Agenda item

Revenue Budget Monitoring Report 2018-19 - Quarter 2

Report of Managing Director


The Managing Director submitted a report (previously circulated) together with the Quarter 2 revenue budget outturn report (also previously circulated) which had been considered by Cabinet at its meeting held on 6 November 2018.

It was reported that the Council’s projected revenue reserves at the end of 2018/19were £16.606 million, £1.116 million more than the initial 2018-22 MTFP position and included a brought forward amount of £0.530 million from 2017/18, a rebasing exercise of £0.425 million, with the departmental/corporate resources forecast to be £0.0161 million better off.

Particular reference was made to the overspend of £0.432 million in Children’s Services, which was mainly due to increased costs in relation to the adoption and placement budget and school transport and which was being offset by an underspend on the financing costs budget of £0.591 million. 


Discussion ensued on some specific variances within Departmental budget headings and the Finance Manager gave an explanation as to the possible reasons for those variances.  Members questioned whether the Scrutiny Committee should be supplied with more detailed information in respect of those larger variances in budgets, in addition to the narrative given in the covering report, however, were reassured by the explanation of the processes involved in budget monitoring and management by Officers.

Particular reference was made to the current position in relation to the pay award, an underspend in relation to the Dolphin Centre which it was requested be carried forward into the next financial year, the costs associated with the legal fees in relation to the airport, the source of income into the DLO  highways budget; new build housing costs and the need to ensure that any savings across departmental budgets in relation to staffing costs were balanced against any possible impact on service delivery.

Members also requested that further information in relation to the current position of the joint venture between the Council and Esh Homes be submitted to a future meeting of this Scrutiny Committee.

RESOLVED – That the report be received.

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