Issue - meetings

Report of the Chief Finance Officer is circulated.

Cllr John Brady, Cabinet member for Finance, Performance and Risk presented a report which updated members of progress in delivering  savings identified in the 2011-2015 Financial Plan in relation to the 2011/2012 base budgets. The report also advised on any significant new cost pressures or changes since the last report on 26 July 2011. The report also set out the future budget monitoring reporting arrangements to members for the rest of the financial year.

The July cabinet report suggested an overspend / shortfall on the balanced budget of £4.683 million due to cost pressures. Allocation of additional unringfenced grant income reduces this by £2.00 million.

During the period additional cost pressures have been identified of £0.401 million. This is made up of an extra £0.222 million caused by demand for adult care services, an extra 0.139 million caused by the demand on the Looked After Children budget and an extra £0.040 million estimated shortfall of income from car parks.

The risk assessment of savings highlights £0.599 million of savings with red risk attached to them. Work would continue in all of these areas to review and identify required actions and this would inform the next monitoring report.

The early identification of potential issues was part of sound and prudent financial management. Action to address this year’s forecast should be taken where officers have the delegated powers to do so and this is underway.

A question was raised on how the Council intended to manage expenditure on adult care services. Cllr John Thomson, Cabinet member for Adult Care, Communities and Housing explained that one of the Council’s main priorities was to support vulnerable adults and children. The rising expenditure was a reflection of an ageing population and consequently an increase in those requiring more acute support.

Resolved:

That Cabinet:

(a)          Note the outcome of the Period 4 (July 2011) budget monitoring.

(b)          Approve the virement of £2million from additional unringfenced grant income to cover cost pressures identified in adult care services.

Reason for Decision:

To inform effective decision making and ensure a sound financial control environment.