Issue - meetings
Financial Monitoring 2014/15 (Month 5)
Meeting: 09/10/2014 - Cabinet (Item 61)
The Leader of the Council introduced a report by the Director of Resources which set out the revenue position for 2014/15, which at Month 5 (August 2014) showed a projected General Fund overspend of £3.19 million (1.3% of the net revenue budget). This was an improvement compared with a projected overspend reported at month 4 of £3.68 million. The report also provided further details of the measures being undertaken to address the General Fund overspend as requested by the Cabinet when it considered the Month 4 report at its 11 September 2014 meeting (Minute No. 46 refers).
The Cabinet noted that the projected overspend originated in the main from the Families and Wellbeing Directorate. Adult Social Services were currently projecting a £2.7 million overspend. This was mainly due to slippage or non-delivery of in-year savings and demand pressures. The Children’s area of the Directorate was also forecasting an overspend of £543,000. This was mainly due to non-achievement of in year transport savings as well as the costs of external residential placements. It was noted that a series of management actions were taking place within the Families and Wellbeing Directorate to help compensate and/or limit any variances.
Appended to the report was the Revenue Monitoring and Reporting Timetable 2014/15, the General Fund Revenue Budget 2014/15 agreed by the Council on 25 February 2014, Monitoring Full Details, Growth and Risk, Income and Debt and Accounts Receivable.
The Leader informed that there were ongoing pressures within the two Departments and that officers were working hard to address the particular issues and keep within budget. It was both difficult and challenging within the Departments because the pressures being faced were demand led.
(1) the Cabinet notes that at Month 5 (August 2014), the full year forecast projects a General Fund overspend of £3,189,000; and
(2) Cabinet notes the risks relating to non delivery of savings as detailed within the report and the continued requirement for mitigation and actions to be identified.