A report by the Interim Director of Finance set out the revenue position for 2012/13 as at Month 11 (February 2013).  It identified the latest financial projections and ongoing management actions to ensure any year end overspend was minimised. 

Councillor Phil Davies told the Cabinet that he was pleased that the Council’s revenue spending was now on a more substantial footing and he congratulated Peter Timmins, Interim Director of Finance, and his team on this achievement.  Councillor Davies then asked the Interim Director of Finance to expand on the interesting work on budget monitoring carried out with budget holders. 

The Interim Director of Finance informed that Council Officers with an involvement in financial management were attending financial update and training events.  They had been timed to coincide with the commencement of the new Financial Year.  The Council, like others, faced significant financial challenges.  A great deal had been achieved in recent months taking the Council forward and producing a budget with a sound footing.  There had also been a number of revisions to financial procedures and processes with further changes to be implemented. 

It was important that Officers who had financial responsibilities were aware of these changes and two, two hour, events had been held to provide them with the essential financial rules to bring them up to date with the financial position and financial procedure rules.  A further session was planned for those Officers who had been unable to attend the two events already held. 

It was also best practice that Officers with budget responsibilities received recent and relevant training  The events had also included the distribution and sign off of the 2013/14 budgets and had provided an opportunity to meet and speak with Finance staff, who would assist them during the coming year, and raise any financial issues with them.  Budget Holders had been asked to rate themselves (red, amber or green) and appropriate support would now be put in place to assist them and further training would be provided if the need for it was identified.

The feedback from these events was that they had been greatly appreciated by the staff.  The Interim Director of Finance informed that it was intended to produce a monthly newsletter and create a community of people who would work together to monitor spending.

At the request of Councillor Phil Davies for advice on the Council’s spending freeze, the Interim Director advised that it would be appropriate for the Council to keep the spending freeze in place for a further three months whilst evidence was collected that it had been the right course to take such action, work on the close down of the 2012/13 accounts was carried out and major change was being implemented.  The financial situation should then be re-evaluated in three months time at the end of June 2013.

RESOLVED:

That the Cabinet notes:

(1)  at Month 11 (February 2013), the full year forecast projected a potential General Fund overspend of £7.4m;

(2)  there were no rejected freeze items in the month; and

(3)  a major risk continues to exist concerning the reliability of fees and charges income going back many years.  Corrective action is being taken to maximise recovery.  A separate report regarding the background and recommendations relating to this issue is to be produced.