Issue - meetings

Report RES11142

Consideration was given to the fourth budget monitoring report for 2011/12 based on activity levels up to October 2011.  The report also highlighted any significant variations that would impact on future years as well as early warnings that could impact on the final year end position.  Members noted that a projected net underspend of £3,470k was forecast based on information as at October 2011.  The Finance Director commented that the main cost pressures on the budget remained largely the same in respect of the Children & Young People and Adult & Community Services.  However, the key issue would be the full year effects on the budget which would be reported to the next meeting of the Executive.

In response to a member question the Director confirmed that although notification of the grant settlement had been received this was still subject to final confirmation.  He went on to briefly outline three main changes in respect of the government deferring further top-slicing of Bromley’s Local Authority Central Services Education Grant (LACSEG) until 2013/14, additional Early Years Intervention Grant which may be required to fund new responsibilities and the new issue of any Council Tax increase exceeding 3½% in 2012/13 triggering an automatic referendum for registered electors.  Comment was made on the likely cost of a referendum which could be in excess of £400,000 but that the total cost involved would need to take into account such issues as rebilling. The next draft 2012/13 Budget report to the Executive would explain the situation in greater detail as part of the build up to setting the Council Tax at the Executive meeting in February 2012. 

RESOLVED that

(1)   the latest financial position be noted including the projected net underspend of £3,470k forecast, based on information as at October 2011, consisting of a £967k underspend on services; additional grant income of £319k; £700k improved forecast for recovery of Heritable Bank investment; £300k increased interest earnings and a projected underspend on the Central Contingency provision of £1,184k;

(2)  the following be noted - a projected reduction to the General Fund balance of £981k after allowing for the underspends detailed in (1) above, offset by a contribution to the Severance Fund of £3,500k and carry forwards of £951k funded from underspends in 2010/11;

(3)  the comments from the Director of Children and Young People and the Adult and Community Services Management Team detailed in sections 3.3 and 3.4 of the report be noted;

(4)  approval be given to release £100k for fuel costs from the Central Contingency as detailed in section 3.5.2 of the report;

(5)  the early warnings detailed in paragraph 3.12 of the report and in particular the future uncertainty relating to the top slicing of funding for Academies be noted; and

(6)  it was noted that there were items elsewhere on the agenda requesting approval to utilise in year underspends and grant funding which had not been reflected within this report (paragraph 3.2 refers) pending approval.

Report RES11113

The Executive received the third budget monitoring report for 2011/12 based on expenditure and activity levels up to August 2011. The report also highlighted significant budget variations which would impact on future years and early warnings for the final year end position.  Members noted that overall a projected underspend of £2,427k was forecast based on information as at August 2011.  There would be an overall reduction in general fund balances of £2,042k after allowing for the contribution to the Severance Fund of £3,500k and carry forwards funded from underspends in 2010/11. The main cost pressures in year continued to relate to Children & Young People and Adult & Community Services as detailed in the report.  The Chairman reemphasised the need for continued vigilance to keep spending within budget. 

RESOLVED that

(1) the latest financial position be noted, including the projected net underspend of £2,427k forecast, based on information as at August 2011, consisting of a £401k underspend on services, additional grant income of £319k, £700k improved forecast for recovery of Heritable Bank investment and a projected underspend on the Central Contingency provision of £1,007k;

(2)  the projected reduction to the General Fund balance of £2,024k after allowing for the underspends detailed above be noted, offset by a contribution to the Severance Fund of £3,500k and carry forwards funded from underspends in 2010/11 as detailed in paragraph 3.9 of the report;

(3)  the comments from the Director of Children and Young People and the Adult and Community Services Management Team as detailed in sections 3.3 and 3.4 of the report be noted; and

(4) the early warnings detailed in paragraph 3.12 be noted in particular the uncertainty relating to the top slicing of funding for Academies.