Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
28 May 2014
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 9th June 2014 at 10.00 a.m.
At the discretion of the Chairman, a short break will be taken after the meeting has been running
for approximately one and a half hours.
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
Sheila Oxtoby
Chief Executive
To: Mr B Cabbell-Manners, Mr T FitzPatrick, Mrs A Fitch-Tillett, Mr J Lee, Mr W Northam,
Mr R Oliver, Mr G Williams, Mr R Wright
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 12
May 2014.
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.
MEMBER 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.
PLANNING POLICY AND BUILT HERITAGE WORKING PARTY
(Planning Policy and Built Heritage Working Party Agenda – p.9)
At the meeting of the Planning Policy and Built Heritage Working Party held on 19th May
2014, the following recommendation was made to Cabinet:
RECOMMENDATION to Cabinet:
That the Land Supply Statement is published
10.
2013/14 OUTTURN REPORT
(Page 6)
(Appendix A – p. 22) (Appendix B – p.23) (Appendix C – p.50) (Appendix D – p.53)
(Appendix E – p.59)
Summary:
This report presents the outturn position for the revenue
account and capital programme for the 2013/14 financial
year. Details are included within the report of the more
significant year-end variances compared to the current
budget for 2013/14. The report also makes
recommendations for contributions to earmarked
reserves 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 2013/14 financial year. Whilst there are options
available for earmarking the underspend in the year or
transferring the underspend to the general reserve, 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 2014 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 general fund balance is still
forecast to be below the recommended balance by 31
March 2015 and therefore this report is recommending
that the surplus is allocated to the general reserve to
mitigate this. The position as reported will be used to
inform the production of the statutory accounts.
Recommendations:
Members are asked to consider the report and
recommend the following to Full Council:
a) The final accounts position for the general fund
revenue account for 2013/14;
b) The transfers to and from reserves as detailed
within the report (and appendix C) along with the
corresponding updates to the 2014/15 budget;
c) Transfer the surplus of £119,011 to the general
reserve;
d) The financing of the 2013/14 capital programme
as detailed within the report and at Appendix D;
e) The balance on the general reserve of £1,745,452
at 31 March 2014 and forecast balance of £1,496,220
at 31 March 2015;
f) The updated capital programme for 2014/15 to
2015/16 and the associated financing of the
schemes as outlined within the report and detailed
at Appendix E;
g) A capital budget of £30,000 for replacement
hardware storage as detailed within 7.2 of the
report.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2013/14 that will be used to
produced the statutory accounts for 2013/14. 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, NNDR3 return
Cabinet Member(s): Cllr
Wyndham Northam
Ward(s) affected All
Contact Officer, telephone number and email: Karen Sly, 01263 516243,
Karen.sly@north-norfolk.gov.uk
11.
BANKING TENDER
(Page 65)
Summary:
This report informs members of the progress to date in
relation to the procurement exercise to obtain a new
banking services provider. The Council is part of a
Norfolk wide procurement process with all the Norfolk
Districts, along with Norfolk County Council and the
Police. The current timetable allows for an award date
during the 2014 summer. In order that the timescales
can be met this report is recommending delegation to
officers for the award of the contract.
Options considered:
None
Conclusions:
The joint banking tender process is in progress, in order
that timescales can be met, this report recommends
delegation to officers for the award of the contract.
Recommendations:
It is recommended that:
1) Cabinet delegate the decision to award a
contract for banking services to the Head of
Finance in consultation with the portfolio
holder for finance.
Reasons for
Recommendations:
To ensure that the procurement timescales for award of
banking contract can be met.
Cabinet Member(s)
Ward(s) affected
Cllr Wyndham Northam
All
Contact Officer, telephone number and email:
Karen Sly, 01263 516243 karen.sly@north-norfolk.gov.uk
12.
DEBT RECOVERY ANNUAL REPORT
(Page 68)
(Appendix F –p.74) (Appendix G – p.79) (Appendix H – p.81)
Summary:
This is an annual report detailing the council‟s collection
performance and debt management arrangements for
2013/14
The report includes a:
 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
Recommendations:
Members are asked 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.
Cabinet member(s):
All
Contact Officer, telephone
number, and e-mail:
13.
All
All
Louise Wolsey 01263 516081
louise.wolsey@north-norfolk.gov.uk
TREASURY MANAGEMENT ANNUAL REPORT
(Page 84)
(Appendix J – p.89) (Appendix K – p.90) (Appendix L – p.91)
Summary:
Options Considered:
Conclusions:
COUNCIL
DECISION
Recommendations:
Reasons for
Recommendation:
This report sets out the Treasury Management activities
actually undertaken during 2013/14 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 2013/14 are approved.
Approval by Council demonstrates compliance with the
Codes.
Cabinet Member(s)
Ward(s) affected: All
Cllr W Northam
Contact Officer, telephone number and email: Tony Brown, 01263 516126,
tony.brown@north-norfolk.gov.uk
14.
ANNUAL REPORT 2013/14
(Page 95)
(Appendix M – ELECTRONIC)
Summary:
This report outlines the key elements of the Annual
Report 2013/14 to be published by July 2014 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 2013/14 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 2013/14 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
2013/14.
Reasons for
Recommendations:
Cabinet
Member(s) All
To comply with the provisions of the Council
Performance Management Framework and local
government best practice.
Ward(s) affected All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
15.
CAR PARKING MANAGEMENT AND PRICING
(Page 99)
Summary:
This report has been prepared at the request of Cabinet.
Officers have been asked to review the current charging
structure based on a Cabinet request to help support
local businesses. The report considers the current
pricing arrangements for the Council‟s car parks and
makes recommendations for changes for the 2014/15
financial year.
Options considered:
The following options are considered within the paper;
1. Make no changes to the current pricing structure
2. Remove the evening charges from 6:00 pm
3. Allow £5 (24hr) pay and display (P&D) tickets to be
transferable to other Council owned P&D car parks
4. Consider free parking options, including free parking
between the hours of 9:00 am and 9:30 am
Conclusions:
Car parking income for 2013/14 was £2.2m and
represents a significant income stream for the Council.
Car parking is key to the function of many of our towns
and villages whether their primary use is for business or
leisure pursuits. Regular reviews of car parking are
important to ensure the Council is meeting the needs of
all those people who use our car parks.
There are a number of changes that could be made to
the pricing structure to better support local residents,
local businesses and visitors and these are discussed in
more detail within the main report.
Recommendations:
Reasons for
Recommendations:
1. Cabinet propose the following;
a) Removal of the evening charge from 6:00 pm
b) Allowing £5 (24hr) pay and display tickets to
be transferable to other P&D car parks
c) To delegate authority to the Chief Executive
Officer, in consultation with the Portfolio
Holder for Assets and the Section 151
Officer,
to agree the free parking
arrangements
d) Recommend that Full Council approve the
budget implications detailed within Section 6
To eliminate confusion over evening charges, to provide
greater flexibility for 24 hour tickets and to encourage
people to „pop and shop‟ during what is generally
deemed a slow trading period. These changes will
better support local residents, local businesses and
visitors.
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;
Cllr Rhodri Oliver
All
Contact Officer, telephone number and email: Duncan Ellis (Head of Assets and
Leisure), 01263 516330, duncan.ellis@north-norfolk.gov.uk
16.
WEB INFRASTRUCTURE UPGRADE
(Page 105)
Summary:
This report is brought to secure approval for the
recruitment of an additional post within the Applications
Development Team of the IT Department as previously
identified
within
the
Business
Transformation
Programme Plan. It also seeks approval for the release
of funding to support the delivery of the new web
technology necessary to support the Business
Transformation Programme.
Options considered:
A number of options have been considered:
 Absorb the additional workload within the existing
Applications Team.
 Outsourcing provision of the new web technology
platform.
 Recruitment to an additional post within the
Applications Support team.
 Proprietary and Open Source software.
Conclusions:
There will be a significant additional workload
associated with establishing the new Web Technology
platform and integrating it with existing systems.
Without
additional
capacity
other
Business
Transformation work-streams would not be able to be
progressed.
Outsourcing the development, deployment and
integration of the web technology would require
additional allocation from the Business Transformation
programme budget as the cost would exceed existing
planned funding.
There is a requirement to develop skills in other
members of the IT team to ensure capacity and service
resilience. This will be facilitated by ensuring that the
proposed new post-holder has the appropriate skills and
experience to act as the technical lead on the new
technology and mentoring other members of IT.
In order to allow the transformation of the web
technology to commence as soon as practicable it will
be necessary to engage third party expert support which
will require funding.
To provide the infrastructure improvements to support
the new web technology it will be necessary to procure
hardware and software platforms compatible with the
website technology.
The Open Source platform “Drupal” will meet the
Council‟s current and foreseeable future needs.
Recommendations:
1) That Cabinet approves the permanent
establishment of the previously identified post
within the Applications Development team of the IT
section at a cost of approximately £37,000 to be
funded as outlined in the report.
Drafting note for pre cabinet: the post is currently being
evaluated but is anticipated that it will not exceed this
figure. The cost includes salary plus on-costs.
2) That Cabinet approves funding from the Invest to
Save Reserve of £37,500 to fund the one off
engagement of third party technical expertise and
the procurement of associated IT infrastructure
components.
3) That Cabinet delegates authority to the relevant
Corporate Director in consultation with the s151
Officer to procure the goods and services required
to implement the new web technology.
Reasons for
Recommendations:
To provide the capacity skills and technology required to
commence the deployment of new web technology
which will support the delivery of the wider
transformation agenda.
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
Cllr T Fitzpatrick
Cllr R Oliver
All
Contact Officer, telephone number and email:
Sean Kelly, 01263 516276, sean.kelly@north-norfolk.gov.uk
17.
DISPOSAL OF COUNCIL LAND
(Page 111)
(Appendix N – p. 118) (Appendix O – p.120) (Appendix P – p.139)
Summary:
This report seeks approval to enter into an options
agreement to dispose of five Council owned sites to
Broadland St Benedicts, a wholly owned subsidiary of
Broadland Housing Association.
Options considered:
Three options were considered:
Option 1 – not to agree to dispose of the sites to
Broadland St Benedicts, this option is not recommended
as it would result in the loss of a capital receipt and not
promote the delivery of new homes including homes for
affordable rent, intermediate sale and open market sale.
Option 2 – to dispose of all six sites. This option is not
recommended as one site is considered to have a high
community asset value.
Option 3 – to dispose of the five retained housing sites.
This option is recommended as it will result in a capital
receipt of up to £1,030,000 and will assist with the delivery
of new homes. All the sites will be developed through the
Council‟s Exception Housing Scheme and will result in
new housing to meet the local housing need.
Conclusions:
Broadland St Benedicts‟ formal request is to purchase six
Council owned sites to provide new affordable and market
homes. The market dwellings are being provided in order
to cross subsidise the delivery of the affordable dwellings.
Broadland St Benedicts intend to undertake the
development of the sites and sell the completed affordable
dwellings to Broadland Housing Association, whilst the
market dwellings would be sold on the open market.
Option 3 is the recommended option and is to proceed
with an option agreement to dispose of five Council owned
sites to Broadland St Benedicts.
The five Retained Housing Sites are all within the
Countryside Policy Area and would be developed as
Exception Housing Schemes to address local housing
need.
Sale of the five sites would generate a capital receipt of up
to £1,030,000, although the exact amount will depend on
the number of sites which Broadland St Benedicts chooses
to purchase and the number of affordable and market
dwellings delivered on each site.
Recommendations:
It is recommended that:
1. An options agreement for the five retained
housing sites is completed between the
Council and Broadland St Benedicts on the
terms set out in their letter dated 29 April 2014
and the terms contained in this report.
2. The Head of Assets and Leisure is delegated to
approve the sale of individual sites by private
treaty in accordance with the options
agreement.
Reasons for
Recommendations:
A) To increase the provision of housing, including
affordable housing across the district which
supports the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Disposal, Investment and Acquisition Policy, Asset Management Plan
Cabinet Member(s)
All
Ward(s) affected
Contact Officer, telephone number and email: Nicola Turner, 01263 516222,
nicola.turner@north-norfolk.gov.uk
18.
LOCAL INVESTMENT STRATEGY- REQUEST FOR LOAN FROM BROADLAND
HOUSING ASSOCIATION
(Page 140)
(Appendix Q – p. 151) (Appendix R – p. 152) (Appendix S – p. 153)
(Exempt Appendix T – p. 154) (Exempt Appendix U – p.157)
(Exempt Appendix V – p.167) (Exempt Appendix X – p.176)
Summary:
In September 2013 Cabinet approved the Local
Investment Strategy to provide loans to Registered
Providers (and where needed their wholly owned
subsidiaries) to support the delivery of new housing
across the district.
Following this decision the
availability of the loan fund was advertised and a formal
request for a loan was received from Broadland Housing
Association. Broadland Housing Association has
requested a loan of £3.5m to be paid in 3 tranches to be
repaid 10 years after the payment of the final tranche.
In addition they have requested a loan of £0.75m which
will be for a period of up to 3 years is paid to their wholly
owned subsidiary Broadland St Benedicts, this loan will
be repaid to allow the final tranche of the loan to
Broadland Housing Association to be paid. This report
considers this request and recommends that this loan
request is approved.
Options considered:
Two options were considered:
Option 1 – to recommend that the loan was not
approved, this option was discounted as the application
has satisfactorily passed the due diligence process and
meets the requirements of a loan set out in the agreed
loan process.
Option 2 – to recommend the loan was approved. This
option is recommended as the application meets the
requirements of a loan set out in the agreed loan
process. Whilst the loan requested will commit all the
funding that is currently available for the provision of
loans, no other loan requests have been received. It is
considered appropriate to commit the full funding
currently available.
Conclusions:
Following the approval in September 2013 of the
Council‟s Local Investment Strategy – Loans to
Registered Providers, the Council has received a formal
bid from Broadland Housing Association for a loan. The
bid requests a loan of £3.5m is provided to Broadland
Housing Association and that a loan of £0.75m is
provided to their wholly owned subsidiary Broadland St
Benedicts, which is repaid in order for the final tranche
of the loan to Broadland Housing Association to be paid.
The bid has been considered against the criteria agreed
in September 2013 and meets all the Council‟s
requirements. The due diligence process carried out by
Arlingclose concludes that there is some risk in
providing a loan to Broadland Housing Association, but
there is a risk in all investments. Arlingclose support the
provision of a loan to Broadland Housing Association
and have made two recommendations which require a
minimum of 110% security for the loan and a regular
monitoring and reporting requirement within the loan
agreements. Whilst there is a risk of providing a loan,
this can be satisfactorily mitigated against and the
benefits of providing a loan in terms of the number of
additional dwellings it will provide and the interest
payments the Council will receive on the loan outweigh
the inherent risk.
Recommendations:
It is recommended that delegated authority is given
to the Head of Finance and the Portfolio Holder to
approve the loan request from Broadland Housing
Association to provide a loan of £3.5m to Broadland
Housing Association and £0.75m to Broadland St
Benedicts which will be repaid to allow the final
tranche of the loan to Broadland Housing
Association to be paid, subject to:
3. The 3.5m available in the capital programme
being ring fenced for the provision of the
agreed loans to Broadland Housing
Association and Broadland St Benedicts.
4. The completion of loan agreements between
the Council and Broadland Housing
Association and Broadland St Benedicts in
advance of any loan payments being lent.
5. The required level of security for the loan
being provided as set out in this report being
provided immediately prior to the loan
tranche payments being lent.
6. Capital receipts from the repayments of
principal (which shall be on an Equal
Instalment of Principal basis) are applied to
finance the Capital Financing Requirement.
Reasons for
Recommendations:
To increase the provision of housing, including
affordable housing across the district which supports
the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Cabinet paper: Local Investment Strategy – Provision of loans to Registered
Providers. 9 September 2013
Cabinet Member(s)
Ward(s) affected All
Contact Officer, telephone number and email: Nicola Turner, 01263 516222,
nicola.turner@north-norfolk.gov.uk
Malcolm Fry, 01263 516037, Malcolm.fry@north-norfolk.gov.uk
19.
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.”
20.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 12 May 2014 at the Council
Offices, Holt Road, Cromer at 10.00am.
Mrs A Fitch-Tillett
Mr T FitzPatrick
Mr J Lee
Members Present:
Mr R Oliver
Mr W Northam
Mr G Williams
Mr R Wright
Also attending:
Mrs A Claussen-Reynolds
Mr P W High
Ms B Palmer
Officers in
Attendance:
1.
Mr R Reynolds
Mr B Smith
Mr N Smith
The Chief Executive, the Corporate Director (NB), the Corporate
Director (SB), the Head of Finance, and the Democratic Services team
Leader
APOLOGIES FOR ABSENCE
None
2.
MINUTES
The Leader invited the Portfolio Holder for Finance to speak about an amendment to
the minutes of the previous meeting. Mr Northam advised members that Minute 119
‘Rate Relief Policy’ had recorded a recommendation of approval by Council. Since
this meeting, additional advice had been received which confirmed that the Rate
Relief Policy was in fact an Executive function. The minute would therefore be
corrected to confirm Cabinet’s approval of the policy. Subject to this amendment, the
minutes of the meeting held on 14 April 2014 were confirmed as a correct record and
signed by the Chairman.
3.
PUBLIC QUESTIONS
None received
4.
ITEMS OF URGENT BUSINESS
None received
Cabinet
1
12 May 2014
5.
DECLARATIONS OF INTEREST
None
6.
CONSIDERATION OF ANY MATTER REFERRED TO THE CABINET BY THE
OVERVIEW AND SCRUTINY COMMITTEE OR COUNCIL FOR
RECONSIDERATION
None
7.
CONSIDERATION OF REPORTS FROM THE OVERVIEW AND SCRUTINY
COMMITTEE
None
8.
ADOPTION OF EGMERE LOCAL DEVELOPMENT ORDER
The Portfolio Holder for Economic Development, Mr R Wright introduced this item.
He explained that the report outlined the further work undertaken to develop
proposals for a Local Development Order (LDO) at Egmere .He said that the LDO
would promote a positive environment for inward investment by clustering
development and promoting skills amongst local people along the Fakenham/Wells
corridor.
Mr R Reynolds, local member for Fakenham North, said that he was pleased to see
the proposals come to fruition.
Mr T FitzPatrick, ward member for Walsingham said that there had been a lot of
consultation with local residents who were supportive of the proposals. He added that
they would like to see a considerate building scheme and the possible re-siting of the
war memorial. He concluded by saying the Council would continue to press for a
reduction in the speed limit.
It was proposed by Mr R Wright, seconded by Mr T FitzPatrick and
RESOLVED to
1. Note the further work undertaken to develop the proposal to establish a Local
Development Order at Egmere in response to comments received during the
public consultation on the proposal; the further technical surveys prepared as an
evidence base for the Order and the Screening Opinion completed in respect of
the Order.
2. Agree the revised boundaries of the Local Development Order and land uses /
forms of development proposed within the designated area and confirm the
principal points of access into areas of land within the area covered by the Local
Development Order designation.
3. Agree the documentation prepared in support of the Egmere Local Development
Order – ie the Order and Schedule of Development, Design Guide and Landscape
Plan; and
To recommend to Council:
That the Egmere Local Development Order be adopted.
Cabinet
2
12 May 2014
Reasons for the decision:
To progress with the Local Development Order so as to accommodate investment by
businesses associated with the development and operation of offshore wind
developments off the North Norfolk coast.
9.
NORTH NORFOLK ASSET MANAGEMENT PLAN
Mr R Oliver, Portfolio Holder for corporate assets introduced this item. He explained
that the Asset Management Plan 2014/15 to 2016/17 outlined the strategic
framework within which the Council managed its property assets and explained how
the Council assessed the condition, sufficiency and suitability of its properties. He
drew Members attention to the commitment to continue the improvement works to the
Council’s car parks.
It was proposed by Mr R Oliver, seconded by Mr W Northam and
RESOLVED to recommend to Council:
1. That the Asset Management Plan be approved as the basis for the strategic
framework for asset management at North Norfolk District Council, including
implementation of the Action Plan.
2. That a capital budget of £110,000 is approved to continue the improvement
works to the Council’s car parks.
Reasons for the Decision:
To ensure that the Council has a strategic framework in place for the Council to
manage its property assets and to enable the Council to assess the condition,
sufficiency and suitability of its properties.
10.
NORTH NORFOLK BIG SOCIETY FUND
Before inviting the Portfolio Holder to introduce the item, the Leader informed
members that the County Council was considering proposals to clawback the second
homes council tax income that currently came to the District Council. He said that this
amounted to over £900k and was unacceptable. An urgent meeting had been
requested between the Chief Executives and Leaders of the district councils and
Norfolk County Council to discuss the matter.
Mr J Lee, Portfolio Holder for Localism, then introduced the item. He explained that
the report provided a review of the North Norfolk Big Society Fund during its second
year of operation. He informed members that the decision to bring the administration
of the Fund in-house had been successful and would continue for the coming year.
He thanked the Health and Communities Officer and the Growth and Communities
Manager for their hard work and the Panel for their continued support.
The Chairman invited members to speak:
1. Mrs A Fitch-Tillett said that it would be a disaster if the County Council withdrew
the second homes money from the District Council as the Big Society Fund was
hugely beneficial to local communities.
2. Mr P Terrington, local member for Wells, agreed. He said that it had made a
huge difference to the town and that it was fitting that an organisation such as
Cabinet
3
12 May 2014
Homes for Wells had been able to use second homes money to provide
affordable homes for local people.
3. Mr N Smith spoke about the funding Erpingham had received for a multi-use
games area (MUGA). It had taken 12 years to finish the project but momentum
had been achieved when Big Society Funding was awarded as it opened doors
to further funding.
4. Mrs A Claussen-Reynolds then spoke about the award for Fakenham Rugby
club which was much appreciated.
5. Mr R Wright emphasised the importance of the District retaining its share of the
council tax from second homes as it redressed some of the problems caused by
such a high number of second homes.
It was proposed by Mr J Lee, seconded by Mrs A Fitch-Tillett and
RESOLVED
To note the annual report.
Reason for the decision:
To ensure that Cabinet are informed about the operation of the Fund during its
second year and that it continues to meet both Council and community aspirations.
11.
ENFORCEMENT BOARD UPDATE
Mr R Oliver, Portfolio Holder for Legal Services, introduced this item. He explained
that the report provided an update to Members on the work of the Enforcement Board
over the past 6 months and gave an assessment of progress made since the Board
was established in December 2012. He went onto inform Members that the Board
was extremely successful and that further progress had been made on several
properties since the report was published.
The Chairman invited members to speak:
a. Mr G Williams said that the Enforcement Board was a good example of real
action and its success should be built on.
b. Mr W Northam commended the recent work at Trafalgar Court in Mundesley.
The site was now much improved and local residents were very appreciative.
c. Mrs A Claussen-Reynolds said that she had received very positive comments
from Fakenham residents following the work on the derelict properties in Oak
Street.
It was proposed by Mr R Oliver, seconded by Mr G Williams and
RESOLVED
To note the progress made to date by the Enforcement Board
Reason for the decision:
To ensure appropriate governance of the Enforcement Board.
Cabinet
4
12 May 2014
The Meeting closed at 10.17 am
_______________
Chairman
Cabinet
5
12 May 2014
Agenda Item No_____10_______
2013/14 OUTTURN REPORT
Summary:
This report presents the outturn position for the revenue
account and capital programme for the 2013/14 financial
year. Details are included within the report of the more
significant year-end variances compared to the current
budget for 2013/14. The report also makes
recommendations for contributions to earmarked
reserves 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 2013/14 financial year. Whilst there are options
available for earmarking the underspend in the year or
transferring the underspend to the general reserve, 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 2014 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 general fund balance is still
forecast to be below the recommended balance by 31
March 2015 and therefore this report is recommending
that the surplus is allocated to the general reserve to
mitigate this. The position as reported will be used to
inform the production of the statutory accounts.
Recommendations:
Members are asked to consider the report and
recommend the following to Full Council:
a) The final accounts position for the general fund
revenue account for 2013/14;
b) The transfers to and from reserves as detailed
within the report (and appendix C) along with the
corresponding updates to the 2014/15 budget;
c) Transfer the surplus of £119,011 to the general
reserve;
d) The financing of the 2013/14 capital programme
as detailed within the report and at Appendix D;
e) The balance on the general reserve of £1,745,452
at 31 March 2014 and forecast balance of £1,496,220
at 31 March 2015;
f) The updated capital programme for 2014/15 to
2015/16 and the associated financing of the
schemes as outlined within the report and detailed
at Appendix E;
6
g) A capital budget of £30,000 for replacement
hardware storage as detailed within 7.2 of the
report.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2013/14 that will be used to
produced the statutory accounts for 2013/14. 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, NNDR3 return
Cabinet Member(s): Cllr
Wyndham Northam
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 outturn position for the 2013/14 financial year which
will be used to inform the production of the Council’s statutory accounts.
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 2013/14 capital
programme. The capital programme for the period 2014/15 to 2015/16 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 2014 and identified a projected underspend on the revenue account of
£169,455, 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 18 June 2014.
1.5
At the time of preparing this report there are a number of final figures for
2013/14 which have not yet been confirmed and therefore estimates have
been made within the 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 2.2.
2.
Revenue Account – Outturn 2013/14
2.1
The revenue account position for the year shows a surplus of £119,011 as
detailed at Appendix A. This is after allowing for a number of transfers to
earmarked reserves for current and known commitments. As part of setting
the annual budget, the Council approves a policy framework for earmarked
reserves and the optimum level of the general reserve. Earmarked reserves
are typically used to set aside funds for known or specific liabilities. Transfers
7
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 2014, and also where no future budget exists or
where there is a commitment that continues into the 2014/15 financial year.
Generally requests to transfer funds to earmarked reserves are made where
no specific budget exists in the following financial year. A number of service
underspends have occurred in the year due to having to divert resources
following the tidal surge in December 2013. This has resulted in some
underspends which have been requested to be rolled forward or utilised in the
year in responding to the storm. Equally, at the service level there will be
some reported overspends due to costs chargeable to the service in relation
to repairs following the storm. Further details on the storm are included at
section 3. Further details on the movements to and from reserves are
included at section 4 of the report. In addition where grants have been
received from external bodies in 2013/14 but the expenditure has not yet
been incurred, these amounts have been carried forward within reserves at
the year-end.
Estimates Included in the Accounts
2.2
As mentioned previously the outturn position presented 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.
2.3
Benefit Subsidy - As in previous years the benefit subsidy return was
completed and submitted by 30 April 2014 and this will be subject to external
audit 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.
2.4
Business Rates - The 2013/14 year was the first year of the new system of
business rates retention. Previously all business rates collected by the billing
authority would be paid over to central government for redistribution as part of
the overall funding system for Local Government. Under the new system an
element of the business rates is retained locally (split between the County
and Districts) and the outturn position must take into account the actual
business rates position for the year. The information for this is taken from the
National Non Domestic Rates (NNDR) Return 3. Again, this form will be
subject to external audit review as part of the external audit work which will
not be signed off until September. Following the completion of the NNDR3
return the levy payable1 (to Government) has now been calculated in relation
to BR Retention for 2013/14. The net impact of the levy (payable) along with
the grant received to recompense local authorities for the impact of the
extensions of the small business rate reliefs is an additional £327,239 (net
income). In the same way that the benefits reserve has been established to
mitigate the impact of the benefits subsidy return, it is recommended that a
business rates reserve is established and this amount transferred to the
reserve in 2013/14 to smooth the impact between financial years of
fluctuations in the business rates and also the impact of appeals should they
be above the level allowed for within the budget.
1
The levy refers to the payment that has to be made to in respect of growth in business rates over and
above the baseline (i.e. the amount allocated in the rates retention system).
8
Service Variances
2.5
The following sections of the report aim to highlight the more significant
variances compared to the current budget and concentrate on the direct costs
and income. Comments 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 1 provides a summary of the position
excluding notional charges.
Table 1 - 2013/14 Revenue Account (Excluding Notional Charges)
Assets & Leisure
CLT / Corporate
Community, Econ Dev & Coast
Customer Services
Development Management
Environmental Health
Finance
Organisational Development
Net Cost of Services
Parish Precepts
Net Interest Receivable/Payable
Capital Financing
Net Contributions to/(from) Earmarked Reserves
Net Contributions to/(from) General Reserves
Net Expenditure to be met from Government
Grant & Taxpayer
Government Grants and Council Tax
Net (Surplus)/Deficit for year
Current
Budget £
Outturn £
1,559,845
871,899
988,699
2,143,686
506,648
3,123,448
2,055,090
1,267,433
12,516,748
1,560,571
726
818,634
(53,265)
250,519
(738,180)
2,007,482
(136,204)
398,628
(108,020)
3,017,879
(105,569)
1,794,569
(260,521)
1,187,933
(79,500)
11,036,215 (1,480,533)
Variance £
1,457,091
(383,490)
239,821
704,483
(10,686)
1,457,091
(353,827)
418,343
1,859,373
90,547
0
29,663
178,522
1,154,890
101,233
14,523,967
14,507,742
(16,225)
(14,523,967) (14,626,753)
(102,786)
0
(119,011)
(119,011)
2.6
Commentary on the more significant variances for direct costs and income is
provided within the following paragraphs. Further comments can be found
within Appendix B to the report.
2.7
Assets and Leisure
a)
Car Parks £58,022 underspend – As reported in the budget monitoring
reports during the year the level of car park income has exceeded the budget.
Overall the car parks service has resulted in a net favourable variance at the
year-end, the most significant being additional car park fee income of £40,618
and penalty charge notice income of £12,757.
9
b)
Administration Buildings £65,196 overspend – Of the overspend £27,718
relates to the demolition costs of Upper Sheringham Depot, although these
have been funded from a reduction in grant payment relating to the transfer of
the property. Other overspends shown in the service relate to the re-laying
out of the office and associated office moves necessary to accommodate the
NCC Children’s Services officers within the building from April 2014. Most of
the costs are due to recharges for the internal handyman service which would
be offset from underspends in other service area where their services have
not been used. In addition there are underspends within other property
related budgets which have offset this overspend.
c)
Foreshore £37,071 underspend – Within the service there have been storm
related repair costs, some of which were in relation to emergency works
which have been included in the Bellwin claim. There is still an overall
underspend within the service of which £33,622 are in relation to grounds
maintenance works.
d)
Sports Centres - £20,823 underspend – Of the underspend £15,972 relates to
hall and pitch hire income above the level anticipated, also £9,140 remains
unspent on a Community led Heath initiative which has been carried forward
to 2014/15.
e)
Public Conveniences £24,715 overspend – The year-end overspend is mainly
due to increased costs relating to water and sewerage which have been
mitigated by an underspend on repairs and maintenance.
f)
Investment Properties £35,445 overspend – The budget monitoring reports
during the year had highlighted an under recovery of budgeted income for
vacant premises. The outturn position now includes costs in relation to the
storm damage and associated repairs that have been completed by the end
of March 2014 totalling £37,986. Some of these have been mitigated by
insurance claims which have been accrued for in the accounts.
2.8
Community and Economic Development
a)
Coast Protection £176,228 underspend – The underspend is due to the
suspension of revenue works following the tidal surge. Storm repairs of
£50,766 have been incurred under this service heading. The underspend on
the planned revenue works has been carried forward to 2014/15.
b)
Pathfinder £57,431 underspend – The budget included £60,000 in relation to
the Integrated Coastal Management fund which had not been spent by the
year-end and has therefore been carried forward in an earmarked reserve.
c)
Housing Strategy £75,997 underspend – The underspend is due to VAT
shelter receipts received in the years above the level budgeted for, these
have been transferred to the Capital Projects earmarked reserve.
d)
Community and Localism £301,459 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 partly 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.
e)
Coastal Management £41,919 underspend – the underspend is in relation to
a post that was vacant in the year which has now been utilised within the
service.
10
2.9
Corporate
a)
Legal Services £27,842 underspend - Of the year-end variance £12,220
relates to a higher level of fee earning income compared to the level
budgeted, the remaining variance relates to a net underspend on direct costs.
2.10
Customer Services
a)
IT Support Services £27,113 underspend - The outturn position is made up of
a number of service variances including £24,963 underspend in relation
hardware and software purchase, computer maintenance, software licences
and £8,248 underspend on telephone rentals and maintenance. Of the overall
saving, £10,819 is being used as a revenue contribution to capital to finance
the purchase of new hardware and £13,900 has been transferred to an
earmarked reserve for costs associated with the Business Transformation
project.
b)
Tourist Information Centres £26,953 underspend – of the underspend
£11,234 relates to additional income from the sale of souvenirs and
commission earned. The balance of the underspend related to employee
costs and computer hardware and software not incurred in the year.
c)
Customer Services Corporate £58,552 underspend – Of the underspend
£34,976 relates to employee costs due to turnover and vacant posts within
the year. This has been requested to be rolled forward pending the
appointment of the Customer Services Manager and utilisation as part of the
Business Transformation project. There is also an underspend of £15,655 in
relation to stationery and other purchases not made in the year. The balance
of the underspend relates to smaller variances within the service.
2.11
Development Management
a)
Development Management £47,609 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. The report is
recommending that the additional income is carried forward within an
earmarked reserve for the future plan review.
b)
Building Control and Access £45,687 underspend – Of the variance £20,972
is in relation to exceeding the budgeted level of income, with the balance of
the underspend being due to a vacant post. The outturn position has allowed
for the earmarking of £45,000 for the self-financing requirements of the
service.
c)
Property Information £27,848 overspend – The main reason for the service
overspend is in relation to a land charge claim, although this has been
mitigated by an earmarked reserve movement.
2.12
Environmental Health
a)
Waste Collection and Disposal £23,581 underspend – The overall
underspend for the service is made up of a number of variances within the
service budget headings, including:

Costs associated with the storm damage of £25,921, although these
have been mitigated by an insurance claim (accrual) of (£16,101);

Reduction in commercial disposal costs of (£32,332) offset by a
reduction in associated fee income of £14,812;

Additional costs for replacement and damaged bins of £9,087;
11

Recycling initiatives budget not fully spent in the year of £42,607. An
element of this has been carried forward in the Environmental Health
earmarked reserve to fund additional promotional and marketing
during 2014/15 for the changes to the contract that will commence
later in the year.
2.13
Finance
a)
Benefits £97,127 underspend – Of the underspend £65,483 relates to staff
turnover savings above the budgeted level including a vacant post and also
transport costs not incurred in the year. An element of this has been
requested to be carried forward to 2014/15 to support the implementation of
some of the modules of the Civica revenues and benefits system. As
mentioned previously in the report the outturn position takes account of the
initial housing benefit subsidy position for 2013/14 which will be subject to
audit later in the year. The remainder of the variance is largely in relation to
the draft subsidy position and the bad debt provision.
b)
Discretionary Payments £89,168 – Whilst this service heading shows an
underspend in the year, the funding for these are now accounted for within
the Business Rates Retention System, a compensating transfer to reserves
has been made to offset this.
c)
Internal Audit £23,983 underspend – The underspend in the year is partly due
to a variation to the 2013/14 Internal Audit Plan which saw 27 audit days
being reallocated to the 2014/15 plan. Therefore an element of the
underspend has been carried forward to be utilised in the 2014/15 plan for
this slippage in audit plan days.
2.14
Organisational Development
a)
Human Resources and Payroll £30,130 underspend – Within the overall
underspend, £41,624 is in relation to the expenditure on the corporate training
programme being less than anticipated. This has been requested to be
carried forward to 2014/15 and includes elements for both officer and member
training and development plans.
b)
Policy and Performance Management £33,143 underspend – The outturn
position is made up of a number of savings within the service, including,
£8,048 on employee cost savings, £9,606 consultation costs not incurred in
the year, £6,936 expenditure not incurred for the North Norfolk Youth Voice
together with £6,304 on grants.
2.2
The overall outturn position and year-end variances for all service areas will
be reviewed as part of the preparatory work for the updated financial strategy
which will be used to inform the 2015/16 budget. This will incorporate a full
review of all under and overspends to inform the financial projections.
Non Service Expenditure and Income
2.3
The non-service expenditure and income predominantly relates to investment
income. The 2013/14 outturn position achieved from the Council’s treasury
management activity was £29,663 below the amount anticipated in the
budget. Total net investment income for the year was £353,827 at an
average rate of 1.53% from an average balance available for investment of
£23.2 million. This compares to the current budget which anticipated a total of
£383,490 would be earned at an average rate of 1.64% from an average
balance of £23.6million.
12
2.4
The rates of interest on the type of investment the Council had been making
was falling, however the overall position has been improved due to the
Council’s investment in the Local Authority Mutual Investment Trust (LAMIT)
pooled property fund. This was budgeted to achieve £252,383 within the
updated budget but actually delivered £255,546.
2.5
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.
3.
Storm Damage
3.1
Members will be aware of the significant impact to properties, both residential
and commercial, of the storm and tidal surge that occurred in December
2013. The accounts for 2013/14 reflect the repair costs that have been
incurred to the end of March 2014.
3.2
The budget report presented to Members in February 2014 provided a
summary of the costs and funding sources. The following provides a
commentary of the position at the end of March 2014 along with the projected
implications for 2014/15.
3.3
The total costs associated with the tidal surge of the 5 December 2013 are
estimated to be in the region of £2.8million. Costs that have not yet been
recovered or are unable to be recovered, will have to be met from the
Council’s general reserve.
3.4
There are several ways in which these costs can and have already been
funded. They are set out below:-
3.5
Bellwin Scheme – This is a Government scheme designed to recompense
authorities for the costs of emergency measures taken, during exceptional
circumstances. There are strict rules on the types of expenditure that are
allowable under this scheme. There is a lower threshold limit set, up to which
the authority must bear the full cost. For North Norfolk this is set at 0.2% of
budget or £24,218. Amounts above this threshold can be claimed at 100%.
3.5.1
During April 2014 an initial draft claim with supporting documentation was
made as set out below.
£
Costs deemed eligible under Bellwin Scheme
69,975
Less: Threshold
(24,218)
Total net claim
45,757
3.5.2
Final claims must be made by the 30 June 2014.
3.5.3
As the scheme is a discretionary one, it is not certain that the whole of the
claim will be met. The authority will be notified of the agreed amount of
the claim sometime after the deadline for submission of claims has
passed, for the purpose of the outturn report the claim amount has been
accrued for the 2013/14 financial year.
3.6
Insurance - Items which are insured are not covered by the Bellwin Scheme.
In addition to the Bellwin threshold mentioned above, the authority will also
have to bear the cost of any insurance excesses which are expected to be in
the region of £134,750. Coastal defences and promenade infrastructure are
not insurable assets.
13
3.7
Severe Weather Recovery Scheme (SWRS) – In February 2014 the
Government launched a scheme to help local authorities affected by flooding
as a result of the tidal surge. A total of £7million was made available to Local
Authority areas in England affected by flooding caused by the east coast tidal
surge of 5 and 6 December 2013 and severe weather in December 2013 and
following the storms over the period December 2013 to 7 February 2014. The
SWRS fund was split 50:50 between two elements: Highways infrastructure
and communities. Allocation of the communities element of the grant was
based on the number of residential and commercial properties affected.
Under the scheme, NNDC was allocated and has received £143,616. Of the
amount received £102,642 has been utilised in 2013/14, and the balance has
been carried forward to offset associated costs to be incurred in 2014/15.
3.8
External Grants – On 2 April 2014 the authority received £765,000 of grant
funding from the Environment Agency (EA) towards the costs incurred by the
council during the course of recovery from the tidal surge for the coastal
defence assets. This grant has been used to fund capital works at various
locations along the council’s coastline that were damaged by the tidal surge.
The value of works completed at 31st March 2014 was £698,382. A further
application for EA funding of £276,000 for 2014/15 is still outstanding.
3.9
Table 2 below gives an overview for 2013/14 of the position regarding
expenditure associated with the tidal surge and the related funding.
Table 2 - 2013/14 Actual - Storm Recovery
Revenue
Capital
Total
Expenditure:
NNDC Property Assets
57,914
146,876
204,790
Coastal Assets
71,668
698,382
770,050
Other Infrastructure
Emergency Response
Sub Total
8,142
8,142
44,374
44,374
182,097
845,258
1,027,355
(698,382)
(698,382)
(146,876)
(180,573)
External Funding:
Environment Agency*
Insurance Claims
(33,697)
Bellwin (Draft) Claim
(45,758)
(45,758)
(102,642)
(102,642)
Severe Weather Recovery Scheme **
(182,097)
(845,258)
(1,027,355)
0
0
0
Net Impact 2013/14
* £698,382 of £765,000 EA Funding allocated in 13/14
** £102,642 of Severe Weather Recovery Scheme Allocated in 2013/14
3.10
Expenditure on recovering from the tidal surge will continue into 2014/15.
Table 3 below shows the overall estimated position of costs and funding as at
12 May 2014.
14
Table 3 - Overall Storm Damage
Estimated
Costs
Funding
£
£
Funding Source
NNDC cost
(potential)
£
NNDC Property Assets:
Uninsured
72,029
Insured
995,633
Sub-total NNDC
Property Assets
1,067,662
(841,259)
Insurance claims
(estimate)
Coastal Assets
1,608,000
(220,000)
Cromer Scheme –
existing funding.
(765,000)
EA Grant 2013/14*
226,403
623,000
Other Infrastructure
59,144
0
59,144
Other
81,671
(45,757)
35,914
Total
2,816,477
Estimated Claim
Severe Weather Recovery
(143,616)
Scheme
(2,015,632)
(143,616)
800,845
* EA Grant for 2014/15 of £276,000 to be confirmed, if successful residual cost reduces to £524,844
3.11
Following the storms and flooding during December to March the
Government announced funding for a number of grant schemes and financial
assistance for households and businesses that were affected by or impacted
by flooding. These included the following:

Repair and Renew Grants (Homeowners and Businesses)

