Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
29th May 2015
A meeting of the Cabinet of North Norfolk District Council will be held in the Council Chamber at
the Council Offices, Holt Road, Cromer on Monday 8th June 2015 at 10.00am
Members of the public who wish to ask a question or speak on an agenda item are requested to
arrive at least 15 minutes before the start of the meeting. It will not always be possible to
accommodate requests after that time. This is to allow time for the Committee Chair to
rearrange the order of items on the agenda for the convenience of members of the public.
Further information on the procedure for public speaking can be obtained from Democratic
Services, Tel: 01263 516010, Email: democraticservices@north-norfolk.gov.uk
Anyone attending this meeting may take photographs, film or audio-record the proceedings and
report on the meeting. Anyone wishing to do so should inform the Chairman. If you are a
member of the public and you wish to speak on an item on the agenda, please be aware that
you may be filmed or photographed.
Sheila Oxtoby
Chief Executive
To: Mrs S Arnold, Mr N Dixon, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr W Northam, Mrs J Oliver,
Miss B Palmer, Mr J Rest,
All other Members of the Council for information.
Members of the Management Team, appropriate Officers, Press and Public.
If you have any special requirements in order
to attend this meeting, please let us know in advance
If you would like any document in large print, audio, Braille, alternative format
or in a different language please contact us
Chief Executive: Sheila Oxtoby
Corporate Directors: Nick Baker & Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
TO RECEIVE APOLOGIES FOR ABSENCE
2.
MINUTES
(page 1)
To approve, as a correct record, the minutes of the meeting of the Cabinet held on 20
April 2015.
3.
PUBLIC QUESTIONS
To receive questions from the public, if any.
4.
ITEMS OF URGENT BUSINESS
To determine any other items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B(4)(b) of the Local
Government Act 1972.
5.
DECLARATIONS OF INTEREST
Members are asked at this stage to declare any interests that they may have in any of
the following items on the agenda. The Code of Conduct for Members requires that
declarations include the nature of the interest and whether it is a disclosable pecuniary
interest.
6.
MEMBERS QUESTIONS
To receive oral questions from Members, if any.
7.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR RECONSIDERATION
To consider matters referred to the Cabinet (whether by the Overview and Scrutiny
Committee or by the Council) for reconsideration by the Cabinet in accordance with the
provisions within the Overview and Scrutiny Procedure Rules or the Budget and Policy
Framework Procedure Rules.
8.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
To consider any reports from the Overview and Scrutiny Committee, which may be
presented by the Chairman of the Overview and Scrutiny Committee, and determination
of any appropriate course of action on the issues so raised for report back to that
committee
9.
2014/15 OUTTURN REPORT (PERIOD 12 BUDGET MONITORING REPORT)
(page 6)
(Appendix A – p.22) (Appendix B – p.23) (Appendix C – p.44) (Appendix D – p.46)
(Appendix E – p.54) (Appendix F – p.59 )
Summary:
This report presents the provisional outturn position for
the revenue account and capital programme for the
2014/15 financial year. Details are included within the
report of the more significant year-end variances
compared to the current budget for 2014/15. The report
also makes recommendations for contributions to
earmarked reserves and the general reserve as
applicable for future spending commitments. An update to
the current capital programme is also included within the
report and accompanying appendices.
Options considered:
The report provides a final budget monitoring position for
the 2014/15 financial year. Whilst there are options
available for earmarking the underspend in the year, the
report makes recommendations that provide funding for
ongoing commitments and future projects.
Conclusions:
The outturn position on the revenue account as at 31
March 2015 shows an underspend. The final position
allows for a number of underspends to be rolled forward
within earmarked reserves to fund ongoing and identified
commitments. The position as reported will be used to
inform the production of the statutory accounts which will
then be subject to audit by the Council’s external auditors
PWC.
Recommendations:
Members are asked to consider the report and
recommend the following to Council:
a) The provisional outturn position for the general
fund revenue account for 2014/15;
Council
Decision
b) The transfers to and from reserves as detailed
within the report (and appendix C) along with the
corresponding updates to the 2015/16 budget;
c)
Transfer the surplus of £431,525
restructuring/Invest to save reserve;
to
the
d) The financing of the 2014/15 capital programme as
detailed within the report and at Appendix D;
e) The balance on the general reserve of £2,289,024
at 31 March 2015 and forecast balance of £2,082,065
at 31 March 2016;
f) The updated capital programme for 2015/16 to
2016/17 and the associated financing of the schemes
as outlined within the report and detailed at Appendix
E.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2014/15 that will be used to produce
the statutory accounts for 2014/15. To provide funding for
ongoing projects and commitments as detailed within the
report.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Budget Monitoring Reports, NNDR returns
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone
and e-mail:
10.
DEBT RECOVERY 2014-2015
Summary:




Recommendations:
Council
Decision
Cabinet member(s):
Wards:
Contact Officer,
telephone number,
and e-mail:
11.
Councillor W Northam
All
Karen Sly
01263 516243
karen.sly@north-norfolk.gov.uk
(page 63)
(Appendix A – p.70) (Appendix B – p.80)
This is an annual report detailing the council’s collection
performance and debt management arrangements for
2014/15
The report includes:
- A summary of debts written off in each debt area showing
the reasons for write-off and values.
- Collection performance for Council Tax and Non- Domestic
Rates.
- Level of arrears outstanding
- Level of provision for bad and doubtful debts
To approve the annual report giving details of the Council’s
write-offs in accordance with the Council’s Debt Write-Off
Policy and performance in relation to revenues collection.
Wyndham Northam
All
Sean Knight
01263 516347
Sean.Knight@north-norfolk.gov.uk
TREASURY MANAGEMENT ANNUAL REPORT 2014/15
(page 83)
Summary:
This report sets out the Treasury Management activities
actually undertaken during 2014/15 compared with the
Treasury Management Strategy for the year.
Options Considered:
This report must be prepared to ensure the Council complies
with the CIPFA Treasury Management and Prudential
Codes.
Conclusions:
Treasury activities for the year have been carried out in
accordance with the CIPFA Code and the Council’s
Treasury Strategy.
Recommendations:
That the Council be asked to RESOLVE that The
Treasury Management Annual Report and Prudential
Indicators for 2014/15 are approved.
Council
Decision
Reasons for
Recommendation:
Approval by Council demonstrates compliance with the
Codes.
Cabinet member(s):
All
Contact Officer,
telephone number,
and e-mail:
12.
Wyndham Northam
All
Tony Brown
01263 516126
tony.brown@north-norfolk.gov.uk
ANNUAL REPORT 2014/15
(page 92)
(please note the Annual Report is available separately on the Council’s website)
Summary:
This report outlines the key elements of the Annual Report
2014/15 to be published by July 2015 for discussion and
eventual approval and presents the key contents of the report.
The Annual Report will present the delivery of the Annual Action
Plan 2014/15 and show achievement against targets.
Options considered:
Publish a text only version of the Annual Report.
Publish a version of the report suitable for a public audience.
Conclusions:
The Annual Report 2014/15 concludes that North Norfolk District
Council delivered the Annual Action Plan and delivered
overwhelmingly improving performance against performance
indicators.
Recommendations:
1) That Cabinet note the contents of this report.
Cabinet
Decision
2) That Cabinet give authority to the Leader of the Council
and the Chief Executive to approve the final public version
of the report.
3) That Cabinet give authority to the Leader of the Council
and the Chief Executive to approve the communications
plan for the Annual Report 2014/15.
13.
Reasons for
Recommendations:
To comply with the provisions of the Council Performance
Management Framework and local government best practice.
Cabinet member(s):
Wards
Contact Officer,
telephone number,
and e-mail:
Tom FitzPatrick
All
Helen Thomas
01263 516214
helen.thomas@north-norfolk.gov.uk
TAXI FEES
Summary:
(page 96)
This report outlines the change in fees to the Hackney Carriage
and Private Hire Vehicle application fee due to renewal in the taxi
test station contract.
This change was agreed by Sheila Oxtoby, Chief Executive under
delegated authority during the election period due to the contract
end date falling in a period where Cabinet was not due to meet.
In line with the advice from the Monitoring Officer this report
seeks to confirm this decision at the earliest opportunity.
Options considered:
To leave the fees unchanged; this would cost the council
as the taxi test fee will increase by a small amount
following the new tender process.

To include the charge of each of the three garages into
the application fee; this would be complex both for the
trade to know accurate prices and for officers to
administer and would increase the cost of the process.

To remove the vehicle test fee from the application fee;
this would require the garages charging customer directly
which causes them no concerns and has a zero cost to
the authority and simplifies the administrative process.
Conclusions:
To remove the vehicle taxi test fee from the hackney carriage
and private hire vehicle application fee and for the garages to
charge the customer directly.
Recommendations:
This is a resolution for Cabinet to confirm as the
decision was made under delegated authority by Sheila
Oxtoby during the election period.
Cabinet
Decision
14.

To remove the vehicle taxi test fee from the hackney
carriage and private hire vehicle application fee and for
the garages to charge the customer directly.
Reasons for
Recommendations:
To agree the change to the published fee for the hackney
carriage or private hire vehicle application in accordance with
the Councils required process.
Cabinet member(s):
Wards
Contact Officer,
telephone number,
and e-mail:
Judy Oliver
All
Gemma Faircloth
01263 516139
gemma.faircloth@north-norfolk.gov.uk
PROPOSED CROMER COMMUNITY SPORTS PITCH FACILITY – SUMMARY OF
CONSULTATION RESPONSES
(page 99)
(The full summary of consultation responses is available on the NNDC website)
Summary:
Conclusions:
This report summarises the comments received from the
recent public consultation on the potential of four short-listed
sites adjoining the boundary of Cromer to accommodate a new
community sports pitch facility to include facilities for future use
by Cromer Town Football Club and Cromer Youth Football
Club, and recommends that the Council seeks to open
discussions with the owner of the former Golf Practice Ground,
off Overstrand Road, with the objective of acquiring the site for
the new community sports pitch facility.
The recent public consultation process has indicated support
for the proposed new Cromer community sports pitch facility
being accommodated on the former Golf Practice Ground site,
off Overstrand Road in the town. On the basis of the
consultation responses it is recommended that the Council
seeks to open discussions with the owner of the former Golf
Practice Ground, off Overstrand Road, with the objective of
acquiring the site for the new community sports pitch facility.
Recommendations:
Cabinet
Decision
Cabinet member(s):
Ward members:
Contact Officer,
telephone number
and e-mail:
15.
1. That Cabinet notes the comments received through
the public consultation process on the four
shortlisted sites identified for consideration in
accommodating the proposed Cromer community
sports pitch facility; and
2. The Cabinet authorises officers to open discussions
with the owner of the former golf practice ground
site, off Overstrand Road regarding its possible
acquisition
to
accommodate
the
proposed
community sports pitch facility
Tom FitzPatrick
Cromer Town, Suffield Park, Roughton,
Poppyland, The Runtons
Steve Blatch, Corporate Director
Steve.blatch@north-norfolk.gov.uk
Tel:- 01263 516232
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution:
“That under Section 100A(4) of the Local Government Act 1972 the press and public be
excluded from the meeting for the following item of business on the grounds that they
involve the likely disclosure of exempt information as defined in paragraphs _ of Part I of
Schedule 12A (as amended) to the Act.”
16.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 20 April 2015 at the Council
Offices, Holt Road, Cromer at 10.00am.
Members Present:
Also attending:
Officers in
Attendance:
130.
Mr B Cabbell Manners
Mrs A Fitch-Tillett
Mr T FitzPatrick
Mrs S Arnold
Mrs A Claussen-Reynolds
Mr P W High
Mr W Northam
Mr G Williams
Mr R Reynolds
Mr R Shepherd
Mr N Smith
The Chief Executive, the Corporate Director (SB), the Head of
Finance, the Chief Accountant, the Head of Planning, the Coastal
Management Team Leader, the Communications Editor and the
Democratic Services Team Leader
APOLOGIES FOR ABSENCE
Mr J Lee and Mr R Oliver
131.
MINUTES
The minutes of the meeting held on 9th March 2015 were approved as a correct
record and signed by the Chairman
132.
PUBLIC QUESTIONS
The Leader informed Members that Mrs V Purkiss wished to speak in relation to item
4, ‘Urgent Business – Hare and Hounds Public House, Baconsthorpe’. He said that
he would take her question at the start of that item.
133.
ITEMS OF URGENT BUSINESS
The Leader invited Mrs V Purkiss to speak. Mrs Purkiss explained that she was the
owner of the Hare and Hounds Public House. She said that that the change of use
had been in place for one month and they had already removed the bar and cellar
fittings. She went onto say that the pub had been shut for 5 years and the application
for a change of use had been submitted 3 years ago. She said that there had been
no consultation with the Parish Council and no-one had approached her. The
drainage issues meant that the property could not be sold as a house or a pub and
the problem could not be addressed as the drainage was sited on third party land
Cabinet
1
09 March 2015
and there was no permission to have drainage on that land. She concluded by
reminding members that the pub fittings had recently been removed.
The Portfolio Holder for Planning, Mr B Cabbell Manners, said that he had sympathy
for everyone involved and he would like to defer making a decision so that more
information could be obtained. He said that he would like to discuss the issue further
with the Chairman of the Development Committee before reaching a decision on how
to proceed.
Mrs A Fitch-Tillett agreed with the suggested approach. She said there were lots of
issues to consider and careful consideration was needed.
Mrs S Arnold, Chairman of the Development Committee agreed that it was a
contentious issue and that deferral was the best option.
The Leader invited Mrs Purkiss to respond. She reiterated that they could not sell the
property as a pub now as the fittings had been removed. She said that her family
were currently living in the property.
The Leader thanked her for her comments and said that some of the information she
had shared today had not been included within the report and that was why it was
important to defer the decision so that further information could be obtained. He said
that any appeal against the Planning Inspector’s decision had to be submitted by 28th
April and Members would ensure that they would work to that deadline.
RESOLVED:
1. To defer the decision pending further information
2. To delegate the final decision to the Head of Planning in consultation with the
Portfolio Holder and the Chairman of the Development Committee
134.
DECLARATIONS OF INTEREST
None
135.
MEMBER QUESTIONS
The Leader confirmed that Members could ask questions as each item arose.
136.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
137.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
138.
RECOMMENDATIONS FROM THE PLANNING POLICY AND BUILT HERITAGE
WORKING PARTY
Mr B Cabbell Manners, Portfolio Holder for Planning introduced this item. He said
that it was very important that the Council had a 5 year land supply in place so that
Cabinet
2
09 March 2015
development could be pushed into the right areas. To achieve these aims, it was vital
that the Council worked closely with neighbouring authorities.
RESOLVED
1) That North Norfolk District Council agrees to the preparation of a non Statutory
Strategic Framework focused on those areas identified in Table 1, produced
using a structure outlined in Table 2
2) That North Norfolk District Council agrees to contribute up to a maximum of
£15,000 in 2015/16 and £10,000 in 16/17 to cover the anticipated costs.
3) That North Norfolk District Council agrees with the attached terms of reference.
4) That the content of the framework document be extended to include agreeing the
approach to be taken to the planning of settlements which cross, or are closely
related to District Council administrative boundaries
139.
BIG SOCIETY FUND GRANTS PANEL
RESOLVED
To receive the minutes of the meeting of the Big Society Fund Grants Panel held on
15 December 2014
140.
JOINT STAFF CONSULTATIVE COMMITTEE
RESOLVED
To receive the minutes of the meeting of the Joint Staff Consultative Committee held
on 8 December 2014
141.
PROCUREMENT STRATEGY 2015/16 – 2017/18
Mr W Northam, Portfolio Holder for Finance introduced this item. He explained that
the report presented for approval the Procurement Strategy for the period 2015/16 to
2017/18. He said that it would provide the framework which would govern the
Council’s corporate aims and objectives in relation to procurement. It also provided
the structure for the effective management and monitoring of procurement activity.
He concluded by saying that it had been updated to reflect the requirements of the
Public Contracts Regulations 2015 and the Transparency Code 2014.
Mr Northam then thanked the Chief Accountant for all his support and hard work.
RESOLVED
To approve the Procurement Strategy 2015/16 to 2017/18.
Reason for the decision:
To have in place an updated and revised Procurement Strategy.
142.
TWO ONE YEAR EXTENSIONS OF THE MEASURED TERM CONTRACT
Mrs A Fitch-Tillett, Portfolio Holder for the coast, introduced this item. She explained
that the Measured Term Contract was designed to enable small scale foreshore
coastal maintenance works to be implemented in a fast, efficient and cost effective
manner. The current contract was due to end on 31st May 2015 but allowed for the
participants to extend the scheme by two single year extensions, limited to a value of
Cabinet
3
09 March 2015
up to £100,000 in any one year. Mrs Fitch-Tillett said that not extending the contract
could potentially put the Council at risk.
RESOLVED:
a) To extend the Measured Term Contract by one year to end on the 31st May
2016.
b) To delegate to the Head of Service authority to extend the Measured Term
Contract by a further year from 1st June 2016 to the 31st May 2017.
c) To limit the spend value in any one year to a maximum of £100,000.
Reasons for the decision:
The MTC was a cost effective and efficient way to procure small scale remedial
coastal works. The two one year extensions would enable this work to continue to be
procured and implemented in a cost effective manner.
143.
CORPORATE ENFORCEMENT POLICY
Mr B Cabbell Manners introduced this item. He said that the Corporate Enforcement
Policy set out the overarching principles that applied to all of the Council’s
enforcement activities. A single policy would ensure that the Council acted in a
consistent manner across all its enforcement activities and would assist with crossdepartmental working.
Mr G Williams, Portfolio Holder for Customer Services, said that enforcement was
only used as a last resort and so it was important to ensure it was carried out as
effectively as possible.
RESOLVED:
To approve the Corporate Enforcement Policy
Reasons for the decision:
To provide a single point of reference for customers, in setting out expectations in
relation to transparency, accountability, proportionality, consistency and targeting of
enforcement activities across the Council and to ensure the Council acts in a more
consistent manner across all its enforcement activities, and assists with cross
departmental working.
Before closing the meeting the Leader thanked Cabinet members and all councillors
for all their support, particularly since he had become Leader which had been under
difficult circumstances. Since then there had been some big challenges such as the
tidal surge and the fire at Fakenham.
He thanked all the officers for their support, in particular Democratic Services, the
Corporate PA team, the Chief Executive and the Corporate Leadership Team.
The Meeting closed at 10.24
am
Cabinet
4
09 March 2015
_______________
Chairman
Cabinet
5
09 March 2015
Agenda Item No____9________
2014/15 OUTTURN REPORT (PERIOD 12 BUDGET MONITORING REPORT)
Summary:
This report presents the provisional outturn position for
the revenue account and capital programme for the
2014/15 financial year. Details are included within the
report of the more significant year-end variances
compared to the current budget for 2014/15. The report
also makes recommendations for contributions to
earmarked reserves and the general reserve as
applicable for future spending commitments. An update
to the current capital programme is also included within
the report and accompanying appendices.
Options considered:
The report provides a final budget monitoring position
for the 2014/15 financial year. Whilst there are options
available for earmarking the underspend in the year, the
report makes recommendations that provide funding for
ongoing commitments and future projects.
Conclusions:
The outturn position on the revenue account as at 31
March 2015 shows an underspend. The final position
allows for a number of underspends to be rolled forward
within earmarked reserves to fund ongoing and
identified commitments. The position as reported will be
used to inform the production of the statutory accounts
which will then be subject to audit by the Council’s
external auditors PWC.
Recommendations:
Members are asked to consider the report and
recommend the following to Full Council:
a) The provisional outturn position for the general
fund revenue account for 2014/15;
b) The transfers to and from reserves as detailed
within the report (and appendix C) along with the
corresponding updates to the 2015/16 budget;
c)
Transfer the surplus of £431,525 to the
restructuring/Invest to save reserve;
d) The financing of the 2014/15 capital programme
as detailed within the report and at Appendix D;
e) The balance on the general reserve of £2,289,024
at 31 March 2015 and forecast balance of £2,082,065
at 31 March 2016;
f) The updated capital programme for 2015/16 to
2016/17 and the associated financing of the
schemes as outlined within the report and detailed
at Appendix E.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2014/15 that will be used to produce
6
the statutory accounts for 2014/15. To provide funding
for ongoing projects and commitments as detailed within
the report.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Budget Monitoring Reports, NNDR returns
Cabinet Member(s):
Ward(s) affected All
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
1.
Introduction
1.1
This report presents the provisional outturn position for the 2014/15 financial
year which will be used to inform the production of the Council’s statutory
accounts which will be subject to audit review ahead of presentation to the
Audit Committee in September.
1.2
Commentary on the more significant year-end variances is included within the
report with further supporting information provided within the appendices.
1.3
The report also includes a current forecast position statement on the level of
reserves along with the outturn and financing position for the 2014/15 capital
programme. The capital programme for the period 2015/16 to 2016/17 has
been updated to take account of the outturn position and is included within
this report and appendices.
1.4
All budgets have been monitored during the year by Service and Finance
Officers with regular reports being presented to Cabinet and Overview and
Scrutiny. The last budget monitoring position was reported to Members in
March 2015 and identified a projected underspend on the revenue account of
£376,624, this report now presents the final budget monitoring position for the
year. The contents of this report will be considered by the Overview and
Scrutiny Committee on 17 June 2015.
1.5
At the time of preparing this report there are a number of final figures for
2014/15 which have not yet been confirmed and therefore estimates have
been made within the provisional outturn position. This is not unusual due to
the timing of producing the outturn report, and the lead in time for publication
of committee papers. Further details on this are included at section 2.3
2.
Revenue Account – Outturn 2014/15
2.1
The revenue account position for the year shows a surplus of £431,525 as
detailed at Appendix A. This is after allowing for transfers to earmarked
reserves for current and known commitments. The transfers to and from
reserves in the year are made in line with the Council’s policy framework for
earmarked reserves as approved as part of the annual budget setting
process. Earmarked reserves are typically used to set aside funds for known
or specific liabilities. Transfers to earmarked reserves have been made
where an underspend has occurred within a service, mainly due to the timing
of work not being completed as planned, and by 31 March 2015, and also
7
where no future budget exists or where there is a one-off commitment that
continues into the 2015/16 financial year.
2.2
Some of the more significant outturn variances shown within the service
budgets are due to the timing of the repair works following the storm in
December 2013 and also where repair works have been capitalised as per
the proper accounting treatment. Where applicable these have either been
funded by the insurance claims that have been made, or funded from the
general reserve, as per the budget.
Estimates Included in the Accounts
2.3
The provisional outturn position includes some estimates where final figures
are either not confirmed at the time of producing the report or are subject to
external audit later in the year. The significant estimates are in relation to
Benefit Subsidy and Business Rates Retention.
2.4
Benefit Subsidy - The benefit subsidy return was completed and submitted
by 30 April 2015 and this will be subject to external audit review later in the
year. Depending on the outcome from the external audit review there could
be an impact on the overall financial position, for example should subsidy be
due to the Department for Work and Pensions. It is for this reason that the
Council holds a benefits earmarked reserve to mitigate such impact.
2.5
Business Rates - Under the system of business rates retention an element
of the business rates is retained locally (split between the County and
Districts). The budget for the year assumed the baseline funding allocation in
respect of business rates announced as part of the Local Government
Finance Settlement announcement in December 2013. The outturn position is
based on the National Non Domestic Rates (NNDR) Return which is
submitted annually.
In the same way that Council Tax operates a ‘collection fund’ which
distributes the precepts/shares of council tax collected to the respective
authorities, the business rates collection fund distributes the respective
shares of business rates based on the NNDR return. Should the actual
income collected from business rates exceed or not meet the anticipated
amounts there would be a surplus or deficit on the fund. For 2014/15 there is
a deficit on the collection fund that will be taken account of in the following
year due to accounting rules.
The reason for the deficit is due to a greater number of reliefs being granted
and the impact of successful appeals above the level assumed. The impact of
some of the reliefs have been mitigated by Section 31 Grants. The overall
position (including the S 31 Grant) will be used to calculate the levy1 payable
to the business rates pool for the year and this will be based on the NNDR3
return which is due to be submitted in May and will be subject to external
audit review over the summer.
The initial estimates show a net impact of the retained business rates on the
general fund for the year compared to the current budget of £125,000 (to be
verified). In the same way that the benefits reserve has been established to
mitigate the impact of the benefits subsidy return, it is recommended that the
additional business rates retained is transferred to the reserve in 2014/15 to
be used to mitigate the impact in 2015/16 of the deficit.
The levy refers to the payment that has to be made to the business rates pool in respect of growth in
business rates over and above the baseline (i.e. the amount allocated in the rates retention system).
1
8
Table 1 below provides a summary of the main variances across the standard
expenditure headings. Details of the variances at the service level are
provided at section 3.
Table 1 - 2014/15 Subjective Analysis
Employee Costs
2014/15 Updated
Budget £
9,569,599
Premises
Variance
2014/15
Amount £
%
Actuals £
9,152,054
(417,545)
(4.36)
3,470,360
2,744,374
(725,986)
(20.92)
320,168
281,656
(38,512)
(12.03)
Supplies & Services
10,743,716
10,037,432
(706,284)
(6.57)
Transfer Payments
27,886,386
28,040,190
153,804
0.55
8,664,551
8,295,431
(369,120)
(4.26)
(8,723,517)
(8,351,242)
372,275
4.27
7,714,575
2,371,950
(5,342,625)
(69.25)
(38,722,115)
(40,056,736)
(1,334,621)
(3.45)
20,923,723
12,515,109
(8,408,614)
(40.19)
Transport Related Expenditure
Support Services - Charges In
Support Services - Charges Out
Capital Financing Costs
Income
Total cost of services
2.6
The reasons for the significant movement included in the summary above are
as follows, further details are included at section 3:
2.6.1
Employee Costs – The budget assumes 2% turnover for employee costs
per annum. A higher level of turnover saving has been achieved in the
year and this is largely due to a number of vacant posts within services.
Some of the underspends have been offset by overtime or the use of
external support including agency staffing. In addition there has been an
underspend on training in the year of which some has been carried
forward to 2015/16.
2.6.2
Premises – The budget allowed for repair costs following the December
2013 storm to be funded from the general reserve, some have been
capitalised and therefore the funding will be reallocated accordingly.
Coast protection repairs have not all been completed in the year and will
be rolled forward to 2015/16.
2.6.3
Supplies and Services – The significant movements against the budgets
for supplies and services include IT related costs, external professional
fees not incurred as planned and telephone rentals and call costs.
2.6.4
Capital Financing Costs – The variance reflects the timing of housing
capital programme schemes that are treated as ‘revenue expenditure
funded from capital under statute’ (REFCUS). REFCUS represents
revenue expenditure that is funded from capital but does not result in a
tangible fixed asset for the council, for example housing grants and loans.
This variance will be reversed out as it does not have an impact on the
bottom line/amount funded from grants and the council tax payer.
2.6.5
Income – The most significant income variances for the year are due to
additional VAT shelter income, car parking fee income, legal services
income, planning income and benefits subsidy income, the latter is
matched by benefits payments included under the transfer payments
heading.
9
3.
Revenue Account – Detailed Commentary 2014/15
3.1
This section of the report highlights the more significant direct cost and
income variances compared to the current budget. Further commentary on
some of the smaller variances are also included within Appendix B to the
report. Accounting standards require a number of notional charges to be
made to service accounts. Notional charges include transactions in relation to
capital charges, revenue expenditure funded from capital under statute
(REFCUS) and pension costs, and whilst they do not have an impact on the
‘bottom line’ i.e. the surplus or deficit for the year, they are included for
reporting purposes. Appendix A shows the overall revenue position including
notional charges, however to assist the reporting and explaining ‘real cash’
variances, table 2 provides a summary of the position excluding notional
charges.
Table 2 - 2014/15 Revenue Account (Excluding Notional Charges)
Service Area:
Updated
Budget £
Outturn £
Assets & Leisure
Community and Economic Development
Corporate
Customer Services
Environmental Health
Finance
Organisational Development
Planning
Net Cost of Services
1,791,374
1,814,860
819,467
2,195,937
2,981,966
2,146,013
1,209,720
530,598
13,489,935
1,309,247
(482,127)
247,251 (1,567,609)
672,481
(146,986)
1,983,490
(212,447)
2,800,599
(181,367)
1,788,407
(357,606)
1,113,715
(96,005)
461,404
(69,194)
10,376,594 (3,113,341)
Variance £
Parish Precepts
Net Interest Receivable/Payable
Capital Financing
Net Contributions to/(from) Earmarked Reserves
Net Contributions to/(from) General Reserves
1,635,884
(332,490)
363,229
(305,603)
(101,081)
1,635,884
(418,400)
1,162,920
1,320,053
365,878
0
(85,910)
799,691
1,625,656
466,959
Net Expenditure to be met from Government
Grant & Taxpayer
14,749,874
14,442,929
(306,945)
(14,749,874) (14,874,454)
(124,580)
Government Grants and Council Tax
Net (Surplus)/Deficit for year
0
(431,525)
(431,525)
Storm Damage
3.2
During the year significant progress has been made on repairing the damage
to the Council’s properties that occurred during the tidal surge in December
2013. The original budget for 2014/15 allowed for costs totalling just over
£800,000 in relation to the storm damage to be funded from the general
reserve, this was subsequently reduced following the confirmation of the
external funding for some of the coastal works.
3.3
The service variances detailed within the report refer to the budget variances
including those underspends in respect of the storm damage. Some of the
repair works are still outstanding and will be completed during 2015/16 and
therefore the use of the general reserve has been re-profiled accordingly.
Some of the insurable property repairs have been recovered through
10
insurance claims and the provisional outturn position allows for these as
applicable. Where appropriate some of the repair costs have been capitalised
and funded from the general reserve.
3.4
During the year the Council has been administering the following flooding
support schemes that were announced by the government in February 2014
following the floods.:

