Decision details

Revenue Monitor and Capital Investment Programme 2018/19 Quarter 2 - September 2018

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: Yes

Decisions:

The Cabinet gave consideration to a report of the Director of Finance which provided them with updates on the Council’s 2018/19 forecast revenue budget position and the financial position of the capital programme as at 30 September 2018 (Quarter 2), together with the revised capital programme 2018/22.

 

With regards to the Revenue position, Members were informed that the current forecast outturn position for 2018/19 was a projected favourable variance of £0.099m after allowing for approved and pending transfers to and from reserves.

 

The most significant area of concern was the People and Place Portfolio, in the main due to the transfer of Children’s Social Care into this area. An update on the major issues driving the projections within this Portfolio was provided.

 

Cabinet was informed that action was being taken and would continue for the remainder of the financial year to address variances and take mitigating action.

 

The overall corporate position was being managed by offsetting favourable variances, most noticeably from capital, treasury and corporate accounting budgets, in part caused by the anticipated cost of borrowing and capital financing being lower than budgeted and the availability of additional Treasury Management income and unringfenced grants not allocated to service budgets.

 

Members were provided with information on the Quarter 2 position of the Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and Collection Fund. There were no significant issues of concern in relation to the HRA and Collection Fund, however, the DSG continued to be an area which was facing a financial challenge, with an increase in the projected year end deficit. Action was being taken with the aim of reducing the cumulative deficit and bringing the DSG towards a balanced position.

 

In relation to the Capital position, the Cabinet was informed of the most up to date capital spending position for 2018/23 for approved schemes. The 2018/19 capital programme budget had been revised to £49.523m at the close of Quarter 2, a net decrease of £40.135m from the original budget of £89.658 and a reduction of £10.499m from the £60.022m reported at Quarter 1. Actual expenditure to 30 September 2018 was £17.915m (36.18% of forecast outturn).

 

Members noted it was probable that the forecast position would continue to change before the year end with additional re-profiling into future years.

 

Options/Alternatives considered

Option 1 - to approve the forecast revenue and capital positions presented in the report including proposed changes

Option 2- to approve some of the forecasts and changes included in the report

Option 3 - not to approve any of the forecasts and changes included in the report

 

RESOLVED That:-

 

1.     The forecast revenue outturn for 2018/19 at Quarter 2 being a £0.099m under spend be approved.

2.     The forecast positions for the HRA, Collection Fund and the DSG be approved.

3.     The use of up to £5.9m of earmarked reserves to increase the Council’s 2018/19 contribution to the Pooled Fund operating under a Section 75 agreement, to facilitate wider benefits to the Oldham Health and Social Care economy be approved.

4.     The use of ear marked reserves as detailed in Appendix 1 to Annex 1of the report be approved.

5.     The revised capital programme for 2018/19 to the extended period of 2022/23, as at Quarter 2, be approved.

 

Publication date: 27/11/2018

Date of decision: 19/11/2018

Decided at meeting: 19/11/2018 - Cabinet

Effective from: 05/12/2018

Accompanying Documents: