4 Revenue and Capital Financial Monitoring Report for the period up to 31st July 2018 (Period 4) PDF 177 KB
(i) informs Full Cabinet of the financial position as at 31st July 2018 (Period 4) against Revenue and Capital budgets and the latest Red, Amber, Green (RAG) ratings for the delivery of the current Medium Term Financial Strategy (MTFS) savings 2018/19 to 2020/21. See Appendix A for more detail;
(ii) informs Full Cabinet with a summary of the individual Cabinet portfolio holder pressures and mitigations for the period of the MTFS 2018/19 to 2020/21 with headlines for any key emerging pressures and proposed mitigations. See Appendix C for more details;
(iii) summarises the reports to the individual Cabinet portfolio meetings during September 2018; and
(iv) provides details of all the budget virements which have taken place up to Period 4 of this financial year, as required by Financial Regulations and the revised budget resulting from those virements, which Members are asked to approve. See Appendix B for more detail.
The Cabinet was informed of the financial position as at 31st July 2018 (Period 4) against Revenue and Capital budgets. The report also detailed a summary of the individual Cabinet Portfolio pressures and mitigations for the period of the Medium Term Financial Strategy (MTFS) 2018/19 to 2020/21 as well as all budget virements that had taken place up to Period 4 of this financial year.
In considering the report, Members attention was specifically drawn to the following:
· There was a forecast favourable variance for Core Council of (£0.413 million), and an adverse variance of £1.579 million for the Dedicated Schools Grant (DSG), to arrive at an overall adverse variance of £1.166 million.
· The Core Council revenue budget forecast included an adverse variance of £0.161 million for Children, Education and Skills portfolio, which was offset by a favourable variance of (£0.574 million) for the Resources and Delivering Value portfolio. The Adult Social Care and Health portfolio showed a net nil variance with the planned use of the contingency funding and for the portfolios which were linked to the Managed Growth and Communities Directorate, their combined variances forecasted a net nil position overall through the use of reserve funding.
· The Children, Education and Skills portfolio financial position was currently the subject of a detailed financial review, the outcome of which would be reported to Members of the Budget Strategy group as part of the 2019/20 budget process.
· The total Capital Programme budget was currently £46.253 million for 2018/19 (excluding the HRA capital programme). Actual expenditure to the end of July was £3.068 million. There was a forecast favourable variance of (£6.627 million) which was summarised by Cabinet Portfolio within the report itself in greater detail.
· The 2018/19 (Year 1) budget included savings of £6.703 million (after repayments was £2.606 million) in line with the current MTFS. The latest position showed that 71% were RAG rated as Green with 29% RAG rated as either Red or Amber, compared with the 2017/18 position this time last year of 76% and 24% respectively.
· The RAG delivery status at this point this year compared to this point last year was marginally worse for Year 1, but better for Years 2 and 3.
(i) To note the current financial position; and
(ii) To approve the budget virements made up to Period 4 of 2018/19, as summarised in Appendix B to the report.