Repair and Renew Grants (Homeowners and Businesses)

Business Support Grants

Council Tax Discounts

Business Rate reliefs
3.5
These schemes are being funded either through grant or retrospective claims
for Government funding. The repair and renew grants and business support
grants have been awarded subject to applications being received and
approved in line with their (the Government’s) set eligibility criteria.
3.6
Business Support Grants - The total funding available for the business
support grants is £67,500, of this £51,518 has been paid during 2014/15, the
balance of £15,982 has been carried forward for any outstanding applications
in 2015/16.
3.7
Repair and Renew Grants – These grants were payable to homeowners and
businesses that had been flooded between 1 April 2013 and 31 March 2014
to be used for property flood resilience measures to mitigate the impact of
future flooding events. The original timescales for the scheme was until 31
March 2015, this was subsequently extended to 30 June for all works to have
been completed and funding reclaimed from the Department for Environment,
Food and Rural Affairs (Defra). For the year there were a total of 103
approved and completed claims for homeowner and business repair and
renew amounting to £368,294. These funds have been claimed in full from
Defra. There are in the region of 55 claims outstanding totaling £215,000
which are due to be claimed and re-imbursed by the scheme deadline of 30
June 2015.
Service Variances – The following provides commentary of the more significant
variances for the eight service groupings.
3.8
Assets and Leisure
a)
Car Parks £94,584 Underspend – The most significant variance within the car
parks service is additional income from car parking fees of £84,277. There
has been a reduction in income from penalty charge notices of £20,929
although this has been mitigated by a reduction in the management fee costs
including those for enforcement of £24,107.
b)
Administration Buildings £45,204 Overspend – Of the overspend £33,464
relates to repair and maintenance costs in respect of the Cromer offices
including glazing works. Whilst there has been an underspend in relation to
electricity, there is an overspend for the budget heading overall, although this
has been mitigated by the favourable outturn position in respect of Property
services.
c)
Foreshore £46,928 Underspend – The main reason for the underspend
against the foreshore budget is due to the storm repair costs not being
incurred as originally budgeted, as a result of this there will be a lower use of
the general reserve in the year than budgeted. Some of the repair costs in
11
incurred on insured assets and equipment have been recovered by insurance
claims.
d)
Sports Centres £22,987 Overspend – Of the overspend £31,664 relates to
hall hire costs mainly as a result of previous year utility costs and also delays
in implementing the new agreements with the schools, the overall position
has been mitigated by the facilities hire income being greater than
anticipated.
e)
Other Sports £41,848 Underspend – This budget heading includes sports
hubs and clubs for which the Council received some grant funding in the year.
Not all of the grant monies have yet been incurred and have therefore been
carried forward to 2015/16.
f)
Investment Properties £396,888 Underspend – The reason for the
underspend is in relation to the storm repair costs not being incurred under
revenue as anticipated. Some of the costs have been treated as capital and
the funding will be re-allocated accordingly. Where the costs were assumed
to be funded from the general reserve, this amount will remain in the general
reserve to be drawn down when the costs are incurred in 2015/16.
3.9
Community and Economic Development
a)
Coast Protection £470,426 Underspend – Of the underspend £135,756 is due
to storm damage repairs not being completed during the year, although this
will be required in 2015/16 and has therefore been rolled forward. £295,038 of
the remaining underspend is due to various sea defence projects not yet
completed and again these have been requested to be carried forward to
2015/16 pending completion of the works.
b)
Pathfinder £51,928 Underspend – The underspend is in relation to the
Integrated Coastal Management Fund which has not been used. This will be
rolled forward within the earmarked reserve for use in 2015/16 for the
development of adaptation and coastal management team.
c)
Regeneration Management £46,252 Underspend – The variance is mainly
due to staff turnover and a vacant post which has recently been appointed to.
d)
Housing Strategy £514,239 Underspend – The underspend is due to VAT
shelter receipts received in the year, these have been transferred to the
Capital Projects earmarked reserve to be used to fund schemes within the
capital programme.
e)
Community and Localism £448,114 Underspend – This service heading
includes the income that the County Council return to the districts from their
discretionary element of the second homes council tax charge. The variance
shown at the year-end is mainly in relation to the Big Society Fund projects
not yet allocated or drawn down and also other external grants received that
have not yet been fully matched by expenditure in the year. These have been
carried forward to the next financial year.
3.10
Corporate
a)
Legal Services £135,524 Underspend – As reported in the last budget
monitoring report to Members, new legal fee income has been received as a
result of increased external work. The reason for the significant variance in
the year is that whilst there have been new posts appointed to within the
service to deliver the work, these were not filled until later in the year. Of the
underspend £30,000 has been carried forward to fund future service
12
developments and to provide capacity should additional resources be
required for delivery of the services on an interim basis.
3.11
Customer Services
a)
IT Support Services £99,402 Underspend - The outturn position is made up of
a number of service variances including an underspend on employee costs of
£21,351; £20,638 underspend in relation to hardware and software purchase
and computer maintenance, and £43,297 underspend on Computer software
licences as part of the business transformation project which will be required
in 2015/16.
b)
Media and Communications £37,309 Underspend – The underspend for the
year is largely due to a vacant post within the team; whilst some of this has
been reduced by the use of external support, there is still a year-end
underspend.
c)
Customer Services Corporate £35,207 Underspend – The favourable
variance is due to vacant posts and reduced hours within the service.
3.12
Environmental Health
a)
Public Protection £25,361 Underspend – Of the favourable variance £21,701
relates to income received above the budgeted level for licensing.
b)
Environmental Protection £30,389 Underspend – The year end position
reflects a number of variances within the service, the more significant of
which include the reversing of a bad debt provision of £16,108 for
enforcement works which is no longer required as the debt was paid, along
with a number underspends against employee related expenditure due to
turnover within the year.
c)
Waste Collection and Disposal £29,346 underspend – The overall
underspend for the service is made up of a number of variances within the
service budget headings, including:

Reduction in commercial disposal costs of (£24,422);

Additional fee income of (£18,310) from garden bins and bulky
collections;

Staff savings of (£20,727) due to vacant posts and turnover;

Savings of (£82,978) associated with the Kier contract, primarily the
purchase of a new trade waste vehicle which was not required in the
year;

