Agenda item

Consideration was given to a report presented by the Director of Finance concerning the Council’s revenue budget out-turn for the 2012/2013 financial year. The report included the following summary details:-

(i) In 2012/13 the Council budgeted to spend £213.290 millions on its General Fund Revenue Account.  Actual spending for the year was £212.402 millions, a saving against budget of £0.888 million (or -0.42%).  Of this amount, £0.705 million is accounted for by surpluses on trading accounts, leaving a net underspend of £0.183 million.

(ii) Requests to carry-forward £159,000 of unspent 2012/13 budgets for specific projects/purposes were also included in the submitted report. If approved, the remaining balance available to support the budget is £24,000.

(iii) In addition, the Delegated Schools’ Budget was £183.574 millions. Actual spend against this was £182.958 millions, an underspend of £0.616 million for the year. This has been added to Schools’ Reserves which at 31st March 2013 stood at £8.227 millions. 

(iv) The Housing Revenue Account (HRA) in 2012/13 was budgeted to make a contribution to the HRA General Reserve of £1.838 millions. Actual contribution to this Reserve was £6.801 millions, an additional contribution of £4.963 millions.

(v) This is a very positive outturn, especially given the challenges faced in-year which necessitated the implementation of a moratorium on all but essential spending from October 2012.  It is the result of the hard work of both Elected Members and staff in managing reducing levels of funding at a time of increasing service need, and also the generally good and responsible financial management on the part of budget holders.

(vi) Reflecting the above out-turn position, and subject to the recommendations in the report being approved, the Council’s Revenue Reserves as at 31st March, 2013 were: General Fund Reserves available and uncommitted to support the Budget £9.316 millions and Earmarked Reserves £51.345 millions of which £41.663 millions is ring-fenced for HRA, Schools and to meet future PFI contractual obligations. Reserves at the end of 2012/13 are in line with planned levels.  

Members of the Select Commission discussed the following issues:-

- the Select Commission thanked the Council’s staff, especially those in the Finance Service and in Children and Young People’s Services, for the achievement of a balanced budget;

- the Housing Revenue Account budget allocation for improvements to Council-owned garage sites (Members suggested that this matter required further consideration at a future meeting);

- under-utilisation of bad weather contingency and contractual risks budgets (Housing Revenue Account);

- schools budgets, the composite schools’ budget reserves and the incidence of budgets being under-spent.

Resolved:- (1) That the report be received and its contents noted.

(2) That the Self Regulation Select Commission notes the following recommendations which are being made to Cabinet:-

(a) to note the Council’s General Fund, Schools’ and the Housing Revenue Account (HRA) Revenue Outturn Position Statements for 2012/13;

(b) to note the level of the Council’s Revenue Reserves as at 31st March, 2013;  and

(c) asked to approve the carrying forward of underspends on Trading Services  (£704,895) and requests for carrying forward of specific items (£158,709) in accordance with the Council’s approved policy.

(Councillor Beck declared a prejudicial interest in this item and left the meeting whilst the matter was being considered)