Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
31 May 2013
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 10th June 2013 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. Coffee will be available in the staff restaurant at 9.30 a.m.
and at the break.
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 T Ivory, Mr J Lee, Mr W
Northam, Mr R Oliver, 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 04
March 2013.
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.
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.
7.
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.
8.
2012/13 OUTTURN REPORT
(Page 7)
(Appendix A – p.21) (Appendix B – p.22) (Appendix C – p.48)
(Appendix D – p.51) (Appendix E – p.56)
Summary:
This report presents the outturn position for the revenue
account and capital programme for the 2012/13
financial year. Details are included within the report of
the more significant year-end variances compared to
the revised budget for 2012/13. 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 essentially provides a final budget
monitoring position for the 2012/13 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 earmarks funding for future projects.
Conclusions:
The outturn position on the revenue account as at 31
March 2013 shows an underspend for the year of
£185,662 which is being recommended to be
transferred to the Invest to Save earmarked reserve.
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 remains within the current recommended level.
.
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 2012/13;
b) The transfers to and from reserves as detailed
within the report (and appendix C) along with the
corresponding updates to the 2013/14 budget;
c)
Transfer the surplus of £185,662 to the
Restructuring and Invest to Save Reserve;
d) The financing of the 2012/13 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 2013;
f) The updated capital programme for 2013/14 to
2014/15 and the associated financing of the
schemes as outlined within the report and detailed
at Appendix E.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2012/13 that will be used to
produce the statutory accounts for 2012/13. To provide
funding for ongoing projects and commitments within
earmarked reserves as detailed in the main body of the
report and to earmark funding for one-off costs in
relation to business transformation in respect of ICT
and Customer strategies.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone no:
Email:
Cllr W Northam
All
Karen Sly
01263 516243
Karen.sly@north-norfolk.gov.uk
9.
TREASURY MANAGEMENT ANNUAL REPORT 2012-13
(Page 63)
(Appendix F – p.68) (Appendix G – p.69) (Appendix H – p.70)
Summary:
This report sets out the Treasury Management activities
actually undertaken during 2012/13 compared with the
Treasury Management Strategy for the year.
Options Considered:
This report must be prepared to ensure the Council
complies with the CIPFA Treasury Management and
Prudential Codes.
Treasury activities for the year have been carried out in
accordance with the CIPFA Code and the Council‟s
Treasury Strategy.
Conclusions:
Recommendation:
10.
That the Council be asked to RESOLVE that The
Treasury Management Annual Report and Prudential
Indicators for 2012/13 are approved.
Reasons for
Recommendation:
Approval by Council demonstrates compliance with the
Codes.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone no:
Email:
Cllr W Northam
All
Tony Brown
01263 516126
tony.brown@north-norfolk.gov.uk
(Page 74)
DEBT RECOVERY 2012-13
Summary:
This is an annual report detailing the council‟s collection
performance and debt management arrangements for 2012/13
The report includes a:




Recommendations:
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone no:
Email:
A summary of debts written off in each debt area
showing the reasons for write-off and values.
Collection performance for Council Tax and NonDomestic Rates.
Level of arrears outstanding
Level of provision for bad and doubtful debts
To approve the annual report giving details of the
Council’s write-offs in accordance with the Council’s Debt
Write-Off Policy and performance in relation to revenues
collection.
Cllr W Northam
All
Louise Wolsey
01263 516081
Louise.wolsey@north-norfolk.gov.uk
11.
ANNUAL REPORT AND AMENDMENT TO ANNUAL ACTION PLAN 2013-14
(Page 81)
(Appendix I – p.85)
Summary:
Options considered:
This report outlines the key elements of the Annual Report
2012/13 to be published in July 2013 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 2012/13 and show achievement against targets.
Publish a text only version of the Annual Report.
Publish a version of the report suitable for a public audience.
Conclusions:
The Annual Report 2012/13 concludes that North Norfolk District
Council continues to deliver good performance.
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 2012/13.
4) That Cabinet approve the addition of an activity to the
Annual Action Plan 2013/14 as shown in paragraph 5.2
12.
Reasons for
Recommendations:
To comply with the provisions of the Council Performance
Management Framework and local government best practice.
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone no:
Email:
All
All
Helen Thomas
01263 516214
Helen.thomas@north-norfolk.gov.uk
LEISURE CONTRACT PROCUREMENT
Summary:
(Page 118)
The Council‟s current leisure contract with DC Leisure is due
to expire on 31 March 2014. There is an option within the
current contract to extend the arrangements for up to 5 years,
subject to mutual agreement. This report discusses the
potential options around the procurement of a new contract
while also considering the future of the Splash leisure facility
in Sheringham which has now been operating for 25 years.
Options considered:
Leisure contract –
- whether to extend with the current contractor and if so
for how long;
- consideration of the most appropriate model for
delivering these services in the future including
traditional procurement with an external provider,
Trust options, to bring the services back in house or
some form of new hybrid arrangement;
- depending on the decision taken in relation to the
most appropriate delivery model, consideration of the
various options for procuring any new contract,
including the use of external support and the issuance
of a PIN (Prior Indicative Notice) to gauge supplier
interest and feedback in relation to the contract
opportunity and the potential redevelopment of the
Splash facility;
- how to „package‟ the future contract arrangements
and what if any additional services to include as
potential additions ie dual use sports centres,
woodlands etc.
The report also considers initial redevelopment
opportunities for the Splash leisure facility at
Sheringham –
- the Splash facility is now 25 years old, the Council
needs to consider all options around the future
provision of these facilities.
Conclusions:
Entering into some form of contract extension with the current
providers DC Leisure would allow the Council the necessary
time to fully explore all of the potential operating models
whilst also engaging with the market, through the production
of a Prior Information Notice (PIN), to help shape any new
contract. The extension may also result in reductions in the
current contract management fee. Furthermore it would allow
for detailed investigations to be undertaken into all of the
potential options regarding the Splash leisure facilities.
Recommendations:
It is recommended that Cabinet;
1. Approve a contract extension with DC Leisure to
enable a full analysis of all the options available
for future contractual arrangements and the
potential redevelopment of the Splash site.
2. Delegate to the Corporate Director and Portfolio
holder for Leisure the power to progress the
arrangements for/and to conclude the appropriate
length of contract extension with DC Leisure to
achieve the best outcome for the Council.
3. Approve budget provision of £9,000 from the
General Reserve to commission support from
Improvement East to facilitate the production of a
Prior Information Notice (PIN) to help consult with
the market to explore contract options.
Reasons for
Recommendations:
Cabinet Member(s)
Ward(s) affected
Contact Officer:
Telephone no:
Email:
13.
To allow for sufficient time to fully explore all of the potential
operating models and procurement options in relation to any
new leisure contract whilst potentially achieving revenue
savings on the current contract cost. A contract extension
would also provide the time to assess the options regarding
any re-provision of the Splash facility.
Cllrs J Lee and R Oliver
Sheringham
Duncan Ellis
01263 516330
Duncan.ellis@north-norfolk.gov.uk
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.”
14.
PRIVATE BUSINESS
Agenda Item 2__
CABINET
Minutes of the meeting of the Cabinet held on Monday 13 May 2013 at the Council
Offices, Holt Road, Cromer at 10.00am.
Members Present:
Mr B Cabbell Manners
Mrs A Fitch-Tillett
Mr T Ivory
Mr J Lee
Mr R Oliver (Chairman)
Mr R Wright
Also attending:
Mrs L Brettle
Mrs A Claussen-Reynolds
Ms B Palmer
Mr R Reynolds
Mr E Seward
Mr R Shepherd
Mr B Smith
Mr G Williams
Mr D Young
Mrs A Claussen-Reynolds
Ms V Gay
Mrs P Grove-Jones
Mr P High
Officers in
Attendance:
1.
The Chief Executive, the Corporate Directors, the Head of Finance,
Planning Legal Manager, the Revenues and Benefits Services
Manager, the Coast and Community Partnerships Manager and the
Community projects Manager
APOLOGIES FOR ABSENCE
Mr T FitzPatrick and Mr W Northam
2.
MINUTES
The Minutes of the meeting held on 04 March 2013 were confirmed as a correct
record and signed by the Chairman.
3.
PUBLIC QUESTIONS
Mr N Morter wished to speak in relation to Item 13 of the Agenda: The Chairman
proposed that the item was moved so that it could be taken earlier and a response
could be provided to Mr Morter’s question.
4.
ITEMS OF URGENT BUSINESS
An item of urgent business had been received in relation to Planning Application
PF/11/0983 for the erection of a wind turbine and associated infrastructure at Pond
Farm, Bodham. The Planning Legal Manager explained that the initial application
was refused by the Development Committee at their meeting on 23 August 2012 but
an appeal against that decision had been allowed. Cabinet was required to consider
as a matter of urgency whether that appeal decision should be challenged by way of
an application of the High Court under s288 of the Town and Country Planning Act
1990. The item was urgent because the time limit for lodging an application to
challenge an appeal decision was six weeks from the date of the decision and the
deadline would expire on 20 May 2013. He informed Members that there was a
Cabinet
1
13 May 2013
1
potential cost to the Council of £20,000 if they agreed to challenge the appeal
decision.
The Chairman invited Mr B Cabbell Manners, Portfolio Holder for Planning and
Planning Policy to speak. He said that the decision by the Development Committee
to refuse the initial planning application had been unanimous and he proposed that
the appeal decision was challenged. Mr R Wright commented that he felt that it was
important to recognise that the site was situated adjacent to an Area of Outstanding
Natural Beauty (AONB).
It was proposed by Mr B Cabbell Manners, seconded by Mr R Wright and
RESOLVED
1.
To instruct the Head of Legal to initiate a legal challenge against the Inspector’s
decision, reference no: APP/Y2620/A/12/2184043
2. To make budgetary provision for £20,000 from the general reserve.
5.
DECLARATIONS OF INTEREST
None
6.
JOINT STAFF CONSULTATIVE COMMITTEE
RESOLVED that
The minutes of the meeting of the Joint Staff Consultative Committee held on 25
March 2013 be received and the following recommendations contained therein
adopted as follows:
1. That the car allowance assessment form be reviewed.
2. That the impact on recruitment and retention of staff of the removal of the cash
equivalent/lease car allowances be reviewed and reported back to the Joint Staff
Consultative Committee at its meeting on 9 September 2013.
7.
CLOSED CIRCUIT TELEVISION WORKING PARTY
RESOLVED that
The minutes of the meeting of the CCTV Working Party held on 18 March 2013 be
received.
8.
PROPOSED DESIGNATION OF LOCAL DEVELOPMENT ORDER ON LAND AT
EGMERE – REPORT ON RESPONSES RECEIVED DURING THE
CONSULTATION PROCESS AND PROPOSED FURTHER ACTION
The Chairman invited Mr N Morter to speak. Mr Morter explained that he resided at
the Old Control Tower in Egmere and that he had been encouraged by the
consultation exercise and now supported the proposals. He urged Members to give
further consideration to the following points:
 The heritage of the airfield at North Creake. There was some concern
regarding the status of the hangar which was located in the area of land
proposed for LDO designation to the east of the B1105 road.
 The speed limit on the B1105 road. It was essential that the current limit
through Bunkers Hill / Egmere was reduced to 40mph.
Cabinet
2
13 May 2013
2


