Agenda item

B Report of the Director of Finance and Support (Copy herewith)

Cabinet noted the forecast position of £410k under spend for General Fund (including debt financing) as at the end of September 2010.

Cabinet noted the forecast position of £694k under spend for HRA fund (including recharges) as at the end of September 2010.

Cabinet noted the Capital Programme monitoring position as at the end of September 2010, which included forecast outturns, revenue expenditure funded by capital and slippage into 2010-11, and the related funding as set out at appendices 3a and 3b to the report.

Cabinet noted the position reported on the key financial indicators as at paragraphs 3.2.1 to 3.2.3 of the report.

Cabinet approved the following additions to the capital programme 2010-11.

Councillor Clarke commented that the questions he had asked at Cabinet on 3 November 2010 had not been answered and therefore he would repeat them. Further this report appeared to contradict that of 3 November. Appendix 3A showed that £400,000 out of a budget of £800,000 had been spent on the Cooper Street heating replacement scheme and the balance had been moved to Disabled Facilities Grants. He had argued against this on 3 November suggesting that the balance should be spent on window replacement at the Cooper Street flats. The current report appeared to show £400,000 removed from the Disabled Facilities Grants budget but it had not reappeared for Cooper Street flats window replacement. He queried where this money had gone. Councillor Clarke also queried why money was being spent on gym equipment if Leisure Services were shortly to be reformed as a Trust. He also asked how much the refitting of the basement of the Guildhall had cost and where this was shown in the Capital Programme.

Councillor Mildren noted the anticipated underspend of the General Fund and queried the effects in 2011/12 of underachieving the anticipated savings of £1.1million in Environmental and Cultural Services. He noted the expenditure on the PFI project from the HRA and queried whether money allocated to Decent Homes would be spent.

Councillor Perkins, as the relevant Portfolio Holder, submitted a report that set out the Council’s overall financial position in respect of the General Fund and HRA Revenue and Capital, General Fund savings and efficiency targets, Treasury management and corporate income collection and Internal Audit recommendations. He referred to the projected underspends on the General Fund and the HRA and the alterations to the Capital Programme. In respect of the gym equipment at the leisure centres, the existing leases were coming to an end and the Council had the option to purchase this equipment outright. In respect of the unachievable savings Management Board had found other ways to make the savings from within Environment and Cultural Services. It was difficult to estimate the impact of this on future years. Councillor Perkins noted that in respect of Treasury Management there had been an issue in respect of IBS invoices had been identified and a solution now put in place. He would give Councillor Clarke a written response in respect of the Cooper Street flats funding. In terms of the Guildhall basement works, the cost had been met within the £2m previously allocated from the sale receipt of Cliftonville House. The finance costs of PFI had been covered from within the allocation made for it. In terms of Decent Homes a number of projects were currently being procured and it was anticipated that the capital allocations would be spent.

Councillor B. Markham noted that the purchase of a digital projector, that would also improve Dolby Sound reproduction, for Lings Cinema was most welcome.

The Chair commented that the report reflected the focus of Officers in monitoring the budget and he thanked them on Cabinet’s behalf.

RESOLVED:     1. That the forecast position of £410k under spend for  General Fund (including debt financing) as at the end of September 2010 be noted.

                          2. That the forecast position of £694k under spend for HRA  fund (including recharges) as at the end of September 2010 be noted.

                          3. That the Capital Programme monitoring position as at the end of September 2010, including forecast outturns, revenue expenditure funded by capital and slippage into 2010-11, and the related funding as set out at appendices 3a and 3b to the report, be noted.

                          4. That the position reported on the key financial indicators as at paragraphs 3.2.1 to 3.2.3 of the report be noted.

                          5. That the following additions to the capital programme 2010-11 be approved: