Decision details

As part of the closure of accounts process, issues that require key decisions to be taken may well arise. (Such requests for carry forward of budgets, as an example

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Chief Officer (Resources) which provided summary information regarding the provisional outturn for 2013/14.  It set out information regarding the carry forward of revenue budgets and capital slippage for Members’ consideration.  It also incorporated the treasury management outturn report and related matters.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The City Council has a legal requirement to ensure that its expenditure is fully funded and to have regard to proper accounting practice.  In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework.  For these aspects, therefore, there are no alternative options for Cabinet to consider.  Members are being asked to endorse certain actions taken by the Chief Officer (Resources), and Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification. 

The report requests Cabinet to consider a number of capital slippage items and Reserve transfers.  The framework for considering these is set out in the report but basically Cabinet may:

-          Approve any number of the items / requests, in full or part.

-          Refuse any number of the requests and if commitments have already been incurred, require alternative funding options to be identified.  Cabinet should note, however, that this may impact on other areas of service delivery.

-          Request further information regarding them, if appropriate.

On the assumption that the Council continues to support its previously approved spending plans, then the Officer preferred options are to approve the capital slippage requests (Appendix G), require no carry forward of the overspendings (Appendix E), and approve the various transfers and use of Reserves as set out in the body of the report.

Although the Council’s General Fund budget and the associated Government funding reduced again in 2013/14, it continues to manage the financial pressure well, and has again improved its financial standing as at 31 March 2014. This has been achieved by narrowing down the breadth of service provision and reducing the number of employees both of which have had an impact on service delivery.  Balances for both General Fund and the HRA are higher than forecast, and the Council has other substantial earmarked further reserves to help respond to the tough financial challenges expected over the coming years, in shaping and delivering against future corporate priorities. 

Councillor Bryning proposed, seconded by Councillor Blamire:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved:

(6 Members (Councillors Barry, Blamire, Bryning, Leytham, Sands and Smith) voted in favour, and 1 Member (Councillor Hamilton-Cox) abstained.)

(1)           That the provisional outturn for 2013/14 be noted, including the transfers to provisions and reserves actioned by the Chief Officer (Resources).

(2)           That as set out in section 4.2.1, the £57K transfer to the Welfare Reforms Reserve be endorsed, and that the Chief Officer (Resources) be given delegated authority to draw up to this amount from the Reserve to provide additional workload capacity for the Revenues service, should this not be manageable within existing budgets.

(3)           That in terms of underspendings, the position as set out in section 5.6 be noted and the Business Support Reserve be used to finance council housing condition surveys, up to the value of £15K.

(4)           That no overspendings be carried forward, as reflected in Appendix E, but with regard to council housing repairs and maintenance, the quarterly reporting arrangements be endorsed.

(5)           That the requests for capital slippage as set out at Appendix G be approved.

(6)           That the Annual Treasury Management report and Prudential Indicators as set out at Appendix H and be noted and referred on to Council.

Officer responsible for effecting the decision:

Chief Officer (Resources)

Reasons for making the decision:

The Outturn and Statement of Accounts report on all the financial resources generated and/or used by the Council in providing services or undertaking other activities under the Policy Framework.  The decision enables Members to endorse certain actions taken by the Chief Officer (Resources) and with regard to reserves contributions there would be opportunities for these to be amended during the current financial year, as part of the usual arrangements.