Issue - meetings

As part of improving financial management and service delivery, this flash outturn report presents an early indication of financial outturn for Cabinet to consider at its April meeting. The figures presented are provisional and the final outturn report Cabinet will receive on 27 May 2014 could include some changes.

In line with the Council’s multi-year approach to financial management, enabling budget equalisation and avoiding arbitrary cut offs to budgets, services have made requests to carry forward underspent funds for use in 2014/15. Carry forward amounts approved by Cabinet enable services to continue and complete projects that are not finished by 31 March. In total, services have asked to transfer £4.9m of revenue funding to the new financial year.

In 2013/14, services have succeeded in containing expenditure and provisionally forecast underspending by ?£6.1m on a total revenue budget of about £1,670m. The Council has spending under control and is applying prudent financial management while continuing to provide services to Surrey’s residents and businesses.

Based on these forecasts and Cabinet’s approval to carry forward funding for the identified revenue projects and services in 2014/15, the Council’s available general balances will be £21.6m at year end. This compares to £20.4m brought forward at 1 April 2013.

The provisional overall capital budget outturn position is +£0.5m overspent on a total capital budget of about £225m. This has changed from February’s forecast position by ?£1.2m, mainly due to reduced spending in Environment & Infrastructure because of flooding issues. Cabinet will receive the final overall capital budget outturn for 2013/14 on 27 May 2014.

Some capital projects’ 2013/14 expenditure is lower than anticipated, in many cases due to the severe weather experienced in December and February. Services request Cabinet’s approval to carry forward £39.4m funding to 2014/15 and future years to complete these projects.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

(1)     That the provisional year end revenue budget outturn of £6.1m underspend, as set out in Table 1 and paragraphs 2 to15 of the submitted report, be noted.

(2)     That Services’ revenue budget carry forward requests totalling £4.9m, as set out in Table 2 of the submitted report, be approved.

(3)     That the provisional year end capital budget outturn £0.5m overspend, including £39.9m underspend on Services, as set out in Table 3 and paragraphs 18 to 23 of the submitted report, be approved.

(4)     That Services’ capital budget carry forward requests for £39.4m, as set out in Table 4 of the submitted report, be approved.

Reasons for Decisions:

To continue to provide monthly budget monitoring information to Cabinet and to enable Cabinet to consider services’ requests to carry forward funding for approval.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Leader of the Council said that this flash outturn budget report presented an early snapshot of the key components of the Council’s provisional financial position for 2013/14. The year end position would be finalised and the final outturn report presented to the next Cabinet meeting on 27 May. The final outturn report would also include updates on the financial position as well as efficiencies, capital investment, staffing, reserves and balances and flooding.

 On Revenue he said that:

·      The provisional outturn for 2013/14 was a £6.1m underspend, which was a minor change of +£0.3m, to February’s forecast which would have been greater had the Council not absorbed pressures arising from the loss of significant Public Health funding.

·      This was the fourth consecutive year the Council had achieved a small underspend or a balanced budget, demonstrating tight financial management by budget holders.

·      In keeping with the Council’s multi-year approach to financial management, services have requested to carry forward £4.9m of underspent funds, to enable them to complete projects in 2014/15 that were not finished by 31 March 2014.

On Capital he said that:

·      The Council’s capital programme not only improved and maintained the Council’s services, but was also a way of investing in Surrey and generating income for the Council. The provisional outturn for 2013/14 was £225.2m investment, a small overachievement against the budget of £224.7m.

·      Finally, he said that as many of the capital programme schemes run over multiple years, services have requested to carry forward £39.4m to complete projects in subsequent years and the final outturn report would highlight the phasing of the capital carry forward requests

Other Cabinet Members were invited to highlight the key points and issues from their portfolios, as set out in the Annex to the report.

The Cabinet Member for Transport, Highways and Environment corrected a typo under the Environment and Infrastructure Directorate, namely, that the flood enforcement action was required on the A22 Eastbourne Road and not the Godstone Road.

The Cabinet Associate for Fire and Police Services highlighted the Fire Service’s defibrillator project and the need to work with partners on it. She also said that work needed to be undertaken to establish the location of all defibrillators in the County, which the Leader of the council asked her to co-ordinate.

RESOLVED:

(1)     That the provisional year end revenue budget outturn of £6.1m underspend, as set out in Table 1 and paragraphs 2 to15 of the submitted report, be noted.

(2)     That Services’ revenue budget carry forward requests totalling £4.9m, as set out in Table 2 of the submitted report, be approved.

(3)     That the provisional year end capital budget outturn £0.5m overspend, including £39.9m underspend on Services, as set out in Table 3 and paragraphs 18 to 23 of the submitted report, be approved.

(4)     That Services’ capital budget carry forward requests for £39.4m, as set out in Table 4 of the submitted report, be approved.

Reasons for Decisions:

To continue to provide monthly budget monitoring information to Cabinet  ...  view the full minutes text for item 82