Business Support

Council tax Discounts

Business Rate reliefs
3.12
These schemes are being administered by the billing authorities to be
reimbursed by Government funding in line with their (the Government’s) set
eligibility criteria.
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
The budget report for 2014/15 as presented to Members in February 2014
approved the allocation of funding from the general reserve for storm
associated and repair costs totaling £1,572,000 over the two years 2013/14
and 2014/15. At the time this allowed for a significant element of sea defence
work which the Environment Agency has since confirmed funding for (the
15
2013/14 application totaling £765,000). Furthermore the Council has received
£143,616 of funding in respect of the Severe Weather Recovery Scheme.
Both of these funding sources have reduced the call on the general reserve
for funding of the storm costs.
4.4
Section 2 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 2013/14 for use in 2014/15.
4.6
The general reserve balance at 31 March 2014 is £1,745,452 although after
taking into account the budgeted contributions to and from the reserve in
2014/15, the forecast balance at 31 March 2015 is £1,496,220. This is
currently still below the recommended balance of £1.75 million and therefore
the report is recommending that the surplus for 2013/14 is transferred to the
general reserve.
5.
Summary – Revenue Account 2013/14
5.1
The outturn position for the year ending 31 March 2014 is a £119,011 surplus.
This is after allowing for a number of underspends identified at the service
level which have been rolled forward within reserves to fund ongoing
commitments in 2014/15. It is recommended that the surplus for the year be
transferred to the general reserve to assist in bringing the reserve back up to
the current recommended balance of £1.75 million.
6.
Capital Programme 2013/14
6.1
This section of the report presents the financing of the capital programme for
2013/14, along with an updated programme for the financial years 2014/15 to
2016/17. Appendix D provides the detail of the outturn on the 2013/14 capital
programme for all service areas, together with the financing for all schemes.
The updated capital programmes for the period 2014/15 to 2016/17 are
attached at Appendix E.
6.2
The outturn position for the 2013/14 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 2014/15. 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 2013/14 budget, and explanations of variances
where applicable.
6.3
In total the expenditure on the capital programme for the year was
£4,801,174, compared to an updated budget of £7,646,510, which resulted in
a variance of (£2,845,336). There has been a requirement to claw back a
total of £128,562 from the 2014/15 budget where schemes have progressed
16
faster or earlier than originally anticipated. In addition to this there is
significant slippage of (£3,163,075) (see Table 6), together with other
movements in year totalling a net of £189,177.
6.4
The following two paragraphs provide a summary commentary where actions
on schemes have been similar at the year-end:-
6.4.1
Budget Claw Backs – There were six schemes in total that have either
started slightly earlier than anticipated, or where the spend level in year
was higher than originally anticipated. Where this is the case, and there
is budget available within the 2014/15 capital programme, this has been
clawed back in order to cover the expenditure incurred in year. The
updated programme for 2014/15 onwards (Appendix E) reflects these
adjustments to the capital programme. The schemes and amounts are
listed at Table 4.
Table 4 - Capital Schemes Claw Back Required from 2014/15 Budget
Capital Scheme
Claw Back Amount
£
Disabled Facilities Grant
56,780
Cromer Pier Structural Works Phase 2
42,057
Trade Waste Bins / Vehicles
12,418
Administrative Buildings
17,060
Other Schemes
247
Total
128,562
6.4.2
Schemes Completed in Year – There were eight schemes which were
completed during the year. Table 5 provides a summary of the schemes
along with the final project variance together with a commentary on the
financing implications where applicable.
Table 5 - Capital Schemes Completed in Year
Capital Scheme
Car Park Resurfacing and
Refurbishment
Strategic Housing and
Choice Based Lettings
System
Chalet Repairs
Reception Project
Variance
£(Under)/Over
24,430
Capital Receipts – requested virement from Admin
Buildings Capital Scheme
13,150
External contributions totalling £16,682 - reduced the
NNDC funding requirement by a total of £3,532.
1,357
14,004
Probass 3
440
Handyman Vehicle
496
Equity Loans
Financing Commentary
(12,245)
Funded by Capital Receipts
This relates to some works identified post design and
completion stage and have been funded by an
underspend within the customer services revenue
budget.
Funded by Capital Receipts
Capital Projects Reserve -additional contributions
equating to the over spend will be made from revenue
savings in this area in future years.
£47,000 was given to the Council in 2012/13 for the
provision of equity share loans to enable homes to be
improved in 2012/13 and 2013/14. During 2013/14
financial year payments totalling £14,910 were made
to individuals, but although the scheme effectively
showed an under spend in year; the balance of the
original grant (£12,245) was repaid to the originating
organisation.
17
Capital Scheme
Doctors Steps
Variance
£(Under)/Over
(11,594)
Financing Commentary
Originally the scheme had a budget in year of £18,461,
but of this only £6,867 was required to complete the
works required. The under spend is no longer
required.
6.4.3
In addition to these there are further explanations of other variances on a
scheme by scheme basis below:-
6.4.3.1
Housing Associations - Due to delays in individual Housing Associations
schemes, not all payments that were originally anticipated have been
made in 2013/14. The balance of budget is requested to be slipped to
2014/15, with a further adjustment for a reduction of a £27,567. This
adjustment relates to those costs incurred by the Council with regards to
the demolition works undertaken at the Upper Sheringham Depot. This
property is due to be transferred to the Broadland Housing Association
during 2014/15, and the cost of the demolition works is to be reduced
from the overall grant payment due to the Association.
6.4.3.2
Storm Surge - Following the storm surge in December 2013, the
Environment Agency approved a grant of £765,000 to fund emergency
works along the coastline in respect of sea defences. In total £698,382
has been spent, with the balance of £66,618 being slipped into 2014/15.
6.4.3.3
Chalet Rebuild – Storm Surge – As a result of the storm surge in
December 2013 a number of the Council’s chalet buildings were swept
away, or damaged. Expenditure of £58,200 was incurred in relation to the
rebuild of these chalets, to be funded by insurance claims which have
been lodged in relation to these properties.
6.4.3.4
Pier – Storm Surge – The storm surge also caused considerable damage
to the Pier, which resulted in £88,676 of capital expenditure being
incurred. As with the chalets, this expenditure is to be funded by
insurance claims which have been lodged in relation to this structure.
6.4.3.5
PC Replacement and Mobile Technology – The scheme was completed in
year, and the underspend of £676 has been requested for virement to the
Personal Computer Replacement Fund capital scheme to fund further
replacement machines.
6.4.3.6
Purchase of DELL PE720XD – During the year the Council purchased
computer equipment using funds from revenue resources. As the
purchase exceeded our de-minimus level of £10,000, the payment is
required to be identified as capital expenditure, which is to be funded by
an equivalent revenue contribution to capital outlay (RCCO).
6.4.4
In addition to the above there have been a number of schemes where
slippage of budgets in excess of £100,000 has been identified from the
2013/14 budget to 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. These schemes are
summarised in Table 6.
18
Table 6 - Slippage on Capital Schemes in Excess of £100,000
Amount
Capital Scheme
£
Housing Associations
422,850
Cromer Coast Protection Scheme 982 and SEA
1,769,009
Pathfinder Project
299,358
Big Society Fund
113,000
Procurement of Upgrade for Civica System
119,098
Total
2,723,315
7.
Capital Programme –2014/15 Update
7.1
Appendix E shows the updated capital programme for the period 2014/15 to
2016/17. The programme has been updated to reflect the slippage identified
within this report and the capital outturn position. The capital programme now
includes the eight new schemes approved as part of the 2014/15 budget
report along with the following schemes which have been previously bee
reported and approved separately:
7.1.1
Council Car Park Improvements 2014/15 – In May 2014 Cabinet
approved a capital budget of £110,000 for the continuation of the
improvement works to the Council’s Car Parks.
7.1.2
Telephony Procurement – In April 2014 Cabinet approved a capital
budget of £90,000 for the replacement of the telephony system as part of
the Business Transformation programme.
7.2
In addition to the approvals that have already been given for the above
schemes, approval is now being sought for a new capital scheme for the
replacement of the Dell Equallogic storage hardware that comes to the end of
its useful life in August 2014. A budget of £30,000 is being requested for
replacement equipment which will facilitate quicker data access in a
supported environment for a ten year period. There is a possibility that data
could be lost and services may lose their IT systems without the replacement
of this equipment.
8.
2014/15 Budget Implications and Financial Forecast 2015/16 Onwards
8.1
The budget for 2014/15 was approved in February 2014. At the same time
financial projections for the following three years to 2017/18 were also
reported. The budget for 2014/15 includes new savings and additional income
totalling £580,994 for 2014/15 which are expected to increase to £789,594
from 2015/16. These are in addition to the ongoing savings of £413,000 and
£920,000 from the 2013/14 and 2012/13 financial years respectively.
8.2
The forward projections take account of the provisional finance settlement for
2015/16 announced at the time of the 2014/15 settlement and forecast
continued funding reductions in the following three years. Based on the
assumptions at the time of approving the budget for 2014/15 the forecast
funding gap by 2017/18 was £2.1 million. Table 7 below provides a summary
of the current funding gaps for the next three years.
19
Table 7 – Current Funding Forecast
2015/16
2016/17
2017/18
£000
£000
£000
Current Funding Gap2
239
1,327
2,145
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 2015/16 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 2013/14 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 the tidal surge
in December 2013. In addition the impact of the tidal surge has been felt by a
number of services in terms of responding to the initial event and the longer
term recovery including the administration of the grants schemes. Where
applicable the service underspends have been carried forward within
earmarked reserves to mitigate any overspends in the 2014/15 financial year
and to meet current commitments.
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 £28million has been incurred in the year to be recovered from
subsidy payable by the Department for Work (DWP) and pensions. 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 this is the
first year of the rates retention system of financing for local authorities, with
the risk of fluctuations in business rates income now being borne by Local
Authorities in terms of the amounts that are retained at the local level ie
Districts and County. The NNDR3 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
2
As reported in the 2014/15 Budget Report, February 2014
20
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.
9.5
Storm Damage – The report provides details of the actual costs for 2013/14
that have been incurred in relation to the storm damage. This includes
allowing for insurance monies for those areas where repair costs will be
subject to insurance claims. Until the final claims have been finalised and
agreed with the insurers there still remains a risk that the costs will not be
recovered as currently anticipated and if this is the case the costs of shortfall
will need to be met by the general reserve.
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
General Fund Summary Report Outturn 2013/2014
2013/14
Updated
Budget
£
2013/14
Actuals
£
Appendix A
2013/14
Variance
£
Service Area
Assets & Leisure
Clt / Corporate
Community, Econ Dev & Coast
Customer Services
Development Management
Environmental Health
Finance
Organisational Development
2,432,755
76,933
4,432,098
703,519
1,171,242
4,353,139
3,016,781
833,770
2,369,511
24
1,831,665
685,461
1,124,010
4,229,486
2,718,081
878,421
(63,244)
(76,909)
(2,600,433)
(18,058)
(47,232)
(123,653)
(298,700)
44,651
Net Cost Of Services
17,020,237
13,836,659
(3,183,578)
Precepts Of Parish Councils
Capital Charges
Refcuss
Interest Receivable
External Interest Paid
Revenue Financing For Capital
Retirement Benefits
1,457,091
(2,292,529)
(2,511,401)
(383,490)
0
823,203
300,441
1,457,091
(2,292,529)
(644,703)
(354,258)
431
501,220
136,788
0
0
1,866,698
29,232
431
(321,983)
(163,653)
Net Operating Expenditure
14,413,552
12,640,699
(1,772,853)
(583,382)
(53,049)
0
173,927
0
0
(21,180)
(60,000)
(8,820)
(25,000)
30,000
158,222
(20,000)
2,037
(142,000)
20,000
(42,550)
(30,949)
675,207
(69,997)
(35,000)
(128,358)
85,596
231,827
(10,430)
(15,000)
(10,000)
(10,686)
(82,877)
(17,291)
50,000
427,862
45,688
327,239
(21,180)
183,167
40,749
(19,000)
45,060
146,967
33,367
189,764
(142,000)
(10,457)
1,045
(30,949)
675,207
37,698
(35,000)
(26,050)
165,596
229,225
5,452
(15,000)
(10,000)
0
500,505
35,758
50,000
253,935
45,688
327,239
0
243,167
49,569
6,000
15,060
(11,255)
53,367
187,727
0
(30,457)
43,595
0
0
107,695
0
102,308
80,000
(2,602)
15,882
0
0
10,686
14,523,967
14,834,981
311,014
(1,457,091)
(5,082,610)
(2,894,834)
0
(1,457,091)
(5,082,610)
(2,894,834)
(792,105)
464,866
(4,235,114)
(57,760)
(102,642)
(22,740)
(729,418)
(44,544)
0
0
0
(792,105)
464,866
0
(144)
(102,642)
0
0
0
(14,523,967) (14,953,992)
(430,025)
Contributions to/(from) Earmarked Reserves
Capital Projects
Asset Management
Benefits
Big Society Fund
Building Control
Business Rates
Carbon Management
Coast Protection
Common Training
Economic Development and Tourism
Election Reserve
Enforcement Works
Environmental Health
Grants
Housing
Land Charges
Legal
Local Strategic Partnership
New Homes Bonus
Organisational Development
Partnership Budgets
Pathfinder
Planning
Restructuring & Invest to Save Proposals
Sports Hall Equipment & Sports Facilities
The pier
Whistle blowing
General Fund Reserve
Amount to be met from Government Grant and
Local Taxpayers
Collection Fund - Parishes
Collection Fund District
Retained Business Rates Base Line
Section 31 Grant Business Rates
Levy (Business Rates Retention)
Revenue Support Grant (RSG)
Council Tax freeze Grant
Storm Damage Support Grant
LCTS Transitional Funding
New Homes Bonus
Efficency Support Sparse Area
Income from Government Grant and Taxpayers
(4,235,114)
(57,616)
0
(22,740)
(729,418)
(44,544)
(Surplus) / Deficit
0
22
(119,011)
(119,011)
Appendix B
Service Area Summaries Period 12 2013/14
Assets & Leisure
Cost Centre Name
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Svs *
Property Services *
Parks & Open Spaces
Foreshore
Community Centres
Sports Centres
Leisure Complexes
Other Sports
Recreation Grounds
Pier Pavilion
Foreshore (Community)
Woodlands Management
Cromer Pier
Public Conveniences
Investment Properties
Leisure *
Cctv
Budget
Actuals
Variance
£
£
£
(1,343,509) (1,463,269)
64,621
65,826
9,667
11,679
2,840
2,932
(15,830)
(9,416)
(4,555)
7,793
70,447
100,502
13,500
0
492,466
486,001
211,134
198,563
11,038
8,804
342,246
323,690
739,018
729,134
144,968
128,498
10,518
11,717
106,347
108,719
396,116
392,675
163,286
166,525
35,871
47,572
563,341
606,575
172,873
249,082
9,000
0
237,352
195,909
Total
2,432,755
2,369,511
(119,760)
1,205
2,012
92
6,414
12,348
30,055
(13,500)
(6,465)
(12,571)
(2,234)
(18,556)
(9,884)
(16,470)
1,199
2,372
(3,441)
3,239
11,701
43,234
76,209
(9,000)
(41,443)
(63,244)
* These budgets represent Service Management & Support Service costs for the
Council. These costs are ultimately recharged in full to the final services, based on
an appropriate method of allocation, for example, percentage of time spent.
23
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Actuals
Variance Explanation for Major Variances
£
£
Car Parking
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Markets
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Industrial Estates
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Surveyors Allotments
Gross Direct Income
Management Unit Costs
Handy Man
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Parklands
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
722,088
715,479
28,794
28,794
(2,190,013) (2,241,426)
95,622
33,884
95,776
(77,285)
46,130
88,028
(77,877)
55,675
64,621
65,826
27,788
44,789
(113,860)
50,950
28,141
44,789
(112,391)
51,140
9,667
11,679
(50)
2,890
2,840
(150)
3,082
2,932
57,048
64,670
(117,238)
(113,778)
44,360
(15,830)
39,692
(9,416)
26,460
585
(54,250)
27,300
585
(51,317)
22,650
31,225
(4,555)
7,793
(6,609) £3,132 - Additional repairs and maintenance
expenditure offset by direct reimbursement of
income. £6,993 - Additional rental payable
based on and offset by increased income.
(£5,516) - Reduction in NNDR costs.
(£9,752) - Reduction in car park contract
management costs.
0
(51,413) (£4,994) - Direct reimbursement for
damaged car park machine. (£40,618) Increased car park fee income. (£12,757) Additional penalty charge notice income.
(£8,031) - Increased season ticket income.
(61,738) (£60,900) - Reduced management unit
recharges from Property Services.
(1,343,509) (1,463,269) (119,760)
(7,748) (£2,500) - Reduced NNDR costs.
(592) No major variances.
9,545 £5,408 - Increase in Property Services
Recharges.
1,205
353 No major variances
0
1,469 No major variances
190 (£3,620) - Reduced recharges for Insurance.
£3,235 - Increase in Property Services
Recharges
2,012
(100) No major variances
192 No major variances
92
7,622 £5,189 - Increased salaries and overtime
costs.
3,460 £4,006 - Reduction in handyman recharges
to other service areas.
(4,668) No major variances
6,414
840 No major variances
0
2,933 £3,533 - Reduction in electricity recharges to
tenants offset in part by a reduction in direct
electricity costs.
8,575 £3,785 - Increased recharge from Property
Services. £4,181 - Increase in recharge from
Sundry Debtors.
12,348
24
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Administration Buildings Svs
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Variance Explanation for Major Variances
Actuals
£
£
510,353
76,240
(94,216)
622,362
76,240
(140,987)
112,009 See Note A below
0
(46,771) See Note B below
(421,930)
(457,113)
70,447
100,502
(35,183) £57,564 - Additional recharges from Property
Services. £10,831 - Recharges from Sundry
Creditors. (£154,769) - Further recharges to
other final services to better reflect the
additional costs incurred by the Admin
Buildings Service.
30,055
Note A: £5,349 - Additional overtime expenditure. £8,296 - NNDR costs for Annexe Building not removed until year end.
£35,000 - Additional costs for the works undertaken for NCC Childrens Services (recharged, see comment below). £7,000
- Urgent repair works to glulam beams. £7,000 - Additional costs incurred on external contractors as Handyman engaged
with office moves. £27,718- Additional repairs and maintenance expenditure for Upper Sheringham Depot demolition,
which is to be funded from a reduction in grant payments to Broadland Housing Authority on transfer of the Property.
(£9,205) - Reduced expenditure on equipment and materials. £8,653 - Increased expenditure on Consumables for the
Windmill Canteen partly offset by increased sales income
Note B: (£35,000) - Recovery of additional costs for works undertaken for NCC Childrens Services. (£5,582) - Additional
rent and service charge income from additional tenants at North Walsham Offices. (£2,217) - Additional income from
sales at Windmill Canteen. (£3,888) - Additional rent and service charge income from Fakenham Connect Offices.
Property Services
Gross Direct Costs
356,164
377,347
15,000
(2,100)
15,000
(4,611)
(355,564)
(387,736)
13,500
0
Parks & Open Spaces
Gross Direct Costs
407,181
401,139
(6,042) (£6,895) - Equipment for playgrounds not
purchased
Capital Charges
Gross Direct Income
30,612
(23,787)
30,612
(27,085)
0
(3,298) (£9,400) - Section 106 payment relating to
development at Stalham. £3,166 - Interest
on commuted sums is lower as a result of
reduced rates of return on investments. The
balance consists of minor variances
Management Unit Costs
78,460
492,466
81,335
486,001
2,875 No major variances
(6,465)
Capital Charges
Gross Direct Income
Management Unit Costs
21,183 £7,787 - Overtime expenditure relating to
storm surge and office moves. £6,436 Increase IAS19 Adjustment.
0
(2,511) (£2,511) - Bellwin claim monies relating to
storm surge.
(32,172) £11,843 - Additional recharges from Admin
Buildings. (£4,662) - Reduction in recharges
from Sundry Debtors. (£6,680) - Reduction
in recharges for Internal Audit .£13,956 Additional recharges for Legal Services.
(£38,482) - Further recharges to other
services to better reflect where expenditure
is actually incurred.
(13,500)
25
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Foreshore
Gross Direct Costs
Actuals
Variance Explanation for Major Variances
£
£
156,921
124,094
(32,827) £6,110 - Additional expenditure on repairs
and maintenance - please note that a total of
£23,834 was incurred specifically in relation
to storm damage works. (£33,622) Reduced expenditure on grounds
maintenance used to offset additional
expenditure relating to storm damage works.
8,193
0
8,193
(4,244)
46,020
70,520
211,134
198,563
0
(4,244) (£3,632) - Bellwin claim monies relating to
storm surge.
24,500 £22,906 - Increased recharge from Property
Services.
(12,571)
Community Centres
Gross Direct Costs
6,135
763
Capital Charges
Management Unit Costs
13
4,890
13
8,028
11,038
8,804
369,460
359,683
(9,777) (£3,647) - Reduced expenditure on
purchases for the bar area as a result of
reduced demand, offset by reduced income.
£3,890 - Cost of a granular top-up at the
Stalham Multi Use Games Area (MUGA).
(£9,140) - Costs not incurred in relation to
the Community Led Health Initiative. A
request is being made to roll this forward as
unspent grant as the project is currently
being delivered.
11,188
(144,262)
11,188
(155,308)
0
(11,046) £4,925 - Sale of food and drink in bar areas
is lower than anticipated, this is partly offset
by lower expenditure. (£15,972) - Hall and
pitch hire are above anticipated levels
105,860
342,246
108,127
323,690
400,423
394,372
(6,051) (£7,174) - Expenditure not incurred on
maintenance at the Splash, Fakenham and
Victory Centres.
313,485
0
25,110
739,018
313,485
(399)
21,676
729,134
0
(399) No Major Variance
(3,434) No Major Variance
(9,884)
Capital Charges
Gross Direct Income
Management Unit Costs
Sports Centres
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Leisure Complexes
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
(5,372) (5,372)- Reduced expenditure on repairs and
grounds maintenance.
0
3,138 £3,890 - Increased recharge from Property
Services
(2,234)
2,267 No Major Variance
(18,556)
26
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Actuals
Variance Explanation for Major Variances
£
£
Other Sports
Gross Direct Costs
119,208
109,485
(9,723) £6,732 - Salaries and oncosts, included
pension fund adjustment. (£19,790) - Costs
not incurred in relation to the Community Led
Health Initiative. A request is being made to
roll this forward as unspent grant as the
project is currently being delivered.
Gross Direct Income
Management Unit Costs
(32,340)
58,100
(33,308)
52,321
(968) No Major Variance
(5,779) (£4,160) - No recharge from Environmental
Health following officer restructure.
144,968
128,498
8,583
285
(1,000)
2,650
10,518
9,835
285
(1,075)
2,672
11,717
93,377
101,351
7,974 £2,258 - Repairs & Maintenance (drainage &
lighting, electrical trunking, steel roof sheets).
£3,808 - Storm surge repairs
0
(3,808)
(3,808) Accrued insurance claim relating to the storm
surge
12,970
106,347
11,176
108,719
(1,794) No Major Variance
2,372
365,506
0
30,610
396,116
360,812
(698)
32,561
392,675
(4,694) No Major Variance
(698) No Major Variance
1,951 No Major Variance
(3,441)
Woodlands Management
Gross Direct Costs
114,493
149,468
Capital Charges
Gross Direct Income
6,003
(34,550)
6,003
(68,215)
Management Unit Costs
77,340
163,286
79,269
166,525
Recreation Grounds
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Pier Pavilion
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Foreshore (Community)
Gross Direct Costs
Gross Direct Income
Management Unit Costs
(16,470)
1,252 No Major Variance
0
(75) No Major Variance
22 No Major Variance
1,199
34,975 £11,141 - Emergency tree works at Sadlers
Wood and Warren Woods. £5,090 Expenditure relating to the delivery of events.
£5,367 - Grounds Maintenance at Holt
Country Park. £8,858 - Vehicle lease and
fuel costs. The balance consists of minor
variances.
0
(33,665) (£10,000) - Access to Nature change and
Impact funding from Natural England.
(£5,000) - Insurance recovered. (£7,082) Additional car parking income at Holt Country
Park. (£8,686) - Income earned from events.
(£2,648) - Income from the sale of firewood.
1,929 No Major Variance
3,239
27
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Cromer Pier
Gross Direct Costs
Capital Charges
Gross Direct Income
Variance Explanation for Major Variances
Actuals
£
£
39,785
5,232
(16,956)
59,272
5,232
(34,331)
7,810
17,399
35,871
47,572
442,763
472,066
Capital Charges
Gross Direct Income
79,481
(820)
79,481
(5,408)
Management Unit Costs
41,917
60,436
Management Unit Costs
Public Conveniences
Gross Direct Costs
19,487 £21,677 - Storm surge repairs
0
(17,375) Accrued insurance payment relating to the
storm surge
9,589 £12,247 - Increased recharge from Property
Services.
11,701
29,303 (£11,861) - Reduced repairs and
maintenance expenditure. £44,980 Increased costs relating to water and
sewerage.
0
(4,588) (£5,847) - Increased income as a result of
Public Convenience Handyman's time being
directly recharged out for storm surge and
other works.
18,519 £8,059 - Increased recharge from Property
Services, (£4,000) - Reduced recharge from
Accountancy. £8,463 - Increased recharge
from Creditors Section.
563,341
606,575
Investment Properties
Gross Direct Costs
120,063
172,945
Capital Charges
182,261
155,538
(212,351)
(229,788)
(17,437) (£2,567) - Increased rental income from
beach huts and chalets. £4,984 - Reduced
rental income from other investment property
premises. (£21,365) - Bellwin and other
insurance claim monies accrued in relation to
the storm surge works undertaken.
82,900
150,387
172,873
249,082
67,487 £55,220 - Increased recharge from Property
Services. £13,329 - Increased recharge from
Sundry Debtors.
76,209
151,214
139,111
(700)
(141,514)
0
(139,111)
9,000
0
Gross Direct Income
Management Unit Costs
Leisure
Gross Direct Costs
Gross Direct Income
Management Unit Costs
43,234
52,882 £48,948 - Additional expenditure on repairs
and maintenance. Of this £37,986 is directly
attributable to the storm surge works (
£10,488 related to Beach Huts, £27,890 to
Other Letting) and £10,560 to the Rocket
House.
(26,723) (£26,723) - Reduced REFCUS expenditure
in line with reduced capital grant payments
made to external organisations.
(12,103) (£9,000) - Professional Fees no longer
required to be spent and will go back to the
general reserve.
700
2,403 Reduced recharges reflecting lower direct
costs.
(9,000)
28
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Assets & Leisure
Full Year
Budget
£
Actuals
Variance Explanation for Major Variances
£
£
Cctv
Gross Direct Costs
191,596
214,019
22,423 £12,501 - Salaries and oncosts. £8,627 Fees to undertake and report on Wi-Fi
access for CCTV review. £8,473 - Cost of
lines between cameras and control room.
(£5,005) - New cameras not purchased.
Capital Charges
Gross Direct Income
Management Unit Costs
14,590
(11,294)
42,460
14,590
(10,200)
(22,500)
0
1,094 No Major Variance
(64,960) Amended following decision to discontinue
service.
237,352
195,909
(41,443)
2,432,755
2,369,511
(63,244)
Service Area Total
29
Appendix B
Service Area Summaries Period 12 2013/14
Clt / Corporate
Cost Centre Name
Budget
£
Actuals
£
Variance
£
Corporate Leadership Team *
Legal Services *
19,383
57,550
24
0
(19,359)
(57,550)
Total
76,933
24
(76,909)
* These budgets represent Service Management & Support Service costs
for the Council. These costs are ultimately recharged in full to the final
services, based on an appropriate method of allocation, for example,
percentage of time spent.
30
Appendix B
General Fund Variances by Service - Period 12 2013/2014
CLT/ Corporate
Full Year
Budget
£
Actuals
£
Variance Explanation for Major Variances
£
Corporate Leadership Team
Gross Direct Costs
(7,405) (£3,885) - Fees charged by the Monitoring
Officer are lower than anticipated. (£4,000) Expenditure not incurred on staff training.
527,379
519,974
0
(489)
(507,996)
(519,461)
19,383
24
Legal Services
Gross Direct Costs
404,570
388,898
(15,672) £19,909 - Salaries and oncosts are higher
£8,855 as a result of staff regradings
following changes in job description and
£8,593 for pension fund adjustments.
(£31,425) - Unspent Eastlaw reserve. A
request has been made to roll this forward.
The balance consists of minor variances.
Gross Direct Income
(60,050)
(72,220)
(12,170) (£12,220) - Higher legal fee income earned.
(286,970)
(316,678)
(29,708) Increased recharges reflecting higher direct
costs.
57,550
0
(57,550)
76,933
24
(76,909)
Gross Direct Income
Management Unit Costs
Management Unit Costs
Service Area Total
31
(489) No Major Variance
(11,465) Increased recharges reflecting higher direct
costs.
(19,359)
Appendix B
Service Area Summaries Period 12 2013-14
Community, Econ Dev & Coast
Cost Centre Name
Budget
Actuals
Variance
£
£
£
Health
Arts & Entertainments
Museums
General Economic Development
Tourism
Coast Protection
Pathfinder
Regeneration Management *
Housing (Health & Wellbeing)
Housing Strategy
Community And Localism
Coastal Management *
0
155,209
41,587
444,886
149,787
1,393,091
67,697
6,979
1,192,244
1,104,739
(124,121)
0
0
140,761
41,360
411,144
127,787
1,129,959
10,266
0
288,880
7,550
(326,042)
0
0
(14,448)
(227)
(33,742)
(22,000)
(263,132)
(57,431)
(6,979)
(903,364)
(1,097,189)
(201,921)
0
Total
4,432,098
1,831,665
(2,600,433)
* These budgets represent Service Management & Support Service costs for the
Council. These costs are ultimately recharged in full to the final services, based
on an appropriate method of allocation, for example, percentage of time spent.
32
Appendix B
General Fund Variances by Service - Period 12 2013/2014
Community, Econ Dev & Coast
Full Year
Budget
£
Health
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
0
51
51 No Major Variance
0
0
(51)
0
(51) No Major Variance
0
Arts & Entertainments
Gross Direct Costs
155,759
145,269
Capital Charges
Gross Direct Income
Management Unit Costs
1,300
(26,870)
25,020
1,300
(26,776)
20,968
155,209
140,761
41,017
570
41,587
41,360
0
41,360
405,084
374,026
(165,958)
(148,720)
205,760
185,838
444,886
411,144
Tourism
Gross Direct Costs
86,917
70,389
Management Unit Costs
62,870
57,398
Gross Direct Income
Museums
Gross Direct Costs
Management Unit Costs
General Economic Development
Gross Direct Costs
Gross Direct Income
Management Unit Costs
149,787
127,787
Coast Protection
Gross Direct Costs
430,277
254,024
Capital Charges
Gross Direct Income
Management Unit Costs
719,879
(25)
242,960
719,879
(2,763)
158,819
1,393,091
1,129,959
67,697
10,299
0
67,697
(33)
10,266
Pathfinder
Gross Direct Costs
Gross Direct Income
33
(10,490) (£8,142) - Salaries and oncosts following
officer restructure.
0
94 No Major Variance
(4,052) (£4,647) - Reduced recharge from Media and
Communications
(14,448)
343 No Major Variance
(570) No Major Variance
(227)
(31,058) (£14,097) Anticipated use of Pathfinder
reserve not required in year. (£16,319)
Learning for Everyone costs less than
budgeted mainly due to a vacant post, this is
offset by reduced grant income.
17,238 £18,205 Reduced income for Learning for
everyone, offset by reduced expenditure.
(19,922) Reduction in costs charged from
Regeneration Management.
(33,742)
(16,528) (£10,000) Destination Management
Organisation (DMO) change to spending
profile. (£6,000) Roll forward from 2012/13
not yet offset by expenditure.
(5,472) Reduction in costs charged from
Regeneration Management.
(22,000)
(176,253) £50,766 Storm damage. (£228,167) all
revenue works suspended whilst reactive
work undertaken in relation to the storm
damage.
0
(2,738) Bellwin Claim
(84,141) No recharge from Coastal Management
(263,132)
(57,398) Integrated Coastal Management Fund
(ICMF) - original Reserve was £60k - not
spent due to the tidal surge events and the
need to identify specific projects (now under
development). Requested to be rolled
forward into 2014/15
(33) No Major Variance
(57,431)
Appendix B
Full Year
Budget
£
Regeneration Management
Gross Direct Costs
Actuals
£
Variance
£
243,246
223,576
(236,267)
(223,576)
6,979
0
Housing (Health & Wellbeing)
Gross Direct Costs
Capital Charges
158,107
907,000
152,461
86,599
Gross Direct Income
(13,500)
(15,999)
Management Unit Costs
140,637
65,819
1,192,244
288,880
Management Unit Costs
Housing Strategy
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
105,757
1,477,678
(420,000)
(58,696)
1,104,739
Community And Localism
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
(19,670) Staff savings following restructuring of the
service.
12,691 Reduced Charges in from legal and less
Direct Costs to recover from final Services.
(6,979)
(5,646) £2,782 Superannuation adjustments.
(820,401) This reflects movement in the capital
programme.
(2,499) (£2,499) Income from Switch And Save
Initiatives.
(74,818) More accurate reflection of Staff time spent
on the service, including the recent service
restructure.
(903,364)
100,622
(5,135) No Major Variances
346,104 (1,131,574)
(490,862)
(70,862) Vat Shelter Receipts greater than budgeted
this will be transferred to the Capital Projects
reserve.
51,686
110,382 More accurate relection of Staff time spent
on the service, including the recent service
restructure.
7,550 (1,097,189)
890,792
589,333
0
112,000
(1,100,613) (1,100,613)
85,700
73,238
(124,121)
Explanation for Major Variances
(326,042)
(301,459) See Note A below
112,000 REFCUS treatment for capital projects.
0
(12,462) (£30,820) - No recharge from Property
Services. This has been partly offset by
recharges from Personnel, IT, Admin
Buildings and Insurances that are allocated
by head count.
(201,921)
Note A: £7,070 - Pension fund adjustment. (£218,933) - Big Society Grants. These are grants not yet drawn down or grants
funded from capital. (£53,868) - Expenditure not incurred against grant from Norfolk County Council for Youth Advisory
Board activities. A request has been made to transfer this to an earmarked reserve. (£5,000) - Expenditure not incurred
against grant from the Department of Health via Norfolk County Council towards boiler repairs. A request has been made to
transfer this to an earmarked reserve. (£20,820) - Expenditure not incurred on consultation activities. (£8,169) - Expenditure
not incurred in relation to Community Right to Bid and Community Right to Challenge
Coastal Management
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Service Area Total
135,452
93,533
0
(135,452)
(43)
(93,490)
0
0
4,432,098
(41,919) Vacant post
(43) No Major Variances
41,962 Reduced recharges reflecting lower direct
costs
0
1,831,665 (2,600,433)
34
Appendix B
Service Area Summaries Period 12 2013/14
Customer Services
Cost Centre Name
Budget
£
Actuals
£
Variance
£
It - Support Services *
Tic'S
Homelessness
Customer Services Housing *
Transport
Publicity
Graphical Info System *
Media & Communications *
Customer Services - Corporate *
18,900
237,296
388,001
0
39,220
31,080
0
(6,429)
(4,549)
0
281,390
363,835
0
40,326
(90)
0
0
0
(18,900)
44,094
(24,166)
0
1,106
(31,170)
0
6,429
4,549
Total
703,519
685,461
(18,058)
* These budgets represent Service Management & Support Service costs for
the Council. These costs are ultimately recharged in full to the final services,
based on an appropriate method of allocation, for example, percentage of time
spent.
No
No
35
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Customer Services
Full Year
Budget
£
It - Support Services
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Actuals
£
880,999
77,997
(1,910)
(938,186)
851,992
77,997
(16)
(929,973)
Tic's
Gross Direct Costs
199,382
183,550
Capital Charges
Gross Direct Income
8,105
(32,711)
8,105
(43,945)
62,520
133,680
237,296
281,390
65,802
83,977
Capital Charges
Gross Direct Income
23,130
(57,001)
23,130
(72,515)
Management Unit Costs
356,070
329,243
388,001
363,835
235,342
0
(235,342)
0
233,651
(248)
(233,403)
0
Variance Explanation for Major Variances
£
(29,007) See Note A below
0
1,894 No Major Variance
8,213 Reduced recharges reflecting lower direct
costs.
18,900
0
(18,900)
Note A: £7,398 - Salaries and oncosts including pension fund adjustment. (£24,963) - Expenditure not incurred on software
and hardware purchases, computer maintenance, software licences and computer lines and modems. (£8,248) - Telephone
Rentals and Maintenance are lower than anticipated. £5,007 - Expenditure on consumables is higher than anticipated.
£10,819 of this saving is being used to make a revenue contribution to capital to fund the purchase of new hardware. A
request has also been made to roll forward £13,900 to be used within the Business Transformation Project
Management Unit Costs
Homelessness
Gross Direct Costs
Customer Services Housing
Gross Direct Costs
Gross Direct Income
Management Unit Costs
36
(15,832) (£5,687) - Salaries and oncosts. (£6,011) Expenditure not incurred on computer
hardware and software. The balance
consists of minor variances.
0
(11,234) (£11,234) - Sale of souvenirs and
commission earned.
71,160 Recharges from Personnel, IT, Admin
Buildings and Insurances that are allocated
by head count.
44,094
18,175 £10,592 Bed and Breakfast Charges , of
which £5,793 is in relation to Storm Damage.
£7,448 Bad debt write offs and provision for
bad and doubtful debts not budgeted for at
service level.
0
(15,514) (£2,855) Bellwin Accrual re Storm Damage.
(£7,069) Income recoverable from
Homelessness recharges.
(26,827) More accurate relection of Staff time spent
on the service, including the recent service
restructure.
(24,166)
(1,691) No Major Variances
(248)
1,939 No Major Variances
0
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Customer Services
Full Year
Budget
£
Transport
Gross Direct Costs
Actuals
£
Variance Explanation for Major Variances
£
31,500
24,003
(7,497) (£7,497) - Senior Citizen Railcards no longer
being sold since December 2013.
(33,000)
(22,814)
40,720
39,220
39,137
40,326
10,186 £10,186 - Senior Citizen Railcards no longer
being sold since December 2013.
(1,583) No Major Variances.
1,106
0
31,080
(431)
341
31,080
(90)
Graphical Info System
Gross Direct Costs
26,832
21,603
Capital Charges
Management Unit Costs
3,780
(30,612)
3,780
(25,383)
0
0
316,405
312,773
(7,500)
(315,334)
(8,138)
(304,635)
(6,429)
0
Customer Services - Corporate
Gross Direct Costs
529,547
476,088
Capital Charges
Gross Direct Income
28,974
(10,000)
28,974
(15,093)
(553,070)
(489,969)
(4,549)
0
4,549
703,519
685,461
(18,058)
Gross Direct Income
Management Unit Costs
Publicity
Gross Direct Costs
Management Unit Costs
Media & Communications
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Management Unit Costs
Service Area Total
37
(431) No Major Variance
(30,739) No recharge from Media & Communications
following officer restructuring
(31,170)
(5,229) (£5,229) - Expenditure not incurred on
computer software purchases.
0
5,229 Reduced recharges reflecting lower direct
costs.
0
(3,632) £9,047 - Salaries and oncosts including
pension fund adjustment. (£6,572) Graphics materials costs and media work
lower than anticipated.
(638)
10,699 Reduced recharges reflecting lower direct
costs.
6,429
(53,459) (£34,976) - Salaries, oncosts and overtime.
(£5,125) - Travel costs lower than
anticipated. (£15,655) - Stationery and other
purchases. A request has been made to roll
forward the salary underspend
0
(5,093) (£5,093) - Recharges for the use of
envelopes.
63,101 Reduced recharges reflecting lower direct
costs.
Appendix B
Service Area Summaries Period 12 2013/14
Development Management
Cost Centre Name
Budget
£
Development Management
Planning Policy
Conservation & Design
Landscape
Building Control & Access
Planning Man And Comm Support *
Property Information
Total
Actuals
£
Variance
£
491,548
242,747
127,186
147,964
73,109
26,860
61,829
489,516
226,243
122,001
150,391
34,229
0
101,630
(2,032)
(16,504)
(5,185)
2,427
(38,880)
(26,860)
39,801
1,171,243
1,124,010
(47,233)
* These budgets represent Service Management & Support Service costs for the
Council. These costs are ultimately recharged in full to the final services, based on
an appropriate method of allocation, for example, percentage of time spent.
38
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Development Management
Full Year
Budget
£
Development Management
Gross Direct Costs
Actuals
£
Variance Explanation for Major Variances
£
18,910 £12,343 Year end superannuation
adjustments. (£3,947) Training budgets due
to service restructuring not spent in year.
£5,821 compensation payments not
budgeted for. (£8,000) Balance of costs in
respect of current legal challenges to
planning decisions.
748,601
767,511
47,437
(748,620)
47,437
(815,139)
0
(66,519) Additional Income due to large fee earning
applications, a request has been made to
earmark this for Plan review.
444,130
489,707
45,577 £19,529 Planning management, £8,741
Storage Depot, £24,561 housing Strategy
offset by reduction in Legal fess (£17,143).
Balance is minor variances.
491,548
489,516
(2,032)
238,670
227,175
0
4,077
242,747
(55)
(877)
226,243
(11,495) £8,135 Staffing costs due to no turnover and
employee inflation. (£20,262) Professional
Fees not spent in the year but earmarked for
future Plan review.
(55) No Major Variances
(4,954) No Major Variances
(16,504)
Conservation & Design
Gross Direct Costs
70,186
61,314
(8,872) (£8,171) Staff Turnover due to a vacant post.
Gross Direct Income
Management Unit Costs
(50)
57,050
0
60,687
127,186
122,001
70,454
77,510
147,964
69,869
80,522
150,391
277,703
(354,794)
252,988
(375,766)
150,200
73,109
157,007
34,229
342,282
347,594
(315,422)
(347,594)
26,860
0
Capital Charges
Gross Direct Income
Management Unit Costs
Planning Policy
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Landscape
Gross Direct Costs
Management Unit Costs
Building Control & Access
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Planning Man And Comm Support
Gross Direct Costs
Management Unit Costs
39
50 No Major Variances
3,637 £9,543 Legal Fees off set by a number of
smaller variances.
(5,185)
(585) No Major Variances
3,012 No Major Variances
2,427
(24,715) Vacant Post in structure.
(20,972) Income levels achieved above self financing
budget; this has been transferred to the
earmarked reserve.
6,807 No Major Variances.
(38,880)
5,312 £6,271 Year end Superannuation adjustment.
(32,172) (£19,529) Development Management, the
balance is made up of minor variations.
(26,860)
Appendix B
Development Management
Full Year
Budget
£
Property Information
Gross Direct Costs
Actuals
£
Variance Explanation for Major Variances
£
223,389
260,104
(248,000)
(256,867)
Management Unit Costs
86,440
61,829
98,393
101,630
Service Area Summary
1,171,243
1,124,010
Gross Direct Income
40
36,715 £3,413 Superannuation adjustments.
£30,457 Legal fees re Tinklers land charge
claims, this is funded from a new burdens
