is an important element of the overall Medium Term Financial Planning process. A risk based approach to budget monitoring has been developed in order to manage the Council’s finances in a time of economic and financial uncertainty.

Cabinet could choose to adopt a less rigorous regime and examine the financial position at a later stage. Projections could be marginally more accurate if a delayed approach was adopted, but there would be less time for robust development and consideration of management action.

Reasons for Decision

Financial regulations require proposed budget changes (virements) to be approved by Cabinet and these are shown in Appendix 3 of the report.