The purpose of this report is for Cabinet to consider and approve the final outturn position for 2010/11.

The Cabinet Member Corporate Services and Education presented the report.  The Cabinet Member made the following points:

·         A balanced budget had been delivered for 2010/11.The general fund reserve was at £6.4m.

·         Specific reserves totalled £17.9m of which £6m was ring fenced schools reserves.

·         Adult services care budget was still an area of financial risk.

·         Budgetary recovery plans and control of discretionary expenditure had significantly contributed to the year-end position.

·         The Council’s financial position was regularly reported to Cabinet for review.

·         There had been a number of projects delivered successfully amounting to £2.696m.

The Chief Officer Finance and Commercial made the following points:

·         There had been considerable pressure in all directorates which had led to an overspend of £2.6m.  The reduction in discretionary spend had significantly reduced this.

·         A considerable contribution has been made in the way funds are borrowed for the capital programme through the use of revenue instead of reserves where appropriate.

·         Currently the authority is on target to deliver a balanced budget.

·         Winter maintenance reserves are to be included in the general reserves.

·         Integrated Commissioning directorate had a £4.3m overspend.

·         Children’s Services, overspend was considerably less than had been previously.

·         There was a slight underspend in the Deputy Chief Executive’s directorate and equally in the Sustainable Communities directorate.

·         The Capital outturn funding through grants was £4.5m.

·         The end of year position showed a gross borrowing of £140m.

Cabinet made the following comments:

·         There had been good financial management by the authority in reacting early to avoid service problems in adult social care.

·         There was a potential additional cost to the council relating to any school staff being made redundant.

·         Cabinet noted the number of schools converting to academy status and that the academies were choosing to buy back services from the local authority rather than get services elsewhere.

RESOLVED

            That:

a)            the final outturn for 2010/11 be approved; and

b)           the movements to new reserves outlined in paragraph 12 of Appendix A to the report be approved.