Issue - meetings

Divisions/Wards affected: All

Purpose: The purpose of this report is to provide Members with information on the revenue and capital outturn position of the Authority at the end of reporting period 1 which represents the financial outturn position for the 2018/19 financial year based on May inclusive activities.

This report will also be considered by Select Committees as part of their responsibility to,

•     assess whether effective budget monitoring is taking place,

•     monitor the extent to which budgets are spent in accordance with agreed budget and policy framework,

•     challenge the reasonableness of projected over or underspends, and

•     monitor the achievement of predicted efficiency gains or progress in relation to savings proposals.

Author: Mark Howcroft – Assistant Head of Finance

Contact: markhowcroft@monmouthshire.gov.uk

That Members consider a net revenue forecast of £471,000 overspend.

That Members consider a capital outturn spend of £35.7m, which accords with budget provision for the year, after proposed slippage of £75,000. This describes a breakeven position not uncommon for this early in the year, although there is a potential for additional 21c schools costs in respect of additional asbestos removal and treatment costs not anticipated, which colleagues indicate could be the order of £350,000.

That Cabinet considers the use of reserves proposed in para 3.8.1,

That Members note that the low level of earmarked reserves will notably reduce the flexibility the Council has in meeting the challenges of scare resources going forward.

That Members note the extent of movements in individual budgeted draws on school balances, and acknowledge a reported net forecast deficit of £622k resulting, and support the amendments to MCC’s Fairer Funding Regulations as described in para 3.8.13 for onward engagement with schools forum and governing bodies