Issue - meetings

Report FSD15024

The Executive received the fifth budget monitoring report for 2014/15 based on expenditure and activity levels up to the end of January 2015. The report set out cost pressures, significant variations and early warnings - a net underspend of £478k was forecast. The release of £120k grant funding from Central Contingency for Helping People Home and the creation of earmarked reserves for surplus rental income generated from properties used for temporary accommodation purchased from payment in lieu funds and for the Welfare Fund were proposed and the report also recommended that Council establish a Financial Planning/Risk Reserve.

The Portfolio Holder for Education emphasised that schools would see more money in their budgets for the coming year than ever before, and that discussions were on-going to move the Adult Education service to a more secure funding position.

The installation of the RFID system into the remaining nine libraries was questioned, but this was linked to reducing staffing costs. The concern would be brought to the attention of the Portfolio Holder and service manager.

The Leader concluded that the direction of travel was good, but every effort should continue to be made to come in on budget.

RESOLVED that

(1) The projected net underspend on services of £478k forecast based on information as at January 2015 is noted.

(2) The comments from the Executive Director of Education, Care and Health Services, the Director of Transformation and Regeneration and the Executive Director of Environment and Community Services as detailed in sections 3.2, 3.3 and 3.4 of the report be noted.

(3) The release £120k grant funding from Central Contingency for Helping People Home be agreed as detailed in paragraph 3.5.2 of the report.

(4) The projected decrease to the General Fund balance of £1.1m to £18.9m as detailed in paragraph 3.6.1 of the report be noted.

(5) The Prior Year Adjustments totalling £1,220k as detailed in section 3.7 of the report be noted.

(6) The Early Warnings as detailed in section 3.8 of the report be noted.

(7)  The full year cost pressures of £5.1m as detailed in section 3.9 of the report be noted.

(8) The creation of an earmarked reserve for surplus rental income generated from properties used for temporary accommodation purchased with Payment In Lieu funds as detailed in section 4.3 be agreed.

(9) Council be recommended to create a Financial Planning/Risk Reserve as detailed in section 4.4 of the report.

(10) The creation of an earmarked reserve for the Welfare Fund as detailed in section 4.5 of the report be agreed.