Issue - meetings

To receive and consider report 33/07 of the Strategic Director and Chief Finance Officer. 

Introduction and Report Summary

The report details, in accordance with the corporate planning framework the outturn position for 2006/07, subject to audit. 

The Contact Officer for this report is Steve Bishop, Strategic Director (& Chief Finance Officer), (01235 540332).

Recommendations

Members are requested to:

(a)        Note the overall outturn position of the Council as well as the outturn of individual service areas and cost centres; and,

(b)        Take into account the impact of the outturn position in the Integrated Service and Financial Planning process when setting the 2007/08 Revised Budget and 2008/09 Original Budget. 

(Time: 3.15pm to 3.26pm)

(CouncillorAngela Lawrence declared a personal interest in this item and in accordance with Standing Order 34, she remained in the meeting during its consideration.)

The Executive received and considered report 33/07 of the Strategic Director and Chief Finance Officer, which detailed the Council's outturn position for 2006/07, subject to audit.  Additional appendices A(i), B and C were tabled at the meeting.  Their late publication was largely due to the accounts for 2006/07 only being completed recently.  Efforts were made to bring this report to this meeting, rather than to the next meeting in October.  It was noted that these extra appendices would be submitted to Scrutiny CommitteeMembers in advance of their meeting when this report would be considered also. 

Members noted amendments to the figures in the table in paragraph 5.1 of the report.  The variance for service area outturn was -£88,000 and the description of Contingency was amended to read ‘Reversal of Capital Funding’.  The variance figure for this was amended to read -£228,000. 

The report concluded that 2006/07 had been a good year for the Council’s finances.  The unexpected receipt of Local Authority Business Growth Incentive (LABGI) grant had provided a welcome boost to general fund balances. 

Disregarding the LABGI grant, the Council had overspent by £23,000, representing only 0.2% variance.  However, this masked a number of significant variances which were of concern to the Chief Finance Officer.  He considered that budget holders needed to work more closely with their accountants to ensure budget monitoring was much more effective in 2007/08.  The Executive agreed.  Portfolio Holders were asked to monitor variances carefully throughout the year and report any concerns to the Executive. 

RESOLVED

(a)        that the overall outturn position of the Council as well as the outturn of individual service areas and cost centres be noted;

(b)                that the impact of the outturn position be taken into account in the Integrated Service and Financial Planning process when setting the 2007/08 Revised Budget and 2008/09 Original Budget; and

(c)        that Portfolio Holders be requested to understand why variances happened in 2006/07 and monitor budgets in their service areas to ensure variances are, so far as it is possible, eradicated in 2007/08 and to report any concerns to the Executive .