Government grant.
(8,867) (£7,131) Inspire Grant received in respect of
Graphic Information System (GIS) works.
11,953 £11,717 ICT support re GIS.
39,801
(47,233)
Appendix B
Service Area Summaries Period 12 2013/14
Environmental Health
Cost Centre Name
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Signage
Pest Control
Environmental Protection
Dog Control
Env Health - Service Mgmt *
Waste Collection And Disposal
Cleansing
Environmental Strategy
Community Safety
Civil Contingencies
Total
Budget
£
464,536
353,303
101,120
67,472
39,384
17,685
646,563
57,418
5,200
1,664,128
732,097
60,255
14,650
129,328
Actuals
£
495,087
353,298
96,255
20,049
29,383
13,807
604,639
58,332
0
1,647,682
729,593
43,961
8,473
128,927
Variance
£
30,551
(5)
(4,865)
(47,423)
(10,001)
(3,878)
(41,924)
914
(5,200)
(16,446)
(2,504)
(16,294)
(6,177)
(401)
4,353,139
4,229,486
(123,653)
* These budgets represent Service Management & Support Service costs for
the Council. These costs are ultimately recharged in full to the final services,
based on an appropriate method of allocation, for example, percentage of
time spent.
41
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Environmental Health
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Commercial Services
Gross Direct Costs
Gross Direct Income
360,720
(19,934)
370,155
(18,381)
Management Unit Costs
123,750
143,313
19,563 Increased recharges of £9,236 from IT,
£4,823 Admin buildings & £5,758 Central
costs.
464,536
495,087
30,551
352,923
380
353,303
352,923
375
353,298
4,000
(1,832)
97,800
(4,000)
97,800
(1,488)
3,320
101,120
1,775
96,255
110,525
0
(170,183)
113,362
(4)
(192,570)
127,130
99,261
(27,869) (£16,101) Reduced recharges from Legal
Services reflecting a more accurate allocation
of time and (£5,776) from Sundry Debtors
reflecting fewer invoices raised on behalf of
service. The balance consists of minor
variances .
67,472
20,049
(47,423)
26,926
18,372
10,148
0
2,310
39,384
10,152
(131)
990
29,383
(8,554) No major variances - miscellaneous supplies
and services underspent
4 No major variances
(131) No major variances
(1,320) No major variances
(10,001)
14,750
(3,945)
6,880
12,722
(3,457)
4,542
17,685
13,807
Rural Sewerage Schemes
Gross Direct Costs
Management Unit Costs
Travellers
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Licensing
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Street Signage
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Pest Control
Gross Direct Costs
Gross Direct Income
Management Unit Costs
42
9,435 Pension fund adjustments
1,553 No major variances
0 No variances
(5) No variances
(5)
(5,832) Reffcus adjustment re lease expenditure.
0
2,512 Contributions collected lower than budget due
to a lower level of occupancy than expected.
(1,545) No major variances
(4,865)
2,837 No major variances
(4) No major variances
(22,387) (£8,538) Additional general licensing income
from new applications and variations.
(£8,367) Additional taxi licensing income
above the budgeted level. This has been
requested to be rolled forward into an
earmarked reserve. (£4,575) Additional fee
income from new licences for scrap metal
dealers.
(2,028) No major variances
488 No major variances
(2,338) Reduced recharge from Insurance which is
allocated by head count.
(3,878)
Appendix B
Environmental Health
Full Year
Budget
£
Actuals
£
Variance
£
Environmental Protection
Gross Direct Costs
467,853
509,837
Capital Charges
Gross Direct Income
Management Unit Costs
3,600
(8,230)
183,340
3,600
(58,574)
149,776
646,563
604,639
39,188
(1,000)
19,230
57,418
38,113
(1,221)
21,440
58,332
142,698
128,006
7,337
(650)
(144,185)
7,337
(365)
(134,978)
5,200
0
3,924,210
468,415
(2,945,157)
216,660
3,893,918
468,415
(2,938,446)
223,795
1,664,128
1,647,682
Dog Control
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Env Health - Service Mgmt
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Waste Collection And Disposal
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Explanation for Major Variances
41,984 £14,029 Rechargeable works; £9,189
Enforcement Board work (funded from
Enforcement Board Reserve); £28,292 Bad
debt provision - these are offset by savings in
a number of demand led supplies & services
budgets which include contaminated land and
assisted burials.
0
(50,344) Recharges for rechargeable works
(33,564) (£27,688) Reduced recharges from Legal
Services, Environmental Health &
Performance Management reflecting a more
accurate allocation of time. £5,862 increased
recharge from Admin Buildings. The balance
consists of minor variances.
(41,924)
(1,075) No major variances
(221) No major variances
2,210 No major variances
914
(14,692) (£5,323) Underspend in training expenditure.
The balance is made up of a number of
savings for supplies and services including
computer hardware, postage and mobile
telephone call charges. Balance comprises of
minor variances.
0
285 No major variances
9,207 Reduced recharges reflecting lower direct
costs.
(5,200)
(30,292) See Note A below
0
6,711 See Note B below
7,135 (£7,317) Reduced charges from Accountancy;
£16,586 Increased recharges from Sundry
debtors and Environmental Health
(16,446)
Note A: £9,087 Additional costs for replacement of damaged bins. (£42,607) Recycling initiatives not spent this year- request
to be transferred to an earmarked Reserve. (£32,332) Commercial disposal costs. £25,921 Costs associated with Storm
Damage. £8,443 Salary and oncosts - regradings from updated job descriptions and additional hours worked in respect of
evening/weekend work for inspections and presentations, offset by savings of (£4,980) for vehicle repairs and travelling costs.
£4,996 Additional costs for tipping away (transfer of waste outside of our area) - this is offset by additional income.
Note B: (£16,101) Insurance claim - Storm Damage. £23,814 Lower profit share due to reduction in recyclable tonnage.
£14,812 Reduction in trade waste fee income due to lower customer numbers and application of discounts. (£5,592) Additional
income from bulky waste collections. (£4,996) Additional income for Tipping Away. (£3,650) Higher recycling credits.
43
Appendix B
Environmental Health
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Cleansing
Gross Direct Costs
751,114
757,377
Gross Direct Income
(40,607)
(45,894)
(5,287) Additional income from dog and litter bin
recharges
Management Unit Costs
21,590
732,097
18,110
729,593
(3,480) No major variances
(2,504)
39,239
7,716
(10,000)
37,884
7,716
(13,920)
(1,355) No major variances
0
(3,920) Additional income from sponsorship and
exhibitor fees for the Green Build event.
23,300
12,281
(11,019) Recharges amended following officer
restructure.
60,255
43,961
(16,294)
10,000
6,643
(3,357) Contributions to Victory Housing for the
Community Safety Officer were suspended.
4,650
14,650
1,830
8,473
(2,820) No major variances
(6,177)
Civil Contingencies
Gross Direct Costs
87,708
85,831
Gross Direct Income
0
(3,628)
41,620
129,328
46,724
128,927
4,353,139
4,229,486
Environmental Strategy
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Community Safety
Gross Direct Costs
Management Unit Costs
Management Unit Costs
Service Area Total
44
6,263 Regradings from updated job descriptions.
Additional hours - evening/weekend work
(inspections/office moves/ presentations).
(1,877) £6,184 Storm Damage - offset by
underspends in training, travelling and a
number of misc. supplies and services.
(3,628) Insurance claim accrual for Storm Damage.
5,104 No major variances
(401)
(123,653)
Appendix B
Service Area Summaries Period 12 2013/14
Finance
Cost Centre Name
Budget
£
Actuals
£
Variance
£
Local Taxation
Benefits
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Mgmt *
Corporate Finance *
Internal Audit *
Central Costs *
Corporate & Democratic Core
509,210
1,014,620
252,707
15,324
0
(1,451)
0
0
1,226,371
456,384 (52,826)
852,590 (162,030)
165,917 (86,790)
23,000
7,676
0
0
0
1,451
0
0
0
0
1,220,190
(6,181)
Total
3,016,781
2,718,081 (298,700)
* These budgets represent Service Management & Support Service costs
for the Council. These costs are ultimately recharged in full to the final
services, based on an appropriate method of allocation, for example,
percentage of time spent.
45
Appendix B
General Fund Variances by Service Area - Period 12 -2013-14
Finance
Full Year
Budget
£
Local Taxation
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
620,707
639,021
18,314 £10,093 Overtime. £6,887 Superannuation
adjustments. £27,727 Bad debt write offs
and provision for bad and doubtful debts not
budgeted for at service level. (£35,000)
Software Licence re New Council Tax
Support still in negotiation with Civica.
£7,183 Software purchases offset by grant
funding.
15,000
0
(15,000) Interest on Business rate overpayments, no
payments made in year, this is offset by no
income transferred from Collection Fund.
(542,897)
(568,709)
Management Unit Costs
416,400
386,072
Net Expenditure
509,210
456,384
Capital Charges
Gross Direct Income
Benefits
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Net Expenditure
(25,812) (£40,812) Income from Court Costs
recovered. £15,000 Contra with Business
Rate Interest no transfer from Collection
Fund necessary.
(30,328) (£44,080) ICT recharges £31,878 Purchase
Ledger. £11,245 Admin Buildings. (£12,114)
Revs and Bens Management.
(52,826)
27,305,168 29,267,840 1,962,672 See Note A below
85,289
85,289
0
(27,004,797) (29,064,596) (2,059,799) (£1,856,434) Subsidy on Rent Allowance
payments and Discretionary Housing
payments. (£184,007) benefits overpayments
not collected from ongoing benefit. (£10,603)
Income from DWP & Other authorities to
offset additional expenditure. (£8,755) Misc
Income)
628,960
564,057
(64,903) (£14,450) Legal. (£10,179) Performance
Management. (£15,741) Sundry Income.
(£20,550) Fakenham Connect.£19,364
Admin Buildings. (£10,096) Revs and Bens
Management.
1,014,620
852,590
(162,030)
Note A: £8,369 Superannuation adjustments. (£58,741) Staff Turnover savings from vacant posts.(£6,742) savings in
transport costs. £11,456 Training expenditure partially offset by recharge to other authorities. £12,124 Software changes
funded from Department for Works and Pensions (DWP) grant. £1,898,446 Rent Allowance benefit payments above budget,
this is offset by additional subsidy. £59,214 Bad debt write offs and provision for bad and doubtful debts not budgeted for at
service level. £35,937 Balance of shared services partnership project expenditure.
Discrectionary Payments
Gross Direct Costs
252,707
163,539
(89,168) Discretionary rate relief - no longer
accounted for at the service level, funding
now within business rates retention system.
Management Unit Costs
Net Expenditure
0
252,707
2,378
165,917
2,378 No Major Variances.
(86,790)
46
Appendix B
Finance
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Non Distributed Costs
Gross Direct Costs
314,185
317,275
IAS 19
Management Unit Costs
Net Expenditure
(300,441)
1,580
15,324
(294,275)
0
23,000
6,166 Pension adjustment
(1,580) No Major Variances.
7,676
Benefits & Revenues Mgmt
Gross Direct Costs
Management Unit Costs
Net Expenditure
73,330
(73,330)
0
73,950
(73,950)
0
620 No Major Variances
(620) No Major Variances
0
Corporate Finance
Gross Direct Costs
476,966
478,381
11,594
(490,011)
(1,451)
11,594
(489,975)
0
1,415 £8,280 Superannuation Adjustments offfset
by staff turnover savings.
0
36 No Major Variances.
1,451
109,613
85,630
(23,983) (£23,850) - Internal audit costs lower than
anticipated. Partly due to a variation to the
2013/14 Internal Audit plan, which will be
delivered in 2014/15. An element of the
underspend has been carried forward.
(109,613)
(85,630)
0
0
23,983 Reduced recharges reflecting lower direct
costs.
0
42,614
36,841
0
(42,614)
(9)
(36,832)
0
0
392,494
0
833,877
395,100
(2,400)
827,490
Net Expenditure
1,226,371
1,220,190
Service Area Summary
3,016,781
2,718,081
Capital Charges
Management Unit Costs
Net Expenditure
Internal Audit
Gross Direct Costs
Management Unit Costs
Net Expenditure
Central Costs
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Net Expenditure
Corporate & Democratic Core
Gross Direct Costs
Gross Direct Income
Management Unit Costs
47
3,090 This budget reflects notional charges in
relation to IAS 19 pension costs. The
variance consists of £23,000 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.
(5,773) (£5,037) - Salaries and oncosts lower than
anticipated.
(9) No Major Variances
5,782 Reduced recharges reflecting lower direct
costs.
0
2,606 No Major Variance
(2,400) No Major Variance
(6,387) £35,271 - Increased recharge from
Accountancy reflecting a more accurate
allocation of time.
(6,181)
(298,700)
Appendix B
Service Area Summaries P12 2013/14
Organisational Development
Cost Centre Name
Budget
Actuals
Variance
£
£
£
Human Resources & Payroll *
Insurance & Risk Management *
Policy & Performance Mgt *
Registration Services
Members Services
22,100
(3,239)
(64,369)
326,181
553,097
0
0
0
299,087
579,334
(22,100)
3,239
64,369
(27,094)
26,237
Total
833,770
878,421
44,651
* These budgets represent Service Management & Support Service costs for
the Council. These costs are ultimately recharged in full to the final services,
based on an appropriate method of allocation, for example, percentage of
time spent.
48
Appendix B
General Fund Variances by Service Area - Period 12 - 2013-14
Organisational Development
Full Year
Budget
£
Human Resources & Payroll
Gross Direct Costs
Actuals
£
Variance
Explanation for Major Variances
£
365,643
334,209
(5,000)
(338,543)
(3,696)
(330,513)
22,100
0
247,589
252,185
(650)
(250,178)
(88)
(252,097)
(3,239)
0
55,123
(119,492)
50,849
(50,849)
(64,369)
0
Registration Services
Gross Direct Costs
177,185
182,327
Gross Direct Income
(12,944)
(44,619)
Management Unit Costs
161,940
326,181
161,379
299,087
(561) No Major Variance
(27,094)
440,887
426,646
(400)
(228)
(14,241) (£4,725) - Salaries and oncosts. (£7,507) Expenditure not incurred on computer
hardware, a request has been made to roll
this forward.
172 No Major Variance
112,610
152,916
553,097
579,334
40,306 £28,679 - Increased recharge from
Personnel & Human Resources reflecting
officer restructure.
26,237
833,770
878,421
44,651
Gross Direct Income
Management Unit Costs
Insurance & Risk Management
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Policy & Performance Mgt
Gross Direct Costs
Management Unit Costs
Members Services
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Service Area Total
49
(31,434) £17,389 - Salaries and oncosts including
pension fund adjustments. (£41,624) Corporate training programme expenditure
lower than expected. This underspend has
been carried forward within an earmarked
reserve to cover costs relating to officer
training and Members' induction training.
1,304 No Major Variance
8,030 Reduced recharges reflecting lower direct
costs.
(22,100)
4,596 £10,786 - Payment of Insurance Levy. This
has been offset by minor savings in
premiums.
562 No Major Variance
(1,919) Increased recharges reflecting higher direct
costs.
3,239
(4,274) No Major Variance
68,643 Reduced recharges reflecting lower direct
costs.
64,369
5,142 £5,802 - Salaries and oncosts including
pension fund adjustments.
(31,675) (£15,060) - Grant from the Cabinet Office for
implementing Individual Electoral
Registration, which will be required in
2014/15. (£16,000) - Recoverable postage
costs consisting of an additional £6,000 in
relation to the Police & Crime Commissioner
election and £10,000 in relation to the
Norfolk County Council election.
Reserves Statement 2013/14 Outturn
Reserve
Purpose and Use of Reserve
Appendix C
Balance
2013/14
2014/15
Balance at
Outturn
Budgeted
at
1/4/2014
Movement
31/3/2013 Movement
£
£
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.75 million.
1,745,452
£
£
0
1,745,452
Earmarked Reserves:
Balance
2015/16
2016/17
2017/18
Balance
Balance
Balance
Forecast
Forecast
Forecast
at
01/04/16
01/04/17
01/04/18
Movement
Movement
01/04/15 Movement
£
£
£
£
£
£
£
(249,232) 1,496,220
0 1,496,220
0 1,496,220
0 1,496,220
(363,562) 1,616,786
0 1,616,786
0 1,616,786
0 1,616,786
0
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
2,063,225
(82,877)
1,980,348
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
64,718
(17,291)
47,427
(10,983)
36,444
0
36,444
0
36,444
0
36,444
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.
671,792
50,000
721,792
(50,000)
671,792
0
671,792
0
671,792
0
671,792
Big Society Fund
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.
542,065
427,862
969,927
(368,283)
601,644
0
601,644
0
601,644
0
601,644
Building Control
Building Control surplus
0
45,688
45,688
0
45,688
0
45,688
0
45,688
0
45,688
Business Rates
To be used to mitigate the impact of final claims and appeals
in relation to business rates retention scheme.
0
327,329
327,329
0
327,329
0
327,329
0
327,329
0
327,329
Carbon
Management
To fund revenue invest to save initiatives and projects within
the Carbon Management Plan.
21,180
(21,180)
0
0
0
0
0
0
0
0
0
Coast Protection
To support the ongoing coast protection maintenance
programme and carry forward funding between financial
years.
60,000
183,167
243,167
(243,167)
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.
36,270
40,749
77,019
(49,569)
27,450
0
27,450
0
27,450
0
27,450
50
Reserves Statement 2013/14 Outturn
Reserve
Purpose and Use of Reserve
Appendix C
Balance
2013/14
2014/15
Balance at
Outturn
Budgeted
at
1/4/2014
Movement
31/3/2013 Movement
£
£
£
£
Balance
2015/16
2016/17
2017/18
Balance
Balance
Balance
Forecast
Forecast
Forecast
at
01/04/16
01/04/17
01/04/18
Movement
Movement
01/04/15 Movement
£
£
£
£
£
£
£
Economic
Development and
Tourism
Earmarked from previous underspends within Economic
Development and Tourism Budgets along with funding
earmarked for Learning for Everyone.
32,248
(19,000)
13,248
0
13,248
0
13,248
0
13,248
0
13,248
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
30,000
45,060
75,060
14,940
90,000
(60,000)
30,000
30,000
60,000
30,000
90,000
Enforcement Works
Established to meet costs associated with district council
enforcement works including buildings at risk .
0
146,967
146,967
(60,000)
86,967
0
86,967
0
86,967
0
86,967
Environmental
Health
Earmarking of previous underspends and additional income
to meet Environmental Health initiatives.
33,200
33,367
66,567
(53,367)
13,200
0
13,200
0
13,200
0
13,200
Environmental
Policy
Earmarking of a previous underspend to meet future costs of
environmental policy initiatives.
0
0
0
0
0
0
0
0
0
0
0
47,963
189,764
237,727
(237,727)
0
0
0
0
0
0
0
Grants
Revenue Grants received and due to timing issues not used
in the year.
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
242,000
(142,000)
100,000
0
100,000
0
100,000
0
100,000
0
100,000
Treasury (Property) Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
Reserve
66,068
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.
50,356
(10,457)
39,899
0
39,899
0
39,899
0
39,899
0
39,899
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
47,555
1,045
48,600
(48,600)
0
0
0
0
0
0
0
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
82,677
(30,949)
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
435,000
0
435,000
0
435,000
0
435,000
0
435,000
New Homes Bonus
Established for supporting communities with future growth
and development.
611,678
675,207
1,286,885
51
186,459 1,473,344
251,510 1,724,854
328,716 2,053,570
329,792 2,383,362
Reserves Statement 2013/14 Outturn
Reserve
Purpose and Use of Reserve
Appendix C
Balance
2013/14
2014/15
Balance at
Outturn
Budgeted
at
1/4/2014
Movement
31/3/2013 Movement
£
£
£
£
Balance
2015/16
2016/17
2017/18
Balance
Balance
Balance
Forecast
Forecast
Forecast
at
01/04/16
01/04/17
01/04/18
Movement
Movement
01/04/15 Movement
£
£
£
£
£
£
£
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies
within the pay structure.
69,997
37,698
107,695
(100,547)
7,148
0
7,148
0
7,148
0
7,148
Partnership Budgets
This reflects the balance of funding on the Revenues and
Benefits Partnership project. This will be utilised in 2013/14.
35,000
(35,000)
0
0
0
0
0
0
0
0
0
Pathfinder
To help Coastal Communities adapt to coastal changes.
265,825
(26,050)
239,775
(121,328)
118,447
(18,126)
100,321
(18,126)
82,195
(44,108)
38,087
Planning - Revenue
Additional Planning income earmarked for Planning initiatives
including Plan Review.
134,954
165,596
300,550
(152,839)
147,711
(4,000)
143,711
0
143,711
0
143,711
Regeneration
Projects
Carry forward of underspends relating to Regeneration
Projects.
37,837
0
37,837
0
37,837
0
37,837
0
37,837
0
37,837
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.
694,074
229,225
923,299
(171,200)
752,099
(38,000)
714,099
0
714,099
0
714,099
Sports Hall
To support renewals for sports hall equipment. Amount
Equipment & Sports transferred in the year represents over or under achievement
of income target.
Facilities
24,820
5,452
30,272
0
30,272
0
30,272
0
30,272
0
30,272
The pier
To be used to support the costs of works to Cromer pier.
15,000
(15,000)
0
0
0
0
0
0
0
0
0
Whistle blowing
Commissioning investigation activity as required.
10,000
(10,000)
0
0
0
0
0
0
0
0
0
Total Reserves
8,170,954
2,194,372 10,365,326 (2,079,005) 8,286,321
52
131,384 8,417,705
340,590 8,758,295
315,684 9,073,979
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Updated Budget
2013/14
Actual
Expenditure
Variance to
Updated Budget
Comments
Jobs and the Local Economy
Rocket House
50,156
5,240
(44,916)
This scheme is still in progress and the balance of the budget is
requested for slippage into 2014/15
Maltings Wells
100,000
100,000
0
The scheme is complete with the full grant payment having been
made to the Wells Maltings Trust.
5,000
0
(5,000)
This scheme has not been progressed and as such the balance
of budget is requested to be slipped into 2014/15.
153,923
178,353
24,430
This scheme is complete, with an overspend of £24,430. This
will be financed through a virement of £24,430 from the Admin
Buildings Capital Scheme.
15,000
310
(14,690)
This scheme is ongoing and the balance of budget is requested
for slippage into 2014/15.
324,079
283,903
(40,176)
Carbon Reduction Scheme
Car Park Resurfacing and Refurbishment
Public Conveniences (Plumbing and
Drainage)
Housing and Infrastructure
Disabled Facilities Grants
Housing Associations
477,536
819,950
534,316
397,100
53
56,780
Following significant slippage of the capital budget at period 9
2013/14, the payment of Disabled Facilities Grants increased in
the last 3 months. As a result a total of £56,780 of the budget
slipped into 2014/15 is required to be clawed back into 2013/14.
(422,850)
Delays in individual Housing Association schemes has meant
that not all payments anticipated have been made in 2013/14.
The balance of budget is requested to be slipped to 2014/15,
although in addition to this it is requested that the capital budget
be reduced by £27,567 which is the cost incurred by NNDC in
relation to the demolition of the Upper Sheringham Depot that is
to be transferred to Broadland Housing Association in the
2014/15 financial year.
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Strategic Housing & Choice Based Lettings
System
Equity Loans
Updated Budget
2013/14
20,000
Actual
Expenditure
33,150
Variance to
Updated Budget
Comments
13,150
This scheme is now complete. The actual capital expenditure
incurred exceeded the original budget by some £13,150, but
NNDC received some external contributions to these additional
costs, which resulted in NNDC resources being underspent by
£3,532.
A total of £47,000 was received for the purpose of provision of
equity share loans to enable homes to be improved in 2013/14.
The final payments of £14,910 have been made during 2013/14
and the balance of the grant has been repaid.
27,155
14,910
(12,245)
1,344,641
979,476
(365,165)
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
The capital budget for the Gypsy and Travellers sites has been
reprofiled to future financial years to reflect the accounting
periods to which it relates. The underspend of budget in
2013/14 is requested to be slipped to 2014/15.
45,646
45,531
(115)
494
643
149
546,655
588,712
42,057
The works on the Pier have progressed ahead of the profiled
budget. As such a clawback of £42,057 is required to cover the
additional expenditure incurred in 2013/14.
Sheringham Promenade Lighting
12,002
229
(11,773)
This scheme is still in progress and as such the unspent budget
balances is requested for slippage into 2014/15
Cromer Pier and West Prom Refurbishment
Project
49,890
1,191
(48,699)
This scheme is still in progress and as such the unspent budget
balances is requested for slippage into 2014/15
Refurbishment Works to the Seaside
Shelters
30,051
7,857
(22,194)
This scheme is still in progress and as such the unspent budget
balances is requested for slippage into 2014/15
Sheringham Beach Handrails
Cromer Pier Structural Works - Phase 2
54
This scheme is ongoing, and a clawback of £149 budget from
that previously slipped into 2014/15 is required to cover the
expenditure incurred in 2013/14
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Cromer Coast Protection Scheme 982 and
SEA
Updated Budget
2013/14
Actual
Expenditure
Variance to
Updated Budget
Comments
There has been a delay in the works under this scheme following
the Storm Surge in December 2013/14. It is therefore requested
that the unspent budget in year is slipped into 2014/15
3,119,000
1,349,991
(1,769,009)
312,232
12,874
(299,358)
Cromer to Winterton Scheme
23,377
21,460
(1,917)
Coastal Erosion Assistance
60,000
12,288
(47,712)
Chalet Repairs
35,738
37,095
1,357
Doctors Steps
18,461
6,867
(11,594)
The scheme has also been completed, and came in £11,594
under budget. The balance of budget is no longer required.
(66,618)
Following the Storm Surge in December, approval was given for
a grant of £765,000 to the authority from the Environment
Agency. The remaining balance of budget is requested for
slippage into the 2014/15 financial year.
Pathfinder Project
Storm Surge
765,000
698,382
Capital works against the Pathfinder scheme will continue into
the 2014/15 financial year and as such it is requested that the
unspent budget is slipped forwards.
The Cromer to Winterton scheme is to continue into the new
year and the unspent budget of £1,917 is therefore requested to
be slipped to 2014/15.
The scheme is to continue into the new year and the unspent
balance of £47,712 is therefore requested for slippage to
2014/15.
This scheme had been completed before the Storm Surge
occurred in December 2013.
Chalet Rebuild - Storm Surge
0
58,200
58,200
Following the Storm Surge significant capital expenditure was
incurred in relation to the rebuild of a number of chalets. This
rebuild is anticipated to be funded by the receipt of insurance
monies.
Pier - Storm Surge Works
0
88,676
88,676
Following the Storm Surge significant capital expenditure was
incurred in relation to works on the Pier This expenditure is
anticipated to be funded by the receipt of insurance monies.
5,018,546
2,929,996
(2,088,550)
55
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Updated Budget
2013/14
Actual
Expenditure
Variance to
Updated Budget
Comments
Localism
Big Society Fund
Victory Swim and Fitness Centre
Play Areas
225,000
112,000
(113,000)
The variance in year on this scheme relates to the capital
elements of the Big society Fund enabling budgets not being
incurred in year. The balance of budget of £113,000 is
requested for slippage into 2014/15
54,370
0
(54,370)
This scheme has been subject to a delay and the remaining
budget is requested for slippage into 2014/15.
100,000
9,191
(90,809)
The scheme has commenced, and it is requested that the
balance of budget is slipped into the 2014/15 financial year.
379,370
121,191
(258,179)
Delivering the Vision
Trade Waste Bins/ Waste Vehicle
Reception Project
Personal Computer Replacement Fund
Waste Management & Environmental Health
IT System
29,387
41,805
12,418
Following slippage of £92,301 into 2014/15, as part of the
Period 9 budget monitoring, the capital expenditure incurred
exceeded the balance of budget in year. As such a clawback of
£12,418 is required from the 2014/15 budget in order to finance
the additional expenditure in 2013/14.
140,540
154,544
14,004
The reception project has been completed, but an overspend of
£14,004 has been incurred which relates to further works
identified post implementation, e.g. screening to meeting rooms .
This is to be financed in year from an RCCO from an
underspend within the customer services revenue budget.
20,000
18,321
(1,679)
This scheme is continuing into 2014/15, and as such the balance
of budget is requested for slippage into the new financial year.
5,494
5,149
(345)
This scheme is continuing into 2014/15, and as such the balance
of budget is requested for slippage into the new financial year.
56
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Updated Budget
2013/14
Actual
Expenditure
Variance to
Updated Budget
Comments
This scheme is continuing into 2014/15, and as such the balance
of budget is requested for slippage into the new financial year.
12,407
597
(11,810)
2,410
2,850
440
Procurement for Upgrade of Civica System
163,240
44,143
(119,098)
This scheme is progressing and will continue into the new
financial year. The balance of budget of £119,098 is requested
for slippage to 2014/15.
e-Financials Financial Management System
Software Upgrade
11,950
456
(11,494)
The scheme is progressing and will continue into the new
financial year. The balance of £11,494 is requested for slippage
to 2014/15.
100,246
117,306
17,060
This scheme is ongoing, and a clawback of £17,060 budget from
that previously slipped into 2014/15 is required to cover the
expenditure incurred in 2013/14.
0
98
98
This scheme is ongoing, and a clawback of £98 budget from that
previously slipped into 2014/15 is required to cover the
expenditure incurred in 2013/14.
Committee Management Information System
16,000
12,500
(3,500)
This scheme is progressing and will continue into the new
financial year. The remaining balance of budget is requested for
slippage to 2014/15.
PC Replacement and Mobile Technology
65,000
64,324
(676)
Asset Management Computer System
Probass 3
Administrative Buildings
Replacement of Planning Printer and Scanner
Handyman Vehicle
13,200
13,696
57
496
This scheme has been completed, but an overspend of £440
has been incurred against a total budget of £34,010 . This
additional expenditure is to be financed from capital receipts.
This scheme has been completed, and the underspend is
requested to be vired to the Personal Computer Replacement
Fund capital scheme to fund further replacement machines.
This scheme has been completed and has come in with a minor
overspend of £496. The expenditure is to be fully funded from
the Capital Projects Reserve in year, with the Handyman
function making contributions to the reserve from revenue to
cover this in future years.
Appendix D
GENERAL FUND CAPITAL PROGRAMME - OUTTURN
Scheme
Updated Budget
2013/14
Actual
Expenditure
Variance to
Updated Budget
0
10,819
10,819
579,874
486,607
(93,267)
7,646,510
4,801,174
(2,845,336)
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
Other Grants
Affordable Housing Contributions
Other Contributions
Asset Management Reserve
Big Society Fund Reserve
Revenue Contribution to Capital (RCCO)
Capital Project Reserve
Capital Receipts
3,967,377
357,878
443,000
27,155
50,996
8,000
4,580
0
38,200
780,781
1,968,543
2,082,121
58,405
447,717
14,910
50,996
164,587
597
112,000
24,823
462,868
1,382,150
TOTAL FINANCING
7,646,510
4,801,174
1,885,256
299,473
(4,717)
12,245
0
(156,587)
3,983
(112,000)
13,377
317,913
586,393
0
2,845,336
Purchase of DELL PE720XD
Capital Programme Financing
58
Comments
The purchase of this equipment was identified as capital as it
exceeded our deminimus level of £10,000. The expenditure is to
be funded in year from a revenue contribution to capital outlay.
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
£
£
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
50,000
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
77,084
10,295
39,705
0
0
39,705
0
0
32,168
0
44,916
0
44,916
0
0
68,379
0
5,000
0
5,000
0
0
310
0
14,690
0
14,690
0
0
0
0
0
110,000
110,000
0
0
111,152
39,705
64,606
110,000
214,311
0
0
Financed by;
NNDC (Capital Receipts)
77,084
Carbon Reduction Scheme
Financed by;
73,379
NNDC (Cap Receipts - Carbon Reduction Fund)
73,379
Public Conveniences (Plumbing and Drainage)
15,000
Financed by;
NNCD (Capital Receipts)
15,000
Council Car Park Improvements 2014/15
110,000
Financed by;
NNCD (Capital Receipts)
110,000
325,463
Housing and Infrastructure
Disabled Facilities Grants
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
Annual programme
0
1,350,000
(56,780)
0
1,293,220
772,578
0
Housing Associations
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Annual programme
0
105,150
422,850
(27,457)
500,543
0
0
59
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Housing Loans to Registered Providers
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
£
£
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
0
3,500,000
0
0
3,500,000
0
0
0
100,000
0
0
100,000
0
0
3,600,000
0
5,055,150
366,070
(27,457)
5,393,763
772,578
0
1,409,000
1,148,885
40,000
115
0
40,115
220,000
0
37,671
2,501
(149)
0
2,352
0
0
1,280,688
180,000
(42,057)
0
137,943
0
0
67,727
0
11,773
0
11,773
0
0
1,301
150,000
48,699
0
198,699
0
0
3,500,000
Financed by;
Capital Receipts
Capital Projects Reserve
2,484,769
90,800
Internal/External Borrowing
924,431
Parkland Improvements
Financed by;
NNDC (Capital Receipts)
100,000
100,000
Coast, Countryside and Built Heritage
Gypsy and Traveller Short Stay Stopping
Facilities
Financed by:
Grant
Sheringham Beach Handrails
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Capital Receipts)
Cromer Pier Structural Works - Phase 2
Financed by;
NNDC (Capital Receipts)
Sheringham Promenade Lighting
Financed by;
NNDC (Capital Receipts)
Other Contributions
Cromer Pier and West Prom Refurbishment
Project
Financed by:
NNDC (Capital Receipts)
1,409,000
40,023
5,023
35,000
1,418,631
1,418,631
79,500
46,500
33,000
200,000
200,000
60
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
£
£
Refurbishment Works to the Seaside Shelters
153,500
Financed by:
NNDC (Capital Receipts)
153,500
Cromer Coast Protection Scheme 982 and SEA
10,400,000
Financed by:
Environment Agency Grant
10,400,000
Pathfinder Project
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
Financed by:
Environment Agency Grant
Coastal Erosion Assistance
Financed by:
Government Grant
1,967,015
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
41,306
90,000
22,194
0
112,194
0
0
1,670,701
6,960,290
1,769,009
0
8,729,299
0
0
1,667,657
0
299,358
0
299,358
0
0
78,083
30,000
1,917
0
31,917
0
0
12,228
0
47,772
30,000
77,772
0
0
698,382
0
66,618
0
66,618
0
0
0
590,000
0
0
590,000
0
0
0
70,000
0
0
70,000
0
2,151,000
6,704,629
8,112,791
2,225,249
30,000
10,368,040
220,000
2,151,000
1,967,015
110,000
110,000
90,000
90,000
Storm Surge
Financed by;
Environment Agency Grant
765,000
Sheringham West Prom
Financed by;
NNDC (Capital Receipts)
Environment Agency Grant
590,000
765,000
215,000
375,000
Mundesley - Refurbishment of Coastal Defences
2,221,000
Financed by;
NNDC (Capital Receipts)
Environment Agency Grant
307,000
1,914,000
19,443,669
61
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
£
£
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
Localism
732
196,268
0
0
196,268
0
0
394,000
0
113,000
0
113,000
0
0
17,045
52,955
0
0
52,955
0
0
0
0
54,370
0
54,370
0
0
9,191
0
90,809
0
90,809
0
0
0
60,000
0
0
60,000
0
0
0
30,000
0
0
30,000
0
0
1,018,370
420,968
339,223
258,179
0
597,402
0
0
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
272,700
192,817
92,301
(12,418)
0
79,883
0
0
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
204,958
162,603
20,000
1,679
676
22,355
20,000
0
North Lodge Park
Financed by;
NNCD (Capital Receipts)
197,000
Big Society Fund
Financed by:
NNDC (Capital Receipts)
RCCO
507,000
197,000
482,000
25,000
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
70,000
Victory Swim and Fitness Centre
Financed by;
NNCD (Capital Receipts)
54,370
70,000
54,370
Play Areas
Financed by;
NNCD (Capital Receipts)
100,000
Splash Roof Repairs
Financed by;
NNCD (Capital Receipts)
Other Contributions
60,000
Steelwork Protection to Victory Pool
Financed by;
NNCD (Capital Receipts)
30,000
100,000
30,000
30,000
30,000
Delivering the Vision
194,784
77,916
161,322
43,636
62
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Waste Management & Environmental Health IT
System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
Administrative Buildings
Financed by;
NNDC (Capital Receipts)
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
£
£
232,427
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
221,082
11,000
345
0
11,345
0
0
63,190
0
11,810
0
11,810
0
0
187,058
0
119,098
0
119,098
0
0
21,506
0
11,494
0
11,494
0
0
124,060
168,000
(17,060)
(24,430)
126,510
0
0
98
21,000
(98)
0
20,902
0
0
12,500
0
3,500
0
3,500
0
0
0
10,000
0
0
10,000
0
0
0
27,185
0
0
27,185
0
0
131,514
83,486
17,427
75,000
60,000
15,000
306,156
210,947
53,800
41,409
33,000
33,000
250,570
250,570
Replacement of Planning Printer and Scanner
Financed by:
NNDC (Capital Receipts)
21,000
Committee Management Information System
Financed by:
NNDC (Capital Receipts)
16,000
Cash Receipting System Upgrade
Financed by:
NNDC (Capital Receipts)
10,000
Planning Probass 4
Financed by:
NNDC (Capital Receipts)
27,185
21,000
16,000
10,000
27,185
63
Appendix E
GENERAL FUND CAPITAL PROGRAMME - 2014/15 onwards
Scheme
Planning System (Scanning of Old Files)
Financed by:
NNDC (Capital Receipts)
Scheme Total
Current Estimate
Pre 31/3/14
Actual
Expenditure
£
£
Original Budget
14/15
Slippage to
2014/15 at
Outturn
£
£
Amendments to
Amended Budget Updated Budget
2014/15 at
2014/15
2015/16
Outturn
£
£
£
Updated Budget
2016/17
£
0
60,000
0
0
60,000
0
0
0
100,000
0
0
100,000
0
0
0
0
0
90,000
90,000
0
0
1,698,996
984,914
509,486
118,350
66,246
694,082
20,000
0
26,086,498
8,221,663
14,056,355
3,032,454
178,789
17,267,598
1,012,578
2,151,000
9,350,606
339,473
466,046
0
0
7,771
3,983
0
599,170
5,546,118
954,431
0
220,000
443,000
0
0
0
0
0
0
349,578
0
1,844,000
0
0
0
0
0
0
0
0
307,000
0
17,267,598
1,012,578
2,151,000
60,000
60,000
IT Network Switches
Financed by:
NNDC (Capital Receipts)
100,000
Telephony Procurement
Financed by:
NNDC (Capital Receipts)
90,000
100,000
90,000
Capital Programme Financing
Environment Agency Grant
DEFRA Grant
Disabled Facilities Grants
Other Grants
Affordable Housing Contributions
Other Contributions
Asset Management Reserve
Revenue Contribution to Capital (RCCO)
Capital Project Reserve
Capital Receipts
Internal / External Borrowing
TOTAL FINANCING
64
Agenda Item No_____11_______
BANKING TENDER
Summary:
This report informs members of the progress to date in
relation to the procurement exercise to obtain a new
banking services provider. The Council is part of a
Norfolk wide procurement process with all the Norfolk
Districts, along with Norfolk County Council and the
Police. The current timetable allows for an award date
during the 2014 summer. In order that the timescales
can be met this report is recommending delegation to
officers for the award of the contract.
Options considered:
None
Conclusions:
The joint banking tender process is in progress, in order
that timescales can be met, this report recommends
delegation to officers for the award of the contract.
Recommendations:
It is recommended that:
1) Cabinet delegate the decision to award a
contract for banking services to the Head of
Finance in consultation with the portfolio
holder for finance.
Reasons for
Recommendations:
To ensure that the procurement timescales for award of
banking contract can be met.
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
Cllr Wyndham Northam
All
Contact Officer, telephone number and email:
Karen Sly, 01263 516243 karen.sly@north-norfolk.gov.uk
1.
Introduction and Background
1.1.
The Council currently banks with the Co-operative Bank under a contract
which ends in March 2015.
1.2.
Last year Moody’s downgraded the long-term rating of the Co-op Bank from
A3 to Ba3, which is sub-investment grade. The downgrade reflected the
agency’s opinion that the bank faced the risk of further substantial losses. In
June 2013 the Co-op announced it had a £1.5bn capital shortfall which it
planned to meet by raising money from its bondholders and sale of its
65
insurance business. Moody’s downgraded the bank’s long-term rating to Caa1
whilst Fitch downgraded the long-term from BBB- to BB-. The Co-op as the
Council’s banker is not on the lending list for treasury investments, however
there is daylight exposure to the institution. To mitigate exposure in the event
of a failure by the bank, credit balances with the bank are kept to a minimum
each day and an alternative banking arrangement has been set up should it
be required at short notice.
1.3.
In November last year the Co-operative announced that it would be
withdrawing from providing banking services to Local Authorities and would
support Authorities that wanted to move banking providers prior to their
contract end date.
1.4.
Currently all Norfolk local authorities and the police are with the Co-operative
bank for banking services, the individual end dates are staggered between
2014 and 2017.
1.5.
Officers from each of the Norfolk authorities have been working together to
conduct a joint tender exercise through Official Journal of the European Union
(OJEU) to procure a new banking provider. It is anticipated that the combined
transactions volumes should make this tender more attractive to the banks.
Soft market testing as part of the process has produced five banks which may
be interested in bidding for the contract.
1.6.
The current contract incorporates all banking services including the bill
payment service which allows payments to be accepted through post offices
and PayPoint outlets. Future provision of these payment services will need to
be considered as part of a separate process and will be dependent upon the
service providers.
2.
Timetable
2.1
The invitation to tender was drawn up with the assistance of a jointly
appointed banking consultant. Funding from the East of England LGA has
been provided to cover some of the costs of the banking consultant. All
Authorities are represented on the project steering group and will be
represented on the evaluation and interview panels.
2.2
The result of the procurement will be a single banking provider across
Norfolk, but each Council will have its own contract that reflects its own
service specification for a period of 7 years with the option to extend for a
further 3 years.
2.3
As mentioned earlier the current contract end dates are staggered for those
involved in the procurement between 2014 and 2017. There will need to be a
programme of moving to the new banking provider recognising that the new
bank will need to support each of the authorities and this will be taken
account of as part of the mobilisation timetable.
3.
Conclusion
3.1
In order that the procurement timetable can be met this report recommends
that delegated authority is given to the Head of Finance in consultation with
the portfolio holder to award the contract.
4.
Financial Implications and Risks
66
4.1
Current Contract End Date – there is a risk that the current contract will need
to be extended should the overall timescale of the procurement not be met.
4.2
New Bank Implementation – timescales for transition to the new bank and
support from Co-op pending full transfer is not available.
4.3
Contract Costs – above the current level budgeted, the current contract costs
for all Co-op banking services is less than £52,000 There is a risk that the
new banking contract will exceed the current budgeted figure of £55,000.
4.4
Security of the Council’s daily financial exposure needs to be paramount to
any new provider.
5.
Sustainability – None directly.
6.
Equality and Diversity – None directly.
7.
Section 17 Crime and Disorder considerations – None directly.
67
Cabinet
9 June 2014
Agenda No. _____12______
Debt Recovery 2013-14
Summary:
Recommendations:
This is an annual report detailing the council’s collection performance
and debt management arrangements for 2013/14
The report includes a:
 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
Members are asked to:

