[Report of the Interim Chief Finance Officer. To be introduced by the Cabinet Member for Finance and Health.] Cabinet will be provided with an update on the budget performance for the year to date and likely financial outturn position for 2017/18.
The Cabinet Member for Finance and Health introduced the report which set out the 2017/18 quarter 2 financial position for the Council; including the Revenue, Capital, Housing Revenue Account(HRA) and Dedicated Schools Grant(DSG) Budgets.
The Cabinet Member for Finance and Health summarised the quarter 2 position as follows:
· An overspend of £6.6m General Fund
· An underspend £200k on the HRA [ Housing Revenue Account]
· Priority 1 budget position as a significant improvement with a fall in projected overspend of £1m
· Priority 2 has a worsening budget position of £2m in the budget position which could lead to an overspend of up to £3,4m for this financial year.
· Services projecting that 49% of 2017/18 of savings will be achieved – This was a worsening from 67% position reported in quarter 1 but still in line with assessment for the MTFS which had 67% of savings rated as amber or red.
In response to questions from Councillor Morris the following information was noted:
1. To note the Q2 forecast revenue outturn for the General Fund of £6.6m overspend, including corporate items. (Section 5, Table 1 and Appendix 1);
2. To note the net HRA forecast position of £0.2m underspend. (Section 5, Table 2 and Appendix 2);
3. To note the latest capital position with forecast capital expenditure of £101.59m in 2017/18. (Section 7, Table 4);
4. To note the risks and mitigating actions identified in the report in the context of the Council’s on-going budget management responsibilities/savings, as detailed in Appendices 3 (a) (g);
5. To note the measures in place to reduce overspend in service areas; and
6. To approve and note the budget virements set out in Appendix 4 of this report.
Reason 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 2017/18 Quarter 1 budget monitoring financial report. As such, there are no alternative options.