Agenda item

(Report of the Assistant Director Finance. To be introduced by the Cabinet Member for Resources and Culture). The report sets out the provisional outturn position for the General Fund, Housing Revenue Account, the Dedicated Schools Budget, the Collection Fund and the Capital Programme for 2013/14.

Cabinet considered a report, introduced by the Cabinet Member for Resources and Culture, which set out the provisional revenue and capital outturn for 2013/14 and the number of proposed transfers to specific reserves. The report also set out the provisional outturn position for the General Fund, Housing Revenue Account, the Dedicated Schools Budget, the Collection Fund and the Capital Programme 2013/14.

In introducing the report the Cabinet Member for Resources and Culture noted that the Council had continued to manage its budget whilst protecting front line services despite severe government cuts. The Council’s draft Statement of Accounts for 2013/14 was currently being finalised and would be subject to audit before being submitted to the Corporate Committee in September for approval.

In response to two questions from the Leader of the Opposition, it was noted that although the cost of redundancies made by schools were met by the Council, decisions regarding staff and redundancies were made by schools themselves and therefore the Council was limited in its ability to control these costs. With regard to a question in relation to the redevelopment of Hornsey Town Hall and the costs attached to the ‘gateway review’, which was referred to in Appendix 2 of the report; Cabinet was advised that as part of a redevelopment project such as this it was usual to have a review of this kind in order to review all of the options available. A full report setting out the findings of the gateway review would be considered by Cabinet on 15 July.

RESOLVED:

1. That the provisional General Fund revenue outturn of a £5.491m surplus for 2013/14 be noted;

2. That the reasons for variations  be noted and that the planned transfers to reserves (£15.320m) detailed in Appendix 1 and section 10 be approved;

3. That the provisional Housing Revenue Account (HRA) outturn surplus of an additional £8.091m above the budgeted surplus level and the reasons for variances set out in Appendix 2 be noted;

4. That approval be given to the creation of a new HRA smoothing reserve to hold asset value fluctuations as described in paragraph 7.2 and 7.3;

5. That the provisional outturn of a £4.789m under spend for schools’ delegated budgets that increases schools’ balances to £11.719m at the end of 2013/14 be noted;

6. That the provisional Collection Fund surplus of £9.066m of which £7.221m (79.6%) is the Council’s share be noted;

7. That the provisional capital outturn of a £18.74m programme variance and the reasons for variations, which is mainly project slippage, set out in Appendix 3 be noted;

8. That approval be given to capital carry forward requests of £10.27m set out in Appendix 4 noting in particular the need to consider financing options pending resolution on the delayed capital receipts from 2013/14; and

9. That it be noted that the Council’s draft Statement of Accounts for 2013/14 would be approved by the Chief Financial Officer by 30 June 2014. The accounts are subject to audit and the final audited accounts would be presented to the Corporate Committee on 25 September 2014 for final approval.

Alternative options considered

The reporting of the Council’s outturn and management of financial resources is a key part of the role of the Chief Financial Officer (Section 151 Officer) and no other options have been considered.

Reasons for decision

It is important for Members to understand the Council’s financial position at key times of the year in order to inform their decision making and strategic planning.