Approve the annual report giving details of the Council’s writeoffs in accordance with the Council’s Debt Write-Off Policy and
performance in relation to revenues collection.
Cabinet member(s):
All
Contact Officer, telephone number,
and e-mail:
1
All
All
Louise Wolsey 01263 516081
louise.wolsey@north-norfolk.gov.uk
Introduction
1.1.
The Corporate Debt Management and Recovery Policy at Appendix F has been revised
to reflect the changes in the use of bailiffs. This annual report is one of the performance
management measures to provide members with outturn figures for 2013/14 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
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.
68
Cabinet
9 June 2014
Table 1
Income
Area
Year/Date
Council
Tax
Total
Arrears at
31st March
All
Years
(after write
offs)*
Current
%
of
Years
Current
Arrears
Arrears
Included
v
Net
(after write –
Debit
offs)
Provision
for
Bad/Doubtful
Debt for all
years
2010/11
£1,596,946
£756,064
1.39%
£570,910
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
2010/11
£216,850
£151,995
0.73%
£130,880
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
NNDR
*This is the cumulative arrears (excludes costs) for all years including 2013/14.
** This is the arrears figure as at 31/3/2014. Collection of the 2013/14 debt is ongoing and
£165,505 council tax and £35,699 NNDR has been collected since that date against previous
year’s arrears.
Table 2
Table 2 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.
Income Area
Year
Total Arrears at
Net
Debit % outstanding Provision
for
31st March All
Raised
against debit Bad/Debt for all
Years
(after
End of Year
at year end
years
write offs)
Sundry Income
(includes
HB
Overpayments)
Sundry Income
(includes
HB
Overpayments)
Sundry Income
(includes
HB
Overpayments
Sundry Income
2010/11
*£816,705
£4,804,262
17.0%
£393,829(a)
2011/12
**827,655
£5,283,458
15.67%
£451,857
2012/13
***761,402
£5,054,143
15.06%
£462.143
2013/14
****727,460
£4,639,974
15.68%
£481,568(at
69
Cabinet
9 June 2014
(includes
HB
Overpayments
8/5/14)
*
2010/11 Housing Benefit Overpayments = £ 487,627
**
2011/12 Housing Benefit Overpayments = £ 509,403
***
2012/13 Housing Benefit Overpayments = £594,596
****
2013/14 Housing Benefit Overpayments = £450,291 (In Dec 2013 - HB invoice no longer
raised on e-financials)
3.2
The arrears figures reflect that 25 debtors with invoice values over £5,000
account for £336,165 (46% of the outstanding debt).



