3 Council's Revenue and Capital Outturn 2010/11 PDF 96 KB
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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 ... view the full minutes text for item 3