The new recycling contract commenced in October 2014 and this
resulted in contract savings of (£31,968); however, there was a loss of
£257,192 on the profit share but this was offset by additional income
of (£83,542) by way of a transfer charge being paid by Kier and
additional recycling credit income being paid by County of (£31,162);.
d)
Cleansing £44,601 Underspend – Of the underspend £30,347 relates to costs
which have been capitalised and will therefore be funded from a revenue
contribution to capital in the year.
e)
Community Safety £31,208 Underspend – The budget allowed for a £20,000
contribution to be made in respect of an external Anti-Social Behaviour
Officer. This was not used in the year and the delivery of this has recently
changed and will be used to fund an internal officer in future. The remainder
13
of the underspend reflects income returned from external partners for project
work.
3.13
Finance
a)
Local Taxation £48,879 Underspend – The budget for 2014/15 included
provision for software costs in respect of the Council Tax Support scheme
which was to be funded from grant (£35,000), this has not yet been incurred
and will therefore be required in future years. In addition new burdens funding
totalling £15,507 was received at the end of year and will be used in 2015/16.
b)
Benefits £181,228 underspend – The majority of the underspend is in relation
to staff turnover savings above the budgeted level, including a number of
vacant posts within the service.
c)
Benefits and Revenues Management £40,307 Underspend - The variance
within this budget heading is due to a vacant post within the service.
3.14
Organisational Development
a)
Human Resources and Payroll £34,493 Underspend – Within the overall
underspend, £42,746 is in relation to the expenditure on the corporate training
programme being less than anticipated. Of the underspend, £35,000 has
been requested to be carried forward to 2015/16 for both officer and member
training and development plans, along with the members’ induction
programme.
b)
Registration Services £28,183 Underspend – The main reason for the
underspend for the service is due to an unspent grant in relation to Individual
Electoral Registration (IER). This will be required in 2015/16 and has
therefore been carried forward.
c)
Member Services £23,069 Underspend – Of the underspend £12,463 was in
relation to hardware purchases not made in the year, although this will be
required in the new year to cover future IT requirements following the May
2015 election.
3.15
Planning
a)
Development Management £20,920 Underspend - As reported during the
year within the budget monitoring reports, the annual income budget has
been exceeded due to a number of large planning applications. Some of the
additional income has been earmarked for funding future service restructures
and the Local Plan review. The outturn position is due to additional income
above the level budgeted which has been partly reduced by staff turnover
within the service not being achieved and external advice in respect of
planning appeals.
b)
Planning Policy £22,215 Underspend – The underspend is due to staff
turnover within the service following a restructure.
c)
Building Control and Access £67,384 Underspend – Of the variance £55,721
is in relation to exceeding the budgeted level of income, with the balance of
the underspend being due to transport related savings within the service. The
outturn position has allowed for the earmarking of underspend for the selffinancing requirements of the service.
d)
Property Information £67,532 Overspend – The main reason for the service
overspend is in relation to a land charge claim for which a provision had been
made. This has been mitigated by the income budget being exceeded in the
year.
14
Non Service Expenditure and Income
3.16
The non-service expenditure and income predominantly relates to investment
income. The updated income budget for 2014/15 anticipated £335,080 would
be earned in interest from an average balance of £24.4m at a rate of
1.37%. A total of £415,807 was earned from investments over the year from
an average balance of £25.7m at an average rate of interest of 1.62%. This
resulted in a favourable variance against the updated budget of £80,727.
3.17
Investment balances were on average £1.3m higher than anticipated, and
overall the rate of interest earned was 0.25% higher than budget. However,
the income return on the Local Authorities’ Mutual Investment Trust (LAMIT)
pooled property fund was significantly higher than budget earning 5.97% over
the year, producing an excellent return for the Council which was £43,000
above budget. Other investments, including the covered bonds, contributed
an additional £32,000 and the higher investment balances a further £5,000.
3.18
The Treasury Management Annual Report is included as a separate item on
this Agenda and provides more details on the performance of the Treasury
Management activity for the year.
4.
Reserves
4.1
The Council holds a general reserve for which the recommended balance is
currently £1.75 million. The purpose of holding a general reserve is to provide
a working balance to help cushion the impact of uneven cash flows to avoid
temporary borrowing and to provide a contingency to help cushion the impact
of unexpected events or emergencies.
4.2
In addition to the general reserve the Council holds a number of earmarked
reserves that are held to meet known or predicted liabilities. The earmarked
reserves also provides a means at the year-end for carrying funds forward to
the new financial year to fund ongoing commitments and known liabilities for
which no separate revenue budget exists.
4.3
There are a number of earmarked reserves that have balances, yet the timing
of the use of the reserve is yet to be agreed. One of these reserves is the
New Homes Bonus which includes an amount from the annual allocation of
the grant. Over the next two to three years the Council will need to undertake
a Local Plan review with the new Local Plan being available for examination
and adoption by mid to late 2017. The process will require one-off funding to
be made available for the preparation and examination costs. It is
recommended that the costs associated with the review are funded from the
New Homes Bonus earmarked reserve.
4.4
Section 3 of the report highlighted a number of service areas where an
underspend had occurred in the year and a transfer to reserves had been
made to ensure funds are available to meet future spending commitments.
Unlike capital budgets, underspends on revenue budgets in the year are not
automatically rolled forward at the year-end where there is an annual budget
provision. Where the underspend represents a grant received which has not
yet been fully utilised or there has been a delay in the planned use, the
unspent grant has been rolled forward.
4.5
The transfers to and from reserves (general and earmarked) are included
within the reserves statement as detailed at Appendix C. The appendix also
shows the planned use of reserves over the medium term to take account of
where funding has been rolled forward from 2014/15 for use in 2015/16.
15
4.6
The general reserve balance at 31 March 2015 is £2,289,024 although after
taking into account the budgeted contributions to and from the reserve in
2015/16, the forecast balance at 31 March 2016 is £2,082,065.
5.
Summary – Revenue Account 2014/15
5.1
The outturn position for the year ending 31 March 2015 is a £431,525 surplus.
This is after allowing for a number of underspends identified at the service
level which have been rolled forward within reserves to fund one-off
commitments in 2015/16 where there is no annual budget. The report is
recommending that the surplus for the year is transferred to the restructuring
and invest to save reserve to fund costs in future years that will deliver
ongoing savings and improved income and also the implementation costs of
the business transformation programme.
6.
Capital Programme 2014/15
6.1
This section of the report presents the financing of the capital programme for
2014/15, along with an updated programme for the financial years 2015/16 to
2017/18. Appendix D provides the detail of the outturn on the 2014/15 capital
programme for all service areas, together with the financing for all schemes.
The updated capital programmes for the period 2015/16 to 2017/18 are
attached at Appendix E. The Prudential Indicators for the capital outturn
position are also attached at Appendix F.
6.2
The outturn position for the 2014/15 capital programme, at Appendix D
highlights where schemes have slipped between financial years. The
reasons for slippage include where schemes have not progressed as
originally planned and the funding is requested for carry forward to the new
financial year, or where schemes have progressed ahead of schedule
requiring funding to be brought back from 2015/16. The following paragraphs
provide further explanations and where necessary commentary on individual
schemes within the capital programme. The details include the outturn
expenditure compared to the 2014/15 budget and explanations of variances
where applicable.
6.3
In total the expenditure on the capital programme for the year was
£5,168,161, compared to an updated budget of £9,289,913, which resulted in
a variance of (£4,121,652). Approximately half of the variance is in relation to
the Cromer Coast Protection scheme.
6.4
There has been a requirement to claw back a total of £181,497 from the
2015/16 budget where schemes have progressed faster or earlier than
originally anticipated. In addition to this there has been significant slippage of
(£4,802,080) (See table 3), together with other movements in year totaling a
net of £498,931.
6.5
The following commentary outlines those schemes which have progressed
ahead of planned and those completed in the year.
6.5.1
Budget Claw Backs – There were six schemes in total that have either
started earlier than anticipated, or where the level of spend in year was
higher than originally anticipated. Where this is the case, and there is
budget available within the 2015/16 capital programme, this has been
clawed back in order to cover the expenditure incurred in year. The
updated programme for 2015/16 onwards (Appendix E) reflects these
adjustments to the capital programme. The schemes and amounts are
listed at Table 3.
16
Table 3 - Capital Schemes where Claw Back is required from
2015/16 Budget
Capital Scheme
Claw Back Amount
£
Council Car Park Improvements
6,892
Disabled Facilities Grants
34,677
Cromer Pier Structural Works
1,479
Refurbishment of Seaside Shelters
27,684
Planning Probass 4
10,765
Server Replacement
100,000
Total
181,497
6.5.2
Schemes Completed in 2014/15 – There were eleven schemes which were
completed during the year. Table 4 provides a summary of the schemes
along with the final project variance together with a commentary on the
financing implications where necessary.
Table 4 - Capital Schemes Completed within the 2014/15 Financial Year
Capital Scheme
Variance £
Financing Commentary
(Under) / Over
Mundesley Café - Storm
Surge Works
Mundesley Public
Convenience – Storm
Surge Works
Chalets Rebuild – Storm
Surge Works
Cromer Pier Decking –
Storm Surge Works
Sheringham West Prom
Café – Storm Surge
Works
Pier Roof Repairs
(20,008) This scheme was fully funded from insurance
claims relating to the storm surge, other than
the £250 excess which is to be funded from the
General Fund Reserve allocation for Storm
Surge expenditure.
12,605 This scheme was partially funded from
insurance claims, but as the value of the works
was in excess of the total recoverable from
insurance, the balance is to be funded as a
revenue contribution to capital outlay (RCCO)
from the General Fund Reserve allocation for
Storm Surge expenditure. The total RCCO for
this scheme was £17,061.
(2,255) This scheme was partially funded from
insurance claims, with the significant excess of
£53,000 being financed as an RCCO from the
General Fund Reserve allocation for Storm
Surge expenditure.
(19,168) This scheme was partially funded from
insurance claims, with the excess of £5,000
being financed as an RCCO from the General
Fund Reserve allocation for Storm Surge
expenditure.
6,508 This scheme was partially funded from
insurance claims, but as the value of the works
was in excess of the total recoverable from
insurance, the balance is to be funded as an
RCCO from the General Fund Reserve
allocation for Storm Surge expenditure. The
total RCCO for this scheme was £6,593.
14,975 The over spend is to be funded from NNDC
Capital resources, and an £8,500 recharge to
the contractor.
17
Pier Public Conveniences
Replacement of Planning
Printer and Scanner
IT Network Switches
Replacement of Dell
Equalogic Systems
Web Integration Software
6.6
459 The over spend is to be funded from NNDC
Capital resources.
1
1,000 The over spend is to be funded from NNDC
Capital resources
In addition to these there are further explanations of other variances on a
scheme by scheme basis below:-
6.6.1
North Norfolk Enterprise and Start Up Grants – In April 2014 Cabinet
approved this scheme, which was to be financed from the return of the
remaining monies from the Pathfinder Business Loan and Grant Scheme.
In March 2015, following receipt of part of the balance to be returned, the
authority commenced the payment of these grants. By the end of the
financial year 2014/15 a total of £35,454 had been paid out under this
scheme.
6.6.2
Cromer Pier Restaurant and Shop – Storm Surge Works – This scheme
was the result of storm surge works which had to be undertaken on the
buildings in place on Cromer Pier. Although the scheme is almost
complete, there are still a few minor works to be undertaken. In the
2014/15 financial year a total of £228,780 was spent on this scheme,
which was some £28,780 in excess of the originally identified budget of
£200,000. As all expenditure in relation to these works is recoverable
under an insurance claim, there is no further liability to the authority for
this additional expenditure, or indeed any other payments that may come
through in the 2015/16 financial year.
6.6.3
Repairs and Renewals Grants – Flood Protection Works – During the
2014/15 financial year, the authority facilitated a scheme relating to flood
repair and renewal grants, arising as a result of the storm surge in
December 2013. In total £368,294 was paid out during 2014/15, this
being fully funded from receipt of a grant from DEFRA.
6.6.4
Litter Bins – During the year a significant number of litter bins were
purchased using funds from revenue resources. This scheme exceeded
the authority’s de minimus level of £10,000, and is therefore required to
be shown as capital expenditure. The expenditure of £23,289 is to be
funded by an equivalent revenue contribution to capital.
6.6.5
Server and Storage Purchase – Server and storage equipment were
purchased in year which exceeded the de minimus level. As such the
expenditure of £18,345 has been included within capital to be funded from
a revenue contribution to capital outlay.
6.7
In addition to the above there have been a number of schemes where
slippage of budgets has been identified from the 2014/15 budget into the new
financial year.
This has arisen mainly due to delays in scheme
implementation, and more accurate re-profiling of these expenditure budgets
will be undertaken as part of the Capital Budget Monitoring process in the
new financial year.
18
6.8
Of the schemes where slippage is required, there are six where the budgets
to be slipped are in excess of £100,000. These schemes are summarised in
Table 5
Table 5 - Slippage on Capital Schemes in Excess of £100,000
Capital Scheme
Amount
£
500,543
Housing Associations
Cromer Coast Protection Scheme 982 and SEA
2,052,828
Pathfinder Project
283,798
Storm Surge
188,895
Sheringham West Promenade
524,043
Procurement of Upgrade for Civica System
119,098
Total
3,669,205
7.
Capital Programme - 2015/16 Update
7.1
Appendix E shows the updated capital programme for the period 2015/16 to
2017/18. The programme has been updated to reflect the slippage identified
within this report, together with the capital outturn position. The capital
programme now includes nine schemes which received formal approval as
part of the 2015/16 budget report, together with amendments to two existing
schemes where further bids were included as part of the 2015/16 budget
process. Four of the schemes require further explanation which is given
below.
7.2
Car Park Improvements 2015/16 – In 2014/15 there was an existing scheme
for car park improvements which was completed, but which came in £6,892
over the original budget allocation. This £6,892 has been clawed back from
the new year scheme resulting in the approved budget of £60,000 being
reduced to £53,108 for 2015/16.
7.3
Disabled Facilities Grant – For the 2015/16 financial year the authority have
received Disabled Facilities Grant of £594,970, which was in excess of the
original budget of £500,000. As such, the overall annual budget has been
increased by £94,970 to reflect the fact that any grant monies must be
expended in the year in which the grant is received. In addition to this, in the
2014/15 financial year the re-profiling of budgets to future years resulted in
the budget being overspent in total by £34,677. This £34,677 overspend is
therefore required to be clawed back from future years budgets, and from the
use of NNDC capital resources rather than from any Disabled Facilities Grant
allocations. As a result of this the £34,677 has been taken from the capital
receipts funding for the scheme.
7.4
Cromer West Promenade – For clarification purposes the total scheme value
for the Cromer West Promenade – Infrastructure Regeneration is £815,000,
which included prior year expenditure and future budget allocations. Of this
total budget £200,000 had been identified as being funded from FLAG, where
the scheme has received an ‘offer in principle’, and a further £200,000 was
shown as being as the result of an insurance claim in relation to the chalets
and public conveniences following the storm surge. The progression of this
19
scheme is dependent upon confirmation that these monies will be available to
fund the works.
7.5
Server Replacement – Whilst this scheme was included within the capital bids
for 2015/16, it was necessary to actually purchase the computer equipment
just prior to the end of the year. As a result the full value of the budget of
£100,000 was used in 2014/15 to fund the expenditure incurred in March
2015.
8.
2015/16 Budget Implications and Financial Forecast 2016/17 Onwards
8.1
The budget for 2015/16 was approved in February 2015. At the same time
financial projections for the following three years to 2018/19 were also
reported. The budget for 2015/16 includes new savings and additional income
totalling £222,000 for 2015/16 which are expected to increase to £250,000
from 2016/17. Some of these savings have started to accrue in 2014/15
which has contributed to the underspend now being reported in the year.
8.2
The forward financial projections from 2016/17 onwards make assumptions
around the future funding from government support and known commitments
and changes to service expenditure. Table 6 below provides a summary of
the current reported funding gaps for the next three years.
Table 6 – Current Reported Funding Forecast
2016/17
2017/18
2018/19
£000
£000
£000
Current Funding Gap2
265
1,043
1,245
8.3
The forward projections of expenditure and income will be updated to take
account of the outturn position and also other spending/income pressures that
have been identified outside of the budget process. These will be reported to
Members in the coming months as part of the Financial Strategy update to
enable early preparation for the 2016/17 budget process.
8.4
In addition, as part of the work on the financial strategy a review of all reserve
balances will be carried out.
9.
Financial Implications and Risks
9.1
There are a number of financial risks that continue to face Local Authorities in
terms of funding, for example the Local retention of Business Rates and
responding to spending pressures and changes in service demand. The more
significant risks in relation to the outturn position for 2014/15 and the ongoing
financial position are summarised below.
9.2
Under and Overspends - This outturn report has identified a number of
underspends at the service level; some have occurred due to factors outside
of the Council’s control which has meant that expenditure has not been
incurred as planned, for example coast protection and repairs which have
been delayed due to the emergency works required following and recovery of
the storm damage works. Where applicable service underspends have been
carried forward within earmarked reserves to fund one-off costs or where
projects have been delayed until the 2015/16 financial year. Some of the
2
As reported in the 2015/16 Budget Report, February 2015.
20
underspends from 2014/15 have already been factored into the 2015/16 base
budget.
9.3
Housing Benefit Subsidy – as mentioned earlier in the report the outturn
position includes the unaudited benefits subsidy position. Expenditure in the
region of £28 million has been incurred in the year to be recovered from
subsidy payable by the Department for Work and Pensions (DWP). The final
position will not be confirmed until the claim has been audited by the Councils
external auditors and signed off by the DWP later in the year. Much of the risk
around changes to the claim and subsidy recoverable is reduced by the
Benefits Earmarked Reserve which is maintained to help mitigate the impact
of any claw back from the DWP following the final audited subsidy claim.
9.4
Business Rates Retention Scheme – As mentioned previously Local
Authority funding from business rates is open to risks around funding
fluctuations due to increases and decreases in the rateable values (RV) of
non-domestic properties and successful appeals against RV. The NNDR 3
return has been submitted and will be subject to external audit review as part
of the final accounts audit work. Any changes to the figures included in the
outturn position could have an impact on the general fund balance.
Furthermore there is a risk of business rates appeals and whilst the NNDR
returns do include assumptions around provisions for appeals and
backdating, these elements could be subject to fluctuations. It is therefore for
these reasons that the report is recommending the establishment of a
Business Rates Reserve to mitigate the impact if any.
10.
Sustainability – None as a direct consequence of this report.
11.
Equality and Diversity – None as a direct consequence of this report.
12.
Section 17 Crime and Disorder considerations – None as a direct
consequence of this report.
21
Appendix A
General Fund Summary 2014/15 Outturn
Service Area
Assets & Leisure
Corporate Leadership Team/Corporate
Customer Services & ICT
Community & Economic Development
Environmental Health
Finance
Organisational Development
Planning
2014/15 Base
2014/15
Budget
Updated Budget
£
£
2,376,094
2,621,373
0
26,436
721,046
786,297
7,932,005
8,191,823
4,144,772
4,140,572
3,083,806
2,999,500
955,462
949,522
1,346,891
1,208,200
Outturn
2014/15
£
2,152,634
0
575,556
1,234,704
3,903,270
2,725,992
836,720
1,086,233
Variance
£
(468,739)
(26,436)
(210,741)
(6,957,119)
(237,302)
(273,508)
(112,802)
(121,967)
Net Cost of Services
20,560,076
20,923,723
12,515,109
(8,408,614)
Parish Precepts
Capital Charges
Reffcus
Interest Receivable
1,635,884
(2,135,334)
(5,564,241)
(363,710)
1,635,884
(2,135,334)
(5,564,241)
(332,490)
1,635,884
(2,135,364)
(236,586)
(418,400)
0
(30)
5,327,655
(85,910)
420,950
265,787
706,853
265,787
367,840
233,435
(339,013)
(32,352)
14,819,412
15,500,182
11,961,918
(3,538,264)
39,658
0
(50,000)
(332,585)
0
0
0
0
0
0
30,000
(60,000)
0
0
0
0
(5,005)
197,651
0
(19,020)
(72,839)
(115,000)
0
(39,398)
(343,624)
(14,279)
(50,000)
(620,119)
1,000,000
0
357,000
(243,167)
(49,569)
25,000
14,940
(4,365)
(45,000)
(114,004)
(15,000)
0
(5,005)
(186,660)
(81,547)
(85,634)
39,623
(218,350)
(9,467)
(101,081)
795,080
12,472
0
(183,339)
1,000,000
74,547
482,030
(5,872)
(49,569)
66,698
14,940
(110)
(25,280)
90,014
1,920
49,256
24,995
(170,691)
8,696
(33,397)
74,633
(107,934)
(3,956)
365,878
1,138,704
26,751
50,000
436,780
0
74,547
125,030
237,295
0
41,698
0
4,255
19,720
204,018
16,920
49,256
30,000
15,969
90,243
52,237
35,010
110,416
5,511
466,959
Amount to be met from Government Grant and
Local Taxpayers
14,392,874
14,749,874
14,442,929
(306,945)
Collection Fund – Parishes
Collection Fund – District
Retained Business Rates
(1,635,884)
(5,205,386)
(2,873,112)
(1,635,884)
(5,205,386)
(3,230,112)
(1,635,884)
(5,205,386)
(3,355,142)
0
0
(125,030)
Revenue Support Grant
Council Tax Freeze (2014/15)
New Homes bonus
Rural Services Delivery 2014/15 Top-up (Section
31 Grant)
(3,331,376)
(57,969)
(1,277,202)
(11,945)
(3,331,376)
(57,969)
(1,277,202)
(11,945)
(3,331,376)
(57,748)
(1,276,973)
(11,945)
0
221
229
0
Income from Government Grant and Taxpayers
(14,392,874)
(14,749,874)
(14,874,454)
(124,580)
220
0
(431,525)
(431,525)
Revenue Financing for Capital:
IAS 19 Pension Adjustment
Net Operating Expenditure
Contributions to/(from) Earmarked Reserves:
Capital Projects Reserve
Asset Management
Benefits
Big Society Fund
Broadband
Building Control
Business Rates Reserve
Coast Protection
Common Training
Economic Development & Regeneration
Elections
Enforcement Board
Environmental Health
Grants
Housing
Land Charges
Legal
New Homes Bonus Reserve
Organisational Development
Pathfinder
Planning Revenue
Restructuring/Invest to save
Sports Facilities
Use of General Reserve
(Surplus)/Deficit
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Assets & Leisure
Full Year
Budget
£
Actuals
Variance
£
£
689,358
680,710
Capital Charges
Gross Direct Income
29,495
(2,163,382)
29,496
(2,249,318)
Support Service Charges
134,793
(1,309,736)
142,928
(1,396,184)
(8,648) £19,999 - Additional expenditure on repairs and maintenance. (£24,107) - Reduced expenditure relating to
Management Fee Costs following changes to car parking orders
1 No major variances
(85,936) (£84,277) - Additional income from car park fees. £20,929 - Reduced penalty charge notice income resulting
from removal of evening charging. (£14,827) - Additional season ticket income.
8,135 £4,846 - Additional support service recharge allocations
(86,448)
87,531
(73,000)
55,600
70,131
73,862
(60,132)
54,418
68,148
14,154
29,903
(116,426)
53,490
(18,879)
16,047
29,904
(114,429)
55,262
(13,216)
(50)
3,150
3,100
0
3,401
3,401
56,945
(117,238)
43,000
(17,293)
61,730
(88,461)
35,800
9,069
Car Parking
Gross Direct Costs
Markets
Gross Direct Costs
Gross Direct Income
Support Service Charges
Industrial Estates
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Surveyors Allotments
Gross Direct Income
Support Service Charges
Handy Man
Gross Direct Costs
Gross Direct Income
Support Service Charges
Explanation for Variance.
(13,669) (£8,059) - Reduced costs for Markets trade waste collection
12,868 £12,868 - Reduced income from market fees following general nationwide trend.
(1,182) No major variances
(1,983)
1,893
1
1,997
1,772
5,663
No major variances
No major variances
No major variances
No major variances
50 No major variances
251 No major variances
301
4,785 No major variances
28,777 £28,777 - Reduction in Handyman recharges to other departments within the authority
(7,200) (£5,479) - Reduced support service recharges in relation to Computer Services.
26,362
23
Appendix B
Full Year
Budget
£
Parklands
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Administration Buildings Svs
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Property Services
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Actuals
Variance
£
£
Explanation for Variance.
26,460
585
(56,717)
28,590
(1,082)
23,765
588
(51,327)
33,239
6,265
(2,695)
3
5,390
4,649
7,347
486,073
528,009
41,936 £3,426 - Additional overtime costs. £33,464 - Higher than anticipated repairs and maintenance on Cromer
office buildings. (£10,583) - Reduced expenditure on Electricity for Cromer office. £6,138 - Additional electricity
expenditure at Fakenham Connect. £9,365 - Additional materials stores purchases for Windmill Canteen in part
offset by additional income. (£5,513) - Saving on NNDR costs at North Walsham Office
82,976
82,980
(151,944)
(321,600)
(148,676)
(353,927)
95,505
108,386
462,739
458,764
15,000
0
(456,035)
15,000
(16,407)
(457,357)
21,704
0
(£4,804) - Reduced repairs and maintenance expenditure
No major variances
£6,730 - Reduction in recovery of electricity recharges compared to budget
£3,987 - Additional support service recharges from Sundry Debtors
4 No major variances
3,268 No major variances
(32,327) (£36,318) - Increased support service recharges to other services resultant from increased repairs and
maintenance expenditure. £8,855 - Additional Support Service Charges for Windmill Canteen in relation to
Creditors Section. £3,746 - Additional Support Service Charges for Canteen for Business Transformation
12,881
(3,975) (£8,164) - Saving in employee costs due to a vacancy for part of the year. £11,884 - Rechargeable works
following filming on the Pier offset by direct income received.(£12,768) - Saving on Other Professional Fees
requested for carry forward to 2015/16
0
(16,407) (£16,407) - Rechargeable income to offset direct costs for filming on Cromer Pier
(1,322) £9,261 - Additional recharges for IT Services, (£10,573) - Reduced recharge for Admin Buildings, (£5,336) Reduced recharge for Sundry Debtors, £7,546 - Recharge for Business Transformation and (£26,205) - Reduced
recharge from Legal Services. £28,338 - Reduction in support service recharges from the service to reflect
lower costs of the section.
(21,704)
24
Appendix B
Full Year
Budget
£
Parks & Open Spaces
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Foreshore
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Community Centres
Gross Direct Costs
Capital Charges
Support Service Charges
Sports Centres
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Actuals
Variance
£
£
414,258
42,909
(60,787)
87,280
483,660
412,708
42,912
(58,285)
87,002
484,337
167,880
130,978
12,635
0
55,900
236,415
12,636
(10,026)
56,669
190,257
6,136
19
8,780
14,935
2,473
24
9,058
11,555
346,830
375,003
11,295
(140,122)
11,292
(145,308)
104,930
114,663
322,933
355,650
Explanation for Variance.
(1,550) No Major Variances
3
2,502 No Major Variances
(278) No Major Variances
677
(36,902) £8,402 - Professional fees in respect of storm damage lighting works. (£40,063) - Underspend on repairs and
maintenance to the Foreshore, in respect of storm damage which has only partially been used within this
service area.
1 No major variances
(10,026) (£9,686) - Insurance claim income due in respect of repair works relating to storm damage of Dec 2013
769 No major variances
(46,158)
(3,663) No major variances
5 No major variances
278 No major variances
(3,380)
28,173 £31,664 - Hall hire costs, this is mainly due to delays in implementing new agreements with the schools, along
with higher utility costs relating to prior years' hire.
(3)
(5,186) £5,963 - Sales of food and drink lower than expected. (£11,149) - Income from facilities hire is greater than
anticipated.
9,733 £7,547 - Recharges now include an amount relating to the cost of business transformation. This is charged on
a per head basis.
32,717
25
Appendix B
Full Year
Budget
£
Leisure Complexes
Gross Direct Costs
Capital Charges
Support Service Charges
Other Sports
Gross Direct Costs
Gross Direct Income
Support Service Charges
Recreation Grounds
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Pier Pavilion
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
Variance
£
£
Explanation for Variance.
302,064
315,280
24,560
641,904
292,274
315,288
24,454
632,016
(9,790) (£8,726) - Repairs and maintenance costs lower than anticipated
8
(106) No Major Variances
(9,888)
191,410
127,921
(63,489) (£5,821) - Salaries and oncosts lower than anticipated. (£23,676) - Spend not incurred on Community Led
Health Improvement projects. A request is being made to roll forward £28,705 of unspent grant monies to
fund health improvement projects in 2015/16. (£20,259) - Spend not incurred on Sports Hubs and Clubs
projects. This is offset by a reduction in grant income. (£10,885) - Spend not incurred on Leisure Facilities
Strategy in the year. (£9,375) - Expenditure on grants lower than expected. A roll forward request of £10,000
is also being made - this relates to the Tour of Britain. A saving in contract costs in 2014/15 was vired to Other
Sports to cover these costs and will be used to fund this event in September 2015.
(103,404)
53,980
141,986
(81,763)
53,205
99,363
21,641 £24,391 - Sports Hubs and Clubs grant income not claimed as expenditure not incurred.
(775) No Major Variances
(42,623)
8,582
285
(1,000)
3,150
11,017
8,735
288
(1,288)
3,033
10,768
90,377
98,939
0
13,040
103,417
(3,693)
12,994
108,240
153 No Major Variances
3
(288) No Major Variances
(117) No Major Variances
(249)
8,562 £8,562 - Repairs required following storm surge, partially offset by not undertaking other general maintenance,
and the insurance claim.
(3,693) (£3,693) - Insurance claim received re storm damage costs.
(46) No Major Variances
4,823
26
Appendix B
Full Year
Budget
£
Foreshore (Community)