19 of these invoices are Housing Benefit overpayments (HBOP) totaling £189,436.
12 of which are paying by installments, totaling £134,142 - 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 other 7 invoices are currently with Legal Services.
It is not anticipated that the remaining non HBOP accounts will result in arrears. The bad debt
provision includes debts with balances greater than £2,000 which are not over a year old (i.e.
raised in 2013/14)
Table 3
Income
Area
Council
Tax
NNDR
Sundry
Debtors
2010/11
2011/12
2012/13
2013/14
Average
Net Collectable Number of Amount
per
Debit
Accounts
Account (after
adjustments)
£54,588,328
52,540
£1,038
£54,801,832
52,708
£1,040
£55,279,404
52,905
£1,045
£56,911,522
53,038
£1,073
2010/11
2011/12
2012/13
2013/14
£20,901,384
£21,705,544
£22,850,477
£24,047,238
5,868
6,023
6,094
6,285
£3,562
£3,603
£3,749
£3,826
£216,850
£221,280
£555,781
£336,511
2010/11
£4,804,262
24,157
£199
£816,705
2011/12
2012/13
2013/14
£5,283,458
£5,054,143
£4,639,974
6,801
6,083
5,231
£777
£831
£887
£827,655
£761,402
£727,460
Year/Date
Total of all Years
Arrears
£1,596,946
£1,630,971
£2,184,250
£2,236,804
Table 4
Income
Area
2010/11
2011/12
2012/13
70
2013/14
Target
2013/14
Target
2014/15
Cabinet
9 June 2014
Council
Tax
NNDR
98.6%
98.6%
97.9%
98.1%
98.3%
98.5%
99.1%
98.8%
98.4%
99.1%
99.0%
99.2%
3.3. In April 2013 there were a number of changes that impacted on council tax charges. From
April 2013 support for council tax was localized. 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
2013 - 3200). 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. In addition work was ongoing from the previous year following data
conversion to a replacement system. The target for council tax collection was challenging given
the above.
3.4 There are no longer national indicators for the collection of Council Tax and Non Domestic
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
69.02% of council tax payers are paying by direct debit and 49.68% of NNDR customers pay by
direct debit.
3.5 The Government introduced the Small Business Rate Relief (SBRR) scheme in April 2005
to give more support to small businesses. Businesses with a Rateable Value below £6,001
receive a 50% reduction to their charge. Changes to Rating Legislation on the 1st October 2010
increased the amount of relief granted to 100%, this will continue until 31 March 2015 when the
relief may reduce back to 50%. SBRR at 100% was awarded to 3,494 (55.6%) accounts equal
to £3.96m, out of 6,284 business rated properties with a gross debit of £28.98m .
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
2009/10(£)
2010/11(£)
2011/12(£)
2012/13(£)
2013/14(£)
Council Tax
NNDR
65,557
76,111
159,759*
71,320
144,803
120,994
85,614.
46,165
193,560
91,111
71
Cabinet
9 June 2014
Sundry Debtors 62,783
includes Housing
Benefit write-offs
Housing Benefit
32,440
47,423
33,241
64,902
58,072
30,654
16,841
51,688
74,971
Table 6
The table below details the category of debts that have been written off over the year 2013/14
(includes costs) for all years.
Category
Unable to collect
Uneconomic/
bailiff unable to
collect
Debtor deceased
Debtor absconded
Debtor
in
bankruptcy
Or liquidation or
other
Insolvency
proceedings
Detained/Prison
Debt cannot be
proved (conflict of
evidence)
Ill health & no
means
Undue hardship
Debt remitted by the
Court
Irrecoverable
VAT
Debts Reinstated
Other
Totals
Council Tax(£)
NNDR(£)
Sundry Debtors(£)
5,586
0
15,591
5,955
156,258
301
8,606
8,526
10,960
22,310
82,079
4,649
1,194
0
8,784
115
125
3,290
2,215
0
1,455
-73
0
0
0
0
3,379
0
0
0
0
0
0
0
0
1,246
192
0
0
193,560
91,111
58,072
4.2
The level of sundry debt written off has decreased. Council Tax and Business rates write
offs have increased 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, leaving council tax debt has increased. 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 increase in business rate write offs is due to an increase in debt having to be written off
because businesses have gone into bankruptcy / insolvency.
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.
72
Cabinet
9 June 2014
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 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.
73
Appendix F
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
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 promote a co-ordinated approach towards sharing debtor information and
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.
74
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 contributes 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 are Finance
The debts involved are primarily:
• Council Tax
• National Non Domestic Rates
• Overpaid Housing Benefit
• Sundry Debts
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 statutory benefit 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 Enforcement) Regulations 1992 and subsequent amendments.
75
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
2104 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.
Appendix 1 -.Enforcement Agent Code of Practice & Enforcement Agent Procedures
Housing Benefits
Housing Benefit overpayments are reclaimed in accordance with Regulations 98-105 of
The Housing Benefit (General) Regulations 1987 (as amended). 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
− Fax
− In person at the Council Offices.
76
• 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) (see Appendix 1);
− 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
bailiff action, 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 debtors 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 ongoing monthly liability. Future
instalments must be paid when due as a condition of the arrangement.
77
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 order 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 debtors 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 be required to an Enforcement Agent Code of
Practice & Enforcement Agent Procedures
Appendix 2.
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 2014
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Appendix G
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
79
Appendix G
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 Sean Knight (Revenue Manager), Carl Copping or Trudi Grant
(Revenue Team Leaders). 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.
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Appendix H
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 Practice 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.
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Appendix H
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
Procedures 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 Sean Knight (Revenues
Manager) , Carl Copping or Trudi Grant (Revenue Team Leaders) 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 Sean Knight, Carl Copping or
Trudi Grant 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.
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Appendix H
COUNCIL’S SPECIAL ARRANGEMENT PROCEDURE
• When making special arrangements the Enforcement Agent shall endeavour to
ensure the arrangements ends within the same financial year, or does not exceed a
period of 12 months.
• 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.
83
Agenda Item No______13_______
Treasury Management Annual Report 2013/14
Summary:
Options Considered:
Conclusions:
Recommendations:
Reasons for
Recommendation:
This report sets out the Treasury Management activities actually
undertaken during 2013/14 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 2013/14 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
Cllr W Northam
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.
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
84
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
At the start of the financial year 2013/14 there was low growth in the UK economy, the
threat of a “triple-dip” recession, falling real wages (after taking account of inflation) and a lack
of business investment. These were all a concern for the financial markets and the Bank of
England‟s Monetary Policy Committee (MPC). The Eurozone had gone through a turbulent
period, but the likelihood of an imminent disorderly collapse had significantly diminished.
2.2
The new Governor of the Bank of England, Mark Carney, unveiled forward guidance in
August pledging not to consider raising interest rates until the unemployment rate fell below a
7% threshold. The Bank initially forecast this level was only expected to be reached in 2016.
Although the Bank stressed that this level was only a threshold for considering a rate increase,
rather than an automatic trigger, the financial markets began pricing in a much earlier rise in
interest rates as unemployment began to fall.
2.3
The UK experienced a surprising recovery with strong economic activity and growth. In
the final quarter of 2014 the year-on year growth in Gross Domestic Product (GDP) was 2.7%.
The improvement was largely in the service sector and an increase in household consumption.
Housing purchases and sales began to grow, driven by higher consumer confidence and the
greater availability of credit. House prices were boosted by government initiatives such as Helpto-Buy. However business investment had yet to recover convincingly and the recovery was not
accompanied by meaningful productivity growth.
2.4
The rate of inflation as measured by the Consumer Prices Index (CPI) fell from 2.8% in
March 2013 to 1.7% in February 2014, which was the lowest rate since October 2009, and this
reduced pressure on the MPC to raise rates. Although the fall in unemployment (down from
7.8% in March 2013 to 7.2% in January 2014) was faster than the Bank of England or indeed
many economists had forecast, the level of underemployment (people working reduced hours)
remained high. Wages growth remained negative (i.e. after inflation). In February the Bank of
England stepped back from forward guidance relying on a single indicator (the unemployment
rate) to more complex measures which included spare capacity within the economy. The Bank
also implied that when official interest rates were raised, the increases would be gradual, which
helped support the view that interest rates will remain lower for longer, despite the
improvements in the economy.
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
85
4.2
The table below gives Members an appreciation of the investment activity undertaken in
2013/14, showing the position at the start and end of the year, together with the transactions
during the year. The percentages show the average investment return achieved for each
investment category for 2013/14.
Short-term
Bonds issued by
Multilateral
Development
Banks
Pooled Funds
All investments
Balance
01/4/2013
Invested
£000s
13,115
£000s
117,502
1,000
5,000
19,115
Matured
Balance
31/3/2014
Return
£000s
(114,582)
£000s
16,035
%
0.53
0
1,000
0
0.78
0
117,502
0
(115,582)
5,000
21,035
5.11
1.53
4.3
Security of the capital sum invested remained the Council‟s main investment objective.
This was maintained by following the Council‟s counterparty policy as set out in its Treasury
Management Strategy Statement for 2013/14 which defined “high credit quality” organisations
as those having a long-term credit rating of A- or higher that are domiciled in the UK or a foreign
country with a sovereign rating of AA+ or higher.
4.4
Investments with banks and building societies were in call accounts and fixed-rate term
deposits. The maximum duration of these investments was 184 months in line with the
prevailing credit outlook during the year as well as market conditions.
5.
Credit Developments and Credit Risk Management
5.1
The Council assessed and monitored counterparty credit quality with reference to credit
ratings; credit default swaps; GDP of the country in which the institution operates; the country‟s
net debt as a percentage of GDP and share price. The minimum long-term counterparty credit
rating determined by the Council for the 2013/14 treasury strategy was A- across rating
agencies Fitch, S&P and Moody‟s.
5.2
The debt crisis in Cyprus was resolved by its government requiring those holding
unsecured investments and bank deposits over €100,000 to lose some of their investment. This
resolution mechanism, in stark contrast to the bail-outs during the 2008/2009 financial crisis,
sent shockwaves through Europe but allowed banking regulators to progress reform which
would in future force losses on investors through a „bail-in‟ before taxpayers were asked to
support failing banks.
5.3
The Financial Services (Banking Reform) Act 2013 gained Royal Assent in December,
legislating for the separation of retail and investment banks and for the introduction of
mandatory bail-in in the UK to wind up or restructure failing financial institutions.
5.4
Proposals were also announced for regulatory reforms to Money Market Funds which
may result in these funds moving to a VNAV (variable net asset value) basis in the future (which
means the value of the investment may go up or down) and losing their „triple-A‟ credit rating
5.5
The material changes to UK banks‟ creditworthiness were (a) the strong progress made
by the Lloyds Banking Group in strengthening its balance sheet, profitability and funding
positions and the government reducing its shareholding in the Group to under 25%, (b) the
announcement by Royal Bank of Scotland of the creation of an internal bad bank to house its
riskiest assets (this amounted to a material extension of RBS‟ long-running restructuring, further
delaying the bank‟s return to profitability) and (c) substantial losses at Co-op Bank which forced
the bank to raise further capital and a debt restructure which entailed investors being bailed-in
as part of the restructuring.
86
5.6
In July Moody‟s credit rating agency placed the credit ratings of Royal Bank of Scotland
and NatWest Bank on review for downgrade amid concerns about the impact of any potential
breakup of the bank on creditors. As a precautionary measure the Council reduced the period of
its investments to overnight for new investments. In March Moody‟s downgraded the long-term
ratings of both banks to Baa1. As this rating is below the Council‟s minimum credit criterion of A, the banks were withdrawn from the counterparty list for further investment.
5.7
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.
5.8
Appendix J shows the different credit scores which apply to the long-term credit ratings
of an institution (The final score will also take the other factors listed above into account). The
Council aims to achieve a score of 7 or lower (A- or better), to reflect the Council‟s overriding
priority of security of monies invested and a minimum credit rating threshold of A- for investment
counterparties, as set out in the Council‟s Treasury Management Strategy Statement.
5.9
The table below 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 the both scores have increased but remained well below
the minimum level of 7 which represents the lowest credit rating the Council will accept.
5.10
Credit Score Analysis 2013/14
Date
31/03/2013
30/06/2013
30/09/2013
31/12/2013
31/03/2014
Value
Weighted
Average
Credit Risk
Score
5.30
5.21
5.39
5.71
5.08
Value
Weighted
Average
Credit
Rating
A+
A+
A+
A
A+
Time
Weighted
Average
Credit Risk
Score
3.07
3.39
3.68
4.70
5.97
Time
Weighted
Average
Credit
Rating
AA
AA
AAA+
A
Average
Life (days)
61
48
39
37
43
5.11 The graphs at Appendix K shows the Council‟s risk/return position at 31 March 2014 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.
Liquidity
6.1
In accordance with the DCLG‟s Guidance on Investments, the Council maintained
sufficient level of liquidity through the use of Money Market Funds, overnight deposits and call
accounts with banks.
7.
Yield
7.1
The Council sought to optimise returns commensurate with its objectives of security and
liquidity. The UK Bank Rate was maintained at 0.5% through the year and short term money
market rates remained at very low levels which continued to have a significant impact on
investment income.
7.2
The Council‟s investment income for the year was £355,428 which compares to the
updated budget of £387,000. The anticipated rate of return on investments in the updated
87
budget was 1.64% and a rate of 1.53%% was actually achieved. The average balance
available for investment in the year was £23.2m compared to the updated budget of £23.6m.
7.3
The Council‟s investment in the LAMIT Pooled Property Fund was anticipated to earn
£252,383 in the updated budget. The actual return was £255,546 which is a return of 5.11% on
the investment of £5m. However, both the amount available and the interest rate achieved on
the Council‟s other investments (together with other interest adjustments), have resulted in an
overall shortfall against the updated interest budgets of £29,663.
8.
Compliance
8.1
All investments made during the year complied with the Council‟s agreed Treasury
Management Strategy, Prudential Indicators, Policy Statement, Practices and prescribed limits.
Maturing investments were repaid in full on the due date.
8.2
The Council can confirm that it has complied with its Prudential Indicators for 2013/14,
which were approved on 27 February 2013 as part of the Council‟s Treasury Management
Strategy Statement. Details can be found in Appendix L.
8.3
In compliance with the requirements of the CIPFA Code of Practice this report provides
members with a summary report of the treasury management activity during 2013/14. None of
the Prudential Indicators have been breached and a prudent approach has been taking in
relation to investment activity with priority being given to security and liquidity over yield.
9.
Other Items
9.1
The Co-op bank is currently the Council‟s banker and will, until such time that a new
banking arrangement is put in place later in 2014, continues to be used for operational
purposes. An alternative banking arrangement has been made with Barclays Bank for a
contingency facility to enable the Council to continue making and receiving payments should the
Co-op cease operations. In addition, because weekends are the most likely time for regulatory
action to occur and in order to mitigate any risk surrounding netting arrangements between in
hand and overdrawn balances on accounts, the amount of in hand balances on individual
accounts are kept as close to zero as possible at the close of business each Friday.
9.2
The training needs of staff undertaking treasury management are assessed as part of
the appraisal process and during 2013/14 they attended training courses provided by the
Council‟s treasury advisor, Arlingclose.
10.
Conclusion
10.1 The treasury activities for 2013/14 have been carried out in accordance with the CIPFA
Code and the Council‟s Treasury Management Strategy.
11.
Financial Implications and Risks
11.1 The financial impact of implementing the Council‟s treasury strategy for 2013/14 has
been set out in this report.
12.
Sustainability – None as a direct consequence of this report.
13.
Equality and Diversity – None as a direct consequence of this report.
14.
Section 17 Crime and Disorder considerations – None as a direct consequence of
this report.
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Appendix J
Credit Score Analysis
Long-Term
Credit Rating
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBNot rated
BB
CCC
C
D
Score
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
89
Appendix K
Arlingclose Client Benchmarking
3.00%
Average Rate of Investments
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
1
2
Lower
Risk
3
4
5
6
7
8
Higher
Average Credit Risk Score - Valued Weighted Average
Risk
Benchmarking
9
North Norfolk Council - 31/03/2014
Arlingclose Client Benchmarking
3.00%
Average Rate of Investments
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
1
2
Lower
Risk
3
4
5
8
Higher
Average Credit Risk Score - Valued Weighted Average
Risk
Benchmarking
6
7
North Norfolk Council - 31/03/2014
90
9
Appendix L
Prudential Indicator Compliance
1.
Gross Debt and the Capital Financing Requirement:
1.1
This is a key indicator of prudence. In order to ensure that over the medium term debt
will only be for a capital purpose, the Council should ensure that debt does not, except in the
short term, exceed the total of the capital financing requirement in the preceding year plus the
estimates of any additional capital financing requirement for the current and next two financial
years. The Council had no difficulty in meeting this requirement as no long term borrowing was
undertaken in the period.
2.
Estimates of 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. The increase
in the expenditure for the 2013/14 revised estimate is due to the inclusion of the Cromer Coast
Protection Scheme and loans to Housing Associations under the Local Investment Strategy.
Capital Expenditure
Total
2.2
2013/14
Approved
£000s
9,267
2013/14
Updated
£000s
7,647
2013/14
Actual
4,801
2014/15
Estimate
£000s
1,853
2015/16
Estimate
£000s
1,368
2014/15
Estimate
£000s
927
926
2015/16
Estimate
£000s
705
663
1,853
1,368
Capital expenditure will be financed or funded as follows:
Capital Financing
2013/14
Approved
£000s
Capital receipts
3,421
Government Grants
5,443
Revenue contributions 403
and Reserves
Total Financing and
9,267
Funding
2013/14
Updated
£000s
1,969
4,768
910
2013/14
Actual
7,647
4,801
1,532
2,589
680
This table shows that the capital expenditure plans of the Council can be funded entirely from
sources other than external borrowing.
3.
Ratio of Financing Costs to Net Revenue Stream:
3.1
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.
3.2
The ratio is based on costs net of investment income.
Ratio of Financing
Costs to Net
Revenue Stream
Total
2013/14
Approved
%
(2.87)
2013/14
Revised
%
(2.78)
2013/14
Actual
(2.30)
2014/15
Estimate
%
(3.00)
2015/16
Estimate
%
(3.09)
The indicator is negative because the Council has interest receivable and no financing costs.
4.
Capital Financing Requirement:
91
4.1
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
Total CFR
2013/14
Approved
£000s
1,634
2013/14
Revised
£000s
1,634
2013/14
Actual
1,634
2014/15
Estimate
£000s
1,328
2015/16
Estimate
£000s
998
The total CFR indicated in the table relates 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.
5.
Incremental Impact of Capital Investment Decisions:
5.1
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
Increase in Band D
Council Tax
2013/14
Approved
£
Nil
2013/14
Revised
£
Nil
2013/14
Actual
Nil
2014/15
Estimate
£
Nil
2015/16
Estimate
£
Nil
5.2
The Council‟s capital plans, as estimated in forthcoming financial years, have a
neutral impact on council tax. This reflects the fact that capital expenditure is predominantly
financed from internal resources (grants, contributions, and revenue and capital receipts), and
there is no increase in the underlying need to borrow.
6.
Authorised Limit and Operational Boundary for External Debt:
6.1
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.
6.2
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.
6.3
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).
6.4
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.
2013/14
Approved
92
2013/14
Actual
2014/15
Estimate
2015/16
Estimate
Authorised Limit for Borrowing
Authorised Limit for Other Long-term
Liabilities
Authorised Limit for External Debt
Operational Boundary for Borrowing
Operational Boundary for Other Longterm Liabilities
Operational Boundary for External Debt
and
Revised
£000s
6,900
1,634
£000s
£000s
6,900
1,634
6,900
1,328
6,900
998
8,534
4,840
1,634
8,534
4,840
1,634
8,228
4,840
1,328
7,898
4,840
998
6,474
6,474
6,168
5,838
7.
Adoption of the CIPFA Treasury Management Code:
7.1
This indicator demonstrates that the Council has adopted the principles of best practice.
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.
8.
Upper Limits for Fixed Interest Rate Exposure and Variable Interest Rate
Exposure:
8.1
These indicators allow the Council to manage the extent to which it is exposed to
changes in interest rates. The Council calculates these limits on net principal sums outstanding
(i.e. fixed rate debt net of fixed rate investments).
8.2
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 does not anticipate entering into a borrowing during the period of the Strategy. The limit
therefore allows maximum flexibility for fixed or variable rate investments and investment
decisions will ultimately be made on expectations of interest rate movements as set out in the
Strategy.
Upper Limit for
Fixed Interest Rate
Exposure
Upper Limit for
Variable Interest
Rate Exposure
2013/14
Approved
%
(100%)
2013/14
Revised
%
(100%)
2013/14
Actual
(100%)
2014/15
Estimate
%
(100%)
2015/16
Estimate
%
(100%)
(100%)
(100%)
(100%)
(100%)
(100%)
8.3
As the Council‟s investments exceed its borrowing, these calculations have resulted in a
negative figure.
9.
Maturity Structure of Fixed Rate borrowing:
9.1
This indicator highlights the existence of any large concentrations of fixed rate borrowing
needing to be replaced at times of uncertainty over interest rates and is designed to protect
against excessive exposures to interest rate changes in any one period, in particular in the
course of the next ten years.
93
9.2
It is calculated as the amount of projected borrowing that is fixed rate maturing in each
period as a percentage of total projected borrowing that is fixed rate. The Council does not
anticipate entering into any external borrowing therefore the limits have been set to allow the
Council maximum flexibility should any borrowing be required (potentially for cash flow
purposes).
Maturity structure of fixed rate borrowing
under 12 months
12 months and within 24 months
24 months and within 5 years
5 years and within 10 years
10 years and within 20 years
20 years and within 30 years
30 years and within 40 years
40 years and within 50 years
50 years and above
10.
Lower Limit
for 2013/14
%
0
0
0
0
0
0
0
0
0
Upper Limit
for 2013/14
%
100
100
100
100
100
100
100
100
100
Credit Risk:
10.1 The Council considers security, liquidity and yield, in that order, when making investment
decisions.
10.2 Credit ratings remain an important element of assessing credit risk, but they are not a
sole feature in the Council‟s assessment of counterparty credit risk.
10.3 The Council also considers alternative assessments of credit strength, and information
on corporate developments of and market sentiment towards counterparties. The following key
tools are used to assess credit risk:
 Published credit ratings of the financial institution (minimum A- or equivalent) and its
sovereign (minimum AA+ or equivalent for non-UK sovereigns);
 Sovereign support mechanisms;
 Credit default swaps (where quoted);
 Share prices (where available);
 Economic fundamentals, such as a country’s net debt as a percentage of its GDP);
 Corporate developments, news, articles, markets sentiment and momentum;
 Subjective overlay.
10.4 Credit ratings are the only indicator where an absolute prescriptive value can be applied.
The other indicators of creditworthiness are considered in relative terms.
11.
Upper Limit for total principal sums invested over 364 days:
11.1 The purpose of this indicator is to limit exposure to the possibility of loss which may arise
as a result of the Council having to seek early repayment of the sums invested.
Upper Limit for
total principal
sums invested
over 364 days
Total
2013/14
Approved
£m
2013/14
Revised
£m
2013/14
Actual
2014/15
Estimate
£m
2015/16
Estimate
£m
15
15
15
15
15
94
Agenda Item No______14______
ANNUAL REPORT 2013/14
Summary:
This report outlines the key elements of the Annual
Report 2013/14 to be published by July 2014 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 2013/14 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 2013/14 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
2013/14.
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
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
95
1.
Introduction
1.1
The draft Annual Report 2013/14 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 2013/14 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 2013/14. The activities and
targets set for 2013/14 were built into the Service Plans for 2013/14.
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 and
Website.
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 2014 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 six elements:
3.2
Leader and Chief Executive’s introduction (to be included in the final
published version) – The Annual Report presents an introduction from the
Leader of the Council highlighting key developments, issues and challenges
encountered during 2013/14.
3.3
An overview for the delivery of the whole of the Annual Action Plan 2013/14.
3.4
An overview for each of the five Corporate Plan Themes;
 Jobs and the Local Economy
 Housing and Infrastructure
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
96



Coast, Countryside and Built Heritage
Localism
Delivering the Vision
3.5
Financial summary (to be included in the final published version) – this will
include information on the Councils spend on revenue and capital for
2013/14, as will be reported to Cabinet, along with the source of funds for the
year.
3.6
An appendix containing a progress report for each activity in the Annual
Action Plan 2013/14.
3.7
An appendix showing performance against targets and/ or comparison to last
year – The results for all the key performance indicators over the past year.
3.8
Workforce profile statistics 2013/14 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.
3.9
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 2014 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
Cabinet 9 June 2014, Overview and Scrutiny 18 June 2014
97
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
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
98
Agenda Item No_____14_______
CAR PARK MANAGEMENT AND PRICING
Summary:
This report has been prepared at the request of Cabinet.
Officers have been asked to review the current charging
structure based on a Cabinet request to help support
local businesses. The report considers the current
pricing arrangements for the Council’s car parks and
makes recommendations for changes for the 2014/15
financial year.
Options considered:
The following options are considered within the paper;
1. Make no changes to the current pricing structure
2. Remove the evening charges from 6:00 pm
3. Allow £5 (24hr) pay and display (P&D) tickets to be
transferable to other Council owned P&D car parks
4. Consider free parking options, including free parking
between the hours of 9:00 am and 9:30 am
Conclusions:
Car parking income for 2013/14 was £2.2m and
represents a significant income stream for the Council.
Car parking is key to the function of many of our towns
and villages whether their primary use is for business or
leisure pursuits. Regular reviews of car parking are
important to ensure the Council is meeting the needs of
all those people who use our car parks.
There are a number of changes that could be made to
the pricing structure to better support local residents,
local businesses and visitors and these are discussed in
more detail within the main report.
Recommendations:
Reasons for
Recommendations:
1. Cabinet propose the following;
a) Removal of the evening charge from 6:00 pm
b) Allowing £5 (24hr) pay and display tickets to
be transferable to other P&D car parks
c) To delegate authority to the Chief Executive
Officer, in consultation with the Portfolio
Holder for Assets and the Section 151
Officer,
to agree the free parking
arrangements
d) Recommend that Full Council approve the
budget implications detailed within Section 6
To eliminate confusion over evening charges, to provide
greater flexibility for 24 hour tickets and to encourage
people to ‘pop and shop’ during what is generally
deemed a slow trading period. These changes will
better support local residents, local businesses and
visitors.
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;
Cllr Rhodri Oliver
All
Contact Officer, telephone number and email: Duncan Ellis (Head of Assets and
Leisure), 01263 516330, duncan.ellis@north-norfolk.gov.uk
1.
Introduction
1.1
This report has been prepared at the request of Cabinet. Officers have been
asked to review the current charging structure based on a Cabinet request to
help support local businesses.
1.2
The Council operates 26 off-street pay and display car parks. There are a
number of components to the service which are managed partially by NNDC
and partially through a shared working arrangement with Kings Lynn and
West Norfolk (KL&WN) Borough Council as detailed below;






Car park infrastructure maintenance and investment
Pricing and policy
Car park inspection
Enforcement
Processing of Standard Charges/Penalty notices
Cash collection and banking
NNDC
NNDC
NNDC
KLBC
KLBC
KLBC
1.3
The car park charges increased in April 2012 although season tickets have
not increased since April 2010.
1.4
Current car park charges in North Norfolk are quite complex, reflecting
different user groups and locations of car parks, but in summary are as
follows:






All car parks: 50p for 30 minutes, £1 flat rate for parking 6pm – 11pm and
maximum £5 for 24 hours (transferable in Coastal Car parks only)
Coastal car parks (various locations) – 8.00 am to 6pm £1.20 an hour.
Resort car parks (Cromer, Sheringham, Holt & Wells) - 8.00 am to 6pm
as follows -, £1.00 for first hour and 70p per subsequent hour.
Inland car parks (Fakenham, NW, Stalham) - 8.00 am to 6pm as follows £1.00 for first two hours and 70p per subsequent hour.
Coach Parking (Cromer, Sheringham and NW) £5 for 4 hours and £10 for
24 hours.
Holt Country Park has its own charging regime of £1.20 per day.
1.5
The majority of car parking income comes from our seaside resorts with 86%
of the income coming from these towns and Holt. In 2013/14, 47% of income
was derived from coastal car parks.
2.0
Proposed Changes
2.1
It is felt currently that the evening charges are still not properly understood
and lead to confusion when people purchase their tickets for this period.
Discussions with traders have also indicated that the early morning period in
towns is particularly quiet and they would welcome any initiatives or support
that might help to address this situation.
2.2
It is also considered that the £5 24 hour ticket could also be made more
flexible and again lead to a better understanding as currently these tickets are
only transferable between coastal car parks.
2.3
Cabinet are therefore proposing the following changes;
a) Removal of the evening charge from 6:00 pm
b) Allowing £5 (24hr) pay and display tickets to be transferable to other P&D
car parks
c) To investigate options regarding potential 30 minute free parking periods
2.4
Evening Charges - The removal of the evening charges will achieve the
following;
i.
ii.
iii.
Remove confusion of payment for different tariff banding making
signage and paying for parking much simpler
Removing the tariff addresses claims that it is damaging to evening
trade and local evening entertainments
A reduction in income - anticipated as follows;
Evening Pay and Display income 2012/13 (net)
Evening Pay and Display income 2013/14 (net)
Penalty Charge Notice income 2012/13 approx.
Penalty Charge Notice income 2013/14 approx.
Net of VAT
£81,730
£86,273
£26,890
£19,056
Ave Net
£ 84k
£ 23k
2.5
The net loss of income from this change is therefore anticipated to be in the
region of £107k for a full year, and this will need to be considered as part of
the budget planning process.
2.6
If the removal of the evening charge is implemented there will be an impact
on the shared working arrangement with KL&WN. This will need to be
discussed further, with any anticipated changes and timeframes for these
agreed.
2.7
Transferable Tickets - Currently the 24 hr tickets sold on Coastal car parks
can be transferred from one designated Coastal car park to another. The
change to adopt this policy across all car parks will give greater flexibility to
users, is not deemed to have a significant increase or decrease on ticket
sales and will eliminate any confusion caused by people not being aware
which car parks are designated ‘coastal’ and which are not.
2.8
Free Half Hour Parking - In response to calls from businesses to offer a
period of free parking, particularly at opening time when business is slower,
Cabinet are considering offering a 30 minute period of free parking.
2.9
Cabinet could for example consider offering a 30 minute free period between
9:00 am and 9:30 am. During 2013/14 the total value of transactions recorded
during this time was £52k (net) and the total number of 30 minute tickets sold
at that time equated to £2.7k. It is therefore estimated the ‘cost’ to the
Council for this proposal would be in the region of £3k.
2.10
Other Councils operate similar schemes, although the 30 minute free periods
tend to be more flexible and can be used at any time during the day although
the financial impact of a similar arrangement for NNDC would have a far
greater budgetary impact. These schemes are often targeted at specific ie
town centre car parks and often only operate on certain days.
2.11
2.12
Suffolk Coastal operate a scheme whereby they provide dedicated 30 minute
parking bays at certain car parks so this is a further option that could be
considered.
It is recommended that delegate authority is granted to the Chief Executive
Officer, in consultation with the Portfolio Holder for Assets and the Section
151 Officer, to agree the free parking arrangements.
2.13
All changes will involve adjustments to the Car park Order, Pay and Display
Machines and signage for which there will be a one-off cost of around £10k.
3.
Proposed timescales
3.1
The changes will have to form part of a change to the Car park Order. This
statutory process takes three months to complete. In addition following this
approval changes to pay and display software and signage will need to be
undertaken. It is therefore anticipated that the changes will come into effect
during October 2014.
4.
Conclusion
4.1
Car parking income for 2013/14 was £2.2m and represents a significant
income stream for the Council. There are a number of changes that could be
made to the pricing structure to better support local residents, local
businesses and visitors.
4.2
It has been estimated that the removal of the evening charge will impact on
the projected income to the Council of just over £100k.
4.3
Being able to transfer 24 hour tickets between all car parks will be seen as
boost for tourism and is likely to be well received.
4.4
Offering free parking between 9:00 am and 9:30 am would result in a
reduction in income of approximately £3k pa. This may help local businesses
however by encouraging people to come into the town at the quietest period
of the day. It is recommended that further dialogue takes place with the
business community to confirm support for this prior to any implementation.
5.
Implications and Risks
5.1
The risks and impact of the proposals are given below;
Item
Risk
Loss of income
Removal of
evening
charges
Transferable
Impact
Estimated to be in the
region of £107k pa
Increased admin, some
loss of income from
refunds. Small
reputational risk.
Season Tickets have been sold giving
free evening parking. There may be
claims of unfairness or requests for
refunds if people bought them requiring
this element.
Possible
increase
of
anti-social Depending on incidents,
behaviour (ASB) on our car parks post can lead to a rise in
6pm as patrols will cease.
complaints or cost of
repairs.
There may be some criticism of people Minor.
tickets
Introduction of
free half hour
between 9 –
9.30 am
purchasing tickets and not being able to
park in their subsequent desired car park
but we believe this to be negligible.
Loss of income.
This is a complex policy to explain
clearly on car park signage and this may
lead to confusion and complaints.
Users must display a ticket even if they
park only for the free period to enable
enforcement to take place. There is a
significant risk that users will fail to do
this resulting in the issue of a Penalty
charge.
Complaints from some businesses that
this policy is ‘selective’ and does not
support their business. ie: many coastal /
resort car parks support seasonal
business which open later in the day.
Estimated at £3k pa
Additional admin to deal
with calls and
complaints.
Reputational risk – may
be seen as giving with
one hand and taking with
another.
Increased admin to deal
with complaints and cost
to the Council if PCNs
are cancelled.
Criticism of policy and
small reputational risk.
6.
Financial Implications and Risks
6.1
As indicated above the financial impact is made up of a one-off cost of
£10,000 for the machine changes and signage along with an ongoing full year
impact of £110,000 per annum for the reduction in income (assuming
implementation of free parking option between 9:00 am and 9:30 am).
6.2
There may be some reduction in enforcements costs although these are yet
to be explored further with KL&WN.
6.3
The current financial projections as reported in February 2014 within the
budget report detailed a future funding gap of £239,000 for 2015/16
increasing to £1.3 million in 2016/17. The changes to car parking charges as
recommended within this report will increase the funding gap by £110,000
from 2015/16 onwards.
6.4
The full year/ongoing budget impact from 2015/16 onwards will need to be
considered as part of the budget process for 2015/16 which will commence
later in the year. For the current financial year, assuming an implementation
date of 1 October, the financial impact is expected to be in the region of
£32,000 including the signage/machine software changes and can be funded
from existing budgets and the Asset Management Reserve.
7.
Sustainability
7.1
There are no sustainability issues arising directly from this report.
8.
Equality and Diversity
8.1
There are no equality and diversity issues arising directly from this report.
9.
Section 17 Crime and Disorder considerations
9.1
Enforcement of the car parks during the evening period meant that car parks
were patrolled and when necessary associated anti-social behaviour is
deterred. Removal of the requirement to enforce during the evenings may
result in increased incidents of ASB on our car parks after 6pm.
Agenda Item No_____16_______
Web Infrastructure Upgrade
Summary:
This report is brought to secure approval for the
recruitment of an additional post within the Applications
Development Team of the IT Department as previously
identified
within
the
Business
Transformation
Programme Plan. It also seeks approval for the release
of funding to support the delivery of the new web
technology necessary to support the Business
Transformation Programme.
Options considered:
A number of options have been considered:
 Absorb the additional workload within the existing
Applications Team.
 Outsourcing provision of the new web technology
platform.
 Recruitment to an additional post within the
Applications Support team.
 Proprietary and Open Source software.
Conclusions:
There will be a significant additional workload
associated with establishing the new Web Technology
platform and integrating it with existing systems.
Without
additional
capacity
other
Business
Transformation work-streams would not be able to be
progressed.
Outsourcing the development, deployment and
integration of the web technology would require
additional allocation from the Business Transformation
programme budget as the cost would exceed existing
planned funding.
There is a requirement to develop skills in other
members of the IT team to ensure capacity and service
resilience. This will be facilitated by ensuring that the
proposed new post-holder has the appropriate skills and
experience to act as the technical lead on the new
technology and mentoring other members of IT.
In order to allow the transformation of the web
technology to commence as soon as practicable it will
be necessary to engage third party expert support which
will require funding.
To provide the infrastructure improvements to support
the new web technology it will be necessary to procure
hardware and software platforms compatible with the
105
website technology.
The Open Source platform “Drupal” will meet the
Council’s current and foreseeable future needs.
Recommendations:
1) That Cabinet approves the permanent
establishment of the previously identified post
within the Applications Development team of the IT
section at a cost of approximately £37,000 to be
funded as outlined in the report.
Drafting note for pre cabinet: the post is currently being
evaluated but is anticipated that it will not exceed this
figure. The cost includes salary plus on-costs.
2) That Cabinet approves funding from the Invest to
Save Reserve of £37,500 to fund the one off
engagement of third party technical expertise and
the procurement of associated IT infrastructure
components.
3) That Cabinet delegates authority to the relevant
Corporate Director in consultation with the s151
Officer to procure the goods and services required
to implement the new web technology.
Reasons for
Recommendations:
To provide the capacity skills and technology required to
commence the deployment of new web technology
which will support the delivery of the wider
transformation agenda.
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
Cllr T Fitzpatrick
Cllr R Oliver
All
Contact Officer, telephone number and email:
Sean Kelly, 01263 516276, sean.kelly@north-norfolk.gov.uk
1.
Introduction
1..1
Members will recall that in the Business Transformation programme that
Cabinet approved in November 2013 it was identified that further reports
106
would be brought to cabinet as the work-streams within the programme
were developed.
1..2
The Council is committed to improving services to deliver both value for
money and high levels of customer satisfaction. One of the key
technology enablers for this is a website which fully supports the delivery
of transactional services. For all local authorities, the way in which the
website provides access to services, information, bookings and payments
in a reliable and easy to use manner is critical to improving service quality
and efficiency.
1..3
The Council’s existing web technology does not support these critical
facilities as effectively as alternative products which are now available.
1..4
In order to deploy an alternative web technology platform there will be a
requirement for third party specialist technical support to assist with the
implementation of a flexible, modern web infrastructure.
2.
Background and Current Position
2..1
The Council’s current website is a secure, reliable site with many good
features. However it is predominantly an information based system rather
than an interactive transactional platform which allows users to make
on-line bookings, securely pay for Council services raise issues and
communicate effectively with the Council.
2..2
The current technology requires modernising and updating to ensure it
supports functionality to deliver the Business Transformation programme.
2..3
It has been widely identified that there are considerable savings to be
realised by modifying the manner in which users access the Councils
services. The costs below are indicative and are sourced from the Price
Waterhouse and Cooper report on cost of transformation of 17 Local
Authorities within the South East and the SOCITM estimates considered
in the original business case for the Transformation Programme.
Source:
Face to Face Telephone
PWC Report
£10.53
£3.39
SOCITM
£14.00
£5.00
Post
£12.10
N/A
IVR
N/A
£0.20
Online
£0.08
£0.17
NNDC – Interactions Per Annum (Approx)
Face to Face 25000
Telephone
150000
Post
120000
These are estimated transaction volumes derived from an analysis of activity
for between 8 and 10 months during the latter half of 2013 and the early
months from 2014.
From the figures above it is clear that there is considerable opportunity to
reduce costs by moving even a relatively small percentage of the
customer interactions to website based self-serve.
2..4
The Applications section within the Councils IT team is fully committed in
the support of the key IT systems in day to day use. However, they do not
107
have the capacity to support the large scale works associated with the
website transformation in a timely manner. This issue was previously
identified in the Business Transformation Cabinet report from October
2013.
3.
Proposed Change
3.1
Business Objectives
3.1.1 In order to deliver the efficiencies and service quality improvements there is a
need to establish a web infrastructure and website capable of supporting
modern transactional services. This will deliver the following specific
outcomes:

