Issue - meetings

To submit a report by the Head of Function (Resources)/Section 151 Officer.

It was resolved –

·        To note the position set out in respect of the financial performance to date.

·        To approve the transfer of any underspend at year-end on the winter gritting budget to an earmarked reserve to help fund additional costs in future years arising from adverse winter conditions.

The report of the Head of Function (Resources) and Section 151 Officer setting out the financial performance of the Council’s services for the third quarter of the financial year from 1 April, 2016 to 31 December, 2016 along with the projected position for the year as a whole was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the overall projected financial position at Quarter 3 for the 2016/17 financial year including Corporate Finance and the Council Tax Fund is for an overspend of £16k, or 0.01% of the Council’s net budget for 2016/17.This is a significant improvement on the £660k overspend predicted during Quarter 2; the decrease in the forecast overspend is attributable in the main to the underspend in the Finance budget. The Portfolio Member said he was hopeful this position could now be maintained to the end of the financial year; the experience in previous years has shown that Quarter 4 does not usually deliver any surprises.

The Executive, while accepting that revenue spending in total reflects a balanced position, noted that there are distinct variances in individual service budgets with a number of over and underspends; it sought clarification of how these have been factored into next year’s plans.

The Head of Function (Resources) and Section 151 Officer said that the services that are experiencing significant budgetary pressures and are consequently overspending are Lifelong Learning and Children’s Services. With regard to the latter the Executive has approved funding to establish an Edge of Care Team as an early intervention measure to support families and thereby to reduce the number of children being taken into the Authority’s care when the costs are incurred.  Two elements of the Lifelong Learning budget are overspending, namely School Transport and the Out of County Education budget which meets the cost of education provision for children who because of their needs, are in placements outside Anglesey. Next year’s budget plans acknowledge the pressure on this particular budget and provide an additional allocation to the Education Service to meet the rising costs in this area. It is a difficult budget to manage because it is demand led; the cost of meeting the needs of one child out of county can be significant and tip the budget into overspend.

It was resolved:

•           To note the position set out in respect of the financial performance to date.

•           To approve the transfer of any underspend at year-end on the winter gritting budget to an earmarked reserve to help fund additional costs in future years arising from adverse winter conditions.