Decision details

The Executive will be asked to consider the regular budget monitoring reports any changed proposals to relevant action plans change in use of budgets additional budget expenditure and the Councils in year financial performance

Received a report from the Corporate Director of Finance and Commercial Services providing an update on the Council’s revenue and capital position for the 2009/10 financial year as projected at 31 January 2010.  The Corporate Director also gave a verbal update on the most current position and stressed that while steps will continue to be taken to reduce the net projected revenue overspend it is likely that revenue balances will reduce considerably from the current level of £3.7m.

The report also contained proposals for virements between revenue budgets in order to better reflect current activities, the allocation of funding from the Invest to Save reserve and the progression of the Barking Skills Centre project.

Agreed, as a matter of good financial practice, to:-

  (i)  Note the current projected end of year position of the Council’s revenue and capital budget as detailed in the report and Appendices A and C;

  (ii)  Note the position for the Housing Revenue Account as detailed in the report and Appendix B;

  (iii)  Note that in light of the current potential overspend, departments are continuing work to identify and deliver recovery plans to eliminate overspends;

  (iv)  Note that the Corporate Director of Finance and Commercial Services has imposed mechanisms to reduce in-year expenditure;

  (v)  Note potential further actions may be required;

  (vi)  Approve the following budget virements for 2010/11:

a)  £1.0m from General Finance to Resources for Building Schools for the Future;

b)  £750,000 from General Finance to Contingency for the Medium Term Financial Strategy (MTFS) item on the Pension Fund Revaluation;

c)  £236,000 from Resources to Adult and Community Services in view of the transfer of the Olympic Ambition function to the Leisure and Arts division;

d)  £359,000 from Adult and Community Services to Customer Services in relation to the split of the MTFS provision for the Dagenham Library and One Stop Shop.

  (vii)  Extend the funding of the Strategic Partnership procurement into 2010/11 at a cost of £300,000, to be funded from the Invest to Save reserve as detailed in paragraph 6.2 of the report; and

  (viii)  Delegate authority for the placing of an order with Kier London for the construction of the Skills Centre to the Corporate Director of Children’s Services, in consultation with the Corporate Director of Finance and Commercial Services and Legal Partners.