1.        PURPOSE OF REPORT AND EXECUTIVE SUMMARY

1.1     This report provides the committee with an overview of the revenue budget and outturn for the third quarter of 2016/17, and highlights financial matters which may have a material impact on the medium term financial strategy or the balance sheet.

1.2     As at the 31 December 2016, this committee was showing an overall adverse variance of £15,000.  The individual variances for each service area are detailed within Appendix I.

1.3     The position for the council as a whole at the end of the third quarter shows a decrease in the overspend forecast at the end of the second quarter.  Additional controls over spending that were introduced to address this at the end of the second quarter are detailed at paragraph 2.7 of this report.

2.        INTRODUCTION AND BACKGROUND

2.1     The Director of Finance & Business Improvement is the Responsible Financial Officer, and has overall responsibility for budgetary control and financial management.  However in practice, day to day budgetary control is delegated to service managers, with assistance and advice from their director and the finance section.

2.2     The medium term financial strategy for 2016/17 onwards was agreed by full Council on 2 March 2016.  This report advises and updates the committee on the current position with regards to revenue expenditure against the approved budgets.

2.3     Attached at Appendix I is a table detailing the current budget and

expenditure position for this Committee’s services in relation to the third

quarter of 2016/17, to December 2016. The appendix details the net budget per cost centre for this Committee. Actual expenditure is shown to the end of December 2016 and includes accruals for goods and services received but not yet paid for.

2.4     The columns of the table in the Appendix show the following detail:

a)   The cost centre description;

b)   The value of the total budget for the year;

c)   The amount of the budget expected to be spent by the end of December 2016;

d)   The actual spend to that date;

e)   The variance between expected and actual spend;

f)    The forecast spend to year end; and

g)   The expected significant variances at 31 March 2017.

2.5     Appendix I shows that of a net annual expenditure budget of £2,471,734 it was expected that £2,486,830 would be spent up until the end of December. These totals include internal recharges.  At this point in time the budget is reporting an over spend of £15,096, and the current forecast indicates that the current forecast indicates that the outturn position for this committee is a net overspend of £187,000. 

2.6     Explanations for variances within individual cost centres which exceed or are expected to exceed £30,000 have been provided in accordance with the council’s constitution.

2.7     The overall forecast for the council at the end of the third quarter shows a decrease in the overspend projected at the end of the second quarter.  Increased control in the following areas of spending were introduced across the council at the end of the second in order to improve the position:

1. Recruitment;

2. Temporary staff;

3. Discretionary spending; and

4. Contractual commitments.

These have achieved a measure of success and at this stage a reduction in the previously forecast overspend is projected for the Council as a whole.

3     AVAILABLE OPTIONS

3.      

3.1     In considering the current position on the revenue budget at the end of

December 2016 the committee can choose to note those actions or it could chose to take further action.

4         PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

4.      

4.1     The committee is requested to note the content of the report and agree on any necessary action to be taken in relation to the budget position. 

5         CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

5.      

5.1     This report is not expected to lead to any consultation.

6         NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

6.      

6.1     The third quarter budget monitoring reports were considered by the

service committees in January and February 2017, culminating in a full report to Policy and Resources committee on 15 February.

6.2     Details of the actions taken by service committees to manage the pressures in their budgets will be reported to Policy and Resources committee if appropriate.

7         CROSS-CUTTING ISSUES AND IMPLICATIONS

8         REPORT APPENDICES

The following documents are to be published with this report and form part of the report:

·         Appendix I: Third Quarter 2016/17 Revenue Monitoring – Heritage, Culture & Leisure

9         BACKGROUND PAPERS

None