Cabinet
14 February 2011
Overview and Scrutiny
18 February 2011
Agenda Item No_______11______
BUDGET MONITORING 2010/11 – PERIOD 9
Summary:
This report presents the budget monitoring position for the revenue
account and capital programme to the end of December 2010.
Conclusions:
The overall position at the end of December 2010 is showing an
underspend for the current financial year of £148,285. The overall
position will continue to be monitored over the remaining periods of
the current financial year.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the revenue account
forecast for the current financial year;
2) Cabinet approve the virement in relation to public conveniences as
detailed within section 3.2 (Resources) of the report;
3) That Cabinet note the current position on the 2010/11 capital
programme.
Cabinet member(s):
Ward(s) affected:
All
All
Karen Sly, Financial Services Manager, 01263 516243,
Karen.sly@north-norfolk.gov.uk
Contact Officer, telephone number,
and e-mail:
1.
Introduction
1.1
This report compares the actual income and expenditure at the end of period 9 which
ended on 31 December 2010 to the 2010/11 revised budget as reported to Cabinet on
29 November and approved by Full Council on 14 December 2010.
1.2
There will be a final budget monitoring report for the current financial year for the
position as at the end of January 2011. This will be reported to Cabinet and Overview
and Scrutiny in March and April. The overall position will continued to be monitored to
ensure that the revised budget remains achievable and where necessary and applicable
any actions are taken to achieve this.
1.3
A revised capital programme for the period 2010/11 to 2013/14 is included within the
2011/12 Budget Report which is also on this agenda. The latest budget monitoring for
schemes within the current capital programme is included in this budget monitoring
report at section 7 but to avoid any duplication details of any scheme slippage to future
financial years has been included in the Budget Report.
2.
Background
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14 February 2011
Overview and Scrutiny
18 February 2011
2.1
Budget monitoring is carried out on a monthly basis with service managers and those
officers with budget responsibility. The detail within this report highlights the more
significant variances against the profiled budget to date along with those which are
expected to have a year end variance and also where applicable to recommend action to
be taken to ensure that the overall budget remains achievable.
2.2
As outlined at 1.1 the budget has been revised during the year and was approved by Full
Council in December. The revision of the budget part way through the year allows for the
individual budgets to be updated to take account of the latest position and also to reflect
variances previously reported and allows for proactive measures to be taken where
necessary to maintain a balanced budget position for the year.
3.
Budget Monitoring Position – Revenue Services
3.1
The General Fund summary (Appendix K) shows the overall position at the end of period
9 and is currently showing a year to date variance of £975,177. There are however
commitments which represent orders placed but not delivered of £637,897 still to be
taken into account leaving a net position of £337,280. Further details on each of the
service areas are included within Appendix L.
3.2
The following tables provide details of the more significant variances, along with those
which are anticipated to have a full year effect for each of the five main service areas.
Some services that are predicting a full year underspend have made a request to carry
underspend forward to the new financial year. All requests to carry forward year end
underspends will be considered as part of the final accounts process, once the overall
financial position for the year is known.
Community
Development Control – Of the variance to date
£13,619 relates to additional income from
planning fees above the profiled budget, this is
currently expected to result in a full year effect of
£15,000.
Planning Policy – The main reason for variance
to date is that the Planning Inspectorate has not
yet billed the Council for the LDF examination
fees. These are being funded from the Housing
and Planning Delivery Grant (HPDG) earmarked
reserve. Although the actual costs are expected
to be less than originally budgeted, this will
leave an unallocated balance of £50,000 within
the HPDG earmarked reserve. Adoption costs of
the LDF of £20,000 were budgeted in the current
year, again to be funded from the earmarked
reserve. These are not now planned to be
Over/(Under)
spending to
date
£
(17,665)
(52,747)
Estimated
full year
effect
Performance
Indicator at
Period 9
where
applicable
£
(15,000) 1,077
applications
have been
received to P9
in the current
year compared
with 930 for
the same
period in
2009/10
0
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14 February 2011
Overview and Scrutiny
18 February 2011
incurred until the new financial year and
therefore will require the budget to be rolled
forward at the year end.
General Economic Development – The
variance to date is due to a number of delays in
scheduled work due to restructuring of public
sector partnership providers. It is not currently
anticipated that there will be a full year effect.
Coastal Pathfinder – This represents an
underspend on the project to date, any year end
underspend will be carried forward to fund the
projects as per the plan.