The design guide. There should be further consultation to ensure that
residents’ views were considered regarding any development.
Sustainability. A longer-term view should be taken regarding providing better
public transport to access the proposed site
The Corporate Director then briefly summarised the report. He said that it sought to
provide Members with details of the consultation exercise undertaken and the
responses received, following the endorsement by Cabinet of the initial proposal to
designate land at Egmere for future development in support of offshore wind energy
developments off the North Norfolk Coast at its meeting of 13th December 2012. He
updated members on the recent enactment of the Growth and Infrastructure Bill
which meant that there was no longer a requirement for a Local Development Order
to be approved by the Secretary of State for Communities and Local Government.
In response to the points that Mr Morter had raised, the Corporate Director said that
all of the issues would be considered further as details of the LDO were finalised..
Consideration was being given to revising the boundary of the LDO and the
commissioning of a landscape visual impact assessment and habitat survey would
ensure that any impact on the local environment was fully assessed.
Members were invited to ask questions:
a)
b)
Mrs P Grove-Jones was concerned about the inclusion 14.8 hectares of
greenfield land currently in agricultural use within the proposed area. She felt
that it could trigger interest in further development and sought assurance that
there were conditions in place to prevent this. The Corporate Director said
thatthe production of a design guide and a landscaping plan were a requirement
of the Local Development Order and would ensure that development would not
proceed in an unco-ordinated way or outside of the defined area of the LDO.
Mr P W Moore said that he was pleased to see a recommendation to
commission a Landscape Visual Impact Assessment and Stage 1 Habitat
Survey.
The Chairman then read a brief statement from the local member for Egmere and
Portfolio Holder for offshore energy investment, Mr T FitzPatrick, in support of the
proposal. He said that he was pleased that the proposed revisions to the boundary of
the LDO addressed local residents’ concerns and that he would continue to support a
reduction in the speed limit on the B1105. The statement concluded by saying that
the proposed order would allow the area to seek further benefits from the offshore
renewable industry building on the 50 permanent jobs recently established on the
site by SCIRA, whilst protecting the tourist offering of Wells.
Mr T Ivory said that when the issue last came to Cabinet there were 3 speakers. He
was pleased to see that they were now broadly supportive of the proposals.
It was proposed by Mr B Cabbell Manners, seconded by Mr R Wright and
RESOLVED:
Cabinet
1.
To note the contents of the comments received on the proposed Egmere Local
Development Order through the public consultation process and invite comment
on the representations received.
2.
To make available a budget of up to £20,000 from the General Reserve to
commission a Landscape Visual Impact Assessment and Stage 1 Habitat Survey
so as to strengthen the evidence base in support of the proposed Order,
3
13 May 2013
3
3.
To agree proposed changes to the area covered by the LDO designation as
outlined at Section 8 of the report.
4.
To provide delegated authority to the Corporate Director, in consultation with the
Cabinet Portfolio holder for Planning, to proceed with preparing final documents
in support of the Order before seeking approval of Full Council for the adoption
of the Local Development Order.
Reasons for the decision:
To progress the designation of land for future development in support of offshore
wind energy developments. This would attract inward investment and provide new
permanent jobs in the local area whilst protecting the tourist offering of Wells and the
neighbouring villages.
9.
NEW HOMES BONUS
Mrs A Fitch-Tillett introduced this item in the absence of the Portfolio Holder for
Finance, Mr W Northam. She asked the Head of Finance to summarise the report
and the recommendations.
The Head of Finance explained that the report presented a policy on use of the New
Homes Bonus (NHB), including both the unallocated balance and the in-year
allocations from 2014/15. She stressed that the ‘set-aside’ amount of £950m for the
spending review period (2011/12 to 2014/15) had already been exceeded by 2013/14
and therefore future funding was not a bonus but re-cycled formula grant and formed
part of the revenue spending power. The over-riding principles of allocating the NHB
funding needed to balance the loss of core funding, continue to support the delivery
of council services and to promote and encourage growth through rewards or
targeted funding.
Mrs A Fitch-Tillett said that the New Homes Bonus was designed to kick-start the
economy and should be supported.
It was proposed by Mrs A Fitch-Tillett, seconded by Mr R Wright and
RECOMMENDED to Full Council
1. That the New Homes Bonus is allocated within the base budget from 2014/15
onwards (as detailed at section 4 within the report);
2. That of the unallocated balance of New Homes Bonus (£1,201,097) 50% is
transferred to the general reserve and 50% remains earmarked within the New
Homes Bonus reserve for the delivery of the Council’s Corporate objectives in
respect of housing.
Reason for the Decision:
To support the Council’s financial planning process and the future delivery of priority
services.
10.
PROPOSAL TO ESTABLISH A COST SHARING GROUP
Mr T Ivory introduced this item. He explained that the report set out a proposal to
establish a cost sharing group (CSG) with Great Yarmouth Borough Council which
would provide services, in particular legal services, to charities and not for profit
groups within the district at cost and exempt from VAT. He said that it was an exciting
and innovative opportunity which built on the success of the Council’s legal team
Cabinet
4
13 May 2013
4
which had generated £86,000 of income last year – well in excess of their target. The
establishment of a cost sharing group would provide a further opportunity to grow
income and to support the voluntary sector by reducing their legal fees.
Members were invited to ask questions:
a.
b.
Mrs P Grove-Jones asked why Great Yarmouth BC was the other council
involved in the scheme. Mr T Ivory explained that Great Yarmouth BC already
had taken advice in relation to a number of other services and had indicated their
willingness to work with NNDC in terms of setting up the formal structure of the
CSG. Great Yarmouth did not have an in-house legal team so NNDC would
provide the legal aspect of the CSG. There was no intention to deliver services to
each other but simply to allow both organisations (together with others) to use
the same framework for the delivery of services. In response to a further
question as to whether there was potential for NNDC to provide other services
via the CSG, Mr Ivory confirmed that there was.
Mr P W Moore sought clarification regarding the meaning of the phrase
‘shrinking back office function’. Mr Ivory said that it referred to the reduction of
internal demand on the services of the legal team, freeing them up to generate
more income from external sources.
It was proposed by Mr T Ivory, seconded by Mr R Oliver and
RESOLVED:
To form a cost sharing group by establishing a company limited by guarantee as set
out in paragraph 5 of the report.
RECOMMENDED TO FULL COUNCIL:
To appoint a Member as the executive director to the Board and the Head of Legal
Services as the non executive director to the Board of the company as the Council’s
representatives.
Reason for the Decision:
The establishment of a Cost Sharing Group would enable the cost of back office
services to be reduced whilst maintaining service levels. It will also provide charities
and not for profit groups with access to services to reduce the costs of their back
office services.
11.
ENFORCEMENT BOARD UPDATE
Mr T Ivory introduced this item. He explained that that the report provided an update
on the actions of the Enforcement Board since it was set up in December 2012 to
provide a cohesive enforcement approach in respect of long-term empty properties
and other difficult enforcement cases. By bringing the different enforcement powers
of the Council together and taking a joined-up approach, significant progress had
been made on a number of sites. He said that he was very encouraged by the results
so far and further action had been taken with 4 properties since the publication of the
report.
Members were invited to ask questions:
1.
Cabinet
Mrs A Claussen-Reynolds said that she was very pleased with the Board’s
progress, particularly in her ward, Lancaster North.
5
13 May 2013
5
2.
3.
4.
5.
Mr G Jones asked whether the Board could take enforcement action against
properties owned by Victory Housing. He said that he was aware of several
properties owned by the Housing Association that had been empty for some
time. The Chief Executive said that Victory Housing was responsible for their
own properties but that there was a Liaison Group which she attended and if any
Members had any concerns they should inform her so that she could raise it at
the next meeting.
Mr E Seward, Chairman of the Overview and Scrutiny Committee, said that the
Committee would be interested in receiving future updates on the work of the
Enforcement Board once they had been presented to Cabinet. The Chief
Executive agreed that this would be the process for reporting from now on.
Mr P W Moore asked why the details of the enforcement cases were not
published as an exempt document. He said that they were considered to be
confidential when they were presented to the Development Committee. The
Corporate Director explained that most of the cases were subject to enforcement
notices and were therefore in the public domain. Mr T Ivory added that being as
public as possible in their approach to enforcement ensured that the process
was effective. He welcomed the input of the Overview and Scrutiny Committee.
Mrs V Uprichard said that she had been very pleased to receive an update from
the Head of Legal on the status of empty properties in her ward recently.
RESOLVED
1. To note the progress made to date by the Enforcement Board.
2. That future progress be reported to Cabinet and Overview and Scrutiny
Committee on a six monthly basis and Performance and Risk Management Board on
a quarterly basis.
3. That progress on enforcement issues affecting specific wards is reported directly
to Local members.
Reasons for the decision:
To fully inform members of progress relating to enforcement cases in their wards..
The Meeting closed at 10.44 am
_______________
Chairman
Cabinet
6
13 May 2013
6
Agenda Item No______8______
2012/13 OUTTURN REPORT
Summary:
This report presents the outturn position for the revenue
account and capital programme for the 2012/13 financial
year. Details are included within the report of the more
significant year-end variances compared to the revised
budget for 2012/13. 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 essentially provides a final budget monitoring
position for the 2012/13 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 earmarks
funding for future projects.
Conclusions:
The outturn position on the revenue account as at 31
March 2013 shows an underspend for the year of
£185,662 which is being recommended to be
transferred to the Invest to Save earmarked reserve.
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 remains within the current recommended level.
.
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 2012/13;
b) The transfers to and from reserves as detailed
within the report (and Appendix C) along with the
corresponding updates to the 2013/14 budget;
c)
Transfer the surplus of £185,662 to the
Restructuring and Invest to Save Reserve;
d) The financing of the 2012/13 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 2013;
f) The updated capital programme for 2013/14 to
2014/15 and the associated financing of the
schemes as outlined within the report and detailed
7
at Appendix E.
Reasons for
Recommendations:
To approve the outturn position on the revenue and
capital accounts for 2012/13 that will be used to
produced the statutory accounts for 2012/13. To provide
funding for ongoing projects and commitments within
earmarked reserves as detailed in the main body of the
report and to earmark funding for one-off costs in
relation to business transformation in respect of ICT and
Customer strategies.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
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 draft outturn position for the 2012/13 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. The
2012/13 revised budgets for revenue and capital were approved by Full
Council in December 2012 and this report now compares the outturn position
with those budgets. The report also includes a current position statement on
the level of reserves along with the outturn and financing position for the
2012/13 capital programme. The capital programme for the period 2013/14 to
2014/15 has also been updated to take account of the outturn position.
1.3
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 2013 and identified a projected underspend on the revenue account of
£18,935, 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 26 June 2013.
1.4
At the time of preparing this report there are a number of final figures for
2012/13 which have not yet been confirmed and therefore estimates have
had to be made. This is not unusual due to the timing of producing the outturn
report and the lead in time for publication of committee papers. Some of these
figures are in relation to the benefit subsidy and Council Tax collection where
8
the system reports from the new Revenues and Benefits System have
needed further work/analysis to interpret. Any material adjustments to the
figures used within this report will either be reported at the meeting or
reflected in the draft Statement of Accounts when they are produced.
1.5
In addition there are still some entries that are required within the statutory
Statement of Accounts, for example impairment costs that are chargeable to
service accounts but are then reversed out therefore having no impact on the
overall general fund position. These will be entered in the published accounts
and will be fully reconciled to the position now reported. The draft accounts
must be produced by 30 June each year and then audited with the final
audited version being approved and published by 30 September. The audited
accounts will be presented to the Audit Committee on 17 September 2013.
2.
Revenue Account – Outturn 2012/13
2.1
The revenue account position for the year shows an underspend of £185,662
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 each year, 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 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 2013 and where no future budget
exists. Generally requests to transfer funds to earmarked reserves are made
where no specific budget exists in the following financial year. Further details
on the movements to and from reserves are included at section 3 of the
report. In addition where grants have been received in the 2012/13 financial
year but the expenditure has not yet been incurred, these amounts have been
carried forward within reserves at the year end.
Service Variances
2.2
The following sections of the report aim to highlight the more significant
variances compared to the revised 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.
2.3
Accounting standards require a number of notional charges to be made to
service accounts. Notional charges include transactions in relation to capital
charges 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 ‘cash’
variances, table 1 provides a summary of the position excluding notional
charges.
9
Table 1 - 2012/13 Revenue Account (Excluding Notional Charges)
Revised
Actual £
Budget £
Assets & Leisure
1,635,375
1,586,094
CLT / Corporate
517,503
460,755
Community, Econ Dev & Coast
1,783,905
1,314,685
Customer Services
337,311
360,111
Development Management
1,016,108
912,472
Environmental Health
3,995,776
3,724,413
Finance
3,403,085
3,457,575
Organisational Development
327,246
336,102
Net Cost of Services
13,016,309
12,152,207
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
Variance
£
(49,281)
(56,748)
(469,220)
22,800
(103,636)
(271,363)
54,490
8,856
(864,102)
1,538,934
(269,900)
460,501
1,538,934
(206,240)
630,253
0
63,660
169,752
(639,176)
(156,193)
482,983
(265,126)
(304,468)
(39,342)
13,841,542
13,654,493
(187,049)
(13,841,542)
(13,840,155)
1,387
0
(185,662)
(185,662)
2.4
Commentary on the more significant variances for direct costs and income is
provided in the following paragraphs. Further comments can be found within
Appendix B to the report.
2.5
Assets and Leisure
a)
Car Parks £67,773 underspend – Overall the car parks service has resulted in
a net favourable variance at the year end. The most significant is the
additional car park fee income of £58,794 and penalty charge notice income
of £21,194. These have been offset partly by increased administration fee in
respect of penalty charge notices.
b)
Parklands £15,420 overspend – The main reason for the year end overspend
is due to additional repairs and maintenance works in relation to a water leak.
c)
Foreshore £36,284 underspend – Of the underspend £28,900 has been
carried forward to 2013/14 for repairs and maintenance expenditure that was
not able to be completed during 2012/13 due to poor weather.
d)
Woodlands Management £17,338 overspend – The overspend within the
service is made up a number of smaller variances including emergency tree
works, staff turnover savings not achieved in the year and vehicle repair
costs.
10
e)
CCTV £15,083 underspend – The underspend in the year is largely due to
replacement cameras not being purchased in the year pending the current
review of the service.
2.6
Corporate
a)
Legal Services £47,033 underspend – Of the outturn position £34,623 relates
to additional legal fee income generated above the budget, this has been
transferred to an earmarked reserve to fund costs related to developing
Eastlaw to generate further income in the future.
2.7
Customer Services
a)
IT Support Services £24,166 underspend – The outturn position is made up of
a number of service variances including £11,815 underspend/credits in
respect of telephone calls, lines and contract credits received, £28,364
employee savings due to a vacant post. These have been offset by some
additional costs in the year in relation to computer software licences. Of the
overall saving, £6,480 is being used as a revenue contribution to capital to
finance the purchase of replacement computers in the year and £10,000 is
being carried forward to fund additional costs in the 2013/14 year for essential
upgrade work.
b)
Media and Communications £36,480 underspend – £16,562 of the outturn
position relates to graphics materials costs and external media work being
less than budgeted. There was also an underspend on paper costs in the
year of £8,536. The balance of the underspend is made up of a number of
smaller underspends including furniture and stationery purchases and training
costs. Part of the overall underspend has been used as a revenue
contribution to capital to fund the purchase of new scanners in the year.
2.8
Community and Economic Development
a)
Planning Policy £35,269 underspend – The most significant variance within
the service is in relation to Community Infrastructure Levy consultant fees
which have yet to be incurred, as such £20,000 has been rolled forward to
2013/14. The balance of the underspend relates mainly to employee turnover
and officer transport costs not incurred in the year.
b)
General Economic Development £31,597 overspend – The outturn variance
is largely due to grant income that is held in a reserve and is matched by a
transfer from reserves in the year.
c)
Coast Protection £59,897 underspend – The underspend represents delays
to planned sea defence works due to adverse weather and has therefore
been carried forward to 2013/14 within an earmarked reserve.
d)
Pathfinder £60,151 underspend – The year-end variance reflects an
underspend on the Integrated Coastal Management fund and has been rolled
forward to 2013/14 within the Pathfinder earmarked reserve.
e)
Community and Localism £130,011 underspend – This service includes the
items being funded from the second homes money that is returned to the
Council from Norfolk County Council, including the Big Society Fund (BSF)
grants, any underspend on the grants has been carried forward within the
11
BSF earmarked reserve. The underspend also includes some external grants
that have been received in the year but have not yet been expended, these
too have been carried forward within the Grants earmarked reserve.
2.9
Development Management
a)
Development Management £110,408 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. £45,000 of the
additional income has been carried forward within an earmarked reserve to
fund temporary staff within 2013/14.
b)
Building Control and Access £47,946 overspend – The outturn position
reflects the reduction in income from building control fees.
2.10
Environmental Health
a)
Licensing £23,319 underspend - The outturn position reflects additional
general licensing income from new applications and variations to current
licences of £10,228 and £13,268 for additional taxi licensing income. Of the
net underspend £13,200 has been transferred to the Environmental Health
earmarked reserve.
b)
Environmental Protection £39,485 underspend – Of the underspend ££26,306
relates to employee and related costs due to vacant posts within the service.
Of the remaining variance there are a number of smaller underspends within
the services demand led budgets and also additional income/contributions for
assisted burials and towards noise equipment.
c)
Environmental Health, Service Management £22,085 underspend – The
variance at the year-end relates to savings in a number of supplies and
services budgets.
d)
Waste Collection and Disposal £87,329 underspend – The overall
underspend for the service is made up of a number of variances within the
service budget headings, including:
 Additional fee income from trade and garden waste customers of
£66,376;
 Higher recycling credits due to increased tonnages of garden waste
and glass being processed resulted in £23,301 being received above
the budget;
 Reduced profit share of £48,403 due to the reduced value of re-sale
materials;
 Recycling initiatives budget not fully spent in the year of £23,488, this
has been carried forward in the Environmental Health earmarked
reserve to fund additional promotional and marketing during 2013/14.
2.11
Finance
a)
Local Taxation £56,160 overspend – The main reason for the variance relates
to court costs not being awarded to the level of the budget. This was due to
court action not being taken in the year as a consequence of the
12
implementation of the new system, although it is anticipated that some of the
costs will be recovered in the 2013/14 financial year.
b)
Benefits £14,430 overspend – Whilst the net position on the service does not
show a significant variance from the revised budget, there are a number of
variances within the service. The outturn position includes net costs of
£102,485 in relation to the final subsidy claim for 2011/12, this has been
funded by a contribution from the benefits earmarked reserve which is
maintained for such purposes, i.e. to mitigate any in-year impact to the
revenue account. The outturn position takes into account the initial subsidy
claim for 2012/13 which will be audited later in the year. Due to the system
conversion and some backlog within the service the bad debt provision has
been reviewed to reflect these issues and a transfer has been made to the
benefits earmarked reserve to mitigate any impact from the final audited
subsidy return.
c)
Discretionary Payments £21,168 underspend – The variance relates to a
lower level of rate relief awarded in the year, the balance has been carried
forward to 2013/14 within an earmarked reserve.
d)
Corporate Finance £33,994 underspend – The year end variance is largely
due to employee costs not incurred due to a vacant post along with
advertising costs not expended in the year. £28,500 of the underspend has
been carried forward to 2013/14 for interim cover and recruitment costs in
2013/14.
2.12
Organisational Development
a)
Human Resources and Payroll £55,036 underspend – Of the year end
underspend £43,369 relates to the corporate training programme expenditure
being lower than expected; of the balance £9,924 is due to lower than
anticipated spend on printing and other professional fees and charges.
£20,000 has been transferred to the Organisational Development earmarked
reserve to cover costs relating to Investors in People accreditation and officer
restructuring and £5,000 has been transferred to the Common Training
reserve for Members' induction training.
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 employee cost savings, £9,606 consultation costs not incurred in the
year, £6,936 expenditure not incurred by the North Norfolk Youth Voice and
£6,304 on grants.
Non Service Expenditure and Income
2.13
The non-service expenditure and income predominantly relates to investment
income. The 2012/13 outturn position achieved from the Council’s treasury
management activity was £63,419 below the amount anticipated in the
revised budget. Investment income for the year was £206,481 at an average
rate of 0.82% from an average balance available for investment of £25.1m.
This compares to the revised budget which anticipated a total of £269,900
would be earned at an average rate of 1.1% from an average balance of
£24.6m.
13
2.14
The original budget for investment income in 2012/13 was £269,900 and was
unchanged for the revised budget. The rate of interest on the types of
investment the Council had been making was falling, and it was decided to
invest £5m in the LAMIT Pooled Property Fund to maintain the overall return
and meet the revised budget. However, it was not possible to make the
investment in the Fund until the 31 March 2013, and consequently there is a
shortfall which in line with the amount reported to members in the monitoring
reports from Period 10.
2.15
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.
Reserves
3.1
The Council holds a general reserve for which the recommended balance
was £1.6 million when the 2013/14 budget was approved in February 2013.
The general reserve is held for the purpose of providing a working balance to
help cushion the impact of uneven cash flows to avoid temporary borrowing
and also as a contingency to help cushion the impact of unexpected events or
emergencies. As part of approving the budget for the 2013/14 financial year
the general reserve recommended balance was increased from £950,000 to
£1.6 million. The reason for the increase was in response to the significant
changes that have been introduced to the funding of Local Authorities from
2013/14 onwards, essentially from a fixed formula funding mechanism to one
whereby funding is related to the local raised business rates and also the
introduction of the Localised System of Council Tax support.
3.2
Since recommending the minimum balance of £1.6 million Cabinet have
received a report (13 May 2013) on the use of the New Homes Bonus (NHB)
from 2013/14. The report (subject to Full Council approval) recommended the
use of the New Homes Bonus from 2013/14 onwards within the base budget,
in approving this it was recommended that £600k of the unallocated NHB
within the NHB earmarked reserve be reallocated to the general reserve to
mitigate the impact of future changes to the NHB within the overall funding
formula.
3.3
In addition to the general reserve a number of earmarked reserves are held to
meet known or predicted liabilities. The earmarked reserves provide 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 budget
exists in future financial years.
3.4
Section 2 of the report highlighted some 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.
3.5
The transfers to and from reserves (general and earmarked) are included
within the reserves statement as detailed at Appendix C. The overall position
14
gives a total of reserves of £7,978,968 at 31 March 2013. The appendix also
shows the planned use of reserves over the medium term to take account of
where funding has been rolled forward from 2012/13 for use in 2013/14.
3.6
The general reserve balance at 31 March 2013 is £1,745,452. After taking
into account the budgeted contributions to and from the reserve in 2013/14,
the forecast balance at 31 March 2014 is £2,030,868, although this does
include £400,000 within the reserve which the current financial forecast
assumes will be used over the following two financial years, excluding this
leaves an unallocated balance of £1,630,868.
4.
Summary – Revenue Account 2012/13
4.1
The outturn position for the year ending 31 March 2013 is a £185,662. 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 2013/14. It is recommended that the surplus for the year be transferred to
the Invest to Save reserve which could then be used fund investment
decisions related to the ICT and Customer Improvement Strategies. Release
of the funds from the reserve would be subject to the sign-off of relevant
business cases by the Transformation Board which is made up of the Leader,
Portfolio Member and Officers.
5.
Capital Programme 2012/13
5.1
This section of the report presents the financing of the capital programme for
2012/13, along with an updated programme for the financial years 2013/14 to
2015/16. Appendix D provides the detail of the outturn on the 2012/13 capital
programme for all service areas, together with the financing for all schemes.
The updated capital programmes for the period 2013/14 to 2015/16 are
attached at Appendix E.
5.2
The outturn position for the 2012/13 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 2013/14. The following paragraphs
provide further explanations and where necessary commentary on individual
schemes in the capital programme, which are now reported in line with the
subheadings used in the Corporate Plan. The details include the outturn
expenditure compared to the 2012/13 budget, and explanations of variances
where applicable.
5.3
In total, the expenditure on the capital programme for the year was
£4,545,815, compared to a revised budget of £11,650,111, giving a variance
of (£7,104,296). There has been a requirement to claw back a total of
£29,618 from the 2013/14 budget where schemes have progressed faster
than originally anticipated. In addition to this there is significant slippage of
(£7,117,695), together with other movements in year totalling a net (£16,219).
5.4
The following three paragraphs provide summary commentary where actions
on schemes have been similar at year end :-
15
a)
Budget Claw Backs – There were 6 schemes in total that have either started
slightly earlier than anticipated, or where the spend level in the year was
higher than anticipated. Where this is the case, and there is budget available
within the 2013/14 capital programme, this has been clawed back in order to
cover the expenditure incurred in year. The updated programme for 2013/14
onwards (Appendix E) reflects these adjustments to the capital programme.
The schemes and amounts are listed in table 2.
Table 2 – Capital Schemes Claw Back Required from 2013/14 Budget
Capital Scheme
Claw Back Amount
£
Car Park Resurfacing and Refurbishment
26,077
Playground Improvements
3,000
Other Schemes
541
Total
29,618
b)
Schemes Completed in Year – Overspent - A total of eight capital schemes
were completed in year with overspends. The schemes and amounts of
overspend are listed in table 3, together with the source of the additional
financing.
Table 3 – Capital Schemes Completed in Year with Overspends
Capital Scheme
Cromer Red Lion Toilet
Refurbishment
Car Park Ticket Machines
Sheringham East Prom PC
Sheringham Little Theatre
SMP Preparation of Studies
Amount
£
4,484
Source of Additional
Financing
Capital Receipts
1,346
6,350
8,198
3,162
Capital Receipts
Capital Receipts
Capital Receipts
Environment Agency
Grant
Capital Receipts
Other Schemes
Total
c)
1,064
24,604
Schemes Completed in Year – Under Budget – Within the 2012/13 financial
year a further four schemes have been completed within budget, with the
remaining balance of budget no longer being required. These schemes are
identified within table 4, together with the budget sums to be relinquished.
Table 4 – Capital Schemes Completed in Year – Under Budget
Capital Scheme
Fakenham Factory Extension
Asbestos Works
Openwide Loan Repayment
North Walsham Public Conveniences
Total
5.5
Amount
£
(23,256)
(1,634)
(495)
(1,619)
(27,004)
In addition to these scheme there are further explanations of other significant
variances on a scheme by scheme basis below:-
16
a)
Fakenham Industrial Estate – This scheme has been in existence for a
number of years, with the balance of budget being taken forward to cover any
additional expenditure. As the scheme is now complete Cabinet are
requested to remove the remaining budget of £6,736 from the capital
programme.
b)
Carbon Reduction Scheme – The current plans for the Carbon Reduction
Scheme relate solely to the improvement of water usage at NNDC public
conveniences. The value of works arising from this scheme are estimated at
£5,000, with a budget of this value being requested for slippage to the new
financial year. The remaining budget of £34,939 is no longer required and is
to be removed from the capital programme for 2013/14.
c)
Equity Loans – A total of £47,000 has been received in the year as part of a
funding initiative from East of England Regional Assembly (EERA), for the
provision of equity share loans to enable properties to be improved. A total of
£19,845 has been paid to owners or tenants to facilitate this process in the
2012/13 financial year, and the balance of funding has been taken to
Receipts in Advance. This scheme has been incorporated into the capital
programme for 2013/14, with a balance of £27,155 being included as the
amended budget for the year.
d)
Big Society Fund - During 2012/13 the value of capital grants made from the
Big Society Fund has exceeded the revised budget, with additional
expenditure of £82,000 being incurred in year. Although this has been offset
by an equivalent reduction in revenue grants, the additional expenditure will
be financed in year from capital receipts. This has resulted in a net increase
in the overall Big Society Fund capital budget by £82,000 which has been
reflected in the capital programme information included at Appendix D.
e)
Street Signs Improvement Programme – The original intentions of this
scheme have been delivered, and as such there is no future requirement for
the £25,825 balance of budget. This is to be removed from the capital
programme for 2013/14 onwards.
f)
Personal Computer Replacement Fund – In 2012/13 there was a requirement
to replace all personal computers within the Benefits section, in order for the
section to function efficiently. The over spend in year of £6,480 is to be
financed in year from revenue contribution, and will result in a net increase to
the overall PC Replacement Fund capital budget by an equivalent sum. This
has also been reflected within the capital programme shown in Appendix D.
g)
Fakenham Connect – This scheme has been completed, and there is no
future requirement for the £6,218 balance of budget. This scheme is
therefore to be removed from the 2013/14 capital programme.
h)
Fakenham Community Centre – This scheme has been completed, and there
is no future requirement for the £8,720 balance of budget. This scheme is
also to be removed from the 2013/14 capital programme.
5.6
In addition to the above there have been a number of schemes where
slippage of budgets in excess of £100,000 have been identified from the
2012/13 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
17
Monitoring Process in the new financial year. These schemes have been
summarised in Table 5.
Table 5 – Slippage on Capital Schemes in Excess of £100,000
Capital Scheme
Disabled Facilities Grants
Empty Homes
Gypsy and Traveller Short Stay Stopping Facilities
Cromer Pier Structural Works (Phase 2)
Cromer Coast Protection Scheme 982
Pathfinder Project
Trade Waste Bins/Vehicles
Procurement for Upgrade of Civica System
Administrative Buildings
Total
Amount
£
(127,536)
(199,050)
(305,646)
(726,655)
(4,636,290)
(312,232)
(121,688)
(163,240)
(137,220)
(6,729,557)
6.
Capital Programme –2013/14 Update
6.1
Appendix E shows the updated capital programme for the period 2013/14 to
2015/16. The programme has been updated to take into account the slippage
as identified within this report and the capital outturn appendix. Alongside
these changes, the capital programme has also been updated for the
following amendments / additions.
6.2
Carbon Reduction Scheme – As identified in paragraph 5.5(c) the budget
requirement for this scheme has been reduced to £5,000 in 2013/14. As such
the balance of budget of £34,939 as at the end of the 2012/13 financial year
has been removed from this schemes total budget requirement.
6.3
Equity Loans – As discussed above in paragraph 5.5(d) a sum of £47,000 has
been received for the provision of equity share loans in order to facilitate
approved home improvements. The total provision of £47,000 has been
included within the capital programme, with £19,845 of this money already
having been spent in the 2012/13 financial year. The balance of the monies
from EERA, of £27,155, has been included as the amended budget for
2013/14.
6.4
Gypsy and Traveller Short Stay Stopping Facilities – There was slippage of
£305,646 requested into the 2013/14 financial year. Of this sum a total of
£260,000 has been re-profiled into subsequent financial years in order to
reflect more accurately the accounting period to which this scheme relates.
6.5
Big Society Fund – During the 2012/13 financial year an additional £82,000 of
expenditure was incurred in relation to capital grants made from the Big
Society Fund throughout the year. The overall budget for the Big Society
Fund has been increased by this value to reflect the additional expenditure
already incurred, thereby leaving a full £200,000 to be available for the
2013/14 financial year for the Big Society Fund/Enabling Fund as reported to
Members in April 2013.
6.6
Personal Computer Replacement Fund - Following the requirement to replace
all Benefits Computers during the 2012/13 financial year, as identified within
18
paragraph 5.5(g), the overall budget for this scheme has been increased by
£6,480. This increase will ensure that the budgets of £20,000 per annum for
the 2013/14, 2014/15 and 2015/16 financial years, are still available.
6.7
Budget Claw Backs – As discussed above during 2012/13 there were 6
projects that either started earlier than anticipated or where the expenditure
incurred in year was higher than anticipated. Where there was budget
available in 2013/14, this was clawed back to 2012/13 to cover the additional
expenditure. The updated programme for 2013/14 onwards (Appendix E)
reflects these adjustments.
6.8
Committee Management Information System (CMIS) – This report
recommends approval of £16,000 within the 2013/14 capital programme for
an electronic committee management system. Following the review and
subsequent merger of the administrative and democratic services teams the
need for an electronic committee management system was identified. The
system will support improved performance and productivity to underpin the
corporate administration and democratic services functions for the Council.
Currently there is no electronic committee management system used in the
service with committee and meeting agendas and papers being produced
manually in pdf format.
6.9
The financing of the amended capital programme is detailed within Appendix
E. The financing at this point in the year assumes capital receipts totalling
£5,366,265 will be used to finance schemes in 2013/14. The progress of
achieving the capital receipts as forecast will continue to be monitored as part
of the budget monitoring process.
7.
2013/14 Budget Implications and Financial Forecast 2014/15 Onwards
7.1
The budget for 2013/14 was approved in February 2013. At the same time
financial projections for the following three years to 2016/17 were also
presented. The budget for 2013/14 includes new savings and additional
income totalling £163,000, these are in addition to the ongoing savings of
£897,000 from the 2012/13 financial year. The budget for 2013/14 and future
financial forecasts also take account of the new system of Local Government
Finance for which the key components are the local council tax support
scheme and the retention of business rates which came into effect from April
2013.
7.2
The forward projections take account of the provisional finance settlement for
2014/15 announced at the time of the 2013/14 settlement and forecast
funding reductions of up to 25% over the next three years. Based on the
assumptions at the time of approving the budget for 2013/14 the forecast
funding gap by 2016/17 was £2.272 million. Since approving the budget for
2013/14, Cabinet have recommended (subject to Full Council decision) that
the New Homes Bonus grant be taken into the base budget from 2014/15
onwards. As reported to Cabinet in May 2013, this will reduced the forecast
deficit (based on current expenditure and income projections) as illustrated in
the table 7.
19
Table 7 – Current Funding Forecast
2014/15
£000
Current Funding Gap1
917
Use of NHB
(821)
Revised Funding Gap
96
2015/16
£000
1,552
(936)
616
2016/17
£000
2,272
(1,051)
1,221
7.3
The forward projections of expenditure and income are in the process of
being updated to take account of the outturn position and also other
spending/income pressures where applicable. These will be reported to
Members in the coming months to enable early preparation for the 2014/15
budget process.
8.
Financial Implications and Risks
8.1
There are a number of financial risks facing the authority in terms of the
changes to Local Authority Funding in particular the Local Council Tax
Support Scheme and Local retention of Business rates which came into effect
in April this year. These where reported in detail within the budget report and
the general reserve was increased in response to these risks.
8.2
This outturn report has identified a number of underspends at a service level
where due to some constraints outside of the Council’s control has meant that
expenditure has not been incurred as planned, for example coast protection
and repairs which were restricted by weather. These underspends have been
carried forward within earmarked reserves to mitigate any overspends in the
2013/14 financial year.
8.3
Benefits subsidy (Housing and Council Tax for 2012/13) does present a
financial risk in terms of the size of the expenditure on the service, for
2012/13 the expenditure was in the region of £37 million with comparative
levels of subsidy recovered. Whilst the initial subsidy claim for 2012/13 has
been submitted, there are risks as a result of the system conversion mid year
which could have an impact on the final audited subsidy return. Much of this
risk is reduced by the benefits earmarked reserve which is maintained to help
mitigate the impact of any claw back from the Department for Work and
Pensions following the final audited subsidy claim.
9.
Sustainability – None as a direct consequence of this report.
10.
Equality and Diversity – None as a direct consequence of this report.
11.
Section 17 Crime and Disorder considerations – None as a direct
consequence of this report.
1
As reported in the 2013/14 Budget Report
20
Appendix A
General Fund Summary 2012/13 Outturn
2011/12
Actual
2012/13
Revised
Budget
£
Service Area
£
2,273,314
548,244
3,310,280
954,512
1,068,388
4,372,598
2,407,427
345,800
Assets & Leisure
Corporate Leadership Team/Corporate
Customer Services
Community & Economic Development
Development Management
Environmental Health
Finance
Organisational Development
2012/13
Outturn
Variance
£
£
2,226,744
517,503
461,239
7,160,151
1,057,128
4,539,247
3,153,457
327,246
2,169,178
(57,566)
448,995
(68,508)
466,459
5,220
3,635,613 (3,524,538)
931,062 (126,066)
4,256,551 (282,696)
3,280,671
127,213
330,646
3,400
15,280,563 Net Cost of Services
19,442,715
15,519,174 (3,923,541)
1,450,222
(2,094,497)
(934,852)
(536,543)
186,632
1,538,934
(1,799,778)
(4,909,569)
(269,900)
947,441
282,941
1,538,934
(1,799,778)
(1,874,648)
(206,481)
386,497
307,459
13,653,209 Net Operating Expenditure
15,232,784
13,871,399 (1,361,385)
Parish Precepts
Capital Charges
Revenue Funded from Capital under Statute (Refcus)
Interest Receivable
Revenue Financing for Capital
Pension Adjustment required under International Accounting
301,684
Standard 19 (IAS 19)
317,825
(13,867)
(44,621)
(270,384)
0
(14,700)
166,574
5,000
(150,000)
(41,722)
116,068
(78,500)
(82,500)
(10,000)
0
76,400
(66,623)
0
0
28,145
0
314,488
196,036
(218,294)
(13,173)
(292,987)
37,837
128,184
(75,770)
907
721,282
Contributions to/(from) Earmarked Reserves:
Capital Projects Reserve
Arts and Community Projects
Asset Management
Benefits
Big Society
Carbon Management
Coast Protection
Common Training
Concessionary Fares
Economic Development & Tourism
Treasury (Property)
Elections
Environmental Health
Environmental Policy
Grants
Grassed Area Deposits
Housing
Land Charges
Legal
Local Strategic Partnership
New Homes Bonus Reserve
Organisational Development
Partnership Projects
Pathfinder
Planning Capital
Planning Revenue
Regeneration Projects
Restructuring/Invest to save
Sheringham Splash
Sports Equipment
Use of General Reserve
0
0
3,034,921
63,419
(560,944)
24,518
(486,940)
0
(15,000)
(99,100)
639,625
0
(208,000)
(4,000)
0
(26,233)
(84,494)
28,500
0
(20,090)
0
0
0
(1,380)
(3,506)
(615,230)
611,678
(394,911)
(196,036)
(198,175)
0
(56,196)
0
9,872
0
(6,500)
(265,126)
243,756
0
38,049
31,550
542,065
0
(148,000)
4,270
0
(22,824)
(50,000)
28,500
33,200
(20,090)
47,963
0
0
0
956
(589,281)
611,678
(424,491)
(161,036)
(138,175)
0
24,119
0
33,872
0
1,481
(304,468)
730,696
0
53,049
130,650
(97,560)
0
60,000
8,270
0
3,409
34,494
0
33,200
0
47,963
0
0
1,380
4,462
25,949
0
(29,580)
35,000
60,000
0
80,315
0
24,000
0
7,981
(39,342)
14,388,814
Amount to be met from Government Grant and Local
Taxpayers
13,841,542
13,654,493
(187,049)
(1,450,222)
(5,736,464)
(1,666,646)
(5,392,348)
(143,134)
Collection Fund – Parishes
Collection Fund – District
Revenue Support Grant
Redistributed Business Rates
Council Tax Freeze Grant
(1,538,934)
(5,789,171)
(121,103)
(6,247,334)
(145,000)
(1,538,934)
(5,789,171)
(121,103)
(6,247,334)
(143,613)
0
0
0
0
1,387
(13,841,542) (13,840,155)
1,387
(14,388,814) Income from Government Grant and Taxpayers
0 (Surplus)/Deficit
0
21
(185,662) (185,662)
Appendix B
Service Area Summaries P12 2012/2013
Assets & Leisure
Cost Centre Name
Car Parking
Markets
Industrial Estates
Surveyors Allotments
Handy Man
Parklands
Administration Buildings Services
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
Revised
Budget
Actuals
£
£
(1,290,125) (1,361,315)
62,928
66,080
(6,909)
788
2,880
2,887
8,884
2,048
(3,591)
13,287
75,995
96,149
0
0
516,634
518,609
178,512
138,252
11,208
7,795
357,186
335,158
729,489
729,691
110,329
108,932
11,111
10,681
109,767
143,469
413,587
404,636
171,177
185,010
29,751
22,120
523,831
547,099
(19,938)
(14,469)
0
0
234,038
212,271
2,226,744
2,169,178
Variance
£
(71,190)
3,152
7,697
7
(6,836)
16,878
20,154
0
1,975
(40,260)
(3,413)
(22,028)
202
(1,397)
(430)
33,702
(8,951)
13,833
(7,631)
23,268
5,469
0
(21,767)
(57,566)
* 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.
22
Appendix B
General Fund Variances by Servcie Area - Period 12 - 2012/13
Assets & Leisure
Full Year
Budget
£
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
Actuals
£
Variance
£
Explanation for Major Variances
695,219
708,353
13,134 £2,821 - Expenditure on repairs and maintenance. £1,822 NNDR costs. £2,203 - Additional ticket purchases. (£1,985) Reduced expenditure on advertising. (£14,464) - Reduction in
contract management costs 2012/13. £12,745 - Additional
11/12 contract management costs not accrued for. £8,181 Increase in penalty charge notice administration fee.
0
(80,807) (£58,794) - Increased car park fee income. (£21,194) Additional penalty charge notice income. (£2,618) - Increased
rental income on car parks.
(3,517) (£5,652) - Reduced Legal Services recharges and
disbursements. £2,997- Increased Creditors Section recharge.
14,205
(2,096,431)
14,205
(2,177,238)
96,882
93,365
(1,290,125)
(1,361,315)
93,543
(77,285)
46,670
93,931
(77,071)
49,220
62,928
66,080
3,152
17,642
18,337
29,052
(104,923)
29,052
(99,181)
51,320
52,580
695 £1,098 - National Non-Domestic Rates (NNDR) costs following
liability for vacant premises falling on NNDC.
0
5,742 £4,670 - Reduction in rental income as a result of vacant
properties in year, or lease negotiations being delayed.
1,260 No major variances
(6,909)
788
(50)
2,930
(50)
2,937
0
7 No major variances
2,880
2,887
7
80,498
82,152
(117,654)
46,040
(117,766)
37,662
8,884
2,048
27,960
38,721
585
(54,966)
22,830
585
(50,307)
24,288
(3,591)
13,287
(71,190)
388 No major variances
214 No major variances
2,550 £2,273 - Increased Computer Section recharges
7,697
1,654 (£1,051) - Superannuation International Accounting Standard
(IAS 19) adjustment. £1,765 - Increase in vehicle repair costs.
(112) No major variances
(8,378) (£6,220) - Reduced Computer Services recharges.
(6,836)
10,761 £11,873 - Additional repairs and maintenance works relating to
major water leak. (£1,078) - Reduced expenditure on
electricity offset by reduced recoverable charges.
0 No variances
4,659 £4,660 - Reduction in recoverable charges.
1,458 No major variances
16,878
23
Appendix B
General Fund Variances by Servcie Area - Period 12 - 2012/13
Assets & Leisure
Full Year
Budget
£
Actuals
£
Administration Buildings Services
Gross Direct Costs
482,875
Capital Charges
Gross Direct Income
Variance
£
484,183
78,476
(95,622)
78,476
(101,710)
(389,734)
(364,800)
75,995
96,149
350,316
352,617
(350,316)
(352,617)
0
0
438,063
47,386
(50,015)
428,413
47,386
(37,325)
81,200
80,135
516,634
518,609
130,376
95,304
Capital Charges
Gross Direct Income
7,213
(6,197)
7,213
(7,409)
Management Unit Costs
47,120
43,144
178,512
138,252
Community Centres
Gross Direct Costs
6,189
3,867
Capital Charges
Gross Direct Income
Management Unit Costs
19
0
5,000
19
(516)
4,425
11,208
7,795
Management Unit Costs
Property Services
Gross Direct Costs
Management Unit Costs
Parks & Open Spaces
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Foreshore
Gross Direct Costs
Explanation for Major Variances
1,308 £20,351 - Additional repairs and maintenance expenditure
including Disaster Recovery Room installation at Fakenham
Connect. (£2,670) - Reduced NNDR costs for Cromer Offices
and Annexe, (£8,315) - Reduced Utilities expenditure. (£1,234)
- Reduction in Consumable Materials. (£10,681) - Reduced
expenditure on equipment. £3,909 - Additional stores issues
for Windmill Restaurant.
0
(6,088) (£3,609) - Recovery of costs following insurance claim for
Cromer Offices. (£3,923) - Additional recoverable recharges
for Fakenham Connect. £1,784 - Reduced Windmill
Restaurant sales.
24,934 £15,413 - Reduced Management Unit recharges following
lower than anticipated direct expenditure and increased direct
income. £8,651 - Additional Computer Services management
unit recharges for Windmill Restaurant and North Walsham
Offices.
20,154
2,301 £1,450 - Additional overtime expenditure for office opening.
(£1,275) - Reduced Continuous Professional Development
training costs.
(2,301) No major variances
0
(9,650) (£8,989) - Grounds maintenance contract variations
0
12,690 £5,270 - Interest on commuted sums is lower as a result of
reduced rates of return on investments. £8,040 - No recharge
of metred water or grounds maintenance works.
(1,065) No Major Variances.
1,975
(35,072) £2,197 - Bad debts provision. (£32,555) - Underspend on
repairs and maintenance (planned Pier painting) due to
adverse weather. £28,900 has been carried forward to
2013/14.
0
(1,212) (£1,086) - Insurance claim receipt following damage to lighting
column on Cromer Prom
(3,976) (£2,780) - Reduced Computer Services management unit
recharges.
(40,260)
(2,322) (£2,322) - Reduced expenditure on repairs and maintenance.
0
(516) No major variances
(575) No major variances
(3,413)
24
Appendix B
General Fund Variances by Servcie Area - Period 12 - 2012/13
Assets & Leisure
Full Year
Budget
£
Sports Centres
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
374,970
364,019
11,188
11,188
(140,122)
(129,813)
111,150
89,764
357,186
335,158
399,445
305,404
24,640
398,832
305,404
25,455
729,489
729,691
109,289
(57,500)
58,540
115,973
(61,019)
53,978
6,684 No Major Variances.
(3,519) No Major Variances.
(4,562) (£4,210) - Reduced recharges from IT for PC and network
support.
110,329
108,932
(1,397)
9,086
285
(1,000)
2,740
9,076
285
(1,288)
2,608
(10) No Major Variances.
0
(288) No Major Variances.
(132) No Major Variances.
11,111
10,681
(430)
Pier Pavilion
Gross Direct Costs
Capital Charges
96,897
0
106,229
24,505
Management Unit Costs
12,870
12,735
109,767
143,469
387,037
374,235
(4,750)
31,300
(2,035)
32,436
413,587
404,636
Capital Charges
Gross Direct Income
Management Unit Costs
Leisure Complexes
Gross Direct Costs
Capital Charges
Management Unit Costs
Other Sports
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Recreation Grounds
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Foreshore (Community)
Gross Direct Costs
Gross Direct Income
Management Unit Costs
(10,951) (£3,332) - Salaries and oncosts lower than expected, mainly
overtime not required. (£3,797) - Reduced expenditure on
purchases for the bar area as a result of reduced demand,
offset by reduced income. The balance consists of minor
variances.
0
10,309 Sale of food and drink in bar areas is lower than anticipated,
this is partly offset by lower expenditure. Hall and pitch hire
are also below anticipated levels
(21,386) (£13,980) - Reduced recharges from IT for PC and network
support. The balance consists of minor variances.
(22,028)
(613) No Major Variances.
0
815 No Major Variances.
202
9,332 £8,021 - Repair and maintenance at the Pavilion Theatre.
24,505 £24,505 - Revenue Funded from Capital under Statute
(Refcus), loan repayment.
(135) No Major Variances.
33,702
(12,802) (£10,580) - Management fee payable to the RNLI for the
Lifeguard Service has been renegotiated. (£3,371) - Rental for
emergency telephones.
2,715 £3,015 - Fewer contributions towards Lifeguard Services
1,136 No Major Variances.
(8,951)
25
Appendix B
General Fund Variances by Servcie Area - Period 12 - 2012/13
Assets & Leisure
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Woodlands Management
Gross Direct Costs
161,473
178,466
16,993 £3,547 - Emergency tree works. £4,393 - Expenditure relating
to the delivery of events. £4,243 - Salaries and oncosts are
higher than expected. (£7,194) - Expenditure on Access to
Nature change and impact project not incurred because grant
not claimed until 2013/14. £6,697 - Grounds maintenance at
Holt Country Park. £5,692 - Vehicle lease and fuel costs.
Capital Charges
Gross Direct Income
1,386
(71,062)
1,386
(70,717)
0
345 (£5,061) - Additional woodland grant from the Forestry
Commission. (£5,216) - Income earned from events. (£3,317)
- Income from the sale of firewood. £10,000 - Access to Nature
change and Impact funding not claimed until 2013/14. £2,969 Grant from Woodland Trust not received because of a delay in
receiving a signed agreement.
79,380
75,875
171,177
185,010
13,833
34,317
5,232
(16,488)
6,690
27,129
5,232
(16,488)
6,247
(7,188) (£7,188) - Maintenance costs lower than expected.
0
0 No Major Variances.
(443) No Major Variances.
29,751
22,120
Public Conveniences
Gross Direct Costs
426,854
439,080
Capital Charges
Gross Direct Income
Management Unit Costs
68,262
(13,752)
42,467
68,262
(14,130)
53,887
12,226 £9,098 - Additional expenditure on repairs and maintenance.
£3,614 - Increased utility costs, mainly water and sewerage.
0
(378) No major variances
11,420 £12,888 - Increased Creditors Section recharges.
523,831
547,099
23,268
100,486
103,710
12,869
(217,093)
12,869
(219,535)
83,800
88,487
3,224 £5,768 - Additional repairs and maintenance expenditure on
the Rocket House, specifically lift works. (£6,970) - Reduced
repairs and maintenance on Chalets, from a delay in the
planned works due to weather restrictions. This has been
carried forward to 2013/14. £3,511 - Additional utilities costs
at the Rocket House offset in part by the recovery of costs
from tenants. £1,482 - Additional overtime expenditure
incurred relating to lettings of chalets and beach huts.
0
(2,442) (£2,125) - Additional income from filming rights and associated
charges, transfered to the Asset Management Reserve to
cover additional valuations required to be undertaken in
2013/14. (£1,026) - Additional income following the recovery of
utilities costs at the Rocket House.
4,687 £3,448 - Increased Computer Section recharges. £1,471 Increased Creditors Section recharges.
(19,938)
(14,469)
144,346
(700)
(143,646)
140,397
0
(140,397)
0
0
Management Unit Costs
Cromer Pier
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Investment Properties
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Leisure
Gross Direct Costs
Gross Direct Income
Management Unit Costs
(3,505) (£4,030) - Reduced recharges from IT for PC and network
support.
(7,631)
5,469
(3,949) No Major Variances.
700 No Major Variances.
3,249 Reduced recharges reflecting lower direct costs.
0
26
Appendix B
General Fund Variances by Servcie Area - Period 12 - 2012/13
Assets & Leisure
Full Year
Budget
£
Actuals
£
Variance
£
CCTV
Gross Direct Costs
198,645
183,828
Capital Charges
Gross Direct Income
Management Unit Costs
9,807
(18,794)
44,380
9,807
(19,060)
37,696
234,038
212,271
(21,767)
2,226,744
2,169,178
(57,566)
Explanation for Major Variances
(14,817) (£13,766) - No replacement CCTV cameras purchased in the
year.
0
(266) No Major Variances.
(6,684) (£6,520) - Reduced recharges from IT for PC and network
support.
27
Appendix B
Service Area Summaries P12 2012/2013
Community, Economic Development & Coast
Cost Centre Name
Planning Policy
Health *
Arts & Entertainments
Museums
General Economic Development
Town Development *
Tourism
Coast Protection
Pathfinder
Improvement Grants
Housing Strategy
Regeneration Management *
Housing (Health & Wellbeing)
Housing Strategy
Property Information
Environmental Strategy
Community And Localism
Coastal Management *
Revised
Budget
£
(344,575)
0
147,254
41,555
402,556
0
120,208
1,221,117
95,124
1,998,357
2,779,831
0
(15,289)
122,262
121,403
126,113
344,235
0
Actuals
£
(383,373)
131
148,265
41,081
425,273
(2,000)
87,709
1,126,947
34,972
517,041
1,194,577
(5)
(1)
0
110,988
118,445
215,563
0
Variance
£
(38,798)
131
1,011
(474)
22,717
(2,000)
(32,499)
(94,170)
(60,152)
(1,481,316)
(1,585,254)
(5)
15,288
(122,262)
(10,415)
(7,668)
(128,672)
0
7,160,151
3,635,613
(3,524,538)
* 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.
28
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Community, Economic Development & Coast
Full Year
Budget
£
Planning Policy
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
255,326
220,115
(611,678)
11,777
(611,736)
8,248
(35,211) (£3,598) Pension Adjustments (£4,204) Employee
turnover savings. (£3,275) Officer transport costs.
(£23,303) Remaining fees for Community
Infrastructure Levy (CIL) consultants not likely to be
paid until 2013/14 there is no budget allocated in
2013/14 . £20,000 has therefore been carried forward
to 2013/14.
(58)
(3,529) No Major Variances.
(344,575)
(383,373)
(38,798)
0
0
217
(86)
217 No Major Variances.
(86) No Major Variances.
0
131
131
145,405
362
(24,783)
26,270
144,949
362
(24,248)
27,202
(456) No Major Variances.
0
535 No Major Variances.
932 No Major Variances.
147,254
148,265
1,011
40,965
590
41,015
66
50 No Major Variances.
(524) No Major Variances.
41,555
41,081
(474)
General Economic Development
Gross Direct Costs
368,425
370,075
Gross Direct Income
Management Unit Costs
Health
Gross Direct Costs
Gross Direct Income
Arts & Entertainments
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Museums
Gross Direct Costs
Management Unit Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Town Development
Gross Direct Costs
12,463
(139,982)
12,463
(110,035)
161,650
152,770
1,650 Underspend on Learning for Everyone off set by
reduced funding. £15,500 One off employee
expenditure. (£15,000) Part of £25k year one NNDC
Commitment approved by Cabinet and Full Council to
support the £60k pa two year business start up
programme. £10k initial draw-down transacted Feb
2013 with successive balances to be drawn
retrospectively as part of the SLA. Business start up
programme, roll forward request.
0
29,947 £21,598 Grant income held in a reserve transferred to
meet Learning for Everyone spend. The difference
reflects lower expenditure to be matched by funding.
(8,880) Lower recharges from Regeneration Management
402,556
425,273
22,717
0
(2,000)
(2,000) No Major Variances
0
(2,000)
(2,000)
29
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Community, Economic Development & Coast
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Tourism
Gross Direct Costs
62,338
33,438
Gross Direct Income
Management Unit Costs
0
57,870
(11)
54,282
(28,900) (£10,000) Part of £35,000 year one commitments
approved by Cabinet and Full Council to support the
establishment of a North Norfolk Destination
Management Organisation (DMO) This has been
carried forward in an earmarked reserve.
(11)
(3,588) No Major Variances.
120,208
87,709
(32,499)
Coast Protection
Gross Direct Costs
548,657
488,735
Capital Charges
Gross Direct Income
Management Unit Costs
466,135
(25)
206,350
466,135
0
172,077
1,221,117
1,126,947
95,124
34,972
0
0
95,124
34,972
0
1,640,387
(60)
141,542
0
357,970
(400)
375,959
1,998,357
517,041
Housing Strategy
Gross Direct Costs
Capital Charges
15,119
3,049,182
15,431
1,406,600
Gross Direct Income
(400,000)
(416,073)
115,530
188,619
2,779,831
1,194,577
178,103
(178,103)
181,349
(181,354)
0
(5)
Pathfinder
Gross Direct Costs
Capital Charges
Improvement Grants
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Management Unit Costs
Regeneration Management
Gross Direct Costs
Management Unit Costs
(59,922) (£60,000) Delays to sea defence works at Walcott due
to adverse weather conditions, this has been rolled
forward into 2013/14.
0
25
(34,273) (£33,162) Reduced recharge from Coastal
Management.
(94,170)
(60,152) (£60,000) Underspend on the Integrated Coastal
Management Fund rolled forward into 2013/14.
0
(60,152)
(60) No Major Variances.
(1,498,845) Reduced Refcus reflects lower actual spend on the
capital programme compared to the budget.
(400)
17,989 Increased charges reflect the restructure of the
service.
(1,481,316)
312 No Major Variances.
(1,642,582) Reduced Reffcus reflects lower spend on the capital
programme.
(16,073) VAT Shelter Receipts from Victory Housing
Association, transferred to the capital projects reserve.
73,089 Increased charges reflect the restructure of the
service.
(1,585,254)
3,246 Staff Turnover savings not made.
(3,251) No Major Variances
(5)
30
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Community, Economic Development & Coast
Full Year
Budget
£
Housing (Health & Wellbeing)
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
172,113
160,796
0
(187,402)
(73)
(160,724)
(15,289)
(1)
122,262
130,733
0
(130,733)
122,262
0
216,133
(186,000)
91,270
213,371
(195,150)
92,767
121,403
110,988
(10,415)
Environmental Strategy
Gross Direct Costs
105,146
111,677
Capital Charges
Gross Direct Income
7,717
(11,000)
7,717
(23,411)
24,250
22,462
6,531 Costs associated with the Green Build event funded
from additional event income
0
(12,411) (£5,501) Grant income for the Cheaper Energy
Together Fund and Norfolk Climate Change Task
Force. (£5,033) Sponsorship and exhibitor
contributions for the Green Build event.
(1,788) No Major Variances.
126,113
118,445
729,667
589,656
(140,011) £5,576 - Salaries and oncosts are higher as a result of
no staff turnover and overtime payments. £8,291 Pay and grading implementation costs. Expenditure
matched by additional external funding:- £5,000 "Warm and Well" Project expenditure, £45,000 - Youth
Advisory Board project expenditure. (£189,436) Other 2nd Homes money not committed, transferred to
earmarked reserve. (£13,305) - Expenditure not
incurred on consultation activities.
200,000
(670,232)
282,000
(742,232)
84,800
86,139
82,000 This reflects additional Reffcus spend.
(72,000) (£45,000) - Funding from Norfolk County Council
(NCC) for Youth Advisory Board projects. (£10,000) Town Team Partners Grant from the DCLG grant for
North Walsham Town Development. (£10,000) "Warm and Well" Project grant income from NCC. The
unspent grants have been carried forward to 2013/14
within the grants earmarked reserve.
1,339 No Major Variances.
344,235
215,563
Gross Direct Income
Management Unit Costs
Housing Strategy
Gross Direct Costs
Management Unit Costs
Property Information
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Management Unit Costs
Community And Localism
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
(11,317) (£3,625) Pension cost adjustments. (£4,162) Staff
savings due to restructuring. The balance is made up
of minor variances below £2,000.
(73)
26,678 This reflects the restructure of the service.
15,288
8,471 £4,923 Pension cost adjustments. £2,273 Employee
costs following the restructure of the service.
(130,733) This reflects the restructure of the service.
(122,262)
(2,762) (£2,869) Norfolk County Council search fees.
(9,150) Additional income from NNDC land charge fees.
1,497 No Major Variances.
(7,668)
(128,672)
31
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Community, Economic Development & Coast
Full Year
Budget
£
Coastal Management
Gross Direct Costs
Management Unit Costs
Actuals
£
Variance
£
Explanation for Major Variances
94,177
79,034
(15,143) (£6,743) Delay in appointing Assistant Coastal
Engineer. (£3,780) Reduced travelling and
subsistence. (£2,620) Consultancy not required.
15,143 Reduced recharges reflecting reduced service cost.
(94,177)
(79,034)
0
0
0
7,160,151
3,635,613
(3,524,538)
32
Appendix B
Service Area Summaries P12 2012/2013
Corporate
Cost Centre Name
Members Services
Corporate Leadership Team
Legal Services *
Revised
Budget
£
507,503
10,000
0
Actuals
£
449,066
(71)
0
Variance
£
(58,437)
(10,071)
0
517,503
448,995
(68,508)
* 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.
33
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Corporate
Revised
Budget
£
Members Services
Gross Direct Costs
389,113
Gross Direct Income
Management Unit Costs
(400)
118,790
Corporate Leadership Team
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Gross Direct Income
Management Unit Costs
385,650
(3,463) (£3,679) - Chairmans Civic Expenditure underspend.
This has been carried forward to reflect the timing of
Civic events actually provided in April and May 2013.
(189)
211 No Major Variances.
63,605 (55,185) (£26,038) - Reduced recharges from IT for PC and
network support. (£5,868) - Reduced recharge from
Creditors (£17,670) - Reduced recharge from Legal
Services.
507,503
449,066 (58,437)
622,283
620,568
0
(25)
(612,283) (620,614)
10,000
Legal Services
Gross Direct Costs
Actuals Variance Explanation for Major Variances
£
£
363,693
(1,715) (£7,017) International Accounting Standard (IAS19)
pension adjustments. £9,093 Pay and Grading
Implementation costs funded from the Organisational
Development reserve.
(25)
(8,331) (£3,170) - Reduced recharges from IT and PC and
network support. The balance consists of minor
variances.
(71) (10,071)
371,513
7,820 £5,288 - Salaries and oncosts are higher as a result of
the extension of a fixed term contract for Compulsory
Purchase Order work, which has been funded from an
earmarked reserve. £19,100 - Client disbursements
relating to a land sale offset by additional income.
(£6,899) - Other client disbursements. (£9,376) Legal book purchases.
(51,050) (105,903) (54,853) (£20,170) - Sale of land (not NNDC). (£34,623) Other legal fee income
(312,643) (265,610)
47,033 Reduced recharges reflecting lower net direct costs.
0
517,503
0
0
448,995 (68,508)
34
Appendix B
Service Area Summaries P12 2012/2013
Customer Services
Cost Centre Name
IT - Support Services
TIC'S
Home Improvement Agency
Homelessness
Customer Services Housing
Transport
Publicity
Graphical Info System *
Media & Communications *
Customer Services - Corporate *
Revised
Budget Actuals Variance
£
£
£
1
1
0
266,617 255,319 (11,298)
6,300
6,852
552
194,686 110,720 (83,966)
(106,973)
(13) 106,960
41,360
37,692
(3,668)
59,248
55,889
(3,359)
0
0
0
0
0
0
0
(1)
(1)
461,239
35
466,459
5,220
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Customer Services
Full Year
Budget
£
IT- Support Services
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
904,247
885,003
62,898
(410)
(966,734)
62,898
(5,332)
(942,568)
1
1
TIC'S
Gross Direct Costs
233,694
236,525
Capital Charges
Gross Direct Income
8,105
(40,732)
8,105
(49,596)
65,550
60,285
266,617
255,319
6,300
6,852
552 No Major Variances
6,300
6,852
552
57,802
64,283
20,130
(167,456)
20,130
(180,012)
284,210
206,319
194,686
110,720
Capital Charges
Gross Direct Income
Management Unit Costs
Management Unit Costs
Home Improvement Agency
Gross Direct Costs
Homelessness
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
(19,244) (£28,364) - Salaries and oncosts lower. £9,310 Pay and grading implementation costs, funded
from an earmarked reserve. (£5,435) - Year end
pension costs adjustments. (£8,040) - Telephone
calls and computer lines and rentals. £13,463 Computer software licences, backdated payment
for Microsoft licences. The savings have been
used to make a revenue contribution to capital of
£6,480 to fund the purchase of replacement PCs
due to windows 7 upgrade.
0
(4,922) (£3,775) - Telephone contract credits.
24,166 Reduced recharges reflecting lower net direct
costs.
0
2,831 (£4,591) - Salaries and oncosts are lower as a
result of vacancies. £2,719 - Postage costs are
higher as a result of increased requests for leaflets
and other information from prospective visitors.
0
(8,864) (£8,864) - Sale of souvenirs and commission
earned.
(5,265) No Major Variance
(11,298)
6,481 £6,160 Increased Bed and Breakfast charges
offset by recoverable income.
0
(12,556) (£8,496) Recoverable charges on homelessness
cases. (£3,019) Miscellaneous income relating to
wayleaves on housing land.
(77,891) Recharges reflecting the restructure of the
Housing service
(83,966)
36
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Customer Services
Full Year
Budget
£
Customer Services Housing
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Transport
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Publicity
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Graphical Info System
Gross Direct Costs
Capital Charges
Management Unit Costs
Media & Communications
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Actuals
£
Variance
£
252,193
242,102
0
(359,166)
(4,100)
(238,015)
(106,973)
(13)
31,500
(33,000)
42,860
27,321
(29,832)
40,203
41,360
37,692
33,138
(21,060)
47,170
32,057
(18,608)
42,440
59,248
55,889
26,412
3,780
(30,192)
23,358
3,780
(27,138)
0
0
390,598
353,902
(7,500)
(383,098)
(7,284)
(346,618)
0
0
Explanation for Major Variances
(10,091) (£9,210) Pension cost Adjustments. £3,806 Pay
and Grading Implementation costs. (£4,119)
Reduced Postage costs, Budget allocations
following the restructuring of the service may need
adjusting.
(4,100) Recoverable training costs from ex-employee.
121,151
106,960
(4,179) (£4,179) - Fewer rail cards issued from stock.
3,168 £3,168 - Fewer rail cards sold
(2,657) No Major Variance
(3,668)
(1,081) No Major Variance
2,452 No Major Variance
(4,730) No Major Variance
(3,359)
(3,054) No Major Variance
0
3,054 Reduced recharges reflecting lower net direct
costs.
0
(36,696) (£3,193) - Year end pension costs adjustments.
(£8,536) - Paper costs lower than anticipated.
(£3,640) - Savings in the purchase of furniture and
stationery for the reprographics service. (£16,562) Graphics materials costs and media work lower
than anticipated. (£3,260) - Training costs not
incurred. These savings have been used to make
a revenue contribution to capital to fund the
purchase of new scanners
216 No Major Variance
36,480 Reduced recharges reflecting lower net direct
costs.
0
37
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Customer Services
Full Year
Budget
£
Customer Services - Corporate
Gross Direct Costs
556,913
Capital Charges
Gross Direct Income
Management Unit Costs
Actuals
£
Variance
£
549,546
Explanation for Major Variances
(7,367) £8,842 - Salaries, oncosts and overtime. £10,160 Pay and grading implementation costs, funded
from an earmarked reserve. (£4,464) - Year end
pension costs adjustment. (£6,624) - Training and
travel costs. (£13,175) - Stationery and other
purchases.
0
(3,399) (£3,399) - Recharges for the use of envelopes.
10,765 Reduced recharges reflecting lower net direct
costs.
29,015
(10,000)
(575,928)
29,015
(13,399)
(565,163)
0
(1)
(1)
461,239
466,459
5,220
38
Appendix B
Service Area Summaries P12 2012/2013
Development Management
Cost Centre Name
Development Management
Conservation & Design
Landscape
Building Control & Access
Planning Management And
Community Support *
Revised
Budget
£
657,918
139,570
172,796
86,841
0
Actuals
£
514,009
134,933
153,985
128,109
26
Variance
£
(143,909)
(4,637)
(18,811)
41,268
26
1,057,125
931,062
(126,063)
* 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.
39
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Development Management
Full Year
Actuals
Variance
Explanation for Major Variances
Budget
£
£
£
Development Management
Gross Direct Costs
716,294
727,347
11,053 £9,079 Legal fees in respect of planning appeals. £5,514
Pay and grading costs funded from the Organisational
Development Reserve. £2,574 Additional postage costs.
(£8,025) IAS 19 Pension adjustments.
Capital Charges
41,017
41,017
0
Gross Direct Income
(581,092)
(702,553)
(121,461) Increased Planning fee income following a number of large
applications. £45,000 has been carried forward in an
earmarked reserve to fund temporary staffing appointments
in 2013/14.
Management Unit Costs
481,699
448,198
(33,501) The most significant changes include a £9,195 increase in
recharges from ICT and a reduction of £22,297 from legal
services following a revision of allocation to reflect work
carried out in the year.
657,918
514,009
78,690
(50)
60,930
77,341
0
57,592
139,570
134,933
Landscape
Gross Direct Costs
89,296
79,504
Management Unit Costs
83,500
74,481
172,796
153,985
(18,811)
294,443
279,127
(368,362)
(305,100)
160,760
154,082
(15,316) (£6,705) Officer Mileage costs. (£3,555) IAS19 Pension
adjustments. The balance is made up of a number of minor
variances below £2,000.
63,262 Building Control Income down due to adverse market
conditions.
(6,678) (£6,080) Reduced allocation from Purchase ledger.
86,841
128,109
Conservation & Design
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Building Control & Access
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Planning Management And Community Support
Gross Direct Costs
353,470
349,937
Management Unit Costs
(143,909)
(1,349) No Major Variances.
50
(3,338) No Major Variances.
(4,637)
(9,792) £4,507 Pay and Grading costs funded from the
Organisational Development Reserve. (£5,853) International
Accounting Standard (IAS19) Pension adjustments.
(£6,000) Match Funding contribution identified to be funded
from reserves not yet spent. This has been rolled forward to
2013/14
(9,019) (£6,250) Reduced recharge from Legal services following
revised allocations.
41,268
(3,533) £5,799 New Appointment advertising. This has been offset
by a number of minor savings below £2,000.
3,559 No Major Variances
(353,470)
(349,911)
0
26
26
1,057,125
931,062
(126,063)
40
Appendix B
Service Area Summaries P12 2012/2013
Environmental Health
Cost Centre Name
Commercial Services
Rural Sewerage Schemes
Travellers
Licensing
Street Signage
Pest Control
Pollution Control *
Environmental Protection
Dog Control
Environmental Health - Service Management *
Waste Collection And Disposal
Cleansing
Community Safety
Civil Contingencies
Revised
Budget
£
501,230
346,895
99,440
75,554
29,289
28,342
0
681,160
72,680
0
1,827,068
717,474
30,404
129,714
Actuals
£
474,754
346,895
97,800
37,245
16,532
33,227
(78)
601,633
72,776
8
1,719,066
712,447
27,097
117,149
Variance
£
(26,476)
0
(1,640)
(38,309)
(12,757)
4,885
(78)
(79,527)
96
8
(108,002)
(5,027)
(3,307)
(12,565)
4,539,250
4,256,551
(282,699)
* 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 - 2012/13
Environmental Health
Full Year
Budget
£
Actuals
£
Variance
£
Explanation for Major Variances
Commercial Services
Gross Direct Costs
401,163
389,929
Gross Direct Income
(28,934)
(22,090)
Management Unit Costs
129,001
106,915
501,230
474,754
346,505
390
346,505
390
0 No variances
0 No variances
346,895
346,895
0
36,897
97,800
(36,897)
(3,614)
97,800
(948)
1,640
4,562
99,440
97,800
109,347
(170,183)
111,149
(195,304)
136,390
121,400
75,554
37,245
21,188
8,939
5,691
2,410
5,691
1,902
29,289
16,532
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
Gross Direct Income
Management Unit Costs
Street Signage
Gross Direct Costs
Capital Charges
Management Unit Costs
(11,234) Reduction in staff costs - salaries and travelling
allowances
6,844 Reduction in the provision of food hygiene courses
due to a team restructure
(22,086) (£7,381) Reduced recharges from IT for PC and
network support charged to EH Service Management.
(£8,790) - reduced recharges from Legal Services,
Creditors and Telephone Services reflecting a more
accurate allocation of time. The balance consists of
minor variances.
(26,476)
(40,511) Reffcus adjustment re Lease expenditure.
0
35,949 £32,897 Reffcus adjustment re Capital grant
expenditure. £3,220 Contributions collected lower
than budget due to a lower level of occupancy than
expected.
2,922 Recharge from Environmental Health reflecting a
more accurate allocation of time.
(1,640)
1,802 No major variances
(25,121) (£10,228) Additional general licensing income from
new applications and variations. (£13,268) Additional
taxi licensing income above the budgeted level, due
to a new fee structure This has been rolled forward
into an earmarked reserve.
(14,990) (£7,743) - Reduced recharges from Legal Services
reflecting a more accurate allocation of time. The
balance consists of minor variances.
(38,309)
(12,249) (£5,542) Savings associated with a current vacant
post. (£6,707) Contractor and material costs
0
(508) No major variances
(12,757)
42
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Environmental Health
Full Year
Budget
£
Pest Control
Gross Direct Costs
Gross Direct Income
Management Unit Costs
Actuals
£
Variance
£
Explanation for Major Variances
25,247
(3,945)
7,040
29,151
(3,564)
7,640
3,904 £5,344 Staff costs
381 No major variances
600 No major variances
28,342
33,227
4,885
0
(78)
(78) No major variances
0
(78)
(78)
Environmental Protection
Gross Direct Costs
497,660
465,455
Capital Charges
Gross Direct Income
3,600
(14,230)
3,600
(21,510)
Management Unit Costs
194,130
154,088
681,160
601,633
Dog Control
Gross Direct Costs
53,430
59,098
Gross Direct Income
Management Unit Costs
(500)
19,750
(1,141)
14,819
72,680
72,776
Pollution Control
Gross Direct Costs
Environmental Health - Service Management
Gross Direct Costs
142,230
Capital Charges
Gross Direct Income
Management Unit Costs
(32,205) (£23,983) Salary and oncosts relating to vacant
posts. (£2,323) Transport related costs. (£5,909)
Savings in a number of demand led supplies and
services budgets which include contaminated land,
assisted burials and rechargeable works.
0
(7,280) (£3,788) Recharges from assisted burials. (£4,188)
External contribution towards noise equipment
(40,042) (£10,583) Reduced recharges from IT for PC and
network support charged to EH Service Management.
(£22,181) - reduced recharges from Legal Services,
Creditors and Telephone Services reflecting a more
accurate allocation of time. The balance consists of
minor variances.
(79,527)
5,668 £8,021 Staff costs. (£3,282) Underspend on
equipment/repairs and maintenance
(641) No major variances
(4,931) (£3,923) Reduced recharges from IT for PC and
network support charged to EH Service Management.
The balance consists of minor variances.
96
119,626
8,317
(650)
(149,897)
8,317
(131)
(127,804)
0
8
(22,604) Savings in a number of supplies and services
budgets including equipment, protective clothing,
computer hardware and software.
0
519 No major variances
22,093 Reduced recharges reflecting lower net direct costs
8
43
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Environmental Health
Full Year
Budget
£
Waste Collection And Disposal
Gross Direct Costs
4,064,684
Capital Charges
428,066
Gross Direct Income
(2,895,703)
Management Unit Costs
230,021
4,028,939
428,066
(2,947,287)
209,348
1,827,068
1,719,066
Actuals
£
Variance
£
Explanation for Major Variances
(35,745) See Note A below
0
(51,584) See Note B below
(20,673) (£11,521) Reduced recharges from IT for PC and
network support charged to EH Service Management.
(£3,710) - reduced recharges from Creditors and
Accountancy reflecting a more accurate allocation of
time. The balance consists of minor variances.
(108,002)
Note A: (£3,305) Repairs to a number of bin compounds not spent this year. £7,428 Additional stock purchases for garden
bins. (£13,399) Saving on Kier contract - monthly variations. (£5,045) Saving on Kier contract - due to temporary suspension of
garden waste service. £9,573 Additional costs for tipping away (transfer of waste outside of our area). (£23,488) Recycling
initiatives not spent this year has been transferred to an earmarked reserve. (£4,397) Savings on vehicle repairs and travelling
allowances.
Note B: (£66,376) Additional fee income from trade and garden waste customers and clinical waste disposal. (£23,301) Higher
recycling credits received due to increased tonnages of garden waste and glass being processed. £48,403 Lower profit share
as the prices for the re-sale of the materials have decreased. (£9,573) Additional income from tipping away.
Cleansing
Gross Direct Costs
Gross Direct Income
Management Unit Costs
735,615
(40,641)
22,500
735,309
(41,285)
18,423
(306) No major variances
(644) No major variances
(4,077) No major variances
717,474
712,447
(5,027)
26,984
25,549
3,420
1,548
30,404
27,097
(3,307)
Civil Contingencies
Gross Direct Costs
85,983
77,389
Gross Direct Income
Management Unit Costs
0
43,731
(2,581)
42,341
(8,594) (£3,382) Underspend on staffing and travelling. The
balance relates to savings in a number of small
supplies and services budgets.
(2,581) Recharge from Beach Masters course
(1,390) No Major variances
129,714
117,149
(12,565)
4,539,250
4,256,551
(282,699)
Community Safety
Gross Direct Costs
Management Unit Costs
(1,435) £4,790 Pay & Grading costs. (£6,634) Underspend
for mainstream analyst.
(1,872) No major variances
44
Appendix B
Service Area Summaries P12 2012/2013
Finance
Cost Centre Name
Local Taxation
Benefits
Treasury Management
Discrectionary Payments
Non Distributed Costs
Benefits & Revenues Management *
Corporate Finance *
Internal Audit *
Central Costs *
Corporate & Democratic Core
Revised
Budget
£
569,071
1,228,953
55,820
68,000
1,600
0
0
0
0
1,230,013
Actuals
£
594,349
1,233,344
60,198
46,832
95,000
19
0
0
0
1,250,929
Variance
£
25,278
4,391
4,378
(21,168)
93,400
19
0
0
0
20,916
3,153,457
3,280,671
127,214
* 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 - 2012/13
Finance
Full Year
Budget
£
Local Taxation
Gross Direct Costs
Actuals
£
Variance
£
Explanation for Major Variances
622,404
538,919
15,000
0
(510,363)
(370,718)
442,030
426,148
569,071
594,349
35,642,080
37,208,448
24,319
(35,106,146)
24,319
(36,658,084)
668,700
658,661
1,228,953
1,233,344
55,820
60,198
4,378 Increased recharges from Corporate Finance.
55,820
60,198
4,378
68,000
46,832
(21,168) Less than anticipated discretionary payments.
68,000
46,832
(21,168)
Non Distributed Costs
Gross Direct Costs
0
95,000
Management Unit Costs
1,600
0
1,600
95,000
Capital Charges
Gross Direct Income
Management Unit Costs
Benefits
Gross Direct Costs
Capital Charges
Gross Direct Income
Management Unit Costs
Treasury Management
Management Unit Costs
Discretionary Payments
Gross Direct Costs
(83,485) (£35,000) software costs transferred to Capital, this is matched
by the transfer of grant. (£5,590) IAS 19 Pension Adjustment.
(£35,000) Balance of Council Tax Support grant has been
transferred to the grantss earmarked reserve for spend in
2013/14. (£7,336) Postage costs.
(15,000) Interest on Business Rate refunds, No payments made in
year.
139,645 £35,000 Transferred to capital to match expenditure.£85,072
Court costs awarded less than expected.
(15,882) (£5,930) reduced recharge from ICT. The balance is made up
of a number of smaller variances.
25,278
1,566,368 £96,485 Increased provision for bad and doubtful debts.
£1,336,688 Rent Allowance benefit payments above budgeted
level, this is offset by subsidy from the Department for Works
and Pensions (DWP). £62,831 Council Tax Benefit payments
above budgeted level offset by DWP subsidy. £77,278
Partnership expenditure. £19,935 ICT costs funded from DWP
grant. (£35,000) Staff savings - this has been carried forward
to fund additional spend in 2013/14.
0
(1,551,938) (£19,935) DWP specific grant for software costs offset by
expenditure. (£1,534,166) Subsidy on additional benefit
spend.
(10,039) (£18,613) Legal services recharge for Fraud work. £30,325
increased charge from ICT reflects current shared services
project. The balance is made up of a number of smaller
reductions.
4,391
95,000 This budget reflects notional charges in relation to IAS 19
pension costs. The variance consists of £95,000 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.
(1,600) No Major Variances
93,400
46
Appendix B
General Fund Variances by Service Area - Period 12 - 2012/13
Finance
Full Year
Budget
£
Benefits & Revenues Management
Gross Direct Costs
86,402
Management Unit Costs
Corporate Finance
Gross Direct Costs
Capital Charges
Management Unit Costs
Internal Audit
Gross Direct Costs
Management Unit Costs
Central Costs
Gross Direct Costs
Management Unit Costs
Corporate & Democratic Core
Gross Direct Costs
Management Unit Costs
Actuals
£
Variance
£
93,395
Explanation for Major Variances
6,993 Pay and Grading costs to be funded from the Organisational
Development reserve.
(6,974) No Major Variances
(86,402)
(93,376)
0
19
580,936
546,942
8,994
(589,930)
8,994
(555,936)
0
0
105,967
(105,967)
104,433
(104,433)
0
0
45,619
62,430
(45,619)
(62,430)
0
0
306,973
923,040
304,753
946,176
1,230,013
1,250,929
20,916
3,153,457
3,280,671
127,214
19
(33,994) (£29,309) Turnover savings. £8,890 Pay and grading costs to
be funded from the Organisational Development reserve.
(£5,871) IAS19 Pension adjustments. (£4,851) New
Appointment advertising
0
33,994 (£11,434) Reduced recharge in from ICT. Decrease in
recharges out based on savings in direct costs.
0
(1,534) No Major Variances
1,534 No Major Variances
0
16,811 £18,035 - Pay and grading implementation costs, funded from
an earmarked reserve.
(16,811) Increased recharges reflecting higher direct costs.
0
(2,220) (£4,492) - External audit costs lower than anticipated.
23,136 £27,004 - Increased recharge from Environmental Services
reflecting a more accurate allocation of time. £32,144 Increased recharge from Accountancy reflecting a more
accurate allocation of time. (£16,806) - Reduced recharge
from Treasury Management. (£5,199) - Lower recharge from
Legal Services. The balance consists of minor variances.
47
Appendix C
Reserves Statement - 2012/13 Outturn
Reserve
Purpose and Use of Reserve
General Fund General Reserve
A working balance and contingency, current recommended
balance is £1.6 million. This also includes the rellocation of a
number of previously earmarked reserves to be used over the
next three years,and from 2014/15 part of the previous
balance within the New Homes Bonus reserve. *
Balance at
1/4/2012
Outturn
2012/13
Balance
at
31/3/2013
£
£
£
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
£
£
£
£
2,049,920
(304,468) 1,745,452
285,416 2,030,868
400,548
2,431,416
(200,000)
2,231,416
0
2,231,416
243,756 2,063,225
(586,180) 1,477,045
255,600
1,732,645
0
1,732,645
0
1,732,645
Earmarked Reserves:
Capital Projects
To provide funding for capital developments and purchase of
major assets. This includes the VAT Shelter Receipt.
1,819,469
Asset Management
To support improvements to our existing assets as identified
through the Asset Management Plan.
26,669
38,049
64,718
(53,049)
11,669
0
11,669
0
11,669
0
11,669
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.
640,242
31,550
671,792
(19,213)
652,579
0
652,579
0
652,579
0
652,579
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.
0
542,065
542,065
123,104
665,169
0
665,169
0
665,169
0
665,169
Carbon
Management
To fund revenue invest to save initiatives and projects within
the Carbon Management Plan.
21,180
0
21,180
(21,180)
0
0
0
0
0
0
0
Coast Protection
To support the ongoing coast protection maintenance
programme ands carryforward funding between financial
years.
208,000
(148,000)
60,000
(60,000)
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.
32,000
4,270
36,270
(3,820)
32,450
0
32,450
(5,000)
27,450
Economic
Development and
Tourism
Earmarked from previous underspends within Economic
Development and Tourism Budgets along with funding
earmarked for Learning for Everyone.
55,072
(22,824)
32,248
(25,000)
7,248
0
7,248
Election Reserve
Established to meet costs associated with district council
elections, to smooth the impact between financial years.
1,500
28,500
30,000
30,000
60,000
30,000
90,000
Environmental
Health
Earmarking of previous underspends and additional income to
meet Environmental Health initiatives.
0
33,200
33,200
(20,000)
13,200
0
13,200
48
(60,000)
27,450
7,248
0
7,248
30,000
30,000
60,000
13,200
13,200
Appendix C
Reserves Statement - 2012/13 Outturn
Balance at
1/4/2012
Outturn
2012/13
Balance
at
31/3/2013
£
£
£
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
Reserve
Purpose and Use of Reserve
Environmental
Policy
Earmarking of a previous underspend to meet future costs of
environmental policy initiatives.
20,090
(20,090)
0
0
0
Unspent Grants
Revenue Grants received and due to timiing issues not used
in the year.
0
47,963
47,963
(47,963)
0
Housing
Previously earmarked for stock condition survey and housing
needs assessment.
242,000
0
242,000
(142,000)
100,000
Treasury (Property) Property Investment (Treasury), to smooth the impact on the
revenue account of interest fluctuations.
Reserve
116,068
(50,000)
66,068
0
66,068
66,068
50,356
0
0
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
£
0
0
0
100,000
£
£
0
£
0
0
0
0
0
100,000
0
100,000
66,068
0
66,068
0
50,356
0
50,356
Land Charges
To mitigate the impact of potential income reductions.
50,356
0
50,356
0
50,356
Legal
One off funding for Compulsory Purchase Order (CPO) work
and East Law Surplus.
46,599
956
47,555
(33,750)
13,805
0
13,805
0
13,805
0
13,805
Local Strategic
Partnership
Earmarked underspends on the LSP for outstanding
commitments and liabilities.
671,958
(589,281)
82,677
(25,949)
56,728
0
56,728
0
56,728
0
56,728
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.*
0
611,678
611,678
628,496 1,240,174 (639,626)
600,548
0
600,548
0
600,548
Organisational
Development
To provide funding for organisation development to create
capacity within the organisation and address anomalies within
the pay structure.
494,488
(424,491)
69,997
(69,997)
0
0
0
0
0
0
0
Partnership Budgets
This reflects the balance of funding on the Revenues and
Benefits Partnership project. This will be utilised in 2013/14.
196,036
(161,036)
35,000
(35,000)
0
0
0
0
0
0
Pathfinder
To help Coastal Communities adapt to coastal changes.
404,000
(138,175)
265,825
(128,358)
137,467
(36,813)
100,654
(28,426)
72,228
(18,126)
54,102
110,835
24,119
134,954
(116,619)
18,335
(8,000)
10,335
0
10,335
0
10,335
37,837
0
37,837
0
37,837
0
37,837
37,837
0
37,837
Previously unspent Housing and Planning Delivery Grant
Planning - Revenue (HPDG) for use on related revenue projects, timing to be
confirmed.
Regeneration
Projects
Carry forward of underspends relating to Regeneration
Projects.
49
Appendix C
Reserves Statement - 2012/13 Outturn
Balance at
1/4/2012
Outturn
2012/13
Balance
at
31/3/2013
£
£
£
Updated
Budgeted
2013/14
Movement
£
Updated
Budgeted
Balance
Balance at
2014/15
at
1/4/2015
Movement
1/4/2014
£
£
£
Budgeted
Budgeted
Balance at
Balance at
2015/16
Movement
1/4/2016
1/4/2017
Movement
2016/17
Reserve
Purpose and Use of Reserve
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 resrve will depend on when business
cases are approved.
468,216
33,872
502,088
(41,500)
460,588
0
460,588
0
460,588
0
460,588
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
23,339
1,481
24,820
0
24,820
0
24,820
0
24,820
0
24,820
The pier
To be used to support the costs of works to Cromer pier.
15,000
0
15,000
(15,000)
0
0
0
0
0
0
Whistle blowing
Commissioning investigation activity as required.
10,000
0
10,000
(10,000)
0
0
0
0
0
0
0
(387,562) 7,591,406
1,709
7,593,115
(293,426)
7,299,689
11,874
7,311,563
Total Reserves
8,195,874
(216,906) 7,978,968
* The Reserve statements allows for the recommended treatment of
the New Homes Bonus (NHB) from 2014/15 as reported to Cabinet
in May 2013.
50
£
£
£
£
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Updated Budget
2012/13
Actual
Expenditure
2012/13
Variance to
2012/13 Updated
Budget
Comments
Jobs and the Local Economy
Fakenham Industrial
Estate
6,736
0
(6,736)
North Norfolk
Enterprise Innovation
Centre
39,705
0
(39,705)
Fakenham Factory
Extension
This scheme has been completed. Cabinet
are asked to approve the removal of this
scheme from the current capital
programme.
The balance of budget is requested for
slippage to 2013/14
This scheme has been completed, and all
retentions have been accrued for in the
(23,256)
current financial year. The scheme has
come in £23,256 under budget.
147,932
124,676
Public Conveniences
Improvements - Phase
1and 2, and Mundesley
Prom PC Upgrade
15,419
15,429
10
This scheme has been completed, and the
minor overspend is to be financed from
capital receipts.
Cromer Red Lion Toilet
Refurbishment
14,336
18,820
4,484
This scheme has been completed, and the
£4,484 overspend is to be financed from
capital receipts.
Car Park Ticket
Machines
3,054
4,400
Asbestos Works
11,328
9,694
Rocket House
Carbon Reduction
Scheme
Sheringham East Prom
Public Conveniences
Sheringham Little
Theatre
Car Park Resurfacing
and Refurbishment
This scheme is complete, with the final
machine being installed at Weybourne car
1,346 park following vandalism of the original.
The minor overspend is to be financed from
capital receipts.
(1,634)
This scheme is complete with an
underspend of £1,634.
25,459
Works have progressed, although the
major element of the scheme relating to the
lift is currently on hold. A report is due to
(50,156) be taken to the Asset Management Board,
and in the short term the balance of budget
is requested for slippage into the new
financial year.
49,401
9,462
Current plans for the Carbon Reduction
Scheme relate to improving water usage at
NNDC Public Conveniences. The value of
(39,939) these works is in the region of £5,000, and
budget of this value is to be slipped into the
new financial year. The balance of the
unspent budget is to be relinquished.
106,011
112,361
6,350 £6,350 against this scheme is to be funded
75,615
This scheme is complete with all retentions
being accrued for. The overspend of
from capital receipts.
This scheme has been completed, at an
45,000
53,198
8,198 overspend of £8,198. The overspend is to
be financed from capital receipts.
181,681
207,758
51
26,077
The scheme is complete. The costs are
£26,077 over budget, however, there is a
further £180k budget available for similar
works within the 2013/14 financial year,
and the overspend will be clawed back
from this budget.
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Updated Budget
2012/13
Openwide Loan
Repayment
Actual
Expenditure
2012/13
Variance to
2012/13 Updated
Budget
Comments
Approval was given for this scheme as part
of the revised budget process. The
repayment has been completed.
25,000
24,505
(495)
721,218
605,762
(115,456)
60,809
8,718
(52,091)
The remaining budget balance for 2012/13
is requested for slippage into the new
financial year.
850,000
722,464
(127,536)
The remaining budget balance for 2012/13
is requested for slippage into the new
financial year.
Housing Associations
1,406,600
1,406,600
0
Strategic Housing &
Choice Based Lettings
System
15,000
0
(15,000)
The remaining budget balance for 2012/13
is requested for slippage into future
financial years.
200,000
950
(199,050)
The remaining budget balance for 2012/13
is requested for slippage into future
financial years.
Housing and Infrastructure
Housing Renovation
Grants
Private Sector Renewal
Grants
Disabled Facilities
Grants
Empty Homes
0
19,845
2,532,409
2,158,576
Equity Loans
All scheme payments anticipated in the
2012/13 financial year have been made.
A total of £47,000 has been received as
part of a funding initiative from East of
England Regional Assembly (EERA) for the
provision of equity share loans to enable
19,845 homes to be improved. A total of £19,845
has been paid to owners or tenants in the
2012/13 financial year, and the balance of
funding has been taken to receipts in
advance.
(373,833)
Coast, Countryside and Built Heritage
Gypsy and Traveller
Short Stay Stopping
Facilities
Sheringham Beach
Handrails
Cromer Pier Structural
Works - Phase 2
Sheringham
Promenade Lighting
Cromer Pier and West
Prom Refurbishment
Project
The balance of the capital budget is
requested to be slipped to 2013/14 and
(305,646) subsequent financial years, to reflect the
full accounting period to which this scheme
relates.
346,407
40,761
3,126
131
(2,995)
The balance of the budget is requested to
be slipped to the new financial year.
1,337,236
610,581
(726,655)
The works on the Pier are progressing and
as such the unspent balance of the
2012/13 financial year budget is requested
for slippage to 2013/14.
67,391
56,889
(10,502)
32
34
Further works have been identified for
prom lighting, and as such the unspent
budget balance is requested for slippage
into 2013/14.
A Clawback of 2013/14 budget is required
2 to cover additional expenditure incurred in
2012/13.
52
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Refurbishment Works
to the Seaside Shelters
Cromer Coast
Protection Scheme 982
and Strategic
Environmental
Assessment (SEA)
Shoreline Management
Plan Preparation of
Common Version for
Approval and Other
Additional Studies
Pathfinder Project
Updated Budget
2012/13
Actual
Expenditure
2012/13
Variance to
2012/13 Updated
Budget
Comments
33,449
A number of shelters have been
refurbished, but the programme of works
(21,551) will be continuing in the new year. Slippage
of the unspent budget is requested into
2013/14.
297
The budget identified related to the
production of the strategy and the resultant
works to be undertaken. The strategy has
been completed and approval has been
received for the scheme, with works
(4,767,986) commencing against a separate project
name of Cromer CP Scheme 982 (see
below). The remaining budget across both
projects is requested for slippage, and to
be identified against the new project.
2,770
5,932
The Environment Agency had approved
additional budget for this scheme in August
3,162 2012, and the applicable grant will be used
to fund the overspend in year compared to
the original grant budget.
458,176
145,944
(312,232) as such the balance of budget is requested
55,000
4,768,283
Capital works against the Pathfinder
schemes are to continue into 2013/14, and
for slippage into the new financial year.
Cromer to Winterton
Scheme
Coastal Erosion
Assistance
Chalet Repairs
The scheme is to continue into the new
110,000
56,623
(53,377) financial year, with the balance of budget
requested for slippage into 2013/14.
60,000
0
0
(60,000)
The balance of budget is requested for
slippage into 2013/14.
262
This project was approved as part of the
2013/14 original budget report. Some
preparatory time has been spent in
262 advance of the actual works commencing
in the new year, and a clawback of this
expenditure is required into 2012/13
This project was approved as part of the
2013/14 original budget report. Some
preparatory time has been spent in
262 advance of the actual works commencing
in the new year, and a clawback of this
expenditure is required into 2012/13
Doctors Steps
0
262
Cromer Coast
Protection Scheme 982
0
131,696
131,696
7,208,421
1,082,860
(6,125,561)
Please see comments above for Cromer
Coast Protection Scheme 982 and SEA.
Localism
Playground
Improvements Various
27,800
30,888
53
The Playground works at Sadlers Wood
have been completed, and the £3,000
slipped as part of the original budget report
3,088 for 2013/14 will be clawed back to cover
the additional expenditure incurred. The
balance of overspend of £88 will be funded
from capital receipts.
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Updated Budget
2012/13
Actual
Expenditure
2012/13
Variance to
2012/13 Updated
Budget
Comments
A clawback is required from the 2013/14
North Lodge Park
717
732
15 budget, to cover the additional expenditure
incurred in 2012/13.
Sheringham Skate Park
Big Society Fund
20,000
200,000
20,000
282,000
North Walsham
Regeneration Schemes
52,955
0
North Walsham Public
Conveniences
61,082
59,463
0
966
Stalham Multi Use
Games Area
0
82,000
The scheme is complete.
The Big Society Fund has seen a
significant increase in capital grant
payments, with additional expenditure of
£82,000 being incurred in year, although
offset by an equivalent reduction in
revenue expenditure. The additional
expenditure will be financed in year from
capital receipts.
The scheme for traffic calming capital
works has been approved, but is yet to be
(52,955) implemented. The balance of budget is to
be requested for slippage into 2013/14.
(1,619)
This scheme is complete and has come in
£1,619 under budget.
Although completed in 2011/12, there was
966 one final invoice to be paid. This is to be
funded from capital receipts.
362,554
394,050
31,496
25,825
0
(25,825)
Delivering the Vision
Street Signs
Improvement
Programme
Trade Waste Bins/
Waste Vehicle
193,010
The original intentions of the project have
been delivered, and as such there is no
future requirement for the balance of
budget.
71,322
Negotiations with Kier for the purchase of
capital items are ongoing. As such the
(121,688)
balance of budget is requested for slippage
into 2013/14.
Business Process
Review (Electronic
Document
Management) Project
15,000
1,446
The design works to which the 2012/13
budget relates are ongoing, therefore the
(13,554)
balance of budget is requested for slippage
into 2013/14.
Personal Computer
Replacement Fund
39,807
46,287
6,480 benefits section machines. The overspend
Waste Management &
Environmental Health
IT System
The additional expenditure incurred in
2012/13 related to the replacement of
has been financed in year from an RCCO.
To facilitate efficient management, an
electronic document management system
(5,100) is to be purchased in the new financial
year. The budget is therefore requested for
slippage into 2013/14.
5,100
0
Asset Management
Computer System
22,827
10,420
(12,407)
Probass 3 (Planning
back office system)
8,025
7,525
(500)
268,477
105,237
(163,240)
Procurement for
Upgrade of Civica
System
54
A further module is to be purchased for the
Asset Management Computer System,
requiring the remaining budget to be
slipped to the new year.
The balance of budget is requested for
slippage to 2013/14.
The scheme is progressing and will
continue into the new financial year. As
such the balance of budget is requested for
slippage to 2013/14.
Appendix D
GENERAL FUND CAPITAL PROGRAMME
Scheme
Civica Council Tax
Support System
e-Financials Financial
Management System
Software Upgrade
Administrative
Buildings
Fakenham Connect
Fakenham Community
Centre
Replacement of
Planning Printer and
Scanner
Updated Budget
2012/13
35,000
Actual
Expenditure
2012/13
Variance to
2012/13 Updated
Budget
35,000
0
TOTAL FINANCING
This scheme was completed in 2012/13,
and was fully funded by DWP grant.
The scheme is progressing and will
continue into the new financial year. As
(11,950)
such the balance of budget is requested for
slippage to 2013/14.
33,000
21,050
143,500
6,280
(137,220)
The scheme is progressing and will
continue into the new financial year. As
such the balance of budget is requested for
slippage to 2013/14.
6,218
0
(6,218)
This scheme has been completed. Cabinet
are asked to approve the removal of this
scheme from the current capital
programme.
8,720
0
This scheme has been completed. Cabinet
are asked to approve the removal of this
(8,720)
scheme from the current capital
programme.
21,000
0
(21,000)
825,509
304,567
(520,942)
11,650,111
4,545,815
(7,104,296)
4,941,053
194,548
(4,746,505)
458,176
443,000
145,944
589,639
(312,232)
146,639
509,863
50,996
217,912
0
(291,951)
(50,996)
60,800
15,000
66,800
10,420
6,000
(4,580)
14,500
20,367
5,867
316,541
4,840,182
355,710
2,944,474
39,169
(1,895,708)
11,650,111
4,545,815
(7,104,296)
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
Comments
55
The purchase of the printer and scanner is
due to take place in 2013/14, and slippage
of this budget is requested to the new
financial year.
Appendix E
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
Jobs and the Local Economy
North Norfolk Enterprise Innovation Centre
Financed by;
NNDC (Capital Receipts)
50,000
Rocket House
Financed by;
NNDC (Capital Receipts)
77,084
Wells Sackhouse Refurbishment
Financed by;
Other Contributions
NNDC (Capital Receipts)
71,752
Maltings Wells
Financed by;
NNDC (Capital Receipts)
Carbon Reduction Scheme
Financed by;
NNDC (Cap Receipts - Carbon Reduction
Fund)
Car Park Resurfacing and Refurbishment
Financed by;
NNCD (Capital Receipts)
Public Conveniences (Plumbing and
Drainage)
Financed by;
NNCD (Capital Receipts)
10,295
0
39,705
0
39,705
0
0
26,928
0
50,156
0
50,156
0
0
45,029
26,723
0
0
26,723
0
0
0
100,000
0
0
100,000
0
0
68,379
0
39,939
(34,939)
5,000
0
0
207,758
180,000
(26,077)
0
153,923
0
0
0
15,000
0
0
15,000
0
0
358,389
321,723
103,723
(34,939)
390,507
0
0
50,000
77,084
27,752
44,000
100,000
100,000
73,379
73,379
361,681
361,681
15,000
15,000
748,896
56
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
Housing and Infrastructure
Housing Renovation Grants
Private Sector Renewal Grants
Annual programme
500,000
52,091
0
552,091
500,000
355,000
Annual programme
850,000
127,536
0
977,536
850,000
772,578
Annual programme
2,093,578
0
0
2,093,578
0
0
100,650
5,000
15,000
0
20,000
0
0
950
0
199,050
0
199,050
0
0
19,845
0
(19,845)
47,000
27,155
0
0
121,445
3,448,578
373,833
47,000
3,869,411
1,350,000
1,127,578
Financed by;
NNDC (Capital Receipts)
Disabled Facilities Grants
Financed by;
Specified Capital Grant
NNDC (Capital Receipts)
Housing Associations
Financed by;
NNDC (Capital Receipts)
NNDC (Capital Projects Reserve)
Affordable Housing Contributions
Strategic Housing & Choice Based Lettings
System
Financed by;
NNDC (Capital receipts)
Capital Projects Reserve
Empty Homes
Financed by;
NNDC (Capital receipts)
Equity Loans
Financed by;
Other Grants (EERA)
120,650
113,950
6,700
200,000
200,000
47,000
47,000
367,650
57
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
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)
Refurbishment Works to the Seaside
Shelters
Financed by:
NNDC (Capital Receipts)
Cromer Coast Protection Scheme 982 and
SEA
Financed by:
Environment Agency Grant
1,409,000
1,103,354
0
305,646
(260,000)
45,646
40,000
220,000
37,028
0
2,995
0
2,995
0
0
691,976
0
726,655
0
726,655
0
0
67,498
0
10,502
0
10,502
0
0
110
199,892
(2)
0
199,890
0
0
33,449
100,000
21,551
0
121,551
0
0
320,710
5,000,000
4,636,290
0
9,636,290
443,000
0
1,409,000
40,023
5,023
35,000
1,418,631
1,418,631
78,000
45,000
33,000
200,000
200,000
155,000
155,000
10,400,000
10,400,000
58
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
£
1,967,015
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
1,654,783
0
312,232
0
312,232
0
0
56,623
0
53,377
0
53,377
0
0
0
0
60,000
0
60,000
0
0
262
36,000
(262)
0
35,738
0
0
262
22,000
(262)
0
21,738
0
0
15,895,669
3,966,054
5,357,892
6,128,723
(260,000)
11,226,615
483,000
220,000
North Lodge Park
Financed by;
NNCD (Capital Receipts)
197,000
732
196,283
(15)
0
196,268
0
0
Big Society Fund
Financed by:
NNDC (Capital Receipts)
Other Contributions (2nd Homes)
482,000
282,000
200,000
(82,000)
82,000
200,000
0
0
Pathfinder Project
Financed by:
DEFRA Grant
Cromer to Winterton Scheme
Financed by:
Environment Agency Grant
1,967,015
110,000
110,000
Coastal Erosion Assistance
Financed by:
Government Grant
60,000
Chalet Repairs
Financed by;
NNCD (Capital Receipts)
36,000
Doctors Steps
Financed by;
NNCD (Capital Receipts)
22,000
60,000
36,000
22,000
Localism
197,000
482,000
0
59
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
17,045
0
52,955
0
52,955
0
0
0
54,370
0
0
54,370
0
0
0
100,000
0
0
100,000
0
0
903,370
299,777
550,653
(29,060)
82,000
603,593
0
0
Trade Waste Bins/ Waste Vehicle
Financed by:
NNDC (Capital Receipts)
LPSA Grant
272,700
151,012
0
121,688
0
121,688
0
0
BPR EDM Project
Financed by;
Planning Delivery Grant/Housing and Planning
Delivery Grant
Capital Projects Reserve
NNDC (Capital Receipts)
422,788
282,248
126,986
13,554
0
140,540
0
0
Personal Computer Replacement Fund
Financed by;
NNDC (Capital Receipts)
NNDC (RCCO)
204,282
144,282
20,000
(6,480)
6,480
20,000
20,000
20,000
North Walsham Regeneration Schemes
Financed by:
NNDC (Capital Receipts)
70,000
Victory Swim and Fitness Centre
Financed by;
NNCD (Capital Receipts)
54,370
Play Areas
Financed by;
NNCD (Capital Receipts)
70,000
54,370
100,000
100,000
Delivering the Vision
194,784
77,916
16,682
5,967
400,139
160,033
44,249
60
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
Waste Management & Environmental Health
IT System
Financed by;
NNDC (Capital Receipts)
WPEG Grant
DEFRA Grant
232,427
75,000
Probass 3
Financed by:
Planning Delivery Grant/Housing and Planning
Delivery Grant
NNDC (Capital Receipts)
34,010
Procurement for Upgrade of Civica System
Financed by:
NNDC (Capital Receipts)
Other Grants (RIEP)
DWP Performance Standards Fund
306,156
Administrative Buildings
Financed by;
NNDC (Capital Receipts)
Replacement of Planning Printer & Scanner
Financed by:
NNDC (Capital Receipts)
11,394
5,100
0
16,494
0
0
62,593
0
12,407
0
12,407
0
0
31,600
1,910
500
0
2,410
0
0
142,916
0
163,240
0
163,240
0
0
21,050
0
11,950
0
11,950
0
0
6,754
131,026
137,220
0
268,246
0
0
0
0
21,000
0
21,000
0
0
131,514
83,486
17,427
Asset Management Computer System
Financed by;
NNDC (Capital Projects Reserve)
NNDC (Asset Management Reserve)
e-Financials Financial Management System
Software Upgrade
Financed by:
NNDC (Capital Receipts)
215,933
60,000
15,000
5,600
28,410
210,947
53,800
41,409
33,000
33,000
275,000
275,000
21,000
21,000
61
GENERAL FUND CAPITAL PROGRAMME 2013/14 to 2015/16
Scheme
Scheme Total
Current Estimate
Pre 31/3/13
Actual
Expenditure
Updated
Budget
2013/14
Slippage to
2013/14 at
Outturn
Amendments
to 2013/14 at
Outturn
Amended
Budget
2013/14
Updated
Budget
2014/15
Updated
Budget
2015/16
£
Committee Management Information System
Financed by:
NNDC (Capital Receipts)
0
0
0
16,000
16,000
0
0
1,892,363
1,058,388
291,316
480,179
22,480
793,975
20,000
20,000
19,807,948
5,804,053
9,970,162
7,057,398
(143,459)
16,884,101
1,853,000
1,367,578
16,000
16,000
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
5,000,000
0
443,000
0
0
0
0
0
1,015,900
3,511,262
9,749,667
357,877
443,000
33,305
50,996
8,000
4,580
0
976,731
5,259,944
443,000
40,000
443,000
0
0
0
0
0
0
927,000
0
220,000
443,000
0
0
0
0
0
0
704,578
TOTAL FINANCING
9,970,162
16,884,100
1,853,000
1,367,578
62
Agenda Item No_____9________
Treasury Management Annual Report 2012/13
Summary:
Options Considered:
Conclusions:
Recommendation:
Reasons for
Recommendation:
This report sets out the Treasury Management activities actually
undertaken during 2012/13 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 2012/13
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@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.
63
2.
Economic Background
2.1
The UK economy shrank in the first, second and fourth quarters of 2012. Growth of
0.9% in the third quarter however, aided by the Olympic Games, enabled growth to
register 0.2% over the year.
2.2
The growth in wages at 1.2% was below inflation and constrained household spending
power. The rate of inflation as measured by the Consumer Prices Index (CPI) dipped
below 3%, falling to 2.4% in June before rising to 2.8% in February 2013. Higher food
and energy prices and higher transport costs contributed to inflation remaining above the
Bank of England’s 2% target for CPI.
2.3
The lack of growth and fall in inflation persuaded the Bank of England to maintain the
Bank Rate at 0.5% The government’s Funding for Lending initiative commenced in
August and gave banks access to cheaper funding on the basis they would pass this
advantage on to the wider economy to aid growth. The result was an improvement in the
flow of credit to mortgagees, but lending to small and medium-sized enterprises (SME’s)
was still below expectations.
2.4
A direct consequence of the Funding for Lending Scheme was a sharp drop in the rates
at which local authorities could lend to banks. At the beginning of the year the
investment rates for 3, 6 and 12 month deposits were 1%, 1.33% and 1.84%. By the
end of the year they had fallen to 0.44%, 0.51% and 0.75% respectively.
3.
Long Term Borrowing
3.1
The Council has no long-term debt. The strategy has been to remain debt-free and not
to borrow long-term monies to finance its capital spending, relying instead on usable
capital receipts, government grants and revenue contributions. Any decision to borrow
in the future will need to have regard to the treasury implications, including taking
account of the additional credit risk of holding both investments and borrowing.
4.
Investment Activity
4.1
The Department for Communities and Local Government’s (DCLG) Guidance on Local
Government Investments requires the Council to focus on security and liquidity, rather
than yield when undertaking its treasury activities
4.2
The table below gives Members an appreciation of the investment activity undertaken in
2012/13, 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 2012/13, and the average life of the
investments to maturity, weighted to investment value.
Balance
01/4/2012
Short-term
Bonds issued by
Multilateral
Development
Banks
Pooled Funds
All investments
Invested
Matured
Balance
31/3/2013
Return
Weighted
Average
Life
(days)
70
£000s
19,110
£000s
93,300
£000s
(99,295)
£000s
13,115
%
0.82
1,000
0
0
1,000
0.80
352
0
20,110
5,000
98,300
0
(99,295)
5,000
19,115
0.82
90
64
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 2012/13. New investments were placed
with the Debt Management Office, AAA-rated Stable Net Asset Value Money Market
Funds, appropriate UK banks and building societies which are systemically important to
the banking system. In addition, on the 31 March 2013, an investment of £5m was
made in the CCLA Local Authorities Property Fund (LAMIT) in accordance with the
decision by Council in September 2012 to invest a proportion of the investment portfolio
in pooled property funds.
4.4
Credit Risk
Counterparty credit quality was assessed and monitored with reference to the following;
1. Credit ratings (The minimum long-term counterparty credit rating determined for
the 2012/13 treasury strategy was A- (or equivalent) across the rating agencies
Fitch, S&P and Moody’s).
2. The price of credit default swaps (this is similar to an insurance policy which pays
out the value of an investment should a counterparty fail to repay an investment),
where quoted.
3. Gross Domestic Product (GDP) of the country in which the institution operates.
4. The country’s net debt as a percentage of GDP
5. Any potential support mechanisms and share price (where quoted).
4.5
In June Moody’s downgraded a number of banks including the UK banks on the
Council’s lending list - Barclays, HSBC, Royal Bank of Scotland/Natwest, Lloyds TSB
Bank/Bank of Scotland and Santander. However, none of the ratings fell below the
Council’s minimum credit rating threshold of A- (or equivalent).
.4.6
All investment counterparties are given a credit score based on this information in 4.4.
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.
4.7
Appendix F 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.
4.8
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 value weighted scores have
increased but remained well below the minimum level of 7 which represents the lowest
credit rating the Council will accept.
4.9
An ideal scenario would show a lower time weighted average credit score than the value
weighted credit score. This would indicate that where a longer term investment decision
is taken, a higher credit quality counterparty had been selected.
65
Date
Value
Weighted
Average
Credit Risk
Score
Value
Weighted
Average
Credit
Rating
Time
Weighted
Average
Credit Risk
Score
Time
Weighted
Average
Credit
Rating
Average
Life (days)
31/03/2012
4.59
A+
3.39
AA
97
30/06/2012
4.61
A+
3.06
AA
59
30/09/2012
4.49
AA-
2.98
AA
49
31/12/2012
4.96
A+
3.33
AA
57
31/03/2013
5.3
A+
3.07
AA
61
4.10
The graphs at Appendix G shows the Council’s position at 31 March 2013 and compares
how the Council has performed in relation to other clients of the Council’s treasury
advisors, Arlingclose Limited.
4.11
The first graph shows that at the 31 March 2012 the rate of interest on the Council’s
investments was 0.7% with a value weighted credit score of 5.3. The average credit
score for all Arlingclose clients was 5.09 with an average interest rate of 0.85%,
indicating that the investment return on the portfolio is just below the average for the
client group, but is achieved with an above average credit score.
4.12
The second graph shows that the Council is achieving a better than average credit score
of 3.07 on a time weighted basis compared to the client group average of 4.75.
4.13
Liquidity
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.
4.14
Yield
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 had a significant impact on
investment income. In response to uncertain and deteriorating credit conditions in
Europe, the Council considered an appropriate risk management response was to
shorten maturities for new investments.
4.15
The Council’s investment income for the year was £206,481 which compares to the
revised budget of £269,900. The anticipated rate of return on investments in the revised
budget was 1.1% and a rate of 0.82% was actually achieved. The average balance
available for investment in the year was £25.1m compared to a revised budget of
£24.6m
5.
Compliance
5.1
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.
5.2
The Council has a limit of £500,000 which can be left overnight with its bankers, The Cooperative Bank plc. On the 27 March 2013 an unexpected payment for £663,503.54
was received after the cut-off time for treasury dealing. Consequently the funds
remained with the bank overnight leaving a total balance of £816,940.98, and the limit
was exceeded. The organisation concerned has been contacted and they have
undertaken to advise the Council in advance when such large payments are made in
future.
66
5.3
The Council can confirm that it has complied with its Prudential Indicators for 2012/13,
which were approved on 22 February 2012 as part of the Council’s Treasury
Management Strategy Statement. Details can be found in Appendix H.
5.4
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 2012/13.
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.
6.
Conclusion
6.1
The treasury activities for 2012/13 have been carried out in accordance with the CIPFA
Code and the Council’s Treasury Management Strategy.
7.
Financial Implications and Risks
7.1
The financial impact of implementing the Council’s treasury strategy for 2012/13 has
been set out in this report.
8.
Sustainability – None as a direct consequence of this report.
9.
Equality and Diversity – None as a direct consequence of this report.
10.
Section 17 Crime and Disorder considerations – None as a direct consequence of
this report.
67
Appendix F
Credit Score Analysis
Long-Term
Credit Rating
Score
AAA
1
AA+
2
AA
3
AA-
4
A+
5
A
6
A-
7
BBB+
8
BBB
9
BBB-
10
Not rated
11
BB
12
CCC
13
C
14
D
15
68
Appendix G
69
Appendix H
Prudential Indicators 2012/13
1.
Gross Debt and the Capital Financing Requirement:
1.1
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 (CFR) in the preceding year plus the estimates of any
additional capital financing requirement for the current and next two financial years. The
Council met this requirement as only £3.5m of short term borrowing for cash flow
purposes was undertaken in the year which was below the CFR shown at 4.1.
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.
Capital Expenditure
Total
2.2
2012/13
Updated
Estimate
£000s
11,650
2012/13
Outturn
£000s
4,546
Capital expenditure will be financed or funded as follows:
Capital Financing
Capital receipts
Government Grants
Revenue contributions
and Reserves
Total Financing
2012/13
Updated
Estimate
£000s
4,840
2012/13
Outturn
£000s
6,352
1,148
458
447
11,650
4,546
2,951
This table shows that capital expenditure was 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
2012/13
Estimate
%
2012/13
Outturn
%
(1.95)
(1.49)
70
The indicator is negative because the Council has interest receivable and no financing
costs. The change in the ratio is a result of the actual investment income being lower
than budget.
4.
Capital Financing Requirement:
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
2012/13
Estimate
£000s
1,916
2012/13
Outturn
£000s
1,916
2013/14
Estimate
£000s
1,634
2014/15
Estimate
£000s
1,328
4.2
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
5.2
2012/13
Estimate
£
2012/13
Outturn
£
Nil
Nil
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
Section 3(1) of The Local Government Act 2003 requires the Council to set an Affordable
Borrowing Limit (referred to in the Code as the Authorised Limit), regardless of its
indebted status. It is a statutory limit which should not be breached.
6.2
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.
6.3
The Head of Finance confirms that there were no breaches to the Authorised Limit and
the Operational Boundary during the year. The maximum amount borrowed during the
year was £3.5m
71
2012/13
Estimate
£000s
Authorised Limit for
Borrowing
9,556
Outturn
as at
31/3/13
£000s
3,500
Authorised Limit for Other
Long-term Liabilities
1,916
1,916
11,472
5,416
Operational Boundary for
Borrowing
5,458
3,500
Operational Boundary for
Other Long-term Liabilities
1,916
1,916
Operational Boundary
for External Debt
7,092
5,416
Authorised Limit for
External Debt
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.
The limit therefore allowed maximum flexibility for fixed or variable rate investments and
investment decisions were ultimately made on expectations of interest rate movements.
2012/13
Estimate
%
Compliance with
Limits
Upper Limit for Fixed Interest Rate Exposure
(100%)
Yes
Upper Limit for Variable Interest Rate
Exposure
(100%)
Yes
72
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 is to limit large concentrations of fixed rate debt needing to be replaced at
times of uncertainty over interest rates. The limits were set to give maximum flexibility
should any borrowing be required for cash flow purposes therefore the limits have been
complied with.
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 borrowing therefore the limits have been set to allow the
Council maximum flexibility should any borrowing be required (potentially for cash flow
purposes).
Lower
Limit
for
2012/13
%
0
Maturity structure of fixed rate
borrowing
under 12 months
Upper
Actual
% Fixed
Limit
Fixed rate
Rate
for
Borrowing Borrowing
2012/13 at 31/3/13 at 31/3/13
%
£m
100
3.5
100
12 months and within 24 months
0
100
24 months and within 5 years
0
100
5 years and within 10 years
0
100
10 years and within 20 years
0
100
20 years and within 30 years
0
100
30 years and within 40 years
0
100
40 years and within 50 years
0
100
50 years and above
0
100
10.
Upper Limit for total principal sums invested over 364 days:
10.1
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
2012/13
Estimate
£m
Outturn
31/3/13
£m
15
6
73
Cabinet
10 June 2013
Agenda Item No______10_______
Debt Recovery 2012-13
Summary:
This is an annual report detailing the council’s collection
performance and debt management arrangements for 2012/13
The report includes a:




