Decision details

This report outlines the financial performance of the Council in relation to its 2010/2011 Revenue and Capital Budgets recommending action required in relation to any variations that may arise and the Cabinet will be asked to consider and agree the position of the Councils Revenue and Capital Outturn approving any subsequent amendments to 2010/11 budgets arising from the outturn position

Further to Minute 132 of the last meeting, the Cabinet Member for Finance, Revenues and Benefits presented a report on the Council’s revenue outturn position for 2010/11, which are subject to final accounting entries prior to approval of the Statement of Accounts for 2010/11 by the Public Accounts and Audit Select Committee at its meeting on 29 June 2011. 

The General Fund showed a net underspend of £2.8m against the revenue budget of £154.8m (2%), which improved the year-end balance position to £10.8m.  This represented a significant improvement in the Council’s financial position over the course of the year and exceeded the £10m target set by the Corporate Director of Finance and Resources at the beginning of the year. 

The ring-fenced Housing Revenue Account (HRA) generated a surplus of £1m, enabling the HRA balance to be increased to £4.4m at 31 March 2011, and capital expenditure was £106.1m against the revised budget of £115.6m.

The Cabinet Member also advised on a number of proposed adjustments to revenue and capital budgets and, in response to an enquiry, confirmed that while the year-end underspend position enabled the Council to strengthen its reserves the on-going financial pressures and the package of savings identified to meet those pressures would continue.

Cabinet agreed:-

  (i)  To note the outturn and balances position of the Council’s General Fund revenue budgets for 2010/11 as detailed in the report;

  (ii)  The transfer of reserves of £2.776m to General Fund balances;

 (iii)  Final in-year budget adjustments as set out below:

a)  Provision for redundancy costs arising from the Council’s voluntary severance scheme (not covered by the capitalisation order agreed with DCLG) - £1.38m

b)  Contingency to reflect the increasing true risk of bad debt and write-offs across the Council’s services arising from re-adjustment of historic budgets, changes to Housing Benefits, Universal Credit and the continuing, poor economic climate - £1.672m

c)  Contingency to support the delivery of the Council’s budget through the high level of savings risks included as a result of the reduction in government funding - £1m

d)  Contingency to meet transition costs arising from the creation of the Elevate joint venture in December 2010 - £0.803m

e)  Increase in the insurance provision to reflect the rising level of claims made in 2010/11 - £0.5m

f)  Support provided to Customer Services in respect of historic Revenues and Benefits budget issues (the nature of which are the subject of a separate Cabinet report) - £1.405m

g)  Roll forward of a contingency budget in respect of joint venture costs - £1.75m

h)  Roll forward of regeneration budgets in Resources and Finance - £0.48m

i)  Roll forward of Children’s Services budgets (including Adult college, music services and Butler Court) - £1.048m

 (iv)  To note the outturn and balances position of the Housing Revenue Account as detailed in paragraph 4 of the report;

  (v)  To note the outturn position for the 2010/11 Financial Health Indicators as set out in Appendix B to the report;

 (vi)  To note the outturn position of the Council’s Capital Programme as set out in paragraph 6 of the report;

(vii)  The capital budget adjustments and funding from borrowings totalling £4.4m as detailed in paragraph 6.7 of the report;

(viii)  The carry forward of items from the 2010/11 Capital Programme into the 2011/12 and future years’ Capital Programme as set out in Appendix D to the report, subject to a final review by the Corporate Director of Finance and Commercial Services;

 (ix)  The roll back of 2011/12 funding to meet 2010/11 Capital Programme costs incurred ahead of schedule as set out in Appendix E to the report;

  (x)  The appropriate re-phasing of 2010/11 - 2012/13 capital budgets where expenditure is out of line with actual expenditure; and

 (xi)  To note the outturn position for the 2010/11 Prudential Indicators as set out in Appendix F to the report.