Agenda item

(Councillor with Special Responsibility Councillor Langhorn)

Report of the Head of Financial Services

(Cabinet Member with Special Responsibility Councillor Langhorn)

Cabinet received a report from the Head of Financial Services providing summary information regarding the provisional outturn for 2009/10 and the timetable for completion of the closure of accounts process. The report 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 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 are no alternative options for Cabinet to consider.  Members are being asked to endorse certain actions taken by the Head of Financial Services, however.  Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification.  With regard to reserves contributions, there will be opportunities for these to be amended during the current financial year, as part of the usual arrangements.

The report requests Cabinet to consider a number of revenue budget carry forward matters and capital slippage.  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.  Cabinet is asked to bear in mind any work required against the value of the individual bids.

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

Councillor Langhorn proposed, seconded by Councillor Kerr:-

“(1)      That the provisional outturn for 2009/10 be noted.

(2)               That Cabinet notes the transfers to provisions and reserves actioned by the Head of Financial Services as set out in section 3 of the report.

(3)               That Cabinet approves the recommendations regarding carry forward of overspendings as set out at Appendix F of the report, and that:

(4)               Cabinet portfolio holders ensure that the necessary budget savings are achieved during the current year, with monitoring through Performance Review Team (PRT) meetings;

(5)               Budget and Performance Panel be requested to include a review of the Housing Revenue Account responsive repairs overspending within their work programme for 2010/11.

(6)               That Cabinet approves the requests for carry forward of underspent General Fund revenue budgets as set out at Appendix G of the report with one amendment, in that the request for Democratic Services be approved as £1,500 not £5,200, with requests being referred on to Council where appropriate.

(7)               That the Council Housing requests for carry forwards be deferred, pending consideration of the capital financing position and any implications arising.

(8)               That in order to strengthen current and future years’ budget forecasting, Cabinet portfolio holders review all outturn variances, through Quarter 1 PRT meetings where possible, and that the outcome of this be included in the Corporate Financial Monitoring and Medium Term Financial Strategy mid-year update reports for Cabinet’s later consideration.

(9)               That the requests for capital slippage as set out in Appendix J of the report be approved.

(10)           That the timetable for completion and reporting of the closure of accounts be noted, as set out in section 8 of the report.

(11)           That the Prudential Indicators as at 31 March 2010 as set out at Appendix K of the report be approved for referral on to Council, as part of the Annual Treasury Management Report for 2009/10.”

Councillors then voted:-

Resolved unanimously:

(1)               That the provisional outturn for 2009/10 be noted.

(2)               That Cabinet notes the transfers to provisions and reserves actioned by the Head of Financial Services as set out in section 3 of the report.

(3)               That Cabinet approves the recommendations regarding carry forward of overspendings as set out at Appendix F of the report, and that:

(4)               Cabinet portfolio holders ensure that the necessary budget savings are achieved during the current year, with monitoring through Performance Review Team (PRT) meetings;

(5)               Budget and Performance Panel be requested to include a review of the Housing Revenue Account responsive repairs overspending within their work programme for 2010/11.

(6)               That Cabinet approves the requests for carry forward of underspent General Fund revenue budgets as set out at Appendix G of the report with one amendment, in that the request for Democratic Services be approved as £1,500 not £5,200, with requests being referred on to Council where appropriate.

(7)               That the Council Housing requests for carry forwards be deferred, pending consideration of the capital financing position and any implications arising.

(8)               That in order to strengthen current and future years’ budget forecasting, Cabinet portfolio holders review all outturn variances, through Quarter 1 PRT meetings where possible, and that the outcome of this be included in the Corporate Financial Monitoring and Medium Term Financial Strategy mid-year update reports for Cabinet’s later consideration.

(9)               That the requests for capital slippage as set out in Appendix J of the report be approved.

(10)           That the timetable for completion and reporting of the closure of accounts be noted, as set out in section 8 of the report.

(11)           That the Prudential Indicators as at 31 March 2010 as set out at Appendix K of the report be approved for referral on to Council, as part of the Annual Treasury Management Report for 2009/10.

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Head of Financial Services

Reasons for making the decision:

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.