Recommendations:
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
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,
number, and e-mail:
1.
All
All
telephone Louise Wolsey 01263 516081
louise.wolsey@north-norfolk.gov.uk
Introduction
1.1. The Corporate Debt Management and Recovery Policy at Appendix 1 was last
approved by Members in May 2011. One of the components of this policy is a Debt
Write-Off Policy attached at Appendix 2. This annual report is one of the performance
management measures to provide members with outturn figures for 2012/13 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
74
Cabinet
2.
10 June 2013
Background
2.1. Writing off bad debts is a necessary function of any organisation collecting
money. The Council is committed to ensuring that debt write offs are kept to a minimum
by taking all reasonable steps to collect monies due. There will be situations where the
debt recovery process fails to recover some or all of the debt and will need to be
considered for write off. The Council views such cases very much as exceptions and
this report identifies those debts.
3.
Performance
3.1. Below is a summary of the Council’s three main income streams and the level of
debt associated with each, for the last four financial years.
Table 1
Income
Area
Council
Tax
NNDR
Year/Date 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
2009/10
£1,596,611 £829,249
1.56%
£579,895
2010/11
£1,596,946 £756,064
1.39%
£570,910
2011/12
£1,630,971 £762,241
1.39%
£588,250
2012/13
£2,184,250 £1,221,685** 2.2%
£798,512
2009/10
£203,102
£139,290
0.64%
£107,503
2010/11
£216,850
£151,995
0.73%
£130,880
2011/12
£221,280
£179,044
0.64%
£141,591
2012/13
£467,220
£345,291
1.51%
£279,008
*This is the cumulative arrears (excludes costs) for all years including 2012/13.
** This is the arrears figure as at 31/3/2013. Collection of the 2012/13 debt is ongoing
and £194,230 (16%) council tax and £88,149 (26%) NNDR has been collected since
that date against previous year’s arrears.
The Government re-introduced the Deferral scheme in 2012. The value of deferred
payments is £92,453. This figure is not included in the arrears figures.
Table 2
75
Cabinet
10 June 2013
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
Sundry Income
(includes
HB
Overpayments)
Sundry Income
(includes
HB
Overpayments)
Sundry Income
(includes
HB
Overpayments)
Sundry Income
(includes
HB
Overpayments
*
**
***
Year
Total Arrears
Net
Debit
at 31st March
Raised
All Years (after
End of Year
write offs)
%
Provision
outstanding
Bad/Debt
against debit
all years
at year end
2009/10
*£1,016,713
£5,213,910
19.50%
£353,654
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
2010/11 Housing Benefit Overpayments = £ 487,627
2011/12 Housing Benefit Overpayments = £ 509,403
2012/13 Housing Benefit Overpayments = £594,596
3.2. The arrears figures reflect that 26 debtors with invoice values over £5,000
account for £272,241 (36% of the outstanding debt).




