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Title |
2024/25 Revenue/Capital Carry Forwards |
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Purpose of the report |
To make a decision |
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Report Author |
Ola Owolabi, Deputy Chief Finance Officer (Interim) |
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Ward(s) Affected |
All Wards |
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Exempt |
No |
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Corporate Priority |
Community Addressing Housing Needs Resilience Environment Service Delivery |
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Recommendations
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The Committee is asked to agree and approve the requests for 2024/25 Revenue and Capital expenditure to be carried forward to 2025/26 as follows- a) The Revenue carry forward requests totalling up to £24,291 as set out in Appendix A, attached to this report;
b) The Capital carry forward requests totalling £300,000 as set out in Appendix A, attached to this report.
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Reason for Recommendation |
In accordance with the Council’s financial regulations, the Committee is asked to approve the requests for 2024/25 revenue and capital expenditure carry forward into 2025/26. |
1. SUMMARY REPORT
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What is the situation |
Why we want to do something |
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• In accordance with the Council’s Financial Regulations, at the end of each financial year when there has been a surplus for the year, Budget Managers can request that any underspends in their area are carried forward into the following year’s budget. • The carry forwards must be fully spent by 30 June 2025. |
• To ensure that the planned spend for 2024-25 is carried forward to 2025-26 and the objectives delivered, rather than being lost to the General fund in 2024-25. |
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This is what we want to do about it |
These are the next steps |
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• Approve the carry forward requests. • Review the carry forward requests and ensure that the Committee is content with the requests. |
• To approve the 2024/25 Revenue of £24,291and Capital Programme of £300,000 of unspent budget be carried forward to 2025/26 as set out in Appendix A. • Instruct the Finance Team to amend the 2025-26 Budget to reflect the approved carry forward requests. |
2. BACKGROUND
2.1 The purpose of this report is to enable the Committee to scrutinise and approve the budget carry forwards requested by officers to be able to complete works started but unfinished as at 31 March 2025 and for works delayed due to unforeseen circumstances.
2.2 In previous years, some requests have been approved for works and the monies have not been spent so there is a need to ensure that only monies with a good reason should be agreed as a carry forward.
2.3 As was the case in 2023/24 any other variances at year end are transferred to or from the General Fund Balances unless specified otherwise.
3. KEY ISSUES
3.1 Subject to the year-end outturn report indicating that there is an underspend, the Committee is asked to approve the 2024/25 revenue/capital expenditure items listed in Appendix A for carrying over into 2025/26.
3.2 Appendix A shows a list of, and the value of revenue and capital carry forward requests made.
(a) Revenue - The total value equates to approximately £24k against the full year revised budget of £8.628m (0.28%).
(b) Capital - The total value equates to approximately £300k against the full year budget of £22.281m (1.3%).
3.3 The total carry forward agreed may vary after the 31st March 2025 as the spend might be different to the amount utilised. All schemes should be assessed on whether the project is agreeable rather than a definitive value being agreed.
3.4 The carry forward policy requirements include -
(a) Carry forwards amounts requested must come from one cost centre and cannot be made up of small budget underspending in different cost centres.
(b) Carry forward amount requested must be greater than £10,000.
(c) Any monies not spent within the agreed timescale will be returned to the General Fund Balance.
(d) All works should be completed by 30 June 2025.
(e) Carry forwards request will only be allowed if the overall Council Q4 revenue outturn report shows an underspend.
3.5 The current declining level of funds in the reserves needs to be considered when deciding if carry forwards should be agreed. Also, areas which have budget provision for capital schemes in the 2024/25 programme should be considered so that the works anticipated can be completed in the following financial year.
4. OPTIONS ANALYSIS AND PROPOSAL
4.1 This is an annual process and if the outturn report for the year end shows an overspend, this report will be withdrawn.
4.2 There are no other options to discuss, as each request needs to be evaluated and approved, or not by the Committee.
4.3 The Committee could agree not to approve all or some of the requests for carry forward, and whilst that would be a savings, some projects will remain incomplete, or reduced funding will be available for distribution to our vulnerable and at-risk residents, and it would not make a difference to some of the smaller value projects.
5. FINANCIAL IMPLICATIONS
5.1 In aggregate, this means that revenue of £24,291 and Capital Programme of £300,000 of 2024/25 unspent budget will be moved into 2025/26 and relevant 2025/26 budgets will be adjusted. There is an expectation that this budget will be fully spent by 30 June 2025.
5.2 At the end of the process, any unspent funds (para 3.2 above) will be returned to the general fund.
6. RISK MANAGEMENT COMMENTS
6.1 There is a possibility that the carry forward request will only be approved if the overall Council provisional outturn results in an underspend, even though there have been multiple carry forward requests pertaining to the £24,291 Revenue carry forward and the £300,000 of Capital programme resources.
7. PROCUREMENT COMMENTS
None arising directly from this report.
8. LEGAL COMMENTS
8.1 The Council has a statutory duty to make arrangements for the proper administration of its financial affairs (s.151 of the Local Government Act 1972) and to monitor income and expenditure against its budget (s.28 of the Local Government Act 2003).
9. OTHER CONSIDERATIONS
9.1 None.
10. EQUALITY AND DIVERSITY
10.1 Most requests will impact on the whole Borough, with the request for grants having more of an impact on our vulnerable residents.
11. SUSTAINABILITY/CLIMATE CHANGE IMPLICATIONS
11.1 By carrying forward the requests, we will be ensuring that the Council has sufficient funds to deliver on ongoing commitments.
12. TIMETABLE FOR IMPLEMENTATION
12.1 All 2024/25 Revenue/Capital expenditure carried forwards are expected to be spent by 30 June 2025.
13. CONTACT
13.1 Ola Owolabi, Deputy Chief Finance Officer (Interim) o.owolabi@spelthorne.gov.uk
Background papers:
· Q4 Revenue Provisional Outturn Report as at 31 March 2025, which will be discussed at this Committee meeting.
· Q4 Capital Outturn report, which will be discussed at this Committee meeting.
Appendix:
Appendix A – list of 2024/25 revenue and capital expenditure items to be carried forward into 2025/26.