Contact: Anne Hibbert, ext 7533, e-mail:[email protected]

1. Summary

1.1 The review indicates a few areas where revenue spending is likely to differ from the assumptions in the budget. Spending is projected to be within the overall cash limit, but there are a number of funding issues to be resolved, particularly in relation to HR spending, where it is uncertain whether the overall budgetary position will enable a number of planned underspendings to be carried forward to 2005/06 in full

1.2 Some adjustments to the Policy and Resources capital programme are proposed mainly to include the capitalisation of IT infrastructure costs and to reflect a change in the financial management of capital repairs from a starts basis to an expenditure basis of control.

1.3 Capital payments for the County Council overall at this stage of the year are expected to be close to the forecast.

The following decisions are sought:

i) To note the current position on the monitoring of the revenue budget and capital programme

ii) To approve an allocation of £100,000 in 2004/05 from the central contingency to cover start up costs for Every Child Matters

iii) To agree in principle the carry forward of planned underspendings relating to:

(a) the Human Resources department restructuring, subject to the overall HR budgetary position

(b) office accommodation

iv) to recommend to the County Council that the Policy and Resources capital programme limit for 2004/05 be increased by £1,150,000 to include the capitalisation of IT infrastructure, to be funded from unsupported borrowing financed from charges to users.

v) To agree that the basis of control for capital repairs, including New Deal for Schools condition funding is changed from a starts basis to an expenditure basis with effect from 2004/05.

vi) To recommend to the County Council that control totals for these capital schemes for 2004/05 and 2005/06 are amended as a result of this change in the basis of control, as detailed in table 3 of the main report.

vii) To approve an increase of £5,000 in the capital programme for 2004/05 in respect of additional capital approval for building works and computer equipment (£2,000) for the Hampshire and Isle of Wight Magistrates' Courts Committee and a technical adjustment (£3,000) to the 2003/04 carry forward amount for land management schemes.

viii) To approve, within the Policy and Resources capital programme limit, an allocation of £76,500 to prepare HMS Minerva for transfer to the Royal Naval Museum and to increase the unallocated sum by £108,500, being the balance of the original allocation.

ix) To approve a transfer from capital to revenue of £15,000. Of this, £5,000 is to fund a display of the County Council's coastal sites and facilities at the International Festival of the Sea in Portsmouth in July 2005 and £10,000 is to fund public consultation on the options to implement coastal defence policies in the West Hayling and other areas.

2. Reason

2.1 Regular service budget monitoring reports are submitted to Executive Members to review whether any action is required to contain spending within cash limits and ensure that resources are utilised effectively.

2.2 Decisions on the Policy and Resources revenue budget and capital programme impact on the financial resources used by central services to support all other County Council services and as such relate to all the corporate strategy aims:

· Maximising life opportunities

· Stewardship of the environment

· Achieving economic prosperity

· Building strong and safe communities

· Improving services

· Developing councillors and staff.

3. Other options considered and rejected - Not applicable

4. Conflicts of interest declared by the decision maker or a member or officer consulted - Not applicable

5. Dispensation granted by the Standards Committee - not applicable

6. Reason(s) for the matter being dealt with if urgent - not applicable

Approved by: (signature) Date: (date of decision)

Councillor T K Thornber