Financial Context
The overall improvements in performance during 2007/08 identified in the report need to be set in the context of the County Council's overall financial position. The County Council continued to be a floor authority and as such received the lowest increase in government grant of 2.7% paid to upper tier authorities and therefore is more constrained financially than most comparator authorities. Services were required to achieve savings of £18.9m from increased efficiency and from reviewing priorities and these targets have been met.
2007/08 represented the second year of Adult Services financial recovery plan based on the modernisation of services in response to outturns above budget of £11.1m and £7.5m in 2005/06 and 2006/07 respectively. The plan has been successfully implemented. As a result of minimum winter pressures between November 2007 and March 2008, a planned carry forward of £3.5m to 2008/09 has also been achieved. In conjunction with improvements in five of the national indicators for adult social care, this demonstrates increased effectiveness in the use made of resources. Spending has continued to increase by 5.1% on the waste management contract in 2007/08, but this has been accompanied by a further increase in recycling levels and landfill diversion of household waste. The importance of recruiting and retaining more in-house foster carers in order to improve the stability of placements for looked after children has been recognized in the allocation of invest to save funding of £1.4m in 2008/09 to increase the allowances paid to in-house foster carers.
Summary Statement of Accounts 2007/08
The cost of Hampshire County Council services
The Income and Expenditure Account sets out the cost of running Hampshire County Council’s services in 2007/08, and where the money came from to pay for them. Hampshire County Council achieved an underspend of £8.2 million against the revised budget during 2007/08. £5.1 million of this underspend has been allocated to reducing the planned council tax rise in 2009/10 and 2010/11 from 3.5% to 3.0%. A further £2 million has also been allocated to repairing potholes and other road and pavement improvements.
The statement of the movement on the General Fund Balance summarises the costs that are recorded in the Income and Expenditure Account but are not chargeable to the General Fund, and thus why the General Fund Balance has increased by £6,558,000 despite the deficit on the Income and Expenditure Account, and is £8.2 million higher than budgeted.
Where the Council spent its money in 2007/08
Financial position of the Council at the end of 2007/08:
The Balance Sheet presents the financial position of the Council at 31 March 2008 and the value of its assets and liabilities. It shows what the Council owns and is owed. The total net worth of the council has increased by just over £460 million during 2007/08. This is mainly due to the revaluation of land and buildings which took place during the year.
Capital expenditure:
Capital expenditure is the money the Council spent on purchasing and improving assets such as buildings, roads and equipment. The Council receives the benefit from such capital expenditure over many years. Examples of large capital projects completed during 2007/08 include the opening of the Winchester Discovery Centre, the completion of six new or refurbished schools and major cycleway and bus route infrastructure improvements.
