Report on the revenue accounts including update on reserves and provisions

Councillor Phil Davies introduced a report by the Interim Director of Resources that detailed the Out-turn for 2012/13 and concluded the report to Cabinet for the 2012/13 financial year.  The report had attached separate appendices for Revenue (including details of the reserves and provisions), Capital (including the resources to fund the programme) and the Collection Summary (including debts for which approval to write-off is required).  At the time the report, this report was written this remained as work-in-progress.

Councillor Phil Davies informed the Cabinet that the Outturn for 2012/13 had come up with £2.7m overspend less than projected at month 11.  He was pleased reserves had been increased to £17.2m at the year end.  This was close to the target set for 2015.  Councillor Phil Davies also informed that the Council had been able to release earmarked reserves of £17.2m, had created a redundancy reserve of £5.5m and had maintained an enhanced voluntary severance scheme.

Councillor Phil Davies told the Cabinet that there was now a more robust procedure in place to monitor the Capital Programme and that capital receipts had been used to reduce borrowing.

Councillor Phil Davies thanked the Interim Director of Resources, Peter Timmins and his team for the absolutely fantastic amount of work they had undertaken to get the Council’s finances to where they were now.

RESOLVED: That

Revenue

(1)  the Revenue Out-turn for 2012/13, which showed that balances have increased by £3.6 million due to the outturn being £2.7 million below the projection at Month 11 and the release of £0.9 million of previously used Capital Reserves to General Fund balances, be noted;

(2)  the creation of a Redundancy Reserve of £5.5 million, previously identified as a cost for 2013/14, be agreed;

Capital

(3)  the additional slippage of £4.6 million from 2012/13 to 2013/14 be agreed;

(4)  the financing of the programme for 2012/13 be agreed;

(5)  the application of the £2.5 million of capital receipts, to reduce future capital financing costs by £0.2 million per year and to release £0.9 million of previously used Capital Reserves to General Fund balances, be agreed;

Collection Summary

(6)  the report be noted; and

(7)  the debts, as detailed in appendix 3 to the report, be written off.