Gross Direct Costs
Actuals
Variance
£
£
Explanation for Variance.
375,213
385,695
0
36,840
412,053
(1,584)
37,528
421,639
Woodlands Management
Gross Direct Costs
117,906
149,288
Capital Charges
Gross Direct Income
6,003
(25,550)
6,000
(45,834)
81,790
88,624
180,149
198,078
31,382 £4,938 - Employee costs, partially due to turnover not being achieved. £5,140 - Vehicle costs. £11,597 Expenditure relating to events and the Green Flag Award. £4,964 - Purchase of gravel for sensory garden.
£2,468 - Grounds maintenance costs. Some of the cost variances have been mitigated by additional income
and grant.
(3)
(20,284) (£5,577) - Income from car parking charges. (£2,550) - Rechargeable works. (£8,441) - Charges for school visits
and events. (£3,318) - Grants received from the Forestry Commission and the Woodland Trust.
6,834 £3,746 - Recharges now include an amount relating to the cost of business transformation. This is charged on
a per head basis.
17,929
32,817
5,232
(16,488)
11,050
32,611
21,046
5,232
(21,256)
12,676
17,698
(11,771) (£11,771) - Lower than anticipated spend on repairs and maintenance.
0
(4,768) (£3,904) - Insurance claim received re storm damage costs.
1,626 No Major Variances
(14,913)
465,989
490,290
24,301 (£12,150) - Employee savings as a result of vacant post. £11,999 - Additional repairs and maintenance
expenditure, partially offset by insurance claims. £20,941 - Water utilities expenditure in excess of the budget.
95,187
(820)
48,607
608,963
95,184
(9,708)
61,969
637,735
(3) No major variances
(8,888) (£7,588) - Insurance claims resultant from the storm surge works undertaken on public conveniences
13,362 £8,584 - Additional support service recharges in respect of Creditors section
28,772
Gross Direct Income
Support Service Charges
Support Service Charges
Cromer Pier
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Public Conveniences
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
10,482 £20,671 - Replacement of lifesaving equipment lost during the December 2013 storm surge. (£9,132) - Work
not undertaken on memorial seats in the year.
(1,584) No Major Variances
688 No Major Variances
9,586
27
Appendix B
Full Year
Budget
£
Investment Properties
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Leisure
Gross Direct Costs
Gross Direct Income
Support Service Charges
Cctv
Gross Direct Costs
Capital Charges
Gross Direct Income
Total Assets and Leisure
Actuals
Variance
£
£
555,481
131,608
83,224
(215,480)
83,232
(188,495)
84,780
101,998
508,005
128,343
143,882
(700)
(143,432)
(250)
143,966
0
(143,966)
0
78,457
11,668
(10,000)
80,125
59,490
11,664
(66)
71,088
2,621,373
2,152,636
Explanation for Variance.
(423,873) £11,473 - Additional NNDR costs associated with use of Grove Lane Depot for storage following storm surge.
(£229,744) - Underspend on repairs and maintenance for Other Lettings in respect of storm damage, which
has only be partially used within this service area in the year . £17,538 - Additional repairs and maintenance
expenditure for the Rocket House in part due to the storm surge in December 2013. (£226,838) - Underspend
on repairs and maintenance expenditure against Chalets in respect of storm damage which has only partially
been used within revenue in the year. (£6,245) - Reduced NNDR costs associated with loss of chalets following
storm surge.
8 No major variances
26,985 £9,224 - Loss of rental income following vacation of Grove Lane Depot premises. £12,596 - Reduced income
from Beach Hut fees. £9,250 - Prior year service charges not recoverable. (£14,433) - Insurance claim re Rocket
House repairs resulting from storm surge in December 2013. £31,912 - Reduced rental income, mainly as a
result of storm damage to properties along the promenade where insurance claims could not be made.
(£19,041) - Insurance claim income resultant from repairs and maintenance and loss of income from storm
damage.
17,218 £2,048 - Increase in recharges from Accountancy to Chalets, £3,459 - Increase in recharges from Sundry
Debtors to Chalets. £6,526 - increase in recharges for Sundry Debtors for Beach Huts.
(379,662)
84 No Major Variances
700 No Major Variances
(534) No Major Variances
250
(18,967) (£17,114) - Decommissioning costs lower than anticipated.
(4)
9,934 £10,000 - Obsolete equipment not sold.
(9,037)
(468,737)
28
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Community, Econ Dev & Coastal
Full Year Budget
£
Health
Gross Direct Costs
Gross Direct Income
Actuals
£
Variance
£
0
0
0
127
(63)
64
Arts & Entertainments
Gross Direct Costs
100,274
88,865
Capital Charges
Gross Direct Income
Support Service Charges
1,471
(24,460)
23,390
1,476
(30,975)
11,885
100,675
71,251
20,068
20
20,088
20,000
13
20,013
300,072
313,191
13,119
(137,958)
(121,200)
16,758
0
240,400
402,514
35,454
234,804
462,249
57,338
82,980
140,318
52,836
74,396
127,232
Flag Project
Gross Direct Costs
0
33,111
33,111
Gross Direct Income
0
(33,109)
(33,109)
Support Service Charges
0
0
189
191
Museums
Gross Direct Costs
Support Service Charges
General Economic Development
Gross Direct Costs
Gross Direct Income
Capital Charges
Support Service Charges
Tourism
Gross Direct Costs
Support Service Charges
Explanation for Variance.
127 No Major Variations
(63) No Major Variations
64
(11,409) (£9,258) - Lower than expected spend on contributions towards and marketing of arts events.
5
(6,515) (£6,368) - Admission fees to various concerts.
(11,505) No charges from Personnel, IT and Admin Buildings. These areas normally charge based on where staff costs
are coded and Arts staff time is now coded elsewhere.
(29,424)
(68) No Major Variances
(7) No Major Variances
(75)
(£18,090) Learning for everyone expenditure, including staff costs. This is offset by reduced contributions.
£33,000 movement in the provision for bad and doubtful debts not budgeted for at service level.
35,454 Refcus entry relating to Best Grant scheme.
(5,596) No Major Variances.
59,735
(4,502) No Major Variances
(8,584) No Major Variances
(13,086)
NNDC have taken over the project management and support, these costs are recovered from the Marine
Management Organisation and European Fisheries Fund.
189 No Major Variances
191
29
Appendix B
Full Year Budget
£
Actuals
£
Variance
£
Explanation for Variance.
Coast Protection
Gross Direct Costs
899,955
478,242
(421,713) (£135,756) Underspend for storm damage repairs - to be rolled forward and transferred to the Storm Capital
project to enable completion of the projects. (£234,983) Various Sea Defence projects - to be rolled forward to
either complete the committed projects or used as a contribution towards Capital costs. (£60,055) Consultancy
costs associated with Sea Defence projects not used in the year.
Capital Charges
Gross Direct Income
Support Service Charges
546,345
(25)
228,250
546,348
(48,738)
228,143
3
(48,713) Contributions towards the costs associated with the Ostend Targeted Rock project
(107) £25,828 Reduced recharge from Coastal Management reflecting lower direct costs; (£27,344) Property Services
1,674,525
1,203,995
57,397
5,469
(51,928) Integrated Coastal Management Fund (ICMF) - to be rolled forward for funding for the development of
adaptation and coastal management team support
57,397
5,469
(51,928)
307,771
261,831
0
(308,021)
(250)
(312)
(261,519)
0
60,683
(65,683)
(5,000)
62,885
(62,885)
0
161,996
141,746
1,959,091
0
65,237
2,186,324
68,632
(578)
59,695
269,495
Pathfinder
Gross Direct Costs
Regeneration Management
Gross Direct Costs
Gross Direct Income
Support Service Charges
Comm & Econ Dev Mgt
Gross Direct Costs
Support Service Charges
Housing (Health & Wellbeing)
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
(470,530)
(45,940) (£9,120) Employee costs recharged to NNFLAG project and reclaimed. (£28,000) Staff turnover due to delays in
recruitment to a post within the service.
(312) This reflects the reduction in costs recharged to final services.
46,502 Reduced direct costs to charge out to services supported.
250
2,202 No Major Variances.
2,798 No Major Variances.
5,000
(20,250) (£16,000) Energy Grants, this was originally a grant from the Department of Energy and Climate Change. It has
been requested that this be rolled forward for spend in 2015/16.
(1,890,459) This reflects actual spend in the Capital Programme.
(578)
(5,542) No Major Variances
(1,916,829)
30
Appendix B
Full Year Budget
£
Housing Strategy
Gross Direct Costs
Capital Charges
Gross Direct Income
Actuals
£
Variance
£
Explanation for Variance.
139,830
3,605,150
(174,793)
152,782
0
(701,984)
55,556
30,150
3,625,743
(519,052)
931,676
534,603
(397,073) (£360,857) - Uncommitted and unclaimed Big Society Fund grants, these are funded from the 2nd Homes
money passed to the District from the County and this will be rolled forward. (£16,412) - Expenditure not
incurred in relation to Community Right to Bid and Community Right to Challenge. During the past year we have
supported service transfer under Right to Challenge and that will take place during the next year, so a budget
will be required to support the revenue expenditure associated with that. (£24,762) - Expenditure not incurred
on consultation activities. £11,135 - Spend by the Youth Advisory Board, funded by grant income (see comment
below. (£5,000) - Expenditure not incurred on Warm & Well projects this will be rolled forward for boiler repair
projects. £25,698 remains unspent in respect of Leadership of Place at 31/03/15 and will be required for future
projects in 2015/16.
0
(1,066,066)
132,500
(1,117,137)
132,500 Revenue expenditure funded from capital in the year.
(51,071) (£51,071) - Youth Advisory Board Positive Activities Funding grant received, this is yet to be allocated in full and
the balance will be rolled forward.
81,490
43,831
(52,900)
(406,203)
190,682
175,976
Support Service Charges
(148,293)
42,389
(175,976)
0
Total Community, Econ Dev & Coastal
8,191,823
1,234,704
Support Service Charges
Community And Localism
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Coastal Management
Gross Direct Costs
12,952 £16,138 costs associated with Housing Loans scheme, these have been offset by arrangement fee.
(3,605,150)
(527,191) (£31,875) Arrangement fee in respect of Housing Loans, part of which is yet to be expended. (£495,361) Vat
Shelter Receipts from Victory Housing Association, this is offset by a greater contribution to the Capital Projects
Reserve.
(25,406) The variance relates to reduction in charges from Legal services.
(4,144,795)
(37,659) No recharges from Personnel, IT and Admin Buildings Insurances that are allocated by head count. Staff are
now coded to other services areas.
(353,303)
(14,706) Underspend in employee costs due to turnover and vacant posts. Part of this will be required in 2015/16 to
fund coastal management team support
(27,683) Higher recharges reflecting higher net service costs
(42,389)
(6,957,119)
31
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
CLT & Corporate
Full Year Budget
£
Corporate Leadership Team
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
£
Variance
£
490,233
0
(495,870)
483,410
(866)
(482,544)
(5,637)
0
Legal Services
Gross Direct Costs
389,284
401,920
Gross Direct Income
(60,050)
(208,210)
Support Service Charges
(297,161)
32,073
(193,710)
0
Total CLT and Corporate
26,436
0
Explanation for Variance.
(6,823) (£6,515) - Employee related expenditure is lower than expected.
(866) No Major Variances
13,326 (£14,373) - Recharge from legal services is lower as a result of that service receiving additional external
income. (£6,176) - Admin building costs reduced as a result of recalculation following a major office move.
These are offset by lower rechargeable income, reflecting lower direct costs.
5,637
12,636 £11,380 - Employee costs are higher than anticipated as a result of new contracts. This is offset by additional
income.
(148,160) Legal fee income is higher than anticipated mainly relating to contract work, other one-off external client work
and court costs awarded. Of the underspend, £30,000 is to be rolled forward to 2015/15 to enable the service
to manage peaks in demand effectively. This forms part of the services business plan and enables service
delivery to be maintained for clients and to earn income for the Council. The additional income has only been
partly offset by additional employee costs required to deliver the new contracts as the posts were recruited to
towards the end of the financial year.
103,451 Reduced recharges reflecting lower net direct costs.
(32,073)
(26,436)
32
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Customer Services & ICT
Full Year Budget
£
It - Support Services
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Tic'S
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Homelessness
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Customer Services Housing
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
£
Variance
£
Explanation for Variance.
949,610
857,931
(91,679) (£21,351) - Employee costs are lower than anticipated as a result of reduced staff hours. (£9,154) - Telephone
Rentals and Maintenance. (£20,638) - Computer maintenance. (£7,337) - Computer hardware purchases.
(£43,297) - Computer Software Licences agreed as part of the Business Transformation Project, which will be
required in future years. The balance consists of minor variances.
76,875
(410)
(968,094)
57,981
76,872
(8,133)
(926,670)
0
188,726
8,105
(32,711)
133,050
171,988
8,100
(37,077)
89,057
(16,738) (£8,465) - Employee costs underspend. (£6,610) - Purchases for resale not required in the year.
(5)
(4,366) (£6,462) - Sale of souvenirs etc. is greater than expected.
(43,993) (£22,813) - Reduced charge from Customer Services reflecting a more accurate allocation of time. (£12,716) Reduced charge from IT reflecting a more accurate allocation of time. (£7,553) - Reduced charge from
Reprographics reflecting a more accurate allocation of time. £7,494 - Recharges now include an amount
relating to the cost of business transformation. The balance consists of minor variances.
297,170
232,068
(65,102)
55,802
78,073
24,130
(47,000)
342,181
375,113
24,132
(71,200)
312,484
343,489
239,419
0
(239,419)
0
231,785
(110)
(231,675)
0
(3)
(7,723) (£5,000) - Sale of obsolete equipment.
41,424 Reduced recharges reflecting lower net direct costs.
(57,981)
22,271 £10,313 B&B Charges some of which £4,151 related to the Fakenham Fire. £8,804 Rent Deposit Scheme, this
is offset by recovered income.
2
(24,200) Income recovered for homelessness costs. This is Housing benefit and repaid rent deposits.
(29,697) Reduction in charges from Legal Services.
(31,624)
(7,634) (£5,373) Postage Costs.
(110)
7,744 This reflects the reduction in expenditure being recharged to the services supported.
0
33
Appendix B
Full Year Budget
£
Transport
Gross Direct Costs
Gross Direct Income
Support Service Charges
Publicity
Support Service Charges
Graphical Info System
Gross Direct Costs
Capital Charges
Support Service Charges
Media & Communications
Gross Direct Costs
Gross Direct Income
Support Service Charges
Customer Services - Corporate
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Total Customer Services and ICT
Actuals
£
Variance
£
31,500
(33,000)
41,790
40,290
0
0
0
0
610
610
0
0
28,059
22,380
3,780
(30,612)
1,227
3,780
(26,160)
0
348,684
314,208
(9,500)
(279,775)
(12,333)
(301,876)
59,409
(1)
500,008
467,492
28,530
(23,250)
(550,791)
28,536
(25,941)
(470,087)
(45,503)
0
786,297
575,556
Explanation for Variance.
(31,500)
Senior Citizens Railcards are no longer administered by NNDC
33,000
(41,790) Amended following the discontinuation of this service
(40,290)
(610) No Major Variances
(610)
(5,679) (£6,279) - Computer software and licences. A request is being made to roll forward £6,000 unspent budget.
This money was originally granted for the Inspire programme and was set aside for the GIS on the web project
which would contribute to meeting the requirements
0
4,452 Reduced recharges reflecting lower net direct costs.
(1,227)
(34,476) (£5,113) - Paper costs lower than expected. This is because work including sports leaflets and year-end
benefits leaflets has been outsourced. (£26,479) - Savings in employee costs as a result of staff turnover,
vacant posts partly reduced by the use of external support.
(2,833) (£2,561) - Recharges for reprographics work undertaken.
(22,101) (£9,662) - Reduced charge from Customer Services reflecting a more accurate allocation of time. (£25,980) Reduced charge from IT reflecting a more accurate allocation of time. £6,603 - Recharges now include an
amount relating to the cost of business transformation.
(59,410)
(32,516) (£34,276) - Employee savings resulting from vacant posts and reduced hours. (£6,453) - Training and travel
costs not incurred in the year. The balance consists of minor variances. A roll forward request of £11,000 is
being made and will be used to fund a temporary 12 month fixed term 20 hour per week Customer Services
Advisor post in 2015/16.
6
(2,691) No Major Variances
80,704 (£13,659) - Reduced charge from Customer Services reflecting a more accurate allocation of time. (£15,113) Reduced charge from IT reflecting a more accurate allocation of time. £19,781 - Recharges now include an
amount relating to the cost of business transformation. (£22,079) - Reduced charge from the Web Team
reflecting a more accurate allocation of time and lower direct costs. (£18,568) - Admin building costs reduced
as a result of recalculation following a major office move. These are offset by reduced recharges reflecting
lower net direct costs.
45,503
(210,741)
34
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Environmental Health
Full Year Budget
£
Commercial Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
Rural Sewerage Schemes
Gross Direct Costs
Support Service Charges
Travellers
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Public Protection
Gross Direct Costs
Gross Direct Income
Support Service Charges
Street Signage
Gross Direct Costs
Capital Charges
Support Service Charges
Pest Control
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
£
Variance
£
Explanation for Variance.
380,232
(24,434)
142,260
377,997
(21,118)
132,953
(2,235) No major variances
3,316 No major variances
(9,307) £11,427 Recharge from Business Transformation offset by reduced recharges from Env Health, Admin
Buildings (office moves), Central Costs and Legal Services, which reflect a more accurate reflection of staff
time spent on the service
(8,226)
498,058
489,832
360,844
320
361,164
360,844
367
361,211
0 No variances
47 No major variances
47
4,000
97,800
(4,000)
1,300
99,100
2,522
97,800
(3,818)
2,087
98,591
(1,478) No major variances
0
182 No major variances
787 No major variances
(509)
153,704
(170,183)
107,360
150,044
(191,884)
90,207
90,881
48,367
(42,514)
26,892
7,565
1,350
35,807
16,849
7,560
1,119
25,528
(10,043) Signs not purchased
(5)
(231) No major variances
(10,279)
14,335
(3,945)
5,200
15,590
22,229
(13,327)
5,222
14,124
(3,660) Staff turnover savings - vacant posts
(21,701) Additional licensing income
(17,153) £7,996 Higher recharges from Business Transformation and Legal Services, offset by reduced recharges of
(£3,230) Environmental Health, (£9,317) Customer Services, (£4,127) Admin Buildings (office moves), and
(£7,685) Sundry Debtors which reflect a more accurate reflection of staff time spent on the service
7,894 Costs associated with bird control work - this has been offset by additional income
(9,382) Recharges for bird control work
22 No major variances
(1,466)
35
Appendix B
Full Year Budget
£
Actuals
£
Environmental Protection
Gross Direct Costs
482,656
512,558
Capital Charges
Gross Direct Income
3,600
(89,689)
3,600
(149,980)
Support Service Charges
154,150
128,576
550,717
494,754
40,794
32,915
(1,000)
21,170
60,964
(750)
22,993
55,158
146,769
140,626
7,416
(650)
(150,231)
3,304
7,416
(66)
(147,976)
0
Dog Control
Gross Direct Costs
Gross Direct Income
Support Service Charges
Env Health - Service Mgmt
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Variance
£
Explanation for Variance.
29,902 (£7,277) Employee and travelling costs; (£3,574) Equipment purchases not made; £2,500 Costs associated
with assisted burials and contaminated land; £50,682 Enforcement Board works (offset by additional
income); £4,900 Compensation payment; (£16,108) Bad Debt provision made in 2013/14 - subsequently
repaid
0
(60,291) (£7,806) Local Authority Pollution Prevention Control (LAPPC) fee income; (£49,327) Enforcement Board
recharges; (£5,648) Rechargeable works
(25,574) £15,459 Higher recharges from Business Transformation and Customer Services, offset by reduced recharges
of (£3,116) Environmental Health, (£8,920) Admin Buildings (office moves), (£7,517) Computer Applications,
(£18,194) Legal Services and (£3,201) Central Costs which reflect a more accurate reflection of staff time spent
on the service
(55,963)
(7,879) Signage not purchased - request to roll forward to use in 2015/16 due to a change in legislation/Dog Control
Orders
250 No major variances
1,823 Recharge from Business Transformation
(5,806)
(6,143) Underspend within other professional fees - to be rolled forward and used for the one-off costs of the
removal of the manual filing system
0
584 No major variances
2,255 Reduced recharges reflecting lower direct costs
(3,304)
36
Appendix B
Full Year Budget
£
Waste Collection And Disposal
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Cleansing
Gross Direct Costs
Gross Direct Income
Support Service Charges
Environmental Strategy
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Community Safety
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
£
3,885,964
3,719,465
435,119
(3,054,081)
435,120
(2,916,928)
233,650
217,653
1,500,652
1,455,310
743,422
702,991
(42,004)
17,600
719,018
(46,174)
16,166
672,983
32,550
7,717
(10,000)
9,800
40,067
33,500
7,716
(13,308)
10,611
38,519
20,000
0
512
(11,720)
2,570
22,570
1,371
(9,837)
Variance
£
Explanation for Variance.
(166,499) (£24,422) Commercial disposal costs. (£20,727) Employee costs - vacant posts; (£82,978) Kier contract costs trade waste vehicle not required; (£31,968) Norfolk Environment Waste Service (NEWS) - savings associated
with the new contract - a request has been made to roll this forward to fund promotional campaigns in
2015/16 The balance relates to various minor underspends relating to recycling.
1
137,153 £257,192 Loss on profit share from NEWS due to the new contract being implemented- this is offset by
income of (£83,542) from Kier for a transfer recharge. £18,817 reduction in trade waste fee income due to
lower customer numbers and application of discounts offset by (£13,222) additional garden bin income and
(£5,088) bulky waste income. (£31,162) Additional recycling credit income. (£5,269) Additional income from
Tipping Away (transfer of waste outside of our area).
(15,997) £6,819 Recharge from Business Transformation; £9,582 higher recharge from the Web Team reflecting staff
time spent on the service. These are offset by lower recharges from Sundry Debtors, Creditors, Computer
Applications, Customer Services and Environmental health reflecting a more accurate allocation of time.
(45,342)
(40,431) (£8,679) Employee costs savings due to vacant posts; (£30,347) Litter bins to be purchased from Capital,
which is to be funded by a revenue contribution
(4,170) Additional income from dog and litter bin recharges
(1,434) No major variances
(46,035)
950 No major variances
(1)
(3,308) Additional income from sponsorship and exhibitors fees for the Green Build event
811 No major variances
(1,548)
(19,488) Contribution to Victory Housing for the Anti Social Behavioural (ASB) Officer not required
(11,720) Income returned from Victory Housing for Project Divert (to divert people away from ASB activities) - to be
transferred to the Env Health Reserve to be used when required
(1,199) No major variances
(32,407)
37
Appendix B
Full Year Budget
£
Civil Contingencies
Gross Direct Costs
Gross Direct Income
Support Service Charges
Total Environmental Health
Actuals
£
94,490
164,803
0
48,190
142,680
(57,288)
51,216
158,731
4,140,572
3,903,271
Variance
£
Explanation for Variance.
70,313 £21,378 Employee costs to administer the Repair and Renew Grants; £51,518 Grants paid - offset by grant
income from the Department of Environment, Food & Rural Affairs (Defra)
(57,288) Grant income (DEFRA) for flood support schemes
3,026 Recharge from Business Transformation
16,051
(237,301)
38
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Finance
Full Year Budget
£
Local Taxation
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Benefits
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Discretionary Payments
Gross Direct Costs
Support Service Charges
Non Distributed Costs
Gross Direct Costs
Support Service Charges
Benefits & Revenues Mgmt
Gross Direct Costs
Support Service Charges
Actuals
£
Variance
£
609,915
598,559
15,000
0
(500,348)
(537,871)
347,130
471,697
386,635
447,323
28,728,532
28,760,592
89,309
(28,331,997)
522,450
1,008,294
89,304
(28,545,285)
523,896
828,507
108,788
0
108,788
108,788
2,312
111,100
15,069
5,000
0
15,069
278
5,278
73,811
(73,811)
0
33,504
(33,504)
0
Explanation for Variance.
(11,356) £20,059 Movement in the provision for bad and doubtful debts. (£35,000) Estimated Software costs not
incurred, this has been requested to roll forward to fund predicted costs in future years.
(15,000) No Interest payments made on NNDR overpayments due to the low Bank Base Interest Rate.
(37,523) (£15,507) Department for Communities & Local Government (DCLG) New Burden grant received in March in
respect of Business Rates. (£33,718) Court costs awarded. £15,000 no transfer from the collection fund in
respect of interest on NNDR overpayments, this is offset by reduced costs.
39,505 Increased recharges from £17,976 Business Transformation & £20,583 Customer Services.
(24,374)
32,060 £153,680 Rent Allowance Payments to claimants, this is offset by increased Subsidy from the Department for
Works and Pensions (DWP). £42,835 Movement in the provision for Bad and Doubtful debts not budgeted for
at service level. (£173,771) Staff Turnover and vacancies within the service.
(5)
(213,288) Rent Allowance Subsidy from DWP. Recovery of Overpaid rent Allowances.
1,446 No Major Variances
(179,787)
0 No Major Variances.
2,312 No Major Variances.
2,312
(10,069) This budget reflects notional charges in relation to IAS 19 pension costs. The variance consists of £5,000 for
Past Service Costs which arise as a result of awarding added years or allowing employees to retire early on
unreduced benefits on the grounds of efficiency. The impact of these costs are reversed out of the account to
ensure there is no impact on the bottom line.
278 No Major Variances
(9,791)
(40,307) This saving relates to a vacant post.
40,307 Reduced expenditure to recharge to services supported.
0
39
Appendix B
Full Year Budget
£
Corporate Finance
Gross Direct Costs
Capital Charges
Support Service Charges
Actuals
£
Variance
£
475,268
10,159
(500,427)
(15,000)
469,172
10,164
(479,336)
0
107,213
(103,613)
3,600
87,343
(87,343)
0
45,244
(43,329)
45,911
(45,911)
1,915
0
Corporate & Democratic Core
Gross Direct Costs
533,637
496,600
Gross Direct Income
Support Service Charges
0
871,500
(2,588)
839,772
1,405,137
1,333,784
(71,353)
2,999,500
2,725,992
(273,508)
Internal Audit
Gross Direct Costs
Support Service Charges
Central Costs
Gross Direct Costs
Support Service Charges
Total Finance
Explanation for Variance.
(6,096) This is made up of a number of smaller variances including training.
5
21,091 The largest variance relates to Business Transformation (£10,439).
15,000
(19,870) (£19,870) - Internal audit costs lower than anticipated.
16,270 Reduced recharges reflecting lower net direct costs.
(3,600)
667 No Major Variances
(2,582) (£169,950) - Reduced charge from Customer Services reflecting a more accurate allocation of time. £80,850 Admin building costs increased as a result of recalculation following a major office move. (£18,476) - Lower
recharge from Internal Audit. These are offset by reduced recharges reflecting lower net direct costs.
(1,915)
(37,037) (£10,513) - Bank Charges lower than expected. (£8,211) - External Audit fees lower than anticipated.
(£14,758) - Business Transformation costs not incurred in the year due to timing of the project, but will be
required in 2015/16.
(2,588) No Major Variances
(31,728) £17,975 - Increased charge from Customer Services reflecting a more accurate allocation of time. £172,652 Admin building costs increased as a result of recalculation following a major office move. £92,732 - Recharges
from IT to reflect time spent on Business Transformation. (£11,769) - Reduced charges from Accountancy and
Creditors reflecting a more accurate allocation of time. (£25,530) - Reduced charges from Corporate
Leadership Team. These are offset by recharging the cost of Business Transformation to other service areas.
40
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Organisational Development
Full Year Budget
£
Human Resources & Payroll
Gross Direct Costs
364,582
Actuals
£
Variance
£
331,914
Explanation for Variance.
(32,668) (£42,746) - Corporate training programme expenditure lower than expected. The balance consists of minor variances. Two
transfers to earmarked reserves are being requested: £15,000 towards the cost of Investors In People assessment and action plan
and £20,000 for Members' induction programme.
Gross Direct Income
Support Service Charges
(1,825) No Major Variances
23,460 (£10,918) - Lower recharge from Legal Services as a result of that service receiving additional external income. This is offset by
(1,000)
(352,548)
(2,825)
(329,088)
11,034
1
170,156
(650)
(164,429)
5,077
170,252
(185)
(170,067)
0
96 No Major Variances
465 No Major Variances
(5,638) No Major Variances
(5,077)
57,214
(57,281)
(67)
49,168
(49,168)
0
(8,046) No Major Variances.
8,113 No Major Variances
67
299,845
(113,796)
158,890
344,939
307,208
(149,342)
132,921
290,787
433,759
410,514
Capital Charges
Gross Direct Income
Support Service Charges
3,200
(400)
151,980
588,539
3,204
(224)
132,439
545,933
Total Organisational Development
949,522
836,721
reduced recharges reflecting lower net direct costs.
Insurance & Risk Management
Gross Direct Costs
Gross Direct Income
Support Service Charges
Policy & Performance Mgt
Gross Direct Costs
Support Service Charges
Registration Services
Gross Direct Costs
Gross Direct Income
Support Service Charges
Members Services
Gross Direct Costs
(11,033)
7,363 No Major Variances.
(35,546) (£35,143) - Government grant towards maximising registration in respect of IER, this has been rolled forward.
(25,969) (£10,916) - Reduced recharge from Reprographics. The balance consists of minor variations.
(54,152)
(23,245) (£3,669) - Chairman's Civic Expenditure. (£12,463) - Computer hardware purchases. A request Is being made to roll
this forward to cover Members' IT requirements following elections in May 2015. The balance consists of minor
variances.
4
176 No Major Variances
(19,541) No Major Variances
(42,606)
(112,801)
41
Appendix B
General Fund Variances by Service - Period 12 - 2014/2015
Planning
Full Year Budget
£
Development Management
Gross Direct Costs
Capital Charges
Gross Direct Income
Support Service Charges
Planning Policy
Gross Direct Costs
Gross Direct Income
Support Service Charges
Conservation & Design
Gross Direct Costs
Gross Direct Income
Support Service Charges
Landscape
Gross Direct Costs
Support Service Charges
Building Control & Access
Gross Direct Costs
Gross Direct Income
Support Service Charges
Actuals
£
Variance
£
Explanation for Variance.
753,015
792,110
39,095 £25,244 Staff turnover not achieved, post funded by external contributions. £9,694 External advice
on planning appeals. This is offset by additional income from Planning fees and external
contributions.
(1)
(60,015) (£4,250) Court costs awarded on appeal. (£14,594) Income received for Section 106 work. (£19,087)
Additional Planning fee income. (£21,989) Contributions towards staff re Dugeon Plan Performance
Agreement.
25,307 Larger movements include recharges from Internal Audit £10,082, Business transformation £14,176
and Planning Management and Support £19,134 these increases are partially offset by a reduction
in the cost of computer applications team. (£15,297)
4,386
42,517
(789,320)
42,516
(849,335)
484,810
510,117
491,022
495,408
214,743
192,538
(15,000)
1,367
201,110
(15,010)
(3,975)
173,553
56,059
39,542
(50)
65,620
121,629
0
70,739
110,281
(16,517) (£4,318) Anticipated spend on Enforcement Board works. (£5,369) Staff Turnover. The balance is
made up of a number of minor variances.
50
5,119 No Major Variances
(11,348)
71,513
79,830
151,343
63,748
57,998
121,746
(7,765) (£11,000) Egmere Local Development Order, this was funded from the general reserve.
(21,832) (£6,110) Legal Services , the balance is made up of a number of smaller variances
(29,597)
282,490
(354,794)
270,827
(410,515)
150,830
78,526
148,099
8,411
(22,205) (£22,657) Staff turnover following restructure. Some of which has been requested to roll forward to
assist with the Plan review.
(10)
(5,342) No Major Variances.
(27,557)
(11,663) (£11,149) Transport related savings.
(55,721) Fee income, the net surplus on the fee earning element will be transferred to the earmarked
reserve and used as part of the fee setting process.