21 of these invoices are Housing Benefit overpayments (HBOP) totaling
£232,671.
2 HBOP are currently in dispute and are at Tribunal stage, totalling
£22,803
10 HBOP are paying by installments, totaling £113,771 - 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 9 invoices are at varying stages of recovery.
It is not anticipated that the remaining non HBOP accounts will result in arrears. The
bad debt provision now includes debts with balances greater than £2,000 which are not
over a year old (i.e. raised in 2012/13)
Table 3
76
for
for
Cabinet
Income
Area
Council
Tax
NNDR
Sundry
Debtors
10 June 2013
Year/Date
Net
Collectable
Debit
2009/10
2010/11
2011/12
2012/13
£53,309,139
£54,588,328
£54,801,832
£55,279,404
Average
Number of Amount
per
Accounts
Account (after
adjustments)
52,281
£1020
52,540
£1038
52,708
£1040
52,905
£1045
2009/10
2010/11
2011/12
2012/13
£20,128,852
£20,901,384
£21,705,544
£22,850,477
5,779
5,868
6,023
6,094
£3,483
£3,562
£3,603
£3,749
£203,102
£216,850
£221,280
£470,930
2009/10
£5,213,910
21,451
£243
£1,016,713
2010/11
£4,804,262
24,157
£199
£816,705
2011/12
2012/13
£5,283,458
£5,054,143
6,801
6,083
£777
£831
£827,655
£761,402
Total of all Years
Arrears
£1,596,611
£1,596,946
£1,630,971
£2,184,250
Table 4
Performance Indicators for in year collection.
Income
Area
2009/10
Council
Tax
NNDR
2010/11
2011/12
2012/13
Target
2012/13
Target
2013/14
98.4%
98.6%
98.6%
97.9%
98.3%
98.3%
99.2%
99.1%
98.8%
98.4%
98.9%
99.0%
3.3. The collection of Council Tax and Non-Domestic rates has been particularly
challenging this financial year. The service converted to a new revenues and benefits
back office, document management and workflow system in June 2012. It was
anticipated that performance would be affected by the data conversion and additional
staff were recruited to assist. However, following the data conversion there were
significant problems with NNDC accessing the data that was held at Kings Lynn. It was
not until January 2103 when the data was returned to NNDC that full working access to
the system was resolved. In addition the economic position and changes to some
people’s welfare benefits will undoubtedly have impacted on collection. Ongoing
recovery of the previous year’s debts will continue. Over 5000 reminders will have been
sent in April & May and over 1,500 summonses.
77
Cabinet
10 June 2013
3.4.1 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 payers are aware of any
appropriate discounts, exemptions and benefit entitlement they may be entitled to.
Information sent with the annual bills, the web site, service information provides
information on discounts etc.
Ongoing promotion of DD also forms an important part of debt management 76.4% of
council tax payers are paying by direct debit and 53% of NNDR customers pay by direct
debit.
3.5
The empty property relief threshold for business properties was reduced for
2011/12 from £18,000 down to £2,599. Any property with a Rateable Value above
£2,599 is liable to pay the full ‘empty rate charge’. Currently there are 281 empty
properties of which 170 have a RV over £2,599. 49.
3.6
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 2014 when the relief may reduce back to 50%. We grant SBRR
to 3,307 accounts (54.3%) out of 6,094 business rated properties.
Accounts receiving SBRR with a Rateable Value up to £6,000 = 2,945
Accounts receiving SBRR with a Rateable Value £6,001 to £12000 = 362
4.
Write-Offs
4.1. The table below details the actual amounts of debts that have been written off
over the last five years.
Table 5
2012/13 (£)
Income Area
2008/9(£)
2009/10(£)
2010/11(£)
2011/12(£)
Council Tax
NNDR
Sundry Debtors
includes
Housing Benefit
write-offs
Housing Benefit
118,310
78,100
63,468
65,557
76,111
62,783
159,759*
71,320
47,423
144,803
120,994
33,241
85,614.67
46,165
64,902
29,682
32,440
30,654
16,841
51,688
78
Cabinet
10 June 2013
Table 6
The table below details the category of debts that have been written off over the year
2012/13.
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
Costs
Totals
Council Tax(£)
NNDR(£)
Sundry Debtors(£)
138.32
4.61
17,393.64
5,347.24
53,404.91
2.20
12,694.43
4,898.88
21,044.56
19,334.82
30,144.17
19127.83
0
0
600.21
0
294.98
124.46
2,249.77
1548.06
0
199.17
0
0
0
0
0
3,553.04
0
0
0
1,387.40
85,614.67
704.54
0
0
0
772.26
46,165.25
1732.75
192.14
-2,167.84
1,995.71
0
64,902.34
4.2
Council Tax write offs have decreased in value from last year. Only £3,553 of our
write offs arose due to the debt being impossible to collect, £19,334 was due to
insolvency - something which we cannot control and £53,404 due to absconders.
4.3
National Non-Domestic Rates (NNDR) write offs have decreased in value from
last year.
5.
Financial Implications
5.1. The Council is already required to make provision for bad and doubtful debts.
The additional information gained from this report will help improve monitoring and our
ability to consider the appropriateness of the provisions in a more accurate way.
79
Cabinet
10 June 2013
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.
80
Agenda Item No____11________
ANNUAL REPORT AND AMENDMENT TO ANNUAL ACTION PLAN 2013/14
Summary:
This report outlines the key elements of the Annual
Report 2012/13 to be published in July 2013 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 2012/13 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 2012/13 concludes that North
Norfolk District Council continues to deliver good
performance.
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
2012/13.
4) That Cabinet approve the addition of an activity to
the Annual Action Plan 2013/14 as shown in
paragraph 5.2
Reasons for
Recommendations:
To comply with the provisions of the Council
Performance Management Framework and local
government best practice.
Cabinet Member(s) All
Ward(s) affected All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.thomas@north-norfolk.gov.uk
1.
Introduction
1.1
The draft Annual Report 2012/13 is attached as Appendix I. 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
81
Management Framework and presents information to the public so they may
assess the Council’s performance.
1.2
This Annual Report 2012/13 is the first Annual Report against the service
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
2012/13. The activities and targets set for 2012/13 were built into the Service
Plans for 2012/13.
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, 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 2012 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 and issues encountered
during 2011/12.
3.3
An overview for each of the five Corporate Plan Themes;
 Jobs and the Local Economy
 Housing and Infrastructure
 Coast, Countryside and Built Heritage
 Localism
 Delivering the Vision
Financial summary (to be included in the final published version) – this will
include information on the Councils spend on revenue and capital for
2012/13, as will be reported to Cabinet, along with the source of funds for the
year.
3.4
82
3.5
A progress report for each activity in the Annual Action Plan 2012/13.
3.6
Performance against targets or comparison to last year – The results for all
the key performance indicators over the past year.
3.7
Workforce profile statistics 2012/13 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.
4.
Publishing
4.1
The Annual Report is published on the Council’s website and the
performance information is embedded on the appropriate service pages on
the 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 in July 2012 and they also be given authority
to approve a communications plan for presenting the annual report to the
public.
5.
Addition to the Annual Action Plan 2013/14
5.1
In building the new Annual Action Plan for 2013/14 into service plans it has
been recognised that a key area of work necessary for achieving our
objectives was omitted. It is therefore proposed that the following activity be
added to the action plan under the Localism theme and the objective
“Recognise the important role that Town and Parish Councils have as the
democratic embodiment of their communities”.
5.2
“We will work with Town and Parish Councils, local organisations and
community and voluntary groups to improve health and wellbeing consistent
with the aims of the Health and Wellbeing Board”.
6.
Conclusion
6.1
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 continues to deliver
good performance.
7.
Implications and Risks
7.1
Failure to implement a robust performance management framework including
an annual report that provides evidence of performance improvements,
identifies areas that require corrective action, acknowledges achievements
and builds on good practice could have a number of consequences. These
may include:
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



