Decision details
Provisional Revenue and Capital Outturn 2010/11
Decision Maker: Cabinet.
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
1. To consider the provisional revenue and capital outturn figures for 2010/11 and the impact of these figures on future financial planning.
2. The provisional figures on treasury management and other balance sheet items were also considered.
Decision:
1. That the provisional outturn figures for revenue and capital for 2010/11 be noted.
2. That the provisional funding of capital expenditure in 2010/11 be agreed.
3.
That the carry forward of revenue resources of
£1.73m for the financing of future capital expenditure be
agreed.
4. That the carry forward of grant funding as detailed below be approved.
Service |
Balance of Grant £ |
Description |
Museum |
2,400 |
Two grants: · Japanese Access · Regimental Association Bartlett request |
Playground Improvements |
12,502 |
Lottery Grant for Youth Involvement Project |
Community Development – Sport |
17,600 |
Five Grants: · KCC Sports Development – Clubmark · KCC – Joint Youth Agreement · Home Office – Community Safety, Boxing Development · Youth Opportunity Fund – DMAX · FLO Referrals – Hotfoot |
Waste |
170,000 |
WRAP grant for food waste service |
Pollution Control |
22,000 |
Air Quality Grant |
Planning & related services |
168,700 |
Housing & Planning Delivery Grant |
Youth Forum |
700 |
Youth Opportunity Fund – Dance Project |
Community Safety |
44,000 |
Multiple Initiatives from partnership funds |
Social Inclusion |
26,000 |
Two Grants: · South East Employers – LSP Development · West Kent PCT – Heath Preventative Fund |
Business Development |
363,600 |
Growth Point Revenue Grant |
Sustainable Development |
36,100 |
Performance Reward Grant |
Total |
863,602 |
|
5. That the revenue carry forward requests as set out in Appendix B of the report of the Head of Finance and Customer Services from 2010/11 into 2011/12 based on the previously agreed criteria be agreed.
6. That the impact on the balance sheet of the provisional outturn 2010/11 be noted.
Reasons for the decision:
The purpose of the report of the Head of Finance and Customer Services is to facilitate good financial management. The report gives provisional figures for revenue and capital outturn, to allow early consideration of any issues resulting from them not only in the current financial year but in terms of any impact on the Medium Term Financial Strategy.
Final
expenditure figures for revenue and capital will be reported to
June 2011 Cabinet meeting, along with the key issues from the
Statement of Accounts and Treasury Management
performance. These reports will be
followed, at the July Cabinet Meeting, by the initial Budget
Strategy report for the following financial year and the Medium
Term Financial Projection for a further four years.
Revenue
Appendix A to the report of the Head of Finance and Customer
Services is a summary of the provisional revenue outturn for
2010/11 compared to the revised estimate approved by Cabinet in
February 2011 and Council in March 2011. Also shown is the amended revised estimate, taking
into account any changes in capital financing costs necessitated by
changes in actual capital expenditure.
This is provided to ensure a more accurate comparison with the
outturn position, as it eliminates fluctuations in capital
spend.
Appendix A to the report of the Head of Finance
and Customer Services shows a net unadjusted underspend of £3.99m.
Appendix A to the report of the Head of Finance and Customer
Services also details the variance by portfolio and the major
reasons for the variances are as follows:
a)
Leader – the savings as a result of the early
changes to the establishment have been accumulated within the
contingency budget in this portfolio.
This portfolio also holds the unused contingency of £0.2m for
concessionary fares. Together these
total £0.56m;
b)
Corporate Services – the budget for revenue
support to the capital programme is within this portfolio and a
balance of £1.73m remains of this sum and is dealt with in
detail later in this report;
c)
Environment – the budget variance represents
the balance of WRAP funding for the food waste service and the
underspend on concessionary fares of
£0.36m;
d)
Regeneration – the under spend represents the
balance of growth point revenue grant. This grant has been
programmed for expenditure on schemes over a minimum three year
period. A re-assessment of scheme
priorities will occur in 2011/12 to ensure focus on the strategic
plan priorities.
Proposals for the financing of the capital programme, detailed
later in the report of the Head of Finance and Customer Services
include the use of capital receipts and grants. This means resources identified from revenue
budgets to finance capital expenditure are not required until
2011/12. The variance of £1.73m
remains essential to the financing of the future capital
programme. It is recommended that this
money is set aside for this use in 2011/12, in order for the
capital programme to remain affordable.
After
adjusting the variance of £3.99m for the unused capital
support, detailed above, a balance of £2.26m
remains. Of this sum there is
£0.86m of grant aid that has not been spent in 2010/11 and
will be carried forward for use on the specified schemes in
2011/12. Following this carry forward, £1.4m remains
of the variance.
