Decision - Targeted Budget Management (TBM) Month 2

(1) That the forecast outturn for the General Fund, Section 75 Partnerships and Housing Revenue Account (HRA) for 2008/09 as at month 2 be noted.

(2) That Directorates with forecast overspends will develop financial recovery plans, which will be included in the next report to Cabinet (Month 6 – September).

(3) That a contribution of £0.300 million to Contingency from the saving on the Insurance contract renewal be agreed.

(4) That a contribution of £0.150 million to the Risk Management Reserve, also from the saving on the Insurance contract renewal, be agreed.

(5) That the forecast outturn position on the capital budgets as at month 2 be noted.

(6) That the new capital schemes as set in Appendix 4 of the report be approved.

(7) That the capital budget changes as set out in 3.14 and 3.15 and the budget re-profile as set out in Appendix 5 of the report be approved.

Budget monitoring is a key element of good financial management, which is necessary in order for the council to maintain financial stability and operate effectively.

The proposed budget allocations and capital budget changes are necessary to maintain effective financial management.

The proposed allocations to Contingency and the Risk Management Reserve, if not made, would reduce the forecast overspend. However, both allocations are deemed to be financially prudent in terms of the overall financial position of the council.