Strategic Housing – This service includes the
VAT shelter receipt which is then transferred to
the capital projects reserve to fund the housing
capital programme. The revised budget
assumed £604,000 would be received in the
year, the latest projections received from the
housing trust suggest that the actual will be
£60,250 less, this will be adjusted for by
movements to and from the capital projects
reserve. There is anticipated to be an
underspend of £45,000 on expenditure being
funded from the homelessness prevention grant,
and a request will be made to carry this forward
at the year end.
Local Land Charges – Of the variance to date
£8,480 relates to turnover savings due to a
vacant post not yet filled. This will result in a full
year underspend but this has been reduced
slightly from additional County Council Search
fees. There will be additional income in the year
from search fees chargeable, however due to
the land charge service being run on a cost
recovery basis it will prudent to earmark this for
future deficits. This will be monitored over the
coming months and the final position for the year
considered as part of the final accounts report.
Transport – The variance to date is made up of
a number of smaller underspends including
reimbursement to bus operators and costs for
the card management system. The full year
underspend relates to a creditor that was
entered for 2009/10 that is no longer required.
Sub Total Community
Environment
Environmental Health Service Management –
(61,134)
0
(391,049)
0
8,377
0
(14,737)
(8,000)
(12,481)
(5,000)
(541,436)
(28,000)
Over/(Under)
spending to
date
Estimated
full year
effect
£
(18,548)
£
0
Performance
Indicator at
Period 9
where
applicable
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14 February 2011
Overview and Scrutiny
18 February 2011
Of the variance to date £5,068 relates to an
underspend on training for which some invoices
have not yet been received and other training
needs have been identified and will delivered
before the end of the year. The remaining
variance relates to a number of smaller
variances to date.
Parks and Open Spaces – Within the variance
to date there is an underspend on grounds
maintenance for which £10,000 will be used to
fund the emergency remedial tree works
referred to in Woodlands Management below.
Leisure Complexes – The underspend to date
reflects repairs and maintenance work not yet
invoiced for £4,068, the balance however does
represent a projected full year underspend.
Other Sports – The variance to date consists of
a number of smaller variances including income
for the walking project and free swimming
initiative grant still to be offset by expenditure.
The full year effect reflects additional
contributions made in the year, these have been
partly offset by additional income from the
mobile gym.
Pier Pavillion – No further repairs planned at
the Pier Theatre in this financial year.
Woodlands Management – The variance to
date and full year effect reflects emergency oneoff tree repairs required as a result of Health and
Safety inspections.
Cromer Pier - No further minor repairs and
maintenance are planned for the pier this
financial year, however it is expected that any
underspend on repair in the year will be
requested to be rolled forward at the year end to
fund repairs in 2011/12.
Public Conveniences – The main reason for
the variance to date is due to invoices from the
contractor not yet received and therefore paid.
There is expected to be an overspend in relation
to repairs and maintenance. This has been
partly offset by a business rates refund and the
balance of £16,885 can be funded by a virement
from foreshore properties and admin buildings
for which approval is sought within this report.
Waste Collection and Disposal – Of the
variance to date the majority relates to
outstanding invoices not yet received from the
contractor for contract fees and Norfolk County
Council for waste disposal and therefore not
processed for payment. The full year effect is
made up of additional profit share income of
£112,000 due to an increase in the price of
(6,709)
(10,000)
(11,233)
(5,000)
(6,042)
4,500
(4,124)
(5,500)
14,510
10,875
(14,879)
0
(24,721)
0
(107,542)
(82,000)
Recycling rate
for all
recyclables
46.15%*,
target 47.5%.
(* Actual at
end of
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14 February 2011
Overview and Scrutiny
18 February 2011
November
2010)
recycling materials sold, £5,000 for processing
of street sweepings and £15,000 for recycling
initiatives not required in the year. These have
been offset by a variance on contract payments
of £30,000 and reduced income from recycling
credits mainly due to a lower tonnage of glass
recyclable material of £20,000.
Cleansing – The variance to date reflects
contractor invoices outstanding.
(63,832)
0
Environmental Strategy – This service
includes costs for the green travel plan of
£3,000, carbon reduction revenue initiatives of
£40,000 both being funded from earmarked
reserves in the current year. The service also
includes costs for a number of projects totaling
£22,500 being funded from an area based grant
received in 2009/10. These projects include a
Global Action Plan to support individuals in their
homes for energy saving initiatives. A number of
the carbon reduction projects are planned to be
delivered within the next four years and
therefore will require slipping to future financial
years. Of the remaining current year costs there
is anticipated to be a full year underspend in the
region of £20,000 for which a request will be
made at the year end to roll this forward to the
new financial year.
