Agenda item

[Report of the Interim Chief Finance Officer. To be introduced by the Cabinet Member for Finance and Health.]This report will  provide Cabinet with an update on 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 3 (Q3) financial position for the Council; including the Revenue, Capital, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) budgets.

Most of the information contained in the report had been communicated in the in budget report to full Council in February. Since the previous quarterly update, there had been a slight budget improvement but the General Fund was projecting an overspend of £5.4m a there was an underspend in HRA of £1.8m

Cabinet were asked to consider the proposed management actions set out in the report and to approve the budget adjustments (virements) in Appendix 4 as required by Financial Regulations.

In response to questions from Councillor Engert

• There had been some over optimism when putting forward some savings in the budget last year. However, the recent budget report had factored this, and in particular ,there were no new savings for Priority 1 put forward for 2018/19 and savings for 2018/19 -2019/20 would be monitored closely. Service areas had focused on initiatives agreed by Cabinet such as early help, prevention and using less agency staff. Lessons had been learnt but there was a growth in the numbers of Looked after Children in Haringey and across the country.  Therefore, it was important to keep in mind the context of austerity and cuts when considering this service area.

• In relation to the increased budget allocation for the relocation of the Civic Centre, this was associated with the Registrar’s office move to Woodside House. The refurbishment was required to allow this commercial service to provide weddings at Woodside House in the summer.

• The Cabinet Member for Children and Families further highlighted that, where there was a rising demand in Children’s Service, the Council must ensure children are safe and there are costs involved in this responsibility. However, there were measures in place to ensure the budget remains stable.

• The Inclusion Service was a new service, that had started trading in September 2017 and the Cabinet Member for Children and Families would write to Cllr Engert on the expected bookings.

RESOLVED

1. To note the Q3 forecast revenue outturn for the General Fund of £5.4m overspend, including corporate items and the proposed mitigation to deliver a balanced outturn position. (Sections 6 & 7, Table 1 and Appendix 1);
2. To note the net HRA forecast position of £1.8m underspend. (Section 7, Table 2 and Appendix 2);
3. To note the position on DSG spend during 2017/18 and forecast closing reserve figure (Section 8, Table 3);
4. To note the latest capital position with forecast capital expenditure of £97.3m in 2017/18. (Section 9, Table 4);
5. 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);
6. To note the measures in place to reduce overspend in service areas; and
7. 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 3 budget monitoring financial report.  As such, there are no alternative options.