Issue - meetings

 (1)       That the revenue budget underspending, as set out in Annex 1, Section A paragraph 4 of the submitted report, be noted.

(2)        That the transfer of £2.5m in respect of the write down of prior accruals to the Budget Equalisation Reserve, as set out in Annex 1, Section A paragraph 4 and  68 of the submitted report, be approved.

(3)        That the transfer of £2.7m of higher than expected government grants to the Budget Equalisation Reserve, as set out in Annex 1, Section A, paragraph 7 of the submitted report, be approved.

(4)        That the in-year capital budget outturn, as set out in Annex 1, Section B of the submitted report, be noted.

(5)        That grant and reserves movements changes be noted and that it be approved they are allocated to the relevant services, as set out in Annex 1, Section C of the submitted report.

(6)        That the transfer of capital funding into future years, as set out in Annex 1, Section E of the submitted report, be approved.

Reason for Decisions

To review and manage the budget outturn for the 2012/13 financial year in the context of a multi-year approach to financial management.

To approve carry forwards to enable on-going projects to continue without delay.

The Leader of the Council highlighted the following points from the year end financial budget outturn 2012/13, based upon the final accounts at the end of March 2013.

Revenue – That the council set this year’s budget on the basis of rising demand for its services and the need to make significant reductions in its spending, totalling £71m. This was successfully achieved and the year ended with a small net underspending of £3.1m, or 0.2% of the budget.

He stressed the importance of getting the most out of every pound the council spent and cited procurement as a good example, as well as staffing spend where expenditure had been reduced through improved management of sickness and by reviewing the need to fill vacancies as they arose.

Looking into the future, he said that there was no let-up on the demands placed on the council to deliver more services with less resource and it was more important than ever that the council’s finances were managed on a long-term and multi-year basis, and not just by managing one year at a time. Therefore, £5.2m of funding from the late notification of government grants and from commitments and liabilities that the council no longer has, would be used to increase the council’s financial resilience in future years.

Capital – The council’s capital programme invests in improving and maintaining  service delivery and last year’s capital budget had been fully spent. This had provided a welcome boost to the local economy in these difficult times and demonstrated the council’s commitment to working with partners to achieve the best outcomes for our residents and businesses. Also, as a part of the investment in the local economy, the County Council had joined with Woking Borough Council in an innovative project to develop the town centre and investment had been provided in providing a presence in other town centres from which services can be delivered.

Finally, some projects and schemes which did not complete by the year-end deadline of 31 March 2013, would have funds carried forward, as detailed in Annex 1, Section E of the submitted report.

Other Cabinet Members made the following points:

·         Delight that this was the third year running that the County Council had come in just below its estimated budget.

·         That Members would not be complacent and would continue to work to identify other savings.

·         Commended the S151 officer and the Finance team for effective management of the Capital Budget.

·         Pleased with the delegation of more funding to local committees.

·         Reference to the balance already returned to the Council from the failed Icelandic Banks and the possibility that the remaining balance would also be returned.

·         Attention was also drawn to the annexe with details of Council travel expenses, Members’ Allowances and expenses and that this information will form part of the County Council’s annual report, which will be published at the end of June.

RESOLVED:

(1)        That the revenue budget underspending, as set out in Annex 1, Section A paragraph 4  ...  view the full minutes text for item 51