Agenda item

Purpose: To receive the latest period financial performance reports.

 Melanie Ellis introduced the Quarter 3 Financial Performance Report to the Commission. She advised that the forecast revenue position for Quarter 3 was an overspend of £346k which had decreased from the £418k stated in Month 8. Section 6.1 of the report provided status updates in respect of each Directorate.

Gabrielle Esplin explained that the forecast capital spend in the year was currently £33.8 million, against a revised budget of £37.7 million with a further £3.4 million now expected to be re-profiled into 2015/16 (in additional to £2.4 million already re-profiled at the end of Quarter One). Councillor Brian Bedwell asked for an explanation of why projects had required re-profiling into 2015/16. Gabrielle Esplin advised that the projects had been agreed as part of the 2014/15 capital spend but in some instances the scheme of works would continue into 2015/16 and therefore some funds would be re-profiled.

Councillor Lazlo Zverko asked for clarification on item 6.2 within the report. Melanie Ellis explained that the information referred to the period between posts becoming vacant and the period between recruiting new staff.

Councillor Quentin Webb referred to page 12 of the supplementary paper which detailed the completion of the Newbury Museum Project. He asked whether the maintenance and refurbishment of other cultural buildings would be completed by year end. Melanie Ellis advised that the Cultural Service budget was on track for year end which suggested that the projects would be completed.

In response to questions asked on the reported overspend in Adult Services, Melanie Ellis advised that funds would be released from Contingency Funds to counterbalance the overspend. Councillor Jeff Brooks expressed his concern that the report forecasted a zero overspend in Adult Services, albeit in a service where pressures were expected. He was concerned that there appeared to be minimal appetite from Officers to provide true forecasts. Melanie Ellis reassured the Commission that the forecasted overspend was calculated based on the local knowledge of managers within services..

Councillor Brooks suggested that despite the figures shown in the report, the Resources Directorate was likely to make a further £100k underspend by year end. He questioned whether appropriate levels for annual budgets were being set (the Resources position was contrasted with the forecast overspend in Communities) or that accurate forecasting was taking place

Rachael Wardell advised Members that as the forecast spend in Adult Social Care (ASC) reflected unpredictable expenditures and demands, the service utilised a risk fund to counterbalance any overspend. Councillor Brooks asked Officers to detail the proportion of risk funds spent to date.

Councillor Mike Johnston asked whether the ASC risk fund was released back into the Council budget at year end. Rachael Wardell advised that historically the fund had been carried forward which avoided the need to find additional savings within the service. However, it was not known at this stage whether the same would occur this year. To counterbalance overspend in Children’s Services options would be fully considered to use available under spend.

Resolved that:

·         Officers would provide the 2014/2015 Risk fund expenditure to date.

·         Melanie Ellis would provide historic information regarding the Q3 to year end outturn for the Resources Directorate.