Agenda item

Purpose: To receive the latest period revenue and capital budget reports.

The Commission considered a report (Agenda Item 13) concerning the Provisional Financial Outturn Report 2014/15. Andy Walker advised Members that figures could change as a result of closedown and the External Audit.

The report stated that the total revenue expenditure in 2014/15 was £121 million with a provisional year end over spend of £30k or 0.02% of net budget – which lead to a reduction in the general fund of £30k. Andy Walker highlighted that Children’s Services report an overspend of £946k as a result of a higher than budgeted placement expenditure and agency usage, with 34 additional children receiving care packages funded from the placement budget at 31.3.2015 compared with the same time last year.

Councillor Mike Johnston was pleased to read the provisional year end overspend was on £30k. However, he challenged whether the expenditure had been re-profiled into 2015/16 which could exert budgetary pressures further down the line. Andy Walker advised that spending was controlled, and in some cases slowed down (e.g. within the Environment Directorate - point 4.9), in order to assist the Council’s overall budget position.

Councillor Alan Macro highlighted the reported under spend within the Resources Directorate, as stated within point 1.7 of the report. He asked whether there were plans to review the budget allocation to the service in light of the provisional figures. Andy Day advised that a large portion of the under spend had been generated through the increased income from land charges. The service was actively promoting the Council’s services which had resulted in an increased volume of enquiries. In addition, recent support to the Local Fire Authority provided further income.

Members discussed the longer term impacts associated with the reduced investment within early intervention and support services in Children’s Services. Councillor Macro queried whether the decision would result pressures longer term. Rachael Wardell advised that placements had been a financial pressure point for the service over the past three financial years as numbers of children entering the care system dramatically increased. Members heard that it was difficult to demonstrate the direct link between the failings of a prevention service and a child entering the care system. Therefore, the service could not evidence that reduced investment in early prevention measures would exert pressure elsewhere. However, the service could evidence provisions in place for planned and unplanned use of care services.

Rachael Wardell was confident that the projectorary spend for Children’s Services was decreasing and stated that it might be helpful if Members could see the report.

In response to points raised by the Commission the following was discussed:

·         Underspend in respect of Capital Expenditure would be carried forward to meet ongoing capital commitments. These commitments referred to ongoing projects where further work would be required during 2015/16.

·         The expenditure associated with the parliamentary Elections was funded by Government. The budget for District Elections was accrued year on year and funded by the Council.

·         It would be useful if Members received an awareness session in respect of budget setting and capital projects. Andy Walker agreed that a session could be provided.

Councillor Rick Jones asked whether budgets would be reviewed following finalisation of the outturn report. He was conscious of the time lapsed already and was curious to know whether changes could be made within the financial year. Andy Walker advised that the budgets were set in March 2015 but each area was closely monitored. He stated that there were no significant areas of concern at this stage.

Resolved that:

(1) Members would receive finance awareness training.        

(2)The report was noted.