To report the financial position for both Revenue and Capital budgets to 28 February 2013. The Treasury Management position is also included.

The Cabinet Member Financial Management presented the Chief Officer Finance & Commercial report which covers the period to the end of February and includes revenue, capital and treasury management positions.  The following points were made:

·         The current position is £3.5m overspend, a slightly improved position on last month. However, should this continue the overspend will need to be funded from general fund balances.

·         A key pressure area remains Adult Services where the delivery of the improvement plan is taking longer than estimated. 

·         It is anticipated that there will be spending of around £38m on capital schemes in 2012/13, which is largely financed by grants and contributions from central government in addition to capital receipts and the use of prudential borrowing.

·         There is a projected underspend of £776k through delaying borrowing, capitalisation of interest and using short term arrangements with other local authorities.

During discussion the following points were made:

·         Concern was raised over contingency funding and that it was not clearly defined in the report.  Cabinet was informed that the summary table at Appendix A outlined contingency funding. 

·         In response to a query on projects using capital or revenue funding Cabinet was informed that capital schemes were not set up on revenue funding.

RESOLVED

          THAT:

a)    the report and forecast position be noted;

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