(2,731) No Major Variances.
(70,115)
42
Full Year Budget
£
Planning Support
Gross Direct Costs
Support Service Charges
Property Information
Gross Direct Costs
Gross Direct Income
Support Service Charges
Total Planning
Actuals
£
389,360
(342,175)
47,185
395,230
(395,230)
0
243,755
365,182
(208,000)
(261,895)
81,630
117,385
73,546
176,833
1,208,200
1,086,232
Variance
£
Explanation for Variance.
5,870 £5,930 New appointment advertising for recent recruitments.
(53,055) Increased recharges as a result of an increase in the net cost of service.
(47,185)
121,427 £19,843 Norfolk County Council Search Fees, this is offset by the income generated from fees.
£97,569 Legal fees in respect of challenges from Personal Search companies.
(53,895) Income from Land Charge Searches. Any surplus on this account will be transferred to the
earmarked reserve and be used in future fee setting calculations.
(8,084) No Major Variances
59,448
(121,968)
43
Appendix B
Appendix C
Reserves Statement Outturn 2014/15
Reserve
Balance at
1/4/2014
2014/15
Updated
Budget
Movement
2014/15
Outturn
Movement
£
£
£
Purpose and Use of Reserve
Balance at
01/04/15
2015/16
Updated
Budget
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
2017/18
Budgeted
Movement
Balance
01/04/18
2018/19
Budgeted
Movement
Balance
01/04/19
£
£
£
£
£
£
£
£
£
A working balance and contingency, current recommended
balance is £1.75 million.
1,923,146
(101,081)
365,878
2,289,024
(206,959)
2,082,065
0
2,082,065
0
2,082,065
0
2,082,065
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
1,881,280
(343,624)
795,080
2,676,360
(903,670)
1,772,690
0
1,772,690
0
1,772,690
0
1,772,690
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
47,427
(14,279)
12,472
59,899
(26,751)
33,148
0
33,148
0
33,148
0
33,148
Benefits
To be used to mitigate any claw back by the Department of
Works and Pensions following final subsidy determination.
Timing of the use will depend on audited subsidy claims.
721,792
(50,000)
0
721,792
(50,000)
671,792
0
671,792
0
671,792
0
671,792
Big Society Fund (BSF)
To support projects that communities identify where they will
make a difference to the economic and social wellbeing of the
area. Funded by a proportion of NCC element of second
homes council tax.
969,927
(620,119)
(183,339)
786,588
(338,357)
448,231
0
448,231
0
448,231
0
448,231
Broadband
Earmarks £1million for superfast broad band in North Norfolk.
(600k was transferred from the BSF reserve and £400k from
NHB reserve)
0
1,000,000
1,000,000
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
0
1,000,000
Building Control
Building Control surplus
45,688
0
74,547
120,235
0
120,235
0
120,235
0
120,235
0
120,235
Business Rates
To be used for the support of local businesses and to mitigate
impact of final claims and appeals in relation to business rates
retention scheme.
327,239
357,000
482,030
809,269
(187,855)
621,414
0
621,414
0
621,414
0
621,414
Coast Protection
To support the ongoing coast protection maintenance
programme ands carry forward funding between financial
years.
243,167
(243,167)
(5,872)
237,295
(237,295)
0
0
0
0
0
0
0
Common Training
To deliver the corporate training programme. Training and
development programmes are sometimes not completed in the
year but are committed and therefore funding is carried forward
in an earmarked reserve.
77,019
(49,569)
(49,569)
27,450
0
27,450
0
27,450
0
27,450
0
27,450
51,085
25,000
66,698
117,783
(66,698)
51,085
0
51,085
0
51,085
0
51,085
General Fund General Reserve
Earmarked Reserves:
Earmarked from previous underspends within Economic
Economic Development
Development and Tourism Budgets along with funding
and Regeneration
earmarked for Learning for Everyone.
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
75,060
14,940
14,940
90,000
(60,000)
30,000
30,000
60,000
30,000
90,000
30,000
120,000
Enforcement Works
Established to meet costs associated with district council
enforcement works including buildings at risk .
146,967
(4,365)
(110)
146,857
(36,516)
110,341
0
110,341
0
110,341
0
110,341
Environmental Health
Earmarking of previous underspends and additional income to
meet Environmental Health initiatives.
66,567
(45,000)
(25,280)
41,287
(19,720)
21,567
0
21,567
0
21,567
0
21,567
44
Appendix C
Reserves Statement Outturn 2014/15
Reserve
Balance at
1/4/2014
2014/15
Updated
Budget
Movement
2014/15
Outturn
Movement
£
£
Purpose and Use of Reserve
Balance at
01/04/15
2015/16
Updated
Budget
Movement
Balance
01/04/16
2016/17
Budgeted
Movement
Balance
01/04/17
2017/18
Budgeted
Movement
Balance
01/04/18
2018/19
Budgeted
Movement
Balance
01/04/19
£
£
£
£
£
£
£
£
£
£
Grants
Revenue Grants received and due to timing issues not used in
the year.
237,727
(114,004)
90,014
327,741
(219,405)
108,336
(6,500)
101,836
0
101,836
0
101,836
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
100,000
(15,000)
1,920
101,920
(16,920)
85,000
0
85,000
0
85,000
0
85,000
Treasury (Property)
Reserve
Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
66,068
0
0
66,068
0
66,068
0
66,068
0
66,068
0
66,068
Land Charges
To mitigate the impact of potential income reductions.
39,899
0
49,256
89,155
0
89,155
0
89,155
0
89,155
0
89,155
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
48,600
(5,005)
24,995
73,595
(30,000)
43,595
0
43,595
0
43,595
0
43,595
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
51,728
0
0
51,728
0
51,728
0
51,728
0
51,728
0
51,728
LSVT Reserve
To meet the cost of successful warranty claims not covered by
bonds and insurance following the housing stock transfer.
435,000
0
0
435,000
0
435,000
0
435,000
0
435,000
0
435,000
New Homes Bonus
(NHB)
Established for supporting communities with future growth and
development and Plan review.*
1,286,885
(186,660)
(170,691)
1,116,194
314,432
1,430,626
345,113
1,775,739
286,613
2,062,352
446,384
2,508,736
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
107,695
(81,547)
8,696
116,391
(76,963)
39,428
0
39,428
0
39,428
0
39,428
Pathfinder
To help Coastal Communities adapt to coastal changes.
239,775
(85,634)
(33,397)
206,378
(52,237)
154,141
(18,126)
136,015
(44,108)
91,907
(44,108)
47,799
Planning
Additional Planning income earmarked for Planning initiatives
including Plan review and Service delivery.
300,550
39,623
74,633
375,183
(112,590)
262,593
(84,263)
178,330
0
178,330
0
178,330
Restructuring & Invest
to Save Proposals
To fund one-off redundancy and pension strain costs and
invest to save initiatives. Transfers from this reserve will be
allocated against business cases as they are approved.
Timing of the use of this reserve will depend on when business
cases are approved.
923,299
(218,350)
(107,934)
815,365
(32,510)
782,855
0
782,855
0
782,855
0
782,855
Sports Hall Equipment
& Sports Facilities
To support renewals for sports hall equipment. Amount
transferred in the year represents over or under achievement
of income target.
30,272
(9,467)
(3,956)
26,316
0
26,316
0
26,316
0
26,316
0
26,316
10,443,862
(750,308)
2,481,011
12,924,873
(2,360,014)
10,564,859
266,224
10,831,083
272,505
11,103,588
432,276
11,535,864
Total Reserves
45
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Appendix D
Updated Budget
2014/15
Variance to Updated
Budget
Actual Expenditure
Comments
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
39,705
0
Rocket House
44,916
4,317
5,000
0
14,690
11,993
Carbon Reduction Scheme
Public Conveniences (Plumbing and Drainage)
Council Car Park Improvements 2014/15
Mundesley Road Car Park Resurfacing
North Norfolk Enterprise and Start Up Grants
110,000
116,892
70,000
615
0
35,454
284,311
169,271
46
This scheme is currently on hold. The capital budget is requested
(39,705) for slippage into 2015/16.
Some works have been completed during 2014/15, but the remaining
(40,599) capital budget is required for further works in 2015/16. As such the
balance of budget is requested for slippage.
(5,000) The remaining budget balance is no longer required.
(2,697)
This scheme is ongoing. The minor balance of budget is requested
for slippage to 2015/16.
This scheme is complete and is £6,892 overspent. This overspend
is to be financed from a virement from the 2015/16 Car Parks
6,892
Improvement, approved capital scheme, with the overspend to be
clawed back into 2014/15.
(69,385)
This scheme is ongoing. The balance of budget is requested for
slippage to 2015/16.
This scheme was agreed at Cabinet in April 2014, to be financed
from the return of the remaining monies from the Pathfinder
Business Loan and Grant Scheme. Although not included previously
35,454 within the capital programme, NNDC commenced with grant
payments in March 2015. The £35,454 expenditure incurred is to be
funded from the capital receipts received from the Norfolk
Community Foundation.
(115,040)
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Updated Budget
2014/15
Appendix D
Variance to Updated
Budget
Actual Expenditure
Comments
£
Housing and Infrastructure
Disabled Facilities Grants
500,000
534,677
Housing Associations
500,543
0
Parkland Improvements
100,000
4,437
1,100,543
539,115
40,115
35,532
Following significant slippage of the capital budget at period 6
2014/15, the payment of Disabled Facilities Grants increased in the
34,677 latter half of the year. As a result a total of £34,677 is required to be
clawed back from the 2015/16 budget in order to fund this overspend
in year.
Following delays in Housing Associations schemes none of the
(500,543) 2014/15 capital budget was expended in year. The budget is
requested for slippage into 2015/16, together with a further £4,000.
This scheme has commenced, although the majority of works are
(95,563) due to take place in 2015/16. The balance of budget of £95,563 is
requested for slippage into the new financial year.
(561,428)
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
therefore requested for slippage into 2015/16.
2,352
0
Cromer Pier Structural Works - Phase 2
21,994
23,473
Sheringham Promenade Lighting
11,773
1,806
Sheringham Beach Handrails
The capital budget of the Gypsy and Travellers sites has been
reprofiled into future financial years to reflect the accounting periods
(4,583) to which they relate. The underspend of budget in 2014/15 is
47
(2,352)
This scheme is ongoing, and the balance of budget is requested to
be slipped into 2015/16.
The works on the Pier have resulted in an overspend in year of
1,479 £1,479. This overspend is to be clawed back from the budget
available in 2015/16.
This scheme is ongoing, and the balance of budget is requested to
(9,967) be slipped into 2015/16.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Updated Budget
2014/15
Appendix D
Actual Expenditure
Variance to Updated
Budget
Comments
£
This scheme is currently under review with additional budgets and
funding being identified within the budget report for 2015/16. The
Cromer Pier and West Prom Refurbishment
Project
98,699
Refurbishment Works to the Seaside Shelters
40,194
67,878
3,829,299
1,776,471
299,358
15,560
Cromer to Winterton Scheme
43,917
13,403
Coastal Erosion Assistance
77,772
4,450
(73,322)
This scheme is to continue into the new financial year and as such
the balance of budget is requested for slippage into 2015/16.
Storm Surge
342,618
153,723
(188,895)
This scheme is to continue into the new financial year and as such
the balance of budget is requested for slippage into 2015/16.
Sheringham West Prom
804,000
279,957
(524,043)
This scheme is to continue into the new financial year and as such
the balance of budget is requested for slippage into 2015/16.
70,000
307
(69,693)
This scheme is to continue into the new financial year and as such
the balance of budget is requested for slippage into 2015/16.
Cromer Coast Protection Scheme 982 and SEA
Pathfinder Project
Mundesley - Refurbishment of Coastal
Defences
40,761
(57,938) unspent balance in year is therefore requested for slippage to the
new financial year.
48
Following slippage of £72,000 into the new year as at period 6, the
27,684 works have been progressed ahead of schedule. As such the
£27,684 is to be covered by a clawback of this sum into 2014/15.
There has been a delay in the works under this scheme, resultant
(2,052,828) from the storm surge in December 2013. The balance of the
unspent budget is therefore requested to be slipped into 2015/16.
Capital works against the Pathfinder scheme will continue into the
(283,798) 2015/16 financial year, and as such it is requested that the unspent
budget is slipped into the new financial year.
The Cromer to Winterton Scheme is to continue into the new
(30,514) financial year, and the unspent balance of £30,514 is therefore
requested to be slipped into 2015/16.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Appendix D
Updated Budget
2014/15
Actual Expenditure
Variance to Updated
Budget
Comments
£
Sheringham Gangway
Mundesley Café - Storm Surge Works
Mundesley Public Convenience - Storm Surge
Works
46,570
(90,167)
75,000
54,992
(20,008) the original capital budget sum. The scheme has been fully funded
50,000
This capital scheme is almost complete. Although the scheme is
showing additional expenditure to budget of £28,780, these costs are
28,780 anticipated as being recoverable under an insurance claim. Any
further expenditure in the new financial year should also be
recoverable through insurance.
228,780
Chalets Rebuilding - Storm Surge Works
101,800
99,545
Cromer Pier Decking - Storm Surge Works
161,324
142,156
Repairs and Renewals Grants - Flood
Protection Works
126,508
0
368,294
49
through insurance claims.
62,605
200,000
120,000
This capital scheme is complete and has come in at £20,008 under
This capital scheme is complete and has come in at £12,605 above
the original capital budget sum. This scheme has been funded in part
by an insurance claim, but due to the maximum insurance claim
12,605
value being exceeded, the excess and additional costs are to be
funded from a further RCCO from the General Fund Reserve
allocation for storm damage.
Cromer Pier Restaurant and Shop - Storm
Surge Works
Sheringham West Prom Café - Storm Surge
Works
This scheme is to continue into the new financial year and as such
the balance of budget is requested for slippage into 2015/16.
136,737
The initial chalets rebuild works have been completed, and the
(2,255) scheme has come in £2,255 under budget.
This scheme is complete, and has come in £19,168 under the
(19,168) originally identified capital budget. The expenditure has been
funded through the insurance claim.
The Sheringham West Prom Scheme is complete and has come in
£6,508 over budget. As the maximum insurance claim has been
6,508 made in respect of this property the additional expenditure has been
identified as being funded through an RCCO from the General Fund
Reserve allocation for storm damage.
Following the storm surge in December 2013 significant capital
expenditure has been incurred relating to flood protection grants.
368,294 This scheme is continuing until the end of June 2015 to enable all
works to be undertaken, with all expenditure being funded by DEFRA
grant.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Updated Budget
2014/15
Appendix D
Actual Expenditure
Variance to Updated
Budget
Comments
£
The refurbishment of the Pier Roof is complete although the scheme
Pier Roof Full Repair / Refurbishment
78,000
92,975
14,975 has come in £14,975 above the identified budget. This additional
Pier Public Conveniences
45,000
45,459
459
6,649,952
3,681,202
(2,968,750)
expenditure is to be funded through capital receipts.
This scheme has been completed at £459 over the allocated budget.
The additional expenditure is to be funded through capital receipts.
Localism
The capital grants made under the Big Society Scheme were
£19,500 in excess of the allocated budget. This additional
expenditure is to be funded from a revenue contribution to capital
19,500
expenditure from the Big Society revenue budget underspend. The
original budget of £113,000 is to be funded from the Big Society
Fund Reserve.
113,000
132,500
North Walsham Regeneration Schemes
(Including Market St North Walsham)
65,000
1,884
Victory Swim and Fitness Centre
54,370
12,535
(41,835)
Play Areas
90,809
76,999
(13,810) requested to be slipped forwards into the 2015/16 financial year,.
Splash Roof Repairs
73,630
9,563
Steelwork Protection to Victory Pool and
Fakenham Gym
30,000
33
Big Society Fund
50
This scheme is ongoing, and as such the underspend in year is
(63,116) requested to be slipped forwards into the 2015/16 financial year,.
This scheme is ongoing, and as such the underspend in year is
requested to be slipped forwards into the 2015/16 financial year,.
This scheme is ongoing, and as such the underspend in year is
This scheme is continuing into the new financial year. Slippage of
(64,067) £64,067 is therefore requested to be taken into the 2015/16 financial
year,.
This scheme is ongoing, and as such the underspend in year is
(29,967) requested to be slipped forwards into the 2015/16 financial year,.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Updated Budget
2014/15
Appendix D
Variance to Updated
Budget
Actual Expenditure
Comments
£
64,000
7,915
490,809
241,428
Trade Waste Bins/ Waste Vehicle
79,883
61,849
Personal Computer Replacement Fund
22,980
0
Waste Management & Environmental Health IT
System
11,345
5,250
Cabbell Park
This scheme is set to continue into the new financial year. Slippage
(56,085) of £56,085 is therefore requested to be taken into the 2015/16
financial year,.
(249,381)
Delivering the Vision
Asset Management Computer System
11,810
0
Procurement for Upgrade of Civica System
119,098
11,156
Administrative Buildings
126,510
48,241
15,300
15,300
Replacement of Planning Printer and Scanner
51
Significant purchases of waste bins have been undertaken in year,
(18,034) and the remaining budget is requested to be slipped forwards into
2015/16
(22,980)
Although no purchases were made against this capital scheme, in
year there is still a requirement for a continuous replacement
programme across the authority. The budget available of £22,980 is
therefore requested to be slipped into the new financial year.
Some work has been undertaken on this scheme in year, but the
(6,095) balance of budget of £6,095 is still required and therefore is
requested to be taken to the new financial year.
Staffing capacity has meant that this scheme has not been
progressed during the 2014/15 financial year. There is still a
(11,810) requirement for the works to be undertaken, and as such the balance
of budget is requested to be slipped to 2015/16
The purchase undertaken on this scheme during the 2014/15
financial year is shown as capital expenditure because it was in
excess of the NNDC de minimus level. This expenditure has been
(107,942) funded through a revenue contribution to capital outlay, and is in
addition to, rather than replacing any funding for the existing capital
scheme. As such it is requested that the full remaining capital
budget of £119,098 be slipped into the new financial year.
(78,269)
This scheme is ongoing and the balance of £78,269 is requested for
slippage into the 2015/16 financial year.
0 This scheme is complete and has come in on budget.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Appendix D
Updated Budget
2014/15
Variance to Updated
Budget
Actual Expenditure
Comments
£
Cash Receipting System Upgrade
10,000
0
Planning Probass 4
16,397
27,162
This scheme is due to be progressed in the 2015/16 financial year
(10,000) and the budget of £10,000 is therefore requested to be slipped to the
new year.
The Planning Probass scheme has been progressed faster than
originally anticipated, and therefore the £10,765 variance identified in
10,765 year will need to be clawed back from the budget previously slipped
into 2015/16.
IT Network Switches
91,286
91,286
0 This scheme is complete and has come in on budget.
Replacement of Dell Equalogic Systems
38,089
38,090
1 This scheme is complete and has come in on budget.
Telephony Procurement
90,000
7,933
(82,067) budget of £82,067 is therefore requested to be slipped into the new
Web Infrastructure Upgrade
37,500
647
(36,853) budget of £36,853 is therefore requested to be slipped into the new
New Print Solution - Multi Function Devices
60,000
53,599
Website Intergration Software
34,000
35,000
0
100,000
Server Replacement
This scheme will be progressed further in 2015/16. The balance of
financial year.
This scheme will be progressed further in 2015/16. The balance of
financial year.
The balance of budget of £6,402 is requested to be slipped into the
(6,402) new financial year.
This scheme is now complete, although an overspend of £1,000 has
1,000 been incurred. The additional expenditure will be funded from capital
receipts.
This scheme was approved during the budget process for 2015/16.
Due to timing issues the capital budget has been fully spent in the
100,000 old financial year, and this will need to be clawed back into 2014/15,
to cover the expenditure incurred.
Litter Bins
0
23,289
52
The purchase of litter bins was identified as capital as it exceeded
23,289 the NNDC deminimus level of £10,000. The expenditure is to be
funded in year from a revenue contribution to capital outlay.
GENERAL FUND CAPITAL PROGRAMME - Outturn Position 2014/15
Scheme
Appendix D
Updated Budget
2014/15
Actual Expenditure
Variance to Updated
Budget
Comments
£
Server and Storage Purchase
0
18,345
The purchase of the server and storage equipment was identified as
capital as it exceeded the NNDC deminimus level of £10,000. The
18,345 expenditure is to be funded in year from a revenue contribution to
capital outlay.
764,198
537,145
(227,053)
9,289,813
5,168,161
(4,121,652)
4,770,606
339,473
466,046
166,737
49,771
3,983
157,000
508,370
37,500
2,167,203
623,124
9,289,813
2,128,310
419,386
466,045
46,570
1,806
0
254,193
0
113,647
1,133,523
604,681
5,168,161
Capital Programme Financing
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
Other Grants
Other Contributions
Asset Management Reserve
Revenue Contribution to Capital (RCCO)
Capital Project Reserve
Invest to Save Reserve
Capital Receipts
Insurance Claims
TOTAL FINANCING
53
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15
Actual
Expenditure
Original Budget
2015/16
£
£
£
Slippage and
Amendment to
2015/16 at
Outturn
£
Current Budget
2015/16
Current Budget
2016/17
Current Budget
2017/18
£
£
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
10,295
0
39,705
39,705
0
0
Rocket House
77,084
36,485
0
40,599
40,599
0
0
Public Conveniences (Plumbing and
Drainage)
15,000
12,304
0
2,697
2,697
0
0
Mundesley Road Car Park Resurfacing
70,000
615
0
69,385
69,385
0
0
North Norfolk Enterprise and Start Up
Grants
35,454
35,454
0
0
0
0
0
Car Park Refurbishment 2015/16
53,108
0
60,000
(6,892)
53,108
0
0
300,646
95,152
60,000
145,494
205,494
0
0
Housing and Infrastructure
Disabled Facilities Grants
Annual programme
0
500,000
94,970
594,970
499,277
1,054,890
Housing Associations
Annual programme
0
0
504,543
504,543
0
0
3,500,000
0
3,500,000
0
3,500,000
0
0
100,000
4,437
0
95,563
95,563
0
0
3,600,000
4,437
4,000,000
695,076
4,695,076
499,277
1,054,890
1,409,000
1,184,417
220,000
4,583
224,583
0
0
Housing Loans to Registered Providers
Parkland Improvements
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
54
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15
Actual
Expenditure
Original Budget
2015/16
£
£
£
Slippage and
Amendment to
2015/16 at
Outturn
£
Current Budget
2015/16
Current Budget
2016/17
Current Budget
2017/18
£
£
£
40,023
37,671
0
2,352
2,352
0
0
1,418,631
1,304,161
115,949
(1,479)
114,470
0
0
79,500
69,533
0
9,967
9,967
0
0
Cromer Pier and West Prom Refurbishment
Project
815,000
42,062
715,000
57,938
772,938
0
0
Refurbishment Works to the Seaside
Shelters
149,500
109,184
72,000
(31,684)
40,316
0
0
10,400,000
3,447,172
4,900,000
2,052,828
6,952,828
0
0
1,967,015
1,683,217
0
283,798
283,798
0
0
122,000
91,486
0
30,514
30,514
0
0
90,000
16,678
0
73,322
73,322
0
0
1,041,000
852,105
0
188,895
188,895
0
0
804,000
279,957
0
524,043
524,043
0
0
2,221,000
307
0
69,693
69,693
2,151,000
0
Sheringham Gangway
136,737
46,570
0
90,167
90,167
0
0
Repairs and Renewals Grants - Flood
Protection Works
368,294
368,294
0
0
0
0
0
Ostend Targeted Rock Placement and
Coastal Adaptation
55,000
0
55,000
0
55,000
0
0
21,116,700
9,532,814
6,077,949
3,354,937
9,432,886
2,151,000
0
Sheringham Beach Handrails
Cromer Pier Structural Works - Phase 2
Sheringham Promenade Lighting
Cromer Coast Protection Scheme 982 and
SEA
Pathfinder Project
Cromer to Winterton Scheme
Coastal Erosion Assistance
Storm Surge
Sheringham West Prom
Mundesley - Refurbishment of Coastal
Defences
55
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15
Actual
Expenditure
Original Budget
2015/16
£
£
£
Slippage and
Amendment to
2015/16 at
Outturn
£
Current Budget
2015/16
Current Budget
2016/17
Current Budget
2017/18
£
£
£
Localism
197,000
732
196,268
0
196,268
0
0
North Walsham Regeneration Schemes
(Including Market St North Walsham)
82,045
18,929
0
63,116
63,116
0
0
Victory Swim and Fitness Centre
54,370
12,535
0
41,835
41,835
0
0
100,000
86,190
0
13,810
13,810
0
0
Splash Roof Repairs
73,630
9,563
0
64,067
64,067
0
0
Steelwork Protection to Victory Pool and
Fakenham Gym
30,000
33
0
29,967
29,967
0
0
Cabbell Park
64,000
7,915
0
56,085
56,085
0
0
178,500
0
178,500
0
178,500
0
0
779,545
135,897
374,768
268,880
643,648
0
0
Trade Waste Bins/ Waste Vehicle
272,700
254,666
0
18,034
18,034
0
0
Personal Computer Replacement Fund
205,583
162,603
20,000
22,980
42,980
0
0
Waste Management & Environmental Health
IT System
232,427
226,332
0
6,095
6,095
0
0
75,000
63,190
0
11,810
11,810
0
0
Procurement for Upgrade of Civica System
317,312
198,214
0
119,098
119,098
0
0
e-Financials Financial Management System
Software Upgrade
33,000
21,506
11,494
0
11,494
0
0
North Lodge Park
Play Areas
North Norfolk Railway
Delivering the Vision
Asset Management Computer System
56
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/15
Actual
Expenditure
Original Budget
2015/16
£
£
£
Slippage and
Amendment to
2015/16 at
Outturn
£
Current Budget
2015/16
Current Budget
2016/17
Current Budget
2017/18
£
£
£
250,570
172,301
0
78,269
78,269
0
0
10,000
0
0
10,000
10,000
0
0
100,000
0
100,000
0
100,000
0
0
Telephony Procurement
90,000
7,933
0
82,067
82,067
0
0
Web Infrastructure Upgrade
37,500
647
0
36,853
36,853
0
0
New Print Solution - Multi Function Devices
60,000
53,599
0
6,401
6,401
0
0
Server Replacement
100,000
100,000
100,000
(100,000)
0
0
0
Fakenham Connect and Cromer Office Works - DWP
126,000
0
126,000
0
126,000
0
0
GIS / Web Based Mapping Solution
20,000
0
20,000
0
20,000
0
0
Recording and Audio Equipment
20,000
0
20,000
0
20,000
0
0
Upgrades to Accolade and Idox
25,000
0
25,000
0
25,000
0
0
Wheeled Bins (Purchased from Kier)
66,750
0
66,750
0
66,750
0
0
Wheeled Bins
40,000
0
40,000
0
40,000
0
0
2,081,842
1,260,991
529,244
291,607
820,851
0
0
27,878,733
11,029,291
11,041,961
4,755,994
15,797,955
2,650,277
1,054,890
7,542,295
508,381
594,970
1,844,000
0
466,046
0
0
0
Administrative Buildings
Cash Receipting System Upgrade
Planning System (Scanning of Old Files)
Capital Programme Financing
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
57
GENERAL FUND CAPITAL PROGRAMME - 2015/16
Scheme
Scheme Total
Current Estimate
£
Marine Management Organisation and European Fisheries Grants
Local Levy
Other Contributions
Asset Management Reserve
Capital Project Reserve
Invest to Save Reserve
Capital Receipts
Internal Borrowing
TOTAL FINANCING
Pre 31/3/15
Actual
Expenditure
Original Budget
2015/16
£
£
Slippage and
Amendment to
2015/16 at
Outturn
£
Current Budget
2015/16
Current Budget
2016/17
Current Budget
2017/18
£
£
£
0
0
0
0
0
0
340,231
0
2,650,277
0
0
0
0
0
0
1,054,890
0
1,054,890
250,167
70,000
247,965
3,983
903,670
36,853
4,715,240
924,431
15,797,955
58
Appendix F
Prudential Indicators and MRP Outturns 2014/15
1.
Background:
1.1
The Local Government Act requires the Council to have regard to the Chartered Institute
of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local
Authorities (the Prudential Code) when determining how much money it can afford to
borrow. The objectives of the Prudential Code are to ensure, within a clear framework,
that the capital investment plans of local authorities are affordable, prudent and
sustainable, and that treasury management decisions are taken in accordance with good
professional practice. To demonstrate that the Council has fulfilled these objectives, the
Prudential Code sets out the following indicators that must be set and monitored each
year.
2.
Capital Expenditure:
2.1
This indicator is set to ensure that the level of proposed capital expenditure remains
within sustainable limits and, in particular, to consider the impact on Council Tax.
Capital Expenditure
2014/15
Estimate
£000s
Total
2.2
2014/15
Outturn
£000s
14,546
5,168
Capital expenditure will be financed or funded as follows:
Capital Financing
2014/15
Estimate
£000s
2014/15
Outturn
£000s
Capital receipts
5,578
1,125
Government Grants
7,848
3,060
Revenue contributions and Reserves
196
983
Internal Borrowing
924
0
14,546
5,168
Total Financing
59
3.
Capital Financing Requirement:
3.1
The Capital Financing Requirement (CFR) measures the Council’s underlying need to
borrow for a capital purpose. The calculation of the CFR is taken from the amounts held
in the Balance Sheet relating to capital expenditure and financing.
Capital Financing Requirement
2014/15
Estimate
£000s
Total CFR
2,253
2014/15
Outturn
£000s
1,373
The total CFR indicated in the table relates in part to vehicles and equipment used on
the Council’s refuse and car park management contracts. These are recognised under
IFRS accounting regulations which require equipment on an embedded finance lease to
be recognised on the balance sheet.
4.
Authorised Limit and Operational Boundary for External Debt:
4.1
The Council has an integrated treasury management strategy and manages its treasury
position in accordance with its approved strategy and practice. Overall borrowing will
therefore arise as a consequence of all the financial transactions of the Council, and not
just those arising from capital spending reflected in the CFR.
4.2
The Authorised Limit sets the maximum level of external debt on a gross basis (i.e.
excluding investments) for the Council. It is measured against all external debt items (i.e.
long and short term borrowing, overdrawn bank balances and long term liabilities). The
indicator separately identifies borrowing from other long term liabilities such as finance
leases. It is consistent with the Council’s existing commitments, its proposals for capital
expenditure and financing and its approved treasury management policy statement and
practices.
4.3
The Authorised Limit is the statutory limit determined under Section 3(1) of the Local
Government Act 2003 (referred to in the legislation as the Affordable Limit).
4.4
The Operational Boundary is based on the same estimates as the Authorised Limit
reflecting the most likely, prudent but not worst case scenario, and without the additional
headroom included within the Authorised Limit for unusual cash movements.
Authorised Limit for Borrowing
2014/15
Estimate
£000s
6,900
2014/15
Outturn
£000s
6,900
1,328
1,328
8,228
8,228
Authorised Limit for Other Longterm Liabilities
Authorised Limit for External
Debt
60
Operational Boundary for
Borrowing
Operational Boundary for Other
Long-term Liabilities
Operational Boundary for
External Debt
4,840
4,840
1,328
1,328
6,168
6,168
5.
Ratio of Financing Costs to Net Revenue Stream:
5.1
This is an indicator of affordability and highlights the revenue implications of existing and
proposed capital expenditure by identifying the proportion of the revenue budget
required to meet financing costs. The definition of financing costs is set out in the
Prudential Code.
5.2
The ratio is based on costs net of investment income.
Ratio of Financing Costs to Net
Revenue Stream
2014/15
Estimate
%
Total
2014/15
Outturn
%
(2.55)
(2.81)
The indicator is negative because the Council has interest receivable and no financing
costs.
6.
Incremental Impact of Capital Investment Decisions:
6.1
This is an indicator of affordability that shows the impact of capital investment decisions
on Council Tax levels. The incremental impact is calculated by comparing the total
revenue budget requirement of the current approved capital programme with an
equivalent calculation of the revenue budget requirement arising from the proposed
capital programme.
Incremental Impact of Capital
Investment Decisions
2014/15
Estimate
£
Increase in Band D Council Tax
2014/15
Outturn
£
0.35
0.15
6.2
The incremental impact of capital investment decisions reflects the additional revenue
cost to the authority of undertaking specific capital schemes, together with the loss of
interest from the use of capital receipts that would otherwise have been invested as part
of the Treasury Management process.
7.
Adoption of the CIPFA Treasury Management Code:
7.1
This indicator demonstrates that the Council has adopted the principles of best practice.
61
Adoption of the CIPFA Code of Practice in Treasury Management
The Council approved the adoption of the CIPFA Treasury Management Code at Full
Council on 28 April 2010.
62
Agenda Item No___10__________
Debt Recovery 2014-15
Summary:
This is an annual report detailing the council’s collection
performance and debt management arrangements for 2014/15
The report includes a:




