Agenda item

[Report to be introduced by the Cabinet  Member for Resources and Culture. Report oft eh Chief Operating Officer. To consider the proposed management actions set out in this report and approve the budget adjustments (virements) in Appendix 1 as required by Financial Regulations.

The Cabinet Member for Resources and Culture introduced the report which set out a range of indicators relevant to the Council’s overall financial health. These included the forecast financial revenue and capital outturns for 2015/16 based on actual performance to 30^th November 2015. The budget challenges outlined in the previous budget monitoring report, considered by Cabinet in November remained. Children’s Services remained focused on reducing spend, including utilising the use of foster carers to bring down placement costs. 

In terms of Adult Social Care overspend, there were measures in place to reduce spend including: care package reviews, contract re-negotiations, reducing dependency of existing clients on existing packages through re-aliment and Improving VFM for spot contracts.

The commitment to a co-production approach remained as this would bring the benefits of services transformation, but at this current time, would delay some savings being achieved. 

There would be another 3 year budget review to make sure the savings proposals coming forward were realistic as possible.

Also there would be actions taken to mitigate against the increasing cost of temporary accommodation. These actions will be assisted, in the long term, by Capital Strategy which will help push down and manage housing cost.

In response to Cllr Engert’s question, concerning the reasons for the less than expected capital receipts for the current year, this was due, mainly, to not yet receiving the capital receipt for Apex House which was still expected for this current year but still could slip to the next financial year.

Agreed that Cllr Engert is provided with details, outside of the meeting, on the placement and duties, of the newly appointed air quality apprentice.

RESOLVED

1.    To note the report and the progress being made against the Council’s 2015/16 budget in respect of net revenue and capital expenditure;

2.    To approve the budget changes (virements) as set out in Appendix 1;

3.    To delegate to the Lead Finance Officer the authority to agree cash flow support for Alexandra Palace in support of the East Wing Restoration Project (Set out in paragraphs 9.7 to 9.10 of the interleaved report).

4.    To maintain under review the key risks and issues identified in this report.

5.    To note that a provisional outturn report will be brought to the March Cabinet meeting.

Reasons for decision

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

The constitution requires Members to approve certain financial transactions such as virements according to approved limits.

Alternative options considered

This report proposes that the Cabinet considers the financial position for 2015/16 in line with existing procedures. It also includes enhanced financial information to give the Cabinet a more rounded view of the Council’s finances.

A risk based approach to budget monitoring has been developed in order to manage the Council’s finances at a time of economic and financial uncertainty including additional financial information.

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