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
8.
Financial Implications and Risks
8.1
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.
9.
Sustainability
9.1
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.
10.
Equality and Diversity
10.1
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.
11.
Section 17 Crime and Disorder considerations
11.1
There are no direct Section 17 Crime and Disorder implications from this
report.
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Appendix I
Corporate Plan 2012-15
Small Government
Big Society
Annual Report 2012/13 – Final Draft
[Please note any text shown in square brackets will not appear in the final report and is shown
only as useful information during the production process]
If you would like to receive this document in large print, Braille,
alternative format or in a different language, please telephone
01263 516214 and we will do our best to help.
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Contents
Introduction
3
Our Vision and Values
4
Our Priorities
5
Jobs and the Local Economy
5
Housing and Infrastructure
6
Coast, Countryside and Built Heritage
7
Localism
8
10
Delivering the Vision
Financial Summary
10
Appendix 1 - Annual Action Plan 2012/13 delivery
reports
11
Appendix 2 - Performance indicator results for 2012/13
25
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Introduction
[PICTURE]
[PICTURE]
Tom FitzPatrick
Sheila Oxtoby
Leader
Chief Executive
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North Norfolk is a unique and beautiful place. It is somewhere we cherish and we are proud to be entrusted
with the role of leading our district and contributing to the future wellbeing and prosperity of the many
communities we represent.
Our Vision
Our priorities for North Norfolk are:





