Agenda item

(Report of the Director of Corporate Resources. To be introduced by the Cabinet Member for Finance and Carbon Reduction). The report sets out the provisional revenue and capital outturn for 2012/13 together with proposed transfers to reserves and revenue and capital carry forward requests. The report also sets out the steps that have been taken to identify savings for 2014/15.

Cabinet considered a report, introduced by the Cabinet Member for Finance and Carbon Reduction, which set out the provisional revenue and capital outturn for 2012/13 together with proposed transfers to reserves and revenue and capital carry forward requests.

The report also set out the steps and principles that had been followed in identifying areas where savings could be realised for 2014/15 and these were recommended for agreement ahead of setting the 2014/15 budget.

The Deputy Leader of the Opposition raised a number of questions for clarification in relation to the report, and received answers from the Cabinet Member for Finance and Carbon Reduction and the relevant Chief Officers.

RESOLVED:

      i.        That Cabinet note the 2012/13 provisional general fund revenue outturn, after proposed transfers to reserves and carry forwards, of a £6m surplus and the reasons for variances set out in Appendix 1 of the report.

    ii.        That the proposed transfers to reserves of 0.58m and the reserve carry forward requests of £1.839m set out in Appendix 1 of the report be approved.

   iii.        That the provisional Housing Revenue Account (HRA) outturn deficit £0.126m and the reasons for variances, as set out in Appendix 2 of the report, be noted.

   iv.        That the charging of net overspend position on the Homes for Haringey Company Account (£105k) against the Housing Revenue Account (as set out in paragraph 10 of the report) be approved.

     v.        That the provisional position with respect to the Dedicated Schools Budget (as set out in paragraph 6.5 of the report) be noted.

   vi.        That the provisional General Fund capital outturn position of a £2.4m surplus, as set out in Appendix 3 of the report, be noted.

  vii.        That the proposed capital carry forward requests of £2.609m, as set out in Appendix 4 of the report, be approved.

 viii.        That draft savings proposals, to be recommended to the Council at its meeting in February 2014 for the Council’s Medium Term Financial Plan 2014/15 – 2016/17, as set out in Appendix B of the report, be approved.

   ix.        That the approach to the proposed Zero Based Budgeting (ZBB) exercise, as set out in paragraph 16 of the report, be noted.

     x.        That the budget virements, re-profiling and reserve transfer requests for 2013/14, as set out in Appendix 5 of the report, be approved.

Alternative Options Considered

The reporting of the Council’s outturn and management of financial resources was a key part of the role of the Chief Financial Officer (S151 Officer) and there are no other options available.

The budget cycle could be based on the same timetable as last year with savings for 2014/15 being considered at the December 2013 Cabinet meeting. Alternative savings could also be identified, but those detailed in the report are considered to provide the appropriate balance across services, reflecting the Council’s priorities and the timescales for implementation.

Reasons for Decision

It is part of the role of the Cabinet to monitor, and approve, the Council’s budget; at the end of each financial year the Council closes its accounts and reports the financial outturn as part of this role. The report set out the provisional final position (subject to audit) in accordance with reporting requirements and made recommendations regarding carry forward of specified balances, transfers to reserves and virements. The Cabinet was also asked to approve certain draft saving proposals as part of the preparation of the 2014-15 budget setting.