To report September’s budget monitoring information and provide an indication of estimated outturn for both revenue and capital.  To report on treasury management activities in the first six months of 2009/10.

The Cabinet Member Resources presented the Budget Monitoring report and reminded Cabinet that 2009/10 would provide a challenging financial environment to work in and allowances for this were reflected in the budget.  Cabinet discussed the key considerations outlined in the report and some of the areas of concern lay in the Integrated Commissioning Directorate, with a projected £2.1m overspend and the Children and Young People’s Directorate, with a £945k projected overspend.

The Head of Financial Services referred to the recovery plans for directorates outlined in the report, particularly for Integrated Commissioning and Children and Young People’s Directorates and pointed out that it would take some time for the measures identified to take effect but action plans had been put in place.  Cabinet noted both the recovery plans and agreed these were working well and that overspends for the Children and Young People’s Directorate were already below £500k.

The Chairman of the Strategic Monitoring Committee raised a query with regards to funding for the Hereford Academy and whether the sums involved were due to the school becoming an academy.  The Director of Resources advised that he would set out in a letter to the Member the issues relating to recruitment at the Hereford Academy.

RESOLVED That: the report be noted.