Recommendations:
Cabinet member(s):
All
Contact
Officer,
number, and e-mail:
1
A summary of debts written off in each debt area showing
the reasons for write-off and values.
Collection performance for Council Tax and NonDomestic Rates.
Level of arrears outstanding
Level of provision for bad and doubtful debts
To approve the annual report giving details of the Council’s
write-offs in accordance with the Council’s Debt Write-Off
Policy and performance in relation to revenues collection.
All
All
telephone Sean Knight 01263 516347
Sean.Knight@north-norfolk.gov.uk
Introduction
1.1. The Corporate Debt Management and Recovery Policy at Appendix 1 has been
revised to reflect some slight changes needed since last year. This annual report is one
of the performance management measures to provide members with outturn figures for
2014/15 for the following:
 A summary of debts written off in each debt area showing the reasons for
write off and values.
 Collection performance for Council Tax and Non - Domestic Rates
(NNDR).
 Level of arrears outstanding
 Level of provision for bad and doubtful debts
63
2.
Background
2.1. Writing off bad debts is a necessary function of any organisation collecting
money. The Council is committed to ensuring that debt write offs are kept to a minimum
by taking all reasonable steps to collect monies due. There will be situations where the
debt recovery process fails to recover some or all of the debt and will need to be
considered for write off. The Council views such cases very much as exceptions and
this report identifies those debts.
3.
Performance
3.1. Below is a summary of the Council’s three main income streams and the level of
debt associated with each, for the last four financial years.
Table 1
Income Area
Council Tax
Income Area
NNDR
Total Arrears
at 31st March
Year/Date All
Years
(after
write
offs)* (£)
Current
Years
% of Current
Arrears
Arrears
v
Included
Net Debit
(after write
–offs) (£)
Provision for
Bad/Doubtful
Debt for all
years (£)
2011/12
1,630,971
762,241
1.39%
588,250
2012/13
2,038,807
1,048,844
1.9%
750,425
2013/14
2,140,624
1,043,935
1.83%
774,981
2014/15
2,096,472
902,738**
1.56%
777,268
Total Arrears
at 31st March
Year/Date All
Years
(after
write
offs)* (£)
Current
Years
% of Current
Arrears
Arrears
v
Included
Net Debit
(after write
–offs) (£)
Provision for
Bad/Doubtful
Debt for all
years (£)
2011/12
221,280
179,044
0.64%
141,591
2012/13
555,781
430,918
1.88%
279,008
2013/14
336,511
195,269
0.81%
115,027
2014/15
304,708
150,005**
0.65%
167,962
*This is the cumulative arrears (excludes costs) for all years including 2014/15.
** This is the arrears figure as at 31/3/2015. Collection of the 2014/15 debt is ongoing
and £195,042 council tax and £3,911 NNDR has been collected since that date against
previous year’s arrears.
64
The table below shows the level of sundry debt outstanding at the year end and the
element of that debt which is attributable to Housing Benefit Overpayments being
collected by invoicing customers.
Table 2
Income Area
Year
Sundry Income
2011/12
(includes
HB
Overpayments) 2012/13
2013/14
2014/15
*
**
***
****
Total Arrears
at 31st March
All
Years
(after
write
offs) (£)
%
Net Debit
outstanding Provision for
Raised
against debit Bad/Debt for
End of Year
at year end all years (£)
(£)
(£)
*827,655
5,283,458
15.67%
451,857
**761,402
5,054,143
15.06%
462.143
***727,460
4,639,974
15.68%
481,568(at
8/5/14)
****984,083
5,480,215
17.95%
491,040
2011/12 Housing Benefit Overpayments = £ 509,403
2012/13 Housing Benefit Overpayments = £594,596
2013/14 Housing Benefit Overpayments = £450,291
2014/15 – Residue Housing Benefit Overpayment = £319,276
3.2
The arrears figure includes 26 debtors with invoice values over £5,000 which
accounts for £685,422 (70% of the outstanding debt), these are broken down as
follows:-.