Improved customer service by providing “self-service” website facilities to
access and submit information, make bookings and payments, raise and
track progress of issues and provide effective consultation and
communication channels between the Council and its customers.

Providing a foundation for other elements of the Business Transformation
Programme which will follow the establishment of the enhanced web
technology platform and infrastructure.

Enabling more flexible delivery of Council services at a time and via a
method which suits the Council’s customers.

Improving performance and efficiency by facilitating the capture of
necessary information accurately and once only.
3.1.2
Following a review of the pilot the Council’s website and existing online
services will be migrated to the new technology in an incremental plan. This will
ensure that service transformation, and the cost reductions that will ensue, can be
managed in accordance with business priorities as well as minimising the risk of
disruption to existing Council services.
3.2
Sourcing Options
3.2.1 There are a number of proprietary software solutions each of which have
various strengths and weaknesses.
3.2.2 Open Source software, which is not owned by a commercial company and has
no licensing costs associated with it is increasingly in use within Local Government
presents opportunities to make considerable savings when compared to traditional
proprietary software procurement models.
3.2.3 There are equally functional Open Source offerings in website technology
which can offer significant cost savings.
3.2.4 The Open Source product “Drupal” is used widely in a variety of types of
organisation including local government.
3.2.5 It will be necessary to procure third party technical expertise and industry
standard hardware and software. These will be procured in line with the
Councils IT technical and procurement standards.
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4.
Financial Implications and Risks
4.1
Financial
4.1.1 As previously identified within the Business Transformation Cabinet Paper,the
overall cost for this work was anticipated as £145,000 one-off capital and
£68,750 per annum revenue costs.
4.1.2 By adopting the proposed approach it is anticipated that there will be a
considerable saving against these initial estimates. Whilst staffing costs will
remain at approximately £37,000 per annum the capital element is likely to be
reduced. It is not possible to identify the exact reduction until after a pilot
implementation of Drupal has been completed and evaluated.
4.1.3 The overall business transformation project is anticipated to deliver future
annual savings in the region of £375,000 from year three of the project. In
order to deliver the project objectives up front/implementation costs will be
funded from the Invest to Save reserve or capital receipts as applicable.
Therefore this report is recommending that funding be allocated from the
Invest to Save reserve for the first two years of the post referred to above and
the external support and associated costs as referred to at 3.2.5.
4.3
Whilst this deployment will not, of itself, deliver any savings it is an essential
pre-cursor to allow customer interactions to be migrated, wherever possible,
from the more costly face to face, telephone and mail forms of communication
to the considerably more cost effective technology based, self-service
methods. Exact service team priorities will be identified to deliver as much of
the service improvement and efficiencies at the earliest possible point within
the programme.
4.2
Risk
4.2.1
Without the investment in modern website technology to transform the
website to one capable of sustaining the transactional services necessary to
support business improvements it will not be possible to deliver the
efficiencies arising from the other projects contained within the Business
Transformation programme.
Therefore, the risk of not implementing new website technology will be that
we are left behind in terms of modern user communications and service
access channel. This will result in performance and reputational issues as our
current levels of service decline and fall below customer expectation,
especially as other organisations invest in similar technology.
4.2.2
As with any major system change there is a risk of disruption to normal
business and the associated risk to council reputation as new technology is
deployed. This risk is mitigated by:





Employing specific technical expert advice and guidance.
Careful selection of best of breed technology.
Reduction in financial risk by utilising Open Source software.
Incremental roll-out of services and technologies.
Establishment of separate development and live websites.
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4.2.3
There is a risk that full benefits realization will not be achieved following the
Business Process Reengineering which will follow the website enhancement.
These benefits will be clearly identified and agreed with Heads Of Service at
the start of the Business Process Re-engineering element of the Business
Transformation programme.
5
Equality and Diversity
Requirements will be included in the specification of the systems to ensure as
far as possible they can be used by customers and staff with disabilities.
In addition, it is accepted that some customers may not wish to use some of
the services, which may become automated as part of the Business
Transformation programme. The Council will continue to provide mediated
telephony and face to face services where this is required by customers.
6
Section 17 Crime and Disorder considerations
There are no section 17 implications.
7
Sustainability
7.1
Enabling customers to access services without having to travel visit the
Councils offices will contribute to environmental improvement.
8
Conclusion
8.1
The necessary changes in website technology cannot be accommodated
within existing staffing arrangements in the ICT Applications Team and
therefore the additional post is essential to the timely progress of the
Business Transformation programme to a successful outcome.
8.2
The Open Source software platform “Drupal” is value for money approach to
deliver the modern website facilities required to deliver the cost reductions
required of the Business Transformation programme.
8.3
To deliver the new technology will require some additional hardware, software
and specific third party technical support.
8.4
Delivery of a modern transactional website is critical to the success of the
Business Transformation programme and its expected efficiencies and
service improvements.
110
Agenda Item No______17______
Disposal of Council owned land
Summary:
Options considered:
Conclusions:
This report seeks approval to enter into an options
agreement to dispose of five Council owned sites to
Broadland St Benedicts, a wholly owned subsidiary of
Broadland Housing Association.
Three options were considered:
Option 1 – not to agree to dispose of the sites to Broadland
St Benedicts, this option is not recommended as it would
result in the loss of a capital receipt and not promote the
delivery of new homes including homes for affordable rent,
intermediate sale and open market sale.
Option 2 – to dispose of all six sites. This option is not
recommended as one site is considered to have a high
community asset value.
Option 3 – to dispose of the five retained housing sites. This
option is recommended as it will result in a capital receipt of
up to £1,030,000 and will assist with the delivery of new
homes. All the sites will be developed through the Council’s
Exception Housing Scheme and will result in new housing to
meet the local housing need.
Broadland St Benedicts’ formal request is to purchase six
Council owned sites to provide new affordable and market
homes. The market dwellings are being provided in order to
cross subsidise the delivery of the affordable dwellings.
Broadland St Benedicts intend to undertake the
development of the sites and sell the completed affordable
dwellings to Broadland Housing Association, whilst the
market dwellings would be sold on the open market. Option
3 is the recommended option and is to proceed with an
option agreement to dispose of five Council owned sites to
Broadland St Benedicts.
The five Retained Housing Sites are all within the
Countryside Policy Area and would be developed as
Exception Housing Schemes to address local housing need.
Sale of the five sites would generate a capital receipt of up
to £1,030,000, although the exact amount will depend on
the number of sites which Broadland St Benedicts chooses
to purchase and the number of affordable and market
dwellings delivered on each site.
Recommendations:
It is recommended that:
1. An options agreement for the five retained
housing sites is completed between the Council
111
and Broadland St Benedicts on the terms set out
in their letter dated 29 April 2014 and the terms
contained in this report.
2. The Head of Assets and Leisure is delegated to
approve the sale of individual sites by private
treaty in accordance with the options agreement.
Reasons for
Recommendations:
A) To increase the provision of housing, including
affordable housing across the district which supports
the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Disposal, Investment and Acquisition Policy, Asset Management Plan
Cabinet Member(s)
Ward(s) affected All
Contact Officer, telephone number and email: Nicola Turner, 01263 516222,
nicola.turner@north-norfolk.gov.uk
1.
Introduction
1.1
The Council’s Asset Management Plan (AMP) is the strategic document
which provides the framework for how the Council manages its property
assets. The Council’s assets represent land and property and operational
and non-operational assets. The Council’s assets have been acquired over a
number of years using a range of statutory powers. The AMP approved by
Cabinet on 12 May 2014 is the most recent version of the AMP and covers
the period 2014/15 to 2016/17.
1.2
Cabinet approved the Disposal, Investment and Acquisition Policy on 6
September 2010. This policy sets out the process for disposing, investing in
or acquiring land and property. For disposals it also sets out the different
methods of disposal, the scheme of delegation for and the statutory powers
which apply to disposals depending on whether the disposal is for best
consideration or for some other amount.
1.3
The Council is required to ensure that its assets assist it to meet its
Corporate and Service Priorities and will therefore dispose of assets, invest in
assets or acquire new assets to meet these priorities. The appendix to the
AMP identifies all the Council’s assets, their insured value where applicable
and the forecast for revenue and capital implications over a five year period.
Included in the AMP are 30 Retained Housing Sites, these sites were
retained by the Council when the Council’s housing stock was transferred in
February 2006 through Large Scale Voluntary Transfer to Victory Housing
Trust (then North Norfolk Housing Trust). The Retained Housing Sites are
land originally purchased for housing purposes. The Council has a long
history of using its housing land assets in order to support the delivery of
affordable housing and between 2006/7 and 2013/14 disposed, for nil
112
consideration of 158 plots which were developed to provide affordable
housing by Registered Providers.
1.4
The Council works closely with Registered Providers to deliver more
affordable housing and the disposal of housing land is a part of its enabling
role. Following the adoption of the Local Development Framework Core
Strategy, the majority of Retained Housing Sites are in the Countryside Policy
and therefore could only be developed as Exception Housing Schemes to
meet local housing need. More recently the National Planning Policy
Framework allows a small number of market dwellings to be provided on
Exception Housing Schemes where they enable the delivery of the affordable
housing. In essence, the profit from the sale of market housing provides the
subsidy needed to make it viable to provide the affordable housing. This new
approach has meant that the Council is working with Registered Providers
and private companies to deliver Exception Housing Schemes which will
include market housing. The benefit of this approach is that the delivery of
the affordable housing is more certain as the need for public subsidy from the
Homes and Communities Agency is removed. The Homes and Communities
Agency provides grant funding for affordable housing on a competitive basis
and this introduces uncertainty into the development process.
1.5
Registered Providers are generally not for profit organisations as they are
charities or Industrial and Provident Societies which were established to
provide affordable housing. Increasingly, however, Registered Providers
have established group structures which enable them to carry out commercial
activities through subsidiary companies, where the surplus generated by the
subsidiary is gift aided to the Registered Provider to be used for charitable
purposes. This approach means that Registered Providers are using market
dwellings sales or market rental income to subsidise the delivery of affordable
housing. One such Registered Provider using this approach is Broadland
Housing Association which has established a wholly owned subsidiary,
Broadland St Benedicts to carry out market developments.
2.
Broadland St Benedicts request to purchase Council owned land.
2.1
Broadland St Benedicts has formally requested that the Council sells the
following Council owned sites as set out in Appendix N :

Land off Priory Close, Binham - (Retained Housing Site)

Part of land off Rectory Road, Edgefield - (Retained Housing Site)

Part of land off Eagle Road, Erpingham – (Retained Housing Site)

Land off Highfield Close, Great Ryburgh – (Retained Housing Site)

Land off Cornish Avenue, Trunch – (Retained Housing Site)

Land off Highfield Road, Fakenham – (Free - Car Park)
2.2
Of these sites five are retained housing sites and are recommended for
disposal through an options agreement. The site at Highfield Road,
Fakenham is not recommended as appropriate for disposal. Broadland St
Benedicts intention in purchasing the sites is to develop them to provide
housing of a mix of tenures including affordable homes to rent, intermediate
sale and open market. Across the five sites it is expected that 88 new homes
would be delivered, with approximately 35% of the homes affordable and
65% for market sale. Broadland St Benedicts will develop the sites and then
113
sell the completed affordable dwellings to Broadland Housing Association
and sell the market dwellings on the open market. The surplus it makes will
then be gift aided to Broadland Housing Association.
2.3
Although Broadland St Benedicts has requested to purchase the sites they
may choose not to proceed with the purchase of all the sites depending on
the outcome of an assessment of site suitability or the outcome of a planning
application. This report seeks approval to enter into an options agreement
for dispose of these sites for a total receipt of up to £1,030,000. The total
receipt received will depend on the number of sites which Broadland St
Benedicts ultimately decide to purchase and the number of market and
affordable dwellings developed on each site. The value for each site will
depend on the number of market and affordable plots developed in that site,
as the market plots will have a higher value than the plots which will be
developed to provide affordable housing.
2.4
The terms of the purchase by Broadland St Benedicts are set out in the letter
shown at Appendix N . It should be noted that Broadland St Benedicts has
requested a deferred payment purchase for all sites excepting the land at
Binham. This means that for the four other sites, the Council would receive its
payment for the land after the dwellings are completed and sold. The
payment for the land at Binham would be received once Broadland St
Benedicts have applied for and been granted planning permission on the
land.
3
The Disposal Process
3.1
A letter has been sent to Binham, Edgefield, Erpingham, Ryburgh and Trunch
Parish Councils to advise them of Broadland St Benedicts request to
purchase land in their parish/town.
3.2
Following the Cabinet decision, the next steps are to:
a)
Notify the Parish Councils of Cabinet’s decision.
b)
Agree an option agreement with Broadland St Benedicts for the purchase of
the five sites retained housing sites on the terms required by the Council and
as set out in Broadland St Benedicts letter of 29 April 2014.
c)
Complete the disposals of the individual sites, following approval of planning
applications and the ending of any leases or licenses on the sites, in
accordance with the Scheme of Delegation.
It is anticipated that the first site will be disposed of by the end of March 2015.
4
Options Considered
4.1
Option 1; Not to dispose of the six sites to Broadland St Benedicts.
This option was discounted as it would result in the loss of a capital receipt of up to
£1,030,000 and the potential loss of the provision of new homes, including
homes for affordable rent, intermediate sale and open market sale.
4.2
Option 2: Dispose of all six sites. This was discounted as the non-retained
housing site is not considered appropriate for disposal at this time.
4.3
Option 3: Recommend the disposal of the five retained housing sites to
Broadland St Benedicts.
114
This option is recommended as it would result in a capital receipt of up to £1,030,000
and will assist the delivery of approximately 88 new homes via five Exception
Housing Schemes.
5
Conclusions
5.1
Broadland St Benedicts’ formal request to purchase Council owned sites is to
provide new affordable and market homes. The market dwellings are being
provided in order to provide the subsidy needed to make the delivery of the
affordable dwellings viable. Broadland St Benedicts would undertake the
development of the sites and sell the completed affordable dwellings to
Broadland Housing Association, whilst the market dwellings would be sold on
the open market.
5.3
Sale of the five sites would generate a capital receipt of up to £1,030,000,
although the exact amount will depend on the number of sites which
Broadland St Benedicts chooses to purchase and the number of affordable
and market dwellings delivered on each site
6
Implications and Risks
6.1
Broadland St Benedicts’ formal request to purchase the sites includes six
conditions for the purchase, if these conditions are not met, the sites will
remain in the Council’s ownership. One condition relates to Broadland St
Benedict obtaining planning consent on the sites, this is a standard condition
for a residential land sale. Whilst the Council is the Local Planning Authority
the decision to dispose of its land is a separate matter and deciding to sell its
land is not an exercise of its authority as the Local Planning Authority. This
is a reputational issue for the Council and it should be clear at all times that
the decision to dispose of the sites is separate to any decision made by the
Council as Local Planning Authority to grant or refuse planning permission on
the six sites.
7
Financial Implications and Risks
7.1
Disposal of the five sites recommended for sale is likely to give rise to a
capital receipt of up to £1,030,000 for all five sites. It is made clear in
Broadland St Benedicts letter that the level of capital receipt the Council will
receive depends on the mix of dwellings for which planning consent is
received. This is because Broadland St Benedicts are proposing to pay the
land value on a per plot basis with a different value for the market and the
affordable plots. This means the number of dwellings which are ultimately
developed, and whether they are affordable or market dwellings will dictate
the capital receipt which is received. The amount of capital receipt received
will also depend on whether Broadland St Benedicts purchase all five sites,
or choose to purchase only some of these sites.
7.2
The disposal in this case complies with the Disposal, Investment and
Acquisition Policy (DIAP) in that it would be a disposal by private treaty. An
independent valuation of the six sites has therefore been carried out by the
DVS (District Valuer Services which is the commercial arm of the Valuation
Office Agency). The valuation was requested on a per plot basis for both
market and affordable dwellings as well as a whole site value for each of the
115
six sites. The DVS report is attached as Appendix O . This shows that the
DVS has identified (once the £150,000 valuation of the non-retained housing
site is removed) that the Council could receive a capital receipt of up to
£1,255,000, based on three sites containing market dwellings and
£1,205,000 when only two sites contain market dwellings.
7.3
As the disposal of the land is not to a Registered Provider but instead
to a private limited company, the disposal must be in accordance with the
DIAP and best consideration reasonably obtainable must be achieved. As
there is a shortfall between the value for these five sites attributed by
Broadland St Benedicts and the value identified by the DVS, it must be
considered whether the Broadland St Benedicts offer is in fact the best
consideration reasonably obtainable. The DIAP shows that the judgement of
whether best consideration reasonably obtainable is not purely financial and
can include non-monetary considerations. In addition, the Local Government
Act 1972: General Disposal Consent 2003, allows for a disposal at under
value where the disposal is for a well-being purpose and where the under
value does not exceed £2,000,000. In this case, the disposal of the land for
the provision of affordable housing and where applicable market housing,
would result in an improvement of the supply of affordable housing to meet
the local housing need of Binham, Edgefield, Erpingham, Great Ryburgh and
Trunch and the adjoining civil parishes. On this basis it can be considered
that the provision of affordable housing in these locations would improve the
well-being of those parts of the district and it would therefore be possible to
use the General Disposal Consent to dispose of the site at less than the DVS
valuation. The undervalue in accepting Broadland St Benedicts offer price
for these five sites would be between £175,000 and £225,000 depending on
whether 2 or 3 sites are developed to provide market dwellings. It should be
noted, that the Council has previously provided land for affordable housing
for free.
7.4
Broadland St Benedicts offer for the five sites has been predicated on
the delayed payment of the land value on four of the sites (as discussed at
2.5 above). This means that whilst the Council would dispose of all five sites,
it would, on disposal, only receive payment for one site, the land at Binham.
The capital receipt for the remaining four sites would be received in a number
of different tranches over a number of financial years. This means that the
Council will receive the payment for the land at Edgefield, Great Ryburgh and
Trunch as a lump sum once the affordable dwellings on each site are
completed. However, for Edgefield, the Council would receive one payment
once the affordable dwellings are completed and sold to Broadland Housing
Association and a number of separate payments as each market dwelling is
completed and sold. To encourage the timely development of the sites, it is
proposed that the sites which will be purchased on a deferred payment basis,
are sold subject to a clause which allows these sites to be returned to the
Council’s ownership if the homes are not constructed within a set number of
years from the sale of the land.
7.5
In order to mitigate against the risk that the Council would not receive
the capital receipt for the five sites which Broadland St Benedicts wants to
purchase on a deferred payment basis, the Council will impose a charge on
each site when it is disposed of. The charge will ensure that the Council’s
financial interest in the land is protected, should the financial position of
Broadland St Benedicts mean it is unable to pay for the land.
116
8
Sustainability
8.1
All the new homes will be provided in accordance with current building
regulation standards as a minimum. The dwellings will also be built in
compliance with the requirements of the Council’s Core Strategy which
requires homes are built to Level 3 of the Code for Sustainable Homes,
unless there is a change which means that this would not be required.
9
Equality and Diversity
9.1
There are no direct equality and diversity implications arising from this
proposal.
10
Section 17 Crime and Disorder considerations
10.1
There are no section 17 implications.
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122
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124
125
126
127
128
129
130
131
132
133
134
135
136
137
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Agenda Item No_______18_____
Local Investment Strategy – Request for Loan by Broadland Housing Association
Summary:
In September 2013 Cabinet approved the Local Investment
Strategy to provide loans to Registered Providers (and where
needed their wholly owned subsidiaries) to support the
delivery of new housing across the district. Following this
decision the availability of the loan fund was advertised and a
formal request for a loan was received from Broadland
Housing Association. Broadland Housing Association has
requested a loan of £3.5m to be paid in 3 tranches to be
repaid 10 years after the payment of the final tranche. In
addition they have requested a loan of £0.75m which will be
for a period of up to 3 years is paid to their wholly owned
subsidiary Broadland St Benedicts, this loan will be repaid to
allow the final tranche of the loan to Broadland Housing
Association to be paid. This report considers this request
and recommends that this loan request is approved.
Options considered:
Two options were considered:
Option 1 – to recommend that the loan was not approved,
this option was discounted as the application has
satisfactorily passed the due diligence process and meets the
requirements of a loan set out in the agreed loan process.
Option 2 – to recommend the loan was approved. This
option is recommended as the application meets the
requirements of a loan set out in the agreed loan process.
Whilst the loan requested will commit all the funding that is
currently available for the provision of loans, no other loan
requests have been received. It is considered appropriate to
commit the full funding currently available.
Conclusions:
Following the approval in September 2013 of the Council’s
Local Investment Strategy – Loans to Registered Providers,
the Council has received a formal bid from Broadland
Housing Association for a loan. The bid requests a loan of
£3.5m is provided to Broadland Housing Association and that
a loan of £0.75m is provided to their wholly owned subsidiary
Broadland St Benedicts, which is repaid in order for the final
tranche of the loan to Broadland Housing Association to be
paid.
The bid has been considered against the criteria agreed in
September 2013 and meets all the Council’s requirements.
The due diligence process carried out by Arlingclose
concludes that there is some risk in providing a loan to
Broadland Housing Association, but there is a risk in all
investments. Arlingclose support the provision of a loan to
Broadland Housing Association and have made two
recommendations which require a minimum of 110% security
140
for the loan and a regular monitoring and reporting
requirement within the loan agreements. Whilst there is a
risk of providing a loan, this can be satisfactorily mitigated
against and the benefits of providing a loan in terms of the
number of additional dwellings it will provide and the interest
payments the Council will receive on the loan outweigh the
inherent risk.
Recommendations:
Reasons for
Recommendations:
It is recommended that delegated authority is given to
the Head of Finance and the Portfolio Holder to approve
the loan request from Broadland Housing Association to
provide a loan of £3.5m to Broadland Housing
Association and £0.75m to Broadland St Benedicts which
will be repaid to allow the final tranche of the loan to
Broadland Housing Association to be paid, subject to:
1. The 3.5m available in the capital programme being
ring fenced for the provision of the agreed loans
to Broadland Housing Association and Broadland
St Benedicts.
2. The completion of loan agreements between the
Council and Broadland Housing Association and
Broadland St Benedicts in advance of any loan
payments being lent.
3. The required level of security for the loan being
provided as set out in this report being provided
immediately prior to the loan tranche payments
being lent.
4. Capital receipts from the repayments of principal
(which shall be on an Equal Instalment of
Principal basis) are applied to finance the Capital
Financing Requirement.
A) To increase the provision of housing, including
affordable housing across the district which supports
the Corporate Plan.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Cabinet paper: Local Investment Strategy – Provision of loans to Registered
Providers. 9 September 2013
Cabinet Member(s)
Ward(s) affected All
Contact Officer, telephone number and email: Nicola Turner, 01263 516222,
nicola.turner@north-norfolk.gov.uk
Malcolm Fry, 01263 516037, Malcolm.fry@north-norfolk.gov.uk
141
1.
Introduction
1.1
In September 2013, the Council approved the principal of providing loans to
Registered Providers and their wholly owned subsidiaries. In making this decision
it was recognised that due to the economic climate there was a lack of mediumterm funding available to Registered Providers which was negatively impacting on
their ability to deliver new homes. In addition the Council wanted to support the
delivery of new homes across the district because of the range of benefits this
provides in terms of contributing to the delivery of the Council’s Corporate Plan
and supporting the Council’s financial position through growth in the Council Tax
base and New Homes Bonus funding. In addition the return the Council has
achieved on its short term treasury investments had significantly reduced. A
range of options for a Local Investment Strategy were considered but the
provision of loans to Registered Providers offered the most appropriate
opportunity to meet a need for medium-term funding for Registered Providers
whilst also offering financial benefits to the Council and supporting the economy
through the provision of new homes.
1.2
The Cabinet report seeking approval of the Local Investment Strategy and the
provision of loans to Registered Providers included a paper which set out the
process for considering bids for a loan.
1.3
Following the Council decision to provide loans, letters were sent to 31
Registered Providers who had at least one general needs affordable dwelling in
Norfolk. The letter explained that the Council had introduced a loan scheme with
an initial £3.5m being available on a first come first served basis. The loan set
out the Council’s requirements for the loan:



