Issue - meetings

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Finance and Health]Cabinet will consider a Monitoring report on the forecast of spend against the budget  and any  required decisions  on re- profiling and adjustment of  capital expenditure.

The Cabinet Member for Finance and Health introduced the report which set out the 2016/17 Period 5 financial position; including Revenue, Capital, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG).

Cabinet noted the reduction in the overspend of £5m, since quarter 1, with improvements in the Children’s Services and Adult’s Services budgets together with central controls on spend which were beginning to have an impact.

In response to Councillor Engert’s questions, the following information was noted:

·         The £0.6m additional capital allocation for Hornsey Town Hall was not to allow new spending but to rectify the underestimated budget allocation. The additional funding was needed to pay for security and maintenance cost.

·         The corporate contingencies referred to in section 6.3, were not funding released from reserves but where the cost of borrowing had been lower than anticipated, allowing the release of funds allocated for borrowing costs.

·         The 0.2m increased overspend for Osborne Grove was related to a combination of issues. This included the ongoing staffing and restructure proposals that were in the process of being implemented, along with the process of finding a ‘not for profit’ provider which was taking longer than anticipated.

RESOLVED

1.    To consider the report and the Council’s 2016/17 Period 5 financial position in respect of revenue and capital expenditure;

2.    To note the risks and mitigating actions, including spend controls identified in this report in the context of the Council’s on-going budget management responsibilities; and

3.    To approve £580k for the Hornsey Town Hall capital budget.  There are sufficient funds in Capital programme to cover this cost

Reasons for decision

A strong financial management framework, including oversight by Members and senior management, is an essential part of delivering the Council’s priorities and statutory duties.

Alternative options considered

This is the 2016/17 Period 5 Financial Report.  As such, there are no alternative options.