Issue - meetings

Division/Wards Affected: All

Purpose:

The purpose of this report is to provide Members with information on the forecast revenue outturn position of the Authority at the end of period 2 which represents month 6 financial information for the 2016/17 financial year

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 Details: markhowcroft@monmouthshire.gov.uk

That Cabinet notes the extent of forecast revenue overspend at period 2 of £839,000, an improvement of £529,000 on previous reported position at period 1.

That Cabinet expects Chief Officers to continue to review the levels of over and underspends and reallocate budgets to reduce the extent of compensatory positions needing to be reported from month 6 onwards.

That Cabinet appreciates the extent of predicted schools reserve usage and an anticipation that a further 4 schools will be in a deficit position by end of 2016-17.

That Cabinet approves a caveated use of reserves to finance £318,000 employment tribunal costs if the Council’s budget is not able to absorb the effect of this extraordinary expenditure over the remaining 6 months of financial year.

That Cabinet considers the capital monitoring, specific over and underspends, and importantly that Cabinet recognises the risk associated with having to rely on a use of capital receipts in the year of sale and the potential for this to have significant revenue pressures should receipts be delayed and temporary borrowing be required.