Contact: Nick Gibbins, (01962) 847544; [email protected]

1 Summary

1.1 There is a total overspending of £4.5m against the 2006/07 cash limit, as reported to the Cabinet in May, £6.4m lower than anticipated when the revised budget was approved in February 2007. Additional spending of £7.3m on services, and the impact of carrying forward an unallocated contingency of £2m within the Adult Services budget, is offset by savings of £4.9m on other budgets.

1.2 The following decisions are sought:

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

b) that the accounts be closed on the basis that:

· Environment and Policy and Resources retain 50% of their underspendings, and Recreation and Heritage carries forward its overspending to 2007/08, in accordance with the County Council's financial management policy

· Adult Services overspending in 2006/07 be written off in accordance with the Financial Recovery Strategy and that the unallocated contingency of £2m within the Adult Services 2006/07 budget be carried forward to 2007/08.

c) that adjustments and variations on other budgets, as set out in Table 3 be approved

d) that a sum of £1.8m be earmarked from the addition to balances for the additional spending proposals outlined in paragraph 5.2

e) that an invest to save contribution of £175,000 to fund restructuring costs in the libraries service be approved, repayable over the period 2008/09 to 2010/11

f) 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

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

h) that the prudential and financial health indicators set out in Appendix 6 be approved

i) that the backward look annual efficiency statement for 2006/07 be approved for submission to Communities and Local Government, as set out in Appendix 7

j) that the final accounts of the County Council for 2006/07 be approved

k) that the final accounts of the Hampshire Pension Fund contained in Appendix 8 be approved

l) that progress in implementing financial management policies, as set out in Appendix 9, be noted

m) that capital payments for the year be financed as set out in Table 3 of Appendix 10

n) that the carry forward of capital schemes from 2006/07 to 2007/08 as set out in Annex 4 of appendix 10 be noted

o) that services' capital programme cash limits for 2007/08 be increased by the sums shown in:

(a) column 6 of the table in Annex 1 to Appendix 10 (to reflect the carry forward of capital schemes and the balance of cash limits from 2006/07)

(b) columns 3 and 4 of the table in Annex 7 to Appendix 10 (to reflect services' share of capital receipts)

p) that the partnership accounts for 2006/07 set out in Appendix 11 be noted in recognition of the County Council's responsibility for financial stewardship.

2 Reason

2.1 To enable the Cabinet to review the 2006/07 final accounts, prior to the Statement of Accounts being submitted to the Governance Committee for approval.

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 CBE - Chairman