Issue - meetings

To consider the report of the Head of Treasury Services.

Scrutiny Committee – Resources considered the report at its meeting on 21 September 2011 and comments will be reported.

(Report circulated)

(Minute 93)

The report of the Head of Treasury Services was submitted, advising Members of the overall projected financial position of the General Fund Revenue Budget after three months, for the 2011/12 financial year.

He reported that the Service Committee budgets showed a forecast overspend of £503,990 (3.0%) against a revised Service Committee Net Expenditure budget of £13,003,520 and an overall overspend of £389,165 against General Fund expenditure.  He identified the main variances in service Committee budgets, details of which were disclosed in stewardship reports to the Committees.

Members were pleased to note the improvement in creditors’ payment performance and a decrease in sundry debt over 30 days old.  In response to a request from a member, the Head of Treasury Services reported that the write-off of debts was included within the annual budget reports but could also be included in future Overview reports.  The Chair commented that whilst the £389,165 awarded to the Council in the form of New Homes Bonus was not ring-fenced, the Council would need to be cautious in spending it as it was uncertain for how long the Bonus would be paid.  

Scrutiny Committee – Resources considered the report at their meeting of 21 September 2011 and their comments were noted.

Executive recommended that Council notes and approves:

(1)        the General Fund forecast financial position for the 2011/12 financial year;

(2)        the HRA forecast financial position for the 2011/12 financial year;

(3)        the outstanding Sundry Debt position as at June 2011; and

(4)        the creditors’ payment performance.

The report of the Head of Treasury Services was submitted, advising Members of the overall projected financial position of the General Fund Revenue Budget after three months, for the 2011/12 financial year.

He reported that the Service Committee budgets showed a forecast overspend of £503,990 (3.0%) against a revised Service Committee Net Expenditure budget of £13,003,520 and an overall overspend of £389,165 against General Fund expenditure.  He identified the main variances in service Committee budgets, details of which were disclosed in stewardship reports to the Committees.

Members were pleased to note the improvement in creditors’ payment performance and a decrease in sundry debt over 30 days old.  In response to a request from a member, the Head of Treasury Services reported that the write-off of debts was included within the annual budget reports but could also be included in future Overview reports.  The Chair commented that whilst the £389,165 awarded to the Council in the form of New Homes Bonus was not ring-fenced, the Council would need to be cautious in spending it as it was uncertain for how long the Bonus would be paid.   

Scrutiny Committee – Resources considered the report at their meeting of 21 September 2011 and their comments were noted.

RECOMMENDED that Council notes and approves:

(1)        the General Fund forecast financial position for the 2011/12 financial year;

(2)        the HRA forecast financial position for the 2011/12 financial year;

(3)        the outstanding Sundry Debt position as at June 2011; and

(4)        the creditors’ payment performance.

(Report circulated)

To consider the report of the Head of Treasury Services – report circulated

The Head of Treasury Services presented the report advising Members of the overall projected financial position of the General Revenue Budget after three months, for 2011/12 financial year.

He advised that the Service Committee budgets showed a forecast overall overspend of £389,165.  Members were updated on the Scrutiny Committee - Resources overspend which included an anticipated reduction in the amount of Housing Benefit Subsidy received, mainly in respect of non HRA rent allowances.  This had resulted in an estimated overspend of £388,190.

The Head of Treasury Services advised of the other financial variations including the New Homes Bonus, the outstanding sundry debt and the creditor payments performance.

In response to Members’ questions, the Head of Treasury Services stated that it would be some months before the final position with the Archaeological Field Unit was known although debt over a year old had already been taken into account. The Council’s recovery rate for the overpayment of Housing Benefits was 90% - the Council worked with debt collecting agencies to ensure that wherever possible overpayments were recovered.

The Head of Contracts and Direct Services clarified that refuse vehicles could now access any garage across the city to obtain diesel: as a result the Council could take advantage of cheaper fuel prices. The Council had also introduced bio-fuel vehicles.

The Head of Treasury Services advised Members that the New Homes Bonus would not be ring fenced and the amount that the Council would receive in future years was dependent on how many new homes were built in the previous year.

The Chief Executive advised that although the New Homes Bonus was not ring fenced, it was a time-limited source of funding, it was intended to provide an incentive to local communities to accept development and it was anticipated that a significant proportion of the funds would be used for key physical and social infrastructure associated with the growth of the city.

The Committee thanked the Head of Treasury Services and his team for the work they had undertaken to recover overpayment of Housing Benefit.

The Scrutiny Committee – Resources noted the report and recommended approval by Council of the:-

(1)        General Fund forecast financial position for the 2011/12 financial year;

(2)        HRA forecast financial position for 2011/12 financial year;

(3)        outstanding Sundry Debt position as at June 2011; and

(4)        creditor’s payments performance.

(Report circulated)