2,900
0
Civil Contingencies – Of the variance to date
£9,909 relates to an underspend on employee
related costs due to a current vacant post and
training not yet undertaken. This is expected to
result in a full year underspend of £18,000. Of
the remaining underspend to date £4,262 relates
to outstanding invoices not yet received.
Sub Total Environment
(20,847)
(18,000)
(261,067)
(105,125)
Over/(Under)
spending to
date
Estimated
full year
effect
£
(25,546)
£
(8,000)
15,706
10,000
Information
IT – Support Services – The underspend to
date includes £11,777 for computer hardware
leased and purchased but not yet invoiced,
£5,922 for staff training not yet undertaken and
£7,559 for telephone rental and call costs, this is
anticipated to give a full year saving of £8,000.
TICs – Salaries and oncosts for holiday pay
entitlement.
Performance
Indicator at
Period 9
where
applicable
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14 February 2011
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18 February 2011
Registration Services – Of the variance to date
£6,644 relates to postage costs for which most
is recoverable. The full year effect relates to
additional employee costs for by-elections and
parish polls which are not rechargeable.
Members Services – The underspend to date is
made up of a number of variances including an
underspend on computer hardware purchases of
£4,900, Members traveling allowances of £4,598
and basic allowances of £2,775. Overall these
are anticipated to result in a year end
underspend of £6,000.
Graphical Information System –GIS
development work was budgeted for within the
revenue account in the year, this is now being
funded as a one-off from the BPR capital
project.
Media and Communications – Following a
restructure within the team there is a net
overspend in the year, this will be funded from
the Restructuring Reserve.
Sub Total - Information
Resources
Car Parking – Of the variance to date there is
an underspend on expenditure of £37,445 of
which £29,702 relates to invoices not yet
received and processed for payment for the
management and cleansing contracts. There is
an unfavourable variance on income of £29,382
mainly due to an 8.6% (£26,856) reduction in
pay and display income during the third quarter
of the year compared to the previous year and
also £4,578 shortfall from excess charge
income. Based on the actuals to date and trends
shown in previous years it is anticipated that
there will be a full year shortfall on income in the
region of £64,000.
Industrial Estates – The variance to date and
full year effect reflects the impact of the
collection of previous years arrears in excess of
debtor provisions made.
Benefits – The variance to date reflects bad
debts charged to the service, it is not currently
envisaged that this will result in a full year effect.
5,525
2,160
(16,040)
(6,000)
(6,744)
(10,000)
(6,163)
6,000
(33,262)
(5,840)
Over/(Under)
spending to
date
Estimated
full year
effect
£
(8,063)
£
64,000
(5,024)
(5,150)
18,604
0
Performance
Indicator at
Period 9
where
applicable
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18 February 2011
(39,075)
(33,500)
(15,804)
9,530
(670)
6,300
(50,032)
41,180
Over/(Under)
spending to
date
Estimated
full year
effect
Personnel and Payroll Support Services – Of
the underspend to date £8,062 relates to
relocation and interview expenses not incurred.
Taking into account minimal external adverting
and appointments being made, it is expected
that this will result in a full year saving of
£10,500. The remaining variance for the current
year relates mainly to the common training
budget which is showing an underspend of
£35,378. This does include £12,000 for
Members induction and subsequent training and
will be requested to be carried forward at the
year end for the training to be delivered after the
May 2011 elections. Taking this into account still
gives a predicted underspend of £23,000 in the
current year.
Administration Buildings – Of the variance
£23,711 relates to outstanding invoices in
relation to the cleansing contract. There is an
overspend of £9,530 for electricity at Fakenham
Connect, this is due to previous estimated
readings being too low, mainly in relation to the
CCTV control room. Actual readings are now
being taken on a regular basis.
Property Services – The full year overspend
relates to work required identified from the
legionella survey.
Sub Total Resources
Supporting Communities
Active Communities – Expenditure not yet
incurred on the North Norfolk Youth Voice.
Community Safety – External grants received
for which the expenditure is yet to be incurred in
the current year.
CCTV – There are outstanding commitments for
replacement cameras and screens for the
control room.
Sub Total Supporting Communities
£
(13,524)
Performanc
e Indicator
at Period 9
where
applicable
£
0
(19,223)
0
(20,010)
0
(52,757)
0
4.
Budget Monitoring Position – Savings 2010/11
4.1
The following table provides details of the savings included in the 2010/11 revised
budget along with an updated forecast for the current year. Where a variance is shown,
comments on these was provided within section 3 of the report.
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18 February 2011
Service Area
Workstream 1 – Management Structures
Environmental Health
Planning and Building Control
Sub Total of Workstream 1 Savings
Workstream 2 - 6% Savings:
Environmental Health
Strategic Housing
Leisure and Cultural Services
ICT
Economic and Tourism Development
Finance and Exchequer Services
Organisational Development
Legal and Democratic Services
Sub Total of Workstream 2 Savings
Additional income from Corporate Asset Management –
Car Parks and Rent Reviews
Total Savings/ Income from Workstream 2
Total Savings/ Income
2010/11
Revised
Budget
£
2010/11 Variance
Forecast
£
£
75,000
121,733
196,733
75,000
121,733
196,733
0
0
0
25,410
32,910
24,682
30,000
30,291
29,400
1,000
15,000
188,693
22,678
25,410
32,910
24,682
30,000
30,291
29,400
1,000
15,000
188,693
0
0
0
0
0
0
0
0
0
0
22,678
211,371
408,104
188,693
385,426
22,678
22,678
4.2
The majority of the planned savings are still on target for the current year, the revised
budget was updated where applicable, as detailed within section 3 above there is
expected to be a shortfall from car parking income in the year.
5.
Treasury Management Quarterly Report
5.1
Treasury Management in Local Government is governed by the CIPFA Code of Practice
on Treasury Management which recommends that members should be informed of
Treasury Management activities at least twice a year, but preferably quarterly. This
report is in accordance with the Code and summarises the investment transactions
which have taken place in the three months to December 2010.
5.2
The headline inflation rate, Consumer Price Inflation (CPI), rose to 3.7% year-on-year to
December 2010, and the Bank of England in its November Quarterly Inflation Report
showed it remaining above the 2% target throughout 2011.
5.3
The UK economy grew in the third calendar quarter of 2010 by 0.8%, twice as much as
economists forecast, as the service and construction sectors helped sustain the
recovery’s momentum. The annual growth rate increased to 2.8%. However, in the
fourth quarter the economy is estimated to have contracted by 0.5%, rather than growing
as had been forecasted by economists. The bad weather in December, and consequent
disruption, contributed to the decline and without it the figure would have been flat at
0.0%.
5.4
The Bank of England’s Monetary Policy Committee (MPC) maintained the Bank Rate at
0.5% throughout the quarter, and although the MPC maintained Quantitative Easing (the
process where the Bank of England buys assets from banks and other institutions to
provide them with an injection of cash which is then lent out in the wider economy) at
£200bn, minutes of the Committee’s meetings showed the MPC was clearly ready to
resume asset purchases if the economy slowed faster than expected.
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18 February 2011
Table 1 below sets out key indicators economic relevant to treasury activities to the end
of period 9.
2010
Table 1
Indicator
March
June
September
December
0.5%
0.5%
0.5%
0.5%
- Consumer Price Index
3.4%
3.2%
3.1%
3.7%
- Retail Prices Index
4.4%
5.0%
4.6%
4.8%
% change on corresponding quarter
previous year
-0.2%
1.7%
2.8%
1.7%
% change on previous quarter
0.3%
1.2%
0.8%
-0.5%
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Public Sector Net Borrowing
£29.7bn
£39.2bn
£32.9bn
£46.3bn
Public Sector Net Debt
£772.2bn
£814.9bn
£842.3bn
£889.1bn
Net debt as a % of GDP
53.6%
55.7%
56.8%
59.3%
Feb - Apr
May - Jul
- Number (000s)
2,475
2,467
2,502
- Rate
7.9%
7.8%
7.9%
196
204
202
6.6%
6.8%
6.7%
Bank Base Rate
Inflation
Gross Domestic Product Growth (GDP)
Public Sector Finances
Aug - Oct
Unemployment
National
Eastern Region
- Number (000s)
- Rate
5.5
Security of the capital sum remains the Council’s main investment objective. This was
achieved by following the Council’s investment counterparty policy set out in its Treasury
Management Strategy Statement for 2010/11. This restricted new investments to the
following:
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18 February 2011
a. Deposits with UK Banks and Building Societies systemically important to the UK
Banking System and which have minimum long-term ratings of ‘A+’ or equivalent
from Fitch, Moody’s and S&P rating agencies.
b. Deposits with select non-UK banks (Australia, Canada, Finland, France,
Germany, Netherlands, Spain, Switzerland and the US). These countries, and
the banks within them, have been selected after careful monitoring of:
ƒ
Credit Ratings (minimum long-term counterparty rating of A+)
ƒ
Credit Default Swaps
ƒ
GDP: Net debt as a percentage of GDP
ƒ
Sovereign Support Mechanisms and potential support from a well
resourced parent institution
ƒ
Share Price
c. AAA-rated Stable Net Asset value Money Market Funds
d. Bonds issued by Multilateral Development Banks, such as the European
Investment Bank.
e. The Debt Management Office
f.
5.6
Other Local Authorities
Table 2 below sets out investment activity for the four month period.
Table 2
5.7
a)
Banks &
Building
Societies
c)
Balance
Investments
Investments
Balance
Increase/
30/09/2010
Made
Repaid
31/12/2010
(Decrease)
£000s
£000s
£000s
£000s
£000s
13,000
7,000
(2,000)
18,000
5,000
Money
Market Funds
5,075
14,290
(17,775)
1,590
3,485
d)
Bonds
9,500
0
(3,000)
6,500
(3,000)
e)
The Debt
Management
Office
0
4,130
(4,130)
0
0
27,575
25,420
(26,905)
26,090
5,485
The revised budget for 2010/11 anticipates that £559,600 will be earned in interest from
an average balance of £25.6m at 2.19%. The balance available for investment was
anticipated to be much higher than the amount included in the original estimate, due to
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18 February 2011
slippage in the capital programme. The revised budget assumed that £4.6m of usable
capital receipts and reserves would be applied to fund the capital programme. This
figure is likely to reduce to £1.04m for the year and this, together with capital grants
received in advance of incurring the expenditure, will contributed to a forecast higher
balance available for investment of £26.1m. However, the interest rate achieved on
investments will be lower than the figure in the revised budget and is now forecast to be
2.13%. This would result in a net reduction in interest of £5,500 against the revised
budget.
5.8
Two of the Council’s Eurosterling bonds with a value of £3 million matured on 7
December 2010. The average yield on these bonds was 5.26%. If, when the bonds
matured, the Council had replaced them with comparable bonds maturing in April 2014,
the yield would have only been 2.06%. This was not considered to be a good return for
the length of the investment and therefore no replacement bonds were purchased at that
time.
5.9
The Council’s Treasury advisors, Arlingclose, gave a presentation to members at a
Treasury Management Strategy Workshop in November 2010. One of the alternative
investment options considered was the use of Fund Managers and specifically Pooled
Investment Funds. These collective investment schemes are used by organisations to
pool their funds together enabling them to participate in a much wider range of
investments than would otherwise be possible individually, and to share the cost of doing
so.
5.10
Two fund managers were discussed; Investec and Payden & Rygel. Investec offer 3
funds (Liquidity Fund, Short Dated Bond Fund and Target Return Fund) investing in
different instruments with different degrees of risk which can produce higher, but more
volatile returns. Investors can then choose from 3 different models (Conservative,
Standard and Dynamic), which have holdings in the funds in different proportions. The
Liquidity Fund and the Short Dated Bond Fund are both rated AAA. The Target Return
Fund is not rated. Each model has its own target rate of return and carries a different
degree of risk; the higher the potential for out performance of the target return, the
higher the potential for risk and volatility in return. The standard Model for example has
a target return of the 7-day LIBID rate plus 0.95% (7-day LIBID is around base rate –
currently 0.5%), and requires an initial investment of £8 million. The model has
produced a cumulative return of 1.05% in the six months to December 2010 but with
some degree of volatility (0.00% in November, 0.3% in July). This is why investment in
the fund would have to be regarded a long-term commitment of at least a year which
gives the fund manager the opportunity to achieve the target return over a longer time
scale. There would be an annual management fee of 0.25% of the sum invested to be
deducted from the return.
5.11
The other fund considered was the Payden Sterling Reserve Fund. This fund only
invests in high quality liquid instruments with an emphasis on security. The fund has a
AAA credit rating and aims to deliver a return, net of fees, in excess of that available
from bank deposits and money market funds. The benchmark return is 7-day LIBID and
the management fee is 0.14% per annum of the sum invested. The fund is designed for
investment periods of 3 to 6 months, although it would be more realistic to view it as a 1
year investment. The actual return on the fund since its inception in July 2010 to
December 2010 is 0.55% after fees have been deducted, although it should be
acknowledged that this performance is being assessed over a very short period.
5.12
An investment in the Investec models would be classified as a Specified Investment (as
defined by the criteria set out in the CLG Investment Guidance) for the Liquidity Fund
and the Short Dated Bond Fund. However, the Target Return Fund would be classified
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Overview and Scrutiny
18 February 2011
as a Non-Specified investment (i.e. one that carries more risk than a Specified
investment) as this fund does not have its own individual credit rating. The Payden
Sterling Reserve Fund is classified as a Specified investment.
5.13
The Investec and Payden funds have advantages over term deposits. The investment is
more liquid and can be repaid to the Council at any time (i.e. four business days after
requesting repayment for the Invetec funds, or three business days in the case of the
Payden fund) A term deposit cannot usually be repaid before its maturity date. Also, the
investment is more diversified. The Council is spreading the counterparty risk over more
counterparties than it could do with individual deposits, and it can access counterparties
normally unavailable to it (due to the relatively small amount of funds the Council has
available for investment).
5.14
The Payden fund is considered the best option for the Council. It will allow the Council
to diversify its investments with the potential to achieve a better return than its term
deposits, without having to commit £8 million for a much longer period required under
the Investec fund. As a first step into this type of investment, the intention is to place £1
million in the Payden Sterling Reserve Fund when funds become available, and monitor
the investment performance over the next twelve months. The investment would be
allowed under the Council’s current Treasury Management Strategy which approves the
use of such Collective Investment Schemes.
5.15
The Council can confirm that it complied with its Prudential Indicators for 2010/11 which
had been set at Full Council on 24 February 2010.
6.
Budget Monitoring Position – Summary
6.1
The following table provides a summary of the full year projections for the five main
service areas along with an updated use of reserves figure
Service Area
Community
Environment
Estimated Full Year
Effect
£
(28,000)
(105,125)
Information
(5,840)
Resources
41,180
Supporting Communities
Service Variance Total
Contributions to/ (from) Reserves:
General Fund Reserve
Other Reserves
Non Service Expenditure and Income
Total Impact
0
(97,785)
(6,000)
5,500
(98,285)
6.2
Overall the revenue position shows an underspend of £98,285. Any unallocated
underspend would be transferred to the restructuring reserve at the year-end, to be used
to fund one-off restructuring costs from 2011/12. The overall position will continue to be
monitored over the coming weeks before the year-end.
6.3
A number of the savings in the current year identified in the report are anticipated to be
one offs, for example where there has been delay in appointing to vacant posts, others
Cabinet
14 February 2011
Overview and Scrutiny
18 February 2011
that are anticipated to deliver ongoing savings have already been factored into the
budget for 2011/12 which is included on this agenda also.
7.
Budget Monitoring Position – Capital
7.1
Members were provided with a copy of the revised capital programme as part of the
2010/11 Revised Budget report to Cabinet on the 29 November. In addition to this at the
meeting, approval was also given to a further £30,000 virement from the unspent capital
allocation for the Battle of Britain Hall scheme, into the Stalham Sports Hall
Improvements project.
7.2
Appendix M shows the latest position against the current 2010/11 approved programme
and provides details of expenditure up to the end of period 9, along with comments on
the progress of individual schemes.
7.3
Further slippage of capital budgets into 2011/12 has been identified, although not
included within this report. The additional slippage has been used to update future years
budgets, and has been incorporated into the 2011/12 Base Budget report which is
included elsewhere on this agenda.
8.
Implications to the Council
8.1
The detail within section 3 of the report outlines the significant variances against the
profiled budget to the end of period 9 for each of the five service areas and also those
anticipated to have a variance at the year end. Overall the total of the projected service
variances at the year-end is an underspend of £98,285, this is after allowing for the
updated contributions to and from reserves.
8.2
The overall budget will continue to be monitored by officers and reported to Members on
a regular basis.
9.
Recommendations
9.1
It is recommended that:
1) Cabinet note the contents of the report and the revenue account forecast for the
current financial year;
2) Cabinet approve the virement in relation to public conveniences as detailed within
section 3.2 (Resources) of the report;
3) That Cabinet note the current position on the 2010/11 capital programme.