Agenda item

(i)          Resources - Report of Corporate Director: Resources.

(ii)         Assistant Chief Executive’s - Joint Report of Corporate Director: Resources and Assistant Chief Executive.

The Committee considered two reports, the first of the Corporate Director, Resources and the second of the Assistant Chief Executive (ACE) which provided details of the Quarter 1 2015/16 forecast outturn budget position highlighting major variances in comparison with the budget based on the position at the end of June 2015 (for copy see file of minutes).

The Finance Manager provided a summary report for the Resources service grouping detailing the analysis by Head of Service and highlighting significant variances in the core budget.  It was noted that MTFP savings were on target and, and it was forecast for a £0.685 million revenue underspend, against a revised budget of £15.629 million.  It was added there was a summary of the capital programme financial performance to the end of June 2015 set out within the report, with the main significant spend being in relation to the Digital Durham programme.

The second report related to the Assistant Chief Executive’s service grouping and an analysis by Head of Service was provided alongside those significant variances to the core budget.  It was forecast for a £0.152 million underspend against a budget of £10.162 million. Members noted that MTFP savings were on track, with the ACE Capital Programme for 2015/16 having been re-profiled and the revised budget standing at £5.676 million.

The Chairman thanked the Finance Manager and asked Members for their questions on the 2015/16 reports.

Councillor M Wilkes asked if the tables on page 120 of the report referred to revenue budgets for Resources, and noted variations in the amount of spend to date across budgets, with up to 57% of annual budgets in some cases, less than 13% for others.  The Finance Manager noted the tables did refer to revenue budgets for Resources, and that the profile of when budgets are spent does differ between categories. This is particularly the case with respect to supplies and services in Resources which contained benefit payments which are significant in value and the reported position is therefore based on the timing of these payments. It was explained that the key column for focus was the forecast outturn position in the tables, which ignored the fluctuation of when spend and income was incurred during the year, but gave an accurate estimate at this stage of the outturn position for the whole year.

Resolved:

That the content of the reports be noted.