(1)

(2)

(3)

(4)

(5)

(6)

Balance 1 April 2006

Income / (Expenditure) during 2006/07

Appropriations (to) / from Revenue 2006/07

Appropriations (to) / from Capital 2006/07

Net contributions to / (from) reserves in 2006/07
(Col 2 to Col 4)

Balance at 31 March 2007

£'000

£'000

£'000

£'000

£'000

£'000

Schools General Reserve (Note 1)

38,376

-

3,511

-

3,511

41,887

Less temporary use for capital funding

-4,988

-

1,140

-

1,140

-3,848

33,388

-

4,651

-

4,651

38,039

General Capital Reserve

-

-

1,432

-

1,432

1,432

Trading accounts

1. Former DSOs

1,007

170

-7

-

163

1,170

2. Supplies

1,118

160

-199

-

-39

1,079

3. Printing

408

6

-25

-

-19

389

4. IT Services

-455

1,042

-33

-554

455

-

5. Caretaking & Cleaning

131

18

-26

-

-8

123

6. Services to Schools

1,780

510

-581

-

-71

1,709

7. Arts Marketing

11

-1

-2

-

-3

8

8. Hampshire Wardrobe

-

9

-

-

9

9

9. River Hamble

286

77

15

-

92

378

Designated underspendings (Note 2)

3,565

-

2,823

-

2,823

6,388

Other

1. Insurance

7,300

-

1,996

-3,282

-1,286

6,014

2. Segensworth units

203

21

-

-

21

224

3. Historic publications

46

-2

-

-

-2

44

4. Invest to save (Note 3)

253

-

8

-

8

261

5. Job-evaluation transitional costs

10,400

-

8,090

-

8,090

18,490

6. Grant equalisation

23,750

-

1,200

-

1,200

24,950

7. Modernisation, restructuring and efficiency

3,505

-

-3,505

-

-3,505

-

8. PSA reward grant

2,712

-

3,353

-

3,353

6,065

9. LATs income

3,538

-

-703

-

-703

2,835

92,946

2,010

18,487

-3,836

16,661

109,607

£'000

Balance at 1 April 2006

253

Financing of additional staff to support generation of capital receipts and business rate appeals

-265

Repayment in respect of capital receipt generation

190

Business rate savings in 2006/07 revised budget

83

Balance at 31 March 2006

261

£000

Balance at 1 April 2006

2,712

Reward grant received in 2006/07

4,992

Transfer to balances agreed in July 2006 to contribute to reinstatement of balances in 2006/07

-1,032

Use of the grant to support:

Local Area agreement

-234

Home to School Transport pilot

-93

Children's Services

-224

Environment

-56

Balance at 31 March 2007

6,065

£000

Balance at 1 April 2006

3,538

Transfer to balances agreed in July 2006 to contribute to reinstatement of balances in 2006/07

-3,000

LATs sales in 2006/07

2,297

Balance at 31 March 2007

2,835

Reserve

Purpose

Use of reserve

Management and control

Review Process

Schools

Earmarking of the balance of unspent delegated budgets.

1 To supplement school budget shares, to finance capital contributions and to provide a contingency.

Responsibility of Head teacher and School governing body.

In addition to review by individual governing body, trends reviewed annually by Children's Services Executive Member.

2 Up to 25% of total reserve made available on a loan basis to finance school capital projects of an `invest to save' nature. Advances of £5.0m made in 2004/05 and 2005/06 under this scheme mainly to fund rationalisation projects in advance of the realisation of capital receipts with a repayment of £1.1m in 2006/07.

Proposals subject to approval of the capital programme, involving executive member, Cabinet and County Council approval.

Use of loan scheme subject to appraisal of projects and to 25% upper limit.

General capital

To assist in matching the timing of the availability of capital financing resources with the timing of capital payments.

To finance locally - resourced capital expenditure.

By County Treasurer in conjunction with decisions on the financing of the capital programme.

Reviewed at least twice yearly on closure of the accounts and in approving a new capital programme. Contribution of £1.4m in 2006/07 due to slippage in capital payments.

