Agenda Item No____10________
BUDGET MONITORING REPORT 2012/13 – PERIOD 9
Summary:
This report summarises the budget monitoring position
for the revenue account to the end of December 2012.
The base budget report for 2013/14 is included on the
agenda as a separate item and includes a full review of
the capital programme and therefore the capital
programmed has not been included within the budget
monitoring report.
Options considered:
Not applicable
Conclusions:
The overall position at the end of period 9 shows a
forecast over spend of £19,400 for the current financial
year on the revenue account.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
System budget monitoring reports
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1.
Introduction
1.1.
This report compares the actual expenditure and income position at the end
of December 2012 to the revised budget for 2012/13 as approved by Full
Council in December 2012.
1.2.
The budget report for 2013/14 is included on the agenda as a separate report
and includes a review of the capital programme for the current and future
years, therefore the capital programme has not been included as part of the
budget monitoring report.
1.3.
The base budget for 2012/13 included savings and additional income of
£897,096. This report includes the latest position on both of these areas.
1.4
The budget monitoring position at the end of September was reported to
Members in November, this report now provides the latest updated position
on the revenue account.
2.
Budget Monitoring Position – Revenue Services
2.1
The general fund summary at Appendix K shows the high level budget
monitoring position at 31 December 2012 which shows a year to date
variance of £513,995 underspend. Appendix L provides further details of the
individual service variances.
2.2
The following tables provide reasons for the more significant variances along
with those which are anticipated to have a full year effect.
Table 1 – Service Variances
Assets and Leisure
Car Parking – Additional expenditure relating to repairs and
maintenance and rates of £6,543 is offset by partly reduced
energy costs (£1,201). Income is higher than anticipated by
(£45,000) although the sale of season tickets has been less
than budgeted.
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(35,865)
0
Administration Buildings – The main areas of reduced costs
within this service grouping relate to reduced expenditure on
premises (£8,795) together with a reduction in expenditure on
stores issues for the canteen (£10,338).
(23,553)
0
Sports Centres – Expenditure on sports centres is lower than
anticipated with reductions against the profiled budget for
repairs and maintenance, bar purchases and overtime
(£13,650) together with hall hire charges from the schools
(£25,000) for which an invoice is awaited. More significant in
the longer term is the reduction in income where a difficult
staffing position has meant that it has reduced the ability to
focus on promoting the centres and increasing income,
£9,992, together with lower than expected bar sales £6,371.
(26,910)
6,000
(60,800)
0
(39,196)
0
Community and Economic Development
Coast Protection – Less use of consultants (£7,400) and a
programme of sea defence works which are running behind
the spending profile (£52,100) account for the main variances
on this service at the end of period 9 we anticipate that any
underspend at the year-end will be carried forward.
Pathfinder – In the main this under spending at period 9
relates to proposed initiatives in preparing an integrated
coastal initiative. Any under spending on this service will be
rolled forward at the year-end as it is funded from the
Pathfinder initiative.
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(22,770)
(3,500)
(82,689)
0
(29,622)
0
(55,780)
0
42,115
25,000
Environmental Health
Waste Collection and Disposal – Additional income has been
generated in respect of the garden bin service.
(19,165)
(20,000)
Financial Services
Local Taxation – A receipt of grant from DCLG regarding
Localism which is not yet matched by expenditure (£40,000).
(47,770)
0
Benefits – The net position on this service at period 9 relates
to bad debt write offs which were not budgeted for at service
level of £25,000 and a number of smaller savings (£11,000).
14,652
0
Corporate Finance – Staff savings (£16,000) due to a vacant
post and reduced bank charges (£2,200). Recruitment
(19,202)
(2,000)
Community and Localism – The majority of this under
spending at period 9 is made up of two elements;
consultation expenditure not yet incurred (£12,000) and the
receipt of the Town Team Partners grant from the DCLG in
advance of any planned spend (£10,000). Overall there is
anticipated to be a small year end underspend.
Customer Services
IT Support Services – There is an underspend to date on
employee costs (£18,000). Additionally timing issues between
the estimated spend and the actual position relating to
professional fees, communication costs, consumables and
computer software (£64,000) will be addressed by the end of
the financial year. Currently the service are not anticipating a
year end variance.
Media and Communications – The majority of savings
identified within this service are to be vired at the year end to
provide funding for the purchase on new scanners due to PC
upgrade programme.
Development Management
Development Management –As a result of the receipt of a
number of large planning applications the actual income
figure to the end of December is running in advance of the
profile (£54,100). This surplus is to be earmarked to fund
additional temporary staff as previously reported in the
budget monitoring reports.
