Issue - meetings

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Resources and Culture.] This report provides an updated position based on budget managers period 10 projections for the 2015/16 revenue and capital outturn position.

The Cabinet Member for Resources and Culture introduced the report which provided an updated position based on budget managers period 10 projections for the 2015/16 revenue and capital outturn position. The gross position on the General Fund was an estimated overspend of £11.1m. The Risk Reserve of £2.2m had been applied to provide mitigation and, as agreed at the November Cabinet meeting, a further £5m of reserves was to be used to manage this position further. The revised position was a net forecast overspend of £3.9m. The Cabinet Member advised that, as in previous years, this position may be reduced further during the summer when the final outturn report was produced. Cabinet noted that unearmarked reserves would need to be used to reduce this figure further.

RESOLVED

1.    To note the report and the Council’s 2015/16 provisional outturn position in respect of net revenue and capital expenditure;

2.    To agree the principle that the carry forward of resources will only be permitted once agreed by the Chief Finance Officer and where the expenditure is backed by an approved reserve or external funding source; and

3.    To maintain under review the key risks and issues identified in this report in the context of the Council’s on-going budget management responsibilities.

Reasons for decision

Members’ involvement in financial monitoring is an essential part of delivering the Council’s priorities.

Alternative options considered

The report proposed that the Cabinet considered the provisional outturn position for 2015/16. The reporting of the Council’s outturn and management of financial resources is a key part of the role of the Chief Finance Officer (Section 151 Officer) and no other options were therefore been considered.

At this stage of the year the impact of management action on the final outturn position was limited however, given the overall position and the further savings to be delivered in 2016/17 it was still important that corrective action was identified to bring expenditure back into line with the budget.