Issue - meetings

Revenue Budget Monitoring

Meeting: 20/07/2010 - Cabinet (Item 67)

67 Revenue Budget Monitoring 2010/2011 PDF 424 KB

Minutes:

This report gave details of the forecast outturn for the 2010/2011 financial year projected based on actual income and expenditure to May 2010.

It was noted that on 25 February 2010 the Council had set gross revenue spending at £625m and a General Fund net budget requirement of £182.713m for 2010/2011. The monitoring report indicated that after management action, the outturn forecast for 2010/2011 stood at a £1.597m overspend. After excluding the small forecast underspend on the dedicated schools grant funded services the overspend on the General Fund was £1.652m.

An analysis of the budget position for each directorate, including details of significant risks, were set out in the report and accompanying appendices.

Due to the economic climate the Cabinet considered a proposal to amend the recruitment freeze process so that all self-funded posts, externally funded posts and joint funded posts were no longer excluded from the recruitment freeze process.

Decision number:	Decision:
	The Cabinet noted the result of the first round of revenue monitoring for 2010/2011 and the proposed management action to reduce the potential deficit.
104/2010	The Cabinet recommended that Council approve a virement of £19,000 from the conversion of toilet facilities to the provision of 5-a-side facilities at Maidstone Sports Ground.
105/2010	The Cabinet agreed that a report be submitted to Council to correct the error in rent setting and remedy the overpayment that had occurred.
106/2010	The Cabinet agreed that the Recruitment Freeze process be extended with immediate effect to include all self-funded posts, externally funded posts and joint funded posts.
Reasons: Cabinet has the responsibility to ensure effective budgetary control to contain expenditure within the approved limits set by Council. Where a budget overspend is forecast, Cabinet supported by the corporate management team must identify measures to remove any excess expenditure. The proposed virement to the specific scheme agreed by Council and the rent setting correction are matters that need to be referred to Council.