Agenda item

To receive a report of the Deputy Leader & Cabinet Member for Finance and Procurement setting out financial monitoring information since the last Quarterly Report was received.

(Item 7- Reportof theDeputy Leader& CabinetMember forFinance and Procurement,Mr John Simmondsand CorporateDirector for Financeand Procurement, Andy Wood)

Cabinet receiveda reportproviding thebudgetmonitoringposition forJuly 2014-15 for bothrevenueand capitalbudgets,includingan updateon keyactivitydata.

The DeputyLeader &Cabinet Memberfor Finance andProcurement introducedthe reportfor Cabinet.  Hereferred tothe concernsexpressed atthe first quarterreport, received atthelastmeetingwhena predictedoverspendof£12million had been reported.  Hewas pleasedto announcethat theoverspend wasnow predictedat a muchlower £4.58millionbefore managementaction andthat following that managementaction itwas expectedthat this wouldfurther reduceto £895k.  At this point in the financial year, those figures were welcomed but the Deputy leader urged cautionand remindedmembers that muchwork wouldbe neededto ensurethat the management action was implemented and had the desired effect.

Revenue

                    i.    Thereport setout intentionsto rephasesome elementsof thebudget, in particularto theKent YouthEmployment Programme,KDAAT andKSAS and these were set out in detail in the recommendations.

                  ii.    Thatin themonth precedingthe reportthere hadbeen a£6.29million reduction in the forecast overspend.

                 iii.    Pressuresof £3.4millionwere reportedfor SocialCare, largelyowing to issuesin    domiciliary    care,    direct    payments    and    supported accommodationand partiallyoffset by underspendson commissioned services, the supporting people programme and drug and alcohol services. Further management action was planned and figures were inclusiveof the drawdownof £4.3million of NHSfunding fromsocial care reserve

                 iv.    SENTransport hadreported  an  overspend  of £2.1million  which  was partially offset by contributionsfrom paymentsfrom otherauthorities, whose lookedafter children wereattending schoolsin Kentand reduced demandfor both hometo schooltransport andthe youngperson’s travel card.

                  v.    Commercial  Services had  reported  a  shortfall  of  £1.3million  in  the expected dividend largelyowing tothe cost ofreorganisation,premises rental and costs associated with closing County Print.

                 vi.    Otherunderspends reported were:

·   GET - just under £3million.  Reasons  included  street  lighting savings and significant savings on new waste contracts

· Public Health - £904,000 owing to staffing vacancies.  These funds if unspent would be transferred to the Public Health Reserve

Capital

                        i.        The   working   budget   was   currently   £382million;   with   a   forecast outturnof £398million:a varianceof £16 millionwhich couldbe largely attributedto a lackof identifiable fundingsources orreductions in external funding.

                       ii.        The  Basic Need  budget  was  reported  as  £9.9million  of  which £3.9millionwas dependenton privateinvestor fundingon whichthe budget was reliant.

The CabinetMember for EconomicDevelopment, MrMark Dance,noted the importanceof continuedsupport for, andutilisationof technologyin supportingthe Council to achieve its budgetary commitments.

It wasRESOLVEDthat

1.    thelatestmonitoringposition onboththerevenue andcapitalbudgets be noted;and

2.    the  changes  to  the  capital  programme  as  detailed  in  the  re po rt  be agreed.