Agenda item

Revenue and Capital Budget Outturn Report 2012-13

Minutes:

– Report of Deputy Leader and Cabinet Member for Finance and Procurement and Mr A Wood, Corporate Director of Finance and Procurement)

 

(1)     Cabinet received a report detailing the latest position of the Revenue and Capital budgets, over and under-spending to date and future commitments for those underspends. In addition it contained various monitoring information for consideration.

 

(2)     The Deputy Leader and Cabinet Member for Finance and Procurement introduced the item. In particular he brought to the attention of members the following information:

 

(i)    Thatthiswasthethirteenthyear that the administration haddelivereda balancedbudget andalthough doing socontinued to presentchallengeshe was confidentthat thistrend wouldbecontinued.

(ii)  Thatthereportdetailedanunderspendof£16m.   £5mofthishadbeen previously agreedtobemovedtothe 2013-14budgettorelievepressures identifiedandthat £3.8mbesetasideforthecompletionofprojectsalready underway.  Further to thesepreviously agreedarrangementsCabinetwas askedtoconsider the allocationof£800,000ofthe£7.2muncommitted reservestocoverpressuresonthe freedom pass budgetwhichcontinuedto be extremelypopularwithparentsinKent and£1.5mforSpecialistChildren’s Servicestoreflect thepreviouslydiscussedpressuresexperiencedonthat particularbudget.  HealsorequestedthatCabinetagreedthattheremaining £4.9mwasearmarkedfortheeconomicdownturnreservetoinsureagainst furtherdifficultfinancialtimes.

(iii)Thateachdirectorate had contributedtothebalancedbudgetandforthisthe councilwasgrateful.  TheEducation, Learning and Skills Directorate had deliveredanunderspendof£5.7m,Children’sServiceshadanoverspendof £6.6mprincipallyaccountabletostaffingcostsand  thecostsoffostering childrenandyoungpeople,whichhadnot reducedashadbeenhoped.In additionthecosts of supporting young peopleseeking asylumhad beenwell documentedandremainedhigh,producing an overspendof£2.8m.Adult Services had reportedan underspendof£2.5m andtheEnvironment, Highways  and  Waste  directorate  £2.9m  largely  accounted  for  by  lower tonnageratesbutoffsetbythepressuresoftheFreedomPass budget as previouslydetailed.    TheCommunities directorate hadreportedan underspendof£4mandFinance£9.3mthelatter beinglargelydeliveredby managementofcashflow and underspendontheinsuranceand modernisation budgets.

(iv)               Heremindedmembersthattheunallocatedreservesstoodat£31.7m,only 3.3% of theCouncil net revenuebudgetandtherefore, he argued,wholly justifiable againstMrPicklesMPstandagainst‘hiddenreserves’anyother monies were allocatedas detailedpreviously.

Capital Budget

(v)     Thatanoutturnof161mwasreportedwithanunderspendvariationof41m mostofwhichwascommitted.  Heexpressedregretthatin somecasesthe time between approval and delivery was solongthat reallocation of fundswas requiredandhopedthat this timing of planning and deliverywas something thatcouldbeimproved.   Theprojectstowhichhereferredwerespread acrossthedirectorates, £15minEducation, Learning andSkills, somein Highwaysandsomeinregenerationbutinmostcasesthe financingwas required as a result of thisrephasing.

Revenue Budget

(vi)    That  the  figures  for  ‘non-schools’  had  reduced  by  311  children  and  the pressuresthat hadoccurredinrelationtospecialneedstransport had been offsetslightlybythe increaseinassisted mainstream transportto school

(vii)   Hedirected members tofigureswithinthe appendices thathelpedto illustratethepressures facedby directorates, for exampleintheprovisionof fostercareandthelongtermdebtmaturityprofilewhichhelpedtoillustrate the council’s capitalsituation.

(viii)  Mr Simmondsreferredmembers to the recommendations in the report.

 

(3)       Corporate Director of Finance andProcurement, Mr A Wood,addedto the comments of theCabinetMembertoannounce thattheauditprocesstowhich the report referredwouldconcludetomorrow and the outcomewouldbereportedtothe GovernanceandAuditCommittee at itsnext meeting.  The work conductedas part of theauditwasa testament to thegoodworkofofficersatKCC andatGrantThornton. Moreimportantly he waspleasedtoannouncethattheauditgavethecouncil’s accountsa cleanbillofhealthanda verycleanjudgementon‘value for money’. FinallyhereportedthatinrelationtotheasylumpressurestowhichMrSimmonds had referreda bill hadbeensent to the HomeOfficeandpayment was awaited.

 

(4)       FinallyheaddedtoMrSimmondscomments regarding the levelsofreservesandthe perceivedincreaseof£22m.  Hereportedthatthiswaslargely accounted for by athe decisiontosavehalfofthecounciltax freezegrant(£7.5m)toalleviatepressureat sucha timeas that grantwasnolonger availableandchangesto accounting treatmentofa particularsum(£10m)whichmeantthatthemoney wouldappearonly brieflyin the reservesbeforebeing reallocated.

 

(5)       HereiteratedMrSimmonds thankstoeveryonewhohadplayeda roleindeliveringa goodandwellmanaged underspend forthe year a sentimentendorsed by the Leader.

 

(6)     It was RESOLVED:

 

CABINET

Revenue and Capital Budget Outturn Report 2012-13

15 July 2013

1.

That £5m of the 2012-13 revenue underspending be rolled forward to 2013/14

2.

That £3.857m of the 2012-13 revenue underspending be rolled forward to 2013/14

3.

That 0.8m of the 2012-13 revenue underspending is rolled forward

4.

That £1.5m of the 2012-13 revenue underspending is rolled forward

5.

That £4.924m remainder of the 2012-13 revenue underspending is set aside in the Economic Downturn reserve

6.

In addition Cabinet was asked to have particular regard to the following information and it was noted:

·           That the provisional outturn position for 2012-13 was as detailed in the report.

·           That 43.871 of capital re-phasing from 2012-13 would be added to 2013-14 and later years as detailed in Appendix 3 and the 2013-14 capital programme would also be adjusted to reflect other 2012/13 variances, as reported in the outturn

·           That the financial monitoring of the key activity indicators for 2012/13 were as detailed at appendix 4

·           That the final financial health indicators for 2012/13 were as detailed in appendix 5

·           That the final monitoring of the prudential indicators for 2012/13 were as detailed in appendix 6

·           That the impact of the 2012/13 provisional revenue budget outturn on reserves was as detailed in section 3.6 of the report.

·           That the schools’ revenue and capital reserves have reduced by some £12.264m.

REASON

 

1.

In order to support the 2013-14 budget, as reflected in the 2013-14 budget approved by County Council on 14 February 2013.

2.

In order to fund existing commitments as detailed in section 3 of appendix 2.

3.

In order to address the continued anticipated impact on the Freedom Pass budget of 2012-13 changes in education transport policy and the continued popularity of the scheme

4.

In order to address the continued demand for Specialist Children’s Services since the 2013-14 budget was set.

5.

In order that the Council may endure further financially austere times, if necessary.

6.

In order that Cabinet have properly had regard for the other crucial matters contained within the report

ALTERNATIVE OPTIONS CONSIDERED

To not agree the changes to the budget would not provide security, project completion or necessary service provision in certain areas.

CONFLICTS OF INTEREST

None.

DISPENSATIONS GRANTED

None.

 

Supporting documents: