Agenda item

(To receive a report from the Executive Director of Finance and Public Protection, which provides an update on spending compared with budgets for the financial year which started on 1 April 2018)

That the current position on the revenue and capital budgets be noted.

A report from the Executive Director of Finance and Public Protection was considered, which provided an update on spending compared with budgets for the financial year which started on 1 April 2018.

The tables in the report had shown the actual income and expenditure for four months of the financial year, along with the projections for spending and a comparison of the projections against the approved budgets.

The County Finance Officer advised that the total revenue spending was predicted to be £3.738m less than the total budget (excluded projected underspending on Schools budgets); general reserves at the year-end were forecast to be within the 2.5% to 3.5% range; and net capital spending was projected to be £0.656m more than the budget at the end of the financial year. 

The Executive was directed to Table A (Position as at 31 July 2018) on page 13 of the report, which detailed Revenue expenditure.  The following points were noted: -

·       Over its four commissioning strategies, Children's Services was currently forecasting an underspend of £1.177m;

·       Readiness for Adult Life commissioning strategy was forecasting an underspend of £0.361m.  The majority of the underspend had related to the Local Authority's legal duty for Supported Accommodation;

·       The Children are Safe and Healthy commissioning strategy was forecasting an underspend of £0.900m.  The underspend had related to the funding of central staffing costs temporarily in 2018/19 from grants, and the lower occupancy rates at the Beacon development which was currently being reviewed;

·       Enablers and Support to Council's Outcomes was currently forecasting an underspend of £1.950m.  It was highlighted that a number of ICT projects were underway and the completion of those projects would reduce the underspend;

·       'Other Budgets' was currently projecting an underspend of £0.610m.  The vast majority of the underspend was attributed to the National Living Wage.  Following initial work during the financial year, it was anticipated that this element of the budget would not be required during the financial year 2018/19, as it was now clear sufficient funding had already been provided in service budgets. 

Table B (Position as at 31 July 2018) on page 21 of the report detailed the capital programme.  It was highlighted that the Historic Lincoln project was currently showing an overspend of £1.338m.  The final claim for Heritage Lottery Funding for Lincoln Castle Revealed would be submitted shortly, and all final accounts would need to be settled by this time.  Officers were working to ensure that all grant income was received, and a final budget position would be known at that stage.

The Chairman of the Overview and Scrutiny Management Board advised that the Board had considered the Executive report on Revenue and Capital Budget Monitoring 2018/19 at its meeting on 27 September 2018.  The Board had agreed to support the recommendation in the Executive report.  The comments of the Board were tabled at the meeting.

It was highlighted that the Board had noted that the main reason for a forecast underspend in the Readiness for Adult Life Commissioning Strategy was a more suitable and cost effective supported accommodation solution for care leavers and young homeless people.  It was highlighted that the use of former fire houses in Grantham for this purpose was an example of how future savings could be generated.

The Chairman also highlighted that the Board had discussed in detail the ICT revenue underspend.  Furthermore, the Chief Executive advised that the ICT strategy would be issued in draft form by the end of the calendar year 2018.

It was highlighted that work was being undertaken on the County Council's website, which would improve the customer experience.

The Leader commended the hard work of Adult Care and Children's Services in keeping within their budget allocation during financially challenging times. 

RESOLVED

That the current position on the revenue and capital budgets be noted.