To boost employment and create more jobs.
To enable the provision of new homes and the infrastructure that goes with them.
To protect our coastline and the character of our countryside and built heritage.
To empower individuals and local communities to have a greater say in their own futures.
To reform the organisation to deliver high quality services that achieve our priorities in an
efficient manner that represents good value for local taxpayers.
Our Values
We will






Empower people and communities to make their own decisions
Support people in taking control of their own lives
Be innovative and flexible in the delivery of our services
Be open and transparent in our decision-making
Work with partners in the private, public and voluntary sectors where appropriate for the
benefit of the District
Value and respect the roles of councillors and staff and act with integrity at all times
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Our Priorities
Jobs and the Local Economy
What we want to achieve:
A district with a thriving economy offering better jobs and prospects for local
people
What we have done in 2012/13 to achieve it:

Consulted upon a proposed Local Development Order at Egmere to provide a centre for
survey, project development and maintenance activities in support of future wind energy
schemes off the North Norfolk coast

Participated at the East of England Energy Group (EEEGR) Southern North Sea Conference
and Exhibition event when the Council and partners launched the North Norfolk Renewables
website promoting the offshore energy sector

Continued to work with local businesses and training providers to promote skills
development so that local people can access employment opportunities and redundancy
advice/support

Launched Enterprise North Norfolk which is a programme to support new business start-ups
through training and mentoring of new entrepreneurs

Held a summit promoting apprenticeships in rural areas and developed proposals for a
programme

Started a programme of ‘Introduction to Self-Employment’ seminars, the first being delivered
in February 2013 in North Walsham

Supported the North Norfolk Fisheries Local Action Group (FLAG) which has developed
£2.4m worth of projects which have been submitted to the Marine Management Organisation
(MMO) for approval

Supported the establishment of a Destination Management Organisation (DMO) as a
private-public sector partnership to promote the district for tourism

Continued to support Norfolk County Council’s Broadband Programme to update broadband
speeds in the district
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Housing and Infrastructure
What we want to achieve:
Everyone in North Norfolk should have the opportunity to buy or rent a decent
home at a price they can afford, in a community where they want to live and
work
What we have done in 2012/13 to achieve it:

Encouraged Neighbourhood Plans where communities wish to take these forward to deliver
additional housing. Government funding was secured for Holt Town Council’s
neighbourhood planning project through the pilot scheme

Gathered evidence to support the introduction of the Community Infrastructure Levy on
development viability and infrastructure requirements including stakeholder consultation

Completed the empty homes pilot, which involved three properties, one of which has been
brought back into use

Established an Enforcement Board to provide an interdepartmental approach to complex
empty homes cases which during the period December 2013 to May 2013 considered 47
long term empty properties and 5 have so far been brought back into use

Adopted a development brief for a site in Stalham and undertook consultation on the
development brief for Fakenham

Granted planning permission on major residential allocations at Hoveton, Stalham, Cromer
and Wells. A number of other pending proposals are expected to progress to permissions
over the coming months

Improved the time to reach planning decisions for major applications. The percentage of
applications determined within the time limit improved from 32% to 58%. An external,
independent team has undertaken a peer review across the Planning Service to deliver an
improvement action plan

Adopted a three-part Housing Strategy, Empty Homes Policy and Allocations Policy for
affordable housing

Developed the Empty Property Matching Service which offers support to owners wishing to
sell their properties

Offered support to owners wishing to rent their property and provide a service to support
new landlords and will also advertise, for a small fee, the property on the Your Choice Your
Home which provides access to over 4900 home seekers
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Coast, Countryside and Built Heritage
What we want to achieve:
A district where the beautiful natural environment and built heritage is valued
and protected for future generations and where the coastline is defended
against erosion wherever practicable.
What we have done in 2012/13 to achieve it:

Delivered a programme of maintenance works to deliver the objective of defending coastal
settlements against erosion wherever practicable

Obtained government funding and commissioned design works for the Cromer Coast
Protection capital scheme, to enable the management of the coast defences in Cromer

The Kelling to Lowestoft Ness Shoreline Management Plan (SMP) was adopted by the
Council and the Environment Agency. Started a Cromer to Winterton study to improve our
understanding of coastal processes and future funding requirements

Agreed an integrated coastal management approach by the Council. The Coastal Issues
Forum continues to provide an important community engagement role

Started and progressed the remedial and repair works to Cromer Pier structure and
successful completion of the works is anticipated in July 2013

Adopted a Conservation Area Appraisal and Management Plan for Cromer

The Council was presented with four awards from twelve categories at the 2013 East Anglia
Local Authority Building Control (LABC) Building Excellence awards

Holt Country Park has been awarded the Green Flag for the eighth year in succession and
this year Sadler's Wood, North Walsham has also received the award

Blue Flag accreditation was awarded to all four beaches at Sheringham, Cromer, Mundesley
and Sea Palling for the 2012/13 season. East Runton has also been awarded the Quality
Coast Award

The innovative new toilet blocks at Happisburgh and Sheringham East Promenade both won
gold awards in the National Loo of the Year Awards held in December 2012. The
Happisburgh block was also a double national category award winner

Promoted a campaign to reduce dog fouling across the district

Received a 5 star award for the cleanliness of the district at the Clean Britain Awards in
September 2012

Ran Greenbuild which is the region's biggest 'green lifestyles' event and has now been
running for six years. The event in 2012 attracted around 6,000 visitors and had 95 business
exhibiting
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Localism
What we want to achieve:
To embrace the Government’s localism agenda to empower individuals and
communities to take more responsibility for their own futures and to build a
stronger civil society
What we have done in 2012/13 to achieve it:

Operated the Big Society Fund for a full year, during which time 47 projects were awarded
funding amounting to a total of £397,537

Delivered energy efficiency advice with the objective of alleviating fuel poverty through the
Stay Warm and Cosy initiative across the district

Carried out regular meetings with Town and Parish Councils

Established procedures to support Community Right to Bid and Right to Challenge and
signposted these on the Council’s website

Successfully transferred the Wells Tourist Information Centre service to the Wells Maltings
Trust saving £100,000 over the next 5 years

Undertook a feasibility study to explore the potential for an asset transfer initiative for North
Lodge Park in Cromer

Established a new ‘enabling’ fund to support community initiatives in the next year

The Leadership of Place Project in North Walsham has undertaken property appraisals and
considered options for town centre development and improvement linked to major retail
planning applications in the town

Successfully obtained funding of £18.5k for two projects – a ‘Collective Energy Switching’
scheme and a pilot scheme known as the ‘Energy Box’. The scheme was branded as the
‘Norfolk Big Switch and Save’ and signed up 12,000 households of which 2,796 were in
North Norfolk

Launched a DEFRA funded community resilience campaign across North Norfolk with ten
communities to build expertise in responding to emergencies and major incidents

Worked with multi agency partners to co-ordinate and manage the successful delivery of the
Olympic Torch Relay event through three north Norfolk towns which saw in excess of 30,000
spectators attending this prestigious event

Enabled 6 community gyms to be established, including 2 for neighbouring councils,
benefitting residents who would not normally have access to health and leisure facilities

Supported the arts to produce 1111 event/exhibition days; attracting 61748 attendances.
1527 artists and performers were involved in delivering these activities; supported by 2753
volunteers. Further events were promoted through the Arts website, e-newsletters and
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officers provided support to artists, arts agencies and voluntary organisations which, in turn,
enabled further work to be delivered to local communities

Completed the exterior refurbishment of the Sheringham Little Theatre. The Council spend
on this project was £48,091.49. This has since been followed by a grant from the Norfolk
County Construction Fund which has allocated £66,000 to the refurbishment of the interior of
the coffee bar and front of house facilities
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Delivering the Vision
What we want to achieve:
We will make the Council more efficient so that we can deliver our priorities
and offer value for money for local taxpayers
What we have done in 2012/13 to achieve it:

Reviewed and implemented a new management structure making a saving of £231k

Reviewed and updated the Council’s Constitution

Through the Legal Services’ external trading arm (eastlaw ) produced an income of £86,000,
exceeding its budget target by 44%

Improved the Council’s website, which has been ranked through Sitemorse as the highest
ranking government website in the County according to function, accessibility and
performance

Established a Closed Circuit Television (CCTV) Working Party to review the service and
identify savings

Continued to review and monitor sickness absence in line with the Council’s policy to ensure
that staff are able to return to work effectively

Progressed a project to procure a new Material Recycling facility with a view to awarding the
contract in May 2013. The new arrangements will allow a range of materials to be recycled
at lower cost

Procured and implemented with the Borough Council of Kings Lynn and West Norfolk a new
OpenRevenues system for the administration of revenues and benefits