Building Control and Access – this overspend position is the
result of a small saving on expenditure (£7,800) which is
more than offset by a lower than anticipated income figure to
the end of period 9 of £50,000.
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
advertising and interim staffing will reduce this saving by the
end of the financial year.
Organisational Development
Human Resources and Payroll –The spending on training is
behind the profile at period 9 (£38,600). Training will be
delivered following an assessment of the results of the annual
appraisal process. A number of minor variances in
expenditure account for the remaining balance of which
(£2,900) relates to employee costs.
(50,357)
(20,000)
Policy and Performance Management – Savings on
employee costs (£7,650) combined with timing differences on
consultation activities and grants (£26,700) account for most
of this underspend.
(35,060)
(9,000)
Registration Services – The Election Claims Unit (ECU) have
now approved expenditure in relation to the referendum and
the final account can be completed. An invoice in respect of
the Alternative Vote referendum is to be raised £73286. In
addition there is postage in respect of the Police
Commissioner election of £23,000 which will be recovered
from the Returning Officer account.
96,286
0
(16,707)
(10,000)
(25,016)
(11,000)
(437,409)
(44,500)
Corporate
Member Services – The current position reflects savings due
to a delay in recruitment (£4,681) combined with lower
member’s costs (£11,600). The full year impact is likely to be
(£10,000).
Legal Services – Reduced expenditure to date on client
disbursements and legal publications (£10,765) and other
smaller changes combined with higher fee income (£8,250)
account for the current position.
TOTALS
3.
Budget Monitoring Position – Savings and Additional Income
3.1
The budget for 2012/13 included savings and additional income totalling
£897,096 within the service areas; the revised figure for the current year is
now £880,065 although it is anticipated that all savings will be back on target
for 2013/14. The following table shows a summary of the savings across each
of the service areas. The detail for each of the service savings is included at
Appendix M. Table 2 below summaries the current position for each service
heading.
Table 2 – Savings and Additional
Income 2012/13
Assets Coastal Defence & Leisure
Customer Services
Community and Economic Development
Development Management
Environmental Health
Financial Services
Organisational Development
Corporate
Total
2012/13
Revised
Budget
£
231,778
157,996
39,980
82,600
186,706
93,285
20,160
67,560
880,065
4.
Treasury Management Position
4.1
The budget for 2012/13 anticipated that a net total of £269,900 would be
earned in interest. This assumed an average balance of £26m at a rate of
1.03%.
4.2
At the end of period 9, a total of £163,135 had been earned resulting in a
shortfall against the year to date budget of £3,000. The rate of interest
achieved was 0.9% from an average balance available for investment of
£25.0m.
4.3
Based on the actual results to period 9, a total interest receivable figure of
some £206,000 is forecast for the year from an average balance £25.4m at
an average rate of 0.81 %. This will result in an estimated shortfall against
the full year budget £63,900.
4.4
A report was presented to the Cabinet meeting in October 2012 on investing
in pooled property funds. The Council’s treasury advisor was suggesting the
Council should consider an investment of £5m in the LAMIT fund. It was
anticipated that investment in the fund would take place over the coming
months and as a result of this the expectation was that the overall position on
investment income for 2012/13 would improve. However, not all of the partner
authorities are ready to make their individual commitments and as a result the
entry to the fund is delayed probably until April 2013.
5.
Budget Monitoring Position - Summary
5.1
The following table provides a summary of the full year projections for the
service areas along with an updated use of reserves figure where applicable.
Table 3 - Summary of Full Year Effects
2012/13
Service Areas (Table 1)
Non Service Expenditure (Para 4.3)
Total Impact
Estimated
Full Year
Effect
(£)
(44,500)
63,900
19,400
5.2
Overall the revenue position shows a projected over spend of £9,400 for the
current financial year.
6.
Conclusion
6.1
The revenue budget is showing an estimated full year over spend for the
current financial year of £9,400. The overall financial position continues to be
closely monitored in the last quarter of the financial year and it is anticipated
that the overall budget for the current year will be achieved.
7.
Financial Implications and Risks
7.1
The detail within section 2 of the report highlights the more significant
variances including those that are estimated to result in a full year impact. In
addition the progress made in achieving the two work stream savings targets
from the management restructure and pay and grading will continue to be
monitored and managed to ensure that the overall impact to the Council’s
budget is mitigated.
7.2
The budget for 2012/13 included service savings and additional income
totalling £897,096 and whilst there have been some in the current year that
have been reduced, the progress in achieving these is being monitored as
part of the overall budget monitoring process and where applicable corrective
action will be identified and implemented to ensure the overall budget remains
achievable.
8.
Sustainability - None as a direct consequence from this report.
9.
Equality and Diversity - None as a direct consequence from this report.
10.
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.