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Agenda item

July Financial Monitoring Report 2016/17

Report of the Strategic Director of Finance and Customer Services

 

Cabinet Member:     Councillor Alam

Commissioner:         Myers (in advisory role)

 

Recommendations:

 

  1. That the current forecast overspend after management actions of £8.272m for 2016/17 be noted. (Paragraph 3.2)

 

  1. That the need for additional management actions to be urgently developed, agreed and implemented and for these to be documented in future Cabinet Budget Monitoring Reports be endorsed.

 

  1. That Directorate management actions to mitigate forecast overspends be clearly and comprehensively documented, including an evaluation of the likely financial impact of these actions (quality assured by Finance Business Partners), and a detailed implementation plan be produced which is regularly reviewed by each Directorate Leadership Team. 

 

  1. That any additional actions be recommended by Cabinet which could be implemented to help manage down the current forecast overspend.

 

  1. That a recovery strategy for the forecast overspend on the Dedicated Schools Grant High Needs Block to be brought back to Cabinet on 10th October 2016. (Paragraph 3.11)

 

  1. That the Strategic Director of Finance & Customer Services progress the appropriate level of budget realignment in respect of the Children’s residential care review, to be contained within the Looked After Children’s Service. (Paragraph 3.8)   

 

  1. That approval be given to the alternate actions where these have been implemented in respect of 2016/17 approved Budget Savings (Appendix 3), noting that where they are non-recurrent the proposed method of delivering the approved saving value will be included in future budget monitoring reports for consideration and approval.

 

  1. That a further Medium Term Financial Strategy (MTFS) update report be brought to Cabinet in October and will include a request for approval of the realignment of any savings already agreed by Council for the period 2016/17 to 2018/19 which are now proposed to be delivered via alternate means, or to a different timeline to that originally planned (budgeted). (Paragraph 2.3) 

 

  1. That the progress on delivering 2016/17 budget savings proposals agreed by Cabinet in the 2016/17 Budget Round where the majority of savings are on track for delivery be noted. (Appendix 2). 

 

  1. That approval be given to the awarding of tenders in respect of Capital Programme works (included in the Capital Strategy – approved on 2nd March 2016) as set out in paragraphs 3.34 and 3.35 of this report.

 

 

 

Minutes:

Consideration was given to a report which set out the financial position at the end of July 2016 and was based on actual costs and income for the first four months of the financial year and forecast costs and income for the remaining eight months of the financial year.

 

It was reported that the current position showed a forecast revenue overspend of £8.272 after already identified management actions totalling £4.664m were taken into account. The forecast overspend was set against a backdrop of the Council successfully delivering savings of £117m over the previous five years and having to save a further £21million in 2016/17.

 

The report set out the key pressures contributing to the forecast overspend and indicated that directorates were in the process of identifying and implementing additional management actions to further mitigate the forecast overspend and to tightly control spend until the end of March 2017.

 

It was noted that future budget monitoring reports would cover both revenue and capital budgets.

 

Resolved:-

 

1.    That the current forecast overspend after management actions of £8.272m for 2016/17 be noted. (Paragraph 3.2)

 

2.    That the need for additional management actions to be urgently developed, agreed and implemented and for these to be documented in future Cabinet Budget Monitoring Reports be endorsed.

 

3.    That Directorate management actions to mitigate forecast overspends be clearly and comprehensively documented, including an evaluation of the likely financial impact of these actions (quality assured by Finance Business Partners), and a detailed implementation plan be produced which is regularly reviewed by each Directorate Leadership Team. 

 

4.    That any additional actions be recommended by Cabinet which could be implemented to help manage down the current forecast overspend.

 

5.    That a recovery strategy for the forecast overspend on the Dedicated Schools Grant High Needs Block to be brought back to Cabinet on 10th October 2016. (Paragraph 3.11)

 

6.    That the Strategic Director of Finance & Customer Services progress the appropriate level of budget realignment in respect of the Children’s residential care review, to be contained within the Looked After Children’s Service. (Paragraph 3.8)   

 

7.    That approval be given to the alternate actions where these have been implemented in respect of 2016/17 approved Budget Savings (Appendix 3), noting that where they are non-recurrent the proposed method of delivering the approved saving value will be included in future budget monitoring reports for consideration and approval.

 

8.    That a further Medium Term Financial Strategy (MTFS) update report be brought to Cabinet in October and will include a request for approval of the realignment of any savings already agreed by Council for the period 2016/17 to 2018/19 which are now proposed to be delivered via alternate means, or to a different timeline to that originally planned (budgeted).

 

9.    That the progress on delivering 2016/17 budget savings proposals agreed by Cabinet in the 2016/17 Budget Round where the majority of savings are on track for delivery be noted. 

 

10.That approval be given to the awarding of tenders in respect of Capital Programme works (included in the Capital Strategy – approved on 2nd March 2016) as set out in paragraphs 3.34 and 3.35 of the report.

Supporting documents: