Agenda Item No_____10_______
BUDGET MONITORING REPORT 2012/13 – PERIOD 10
Summary:
This report summarises the budget monitoring position
for the revenue account and capital programme to the
end of January 2013.
Options considered:
Not applicable
Conclusions:
The overall position at the end of period 10 shows a
forecast under spend of £18,935 for the current financial
year on the revenue account. The overall position will
continue to be monitored for the remaining periods of
the current financial year.
Recommendations:
It is recommended that:
1) Cabinet note the contents of the report and the
current budget monitoring position;
2) Cabinet note the current position in relation to the
2012/13 capital programme, and approve the
amendments to the capital schemes as identified in
paragraph 6.3.
Reasons for
Recommendations:
To update Members on the current budget monitoring
position for the Council.
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 January 2013 to the revised budget for 2012/13 as approved by Full
Council in December 2012.
1.2.
The budget monitoring position at the end of period 9 was presented to
Cabinet and Overview and Scrutiny in February. That report included a
detailed commentary on the variances to the end of December 2012 and also
the Treasury Management Quarterly Report. The reason for taking two
consecutive period budget monitoring reports so close to the year end is to
allow sufficient time for actions to be taken where necessary and appropriate
to ensure that the revised budget for the current year remains achievable and
is also an important piece of preparatory work for the final outturn position that
will be reported to members in June 2013.
1.3.
This report for period 10 aims to provide an overview of the more significant
variances and appraise Members of the forecast year end position. It also
starts to highlight budgets that will not be fully expended by the end of
financial year and where requests will be made to carry forward budget
provision to the 2013/14 financial year.
1.4.
The latest budget monitoring for schemes within the current capital
programme is included in this budget monitoring report at section 6 and also
within Appendix C.
1.5.
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.
2.
Budget Monitoring Position – Revenue Services
2.1
The general fund summary at Appendix A shows the high level budget
monitoring position at 31 January 2013 which shows a year to date variance
of £610,363 underspend although there are outstanding commitments of
£1,831,866. Appendix B 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. Where applicable
the estimated full year effects assumes the carry forward of underspends to
the new financial year where they will be used to fund current budget
commitments or expenditure that is not budgeted for in 2013/14. Decisions on
the actual amounts rolled forward will be taken as part of the overall outturn
report which will be reported to Members in June 2013.
Table 1 – Service Variances
Assets and Leisure
Car Parking – There is additional expenditure relating to
repairs and maintenance and rates of £10,897. Income is
also higher than anticipated by (£46,000) from car parking
fees and penalty charge notices. The full year effect of the
increase in income is anticipated to be £30,000. A more
detailed breakdown in relation the car parking income is
provided at 2.3.
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(35,376)
(30,000)
Parklands - Additional expenditure has been incurred to date
of £8,322 in relation to repairs and maintenance which is not
rechargeable. This is due to a major water leak and other
general maintenance on the site. Further expenditure of
approximately £5,000 is anticipated on essential works.
6,724
13,000
Administration Buildings – The main areas of reduced
costs within this service grouping relate to reduced
expenditure on premises (£8,979) together with a reduction in
expenditure on the purchase of materials and equipment of
(£4,550).
(13,775)
0
Foreshore – There is currently a reduction in repairs and
maintenance of (£14,150) and (£1,013) of utilities
expenditure, however these budgets are anticipated to be
spent by the end of the financial year.
(18,016)
0
Over/
(Under)
Spend to
Date
£
5,318
Estimated
Full Year
Impact
£
14,788
13,000
(15,289)
0
General Economic Development - This budget is fully
committed against projects although the timing of these may
lead to the request for some provision to be rolled forward in
to the new financial year.
(49,140)
0
Coast Protection – Less use of consultants (£9,040) and a
programme of sea defence works which are running behind
the spending profile (£100,000) account for the main
variances on this service at the end of period 10. It is
anticipated that there will be a need to roll forward an
underspend of £100,000 at the end of the year relating to two
projects behind schedule due to the weather.
(112,101)
0
Pathfinder – In the main this under spending at period 10
relates to proposed initiatives in preparing an integrated
coastal initiative. An anticipated under spending of £60,000
on this service will be rolled forward at the year-end as it is
funded from the Pathfinder Reserve.
(44,995)
0
Community and Localism – This under spend is made up of
the following elements; consultation expenditure not yet
incurred (£13,052); the receipt of the Town Team Partners
grant from the DCLG in advance of any planned spend
(£10,000) and the receipt of “Warm and Well” and Youth
Advisory Board project income in advance of planned spend
(62,157)
(3,500)
Table 1 – Service Variances
Sports Centres – Expenditure on sports centres is lower
than anticipated with reductions against the profiled budget
for repairs and maintenance, bar purchases and overtime
(£10,023). More significant in the longer term is the reduction
in income of £12,960 where a difficult staffing position has
meant that it has reduced the ability to focus on promoting the
centres and increasing income. The position has worsened
compared with period 9 as a result of the pitches being
unavailable due to the bad weather. There is also lower than
expected bar sales totalling £6,650. Overall there is
anticipated to be a full year unfavourable variance of £8,500.
Public Conveniences – Expenditure is higher than
anticipated due to additional expenditure on repairs and
maintenance of £5,773 and utilities costs of £8,167. A full
year effect of additional expenditure on water and sewerage
is anticipated of £13,000.
Community and Economic Development
Planning Policy – Professional fees relating to Community
Infrastructure Levy consultants are not likely to be incurred
until 2013/14. It is requested that £18,000 be earmarked for
this purpose as no base budget exists in 2013/14.
8,500
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
(£36,925). It is anticipated that any unspent grant will be
transferred to an earmarked reserve at year end. Overall
there is anticipated to be a small year end underspend
(18,677)
(12,180)
(42,933)
(9,655)
Homelessness – The variance to date reflects the VAT
shelter receipts above the level budgeted to date, any
additional at the year end will be transferred to the capital
projects reserve.
(31,939)
0
Media and Communications – The variance to date
includes a number of underspends, including £8,261 for
reprographics paper costs resulting from purchasing at an
improved price, £8,612 other professional fees lower as a
result of not having to buy in graphic design or media support
and £4,730 for graphics materials not yet purchased. Of
those that are anticipated to continue to the year-end £14,500
is being used for funding the purchase of new scanners within
the PC upgrade programme.
(24,214)
0
(124,536)
(50,000)
Coastal Management – The year to date variance of
£18,667 is mainly due to an underspend of employee related
expenditure (salary and employee travel and subsistence)
due to vacant posts within the service. There will be a full
year effect of £12,180 as the Assistant Coastal Engineer
vacancy has now been filled.
Customer Services
IT Support Services – There is an underspend to date on
employee costs of £21,213 which will continue to the year
end and is anticipated to result in a full year underspend of
approximately £26,000. Additionally £16,836 of the
underspend to date reflects timing issues between the
estimated spend and the actual position relating to
professional fees, communication costs, consumables and
computer software, although these will be addressed by the
end of the financial year. A request will be made to roll
forward £10,000 to the new financial year to cover the cost of
weekend working to undertake essential upgrades and
moves, in additional £6,480 will be used as a contribution to
capital to fund the replacement of PCs (see 6.3 i) due to the
upgrade to Windows 7.
Development Management
Development Management – As a result of the receipt of a
number of large planning applications, the current income
figure to the end of January is running in advance of the
profile by £115,000. £45,000 of this surplus is to be
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
earmarked to fund additional temporary staff as previously
reported in the budget monitoring reports. The continuing
level of significant fee paying applications has meant that an
additional (£50,000) surplus is now estimated for the current
financial year.
49,964
65,000
(26,633)
(20,000)
(18,674)
(10,000)
(39,571)
0
Benefits – Of the variance to date there is an overspend of
£35,040 in relation to bad debt write offs not budgeted for at
service level. This is partly offset by turnover savings relating
to temporary posts not yet filled. It is estimated that there will
be a full year effect of (£20,000) and a request will be made
to carry this forward to allow for the continuation of additional
staffing support into the next financial year.
21,861
0
Corporate Finance – The variance to date mainly reflects
staff savings of £18,306 due to staff turnover post and
reduced bank charges of £2,786. A request will be made to
roll £15,000 of this underspend forward to provide for final
accounts support in pending the recruitment and appointment
to a current vacant post. Overall there is still estimated to be
a saving of £9,000 for the current year.
(22,055)
(9,000)
(57,876)
(28,000)
Building Control and Access – This overspend position is
the result of falling income levels caused by the continuing
depression in the building trade. After allowing for a shortfall
in income to the end of the financial year and allowing for a
saving on transport related costs of £5,000 it is anticipated
the full year effect will be a £65,000 overspend/ under
recovery of income.
Environmental Health
Waste Collection and Disposal – Additional income has
been generated in respect of the garden bin service.
Environmental Protection – This relates to savings on
employee costs due to current vacant posts and recharges
from assisted burials which may be mitigated by recruitment
to the commercial team by the year end.
Financial Services
Local Taxation – Costs associated with software changes
relating to Council Tax Localism which have been committed
but not yet spent for which new burdens funding has been
received. There is not anticipated to be a full year effect as
any unspent grant will need to be required in the new
financial year.
Organisational Development
Human Resources and Payroll – Expenditure on training is
Table 1 – Service Variances
Over/
(Under)
Spend to
Date
£
Estimated
Full Year
Impact
£
behind the profile at period 10 and accounts for £43,589 of
the variance to date. Of the remaining variance to date,
£3,266 relates to an underspend on employee costs and the
balance reflects a number of minor variances in relation to
expenditure. There is anticipated to be a full year saving of
£53,000, although some will be required in 2013/14 for which
an annual budget does not exist, including £10,000 for costs
related to Investors in People (IIP) accreditation; £10,000 for
restructuring within the service and £5,000 for Members’
induction training. Overall there is still expected to be a net
saving of £28,000.
Policy and Performance Management – Savings on
employee costs (£8,742) combined with timing differences on
consultation activities and grants (£21,488) account for most
of this underspend.
(30,969)
(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 will be raised of £73,286.
In addition there is postage in respect of the Police
Commissioner election of £23,000 which will be recovered
from the Returning Officer account. There is a request to roll
forward a £3,000 underspend to meet staffing costs as a
result of covering for long term sickness absence.
100,385
0
(2,428)
10,000
(23,831)
(11,000)
(648,084)
(82,835)
Corporate
Corporate Leadership Team – The full year effect relates to
additional costs for the Monitoring Officer.
Legal Services – Reduced expenditure to date on client
disbursements and legal publications (£12,686) and other
smaller changes combined with higher fee income (£11,054)
account for the current position.
TOTALS
2.3
Car Parking Income – the following table provides a more detailed breakdown
of the movement on car parking income for the current year and the projected
outturn position.
Revised
Annual
Budget £
Budget to
Period 10
£
Actual to
Period 10
£
Anticipated
Outturn
Position £
Estimated
Full Year
Impact £
Pay and Display Car
Parking Charges
Excess Parking
Additional Contract
Admin Costs
Season Tickets
Other Income (including
rents)
Gross Income
Gross Expenditure
Net Position
(1,731,662)
(1,588,538)
(1,624,708)
(1,755,662)
(24,000)
(139,490)
(119,044)
(129,168)
(149,490)
(10,000)
4,000
4,000
(196,500)
(156,882)
(154,924)
(196,500)
0
(56,957)
(25,520)
(27,264)
(56,957)
0
(2,124,609)
(1,889,984)
(1,936,064)
(2,154,609)
(30,000)
622,140
632,845
834,484
0
(1,267,844)
(1,303,219)
(1,320,125)
(30,000)
834,484
(1,290,125)
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. 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 10, a total of £181,058 had been earned resulting in a
shortfall against the year to date budget of £15,097. The rate of interest
achieved was 0.8% from an average balance available for investment of
£26.1m.
