Agenda item

Julie Evans, Director of Resources, outlined the latest financial position as at the end of May 2011.  It was outlined that there was currently a forecast overspend for the 2011/12 general fund at the end of 31 May 2011 of £632,000.  This level of overspend related primarily to the costs of Looked After Children which had been anticipated and Members had agreed to a £600,000 contingency sum to be allocated to this area.  It was noted that members had requested a full review of all associated costs in this area to ensure adequate resources continued to be maintained. 

It was highlighted that another forecast variance from budget was a £13,000 under spend within the Resources and Regeneration directorate.  The Committee noted that the position as at the end of May 2011 had left an overall headline over spend of £632,000 against the general fund revenue account. 

A Member queried the over spend position relating to Education and Children’s Services. The Director explained that this was due to the costs associated with the Improvement Plan following the recent Ofsted inspection and that the £150,000 costs would be met through earmarked reserves.

A Member requested that further details regarding the potential reforms to the Housing Revenue Account Subsidy System and potential flexibilities in how the Council may spend housing income and set rents be provided. It was agreed that the matter would be added to the work programme for the Committee to consider at a future meeting.

Resolved  – That the report be noted with regard to identified areas of risk and emerging issues and that the contents of the report be included for inclusion to the Cabinet meeting on 18^th July 2011.