Agenda item - Targetted Budget Management (TBM) 2016/17 Month 2

Extract from the proceedings of the Policy, Resources & Growth Committee meeting held on 14 July 2016; together with a report of the Executive Director of Finance & Resources (copies attached).

1)            That the Audit & Standards Committee notes the update on the council’s in-year financial position and the continuing actions taken to address forecast overspend risks.

31.1      The Committee considered a report of the Executive Director, Finance & Resources that provided the Targeted Budget Management (TBM) Month 2 report and an extract of proceedings of the Policy, Resources & Growth Committee held on 14 July 2016 from which the report had been referred; together with a specific report to the Audit & Standards Committee.

31.2      Councillor Taylor noted that the forecast outturn for the Dedicated Schools Grant was an overspend of £97,000 and asked for the reasons behind that overspend and how the overspend would be accounted for if the position was the same at the end of the financial year.

31.3      The Assistant Director, Finance explained that this was a ring-fenced fund and underspend or overspend would be carried forward to the next year although it was very likely that there were plans to address this relatively small overspend in the short-term.

31.4      Councillor Druitt noted that the report highlighted overspending in adults and children’s service which reflected a similar position to the previous year. Councillor Druitt noted that the council was better now at managing these services but it was clear that demand continued to increase meaning continued budgetary pressures. Councillor Druitt asked if the council should be more realistic in its financial forecasting and if increased budgets and variance should be introduced for these services.

31.5      The Assistant Director, Finance stated that such decisions were always part of budget forward planning adding that both services were relatively volatile and demand led and there was a need for understanding of the reasons and implications of that in both the short and long-term.

31.6      RESOLVED- That the Audit & Standards Committee notes the update on the council’s in-year financial position and the continuing actions taken to address forecast overspend risks.