To report the financial position for both Revenue and Capital budgets to 31 December 2012. The Treasury Management position is also included.

The Cabinet Member Financial Management presented the report of the Chief Officer Finance and Commercial and made the following points to Cabinet.

·         The report indicates the financial position as at end of December 2012, which includes revenue, capital and treasury management positions.

·         The projected financial position at year end is for an overspend of £3.8m.  This is a slight increase on last month and should an overspend continue it would be funded through general fund balances.

·         Main area of pressure is Adult Services.  In addition though there had been pressure caused due to adverse weather conditions creating an additional £120k spend.

·         It is anticipated there will be a spend of £44m on capital schemes in 2012/13, which will be largely be funded by grants and contributions from central government as well as capital receipts and prudential borrowing.

·         The treasury management strategy also projects an underspend of £710k through delayed borrowing, capitalisation on interest and using short term arrangements with other local authorities.

The following points were made in discussion:

• In response to a question on West Mercia Supplies (WMS), Cabinet was advised that the profit sharing figures related to the financial year 2011/12 and that subsequent to this WMS had been sold and therefore there would be no annual profit sharing.  It was noted that we had received a capital receipt.
• In response to a question on PCT debt, the director advised that a further meeting with the PCT was required to resolve the matter.
• In response to a question on the Amey contract and the related risks, the director advised it was a low risk however, it was unlikely the matter would be resolved within this financial year.
• In referring to page 12 point 9 of the report Cabinet was asked if the remaining £1.471m of the projected outturn was still achievable.  It was felt that this would be the case.

RESOLVED

          THAT:

a)    the report and the forecast position be noted;

b)    the Leadership team continue to deliver a further level of savings for 2012/13 in order to minimise any impact on reserves at year end; and

c)    the treasury management report at Appendix C to the report be noted.