Maximum funding available of £3.5m
Drawdown of the loan can be over a 3 year period
Loan to be repaid within 10 years on a repayment basis (other loan
periods may be agreed)
 Fee of 1.5% of the total loan amount to be paid to the Council
 Secured loan, security to be a minimum of 110% of the value of the loan.
The letter stated that bids should be submitted in writing or by email.
1.4
The Council only received three responses to these letters. Two Registered
Providers (RP) were unfortunately unable to take up loans. A third response from
Broadland Housing Association was a formal request for a loan. Without
contacting each RP to ask why they were not interested in the loan, it is
considered that the reason for the lack of response was a result of the fact that
many Registered Providers are concerned about taking on new funding which
would require the approval of their existing funders, such approval maybe on the
basis of re-pricing the existing loans, which would increase the costs of existing
loans.
2.
Broadland Housing Associations bid for a loan.
2.1
Broadland Housing Association’s formal bid for a loan is attached as Exempt
Appendix T. In the bid Broadland Housing Association (BHA) requested a loan of
£3.5m to fund residential development on six proposed sites across North
Norfolk, delivering an expected 103 new dwellings of which:
Affordable Rent
Intermediate
Sale
142
Open Market
Number
50
Percentage 49%
23
22%
30
29%
It should be noted that the total number of dwellings proposed and the split
between tenure shown above could change, if an alternative site(s) is developed
or the scheme appraisal suggests a different tenure mix is required.
2.2
The loan to BHA is requested to be paid in three tranches over three years, with
the loan period being 10 years from the payment of the final tranche. BHA’s bid
also requests that £0.75m is loaned to its wholly owned subsidiary Broadland St
Benedicts (BSB). This loan will be for a period of up to 3 years and will be repaid
prior to the last tranche to BHA being paid.
2.3
As BHA is a charitable organisation it established Broadland St Benedicts, which
is a limited company and a wholly owned subsidiary of BHA. BSB is not a
Registered Provider and is therefore not subject to regulation by the Homes and
Communities Agency. As BSB is a private limited company it is able to carry out
commercial activities and gift aid the surplus it makes back to BHA.
2.4
The bid proposes that BSB will develop all of the 103 homes proposed, with BHA
purchasing the rented and intermediate sale dwellings from BSB. BHA will enter
into a development agreement with BSB which will require it to purchase the
affordable housing and in return BSB will receive the purchase price as a number
of payments paid throughout the build process. BSB will then gift aid back the
surplus it makes on selling the open market dwellings to BHA and this profit will
provide the subsidy required to deliver the affordable housing.
2.5
BHA is not able to lend money that it has borrowed to its subsidiary and therefore
the Council is asked to provide a loan of £0.75m directly to BSB. Appendix Q
shows the relationship between BHA and BSB and the Council’s loan. It also
shows the flow of monies between BHA and BSB.
2.6
The drawdown arrangements for the two loans as stated in BHA formal bid letter
are shown below:
Broadland St Benedicts:
Year 1
£0.5m
Year 2
£0.25m
Loan is repaid in full in year 3
Broadland
Year 1
Year 2
Year 3
Housing
£1m
£1m
£1.5m
Association:
These arrangements and the amount the Council will lend in each year are set
out in Appendix R. BSB is required to repay its loan in full before the full £1.5m
requested for BHA in Year 3 can be loaned.
3
Consideration of the Bid
3.1
BHA has provided all the information required to consider their bid for a loan in
accordance with the process which was agreed in September 2013.
3.2
Assessment of the BHA against the criteria agreed in September 2013 shows
that the BHA bid is in full compliance as set out below:
1. Amount of loan in relation to available funding (initially £3.5m).
BHA’s bid is for £3.5m (whilst £0.75m is requested to be paid to BSB, this
will be repaid in order for the final tranche of the loan to be lent to BHA).
143
2. The loan must be used for building new homes in the North Norfolk
District Council area. BHA’s bid shows that they expect to deliver 103
new dwellings on six sites across the district.
3. The loan term is to be no more than 10 years unless otherwise
agreed by the Council. The loan to BHA will run for 10 years from the
last tranche, so part of the loan will run for more than 10 years. This
arrangement is acceptable.
4. The facility may be drawn in one lump sum or in agreed tranches
over a three year period. BHA has requested that the loan to BSB is
paid in two tranches and the loan to BHA is paid in three tranches.
5. The loan will be secured with a minimum of a 110% charge being
placed on the housing stock of the Registered Provider (RP),
incorporating a five year revaluation period at the RP’s expense.
BHA has sufficient unencumbered housing stock to offer the required
level of subsidy. BSB are looking to secure their loan on land and has
proposed that the loan will be secured on 2 sites, which when they have
planning permission will be worth at least 110% of the loan value.
6. Number of dwellings to be developed and value for money. BHA are
proposing to develop 103 new dwellings and this is considered good
value for money on the basis of a loan of £3.5m.
7. Risk See sections 3.3 to 3.4, 6.1 to 6.4 and 7.1 to 7.5.2.
See Appendix S for further information.
3.3
Arlingclose were commissioned to carry out the required Due Diligence process
for considering the loan bid. Arlingclose has advised that there is some risk
associated in providing a loan to BHA and its subsidiary BSB, however, there is a
risk with all investments. Arlingclose state that in the absence of alternative loan
applications and given the Council’s service objectives for the loan scheme, that
they would support the loan application, provided that the risks identified are
accepted by the Council and the recommendations made (by Arlingclose) are
implemented.
The specific recommendations to address the risk identified by Arlingclose are:
1. Full enforcement of requirements to secure the loan (minimum of 110% of the
value of the loan secured on unencumbered assets).
2. Require an explicit guarantee from BHA for the loan to BSB (if the loan could
not be provided to BHA in the first instance to on lend to BSB).
3. A regular monitoring and reporting programme of the financial position and
progress of the development plan for both BHA and BSB to ensure that the
risks identified in their report are regularly reviewed.
A copy of Arlingclose’s report is attached as Exempt Appendix U.
3.4
The option of BHA providing a guarantee to BSB for the £0.75m which would be
borrowed by BSB was discussed with BHA. If BHA were to provide a guarantee
to BSB, they would have to notify the Homes and Communities Agency (HCA)
which may choose to sanction the provision of a guarantee. This is because
there have been cases where social housing assets have been put at risk by
these guarantees and the HCA is keen for this not to be repeated. BSB will
therefore secure its loan through land which will have the benefit of planning
permission. This means that if BSB did default the Council would be able to sell
the land to recover any outstanding monies. In addition BHA cannot lend monies
it has borrowed to BSB.
144
3.5
BHA’s bid for a loan is therefore considered to meet all the requirements of the
loan scheme as the risk of providing a loan can be satisfactorily mitigated against
by ensuring that Arlingclose’s first and third recommendations are enacted and in
with reference to BSB, requiring that their loan is secured on land.
3.6
Arlingclose has now identified indicative commercial interest rates for the loans to
BHA and BSB which could be on a fixed or variable rate basis and include a
minimum and maximum rate which should be charged. The minimum rates
exceed the rate which would apply to a Council loan of the equivalent loan
amount and period (as at 2 May 2014) from the Public Works Loan Board.
3.7
Arlingclose has commented further that:

The additional information they have received on the pension deficit and
the revised cashflows are favorable and provide additional comfort on the
creditworthiness of the borrowers.

Securing the BSB loan on land is acceptable.

They would want to review BHA’s accounts for the year ending 31 March
2014 prior to the issue of the loans.
A copy of the full report is attached at Exempt Appendix V.
3.8
The interest rates identified by Arlingclose must be considered to be indicative at
this stage as a commercial interest rate will need to be identified immediately
prior to any loan being paid. Subject to Cabinet agreeing to provide a loan to
BHA and BSB, it will be necessary to complete loan agreements. The loan
agreements will state the terms of the loan and will ensure that the Council
receives the required level of security for its loans to both BHA and BSB. The
loan agreement will be completed prior to the first loan tranches being lent.
3.9
Template loan agreements for the provision of a loan to a RP and an
unregistered subsidiary of a RP have now been prepared. The template loan
agreements have been shared with BHA. BHA and its Board will want to review
the agreements and the likely interest rates which will apply to the loans. They
may wish to ask for changes to the loan agreement to be made. These changes
will be considered and can be accepted where they do not reduce or limit the
Council’s protections so that the risk of a loan can no longer be satisfactorily
mitigated against.
4
Options Considered
4.1
Option 1: Not to recommend approval of Broadland Housing Association’s bid
Broadland Housing Association’s bid provided all the information required to
consider their bid and meets all the criteria agreed in September 2013.
Arlingclose’s due diligence of the bid has concluded that whilst there is some risk,
they do support the provision of a loan and make a number of recommendations
which the Council should enact if providing a loan. Whilst BHA is not able to
provide a guarantee for the loan to BSB, BSB is able to offer its own security for
the loan. Therefore, BHA’s bid makes all of the Council’s requirements and a
recommendation of refusal would not be appropriate or allow the Council’s
objectives for the Local Investment Strategy to be met.
4.3
Option 2: Recommend the approval of Broadland Housing Association’s request
for a loan.
This option was recommended to Cabinet as BHA’s loan meets all the Council’s
requirements and the risks of providing a loan can be satisfactorily mitigated
145
against. Whilst this bid would use all of the loan funds initially available, it will
provide a good outcome in terms of the number of additional dwellings delivered.
In addition there have been no other applications for loan funding. It is therefore
considered appropriate to commit the full funding currently available. It will also
be possible to recycle the loan once it is repaid to provide further loans.
5
Conclusions
5.1
Following the approval in September 2013 of the Council’s Local Investment
Strategy – Loans to Registered Providers, the Council has received a formal bid
from Broadland Housing Association for a loan. The bid requests a loan of £3.5m
is provided to Broadland Housing Association and that a loan of £0.75m is
provided to their wholly owned subsidiary Broadland St Benedicts, which is repaid
in order for the final tranche of the loan to Broadland Housing Association to be
paid.
5.2
The bid has been considered against the criteria agreed in September 2013 and
meets all the Council’s requirements. The due diligence process carried out by
Arlingclose concludes that there is some risk in providing a loan to Broadland
Housing Association, but there is a risk in all investments. Arlingclose support the
provision of a loan to Broadland Housing Association and have made two
recommendations which require a minimum of 110% security for the loan and a
regular monitoring and reporting requirement within the loan agreements. Whilst
there is a risk of providing a loan, this can be satisfactorily mitigated against and
the benefits of providing a loan in terms of the number of additional dwellings it
will provide and the interest payments the Council will receive on the loan
outweigh the inherent risk.
6
Implications and Risks
6.1
The bid from BHA for a loan of £3.5m will, if approved mean that the Council will
have fully committed the £3.5m initially identified for the provision of loans to
Registered Providers. If a subsequent bid is received prior to the loan being
repaid, the Council will not be able to consider the bid unless it is able to identify
additional resources to fund a further loan. The availability of the Council’s loan
fund was, however, widely advertised with 31 Registered Providers receiving a
written request to make a bid for the loan. The invitation to bid was clear that bids
would be considered on a first come first served basis. It is therefore
unnecessary to delay making a decision on the BHA bid for a loan. If the Council
chooses to delay a decision it could result in a negative perception of the Council.
It should be noted, however, that the loan will be repaid on an Equal Installments
of Principal (EIP) basis, which means that the Council will throughout the period of
the loan receive repayments of the loan principal in addition to interest, which
means it would be able to make further, but smaller loans, if it so required, prior to
the loan being repaid in full. Any loan, once repaid, will mean that the Council will
have capital funding to provide further loans.
6.2
Committing £3.5m to a loan to Broadland Housing Association will mean that this
funding will not be available to meet any other capital expenditure needs until the
loan is repaid. However, the Council in September 2013 determined to commit
£3.5m towards the provision of loans and this has been funded by a virement from
the Council’s Housing Capital Programme and from other internal resources. In
order to ensure that if the Council did need to use prudential borrowing to meet its
capital expenditure requirements during the period of the loan it would not be
146
financially disadvantaged by providing the loan; the commercial interest rate used
for the loan will be checked to ensure that it is higher than the prevailing interest
rates for borrowing from the Public Works Loan Board.
6.3
The provision of a loan will act to increase the delivery of new homes across the
district by ensuring that BHA has the medium term funding it requires in order to
deliver 103 new dwellings across the district. If the Council chooses not to
approve BHA’s bid for a loan it will mean that it is unlikely that BHA will be able to
deliver these new homes and the benefits they will offer to the Council, the local
communities and the economy would be lost.
6.4
The ability of BHA to deliver the 103 dwellings it is expecting to develop with the
loan is dependent on its ability to secure planning permission on the six sites it
has identified as potential sites for the loan. BHA is aware of the risks and the six
sites it has identified may not ultimately be the sites which are developed using
the Council’s loan funding; BHA has identified a number of alternative sites which
could be developed instead. Whilst the Council is also the Local Planning
Authority, no planning applications have yet been submitted and decision to
provide a loan is a separate matter. BHA were required as part of their
application to state the expected location of the schemes they would develop
along with the expected tenure mix. This information is indicative only and may
be subject to revision. This information was required in order to ensure that bids
for a loan were able to be assessed against the requirements of the loan scheme.
7
Financial Implications and Risks
7.1
The interest rates identified by Arlingclose are indicative only as they reflect the
rates which would be a commercial loan for a loan granted on the 8 May. These
rates are higher than the rate which would apply to an equivalent loan from the
Public Works Loan Board. The indicative interest rates for the loans to BHA and
BSB suggests that the Council could receive total interest in the region of
£870,000 over the period of the loans. The final interest figure the Council
receives will depend on the commercial interest rate which applies to the loan.
Exempt Appendix X provides a breakdown of the interest and capital repayments
which will be received during the period of the loan from both BHA and BSB,
based on the indicative rates.
In lending BHA £3.5m, the Council will no longer benefit from the interest it would
have received on this funding which was previously invested on a short term
basis. The table below shows the net interest receivable per annum from BHA
after the lost interest income has been taken into account.
Interest
Averaged loan interest per £62,100
annum (£3.5million loan)
Interest lost per annum £31,500
(£3.5million at 0.9%)
Net increase in interest
£30,600
receivable per annum
In total, when considering the loans to both BHA and BSB, based on the
indicative rates for such loans, the net interest the Council would receive is
£30,600 per annum. Please note, the figures shown for interest above are for
147
information only. In comparison, the Council is currently receiving returns of
0.41% to 0.54% on its short term investments.
7.2
The actual interest the Council receives will depend on what is a commercial rate
of interest at the point when the loan is agreed. There is a risk that the Council
could, if interest rates increase, achieve a lower return than could be achieved
from other investments. This can be mitigated against in part by ensuring that the
interest rate charged on the Council’s loan is fully reflective of current commercial
rates of interest. The commercial loan is a medium term loan and the return
achieved should be judged when assessed as the total return achieved over the
period of the loan. Additionally, as that part of the loan which is provided to a
wholly owned subsidiary of a Registered Provider will be for a shorter period, this
reduces the risk of interest rate increases reducing the rate of return achieved on
the loan overall.
7.3
7.1 above, shows the expected interest which would be received on the loan.
However, this excludes the additional income the Council would receive
generated from the completion of more dwellings being provided in the district in
terms of that element of the Council Tax it is able to retain and New Homes
Bonus.
7.4
The advancing of a loan to a RP must be treated as capital expenditure by the
Council. This expenditure will give rise to a Capital Financing Requirement
(CFR). If there are no useable capital receipts, revenue or reserves immediately
available then a charge known as a Minimum Revenue Provision (MPR) must be
made to the Revenue Account over the life of the underlying asset (which would
impact upon the Council Tax payer).
MRP will be avoided by applying the loan repayments made by the Registered
Provider each year to finance the capital expenditure.
7.5
Arlingclose has stated that there is a risk in providing a loan to BHA (see Exempt
Appendix U for further details). The level of risk presented by providing a loan to
both BHA and BSB has been carefully considered in terms of the likelihood and
consequences of the risk that there will be a default on the loan or alternatively
that BHA or BSB will become insolvent which would result in a default on the
Council’s loans. The mitigating factors are also considered.
7.5.1
Likelihood
BHA is a RP and as such is subject to regulation by the HCA. The HCA monitors
the financial status of RP’s and issues judgements on their viability. In addition
the HCA collects quarterly information on the cash requirements and facilities
available to RP’s. BHA’s most recent Regulatory Judgment dated May 2013
shows that BHA has the highest viability rating (V1) issued by the HCA which
means that “The provider meets the requirements on viability set out in the
Governance and Financial Viability Standard and has the capacity to mitigate its
exposures effectively.” The HCA publishes a list of Registered Providers which
have their current assessments of regulatory compliance under review. In these
cases the HCA will be actively engaging with that RP to address the issues,
which mean that their viability or governance grading may be reduced and fall
below the minimum compliance rating of 2. This means that there will be a clear
warning of any financial concerns with a RP.
Any loan to BHA is subject to the provisions of Sections 148-168 of the Housing
and Regeneration Act 2008 which provides specific protections which reduce the
148
risk of default due to insolvency: this act provides for a moratorium period of 28
days (this can be extended) to be imposed if a RP is or about to become
insolvent. The moratorium provides time for a rescue package to be put in place
to prevent affordable homes being lost to repay debt. To date, whilst there have
been two high profile cases of Registered Providers facing insolvency, neither
became insolvent and became part of larger Registered Providers which
prevented the loans defaulting. The likelihood of BHA defaulting on their loan
with the Council and / or becoming insolvent is therefore low.
BSB is a limited company which is wholly owned by the Broadland Housing
Group (of which BHA is part). The company carries out development activities for
the group. BSB will be responsible for the development of the 103 dwellings
proposed and therefore will carry the risk of the development in terms of
increased costs and reduced income. However, as discussed at 2.4 above, BHA
will enter into a development agreement which means that they will be required to
purchase the affordable dwellings (both for rent and intermediate sale/shared
ownership) from BSB and in return will make staged payments throughout the
build process. BSB will only be at risk in terms of a reduction in the income from
or delays in achieving the sales of the open market dwelling. BSB has prepared
a cashflow for the proposed developments which the loan will support; analysis of
these cashflows has shown that the costs for the proposed developments have
been carefully considered and allow for cost increases. The likelihood of BSB
becoming insolvent as a result of the proposed development which the loan
would support is therefore low.
7.5.2
Consequences and Mitigation
If BHA or BSB become insolvent, the Council’s loan would default and the
Council would not receive its interest payments or repayments of capital.
However, as the Council requires security for its loan of at least 110% of the
value of the loan, it would be able to sell its security to recover its debt.
In terms of BHA, the Council would not be able to require the sale of the dwellings
which provide its security until the statutory moriatum period discussed at 7.5.1
above had expired. In reality, the Council would not be required to sell the
dwellings as they would be transferred to a new RP along with the requirement to
service the Council’s loan. If the Council did need to sell the dwellings providing
security for its loan after the statutory moriatum period had ended, it would look to
sell them to a RP to ensure they remained as affordable housing, or could instead
choose to retain the ownership of these dwellings and benefit from the rental
income (less costs of management and maintenance).
In terms of BSB, the Council would need to sell the land which would form the
Council’s security to recover its debt. If BSB had commenced development when
it defaulted on the Council’s loan or became insolvent, the Council may be faced
with partially constructed dwellings. In this case, the Council may choose to
complete the dwellings in order to ensure the Council’s outstanding loan was
repaid in full and / or more promptly.
If the dwellings were completed, the
Council could sell the dwellings to recover its outstanding loan. If BSB is not
able to offer the required 110% of the loan value as security, the Council would
need to decide whether the level of security offered is sufficient to protect the
Council’s interests against the likelihood of default. The consequences of not
having sufficient security is that the Council could, if there was default or
insolvency, be unable to fully recover its outstanding loan. As discussed at 7.5.1
above, the likelihood of default is low. In addition the amount and period of the
149
loan are mitigating factors, as the loan amount is £0.75m and the loan period is
up to three years. Finally, if BSB defaulted on its loan, BHA would not be able to
access the final tranche of its loan funding. BHA therefore has an ongoing
interest (other than that BSB is its subsidiary) in ensuring that there is no default
on the BSB loan.
The Council will also require as a term of the loan that it receives regular financial
information on both BHA and BSB and reports on the progress of the proposed
developments. This will ensure that the Council is able to identify at an early
stage any concerns with the development or the financial health of BHA or BSB
which could lead to a default on the Council’s loan. In addition the Council will
monitor the receipt of all payments of interest and principal due to it, which will
enable the Council to identify at a very early stage any potential issues, which
could mean there was a risk to the Council’s loan being repaid. This will ensure
that early action could be taken to prevent any default.
The loan will be repaid on an Equal Installment of Principal (EIP) basis, which
acts to reduce the Council’s risk throughout the period of the loan as the amount
of loan outstanding reduces throughout the loan term.
Finally, the Council will, prior to the lending of each loan tranche, review the most
recent management accounts and regulatory information available to ensure that
there are no issues which would change the risks of providing that loan tranche
payment to BHA or BSB.
8
Sustainability
8.1
All the new homes will be provided in accordance with current building regulation
standards as a minimum. The dwellings will also be built in compliance with the
requirements of the Council’s Core Strategy which requires homes are built to
Level 3 of the Code for Sustainable Homes, unless there is a change which
means that this would not be required.
9
Equality and Diversity
9.1
There are no equality and diversity implications.
10
Section 17 Crime and Disorder considerations
10.1
There are no section 17 implications.
150
Appendix Q
NNDC
Loan of £3.5m repaid
Loan of £0.75m repaid
£3.5m loan
£0.75m loan
Broadland
Housing
Association (BHA)
Development Agreement
Buys Affordable
Rented and Shared
Ownership homes
from BSB
Payment for affordable
dwellings
Retains Affordable
Rented dwellings
Broadland St
Benedict’s (BSB)
Sells Shared
Ownership
dwellings
Key: NNDC funding
Broadland Housing Association money
Broadland St Benedict’s money
Gift aids profit from
sales to BHA
151
Constructs
homes
Sells Open
Market
Appendix R
Broadland Housing
Association (BHA)
Broadland St
Benedict’s (BSB)
NNDC Loan
Pot
£3.5m
Year 1
£1m
(2014/15)
Tranche 1: Term 12
years
Year 2
£1m
(2015/16)
Tranche 2: Term 11
years
£0.5m
Tranche 1: Term 2
years
£0.25m
Tranche 2: Term 1
year
BSB repays
£0.75m
Year 3
(2016/17)
£1.5m
£2m now
available
£0.75m
now
available
£1.5m now
available
Tranche 3: Term 10
years
Year 4
(2017/18)
£3.5m
borrowed
£0.75m
borrowed
and repaid
Key: NNDC Funding
Broadland St Benedict’s funding
152
Note: The timescales for loan tranche payments are indicative
at this time.
£3.5m lent
Appendix S
Stage 1 Assessment and Due Diligence
Scoring Rationale
Functionality
Section
Question
Weighting
Weighting
%
20
No answer/Poor answer that does not
meet minimum requirements
RP 1
Meets all requirements/Offers best
outcome
Score
Weighted Score
9.7
Q1
Is the amount of loan requested within the available budget?
45%
0
10
10
4.5
Q2
Will the loan provide new affordable housing in the North Norfolk District Council administrative area?
25%
0
10
10
2.5
Q3
Is the term of the loan 10 years?
15%
0
10
0
0
If answer to 3 is no, is the loan period acceptable to the Council?
15%
0
10
8
1.2
10
1.5
Q4
Q5
Is the loan to be advanced in one lump sum or agreed tranches over a 3 year period?
Value for Money
Due Diligence
Q6
15%
10
Can the Housing Association provide a minimum of 110% of the loan value as a secured charge?
0
10
10
Agreed tranches over a 3 year period.
On the basis that this will provide 103
additional dwellings this relates to a
contribution of £33,980 per dwelling
which is considered to be good value for
money.
8.4
15%
0
10
0
10
7
4
5.8
BHA has advised that they have £45m of
unencumbered housing stock which is
more than is required to provide 110%
security on a loan of £3.5m. A score of 7
has been awarded to reflect the
Broadland St Benedicts security on land,
they have offered at least 110% security,
which is the level required. (Arlingclose
recommend a guarantee from BHA in
which case the score would have been
10).
1.75
Q7
Does the credit rating or score show the Housing Association is an acceptable risk?
Q8
Is the Governance Score G1 or G2? (Score 10 for G1 and 5 for G2)
15%
0
10
10
1.5
Q9
Is the Viability Score V1 or V2 (Score 10 for V1 and 5 for V2)
15%
0
10
10
1.5
Q10
Does the RP have sufficient income to meet its immediate working capital needs?
15%
0
10
10
1.5
Q11
Opinion of the Auditor’s Report to the Accounts – the Audit opinion must be unqualified to score 10.
15%
0
10
10
1.5
Justification for scoring and additional
comments
1.0
10
70
25%
Overall
Weighted
Section Score
1.9
Broadland Housing Association (BHA)
has requested a loan of £3.5m which is
available.
BHA's bid letter states that that loan will
fund 73 affordable dwellings on 6 sites
across the NNDC area and a further 30
open market dwellings.
The loan to Broadland St Benedict's will
be repaid in year 3 allowing this funding
to be used to fully fund the loan to BHA.
The loan to BHA will be paid in at least 3
tranches over 3 years, BHA have asked
that the loan to BHA be for a period of 10
years from the final payment. This
means that part of the loan will run for
longer than 10 years.
The loan to BHA will be paid in a number
of tranches, with the term of the loan
running for 10 years from the final
tranche, all tranches which will end within
the same year. As the Council will
receive repayments of principal as well
as interest, on balance, this is considered
acceptable, but as some parts of the loan
will run for longer than 10 years a score
of 8 has been awarded.
10.0
100%
Is the loan value for money in terms of the number of dwellings proposed?
Weighted
Section Score
BHA has not got a credit scoring or
rating, this is not unusual. Score of 4
awarded as BHA's Treasury Advisors did
an assessment of their likely score using
Moody's criteria which resulted in a
shadow rating of A2.
HCA regulatory judgment May 2013
shows a G1 score for Governance.
HCA regulatory judgment May 2013
shows a V1 score for Viability.
Reviews indicate that BHA has sufficient
income to meet its working capital needs.
For the accounts up to 31 March 2013 an
unqualified Auditor's report was given.
0.6
8.8
Maximum score is 10
Stage 2 Due Diligence
Scoring Rationale
Q1
Q2
Due Diligence
Can the Housing Association provide the required level of security (as demonstrated by the
assessment of commerciality)?
Can the Housing Association service and repay the loan on the required terms?
Section
Question
Weighting
Weighting
%
100
RP 1
No answer/Poor answer that does not
meet minimum requirements
Meets all requirements/Offers best
outcome
50%
0
10
0
50%
0
10
0
Score
Weighted Score
Weighted
Section Score
0.0
Overall
Weighted
Section Score
0.0
0.0
At Stage 2, the score achieved must be 10.
Stage 1 Assessment:
Completed by Nicola Turner and Malcolm Fry on 9 April 2014 and amended 12 May 2014 by Nicola Turner to reflect updated information on Broadland St Benedicts security.
153
Justification for scoring and additional
comments