14 of these invoices are Housing Benefit overpayments (HBOP) totaling
£151,595.
Out of the 14 above invoices, 10 of these total £120,519 that are being repaid by
instalments, Attachment to Earnings or Benefit - By the nature of the debt
repayment of these will be over a considerable period of time (arrangements
varying from £10- £100 month (dependent on individual circumstances).
The remaining 4 invoices are currently at various enforcement stages with Legal
Services.
65
Table 3
Council
Tax
2011/12
2012/13
2013/14
2014/15
54,801,832
55,279,404
56,911,522
57,915,564
Average
Number of Amount per
Accounts Account (after
(£)
adjustments)
(£)
52,708
1,040
52,905
1,045
53,038
1,073
53,352
1,086
NNDR
2011/12
2012/13
2013/14
2014/15
21,705,544
22,850,477
24,047,238
23,805,739
6,023
6,094
6,285
6,414
3,603
3,749
3,826
3,712
221,280
555,781
336,511
304,708
Sundry
Income
2011/12
2012/13
2013/14
2014/15
5,283,458
5,054,143
4,639,974
5,480,215
6,801
6,083
5,231
4,618
777
831
887
1,187
827,655
761,402
727,460
984,083
Income
Area
Year/Date
Net
Collectable
Debit (£)
Total of all
Years
Arrears (£)
1,630,971
2,038,807
2,140,624
2,096,472
Table 4
Income
Area
Council
Tax
NNDR
2011/12
2012/13
2013/14
2014/15
Target
2014/15
Target
2015/16
98.6%
97.9%
98.1%
98.5%
98.5%
98.5%
98.8%
98.4%
99.1%
99.3%
99.2%
99.2%
3.3. Since 2013, there have been a number of changes that has impacted on council tax
charges. From April 2013 support for council tax was localised. The Government
reduced the level of funding that it had previously provided to cover the cost of the
support (council tax benefit). All those of working age who had previously been on
100% benefit had to pay a minimum of 8.5%. (April 2014 - 3100). In addition some
people on benefits were also affected by other welfare reform changes – e.g. under
occupation of properties in the social sector and the benefit cap, putting additional
pressure on incomes. In addition to the welfare changes there were a number of
technical changes to council tax. These included an increase in the charge for second
homes owners, a reduction in the discounts for empty properties and those properties
undergoing structural repair and alteration. These changes impacted on the level of
council tax to be collected and the ability of some residents to pay. The target for
council tax collection was challenging given the above.
66
3.4 There are no longer national indicators for the collection of Council Tax and NonDomestic Rates. The performance indicator (PI) is retained as a local PI, and continues
to be monitored monthly. An important part of debt management is to ensure that bills
are sent out accurately and timely and that council tax and business rate payers are
aware of any appropriate discounts, exemptions, reliefs and benefit entitlement they
may be entitled to. Information sent with the annual bills, the web site and service
information provides information on discounts etc. The ongoing promotion of Direct
Debit also forms an important part of debt management 68.82% of council tax payers
are paying by direct debit and 49.81% of NNDR customers pay by direct debit.
3.5 The Government has extended the Small Business Rate Relief (SBRR) scheme.
Small businesses with a Rateable Value below £6,001 will continue to receive the
increase of 100% relief (increase funded by Government) until 31 March 2016 when the
relief may reduce back to 50%. SBRR at 100% was awarded to 3,555 (55.4%)
accounts equal to £4.2m, out of 6,414 business rated properties with a gross debit of
£23.8m. The Government has given funding to local authorities to provide a discount
worth up to £1,500 in 2015/16 (an increase from £1,000 in 2014/15) to retail premises
with a rateable value of up to £50,000. The Government is also giving funding to local
authorities so that they can provide a 50% discount for 18 months for those businesses
that move into retail premises that have been empty for a year or more.
4.
Write-Offs
4.1. The table below shows in summary the amounts of debts that have been written
off over the last five years.
Table 5
Income
Area
2010/11(£)
2011/12(£)
2012/13(£)
2013/14(£)
Council Tax
159,759
144,803
85,614
NNDR
71,320
120,994
46,165
91,111
47,423
33,241
64,902
58,072
41,526
30,654
16,841
51,688
74,971
34,214
Sundry
Income
includes
Housing
Benefit
write-offs
Housing
Benefit
193,560
2014/15(£)
139,971
83,864
The table below details the category of debts that have been written off over the year
2014/15 (includes costs) for all years.
67
Table 6
Category
Unable to collect
Uneconomic/
bailiff unable to
collect
Debtor deceased
Debtor absconded
Debtor
in
bankruptcy
Or liquidation or
other
Insolvency
proceedings
Debt cannot be
proved (conflict of
evidence)
Ill health & no
means
Undue hardship
Debt remitted by
the Court
Irrecoverable
Other
Totals
Council Tax(£)
NNDR(£)
Sundry Income(£)
3,025
672
60
14,307
87,677
0
13,256
3,367
11,459
35,388
67,997
5,147
257
0
0
372
0
0
-1
0
0
0.00
0
5,518
1,299
0.00
139,971
2,552
0
83,864
0
12,680
41,526
4.2
The level of council tax and NNDR (business rates) and sundry income written
off has decreased in value from last year. The debts written off are principally debts
from previous years that for various reasons cannot be recovered. The level of debt
written off for people absconding has reduced for council tax and increased slightly for
NNDR (business rates). Whilst every effort is made to trace debtors there is a number
of debtors that cannot be traced and the debt has to be written off. The business rate
debt having to be written off is largely because businesses have gone into bankruptcy /
insolvency however this has reduced since last year.
5.
Financial Implications
5.1. The Council is already required to make provision for bad and doubtful debts.
The additional information gained from this report will help improve monitoring and our
ability to consider the appropriateness of the provisions in a more accurate way.
6.
Equality & Diversity
6.1. The Debt Management & Recovery Policy takes account of the impact that
getting into debt can have on people and their families, so it also encourages people to
pay, and aims to provide reasonable facilities and assistance for them to do so.
6.2. Before writing off debt, the Council will satisfy itself that all reasonable steps have
been taken to collect it and that no further recovery action is possible or practicable. It
will take into account the age, size and types of debt, together with any other factors
68
that it feels are relevant to the individual case. All write-offs are dealt with in the same
fair and consistent way in line with equality and diversity issues.
69
Appendix A
CORPORATE DEBT MANAGEMENT AND
RECOVERY POLICY
INTRODUCTION
Effective debt management is crucial to the success of any organisation. It is essential
that this authority has clear policies and strategies to help prevent debt in the first
instance and then manage the recovery of debt where prevention has failed. If the
Council is to achieve its aim of first class resource management, then it must seek to
recover all debts due and sustain collection rates. It also has a key role in the prevention
of debt, and in providing advice and assistance to clients where there is genuine
hardship.
This policy has therefore been designed to address these concerns. Its implementation
aims to deliver measurable service improvement and adherence to recognised good
practice. Members need to be confident that debt is being managed within the
parameters set by this document.
The following policies have been prepared within this framework:
Benefit Overpayment Policy
Counter-Fraud and Prosecution Policies
Debt Write - Off policy as shown in Appendix B.
POLICY AIMS
The key aims of this policy are as follows:
 To identify debtors as early as possible, and consider fully the debtors circumstances
and ability to pay, and so distinguish from the outset between the debtor who won’t
pay, and the debtor who genuinely can’t pay.
 To work with the client to clear the debt as soon as possible. To ensure a
professional, consistent and timely approach to recovery action across all of the
Council’s functions.
 To cost effectively pursue all debts owed to the Council, seeking to maintain and
improve on the levels of income collected by the authority.
 To p r o m o t e a c o -ordinated a p p r o a c h t o w a r d s s h a r i n g d e b t o r
i n f o r m a t i o n a n d managing multiple debts owed to the Council. To actively work
alongside approved advice agencies to seek early identification of clients who are
failing to meet multiple debt liabilities.
 To only write debt off once all avenues have been exhausted for the recovery of
debt. This is in accordance with the Council’s write-off policy.
 To treat individuals consistently and fairly regardless of age, sex, gender, disability,
ethnicity, race or sexual orientation, and to ensure that individual’s rights under Data
Protection and Human Rights legislation are protected.
70
SUPPORTING THE COUNCIL’S CORPORATE PRIORITIES
This Policy supports the Council’s drive towards continuous improvement whilst
recognising equality and diversity issues. It is reflective of the values and standards
adopted by this Council within the Corporate Plan and contribute towards the following
priorities:
First Class Resource Management – To manage the Council’s resources efficiently
and effectively and to make sensible choices in setting priority led service budgets which
do not burden council tax payers with unnecessary or unjustifiable costs.
Better Access to Council Services – To improve customer service through all access
channels, and to move towards a fully integrated front office with multi-agency enquiryhandling capacity.
The Policy also supports the wider aim of improving service provision through
partnership working by seeking to maximise the benefits of external debt advisory
agencies.
DEBTS COVERED BY THIS POLICY
The main section involved in debt recovery is Finance.
The debts involved are primarily:
• Council Tax
• National Non Domestic Rates
• Overpaid Housing Benefit
• Sundry Income
The policy will apply to all sections of the Council and focus on collecting the charge set
rather than how the charge is arrived at. Ability to pay is a paramount concern when
considering debt recovery. For Council Tax a discretionary scheme (Council Tax
Support) is provided on application, which is designed to offset the effects of low income
on ability to pay.
Charging policy, statutory or discretionary will never completely remove the problems of
people and families on low incomes. The approach to recovery must therefore be
sensitive to individual circumstances and take into account multiple debts owed to
ensure that arrangements are manageable. The primary aim remains the recovery of
debt and improved data sharing will support this aim.
THE LEGAL AND POLICY FRAMEWORK FOR RECOVERY
The Council has a legal duty to ensure cost-effective billing, collection and recovery of all
sums due to the Council. This policy is in addition to existing legislation and will provide a
framework for procedures to be developed and improved.
This debt recovery policy is concerned primarily with the recovery of debts prior to legal
action being taken, but the principles should still be applied wherever appropriate even if
litigation has commenced.
Local Taxation
Council Tax recovery procedures are laid down by statute in The Council Tax
(Administration and Enf orcem ent ) Regulations 1992 and subsequent
amendments.
71
National Non-Domestic Rates recovery procedures are laid down by statute in The Local
Government Finance Act 1988 and subsequent regulations and amendments.
The Council appoints Enforcement Agents to recover local taxation arrears in
accordance with an enforcement protocol. Changes to legislation came in from April
2014 nationally standardising fees and charges and an enforcement protocol for bailiffs.
From April bailiffs became known as Enforcement Agents. The changes to the legislation
are to ensure that the rates and charges added by the Enforcement Agents are
transparent and nationally set making it easier for debtors to understand the
consequences of non-compliance and the powers available to Enforcement Agents.
The Enforcement Agent Code of Practice & Enforcement Agent Instructions is shown in
Appendix A.
Housing Benefits
Housing Benefit overpayments are reclaimed in accordance with Regulations 98-105 of
The Housing Benefit (General) Regulations 1987 (as amended) And Sections 105 & 106
of the Welfare Reform Act 2012 and Social Security Overpayment and Recovery)
Regulations 2013. The Benefit Overpayment Policy sets out the basis under which these
debts are recovered.
Miscellaneous Income
Sundry Debt arrears are collected within a well-established framework, but written
guidelines are required. On certain debts, interest may be charged for late payment. The
debtor will be made aware of any additional costs in advance so that they have the
opportunity to avoid this wherever possible. Customers will also be made aware of legal
fees and costs that will be incurred for non-payment.
THE POLICY
• Full names, contact address and a phone number will be established wherever
possible prior to service provision or invoicing/billing.
• All Council bills and invoices will be raised as soon as practicable on a daily basis
and will include clear, relevant and full information as to:
– What the bill is for;
– When payment is due;
– How to pay;
– How to contact us if there is a query in relation to the bill or in relation to making
payment.
• All letters and reminders will:
– Be written in plain English;
– Explain fully what has been agreed and the consequences of non-payment;
– Include appropriate contact details.
• Debtors will be encouraged to make prompt contact if they disagree with a bill or have
difficulty in making payment on time. Contact can be made by:
– Telephone
– Letter
– Email
– Website
– Fax
– In person at the Council Offices.
72
• Problems and bill discrepancies raised will be resolved as quickly as possible to
prevent unnecessary delays in payment and incorrect debits.
• All debtors seeking help due to financial difficulties will:
– Be given the opportunity to have their ability to pay assessed by the relevant
collection unit;
– Be invited to provide details of their means by listing their income and expenditure.
(Evidence to confirm the accuracy of the means statement will be requested if
necessary);
– Be invited to use the money and debt advice services available from the Citizens
Advice Bureau (CAB);
– Be asked if they have other debts owing to the Council that they also wish to be
considered;
– Be given access to the Council’s interpreter service if required.
• If legal proceedings have already commenced, consideration will be given to whether
the debt can firstly be attached to earnings or benefits, the priority of the debts owed
and the level of repayments currently being made.
• If a specific recovery action has already commenced e.g. attachment of earnings or
the debt has been passed to an Enforcement Agency, the action taken will usually
continue. However, any arrears not included in the action will be considered in line with
existing arrangements and this policy.
• If it is found that the debtor has the ability to pay, but refuses to pay, then recovery
action will continue promptly within the existing arrangements for the type of debt.
• If it is found that the debtor is suffering severe hardship or has difficulty managing their
own affairs, the following will be considered:
– Can we reduce the debt? Are they entitled to take up relevant benefits, discounts,
exemptions, reliefs or any other reductions to minimise the potential for debt
accrual?
– Does the debtor owe money to other Council services? If so the debtor will be
advised that, with their consent, all their Council debts may be taken into
consideration when deciding on an arrangement. The advantage to the debtor in
making a common arrangement is that they may save time and costs. However, it is
for the debtor to decide if this is an option they want to pursue.
• If a debtor takes up the offer to deal with all Council debts collectively, the various
services will communicate the debtor’s details confidentially between themselves and
will endeavour to take a holistic approach to collection without prejudice to their own
service. An officer will be identified as a single point of contact for the debtor and will
act as a liaison between services.
• Where there is no continuous liability a special long-term arrangement may be made
according to the ability to pay and the existing recovery provisions such as an
attachment of earnings.
• Where liability is continuous e.g. Council Tax, NNDR any arrangement made will
normally require payments over and above the on-going monthly liability. Future
instalments must be paid when due as a condition of the arrangement.
73
Longer term arrangements for older arrears will be strictly monitored and reviewed. If
there is no improvement by the review date and if the amount payable cannot be
reduced (by awarding Council Tax Support or other reliefs, discounts, exemptions etc.),
the Council will reserve the right to continue with legal action, and in the case of Local
Taxation, obtain a Liability O rder from the Magistrates’ Court. This is to protect the
Council’s interests and prevent the debt from becoming statute barred and irrecoverable.
Nevertheless regular contact with the debtor will be made and part payments will be
accepted to reduce the overall debt. Furthermore it is not in the debtor’s best interest to
have a long term arrangement when liability is continuous, since the level of debt will
increase as time goes by and the debtor’s situation deteriorate rather than improve.
• If a debtor is receiving Income Support or Job Seekers Allowance, this will usually limit
the ability to pay to no more than the amount that can be paid directly to creditors by
the Department of Work and Pensions (DWP). Where appropriate, a separate
agreement will be made for additional debts and Liability Orders depending on the
individual’s circumstances.
• Debtors given time to pay will be advised to contact the Council immediately should
they experience a change of circumstances affecting their ability to pay. This is to
discuss the options available to prevent recovery action and additional costs.
If a debtor fails to co-operate by:
– Refusing to provide details of their means, and/or
– Not consenting to multiple debts being dealt with together, and/or
– Failing to pay a special arrangement on time without contact, then recovery
action will be taken promptly in the normal way.
LIMITATIONS ON DEBT RECOVERY
All Enforcement Agents appointed will w o r k t o an a g r e e d Enforcement Agent
Code of Practice & Enforcement Agent Instructions as shown in Appendix A.
PROCEDURES AND TRAINING
This policy will be made available to all staff dealing with income collection and recovery.
This will be reinforced with training and management supervision of all staff involved in
collecting debt.
MONITORING
Each section will be responsible for ensuring that this policy is adhered to and effective.
Management information will be required for each debt stream on a monthly basis to be
co-ordinated by the Revenues Section in a format to be agreed.
Revised May 2015
74
Enforcement Agent Code of Practice
Guidance - Use of Enforcement Agents
Any Enforcement Agent engaged by this Council shall adhere strictly to the provisions
contained in the appropriate legislation relevant to taking control of goods and any
other instructions laid down by this Council as may be in force at the relevant time.
The Enforcement Agent will not raise or charge any costs or fees in excess of the
costs and fees allowed under any Regulations in force at the relevant time.
The Enforcement Agent shall not represent himself as an employee or representative
of the Council, unless directly employed by the Council.
o
The Enforcement Agent shall not follow any irregular practices with regard to
taking control of goods or attempting to take control of goods, or in the
execution of warrants and shall not cause nuisance or trespass in the
execution of his duties.
o
The Enforcement Agent may conduct his business out of normal office hours,
(8:30 - 5:00 ) but shall at all times consider the reasonableness of the time
and the debtor’s personal and business movements.
o
The Enforcement Agent shall not discriminate against or in favour of a debtor
on the grounds of ethnic origin, sex, religion, status, race, colour, creed or
disability.
o
No removal of goods is to be undertaken without prior authorisation,
preferably in writing, by the Client, against the long term sick, the disabled
(either mental or physical) those in hospital, those recently bereaved, those
on Income Support, or those where in the opinion of the attending
Enforcement Agent to do so would cause the Council unwarranted publicity.
o
All Enforcement Agents are required to be Certificated Enforcement Agents
of the County Court and either corporate or individual members of CIVEA or
working towards it and shall not have, nor permit any of his personnel to
have, any criminal convictions or disqualification including those under the
Rehabilitation of Offenders Act 1974 and shall sign a declaration to that
effect.
o
Debtors are to be given a minimum 14 days notice before enforcement visits
commence.
o
The Enforcement Agent shall indemnify the Council against any and all
actions arising from any act or omission not occasioned by the Council and
75
those where the Enforcement Agent was aware that there was an act or
omission prior to the action taking place.
o
Cases where the taking control of and removal of “Tools of the Trade” over
the statutory £1350 limit is being sought shall be referred on a case by case
basis to the relevant officer. No such removal shall take place without this
referral having been made.
o
Whilst permitted in legislation, visits are not to be made on Sundays.
Revised May 2015
76
o
Enforcement Agent Instructions
1. General
1.1 It is the Council’s policy to be firm yet fair when dealing with our taxpayers.
1.2 Although the Council’s preferred method of recovery is Attachment of Earnings or
Benefits the Council’s Policy is that the most appropriate method shall be used from
information available to recover the sums due.
1.3 No method of recovery shall be used which is either not in the Council’s best
interests or which may bring the Council into disrepute. At all times an attempt should
be made to minimise the detrimental effect on the family of the taxpayer whilst
ensuring the debt is paid. Special care shall be taken when dealing with vulnerable
groups i.e. the elderly, the long term sick, the disabled (either mental or physical)
those in hospital, those recently bereaved, or those on Income Support/Job Seekers
Allowance Income Based.
1.4 If there is a genuine inability to pay and the debt is small the Enforcement Agent
should pass the information and circumstances to the office so that an informed
decision as to the appropriate action can be made.
2. ENFORCEMENT AGENT WORKING PRACTISES.
2.1 The Contractor shall not sub-contract the provision of the service or any parts
thereof to any person.
2.2 Work shall be issued to the Enforcement Agent electronically.
2.3 The Enforcement Agent shall conduct his/her affairs in accordance with statutory
requirements and comply with the North Norfolk District Councils Code of Conduct for
Enforcement Agents, Enforcement Agent Guidelines, Enforcement Agents Code of
Practice, and any Nationally approved Code of Practise.
2.4 All visits shall be carried out in accordance with legislation.
2.5 The Enforcement Agent shall commence processing all cases issued to him
within 3 days of instruction unless otherwise agreed by the Council.
77
2.7 The Enforcement Agent shall, on each visit to a debtors premises, present his
identification without being requested to do so once it has been confirmed that he is
speaking to the debtor.
2.8 The Enforcement Agent shall thoroughly and accurately complete the appropriate
visiting documentation provided to him by his employer.
2.11 The Enforcement Agent shall seek completion of signed controlled goods
agreements where required.
2.12 The Enforcement Agent shall have regard to the Council’s Special Arrangement
Policy when considering entering into Controlled goods agreements with the debtor.
2.13 Goods taken into control shall be detailed on the appropriate Enforcement
Agency documentation. In the case of electrical goods, serial numbers shall be listed
on the inventory.
2.14 In exceptional circumstances, i.e. where the Council or the Enforcement Agent is
aware of a debtors imminent intention to move away or another Enforcement Agents’
imminent involvement in one of our cases, the normal process will be by-passed and
immediate action to take control of/remove goods to secure the Councils’ position
shall take place.
2.17 The Enforcement Agent shall provide sufficient and accurate evidence, including
a nulla bona certificate, in cases where required.
2.18 The Enforcement Agent shall obtain authorisation from the relevant officer prior
to the removal of goods taken control of.
2.19 The Enforcement Agent shall attend Court to act as witness if so required.
2.20 The Enforcement Agent shall immediately inform the relevant officer of any
cases of physical or verbal abuse or where any action could lead to an official
complaint or legal challenge being directed at the Council.
2.21 The Enforcement Agent shall be notified by the Council within five working days
of the posting to an individual’s account of payments received or amendments made
which alter the balance of any Liability Order currently being processed by him/her.
78
COUNCIL’S SPECIAL ARRANGEMENT POLICY
• When making special payment arrangements the Enforcement Agent shall
endeavour to ensure the arrangement ends within the same financial year, or does
not exceed a period of 12 months, having sought approval from a member of the
Revenues Team.
• Debtors can be offered the option of weekly or fortnightly instalments instead of
monthly.
• If the debtor requests that the instalment profile is extended over a year end or
twelve month period written or verbal authorisation shall be sought from a member of
the Revenues Team
• Remember when making these arrangements to notify the Debtor that the new
year’s instalments will need to be paid when due.
• All arrangements shall be made subject to the debtor signing a controlled goods
agreement.
• Any failure by the debtor to maintain the special arrangement shall result in further
recovery action being taken.
Revised May 2015
79
DEBT WRITE OFF POLICY
1.
This forms part of the Council’s Corporate Debt Management and Recovery
policy (Appendix B).
2.
The Council is committed to ensuring that debt write offs are kept to a
minimum by taking all reasonable steps to collect monies due. There will be
situations where the debt recovery process fails to recover some or all of the
debt and will need to be considered for write off. The Council views such
cases very much as exceptions and this document provides the framework
within which procedures must be documented and followed.
3.
The Debt Management and Recovery policy takes account of the impact that
getting into debt can have on people and their families, so it also encourages
people to pay, and aims to provide all reasonable facilities and assistance for
them to do so. Before writing off debt, the Council will satisfy itself that all
reasonable steps have been taken to collect it and that no further recovery
action is possible or practicable. It will take into account the age, size and
types of debt, together with any other factors that it feels are relevant to the
individual case.
4.
The Council will only consider write off in the following circumstances:
Category
De-minimus /
Uneconomic to
collect
Requirement
Debts less than £10.00 would not be cost
effective to pursue.
Sundry Income Debts of £100 plus which
have been returned from tracing agents
and where legal costs will exceed the debt.
Action
Submit for
Write Off
Debtor deceased –
No Estate
Insufficient funds in estate to discharge
debt.
Submit for
Write Off
Debtor absconded /
Unable to Trace /
Detained or
Imprisonment *
All attempts to trace debtor have failed.
Including tracing agent for debts over
£25.00. Including long-term imprisonment
(12 months) or more.
Submit for
Write Off
Debtor in bankruptcy
or liquidation or other
insolvency
proceedings
including Debt Relief
Orders**
Debt cannot be
proved
(conflict of evidence)
A claim against the debtor has been
lodged with the administrators. No
dividend is to be paid or the balance after
the dividend is submitted.
Submit for
Write Off
An explanation should be given as to why
recovery cannot be made.
Submit for
Write Off
Ill Health & no
means
Written evidence of one of the following
criteria:
1. Terminal illness and limited means
2. Where payment would cause further ill
health
3. Old age and frailty and no financial
Submit for
Write Off
80
Undue hardship and
debt remaining
following negotiated
settlement.
Debt remitted by the
Court
assistance
4. Severely mentally impaired and no
financial assistance
5. Long term hospitalisation or residential
care and no means to pay
Where the debtor can provide written
evidence of genuine financial difficulty,
showing evidence of inability to pay even
small instalments, or that such payment
will cause undue hardship.
Action in the Magistrates Court has
resulted in the Magistrates remitting the
debt, leaving the Council with no
alternative but to write off the amount.
Irrecoverable / Out of The debtor has moved out of legal
Jurisdiction***
jurisdiction or the debt has been returned
nulla bona and all other recovery avenues
have failed.
Submit for
Write Off
Submit for
Write Off
Submit for Write
Off
* If a debtor’s whereabouts become known after the write-off has been approved,
then the debt should be written back on.
** If a dividend is subsequently paid, then the debt should be written back on.
*** If the debtor subsequently moves back into legal jurisdiction, then the debt should
be written back on.
5.
Debts will normally only be considered for write off where the account is
“closed” (i.e. no recurring debt). Only in exceptional circumstances will
amounts on “live” (i.e. ongoing accruing debt) accounts be considered for
write off. Such cases must demonstrate that further recovery action will not
achieve collection of the debt.
6.
The Head of Finance will be accountable to Cabinet Committee for the
effective management of debt write offs and will ensure that appropriate
performance management arrangements are introduced across all Council
service and debt areas.
7.
Decisions on the write off of individual debts will be taken in accordance with
the Council’s Scheme of Delegation. They must also comply with all relevant
statutory requirements and those of the Head of Finance or designated
representative(s).
8.
Cabinet Committee will receive an annual report from the Head of Finance
summarising performance on debt write offs during the previous year.
9.
Each Service Head will be responsible for the initial recovery of debt within
their service. Where the debt is collected through Sundry Income the Head of
Finance will be responsible. Once recovery action is required this must be
passed to the recovery section who will then take ownership of the debt.
10.
The Heads of Service will be responsible for the regular review of debts and
will consider the need for write off of individual debts within their jurisdiction,
monthly. On a quarterly basis a report, will be produced for Cabinet.
81
11.
Negotiated settlements generally result in the need for a write off. Any
negotiation of a settlement at court will be the responsibility of the Court
Officer, as such situations cannot be planned and we need to respond
immediately. Any other negotiated settlement will require approval according
to the Scheme of Delegation i.e. the write off amount is the sum being
remitted through negotiation.
12.
Prior to write off being proposed, the debt will be reviewed to ensure that no
Further recovery action is possible or practicable.
13.
Following the appropriate investigation, those debts still considered
irrecoverable will be proposed for write off. The following information needs to
be provided for each debt to the officer who authorises the write offs:

