Issue - meetings

The Council considered a report of the Operational Director, Finance, which sought approval to a number of revisions to the Council’s 2016/17 Capital Programme.

RESOLVED: That the revisions to the Council’s 2016/17 Capital Programme, as set out in paragraph 3.2 of the report, be approved.

The Board considered a report of the Operational Director, Finance, which summarised the overall revenue and capital spending position as at 30 June 2016.

In overall terms, revenue expenditure was £0.2m above the budget profile. However, whilst the budget profile was only a guide to expected spending, historically spend was lower in the first quarter of the year and accelerated towards the year-end. Therefore, it was reported that there was a significant risk that the Council may overspend its budget for the year. The budget pressures facing the Council continued to be within the Children and Families Directorate, with an increase in out-of-Borough residential placements and fostering, despite an additional £2.3m of additional budget resources being provided in the past two years.

It was noted that spending on employees at the quarter end was £192,000 below budget profile, mainly due to posts being held vacant and to a staff turnover savings target of 3% being achieved in most departments.

The Capital Programme had been revised to reflect a number of changes in spending profiles and funding as schemes had developed; a list of those schemes that had been revised were set out in the report. It was reported that capital spending at 30 June 2016 totalled £13.538m, which was 99% of planned spending at this stage. This represented 15% of the total Capital Programme of £88.386m.

The Council’s Balance Sheet was monitored regularly in accordance with the Reserves and Balances Strategy which formed part of the Medium Term Financial Strategy. The key reserves and balances had been reviewed and were considered prudent and appropriate at this stage in the financial year and within the current financial climate.

RESOLVED: That

1)    all spending continues to be limited to the absolutely essential;

2)    Strategic Directors ensure overall spending at year-end is within their total operational budget; and

3)    Council be recommended to approve the revised Capital Programme, as set out in Appendix 3, attached to the report.