The Deputy Chief Executive/Director of Finance provided a summary of the position of the revenue accounts and General Fund balances as at 30 September 2011, together with the latest update as at 31 October 2011. He set out the key issues contained within the Statement and reported upon the impact of Cabinet decisions having budgetary implications, which had reduced balances by £2.7m. At this stage of the financial year departments were reporting pressures and he highlighted the volatile areas that had been identified within Adult Social Services, Children and Young People and in other departments. Chief Officers continued to explore options to reduce any potential overspend.

He reported that the projected level of balances at 1 April 2011 when setting the 2011/2012 Budget was £14.1m and of this £7.2m was allocated to fund ‘one-off’ options and the cost of the EVR/VS Scheme in 2011/2012 leaving a projected balance at 31 March 2012 of £6.9m. He commented upon the impact of the release of Connexions reserve monies and the Government decision to allow the Council to capitalise statutory redundancy costs (see minute 66 post) and indicated that the current predicted balances at 31 March 2012, based upon the latest projections were £9.6m. These would be reduced by any further budgetary allocations or if any pressures turned into overspends within the 2011/2012 financial year.

Resolved – That the Financial Monitoring Statement be noted.