Set up the Customer Service Improvement (CSI) Board to oversee all customer service
activities including web development
Financial Summary
[To be included in the final version of the report]
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Appendix 1 - Annual Action Plan 2012/13 delivery
reports
Jobs and the Local Economy
Increase the number of new businesses and support the growth and expansion of
existing businesses
Activity
AAP - J A 01 - We will support
businesses investing in the
district through the provision
of comprehensive advice
about District Council support
and signpost to other
agencies as appropriate
Status
On Track
AAP - J A 02 - We will work
with partners to develop and
deliver a programme of
business start up support
Completed
Successfully
AAP - J A 03 - Working in
partnership we will maximise
the opportunities for
investment in the district
through the development of
allocated town centre retail
sites.
On Track
AAP - J A 04 - We will seek to
maximise the opportunities
for the district to benefit from
investment in renewable
energy developments off the
North Norfolk Coast
On Track
Progress/ Action Note
Mainstream business support services
have not recovered to their former level
following the closure of East of England
Development Agency and Business Link.
Businesses now look to the Council for
advice and guidance. To mitigate the lack
of mainstream services, the Council has
improved its electronic/web based business
support through the licensed provision of
North Norfolk Open 4 Business and
COBRA which is an information for
business portal.
The Council has successfully contracted
out the North Norfolk Enterprise
Programme to Engage With Business. The
Programme commenced delivery March
2013.
Investigations in relation to relevant sites
occur as and when opportunities become
apparent and consultants advising the
Council remain on a flexible contract. Site
appraisals were completed for two key sites
in North Walsham, however wider issues
relating to development proposals in the
town have meant that further site
investigations are on hold pending the
outcome of these.
The Council continues to undertake an
ambitious programme of work in support of
offshore wind energy schemes. A
proposed Local Development Order at
Egmere in support of off-shore wind energy
schemes is to be the subject of a further
report to Cabinet in May 2013.
The Council has launched the North Norfolk
Renewables website promoting the Port of
Wells and the proposed Local Development
Order (LDO) at Egmere.
The Sheringham Shoal development has
become operational and the Council has
also held discussions with partners to the
Dudgeon offshore wind scheme regarding
their programme of investment
AAP - J A 05 - We will work
with regional partners to
realise the benefits of Rural
Cancelled
The Council worked with regional partners
to gain Rural Growth Network status for
North Norfolk and realise the benefits the
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Activity
Growth Network status for
North Norfolk
Status
Progress/ Action Note
AAP - J A 06 - We will support
the North Norfolk Fisheries
Local Action Group (FLAG) in
delivering projects from the
£2.4 million funding secured
for the fishing sector
On track
AAP - J A 07 - We will actively
pursue all options in order to
ensure the future
development and operation of
an Enterprise Hub for north
Norfolk as a platform for
improving levels of business
start up and enterprise
Postponed or delayed
status would bring. Despite a considerable
amount of support and effort by partners
and the New Anglia Local Enterprise
Partnership (LEP) for Norfolk and Suffolk
Rural Growth Network status was not
awarded.
The North Norfolk Fisheries Local Action
Group (FLAG) has developed £2.4m worth
of projects which have been submitted to
the Marine Management Organisation
(MMO) for approval.
At the end of March 2013 the MMO had
approved and sent grant offer letter for
projects totalling £253,657. Additionally, the
MMO were in the process of approving
further projects totalling £478,604 and the
project pipeline still looks healthy.
The FLAG has since submitted and
received approval for further projects and is
confident of committing funds by the end of
2013, subject to the MMO providing
feedback and advice on outstanding
approvals in a timely manner.
There has been no movement leading
toward the establishment of the project.
However, it is likely that the Council will
commit to its development 2013/14 in line
with the aspirations of the Corporate Plan.
Improve the job prospects of our residents by developing a skilled and adaptable
workforce that is matched to business growth and development
Activity
AAP - J B 01 - Through the Council's
Learning for Everyone (L4E) Team we will
provide information, advice and guidance
to local people wishing to enter
employment or improve their levels of
skills and raise aspiration
AAP - J B 02 - The L4E team will offer
bespoke programmes of advice and
support to people faced with redundancy
from local companies as and when such
events occur
AAP - J B 03 - The L4E team will also
engage with existing and new employers in
the district to understand their future
workforce requirements and co-ordinate
provision of relevant training courses to
secure employment within the district
Status
On Track
Progress/ Action Note
On Track
The contract for Skills Support for
Redundancy has also been extended.
On Track
Learning 4 Everyone is continuing to
work with the Business Forum, Skills
Partnership and local businesses and
training providers to overcome the
barriers and issues for training provision
opportunities in North Norfolk.
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The externally funded contracts being
delivered by Learning 4 Everyone; Skills
Support for the Unemployed, Skills
Support for Redundancy and the
National Careers Service, have all been
extended.
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Activity
AAP - J B 04 - We will explore
opportunities to work with local
businesses and identify funding to support
the provision of apprenticeships and work
experience schemes with the aim of
increasing the employment opportunities
of young people in the district
Status
On Track
Progress/ Action Note
In February 2013, a summit was held to
review the issues with the work
experience and apprenticeship
programme in North Norfolk. From this a
programme is being developed in two
phases. The first is focussing on raising
awareness and assisting the County
Councils Apprenticeship Norfolk
programme. The second phase is about
overcoming the barriers facing small
businesses in engaging with apprentices
as well as helping young people on the
pathway to work experience
opportunities - this has been subject of a
Coastal Communities Fund Expression
of Interest.
Reduce burdens to business by removing unnecessary red tape and bureaucracy at the
local level
Activity
AAP - J C 01 - We will develop a
comprehensive package of support
and provide information to simplify
the process for businesses looking to
invest in North Norfolk
Status
On Track
AAP - J C 02 - We will ask users of
our training, business support and
advice services for their feedback and
improve future service delivery to
meet business needs
On Track
AAP - J C 03 - We will review our
procurement policies to maximise the
opportunities to source goods and
services locally
On Track
AAP - J C 04 - We will work with
partners to roll out Broadband
Delivery UK’s (BDUK) £60m Norfolk
Broadband Initiative across North
Norfolk
AAP - J C 05 - We will review all of our
business regulatory functions to
ensure we are focused on local
business need
On Track
Progressing
to plan
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Progress/ Action Note
The Council has successfully developed a
Renewables web based portal which
provides important information necessary to
attract inward investment. The North Norfolk
Renewables website was launched officially
in March 2013 at the SNS2013 - Sea of
Opportunity Conference held at the Norfolk
Showground.
See http://www.northnorfolkrenewables.org/
Following the launch delay of the North
Norfolk Enterprise programme, monitoring
customer feedback started in March.
Performance measures are now in place
with quarterly performance reports being
provided as part of a Service Level
Agreement with Engage With Business.
Following the local procurement conference,
a guide to local procurement has been
finalised and printed for distribution. Council
purchasing policies will be reviewed in 2013
when the Procurement Strategy is updated.
The Council continues to collaborate with
Norfolk County Council in the roll out of the
broadband programme for Norfolk.
A review of planning enforcement is covered
in the Planning Peer Review which will
include an action plan for change. A review
of Environmental Health regulatory functions
will be complete by summer 2013. Learning
from the Enforcement Board will also be
used to inform further improvement during
2013/14.
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Promote a positive image of North Norfolk as a premier visitor destination
Activity
AAP - J D 01 - We will develop
and implement new marketing
initiatives which use digital and
remote technology to promote
North Norfolk to visitors and
tourists
AAP - J D 02 - We will support
and facilitate the establishment
of a private sector led
Destination Management
Organisation (DMO) for the
north Norfolk coast and
countryside to maintain the
profile of the district as a
leading tourist destination
within the UK boosting levels of
employment and income for the
district
Status
On Track
Progress/ Action Note
Postponed or
delayed
Revision of the Service Level Agreement has
been completed, with on-going discussions
between Visit North Norfolk Coast and
Countryside Ltd. (VNN) and the Council
taking place.
Campaigns on social media (i.e., Facebook
and Twitter) are now on-going in partnership
with the Destination Management
Organisation (DMO). Further enhancement
on the visitnorthnorfolk.com website is also
underway.
Improve access to funding for businesses
Activity
AAP - J E 01 - We will support the
roll-out of the Coastal Pathfinder
and Fishing Sector Business
Loans and Grant Schemes and
consider the opportunities of
extending these programmes
across a larger area
AAP - J E 02 - Working with the
North Norfolk Business Forum,
other representative local groups,
regional partners and financial
services companies we will seek
to ensure that small and medium
sized enterprises have improved
access to investment finance to
support business growth and
development across the district
Status
On Track
Progress/ Action Note
Progressing to
plan
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The further development of a North Norfolk
Micro Finance Scheme is underway. The
licence to widen the scheme came into
effect in January 2013 and partners are
currently working towards a relaunch in
2014. During this period it is hoped that the
fund will be grown to £500k, maximising the
European Fisheries Fund.
Two key initiatives, those of Pathfinder and
North Norfolk Fisheries Local Action Group
(FLAG) have been the focus of the Council’s
strategy to deliver this objective. It is
anticipated that these initiatives will be
successful in terms of providing previously
unavailable funding.
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Housing and Infrastructure
Increase the number of new homes built within the District and reduce the number of
empty properties
Activity
AAP - H A 01 - We will bring
forward detailed proposals on
allocated sites by better
engagement with developers
Status
On Track
Progress/ Action Note
AAP - H A 02 - We will produce
development briefs on 4 of the
allocated sites
Some problems
AAP - H A 03 - We will seek to
increase the number of new
homes built of all tenures to 250
Some problems
AAP - H C 01 - We will encourage
the development of
neighbourhood planning by
supporting Holt Town Council in
a pilot scheme to produce a
neighbourhood plan.
AAP - H C 02 - We will encourage
further neighbourhood plans to
be developed by holding a
neighbourhood planning seminar
for town and parish councils.
AAP - H E 01 - We will undertake
and evaluate a pilot Compulsory
Purchase Order project to bring
long term empty homes back into
use
On Hold
The Council has established productive
relationships with developer interests on
most of the larger allocated development
sites in the district. Planning permissions
have been granted on sites at Hoveton,
Stalham, Cromer, Wells, and there are a
number of other current or pending
proposals which are expected to progress to
permissions over the coming months.
The brief for Stalham has been approved by
Council and planning permission has been
granted on the site. A draft brief has been
submitted for Holt and this will be published
for public consultation in April/May. Revised
highway details have been submitted in
relation to the Fakenham brief and these are
currently with the Highway Authority for
consideration.
The service has granted planning
permissions for a number of large
development sites in the district and some
development has commenced on allocated
sites at Cromer, Hoveton, and Blakeney.
Final completion figures for 2012-13 are 242
and reflect a national slowdown in dwelling
completion rates.
Holt Town Council is the only council in the
District which has expressed an interest in
preparing a Neighbourhood Plan. No formal
application has been made. Briefings
continue to be offered to Parish and Town
Councils on request.
Completed
Successfully
Seminar for Parish Councils held on 25 April
2012.
Completed
Successfully
The Empty Homes Pilot focused on taking
action on three long term empty
properties. A report on the outcome of the
pilot was considered by the December 2012
Cabinet meeting. The Cabinet report
contains recommendations that
enforcement action on empty homes be
directed through the new Enforcement
Board and £200,000 ring-fenced for
enforcement action on empty homes were
agreed. During the period December 2013
to May 2013, 47 long term empty properties
were considered and 5 have now been
brought back into use.
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Activity
AAP - H E 02 - We will support
owners to bring at least 40 empty
homes back into use and provide
opportunities to do so through
advertising of private rented
properties and the Empty Homes
matching service. Where owners
are reluctant to bring properties
back into use, take enforcement
action as required.
Status
Some problems
Progress/ Action Note
The Empty Homes Policy was developed
and adopted by Full Council on 19
December 2012. The new Enforcement
Board gives a high priority to work on
reducing the number of empty
homes. Letters have been sent to 79
owners of empty homes which will be
followed by a further two letters and
enforcement action if necessary. 34 owners
responded to our letters and the initial
outcome was that 14 were not empty and so
we were able to update Council Tax to bring
the property back into use.
Increase the number of affordable homes with a range of tenure types
Activity
AAP - H B 01 - We will
undertake a complete review of
our housing strategy to ensure
that we take full advantage of
opportunities within the
Localism Act and are
maximising our influence over
housing growth
AAP - H B 02 - We will evaluate
our approach to viability
assessments to maximise
development opportunities.
Status
On track
Progress/ Action Note
Postponed or
delayed
This activity is currently delayed to be
completed by March 2014. However, in the
meantime a flexible and responsive approach
to viability assessments undertaken will be
used.
Housing Strategy papers were presented to
Cabinet during 2012/13 and strategic changes
made to service delivery to maximise housing
development, despite difficult market
conditions, and develop our approach to bring
Long Term Empty Properties back into use.
Secure investment in new infrastructure
Activity
AAP - H D 01 - We will consult
and then obtain agreement on a
charging schedule to achieve
investment in new infrastructure
Status
On Track
Progress/ Action Note
Final Viability and Infrastructure reports have now
been completed. These have been subject to
informal consultation with key developer interests in
the district. Wider public consultation on a
Preliminary Draft Charging Schedule is expected in
May/June 2013.
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Coast, Countryside and Built Heritage
Maintain the integrity of special landscape designations and balance the development of
housing and economic activity with the need to preserve the character and quality of the
District's countryside and built heritage
Activity
AAP - C A 01 - We will
assess and implement
requirements for a new
Green Flag award at Sadlers
Wood, North Walsham and
work to retain the Green
Flag status of Holt Country
Park
AAP - C A 02 - We will
promote the Graham Allen
Award and monitor the
number of applications
received.
Status
Completed
Successfully
Progress/ Action Note
Completed
Successfully
AAP - C A 03 - We will
complete or review four
Conservation Area plans, in
Cromer, Sheringham,
Walsingham and Wells
Some problems
AAP - C A 04 - We will work
with other agencies to retain
all of the District's Blue Flag
beach status
Completed
Successfully
AAP - C A 05 - We will
achieve zero defaults in our
waste and related services
contract for cleanliness
Some problems
The 31st Graham Allen Awards for
Conservation & Design in North Norfolk were
once again a resounding success with 16
applications received. The awards were
decided in August and the formal ceremony
took place on 8 October 2012.
Cromer Conservation Area Management Plan
was adopted by the Council at the Cabinet
meeting in November 2012. Walsingham will
go to public consultation in May 2013.
Sheringham and Wells have been rescheduled
for public consultation and adoption during
2013/14 (See Annual Action Plan 2013/14).
On-going work to maintain high quality tourist
beaches has led to the retention of all of the
District's Blue Flag beaches. In 2012/13, Blue
Flags were awarded at Sheringham, Cromer,
Mundesley and Sea Palling beaches. East
Runton was also awarded the Quality Coast
Award.
The Council was awarded a 5 star award for
the cleanliness of the district at the Clean
Britain Awards in September 2012.
With the support of local communities involved
at Sadlers Wood, North Walsham,
improvement work has been undertaken,
including a new play area, which has led to the
award of the Green Flag. Green Flag status
has been achieved, for the eighth year in
succession, at Holt Country Park.
Service delivery through the contract has been
broadly acceptable during the last 12 months
and the number of shortcomings has
diminished as the year has progressed. Kier
have strengthened the local management team
and improvements from this change are
evident across the contract.
The corporate target of zero default notices
has not been achieved during the year,
reflecting the high standards the team expect
from Kier. Additional focussed monitoring
during March 2013 has resulted in an increase
in the number of rectifications and defaults
issued when compared to recent months.
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Activity
AAP - C A 06 - We will
ensure all reported fly-tips
are responded to within two
working days
Status
Some problems
Progress/ Action Note
The figures shown under Q1-4 cover all
pollution complaints including fly tipping. The
drop in Q4 relates to reporting errors which
have been identified between Kier and the
Council.
Design a more cohesive framework for coastline management
Activity
AAP - C B 01 - We will define
the Coastal Zone (ICZM) and
agree consultation
mechanisms with partners
Status
Progress/ Action Note
Progressing to plan The work streams involved in the development of
AAP - C B 02 - We will
identify specific
ICZM projects and identify
the means of funding
On Track
an integrated approach to coastal management
are progressing. Meetings have been held with
Parish Councils to explain the implications of the
adopted Shoreline Management Plan (SMP) and
the emerging Cromer to Winterton Study. The
outputs from the Study will inform the direction of
future work but processes are in place to
maintain a flow of information for stakeholders.
Shoreline Management Plan (SMP) 6 has now
been adopted and a process for implementing
and monitoring the action plan has been
established. On-going projects include the
conclusion of Cromer to Winterton Study,
assisting in the implementation of the
Environment Agency's National Coastal Erosion
Risk Management programme, Cromer coast
protection scheme, and the development of
further coastal management initiatives.
Continue to defend coastal settlements against erosion wherever practicable
Activity
AAP - C C 01 - We will
commission design works
for the Cromer Defence
Scheme
Status
On track
Progress/ Action Note
AAP - C C 02 - We will
develop and adopt a
prioritised programme for
future 'Selected' Coastal
Defence Work schemes
AAP - C C 03 - We will
identify coastal funding
opportunities to support the
prioritised programme
On track
A coastal study has been commissioned to model coastal
processes and sediment movement. These models are
currently being run and the outcomes from the models are
expected in June 2013. These outcomes will be used to
inform the development of a programme of works.
On track
The outcomes from the coastal study will be used to inform
the development of a programme of works and the
requirement to secure associated funding.
Design of the scheme is continuing. The public consultation
process is taking place during summer 2013 prior to going
out to tender late summer. The consultation covers the
impact of the scheme on residents, businesses and visitors
to Cromer. The scheme will secure the defences of Cromer
for the next sixty years.
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Localism
Recognise the important role that Town and Parish Councils have as the democratic
embodiment of their communities
Activity
AAP - L A 01 - We will establish a
protocol and put in place the means to
respond positively to requests from Town
and Parish Councils to take over the
running of services within their
area/communities to ensure that they
share in the benefits of growth
AAP - L A 02 - We will establish a regular
dialogue with Town and Parish Councils
and hold workshops for training and
development in particular to encourage
wide community participation in the
democratic process
AAP - L A 03 - We will work with Town
and Parish Councils, local organisations
and community and voluntary groups to
improve health and wellbeing consistent
with the aims of the Health and Wellbeing
Board
Status
On Track
Progress/ Action Note
On Track
Meetings with Town Councils have taken
place and a process of wider engagement
is being developed.
On Track
Town and Parish Councils in Cromer,
Fakenham and North Walsham will be
invited to be involved in the Healthy
Communities and Ageing Well projects.
Town and Parish Councils will be eligible
to apply for funding from the North Norfolk
Big Society Fund for projects which
improve the social and economic
wellbeing of the area. The Council will
support Town and Parish Councils that
wish to apply for the enabling fund.
The Council has developed and is
supporting a bid to the Coastal
Communities Fund, which aims to
improve training and career development
in coastal areas in relation to the care
sector.
The Council’s website has been updated
with links to relevant guidance/process in
respect of expressions of interest under
Community Right to Challenge and
nominations under Community Right to
Bid recommended to Cabinet in April
2013.
Encourage communities to develop their own vision for their future and help them to
deliver it
Activity
AAP - L B 01 - We will encourage
the development of
neighbourhood plans by taking
the Holt Neighbourhood Plan as
a model including holding a
seminar on neighbourhood
planning for town and parish
councils (See also action to
deliver Housing and
Infrastructure)
Status
Completed
Successfully
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Progress/ Action Note
Successful meetings have been held with
Holt Town Council to discuss the Holt
Neighbourhood project plan.
A successful seminar for Parish Councils
was held on 25 April 2012 which has led to
follow up discussions with six town / parish
councils on the processes, benefits, and
outcomes of successful neighbourhood
plans.
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Activity
AAP - L B 02 - We will
commission work through a
Service Level Agreement (SLA)
for community planning and for
community and voluntary sector
capacity building
Status
On Track
Progress/ Action Note
AAP - L B 03 - Subject to
guidance, we will assess
expressions of interest from
voluntary or community groups
who wish to take over the
running of a service and / or
community asset, and complete
the initial assessment within six
weeks of receiving the request
Progressing to plan
AAP - L B 04 - We will work with
the key organisations with an
interest in North Walsham to
implement the actions and
interventions identified through
the 'Leadership of Place' project.
AAP - L B 05 - We will utilise our
resources, statutory powers and
influence to realise opportunities
for North Walsham town centre
On Track
AAP - L B 06 - We will respond
positively to communities
wishing to undertake projects
locally
AAP - L B 07 - We will work with
communities to identify the
current and future social,
economic and environmental
needs of their resident
population and support them to
identify and implement local,
innovative and creative solutions
On Track
AAP - L B 08 - We will draft and
consult on a communication and
engagement framework
On Track
On Track
Dialogue with a wide range of
organisations in relation to community
projects and plans has taken place,
resulting in practical support, advice and
funding. Support has been provided to the
voluntary sector via an SLA with Voluntary
Norfolk. The SLA will be reviewed in May
2013.
Proposals for the possible transfer of North
Lodge Park to an appropriate community
organisation are under development,
consultants have been appointed and a
programme has been developed, resulting
in draft recommendations in April 2013.
The expression of interest to take over the
operation of Wells-next-the-Sea TIC
resulted in that service being transferred to
a community organisation under a Service
Level Agreement (SLA) with a saving to the
Council of £100,000 over 5 years.
Property appraisals have been
commissioned for key development sites.
Options appraisal for future structure and
focus of Leadership of Place partnership
have been discussed.
In relation to North Walsham Leadership of
Place project, the Council investigated
options for town centre investment/
enhancement. Key decisions rest on the
outcome of pending planning applications.
The Council has established processes to
facilitate community-led localism initiatives
steered by a 'Localism Board'.
On Track
The enabling fund has been established
from second homes funding to ensure
greater proactive engagement with Town
and Parish Councils, community groups
and local communities to identify needs
and issues. The Council has decided to
join the 'Your Voice' partnership, in order to
coordinate and extend engagement with
communities and elicit feedback on key
issues.
Discussions regarding Community
Engagement are continuing; the approach
to engagement is likely to develop around
the use of 'Your Voice'.
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Encourage the growth of The Big Society within communities
Activity
L C 01 – We will review services
and ensure that the Council’s
activities are not competing
inappropriately with or stifling
alternative provision
Status
On Track
AAP - L C 02 - We will launch and
monitor a community investment
fund, to be known as The Big
Society Fund to invest £450,000 in
local communities, strengthen civil
society, and establish the process
for determining priorities for
expenditure
AAP - L C 03 - We will ensure that
work with statutory, voluntary and
community organisations
contributes to the aims of the Big
Society agenda.
On Track
On Track
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Progress/ Action Note
The Council continues to review opportunities to
deliver discretionary services in different ways so
as to ensure that the most appropriate delivery
model is in place. During 2012/13, the Cabinet
agreed to support the establishment of a private
sector-led Destination Management Organisation
which will take forward the promotion of the
District to tourism markets and has developed a
Service Level Agreement with this organisation for
a three year period. The Council has also agreed
to pass responsibility for the management and
operation of the Tourist Information Centre in
Wells-next-the-Sea to a voluntary Trust and will
explore further similar opportunities elsewhere in
the District as part of its commitment to support
increased community involvement in the provision
and ownership of local services.
47 projects were awarded funding amounting to a
total of £397,537. The Fund will continue for a
second year and will be managed internally. There
will be an enabling fund of £225,000 and a grants
fund of £225,000 for projects up to £15,000.
Grants will be awarded by the North Norfolk Big
Society Fund Panel and will open for applications
in May 2013
The Service Level Agreement with Voluntary
Norfolk is being managed and monitored and will
be reviewed prior to its end date in July. Suitable
agreements are being negotiated with other
organisations capable of delivering services that
benefit communities in North Norfolk.
Communication is maintained with a network of
organisations and through the 'enabling fund' it is
anticipated that support can be targeted to assist
in meeting specific needs.
Page 21 of 33
Delivering the Vision
Deliver strong governance arrangements
Activity
AAP - V A 01 - The Audit
Committee will oversee a review
programme to ensure that audit
coverage reflects the risks facing
the Council and produce a revised
annual audit plan for 2013/14
onwards
AAP - V A 02 - We will set and
achieve 100% compliance with
deadlines agreed with Internal
Audit for recommendations rated
as Medium and High
Status
Progressing to plan
AAP - V A 03 - We will implement
the revised performance
management framework
On Track
AAP - V A 04 - We will review and
update the Council's constitution
Completed
successfully
Some problems
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Progress/ Action Note
The 2013/14 Annual Audit Plan was
approved by the Audit Committee in
March 2013, this also included the three
year Strategic Internal Audit Plan for the
period 2013/14 to 2015/16. Delivery of the
annual plan will be monitored throughout
the year by officers and Members (through
the Audit Committee).
At the time of reporting this position two
final internal audit reports are yet to be
issued. For the year a maximum of one
high priority recommendation (subject to
agreeing one of the final reports) has been
raised. There has been some delay in
implementing recommendations and the
monitoring of these has been through the
Performance and Risk System. Some
delays in implementing recommendations
are as a result of reprioritising service
demands and therefore these factors need
to be considered as part of agreeing
achievable implementation dates. The
initial outcomes of the recommendation
follow up review carried out during April
for the position at 31 March is indicates
that there are 15 medium
recommendations (17.9%) [subject to
confirmation by Audit] outstanding at 31
March 2013.
Training of managers and staff took place
in July and August 2012 to implement the
revised framework. The quarterly reporting
to Cabinet process was implemented,
reviewed and improved throughout the
year.
The new constitution was approved by
Full Council in December 2012.
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Ensure that effective communications exist
Activity
AAP - V B 01 - We will make
Outlook cost neutral
Status
Completed
AAP - V B 02 - We will
identify the means of
optimising media coverage
of Council activities and
initiatives and place the
WEB at the heart of all we do
On Track
AAP - V B 03 - We will
develop a Customer Access
Strategy to ensure that the
most economic, efficient
and accessible forms of
contact are in place for all
our customers
Progress/ Action Note
Cabinet decided in December 2012 to withdraw
all funding for Outlook as from April 2013. A
programme of alternative methods of
communication, in addition to the emphasis on
channel shift to the website, is being developed.
The programme is focused on the
Communications team providing a more coordinated communications ‘offer’, aimed at
ensuring that service requirements are provided
by an appropriate balance of web, media and
print activity, both to achieve the service
communication objectives and to ensure that
accessible information is available to the
community as a whole, not just to those with easy
access to the web.
Staff briefing sessions were held during March
2013, highlighting the foundations of the Channel
Shift Initiative. The Customer Service
Improvement (CSI) Programme Board was set up
in June 2012 and is overseeing all CSI activities
including web development.
The Council has developed a ’new approach' to
communications to ensure a comprehensive and
cohesive coverage of Council issues and to
create a campaign approach to enable as wide
coverage as possible. Relationships with local
newspapers have been further developed and
with the cancellation of Outlook the team has
identified alternative publications, as alternative
means of giving residents access to information.
Work will continue to develop this outlet as well.
The Council is currently engaged in a project,
with support, to develop an overall business
vision and strategy for IT, to drive customer
management improvements and transformational
change. It is anticipated that this will lead to a
report coming forward in July 2013 to the
Business Transformation Board.
Postponed or
delayed
Deliver strong and proportionate organisational management in the Council
Activity
AAP - V C 01 - Deliver
revised / streamlined
management
arrangements
Status
Progress/ Action Note
The review of senior management arrangements is
complete resulting in savings of £231k.
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Prioritise Services and Functions in line with the wishes of our communities and to
deliver our corporate objectives
Activity
AAP - V D 01 - We will prioritise
services and redirect resources
in line with those priorities by
completing fundamental reviews
of services that residents have
identified as the least important
and that the Council does not
consider to be a priority
AAP - V D 02 - We will consult
with the residents through a
Place Survey.
Status
On track
Progress/ Action Note
A Planning Peer Review was carried out in
February 2013.
A CCTV review panel has been established and is
due to report during 2013.
On Hold
This activity has been superseded by the need to
develop a general approach to consultation.
Discussions concerning the way forward are
taking place at CLT/Cabinet level.
Deliver year-on-year improvements in efficiency
Activity
AAP - V E 01 - We will support
the implementation of the cost
saving Revenues and Benefits
shared services project
Status
Some problems
V E 02 – We will identify
potential partnership working
opportunities and produce
business cases
On track
AAP - V E 03 - We will devise and
implement budgets to deliver a
zero increase in the District
Council's part of the Council Tax
charge and ensure spend is
contained within budgeted
allocations
AAP - V E 04 - We will review the
reward structures to encourage
and reward staff, for finding
innovative new ways to deliver
higher quality services more
efficiently
Completed
Successfully
Not Started
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Progress/ Action Note
After some problems with system stability,
the North Norfolk data was brought back to
Cromer in January 2013. Since this time
North Norfolk staff have enjoyed increased
functionality and reliability of the system
allowing a significant improvement in
performance. The issuing of Council Tax
and Business Rate bills is considered to
have gone well and the team is now in the
process of preparing year end reports.
Work is continuing with the other Councils
in Norfolk to produce a new consortium
contract for the processing of dry
recyclables collected through the waste
collection service.
The Council is working with Kier to improve
the efficiency of waste collection especially
in trade and garden waste services.
The 2013/14 budget process culminated in
the budget and Council Tax being
approved by Full Council in February 2013.
This included a zero increase in district's
Council Tax.
Work on this activity has been scheduled
for delivery during 2013/14 through the
Human Resources service plan.
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Appendix 2 - Annual Action Plan 2012/13 performance
indicators
These tables show, for each of the themes of the Corporate Plan;
 achievement against targets,
 comparison with the previous year’s performance where possible, or
 the results for the first year of measurement.
Key
Not
applicable
Indicators can be labelled as not applicable for the following reasons;
 This is the first year of measurement
 This is important information for the Council and the influence and actions of the Council
may make improvements but there is not sufficient control over the outcome to set a
target
Jobs and the Local Economy
Name
Reference
2011/12
Result
2012/13
Target
2012/13
Result
Percentage of
loans fund that
can be reapplied
J 001
First year of
measurement
2012/13
20.0%
Q4=1.0%
J 002
First year of
measurement
2012/13
15
9
Number of
businesses who
access loans &
grants under the
Coastal
Pathfinder
scheme
Progress
The loan and grant scheme was,
until June 2012, limited to 90
businesses that participated in
the Pathfinder Business Advice
project. It was made available to
a wider eastern part of the district
from July 2012. Take up,
however, was not as expected
even though the scheme was
directly marketed to eligible
businesses in the area which is
why the percentage of loans fund
that can be reapplied is lower
than expected. (See AAP J E 01
– appendix 1)
The loan and grant scheme was,
until June 2012, limited to 90
businesses that participated in the
Pathfinder Business Advice project.
It was made available to a wider
eastern part of the district from July
2012. It is proposed to relaunch the
scheme during the second quarter
of 2013/14 to make the loans and
grants available to both business
start-ups and existing businesses.
A notable success of the scheme
is the loan of £50k provided to
Jonas Seafood, as part of an
overall investment package of
more than £300k raised for the
expansion of their business to a
new site located in Cromer. North
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Name
Customer
Satisfaction with
Business Support
Number of
businesses
assisted to
retain jobs
and/or increase
employment
each year
Rate of take up of
new designated
employment land
Reference
2011/12
Result
2012/13
Target
J 003
First year of
measurement
2012/13
Not
applicable
J 004
57
25
J 005
0.74%
Not
applicable
2012/13
Result
45
90
Not
applicable
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Norfolk District Council supported
two successful applications to the
European Fisheries Fund (EFF)
enabling the businesses to
acquire premises and equipment
for their planned opening
schedule for August 2013.
Due to the delay in the launch of
the North Norfolk Enterprise
Programme, related performance
measures in respect of Customer
Satisfaction were unattainable.
On-going support is being provided
to local businesses that have
contacted the Economic
Development team for assistance.
The service includes business
advice, training and signposting to
other relevant providers.
0.20%
The figure is ahead of the annual
target but below 2011/12. This is a
good level of outcome given the
national economy. There has been
significant development over the
last twelve months in North
Walsham (e.g. Waitrose), Cromer
(e.g. Lidl) and the Clipbush Lane
site in Fakenham (e.g. medical
centre, pub)
67
In order to improve job prospects
for our communities, the Council
provides a range of skills support
under the banner of Learning 4
Everyone. The Skills Support for
the Unemployed, Skills Support
for Redundancy and National
Careers Service contracts are
being delivered and a joint
initiative with Jobcentreplus, the
North Norfolk Work Club, has
also been launched with activities
in Fakenham, Cromer and North
Walsham. Over the financial year
67 economically active people
have been assisted into work and
there has been a decline in the
number of 18-24 year old jobseekers compared with the
previous year.
This is considered to be good
performance at a time of
economic uncertainty.
Number of
economically
active people
assisted into
work each year
J 014
Progress
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Housing and Infrastructure
Name
Number of new
homes built of all
tenures
Reference
H 001
2011/12
Result
337
2012/13
Target
250
2012/13
Result
242
Number of long
term empty
homes (6 months
or more) (as at
October each year
on CTB1
submission)
H 002
786
Number of
development
briefs produced
on allocated sites
H 003
First year of
measurement
2012/13
4
2
Number of
households from
the housing
register rehoused
H 005
477
Not
applicable
359
Number of
affordable homes
granted planning
permission
H 006
110
Not
applicable
134
Number of
affordable homes
built
H 007
65
Not
applicable
13
746
(Low is
good)
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886
Progress
In 2012/13 planning permission was
granted on a number of site
allocations, meaning that there is a
strong pipeline of residential
development schemes that can
move forward in the next couple of
years.
The increase in the number of long
term empty homes is not surprising
in the current economic climate with
the difficulty in selling properties
within North Norfolk. An Empty
Homes Policy was developed and
adopted. The Enforcement Board
has been established with
£200,000 ring-fenced for
enforcement action on empty
homes. During the period
December 2013 to May 2013, 47
long term empty properties were
considered and 5 have now been
brought back into use.
Adopted a development brief for a
site in Stalham and undertook
consultation on the development
brief for Fakenham.
Comparison to last year has shown
that the number of relets within
social housing is reducing; this
could be due to a number of effects,
reduction in development, tenants
not moving/affording to move.
Victory Housing Trust has made a
commitment on disposals and this
will have an impact on the number
of vacancies that become available
for re-let.
The increase in numbers this year is
due to a small number of large sites
beginning to deliver higher
proportions of affordable housing. In
the short term, this trend is likely to
continue.
A total of 13 affordable dwellings
were completed in 2012/13. This is
significantly below what was
expected due to slippage of some
scheme completions from 2012/13
into 2013/14 during this year partly
as a result of poor weather.
Affordable housing completions for
2013/14 are therefore predicted to
be 91.
Page 27 of 33
Name
Reference
2011/12
Result
2012/13
Target
Number of homes
granted planning
permission (all
tenure types)
H 008
438
Not
applicable
Estimated worth
(£) of investment
secured in new
infrastructure
H 009
-
Not
applicable
2012/13
Result
536
Progress
The increase in the number of
homes granted planning permission
during 2012/13 relates to the
development of a number of the
larger allocated sites.
Information will be available by 1
June.
Coast, Countryside and Built Heritage
Name
Percentage of
planning
decisions
delegated to
officers
Reference
C 001
2011/12
Result
93.28%
2012/13
Target
90.00%
2012/13
Result
92.48%
20.0%
Percentage of
planning appeals
allowed
C 002
28.6%
Percentage of
MAJOR planning
applications
processed within
thirteen weeks
C 003
31.58%
Not
applicable
58.33%
Percentage of
MINOR planning
applications
processed within
eight weeks
C 004
39.13%
72.00%
38.35%
Percentage of
OTHER planning
applications
processed within
eight weeks
C 005
53.46%
80.00%
53.38%
(Low is
good)
V14 for Cabinet – final draft
112
Progress
35.19%
For the 2012/13 financial year in
total there were 27 appeals with
8 allowed and 3 part allowed, and
the percentage for the year
therefore is 35.19%. This is very
close to the national average.
Recent appeal decisions have
confirmed that the Planning
Inspectorate is giving greater
weight to the National Planning
Policy Framework and in some
cases this is overriding adopted
Council policies.
The final quarter has seen a
significant improvement in
performance in determining
major planning applications
within the statutory timescale with
8 of the 9 cases determined
within time. This has enabled
performance for the year as a
whole to rise to 58.33%
compared with 31.58% for the
previous year.
Performance in the determination
of minor planning applications
within the eight week statutory
period of 38.35% is disappointing
and has been impacted on by the
emphasis given to handling major
applications referred to above (C
003). The Planning Service was
subject to a planning review in
February 2013 and an action
plan developed, which will seek
to significantly raise performance
during 2013/14.
Page 28 of 33
Name
Conservation
Area plans that
have been
completed or
reviewed
Percentage of flytipping and all
other pollution
complaints
responded to
within two
working days
Reference
C 006
2011/12
Result
8
2012/13
Target
4
2012/13
Result
1
Q1=89.74%
Fly tipping
=72.00%
Q2=89.22%
C 007
All other
pollution
complaints =
91.94%
100.00%
Q3=88.0%
C 008
First year of
measurement
2012/13
Not
applicable
51
Number of fixed
penalty notices
issued
C 009
First year of
measurement
2012/13
Not
applicable
6
Not
applicable
C 010
Cromer Conservation Area
Management Plan was adopted
by the Council at the Cabinet
meeting in November 2012.
Walsingham will go to public
consultation in May 2013.
Sheringham and Wells have
been rescheduled for public
consultation and adoption during
2013/14.
The figures shown under Q1-4
cover all pollution complaints
including fly tipping. The drop in
Q4 relates to reporting errors
which have been identified
between Kier and the Council.
Q4=78.90%
Number of
pollution
enforcement
interventions
Number of
defaults issued to
the waste and
related services
contractor for
cleanliness
Progress
39
39
(Low is
good)
V14 for Cabinet – final draft
113
The number of cases resulting in
potential legal interventions for
the year was 51. 10 resulted in
warning letters, 2 in Cautions and
10 in prosecutions of which 9
were successful. The remaining
19 cases were not progressed
due to insufficient evidence. This
represents 61% of potential
cases resulting in positive
interventions.
The number of FPNs served is
low. However, the use of fixed
penalties is just one of the many
interventions used in prevention
of environmental crimes. They
are only served when offences
are witnessed by an officer and
only then in line with the
Environmental Health
Enforcement Policy.
Service delivery through the
contract has been broadly
acceptable during the last 12
months and the number of
shortcomings has diminished as
the year has progressed. Kier
have strengthened the local
management team and
improvements from this change
are evident across the contract.
Page 29 of 33
Name
Number of
rectifications
issued to the
waste and related
services
contractor for
cleanliness
Percentage of
household waste
sent for reuse,
recycling and
composting
Blue flag
accreditation:
Resort Beaches
Reference
ES 015
2011/12
Result
First year of
measurement
2012/13
2012/13
Target
2012/13
Result
Not
applicable
55
(Low is
good)
ES 001
42.74%
Not
applicable
42.02%
C 012
4
3
4
Number of Green
Flag
accreditations for
parks and
countryside
C 013
1
2
2
Number of
applications
received for the
Graham Allen
Awards
C 015
14
Not
applicable
16
V14 for Cabinet – final draft
114
Progress
The number of rectifications
issued to the contractor is normal
for a contract of this size and
reflects the high standards of
cleanliness and value for money
the Council expects. Close
contract monitoring has resulted
in North Norfolk District Council
achieving a 5 star award for the
cleanliness of the district at the
Clean Britain Awards in
September 2012. Overall the
performance against the contract
standard is improving and the
number of shortcomings has
diminished as the year has
progressed.
Estimate. Final figure available
by 20 June.
Blue flag accreditation was
awarded to all four beaches for
the 2012 season.
Sadler's Wood, North Walsham,
has now successfully been
awarded the Green Flag. This is
in addition to Holt Country park
which has now been awarded the
Green Flag for eight years in
succession.
The 31st Graham Allen Awards
for Conservation and Design in
North Norfolk were once again a
resounding success. The awards
were decided in August and the
formal ceremony took place on 8
October 2012.
Page 30 of 33
Localism
Name
Reference
2011/12
Result
2012/13
Target
2012/13
Result
Number of
grants awarded
to local
communities
from the Big
Society Fund
L 005
First year of
measurement
2012/13
Not
applicable
47
Amount of
funding
investment in
community
projects (from
the Big Society
Fund) (£)
L 006
First year of
measurement
2012/13
Not
applicable
397,537
2012/13
Target
2012/13
Result
Progress
The Fund has been operational for a
full year, during which time 47
projects were awarded funding
amounting to a total of £397,537.
Some grants were conditional and
some projects have yet to
commence, so not all of the funding
has yet been drawn down. Project
implementation is being monitored
by Norfolk Community Foundation
(NCF) and quarterly and end of year
reports will be reported as
appropriate
The Fund has been operational for a
full year, during which time 47
projects were awarded funding
amounting to a total of £397,537.
Some grants were conditional and
some projects have yet to
commence, so not all of the funding
has yet been drawn down. Project
implementation is being monitored
by Norfolk Community Foundation
(NCF) and quarterly and end of year
reports will be reported as
appropriate. Review and proposals
for the future of the Fund were
reported to Cabinet in April.
Delivering the Vision
Name
Percentage of
(Medium Priority) audit
recommendations
completed on time
Percentage of (High
Priority) audit
recommendations
completed on time
Number of actions
identified in the
Annual Governance
Statement action
plan completed on
time
Reference
2011/12
Result
V 001
72.0%
80%
74.6%
V 002
72.0%
100%
100%
V 003
3
4
V14 for Cabinet – final draft
115
3
Progress
This is based on the follow up
position as at March 2013 (based on
44 completed out of 59 medium
recommendations).
No outstanding high priority
recommendations at the year end.
Of the four actions identified within
the 2011/12 Annual governance
statement three have been
implemented in full (11/12 a, 11/12 b
and 11/12c). The remaining
recommendation relates to reviewing
the governance arrangements for
significant partnerships and the
policies and procedures for
evaluating the effectiveness of
partnership.
Page 31 of 33
Name
Reference
2011/12
Result
2012/13
Target
2012/13
Result
Percentage of audit
days delivered
V 004
100.0%
100%
100%
Working Days Lost
Due to Sickness
Absence (Whole
Authority days per Full
Time Equivalent
members of staff)
Not
applicable
V 007
5.17
6.80
(Low is
good)
Progress
At the time of reporting this value
(10/5/13) there are still some
outstanding pieces of audit work in
relation to the 2012/13 audit plan in
terms of finalising the reports,
management responses and issue of
final reports. However, it is
anticipated that there will be full
delivery of the audit plan for 2012/13
The sickness absence figure for
2012/13 is 6.80 days per full time
equivalent. This figure is higher than
in 2011/12 (5.17) but still significantly
lower than in previous years. All
sickness absence is reviewed by line
managers. The Council’s
performance in this area compares
well to both the public sector average
(obtained from a CIPD report in 2012)
of 7.9 days per employee per year
and the private sector which is
approximately 2 days less per year.
During the period 2012/13, 56% of
sickness absence relates to shortterm and 44% of the total relates to
long-term.
Not
applicable
Level of overspend/
(underspend) (£) total
Level of overspend/
(underspend) (%) total
Level of overspend/
(underspend) (£/%) by
the new service
groupings
Assets, Coastal
Defence & Leisure
Community and
Economic
Development
Corporate Services
V 008
-
V 009
-
V 005 &V
006
-
Not
applicable
-
Not
applicable
-
Not
applicable
-
Customer Services
-
Development
Management
Environmental Health
-
Financial Services
-
Organisational
Development
Percentage of Council
Tax collected
Percentage of Nondomestic rates
-
-
(Close to
zero is
good)
Not
applicable
Data will be available 31 May 2013.
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
RB 009
98.60%
98.30%
97.90%
RB 010
98.84%
98.90%
98.40%
V14 for Cabinet – final draft
116
The Revenues collection figures are
initial figures awaiting final
confirmation upon completion of the
year end accounts for council tax
Page 32 of 33
Name
Reference
2011/12
Result
2012/13
Target
2012/13
Result
and business rates. It was
anticipated that collection would be
impacted by the on-going economic
situation and the implementation of
the replacement software for
revenues & benefits. Additional staff
were employed to assist the service
through the implementation period.
The on-going technical problems
the service experienced by having
to access data held at Kings Lynn
severely impacted the 'recovery'
period from system implementation.
It was not until the data was
returned to Cromer in Jan 2013 (7
months after go live) that any real
impact was made on outstanding
work. In addition the service had to
prepare and implement the
technical reforms for council tax
and business rates and the council
tax support scheme.
Debt recovery work did commence
in July following conversion and a
detailed recovery plan including
court dates has been implemented.
However, inevitably the unforeseen
factors of system problems and the
technical reforms etc. have had a
significant impact on the collection
figures for revenues.
collected
Housing Benefit
Security - Number of
Prosecutions and
Sanctions
Average time for
processing new
claims (Housing and
Council Tax Benefit)
Speed of processing:
change in
circumstances for
Housing and Council
Tax Benefit claims
(average calendar
days)
Progress
RB 021
52
Not
applicable
RB 027
17.3
days
Not
applicable
30.0
RB 028
9.9 days
Not
applicable
18.0
23
The conversion of council tax and
benefits systems and implementing a
number of major welfare and
technical changes had an impact on
performance during 2012. Earliest
reports available from October 2012
showed 5172 cases with work
outstanding. New claims on average
that week were taking 42 days and
change of circumstances 50. By
deploying additional staff and using
overtime by March 2013 this had
reduced to 1751 cases outstanding.
New claims on average that week
were taking 24 days and changes 6,
thus showing a vast improvement.
North Norfolk District Council
Holt Road, Cromer, Norfolk, NR27 9EN
Telephone 01263 513811
www.northnorfolk.org
V14 for Cabinet – final draft
117
Page 33 of 33
Agenda Item No____12________
LEISURE CONTRACT PROCUREMENT
Summary:
The Council’s current leisure contract with DC Leisure is
due to expire on 31 March 2014. There is an option
within the current contract to extend the arrangements
for up to 5 years, subject to mutual agreement. This
report discusses the potential options around the
procurement of a new contract while also considering
the future of the Splash leisure facility in Sheringham
which has now been operating for 25 years.
Options considered:
Leisure contract –
- whether to extend with the current contractor
and if so for how long;
- consideration of the most appropriate model for
delivering these services in the future including
traditional procurement with an external provider,
Trust options, to bring the services back in
house or some form of new hybrid arrangement;
- depending on the decision taken in relation to
the
most
appropriate
delivery
model,
consideration of the various options for procuring
any new contract, including the use of external
support and the issuance of a PIN (Prior
Indicative Notice) to gauge supplier interest and
feedback in relation to the contract opportunity
and the potential redevelopment of the Splash
facility;
- how to ‘package’ the future contract
arrangements and what if any additional services
to include as potential additions ie dual use
sports centres, woodlands etc.
The report also considers initial redevelopment
opportunities for the Splash leisure facility at
Sheringham –
- the Splash facility is now 25 years old, the
Council needs to consider all options around the
future provision of these facilities.
Conclusions:
Entering into some form of contract extension with the
current providers DC Leisure would allow the Council
the necessary time to fully explore all of the potential
operating models whilst also engaging with the market,
through the production of a Prior Information Notice
(PIN), to help shape any new contract. The extension
may also result in reductions in the current contract
management fee. Furthermore it would allow for
118
detailed investigations to be undertaken into all of the
potential options regarding the Splash leisure facilities.
Recommendations:
Reasons for
Recommendations:
It is recommended that Cabinet;
1. Approve a contract extension with DC
Leisure to enable a full analysis of all the
options available for future contractual
arrangements
and
the
potential
redevelopment of the Splash site.
2. Delegate to the Corporate Director and
Portfolio holder for Leisure the power to
progress the arrangements for/and to
conclude the appropriate length of contract
extension with DC Leisure to achieve the
best outcome for the Council.
3. Approve budget provision of £9,000 from the
General Reserve to commission support
from Improvement East to facilitate the
production of a Prior Information Notice (PIN)
to help consult with the market to explore
contract options.
To allow for sufficient time to fully explore all of the
potential operating models and procurement options in
relation to any new leisure contract whilst potentially
achieving revenue savings on the current contract cost.
A contract extension would also provide the time to
assess the options regarding any re-provision of the
Splash facility.
Cabinet Member(s)
Ward(s) affected
Cllr John Lee
Sheringham
Cllr Rhodri Oliver
Contact Officer, telephone number and email:
Duncan Ellis (Head of Assets and Leisure), 01263 516330, duncan.ellis@northnorfolk.gov.uk
1.
Introduction
1.1
The Council’s current leisure contract with DC Leisure is due to expire on 31
March 2014. There is an option within the current contract to extend the
arrangements for an additional 5 years subject to mutual agreement.
1.2
The contract covers the management and operation of the Council’s three
leisure centres which include Victory Leisure Centre in North Walsham,
Fakenham Leisure Centre and The Splash in Sheringham.
1.3
Both Victory and Splash provide swimming facilities, but Victory has been
designed and built as a more serious swimming facility whereas Splash
provides more of a recreational leisure/fun pool which includes a wave
119
machine and slide. These centres also provide gym and dance/studio
facilities while Splash also boasts a badminton court.
1.4
The Victory facility was subject to an extension to the gym area to help meet
increased demand and was completed during the 2007/08 financial year. This
capital improvement was financed by DC Leisure at a cost of approximately
£260,000. DC Leisure would normally write off a capital investment of this
nature over a period of 15 years but as there was only 7 years of the current
contract remaining. An arrangement was therefore reached whereby if DC
Leisure were not successful in obtaining a contract extension or winning the
next contract then the Council would repay any undepreciated amount. The
Council’s accounts currently contain a contingent liability in relation to this of
£148,000, which is the amount that would be payable if DC Leisure were not
successful with the new contract.
1.5
The Fakenham facility has no swimming provision and includes a gym,
various studios and a large sports hall. It is slightly different to the other two
facilities in that it is also used as the main sports facility for Fakenham High
School who have a Service Level Agreement (SLA) to cover their
requirements.
1.6
The Splash is by far the oldest facility opening in 1988, and is coming towards
the end of its useful economic life having been operational for 25 years.
Having been designed during the 1980’s the facility is expensive to run (due
mainly to the very high roof over the pool to accommodate the slide) and does
not reflect the energy efficient design of modern facilities such as Fakenham
and Victory which are 9 and 10 years old respectively.
2.
Change of subcontractor
2.1
DC Leisure Holdings was recently acquired by Places for People (PfP) and
now forms part of the PfP group. The group are one of the largest property
management, development and regeneration companies in the world, with
balance sheet assets of £3.1bn as at 31 March 2012.
2.2
To take advantage of opportunities in the leisure management contracting
sector PfP have established a national not for dividend organisation called
Places for People Leisure Limited. This has also been registered as a charity.
There are numerous charities that operate leisure facilities within the sector
so this is an accepted delivery model.
2.3
Under these revised arrangements DC Leisure Management Ltd (DCLM) will
sub-contract their leisure management contract to Places for People Leisure
in the same way it does currently using North Norfolk Leisure Community
Association as its sub-contractor. There has therefore been no change in our
relationship, with DCLM being the head contractor but with the new Charity as
its sub-contractor undertaking and providing the day to day leisure services. A
Delegated Authority was completed in April to recognise this revised subcontractual relationship.
2.4
The purpose of this report is to investigate the options for the future of the
contract, including the possible extension of the current arrangements and
also to consider the potential redevelopment options for Splash.
3.
Contract Procurement
120
3.1
As discussed above the current contract includes a provision for an extension
for a period up to of 5 years subject to mutual agreement. Officers have
undertaken initial discussions with DC Leisure who have confirmed their
interest in the contract extension option. They have indicated that potential
savings could be achieved on the current contract management fee and
officers estimate this to be in the range of £50k - £100k per annum depending
on the length of the extension.
3.2
There are a number of advantages to extending the contract. As well as
providing a potential revenue saving, it would also provide the time to
undertake a thorough options appraisal around the future delivery of these
services, including;




