Meeting documents

1 THE ISSUE

1.1 This report presents the provisional revenue and capital outturn for 2004/05, with some recommended technical adjustments. The report refers to known potential pressures for the current year, as a preface to a request to carry forward specific budget items to 2005/06.

2 RECOMMENDATION

2.1 Note the provisional revenue Outturn for 2004/05 in Appendix 2 at £1,256,000 under spent, rather than the previously reported and expected overspend of £133,000 in January and £81,000 in February 2005.

2.2 Agree the carry forward proposals in the tables in Appendix 4 as exceptions to the budget management scheme.

2.3 Agree that the recommended provisions detailed in Appendix 1 paragraphs 1.6 and 1.15 and 1.16 are earmarked in revenue balances.

2.4 Agree that any resulting surplus arising from decisions made should be set aside and carried forward into the 2005/06 revenue risk contingency budget for potential additional unavoidable costs in 2005/06.

2.5 Notes the final position of the 2004/2005 capital programme (Appendix 5);

2.6 approves the adjustments to and incorporation of additional funding to the 2004/2005 capital programme as detailed in Appendix 1 paragraph 1.8;

2.7 Notes the final position of available capital resources, and delegates responsibility for agreeing the carry forward of capital underspends arising in 2004/05 to the Head of Finance & Resource Planning in consultation with the Executive Member for Resources. (Appendix 1 Paragraph 1.11)

3 FINANCIAL IMPLICATIONS

3.1 These are contained within this financial report.

4 THE REPORT

4.1 This report provides information about how the Council did in terms of its spending against its revenue and capital budgets in 2004/05.

4.2 Details and commentary of the outturn position for revenue and capital are provided in Appendices 1-6.

4.3 The report follows the format of reporting services by Executive portfolio. Requests for carry forward are also listed according with a reference to Portfolio (see Appendix 4).

4.4 A separate council committee (the new Corporate Audit Committee) will approve the statutory final accounts of the Council. That is the accounts in terms of the balance sheet and statutory accounting requirements. This report presents them in the form that is routinely reported throughout the year.

4.5 The Executive received financial reports throughout the year highlighting the known pressure areas, and identifying those actions that can be taken to reduce these to manageable proportions. Since the financial situation last year was initially forecasting a large overspend, actions were taken to limit these overspends and find some additional savings during the last financial year. Overall the revenue position is balanced, which represents an extremely good result given the pressures that were reported during the year. However, as Appendix 1 explains, favourable variances achieved on capital financing costs were due to circumstances that will not recur, and tight control of both revenue and capital budgets will therefore continue to be required in 2005/06.

4.6 A Budget Management Scheme (BMS) is in force, which specifies how over and under spending should be treated in any year.

4.7 Under the budget management scheme all overspends should be carried forward, subject to a proposal from the service to recover them. At least 60% of any under spends can also be carried forward providing that the management of all overspendings have been agreed within a directors' service areas and also providing these under spends were reported at the latest in January 2005. If not reported by then, they are considered "windfall" and should not be carried forward.

5 RISK MANAGEMENT

6 RATIONALE

6.1 The recommendations made are based upon the budget management scheme and a consideration of the Council's latest financial position.

7 OTHER OPTIONS CONSIDERED

7.1 Appendix 4 lists all options that can be considered in making a decision on carry forwards and write offs in 2004/05 budgets.

8 CONSULTATION

8.1 Section 151 Finance Officer, Chief Executive, Monitoring Officer, Trade Unions, Directors and their supporting finance staff.

8.2 Draft report circulated to the above.

9 REASONS FOR URGENCY

9.1 Not urgent.