4.3
Based on the actual results to period 10, a total interest receivable figure of
some £206,000 is forecast for the year from an average balance £25.7m at
an average rate of 0.8%. This will result in an estimated shortfall against the
full year budget £63,900 which is consistent with the position anticipated at
the end of period 9.
4.9
Following a decision in October 2012 to invest in pooled property funds 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
(£)
(82,835)
63,900
(18,935)
5.2
Overall the revenue position shows a projected underspend of £18,935. All
requests to carry forward year end underspends will be considered as part of
the final accounts process, once the outturn financial position is known. The
overall position will continue to be monitored over the coming weeks leading
up to the year-end.
6.
Budget Monitoring Position - Capital
6.1
An update of the capital programme was presented to members in February
as part of the budget report.
6.2
Appendix C shows the latest position against the current 2012/13 approved
programme, and provides details of expenditure up to the end of period 10.
6.3
Following a review of individual capital schemes the following additional
virements and changes to the capital programme have been incorporated into
the Appendix, with approval now being requested for these changes.
a. Fakenham Factory Extension – The scheme is now complete, and it is
anticipated that once the final retention payment has been made, that
the scheme will be £24,382 under budget. Approval is sought for
virement of these monies to other capital schemes where expenditure
has been in excess of agreed budgets.
b. Cromer Red Lion Refurbishment – The scheme has been completed
and new retail tenants are in occupation. In total, an over spend of
£4,154 is anticipated against this scheme, with a virement requested
from the Factory Extension budget, to cover this.
c. Sheringham East Prom Public Conveniences – The works on this
scheme have been completed and we are currently in the defects
period. The scheme is £3,692 over budget and a virement is
requested from the Factory Extension budget underspend to finance
this.
d. Sheringham Little Theatre – Works are complete and the scheme is
£6,918 over the approved budget. A virement is requested from the
Factory Extension budget to cover this additional expenditure.
e. Car Park Resurfacing and Refurbishment – The car park
refurbishments are now complete, but anticipated expenditure is
£9,618 over the approved budget. A virement is requested from the
Fakenham Factory Extension budget, to cover this expenditure.
f.
Housing Associations – Three of the currently approved Housing
Association schemes have been subject to delay, with key trigger
points for payment being delayed until the new financial year. As a
result of this, additional slippage of £615,900 is requested to the
2013/14 financial year. This slippage has been reflected within the
Updated Budget 13/14 column of the capital programme appendix.
g. SMP Preparation of Common Version for Approval and Other
Additional Studies – The major works relating to this coastal
management capital scheme have been completed, and a minor
overspend of £1,556 has occurred compared to the budget. This
overspend will all be dealt with in the final grant claim, which is due for
submission before the end of the current financial year.
h. Playground Improvements - As part of the revised budget process a
request for slippage was approved for £3,000 to be taken into the
2013/14 financial year in relation to this scheme. The scheme has
since been completed ahead of schedule, with all invoice payments
being processed in 2012/13. As such it is requested that the £3,000
be brought back into the current financial year, in order to cover the
early completion of the scheme.
i.
Personal Computer Replacement Fund – Following the requirement to
replace all benefits computers, this scheme is likely to be £6,480 over
spent by the end of the financial year. It is requested that the budget
be increased by the equivalent sum, with the funding identified as
being through a revenue contribution to capital outlay.
7.
Conclusion
7.1
The revenue budget is showing an estimated full year underspend for the
current financial year of £18,935. The overall financial position continues to
be closely monitored over the remaining weeks of the financial year to ensure
that the overall budget is achieved.
8.
Financial Implications and Risks
8.1
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.
8.2
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.
9.
Sustainability - None as a direct consequence from this report.
10.
Equality and Diversity - None as a direct consequence from this report.
11.
Section 17 Crime and Disorder considerations - None as a direct
consequence from this report.