Issue - meetings

To consider report 39/11 of the head of finance. 

Cabinet considered report 39/11 of the head of finance.  This detailed the revenue and capital expenditure position for the second quarter of financial year 2011/12, ending on 30 September 2011.  The report predicted an over spend of £132,188 by the financial year-end.  This was down on the predicted £352,119 over spend at the end of the first quarter. 

There were several reasons for the predicted overspend.  Although service areas were reporting a net predicted under spend of £130,542, this was off-set by a £262,730 pressure, which related to contingency and property investment income.  The contingency budget assumed that the council would receive £162,000 of additional income due from increased planning fees but this was unlikely, due to delayed government regulations.  The contingency budget also included £50,000 revenue savings arising from a capital scheme for Manor Park at Wantage, but this scheme was now unlikely to happen.  The outturn included an estimated amount payable to Capita under the terms of the payment and performance mechanism.  Property income was down due to the council’s investment property at Telfer House remaining vacant for a period. 

Cabinet congratulated the service managers on controlling their budgets during the quarter.  The over spend was largely beyond their control.  However, as the over spend was likely to affect the year-end position, Cabinet would welcome any savings suggestions. 

Cabinet also noted that the forecasted capital outturn was as per budget. 

RESOLVED: To note the current budget position and forecasted outturn by the services.