Agenda item

The Head of Financial Reporting introduced a report that provided the Committee with the latest forecast financial information to the end of February 2017.

The Council was forecasting a General Fund revenue underspend of £18,000 at Month 11, which was a considerable improvement of £436,000 on the forecast overspend reported for the previous month.  The overspend in Adult Social Care of £859,000 remained due to the increasing levels of need for existing clients receiving domiciliary care.  However, this was offset by underspends in other directorates with particular improvement reported in additional investment income leading to the overall forecast to balance the budget for the year.  Slippage in the Capital Programme was 11% and the Housing Revenue Account (HRA) was forecasting an underspend.

Members asked whether the overspend in Adult Social Care would have an impact on the budget for the next financial year.  The Officer responded that the continued pressures in Adult Social Care had been reflected in the 2017-18 revenue budget and the Council would start from a more realistic position, however, it was recognised that as a demand led service it was difficult to accurately predict the exact position over the coming year.  Clarification was sought on the reasons for the HRA underspend and it was noted that this was primarily due to delays in some works.

The Committee discussed a number of aspects of the Capital Programme set out in Appendix B to the report.  Slippage in a number of projects was reported and it was requested that explanatory notes to be incorporated into future reported to summarise the reasons for such delays.  A Member sought clarification on scheme PO60 Station Forecourt and further information as to which station forecourt this referred to was requested.  Members were assured that the Capital Strategy Board closely monitored all projects and the level of slippage was significantly reduced compared to previous years as result of the management action that had been taken.

At the end of the discussion, the Committee noted the report.

Resolved –  That details of the latest financial forecast be noted.