Budget Cabinet approve Finance Update Report 2017/18

The Budget Cabinet meeting on Thursday (14 September) approved the 2017/18 Finance Update Report.

The report informs Cabinet and the Corporate Overview and Scrutiny Committee on the Council’s financial position for the end of July 2017.

The Finance Update Report contains detail of the following:

• The forecast Revenue position is an in-year saving of £0.899m.
• Services have not identified any issues in meeting the savings target of £5.895m.
• Forecast Capital spend is £82.060m. Rephasing of £7.973m has been identified and budgets which are no longer required are £0.807m.

Cabinet members approved the recommendation to:

• Consider the 2017/18 Budget position for Revenue, Capital and Savings as at the end of July 2017. 
• Consider the Revenue Budget adjustments 
• Approve the Revenue Budget Pressure Fund requests 
• Consider the Capital Budget adjustments 
• Approve the Capital Virement request 
• Consider the Capital Rephasing and underspends

Revenue Budget 2017/18

The budget set by Budget Council on 1 March 2017 was £196.031m. This has been increased to £201.085m.

There has been a change in the treatment of the Education Support Grant since Budget Council, with an element of the funding now being shown within Children’s Services rather than in General Grants.

Adult Care - £440,000 (In-Year Saving)
The service is reporting an in-year saving of £440,000 due to a combination of staffing savings; mainly as a result of staff turnover; the renegotiation of contracts with external providers; and an increase in Government grant income to the service.

Resources - £295,000 (In-Year Saving)
The Service is forecasting a £295,000 in-year saving, resulting from staff savings and additional funding from Central Government regarding New Burdens.

Finance Control - £517,000 (In-Year Saving)
The reported underspend relates to interest savings as no external borrowing has been undertaken in the first 4 months of the year offset by lower income on short term investments due to low interest rates. £500,000 of the 2017/18 in-year saving is allocated to underwrite a bid for external funding associated with Dippy the dinosaur project.

Corporate Debt

As at the end of July, the outstanding debt is £10.786m.

Savings Update 2017/18

Savings of £2.136m were approved at Budget Council February 2016 for 2017/18.

Savings of £3.759m were approved at Budget Council March 2017 for 2017/18, therefore the total savings target is £5.895m for 2017/18.

Capital Budget 2017/18

The 2017/18 Current Capital Budget is £82.060m.

Details of the Budget increases are listed below:

• £304,000 of other budget changes include: Children’s Services £26,000 net adjustment to the budget for additional Grants received, and Adult Care £263,000 relating to use of unapplied Capital Grants.
• Resources have received £15,000 from the Transformation Fund to fund the purchase of e-payslips iTrent module. 
• A budget carry forward has been identified during the Closedown process of £149,000 due to a late receipt from St Cuthbert’s School as a contribution towards the cost of a multi-use games area.  

Capital Scheme virement request

• £13,000 from the Transfers from AMG scheme is proposed to be transferred back to the Asset Management Group scheme, within Neighbourhoods Directorate.

Capital Rephasing & Underspend

The Chief Finance Officer has approved £7.973m of rephasing. Rephasing of £2.342m relates to Prudential Borrowing. There is reported underspend of £807,000 2017/18, detailed below:

• £257,000 - Telegraph House Demolition 
• £550,000 – Building School for the Future (BSF) 

There is also a reported underspend of £800,000 in 2018/19 associated with the BSF scheme.

The forecast unallocated Capital Receipts Reserve balance as at the end of 2017/18 is £4.127m.

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