Contact: Jon Pittam, ext 7400

1 Summary

1.1 There is a saving in service cash-limited budgets and other budgets totalling £5.1m against the 2004/05 revised budget, after transfer to earmarked reserves. Proposals are made to use £900,000 pending the outcome of the pay review and next year's grant settlement.

1.2 The following decisions are sought:

i. that the variations in service cash-limited expenditure, as set out in Table 1 be approved

ii. that the accounts for 2004/05 be closed on the basis that:

· Education, Environment and Policy and Resources retain 50% of their underspendings in accordance with the County Council's financial management policy

· Social Services carry forward its overspending of £0.5m to 2005/06, to be met from the contingency set aside for that purpose in its 2005/06 budget, also in accordance with the County Council's financial management policy

iii. that adjustments and variations on other budgets as set out in Table 3 be approved

iv. that the potential use of £900,000 from the underspending towards one-off priorities, as set out in Table 5, be approved, subject to further reports on the business case and value for money of each priority to the relevant Executive Member before commitment

v. that £4.2m to be added to balances, pending the outcome of the pay review and next year's grant settlement

vi. that contributions to and from earmarked reserves be made as set out in Appendix 4 and the draft protocol set out in Annex 2 to the Appendix be approved

vii. that the report on the County Council's treasury management activities as set out in Appendix 5 be approved

viii. that the prudential indicators set out in Appendix 6 be approved for submission to the County Council

ix. that the final accounts of the Hampshire Pension Fund as set out in Appendix 7 be approved and submitted to the County Council

x. that the final accounts of the County Council for 2004/05 be approved and submitted to the County Council

xi. that progress in implementing financial management policies as set out in Appendix 8 be noted

xii. that capital payments for the year be financed as set out in Table 3 of Appendix 9

xiii. that the carry forward of capital schemes from 2004/05 to 2005/06 as set out in Annex 2 of Appendix 9 be noted

xiv. that services capital programme cash limits for 2005/06 be increased by the sums shown in:

a) column 6 of the table in Annex 1 to Appendix 9 (to reflect the carry forward of capital schemes and of the balance of cash limits from 2004/05)

b) column 3 of the table in Annex 4 to Appendix 9 (to reflect services' share of capital receipts)

2 Reason

2.1 To enable the Cabinet to review the 2004/05 final accounts prior to their submission to the County Council for approval, as required under current legislation. Consideration of this report supports Aim 5 of the corporate strategy.

3 Other options considered and rejected:

3.1 Not applicable

4 Conflicts of interest declared by the decision maker or other Executive member consulted

4.1 Not applicable

5 Dispensation granted by the Standards Committee

5.1 Not applicable

6 Reason(s) for the matter being dealt with if urgent

6.1 Not applicable

Approved by: Date:

Councillor T K Thornber