Debtors name

Debtors address

Description of debt

Period of debt and / or date of invoice

Amount to be written off

Reason for write off
Supporting documentation must be retained and available that shows:

Evidence to support write off

Recovery history

Details of tracing and enquiries carried out
In considering a debt for write-off the following conditions will apply:

Each case will be considered on its merits

Each request will be supported by relevant documentation

Each case will receive authorisation from the appropriate authorised
officer
14.
Appropriate records of all authorised write offs will be maintained and
reviewed periodically against live caseload. This will enable any trends to be
identified and will support the review of the Policy every 12 months.
15.
Authorisation levels are reflected in the Scheme of Delegation within the
following parameter.
Section Manager / Team Leader
Head of Service / Revenues Manager
Head of Finance
Head of Finance or Chief Executive in consultation with
the Portfolio Member
up to £1,000
up to £10,000
up to £20,000
over £20,000
16.
The Head of Service will record all write-off decisions, and provide a summary
to the Head of Finance. This will be available for further Scrutiny, for Audit
purposes and for quarterly reporting to Cabinet.
17.
The Head of Corporate Finance will submit an annual report to Cabinet
identifying the following:
 A summary of debts written off in each debt area showing reason for
write-off, values and number of cases.
 Collection performance for each service area
 Level of arrears outstanding
 Level of provision for bad and doubtful debts
Reviewed May 2015
82
Agenda Item No____11_________
Treasury Management Annual Report 2014/15
Summary:
Options Considered:
Conclusions:
Recommendations:
Reasons for
Recommendation:
This report sets out the Treasury Management activities
actually undertaken during 2014/15 compared with the
Treasury Management Strategy for the year.
This report must be prepared to ensure the Council
complies with the CIPFA Treasury Management and
Prudential Codes.
Treasury activities for the year have been carried out in
accordance with the CIPFA Code and the Council’s
Treasury Strategy.
That the Council be asked to RESOLVE that The Treasury
Management Annual Report and Prudential Indicators for
2014/15 are approved.
Approval by Council demonstrates compliance with the
Codes.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not published
elsewhere)
Cabinet Member(s)
Ward(s) affected: All
Contact Officer, telephone number and email: Tony Brown, 01263 516126, tony.brown@northnorfolk.gov.uk
1.
Introduction
1.1
The Chartered Institute of Public Finance and Accountancy (CIPFA) defines treasury
management as “the management of the Council’s investments and cash flows, its
banking and its capital market transactions; the effective control of the risks associated
with those activities and the pursuit of optimum performance consistent with those risks”.
1.2
The Council’s treasury management activities are undertaken in accordance with the
CIPFA Code of Practice on Treasury Management. The Code requires local authorities
to produce annually Prudential Indicators and a Treasury Management Strategy
Statement on the likely financing and investment activity. The Code also recommends
that members are informed of treasury management activities at least twice a year.
83
1.3
This report sets out details of investment transactions; reports on the risk implications of
treasury decisions and transactions; gives details of the actual results for the year and
confirms the position on compliance with treasury limits and Prudential Indicators. It
fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard
to both the CIPFA Code and the Investment Guidance.
1.4
The Council has invested substantial sums of money and is therefore exposed to
financial risks, including the loss of invested funds and the revenue effect of changing
interest rates. The successful identification, monitoring and control of risk are therefore
central to the Council’s treasury management strategy.
2.
Economic Background
2.1
The UK economy performed well in 2014/15. Growth in Gross Domestic Product was
robust, reaching 3% in December 2014, although preliminary estimates for March 2015
are that it has fallen back to 2.6%. The service, production and construction sectors
have all been buoyant. The consumer plays an important role in economic activity and
house prices, improved consumer confidence and healthy retail sales have all added to
the positive result.
2.2
Annual inflation as measured by the Consumer Prices Index fell to zero for the year to
March 2015, down from 1.6% a year earlier. The main reason for this was the dramatic
fall in the price of oil which fell to $44.35 a barrel and a price not seen since 2009. There
was a steep drop in wholesale energy process and supermarket competition resulted in
lower food prices. The Bank of England’s Governor wrote an open letter to the
Chancellor of the Exchequer in February explaining that the Bank expected CPI to
temporarily turn negative, and then recover around the end of 2015.
2.3
The UK labour market continued to improve and there was growth in wage rates. By
February 2015 unemployment had fallen to 5.6% from 6.9% a year earlier, with 1.84
million people aged 16 to 64 unemployed.
2.4
The Bank of England’s Monetary Policy Committee maintained interest rates at 0.5%
throughout 2014/15. The minutes of their meetings reiterated the view that challenges
facing the economy and the legacy of the financial crisis meant that increases in the
Bank Rate would be gradual and limited, and below average historical levels.
3.
Long Term Borrowing
3.1
The Council has no long-term debt. The strategy has been to remain debt-free and not
to borrow long-term monies to finance its capital spending, relying instead on usable
capital receipts, government grants and revenue contributions. Any decision to borrow
in the future will need to have regard to the treasury implications, including taking
account of the additional credit risk of holding both investments and borrowing.
4.
Investment Activity
4.1
The Department for Communities and Local Government’s (DCLG) Guidance on Local
Government Investments requires the Council to focus on security and liquidity, rather
than yield when undertaking its treasury activities
4.2
The table below gives Members an appreciation of the investment activity undertaken in
2014/15, showing the position at the start and end of the year, together with the
transactions during the year. The average investment return achieved for call accounts,
term deposits, certificates of deposits and covered bonds was 0.57% for the year. The
LAMIT pooled property fund realised an income return of 5.97%, giving an overall return
on all investments for the year of 1.62%.
84
Short term Investments
(call accounts, deposits and
CDs with banks & building
societies)
UK Government - DMADF
Money Market Funds
Pooled Funds
Covered Bonds
All investments
Balance
01/4/2014
Invested
Matured
Balance
31/3/2015
£000s
£000s
£000s
£000s
9,000
7,250
(12,000)
4,250
0
7,035
5,000
0
21,035
31,075
58,225
0
4,500
101,050
(31,075)
(60,250)
0
0
(103,325)
0
5,010
5,000
4,500
18,760
4.3
Security of the capital sum invested remained the Council’s main investment objective.
This has been maintained by following the Council’s counterparty policy as set out in its
Treasury Management Strategy Statement for 2014/15.
4.4
Counterparty credit quality was assessed and monitored with reference to credit ratings
(the Council’s minimum long-term counterparty rating is BBB+ across the rating
agencies Fitch, Standard & Poors and Moody’s); credit default swap prices, financial
statements, information on potential government support and reports in the quality
financial press.
5.
Credit Risk
Counterparty credit quality as measured by credit ratings is summerised below:
Date
Value
Weighted
Average
Credit Risk
Score
Value
Weighted
Average
Credit
Rating
Time
Weighted
Average
Credit Risk
Score
Time
Weighted
Average
Credit
Rating
31/03/2014
5.08
A+
5.97
A
30/06/2014
4.58
A+
5.68
A
31/09/2014
5.25
A+
6.15
A
31/12/2014
4.28
AA-
2.09
AA+
31/03/2015
3.37
AA
1.43
AAA
5.1
All investment counterparties are given a credit score. Weighted average scores are
then calculated for both value and time. The value weighted average reflects the credit
quality of investments compared to the size of the deposit. The time weighted average
reflects the credit quality of investments compared to the number of days to maturity of
the deposit.
5.2
Appendix 1 shows the different credit scores which apply to the long-term credit ratings
of an institution. In the Treasury Management Strategy 2014/15 the Council adopted a
voluntary measure of its exposure to credit risk by monitoring the value-weighted
85
average credit score of its investment portfolio. This is calculated by applying a score to
each investment (AAA=1, AA+=2, etc.) and taking the arithmetic average, weighted by
the size of each investment. The target credit score has been set at 6 which equates to
a long term rating of A (or equivalent).
5.3
The table shows how the scores and ratings have changed over the financial year. The
more investments the Council has with counterparties with higher credit ratings, the
lower the score will be. Over the year both scores have fallen indicating that the credit
rating on both a time weighted and a value weighted basis has improved.
5.4
The graphs at Appendix 2 shows the Council’s risk/return position at 31 March 2015 and
compares how the Council has performed in relation to other clients of the Council’s
treasury advisors, Arlingclose Limited. The graphs only cover the investments made
internally – i.e. the Council’s investment in the LAMIT pooled property fund is excluded
from the information. This is because the fund does not have a credit rating and it is not
for a defined period of time and the graphs use credit ratings, rate of return and period of
time to calculate the relative results.
6.
Counterparty Update
6.1
The European Parliament approved the Bank Recovery and Resolution Directive and
the Deposit Guarantee Scheme Directive in April 2014. The combined effect of this
legislation was to require regulators in member states to bail-in investors in a failing
institution before any public money can be injected, and to promote the deposits of
individuals and Small & Medium-sized Enterprises (SMEs) above those of public
authorities, large corporates and financial institutions.
6.2
Legislation therefore prevents governments from providing support to failing institutions
through a bail-out. This, together with the introduction of bail-ins and the preference
being given to large numbers of depositors other than local authorities, means that the
risks of making unsecured deposits in an institution rose relative to other investment
options.
The Council therefore looked to make, whenever possible, secured
investments and diversified alternatives such as covered bonds, non-bank investments
and pooled funds instead of unsecured bank and building society deposits.
6.3
In accordance with this strategy, the Council made two investments in covered bonds.
In October 2014 £2.25m was invested with the Leeds Building Society on a variable rate
basis, for 5 years (3 month LIBOR plus 0.4%), and a further £2.25m was invested with
the Yorkshire Building Society at a rate of 1.5% for 3.5years.
7.
Budgeted Income and Outturn
7.1
The updated income budget for 2014/15 anticipated £335,080 would be earned in
interest from an average balance of £24.4m at a rate of 1.37%. A total of £415,807 was
earned from investments over the year from an average balance of £25.675m at an
average rate of interest of 1.62%. This resulted in a favourable variance against the
updated budget of £80,727.
7.2
Investment balances were on average £1.3m higher than anticipated, and overall the
rate of interest earned was 0.25% higher than budget. However, the income return on
the LAMIT pooled property fund was significantly higher than budget earning 5.97% over
the year, producing an excellent return for the Council which was £43,000 above budget.
Other investments, including the covered bonds, contributed an additional £32,000 and
the higher investment balances a further £5,000.
8.
Compliance with Prudential Indicators
86
8.1
The Council confirms compliance with its Prudential Indicators for 2014/15 which were
set on 3 February 2014 as part of the Council’s Treasury Management Strategy
Statement.
8.2
Treasury Management Indicators
The Council measures and manages its exposures to treasury management risks using
the following indicators.
8.3
Interest Rate Exposures: This indicator is set to control the Council’s exposure to
interest rate risk. The upper limits on fixed and variable rate exposures, expressed as
the proportion of net principal borrowed (i.e. fixed rate debt net of fixed rate investments,
will be:
2014/15
2015/16
2016/17
Upper limit on fixed interest rate exposure
(100%)
(100%)
(100%)
Actual
Upper limit on variable interest rate
exposure
Actual
(100%)
(100%)
(100%)
(100%)
(100%)
8.4
As the Council’s investments exceed its borrowing, these calculations have resulted in a
negative figure. The purpose of the limit is to ensure that the Council is not exposed to
interest rate rises on any borrowing which could adversely impact the revenue budget.
Variable rate borrowing can be used to offset exposure to changes in short term rates on
investments. However, the Council did not entering into a borrowing during the year.
These limits therefore allowed maximum flexibility for fixed or variable rate investments
and investment decisions were ultimately be made on expectations of interest rate
movements as set out in the Strategy. Fixed rate investments and borrowings are those
where the rate of interest is fixed for the whole financial year. Instruments that mature
during the financial year are classed as variable rate
8.5
Maturity Structure of Borrowing:
This indicator is set to control the Council’s exposure to refinancing risk. The upper and
lower limits on the maturity structure of fixed rate borrowing were set as follows, however
only very limited borrowing was actually undertaken during the year for a period under
12 months.
Lower Limit
for 2014/15
%
0
Upper Limit
for 2014/15
%
100
12 months and within 24 months
0
100
24 months and within 5 years
0
100
5 years and within 10 years
0
100
10 years and above
0
100
Maturity structure of fixed rate borrowing
under 12 months
87
8.6
8.7
Principal Sums Invested for Periods Longer than 364 days: The purpose of this indicator
is to control the Council’s exposure to the risk of incurring losses by seeking early
repayment of its investments. The limits on the total principal sum invested to final
maturities beyond the period end will be:
2014/15
2015/16
2016/17
Limit on principal invested beyond year end
£10m
£7.5m
£5m
Actual
£4.5m
£4.5m
£4.5m
Security: The Council has adopted a voluntary measure of its exposure to credit risk by
monitoring the value-weighted average [credit rating] or [credit score] of its investment
portfolio. This is calculated by applying a score to each investment (AAA=1, AA+=2,
etc.) and taking the arithmetic average, weighted by the size of each investment.
Portfolio average credit score
8.8
Target
Actual
6.0
3.37
Liquidity: The Council has adopted a voluntary measure of its exposure to liquidity risk
by monitoring the amount of cash available to meet unexpected payments within a
rolling month period, without additional borrowing.
Total cash available within 3 months
Target
Actual
£3m
£5m
9.
Financial Implications and Risks
9.1
The financial impact of implementing the Council’s treasury strategy for 2014/15 has
been set out in this report.
10.
Sustainability – None as a direct consequence of this report.
11.
Equality and Diversity – None as a direct consequence of this report.
12.
Section 17 Crime and Disorder considerations – None as a direct consequence of
this report.
88
Appendix 1
Credit Score Analysis
Long-Term
Credit Rating
Score
AAA
1
AA+
2
AA
3
AA-
4
A+
5
A
6
A-
7
BBB+
8
BBB
9
BBB-
10
Not rated
11
BB
12
CCC
13
C
14
D
15
89
Appendix 2
Average Rate vs Credit Risk (valueweighted) - Client Type
LOW RISK
2.5%
Average Rate of Investments
HIGH
RETURN
2.0%
1.5%
1.0%
0.5%
0.0%
1
2
3
4
5
6
7
8
Average Credit Risk Score - Valued Weighted Average
English Non-Met Districts
North Norfolk Council - 31/03/2015
90
Average Rate vs Credit Risk (timeweighted) - Client Type
LOW RISK
2.5%
Average Rate of Investments
HIGH
RETURN
2.0%
1.5%
1.0%
0.5%
0.0%
1
2
3
4
5
6
7
8
Average Credit Risk Score - Time Weighted Average
English Non-Met Districts
North Norfolk Council - 31/03/2015
91
Agenda Item No_____12_______
ANNUAL REPORT 2014/15
Summary:
This report outlines the key elements of the Annual
Report 2014/15 to be published by July 2015 for
discussion and eventual approval and presents the key
contents of the report. The Annual Report will present
the delivery of the Annual Action Plan 2014/15 and
show achievement against targets.
Options considered:
Publish a text only version of the Annual Report.
Publish a version of the report suitable for a public
audience.
Conclusions:
The Annual Report 2014/15 concludes that North
Norfolk District Council delivered the Annual Action Plan
and delivered overwhelmingly improving performance
against performance indicators.
Recommendations:
1) That Cabinet note the contents of this report.
2) That Cabinet give authority to the Leader of the
Council and the Chief Executive to approve the final
public version of the report.
3) That Cabinet give authority to the Leader of the
Council and the Chief Executive to approve the
communications plan for the Annual Report
2014/15.
Reasons for
Recommendations:
To comply with the provisions of the Council
Performance Management Framework and local
government best practice.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
Cabinet Member(s) All
Ward(s) affected All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
92
1.1
The draft Annual Report 2014/15 is attached as Appendix XX. This
represents the culmination of the annual planning and reporting process
which ensures that we manage the performance of the Council in a robust
way. Publishing the Annual Report ensures that we comply with our
Performance Management Framework and presents information to the public
so they may assess the Council’s performance.
1.2
This Annual Report 2014/15 reports against the priorities as set out in
“Corporate Plan 2012-2015: small government, big society” and the activities
and targets set out in the Annual Action Plan 2014/15. The activities and
targets set for 2014/15 were built into the Service Plans for 2014/15.
1.3
As a key part of the Performance Management Framework the Annual Report
provides the opportunity to;
 Assess progress in achieving the objectives set out in the Corporate Plan,
 Assess the overall impact of our actions over the past year, and
 Assess the delivery of service plans.
2.
Managing performance – the process for producing the annual report
2.1
Heads of Service and Service Managers are continually monitoring delivery of
service plans and have provided an annual overview of key developments in
their service. These service plans can be viewed on the Performance and
Risk Management system which is accessible through the Intranet.
2.2
The Council’s performance in delivering the annual action plan and achieving
targets has been monitored on a regular basis by the Performance and Risk
Management Board and Cabinet and action taken to improve performance
where necessary.
2.3
The Performance and Risk Management Board will review the final draft of
the Annual Report and any comments from Overview and Scrutiny Committee
at their meeting in July 2015 prior to the Leader and Chief Executive signing
the document off for publication.
3.
Content of the Annual Report
3.1
The Annual Report will consist of three elements:
3.2
An overview for each of the five Corporate Plan Priorites;
 Jobs and the Local Economy
 Housing and Infrastructure
 Coast, Countryside and Built Heritage
 Localism
 Delivering the Vision
3.3
Financial summary (to be included in the final published version) – this will
include information on the Councils spend on revenue and capital for
2014/15, as will be reported to Cabinet, along with the source of funds for the
year.
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
93
3.4
An appendix containing a progress report for each activity in the Annual
Action Plan 2014/15.
3.5
An appendix showing performance against targets and/ or comparison to last
year – The results for all the key performance indicators over the past year.
3.6
Workforce profile statistics 2014/15 appendix (to be included in the final
published version) – we are required by statute to publish these statistics and
this is done through publishing them as an appendix to the Annual Report.
3.7
We are required by statute to publish our equalities objectives. This was done
in June 2013. The Annual Report includes the progress made in delivering
them. These equalities outcomes are identified throughout the Annual Report
by the use of a blue smiley face.
4.
Publishing
4.1
The Annual Report is published on the Council’s website.
4.2
We will not print hard copies except on request. Provision will be made to
make versions of the report available in alternative formats on request
4.3
There is no longer a statutory requirement to publish an Annual Report.
However, it is still considered to be best practice to do so and make the
information available to the public in a timely way. To this end there is a
recommendation that the Chief Executive in conjunction with the Leader of
the Council be given authority to approve the final version of the report for
publication as early as possible by July 2015 and they also be given authority
to approve a communications plan for presenting the annual report to the
public.
5.
Conclusion
5.1
The Annual Report process provides an opportunity to assess the progress in
delivering activities and achieving targets and provides the information
necessary to conclude that North Norfolk District Council delivered the Annual
Action Plan and delivered overwhelmingly improving performance against
performance indicators.
6.
Implications and Risks
6.1
Failure to implement a robust performance management framework including
an annual report that provides evidence of performance improvements,
identifies areas that require corrective action, acknowledges achievements
and builds on good practice could have a number of consequences. These
may include:
 Inaccurate or less effective decision-making
 Inappropriate resource allocations
 Reduced reputation arising from poor quality data or inaccuracy
 Adverse comments from internal and external auditors
7.
Financial Implications and Risks
7.1
There are no direct financial implications associated with this report.
However, there are performance measures and targets, and activities
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
94
included in the annual report, that are specifically related to finance. In
addition, corrective action may have financial implications that would need to
be made clear at the time any action is agreed.
8.
Sustainability
8.1
There are considerable actions being taken as a part of the delivery of
services both to promote sustainable activity and to ensure that the Council
delivers services in a sustainable way. In addition, the Annual Report itself
will only be distributed in electronic form to reduce the need for printing.
9.
Equality and Diversity
9.1
The workforce profile statistics published as an appendix to the Annual
Report is a key tool demonstrating that the Council fulfills its equalities
responsibilities as an employer or identify areas where action is needed.
9.2
The Annual Report has integrated within it the reporting of the delivery of
equalities outcomes across the Council.
10.
Section 17 Crime and Disorder considerations
10.1
There are no direct Section 17 Crime and Disorder implications from this
report.
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
95
Agenda Item No____13________
TAXI FEES
Summary:
This report outlines the change in fees to the Hackney
Carriage and Private Hire Vehicle application fee due to
renewal in the taxi test station contract.
This change was agreed by Sheila Oxtoby, Chief
Executive under delegated authority during the election
period due to the contract end date falling in a period
where Cabinet was not due to meet.
In line with the advice from the Monitoring Officer this
report seeks to confirm this decision at the earliest
opportunity.
Options considered:

To leave the fees unchanged; this would cost the
council as the taxi test fee will increase by a small
amount following the new tender process.

To include the charge of each of the three garages
into the application fee; this would be complex both
for the trade to know accurate prices and for officers
to administer and would increase the cost of the
process.

To remove the vehicle test fee from the application
fee; this would require the garages charging
customer directly which causes them no concerns
and has a zero cost to the authority and simplifies
the administrative process.
Conclusions:
To remove the vehicle taxi test fee from the hackney
carriage and private hire vehicle application fee and for
the garages to charge the customer directly.
Recommendations:
This is a resolution for Cabinet to confirm as the
decision was made under delegated authority by
Sheila Oxtoby during the election period.
To remove the vehicle taxi test fee from the hackney
carriage and private hire vehicle application fee and
for the garages to charge the customer directly.
Reasons for
Recommendations:
To agree the change to the published fee for the
hackney carriage or private hire vehicle application in
accordance with the Councils required process.
96
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not
published elsewhere)
N/A
Cabinet Member(s)
Ward(s) affected
All
Contact Officer, telephone number and email:
Gemma Faircloth, 01263 516139, gemma.faircloth@north-norfolk.gov.uk
1.
Introduction
1.1
This report outlines the change in fees to the Hackney Carriage and Private
Hire Vehicle application fee due to renewal in the taxi test station contract.
1.2
This change was agreed by Sheila Oxtoby, Chief Executive under delegated
authority (see appendix 1) during the election period due to the contract end
date falling in a period where Cabinet was not due to meet.
1.3
In line with the advice from the Monitoring Officer this report seeks to confirm
this decision at the earliest opportunity.
2.
Background
2.1
The current contract for the taxi test station used for ensuring the
roadworthiness, safety and quality of all licenced hackney carriages and
private hire vehicles in North Norfolk was due for renewal from the 1st May
2015.
2.2
The taxi trade have previously requested that there be more choice with
regard to the number of taxi test stations to provide the test for their vehicles,
as the main contract period came to an end it was sensible to review how we
currently do this.
2.3
The formal tender process identified three taxi test stations suitable to carry
out this function on behalf of the council rather than the single station
currently available. The tender was designed to seek a number of garages in
suitable locations to offer more choice to the taxi trade as this is in line with
requests from the taxi trade.
2.4
The tender process led to slight differences in the taxi test charge made by
each of the test stations appointed. It will be for the drivers or operators to
decide which test centre to use based on price and geographical proximity.
2.5
The current vehicle application fee, which includes the taxi test, needs to be
amended to reflect the charges associated with these changes.
97
2.6
The simplest way of managing these changes is to decouple the test fees
from the application fee with the individual test stations charging their fee
directly to the “customer”.
2.7
To keep the vehicle test fee within the application fee will make the process
too complex with potentially three different charges to administer. Additionally
the fees published would still require amendment and would require
potentially three different fees.
2.8
The proposed amendment to remove the vehicle test fee entirely has a zero
cost impact to the council on that we were recharged for the tests by the
contract holder. Indeed it is likely to simplify the process for both the trade
and administratively.
4.
Conclusion
4.1
To remove the vehicle taxi test fee from the hackney carriage and private hire
vehicle application fee and for the garages to charge the customer directly.
5.
Implications and Risks
5.1
There are no implications and risks arising from this report.
6.
Financial Implications and Risks
6.1
There are no financial implications arising from this report other than those
detailed above.
7.
Sustainability
7.1
Not Applicable to this report
8.
Equality and Diversity
8.1
There are no equality and diversity implications associated with this report.
9.
Section 17 Crime and Disorder considerations
9.1
There are no implications associated with this report.
98
8th June 2015
Cabinet
Agenda Item No______14_______
Proposed Cromer Community Sports Pitch facility – Summary of consultation
responses
Summary:
This report summarises the comments received from the
recent public consultation on the potential of four shortlisted sites adjoining the boundary of Cromer to
accommodate a new community sports pitch facility to
include facilities for future use by Cromer Town Football
Club and Cromer Youth Football Club, and recommends
that the Council seeks to open discussions with the
owner of the former Golf Practice Ground, off Overstrand
Road, with the objective of acquiring the site for the new
community sports pitch facility.
Conclusions:
The recent public consultation process has indicated
support for the proposed new Cromer community sports
pitch facility being accommodated on the former Golf
Practice Ground site, off Overstrand Road in the town.
On the basis of the consultation responses it is
recommended that the Council seeks to open
discussions with the owner of the former Golf Practice
Ground, off Overstrand Road, with the objective of
acquiring the site for the new community sports pitch
facility.
Recommendations:
1. That Cabinet notes the comments received
through the public consultation process on the
four shortlisted sites identified for consideration
in accommodating the proposed Cromer
community sports pitch facility; and
2. The Cabinet authorises officers to open
discussions with the owner of the former golf
practice ground site, off Overstrand Road
regarding
its
possible
acquisition
to
accommodate the proposed community sports
pitch facility
Cabinet member(s):
Cromer Town, Suffield Park, Roughton,
Poppyland, The Runtons
99
8th June 2015
Cabinet
Cllr Tom FitzPatrick
Contact Officer, telephone number, and
e-mail:
Steve Blatch, Corporate Director
Steve.blatch@north-norfolk.gov.uk
Tel:- 01263 516232
100
8th June 2015
Cabinet
1.0
Summary:-
1.1
The District Council wishes to support local sports clubs, particularly Cromer Youth
Football Club, develop new sports pitches and clubhouse facilities so as to meet demand
for such facilities and promote increased participation in sport.
1.2
As part of wider consideration which the Council has given to the future use of the
Cabbell Park site, particularly the ability of part of Cabbell Park to accommodate a new
medical centre facility for the Cromer Group Practice (as per a decision of Cabinet taken
in April 2014); the Council sees the potential of supporting the development of shared
community sports facilities on a site on the edge of Cromer. Such a facility could include
new football and other outdoor sports pitches together with clubhouse facilities and
parking which could meet the needs of Cromer Town Football Club and the Cromer
Youth Football Club and potentially other outdoor sports clubs in the future.
1.3
The Cabinet therefore agreed back in February of this year that the Council would invite
public comment on the potential of a shortlist of four sites adjoining or close to the
settlement boundary of Cromer to accommodate a new community sports pitch
development. The public consultation process was conducted during March / April
during which time more than 150 comments were received by the Council.
1.4
The consultation process has indicated significant support for the proposed community
sports pitch development to be accommodated on the former golf practice ground site off
Overstrand Road; and Cabinet endorsement is therefore sought for officers to open
discussions with the owner of this land with the objective of securing the site for future
community sports purposes.
1.5
Separate to the consideration of possible sites for the proposed community sports pitch
facility, the District Council understands the public interest which exists around the future
use of the Cabbell Park site. The Council is therefore pleased that the Cromer Group
Practice has now been able to place its proposals for a new surgery facility in the public
domain for comment in advance of the Practice submitting a detailed planning
application for the proposed development, which in due course will be the subject of
further public consultation through the statutory planning process. Further, the Council
understands the need to invite public comment on its proposals to lift the Open Space
restriction which exists in respect of the Cabbell Park site and has recently invited
comments on this proposal, details of which will be the subject of a further report to
Cabinet in September 2015. In the meantime, the Council is undertaking groundworks
at the Cabbell Park site to facilitate the relocation of the existing football pitch within the
site in a westerly direction.
2.0
Background:-
2.1
At the meeting of Cabinet held on 2nd February 2015, Cabinet considered and endorsed
a report which proposed that four sites adjoining the built up area of Cromer be the
subject of public consultation as to their potential to accommodate a new community
sports pitch development to serve the town.
2.2
A public consultation exercise was therefore staged during March / April inviting
comments on the four shortlisted sites. The consultation process involved:

details of the public consultation process being promoted through the local media
through a press release issued by the Council;
erection of site notices on / adjoining each of the four sites;
101
8th June 2015
Cabinet





display of notices on public noticeboards close to each of the four sites;
details of the consultation being provided to the four District Councillors for
Cromer and Suffield Park, as well as the local members for the Poppyland,
Roughton and The Runtons wards;
letters sent to local parish councils (Cromer Town Council and Northrepps,
Overstrand, Roughton and The Runtons parish councils);
dedicated page on the Council’s website providing details of the four sites and an
on-line comments box
production of consultation leaflets which were initially available at the Council’s
Cromer Headquarters, North Norfolk Information Centre and Cromer Town
Council offices and subsequently hand delivered to properties along Roughton
Road and in the Compit Hills area by local residents.
3.0
Responses received through the consultation process:-
3.1
The consultation process generated 151 individual responses, together with responses
submitted on behalf of Cromer Town Council, Roughton Parish Council and the Cromer
Town Football Club. There was also a response and petition received from the owners
and customers of the Raptor House Boarding Cattery business on Metton Road,
Cromer. The responses received can be viewed in full on the Council’s website via the
following link – www.northnorfolk.org/cromersportspitch.
3.2
Key comments made through the consultation process about each site are as follows:
Site 1 - Land to the west of Roughton Road, south of Compit Hills
Site considered to be too far out of town, with poor access by foot and cycle from the
main residential areas of Cromer and would increase volumes of traffic along the
increasingly congested Roughton Road. Site immediately adjoins residential properties
to north and east and the Raptor House Boarding Cattery to the west, with a number of
respondents expressing concern about noise and floodlighting at the proposed sports
facility impacting negatively on their amenity and the wider rural landscape.

Site 2 – Land east of Roughton Road
Site considered to be too far out of town, with poor access by foot and cycle from the
main residential areas of Cromer and would increase volumes of traffic along the
increasingly congested Roughton Road. Site occupies very open location, with a
number of respondents expressing concern about development and floodlighting
impacting negatively on the wider rural landscape / Area of Outstanding Natural Beauty
through extending “built” development into area of open countryside.

Site 3 – Land known as the former Golf Practice Ground, off Overstrand
Road
Significant support was expressed for this site accommodating the proposed community
sports development based on the fact that it was within the boundary of Cromer parish;
was easily accessible from nearby residential areas by foot, bike and public transport, as
well as adjoining a main feeder road into Cromer; was not in any formal use – ie
agriculture and was essentially “abandoned”; was relatively contained in the landscape
and sheltered. Some respondents who lived close to the site commented that they
hoped the existing belt of trees along Northrepps Road would be retained to protect
residential amenity.
102
8th June 2015
Cabinet

Site 4 – Land off The Avenue to the south of the Cromer Karttrack
Site considered to be too far out of town, with poor access by foot and cycle from the
main residential areas of Cromer and would increase volumes of traffic along The
Avenues which is very narrow. Some respondents commented that development of this
site for a community sports facility would impact negatively on residents of the new
Christopher’s Close development.
3.3
There was significant opposition expressed to Sites 1 and 2, particularly with regards
issues of traffic generation and the volume of traffic already using the Roughton Road,
as well as the relationship of Site 1 to adjoining residential development. There was less
opposition expressed in respect of Site 4, but again the principal grounds of objection to
this site related to poor highway access.
3.4
Significant support was expressed for Site 3, particularly as it was within the boundaries
of the Cromer Parish and was easily accessible via the existing Overstrand Road, with
pavements / footpaths from many residential areas of town. On the basis of the
consultation process, there appears to be clear public support for the former golf practice
ground site to accommodate the proposed community sports facility.
4.0
Next steps:-
4.1
Based upon the community support expressed for the former golf practice ground site to
accommodate the proposed community sports pitch facility, authority is sought from
Cabinet for officers to open discussions with the land owner with the objective of
securing the land for future community sports use, with further reports being prepared
and presented to Cabinet in due course allowing consideration of the financial issues
involved in acquiring and developing the site.
5.0
Financial Implications and Risks
5.1
There are no direct financial issues raised by this report. Future reports will be prepared
and presented to Cabinet once contact has been made with the landowner and costs of
acquiring and developing the site are known.
5.2
If it is established that the golf practice ground site is not able to accommodate the
proposed community sports pitch facility for any reason (eg availability, technical or cost
reasons) within a reasonable timeframe it will be necessary for the Council to consider
alternative sites upon which the community sports facility can be developed in order to
meet the need which exists for such facilities within the Cromer area.
6.0
Sustainability
6.1
The recommendations made in this report do not in themselves raise issues of
sustainability. The site appraisal and public consultation process has identified a
preferred site for the community sports pitch facility which is well-related to the town of
Cromer: is accessible by foot, cycle or public transport, as well as personal transport:
and is well-contained within the landscape. Consideration of sustainable development
issues will be given in the development of detailed proposals for the site.
7.0
Equality and Diversity
7.1
There are no direct equality or diversity issues raised by this report, but the Council’s
wish to support the provision of new community sports pitches in Cromer recognises the
longstanding deficit of facilities for youth football and other outdoor sports in and around
the town. Any facilities provided will be developed in accordance with advice from the
103
8th June 2015
Cabinet
Football Association, other sports and grant funding bodies and will need to be
accessible to all sections of the community.
8.0
Section 17 Crime and Disorder considerations
8.1
This report does not raise any issues directly relating to Crime and Disorder; although it
is recognised that the provision of good quality and accessible sports facilities are
positive factors in community cohesion and well-being.
104