traditional procurement with another external leisure provider such as
DC Leisure;
Trust options with other Councils;
to bring the services back in house or;
some form of new hybrid arrangement.
3.3
Some other local Councils in the area are in the process of investigating
options around establishing a Leisure Trust. Extending the current contract
would enable the Council to consider the viability of entering into a joint
arrangement such as this in the future (either with another Council or
independently), which may have both operational and cost saving
advantages.
3.4
The extension option would allow for any new delivery models implemented
by other Councils to settle down and become established which would help to
reduce any risks relating to any potential future joint arrangements.
3.5
The extension may also enable the Council to access capital funding that,
while not available at present, could potentially be available over the next few
years if policy changes and resources are redirected by Central Government
through agencies such as Sport England etc.
3.6
Extending the contract would allow for the Council to produce a Prior
Information Notice (PIN). This would enable the Council to gauge the level of
interest from market providers and also to seek some indication as to the best
way to package the contract and could include issues such as contract length,
service specifications and service groupings. This could also include potential
options for consideration of the Splash facility and financing options.
3.7
Discussions have already been held at officer level with Improvement East
and they have offered to support the Council with producing this notice and
helping with the supplier engagement. It has been estimated that the support
required will include the production of the PIN, assisting with the design and
facilitation of any buyer event and then helping to analyse and make
recommendations regarding the final ‘packaging’ of the contract. The
estimated cost for this piece of work is approximately £9,000, although this
will be subject to confirmation from Improvement East regarding resource
requirements.
4.
Splash redevelopment options
121
4.1
It is beyond the scope of this paper to go into this area in great detail as the
purpose of the report is to request a contract extension to enable the time to
explore these additional options more fully. Some initial considerations have
however been provided below.
4.2
The use of a PIN would help the Council to engage with the market prior to
letting any new contract to see what interest there would be in a contractor
providing a new facility or potentially suggesting alternative operating
arrangements that the Council may not have considered, including alternative
financing arrangements.
4.3
If a new facility were to be provided it might be possible to achieve annual
revenue savings for the Council. Due to the older design and inefficiencies of
the Splash facility it is felt that there would be significant savings for any
contractor taking over the operation of any new facility which would then flow
through to the Council in the form of a reduced management charge. It has
been estimated that this could produce a saving in the region of £91,000
based on the current contract management fee. It should however be noted
that the exact level of any saving will only be known once any procurement
exercise has been completed if the Council decides to contract with a
traditional leisure service provider such as DC Leisure or any new facility is
built.
4.4
The granting of some form of contract extension would give the Council the
time to fully explore all of the options for re-provision of facilities at Splash and
would also enable consultation with the market via the use of the PIN to
explore alternative financing and operating models for any new facility.
5.
Conclusion
5.1
Entering into some form of contract extension with the current providers DC
Leisure would allow the Council the necessary time to fully explore all of the
potential operating models as discussed above. It would also provide the time
to conduct any procurement exercise as required.
5.2
The additional time provided would also enable the Council to engage with
the market through the use of a PIN. This would help to collect information
regarding contract length, service specifications, service groupings and ideas
and potential options for any redevelopment of the Splash facility which would
ultimately help shape any new contract. Support for the production of the PIN
is available from Improvement East.
5.3
Initial discussions with DC Leisure suggest that potential savings could be
achieved on the current contract management fee depending on the length of
any contract extension. This would have the added benefit of reducing the
outstanding capital liability relating to the Victory gym extension.
5.4
Furthermore it would allow for detailed investigations to be undertaken into
the potential re-provision of the Splash leisure facilities.
6.
Implications and Risks
6.1
Any new procurement arrangements could result in a new contractor taking
over provision of the current services. The Council does however have an
122
excellent long term working relationship with DC Leisure. The contract
extension would provide continuity with the Council’s current supplier, thereby
reducing the risk of any deterioration in service quality due to a change in
provider.
6.2
Any new service specification or arrangements will need to give due
consideration to the requirements of the Equality Act 2010 and this is
discussed further below under the Equality and Diversity section. The
application of new best practice guidance issued by the Equality and Human
Rights Commission will help to minimise the risk of any equalities related
challenge in relation to any new service delivery contract.
6.3
There are a number of risks associated with the potential replacement of the
Splash facility. However these risks would be considered in more detail if this
option was to be further progressed and would be the subject of a separate
report.
7.
Financial Implications and Risks
Leisure Contract
7.1
Indications are that an extension may result in a reduction in the current
contract management fee which would help the Council to achieve revenue
annual savings. There is however a risk that the contractor would not be able
to successfully operate the contract following any reductions. The risk of this
is however minimised due to the recent acquisition of the company by Places
for People which has an excellent financial standing and a strong balance
sheet (the group accounts for the year ending 31 March 2012 show assets of
£3.1bn). Furthermore any failure to meet any agreed reductions may
jeopardise any future contract arrangements with DC Leisure and would also
impact on the reputation of the company.
7.2
The extension option would also have the result of reducing the outstanding
capital liability relating to the Victory gym extension pro rata. For example the
3 year extension option would reduce the outstanding liability by around
£18,000 per annum.
7.3
The longer the extension period the more risk there is, due to the age of the
Splash facility, that there may be some failure of equipment or part of the
structure for example, which may then need to be repaired if possible. DC
Leisure have however indicated that they would be prepared to make some
investment to cover potential issues if the longer extension periods were to be
considered and this would need to be included and covered as part of any
negotiations. The Council could also potentially use capital reserves to
support the facility but only where it is economic to do so.
Potential Splash redevelopment
7.4
As discussed above potential contract savings of c£91k have been estimated
based on current contract prices as a result of the redevelopment of this
facility. This is due to the fact that the Splash is an older style building and
any modern replacement would have improved thermal properties and
operational efficiency which would mean that the running costs of the facility
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should be significantly reduced, resulting in a lower management fee from
any operating partner. However, there is a risk that savings of this magnitude
would not be achieved and this would not become clear until a procurement
exercise has been completed.
7.5
It should however be noted that potential option for the replacement of the
Splash facility is subject to further work and investigation and therefore is not
explored any further within this paper. If the decision is made to replace the
facility, the options available will be the subject of a further report at that time.
8.
Sustainability
8.1
Any potential redevelopment of the Splash facility would have significant
sustainability issues as the current facility is dated and not efficient by today’s
standards. Any new facility would provide the Council with the opportunity to
greatly improve sustainability which could be further enhanced through
consideration of aspects such as ground source heating and solar panels as
part of any new capital development. However the potential redevelopment of
this site has not yet been decided and therefore there are no sustainability
issues as a result of this report.
9.
Equality and Diversity
9.1
The Equality Act 2010, consolidates protection against discrimination on the
grounds of age, disability, gender reassignment, pregnancy and maternity,
race, religion or belief, sex and sexual orientation. It also put in place a new
Public Sector Equality Duty (PSED), which gives public authorities a legal
responsibility to provide this protection and make decisions which are fair and
transparent, including the allocation of public money.
9.2
The Equality and Human Rights Commission published new guidance in
January 2013 covering the PSED under the Equality Act, which will help
public authorities encourage good relations, promote equality and eliminate
discrimination in the workplace and in delivering public services.
9.3
This duty also extends to any services that are contracted out and further best
practice guidance (Buying better outcomes) was issued by the Commission in
March 2013 covering the mainstreaming of equality considerations in
procurement processes, with a focus on;


The legal framework in relation to equality considerations and
procurement.
How equality considerations can be built into the different stages of the
procurement cycle.
9.4
If the Council were to undertake a procurement exercise or enter into any joint
arrangements with another Council(s) then due regard would need to be paid
to the service specification regarding outcomes for different groups. The
application of the best practice in relation to procurement contained within the
‘Buying better outcomes’ guide detailed above will help to minimise the risk of
any equalities related challenge in relation to any new service delivery
contract.
10.
Section 17 Crime and Disorder considerations
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10.1
There are no Section 17 Crime and Disorder implications as a result of this
report.
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