Appendix B to the report of the Head of Finance and Customer
Services is a schedule of provisional carry forward requests, into
2011/12, totalling £0.25m. These
have been categorised according to the criteria used for decision
making by Cabinet last year. This gives
two categories in the table:
a) Request where a contractual commitment exists;
b)
Other requests.
If the full list of requests for carry forward is approved, the balance available for other actions or transfer to general balances is £1.15m.
The
joint report of the Assistant Director or Regeneration and Cultural
Services and the Theatre and Events Manager, referring to urgent
works to the heating system at the Hazlitt Theatre, considers this
revenue underspend as one option to
identify £0.31m of funding for these works.
Capital
Appendix C to the report of the Head of Finance and Customer
Services is a summary of capital spend against the revised
estimate. This has identified only
minor slippage since the programme was agreed by Council in March
2011. This figure is the net effect of
slippage into and from 2011/12.
The
expenditure outlined at Appendix C to the report of the Head of
Finance and Customer Services can be funded from capital
resources. Proposed funding is
summarised in the following table:
Resources |
£,000 |
|
|
Capital Receipts |
4,063 |
Capital Grants |
3,648 |
Revenue |
48 |
|
|
Total |
7,759 |
This funding proposal is developed on the basis of using the most flexible resources last. This means that grants and capital receipts have been utilised in preference to revenue support. The consequence of this decision is detailed in paragraph 1.4.2 of the report of the Head of Finance and Customer Services, which recommends the carry forward of revenue resources set aside to finance capital expenditure as this is the resource that remains unused.
Balance
Sheet
The
provisional outturn figures have an impact on various elements of
the Balance Sheet and these are summarised as follows.
Asset Sales
The
revised estimate assumed asset sales for 2010/11 of
£5.6m. The provisional outturn
figures show cash backed Capital Receipts, net of costs, of
£5.3m. This is a shortfall of £0.3m which relates to
cost such as the demolition of the Tonbridge Road sites, which
regulations allow to be offset against sale proceeds. Not all
available receipts have been utilised in the financing of the
capital programme, these receipts will be required to finance
future years’ expenditure.
Investments
The
Treasury Management Strategy report to Cabinet agreed in February
2011 anticipated year end investments of approximately
£18.0m. The actual investment at
March 2010 totalled £21.0m. The
provisional assessment of the increase shows that the main elements
of the increase include the following:-
Reason |
£000 |
Revenue Slippage as detailed in the report |
1,000 |
Grant to be repaid to DWP/ DCLG |
2,000 |
The
overall changes to the level of investments will have no impact on
the Strategy itself. The changes will
have a short term impact as the additional resources will be
required during the course of 2011/12.
Daily
monitoring of cash-flow has confirmed that the Prudential
Indicators that Council set for 2010/11 have been complied
with.
Fixed assets
The
capital investment achieved in 2010/11 resulted in investment in
the Council’s property portfolio of £4.06m out of a
total spend of £7.76m. The
balance of the spend is in areas such as support for social
housing, renovation grants, etc which do not contribute to the
Authority’s asset base and have been written off, through the
revenue account, as deferred charges.
Useable capital receipts
As a
result of the level of capital investment and the level of capital
receipts received in 2010/11, the level of useable capital receipts
has decreased from £2m at March 2010 to £1.5m at March
2011.
Balances
Balances are set out in Appendix D to the report of the Head of
Finance and Customer Services. The
overall level of balances at March 2011 will be £10.0m,
compared to £8.4m at March 2010.
However, after allowing for the commitment to carry forwards and
the planned use in 2011/12, the provisional level of uncommitted
balances is £3.8m.
Alternative options considered:
The reporting of revenue outturn could wait until Cabinet in June 2011, when final figures are available in the Statement of Accounts prior to external audit; however, this is not thought appropriate as providing provisional outturn to Cabinet at this time facilitates good financial management and aids consideration of issues within the current financial year and helps inform future budget strategy.
Wards Affected: (All Wards);
Details of the Committee: Budget Monitoring report 2010/11 Cabinet quarterly monitoring report 2010/11 Agresso General Ledger system reports
Contact: Email: paulriley@maidstone.gov.uk.
Report author: Paul Riley
Publication date: 18/05/2011
Date of decision: 18/05/2011
Decided: 18/05/2011 - Cabinet.
Effective from: 26/05/2011
Accompanying Documents:
- Cabinet, Council or Committee Report for Provisional Outturn 2010/11 PDF 90 KB View as HTML (1) 75 KB
- Cabinet, Council or Committee Report for Provisional Outturn 201011 enc. 1 PDF 49 KB
- Cabinet, Council or Committee Report for Provisional Outturn 201011enc. 2 PDF 10 KB
- Cabinet, Council or Committee Report for Provisional Outturn 20101enc. 3 1 PDF 29 KB
- Cabinet, Council or Committee Report for Provisional Outturn 2010enc. 32 11 PDF 12 KB