Agenda item - Financial Monitoring Report 2017-18

To receive an update on the year-end forecast for the Council Revenue and Capital Budgets for the year end 2017-18.

Cllr Ray Theodoulou, Cabinet Member for Finance and Change, gave an update on the year end forecast for the 2017-18 County Council’s Revenue and Capital Budgets.

Having considered all of the information, known proposals and the reasons for the recommendations, Cabinet noted the report and

RESOLVED to: -

1) Note the forecast revenue year end position as at the end of November 2017 for the 2017/18 financial year of a net £0.036 million overspend;

2) Approve the creation of a “Minimum Wage” Reserve, and the transfer of £1 million from the revenue Adult Social Care budgets into the reserve;

3) Note the proposed draw down of £0.325 million from the Gloucestershire Business Rates Pool Reserve as approved by the Gloucestershire Economic Growth Joint Committee (GEGJC) under delegated powers;

4) Note the forecast capital year end position as at the end of November 2017 of £109.277 million against a re-profiled budget of £106.864 million, resulting from additional planned scheme spend of £2.168 million with additional funding expected to be confirmed within the next month;

5) Note the transfer of a £0.03 million revenue contribution to capital from the previously approved Lock House drainage scheme,(which is no longer required), to the Slimbridge Drainage Scheme;

6) Approve the revenue contribution to capital of £0.150 million from the revenue Catering budget to the school Kitchen Upgrade capital scheme;

7) Approve the revenue contribution to capital of £0.063 million from the revenue Capital Maintenance budget towards the Archives capital project budget;

8) Approve the addition of £0.141 million developer contributions to the Shurdington Primary School scheme and the transfer of £0.141 million Basic Need Grant to the unallocated Basic Need Grant budget;

9) Approve the allocation of £0.208 million s106 contribution towards a new classroom block at Cirencester Deer Park School;

10)Approves the addition of £0.139 million developer contributions to the Cleeve School scheme;

11)Approve a new scheme for an outdoor learning facility at Mitton Manor Primary School, funded by £0.026 million developer contribution;

12)Approve an increase of £6.345 million in the Highways Capital budget funded from a variety of sources as outlined in the report;

13)Approves an additional increase of £0.04 million to the Archives capital project budget funded from a donation from Gloucestershire Diocese;

14)Approves a new scheme for a Wi-Fi and study area at Cheltenham Library funded by £0.016 million developer contribution;

15)Notes the overall increase to the Capital programme taking into account the above changes of £7.128 million.

Cllr Ray Theodoulou, Cabinet Member for Finance and Change, gave an update on the year end forecast for the 2017-18 County Council’s Revenue and Capital Budgets. Cllr Theodoulou reported a small overspend for the forecast revenue year end position of £0.036 million.

The following key variances were noted: -.

Adult Social Care

Reporting a year end underspend within the Adult Social Care Budget, (following use of the Adult Social Care Levy and Adult Social Care Support Grant), Cllr Theodoulou proposed a ‘Minimum Wage Reserve’ be created, and transfer of £1m from the revenue Adult Social Care Budgets. The reserve would be used to address backdated sleeping in allowances.

Children and Families

Cllr Theodoulou reported a forecast overspend of £9.32 million. He stated that this position had been prior to applying £3.05 million from the Vulnerable Children’s Reserve, which, when applied, had reduced the overspend to £6.27 million. Cllr Theodoulou confirmed that the Children & Families forecast had decreased by £0.11 since last reported, largely due to fewer commitments within disability services.

Members noted that the current financial pressures were mainly due to the impact of an increased number of children coming into care and increasing pressures within the external agency placement and safeguarding budgets. It was noted that the number of children coming into care had increased from 479 in April 2014 to 650 in December 2017.

Technical and Cross Cutting

Financial pressures within the Children & Families Budget were currently being offset by positive variances within corporate budgets. In making his recommendations, Cllr Theodoulou requested cabinet note the proposed transfer of £0.325 million from the Gloucestershire Business Rate Pool Reserve that had been approved by Gloucestershire Economic Growth Joint Committee (GEGJC) under delegated powers.

Capital

Cllr Theodoulou reported a forecast capital year end position of £109.032 million against a re-profiled budget of £106.864 million. Referring to the revenue contributions and external contributions outlined within the covering report, Cllr Theodoulou requested cabinet approve increases totalling £7.128 million.

Cllr Theodoulou referred to the due regard statement that accompanied the report and confirmed that the areas of major revenue risk to the council related to the care of the most vulnerable children and adults within the community. He informed members that current pressures on these demand-led budget areas continued to be subject to significant volatility arising from significant changes in numbers and care needs.