Trading accounts

To enable business units to carry forward planned surpluses.

To meet future deficits and/or restructuring costs, to fund capital investment or to return surpluses to customers by reducing prices.

By responsible Chief Officer subject to Executive Member approval, where appropriate.

Through production of an annual business plan linked to the budget process. Contribution of £1m to reinstate balances agreed by Cabinet in July 2006.

Designated underspendings

To enable individual services to carry forward 100% of planned underspendings and at least 50% of unplanned underspendings

To fund non-recurring expenditure in future years or to phase-in the requirement for additional funding or to achieve savings

By service Chief Officer reporting to the Executive Member. Cabinet responsible for approval of cases where more than 50% of a saving is earmarked

Reviewed annually during budget cycle

Insurance

To cover fire, flood and storm damage reinstatement costs which are already committed and to reserve against adverse trends in liability claims.

To supplement annual `premiums' charged to services.

Chief Executive and County Treasurer subject to Cabinet approval.

At least annually on closure of the accounts. A contribution of £2.0m to the reserve is proposed in 2006/07.

Invest to save

To provide funding for investment which will generate future cash savings which can be recycled back into the reserve

For approved investment purposes subject to Cabinet or Policy and Resources Executive Member approval

County Treasurer subject to Cabinet approval

Reviewed annually in conjunction with proposals in the budget meeting invest to save criteria. Currently being used to support initiatives to secure additional capital receipts and business rate revaluations.

Job evaluation transitional costs

To assist in meeting transitional costs likely to arise from implementation of the Pay and Benefit Review

To supplement employee budgets in transitional period following implementation

County Treasurer subject to Cabinet approval

Further contribution of £7.5m agreed in the 2006/07 revised budget from slippage of pay and benefits implementation, together with earmarking of £0.9m saving on part-time pensions provision to meet potential equal pay compensation costs.

Grant equalisation

To assist in managing the impact of future grant loss initially from the 2003/04 Revenue Support grant formula review and subsequently from the 2006/07 review.

To compensate for service and/or council tax impact of grant loss.

County Treasurer subject to Cabinet approval.

Further contribution of £1.2m in 2006/07 increasing the balance to £24.9m at 31 March 2007.

Modernisation, restructuring and efficiency plan.

A newly established reserve in 2005/06 to assist in funding uncertain future costs associated with the modernisation of the County Council's services.

To fund pump priming initiatives and continuing higher costs.

County Treasurer and Chief Executive subject to the approval of the Cabinet.

Decision taken by Cabinet in July 2006 to transfer the balance of the reserve to balances to reinstate higher level of balances.

PSA reward grant

Newly established on closure of 2005/06 accounts to earmark the reward grant earned from the first Local PSA for future use.

To be used in accordance with the policy agreed by the Cabinet in July 2005.

Subject to relevant executive member approval.

Policy agreed for the use of the reserve by Cabinet in July 2006, allocating £3.7m for use by Children's Services and Environment for purposes agreed by Cabinet in October/November 2006.

LATS income

Newly established on closure of the 2005/06 accounts to earmark income from the sale of LATs for future use.

To be used in accordance with the policy agreed by the Cabinet in June 2005 to reduce cost pressures from the existing Waste contract and for further investment in Waste infrastructure.

County Treasurer and Director of Environment, subject to the approval of the Cabinet.

At least annually in conjunction with the budget and capital programme process. Sales income of £2.8m received in 2006/07 transferred to the reserve; Cabinet agreed in July 2006 to transfer £3m from the reserve to reinstate balances.

Segensworth unit factories

To enable annual tenant contributions towards repairs to be earmarked for periodic major repair liabilities to infrastructure

To fund maintenance of specific infrastructure which is the responsibility of the County Council as freeholder

Director of Property, Business and Regulatory Services subject to terms of relevant agreement

Reserve is ring-fenced

Other minor reserves

Sums set aside for specific future purposes

To fund spending on specified purpose

Various

Reviewed at least annually on closure of the accounts