Archived decisions

Reserve Accounts

Commentary and Statistics

Reserve Accounts

Revenue Budget

Actual

Original

Revised

Budget

Actual

Original

Revised

Budget

2007/08

2008/09

2008/09

2009/10

2007/08

2008/09

2008/09

2009/10

£'000

£'000

£'000

£'000

Contribution to / (from) Earmarked Reserves

Contribution to / (from) Earmarked Reserves

Earmarked reserves represent sums that have been set aside for a defined future purpose. The precise nature

46,034

Relating to the financing of services

6,577

9,389

-6,119

and timing of the expenditure to be met from the reserve is often uncertain.

-1,008

Capital expenditure financed from revenue reserves

-250

-12,538

-7,236

45,026

Net Contribution from Earmarked Reserves

6,327

-3,149

-13,355

Contribution to / (from) Earmarked Reserves

Contribution to / (from) Earmarked Reserves

Relating to the Financing of Services

Relating to the Financing of Services

These contributions relate to income or underspendings which it is proposed to transfer to a reserve and

expenditure to be met from a reserve where the expenditure / income is included in service budgets.

Service Underspendings

Service Underspendings :

Savings of £0.8m in the 2006/07 revised budget and £3.6m in the 2006/07 final accounts have been carried forward

Earmarking of savings in 2006/07 revised budget

for use in 2007/08. Savings of £2.4m in the 2007/08 revised budget and £5.4m in the 2007/08 final accounts

and final accounts for use in 2007/08

are being carried forward to 2008/09. Savings of £10.6m in the 2008/09 revised budget are being carried forward

-2,000

Adult Services

for use in 2009/10, 2010/11 and 2011/12.

-1,490

Children's Services

-

-

-

-755

Environment

-

-

-

-125

Policy and Resources

-

-

-

-4,370

-

-

-

Earmarking of savings in 2007/08 revised budget

and final accounts for use in 2008/09

5,253

Adult Services

-820

-5,253

-

764

Children's Services

-

-764

-

992

Environment

-980

-992

-

793

Policy and Resources

-630

-793

-

10

Recreation and Heritage

-

-

-

7,812

-2,430

-7,802

-

Earmarking of savings in 2008/09 revised budget

for use in 2009/10 and later years

-

Adult Services

-

7,800

-3,900

-

Children's Services

-

1,300

-1,300

-

Environment

-

314

-314

-

Policy and Resources

-

1,159

-1,159

-

-

10,573

-6,673

B108

B109

Reserve Accounts

Commentary and Statistics

Reserve Accounts

Revenue Budget

Actual

Original

Revised

Budget

Actual

Original

Revised

Budget

2007/08

2008/09

2008/09

2009/10

2007/08

2008/09

2008/09

2009/10

£'000

£'000

£'000

£'000

Contribution to / (from) Earmarked Reserves

Contribution to / (from) Earmarked Reserves

Relating to the Financing of Services (continued)

relating to the Financing of Services (continued)

Trading Units

Trading Units

Business Group

Earmarked reserves are used to enable the Business Group and other approved trading units to carry forward

205

Surplus / (deficit) for the year

99

361

298

planned surpluses to the following year and to earmark depreciation for the replacement of assets.

72

Earmarking of depreciation charges for asset replacement

89

68

56

Hampshire Printing :

61

Surplus for the year

58

58

81

64

Earmarking of depreciation charges for asset replacement

63

63

-

County Supplies :

174

Surplus for the year

41

159

134

45

Earmarking of depreciation charges for asset replacement

66

25

-

Education Services to Schools :

1,543

Surplus / (deficit) for the year

-577

-25

-381

249

Children's Centres

-

-182

-400

76

River Hamble : surplus

43

61

49

IT Services :

-465

Surplus / (deficit) for the year

812

-736

794

-

Earmarking of depreciation charges for asset replacement

-

105

-

26

Caretaking and Cleaning : surplus / (deficit)

-

33

-

5

Hampshire Wardrobe: surplus/(deficit)

-10

4

1

4

Arts Marketing : surplus / (deficit)

-

-3

-

2,059

684

-9

632

School Reserves

In both 2008/09 and 2009/10 budgets the neutral assumption has been made, that schools spending will match

6,314

School Reserves

3368

366

-

delegated budgets for the year. The School Balances Loan scheme uses school reserves to provide temporary

funding for school rationalisation schemes and £3m is expected to be repayable to school reserves at 31 March

Other Reserves :

2010.

2,491

Insurance

-

-

-

23

Segensworth units

20

17

18

Other reserves

-6

Historic publications

-

-

-

An earmarked reserve has been established to recognize the transitional costs that are likely to arise from the

-64

Hillier Gardens

-

-

-

job evaluation review, mainly as a result of equal pay claims. Implementation costs of £1.6 million over the period

182

School catering support

-

-

-

2008/09 and 2009/10 are budgeted to be financed from the equal pay reserve. Interest is being credited to the

17,872

Equal pay

491

1,003

955

reserve to reflect the impact of delay on potential employment tribunal settlements.

40

Commons reserves

-

-

-

-290

Council tax discount on second homes

-11

-51

-40

New reserves were established on closure of 2005/06's accounts for income received from landfill allowance

-27

Part time pensions

-

-

-

trading and for reward grant received for the achievement of targets in the first local public service agreement.

54

Change for children

54

54

-

A new invest to save and modernisation reserve was proposed in the 2008/09 budget combining two existing invest

1,500

Rowner regeneration scheme

-

-

-1,500

to save reserves, to which contributions totalling £1.8m are being made in 2009/10. A local authorities business

1,122

Landfill allowances

-

1,800

300

growth incentive reserve has been established in 2008/09 into which 70% of the grant allocation for 2007/08

-

Local authorities business growth incentive

-

993

-

has been transferred to support economic prosperity, well being and regeneration and other capital projects.

-2,718

LPSA Reward Grant

-1,248

-2,492

-621

A corporate policy reserve has been established in the 2009/10 budget into which has been transferred the first

12,436

General Capital

5,034

5,006

-

tranche of SAP savings of £1.5m available beyond the pay back period, which will be redeployed into front line

-

Corporate policy

-

-

1,539

services as the outlook for public spending deteriorates.

404

Invest to Save and modernisation

1860

1,176

1,761

A grant equalization reserve was first established in 2003/04 to assist in phasing in the loss of formula grant

1,200

Grant Equalization

-1,245

-1,245

-2,490

from the revised formulae introduced in 2003/04 and 2006/07. The reserve is being used to phase in the impact

of grant loss over an eight year period from 2008/09.

46,034

6577

9389

-6,119

Capital Expenditure Financed from Revenue Reserves

Capital Expenditure Financed from Revenue Reserves

Capital expenditure is financed from a general capital reserve built up from budgeted revenue contributions to

-152

Business Group asset replacement

-50

-108

-549

capital where these are not required immediately for capital financing purposes. The general capital reserve

-

Schools self funded capital schemes

-200

-243

-

is expected to be fully utilized in financing capital expenditure in 2008/09 and 2009/10. In addition, schools

-33

Children's Centres

-

-

-

and business unit reserves are available for capital financing purposes.

-

General capital reserve

-

-12,187

-6,687

-39

County Supplies

-

-

-

-

IT Services

-

-

-

-784

Insurance

-

-

-

-1,008

-250

-12,538

-7,236

B110

B111