Issue - meetings

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of the Head of Financial Services

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of Financial Services which provided summary information regarding the provisional outturn for 2010/11 and the timetable for completion of the closure of accounts process.  It also set out information regarding the carry forward of underspent/overspent revenue budgets and capital slippage for Members’ consideration, and sought approval of various Prudential Indicators for last year for referral on to Council.  The Treasury Management Outturn report (previously reported separately) was also included.

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 produce a Statement of Accounts in accordance with proper accounting practice.  In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework.  For these aspects, therefore, there were no alternative options for Cabinet to consider.  Members were asked to endorse certain actions taken by the Head of Financial Services, however.  Cabinet were requested to consider whether it had sufficient information to do so or whether it required any further justification.  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.

The report requested Cabinet to consider a number of revenue budget carry forward matters and capital slippage.  The framework for considering these was set out in the report but basically Cabinet could:

-        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 was requested to note, however, that this might impact on other areas of service delivery.

-        Request further information regarding them, if appropriate.  Cabinet was asked to bear in mind any work required against the value of the individual bids.

Officer recommendations regarding any carry forward of overspendings were set out in Appendix F, to the report.  Where there were alternative options for other aspects of the outturn, in view of the comments made above there were no specific officer preferred options put forward.

Although 2010/11 has been an uncertain year financially, as at 31 March the Council had improved its financial standing overall by generating net efficiency savings and through other underspendings.  Balances were significantly higher than forecast.  Whilst there were still uncertainties surrounding the outcome of Icelandic investments, the Council had retained its provisions to cover ‘worse case’ estimated losses and therefore potentially there was scope for its financial position to improve further, should a positive ruling be forthcoming.  Looking forward, the Council had earmarked further reserves to help respond to the ongoing financial challenges expected over the coming years.  Given funding prospects the Council must continue to reduce costs wherever possible – substantially more efficiency and other savings initiatives would be needed in future in order to ensure a  ...  view the full minutes text for item 22