PART 1
(OPEN TO THE PUBLIC)
ITEM NO.
REPORT OF THE DIRECTOR OF CORPORATE SERVICES
TO THE BUDGET COMMITTEE
ON WEDNESDAY, 3 rd JULY 2002
TITLE: REVENUE BUDGET 2002/03 : BUDGET MONITORING
RECOMMENDATION:
Members are asked to note the contents of the report.
EXECUTIVE SUMMARY :
The report provides details of the current position relating to budget monitoring for the revenue budget and of the implementation of the agreed revenue budget savings for 2002-2003.
BACKGROUND DOCUMENTS :
Various working papers and reports.
(Available for public inspection)
CONTACT OFFICER : Colin Kay Tel. No. 793 3245
WARD(S) TO WHICH REPORT RELATE(S) Non specifically
KEY COUNCIL POLICIES 2002/03 Revenue Budget

REPORT DETAIL
1. INTRODUCTION
1.1
At this time of the year work in the Accountancy Division is focused on the closure of the final accounts for the previous year and on monitoring the budget for the current year.
1.2
Both of these issues are very important because, although final accounts provide information on what has happened they can highlight issues which may present problems in the current year’s budget.
1.3
To make maximum use of the resources available, budget monitoring concentrates on an examination of the major budget heads and the items which have caused budget difficulties previously.
1.4
In addition the overall financial position imposes a need for the agreed savings targets to be met in full and emphasis is being placed on the progress being made on each of the savings proposals.
1.5
Detailed reports were submitted to the committee last month in respect of the following
:-

Director of Education and Leisure of how the savings in Arts and Leisure will be achieved.

Director of Development Services relating to decriminalisation of parking enforcement.

Director of Community and Social Services regarding the review of Community
Centres
Amendments to the savings proposals as a consequence of the reports have been
incorporated into the savings appendix, attached to this report.
1.6
The Director of Education and Leisure was asked to produce a further report for today’s meeting on (i) the reasons for the delay in the disposal of Clifton House Farm (ii) the savings on salaries at senior management level and (iii) the current progress with regard to the proposed Leisure Trust.
1.7 In addition clarification was requested at today’s meeting of the increased income in
respect of Environmental Services.
2. BUDGETARY CONTROL REPORTS
2.1
Social Services
The directorate is reporting that considerable pressures will be faced in respect of funding changes for the residential care allowance and a means tested charging policy.
Although these areas are not having an immediate effect, it is likely that they will ckbudmonjuly02 2

materialise later in the year at a potential cost of £0.9m. Further pressure brought about by the need to meet Government targets on the building care capacity initiative could involve an additional cost of £0.3m. These were risks identified at the outset when the revenue budget for 2002/03 was determined.
Currently the performance against staffing budgets is satisfactory and this together with an under-spend on home care will provide help in meeting any additional costs in respect of the above items.
The directorate will have to consider how to absorb the financial pressures around the function/funding changes whilst maintaining an adequate level of performance on service provision.
2.2
None of the other directorates are indicating that that there are any problems and at present it is being anticipated that net expenditure will be contained within budget allocations.
3.
PROGRESS ON AGREED SAVINGS
3.1 The attached appendix provides details of the approved savings included in the
2002/2003 revenue budget.
3.2 The appendix has been split to show the savings relating to proposals agreed for
2000/2001 and those for 2002/2003 separately. The savings for 2000/2001 and
2001/2002 which were achieved in full during the last financial year and the savings for
2002/2003 which have been achieved are excluded from the detailed proposals.
3.3 Discussions have been held with directorate officers and the attached appendix shows the latest position on each of the proposals.
4. OTHER ISSUES
4.1
Salford Advance – Pathfinder grant of £820,000 was obtained to fund expenditure for the period 1 st
June 2001 – 31 st
May 2002 and this was included within the 2001/02 and
2002/03 budget. Further work is now being carried out to identify the extent of any additional continuing costs of the e-government programme that may be needed to be funded and a further report will be presented to this committee in due course.
4.2
Schools Networking – The implementation of the project has fallen behind schedule and consequently there has been a significant impact on the funding situation.
Further investigations are now being carried out and the Head of I.T. Net has been asked to prepare a full report on the position.
4.3 Annual Pay Award – The current position on the pay negotiations for local government is that the closing date for the formal ballot of members regarding possible industrial action is 5 th
July.
4.4 Members are reminded that there will be a funding requirement totalling £270,000 in ckbudmonjuly02 3

respect of the two new teams established for Job Evaluation and Scrutiny Support in the
Chief Executive’s directorate.
5. SUMMARY
5.1
A little further progress has been made in respect of implementing the agreed savings although some of the proposals will require close scrutiny to ensure the total saving will be achieved.
5.2
The budgetary control exercise has indicated that some potential problems could arise and close monitoring will be needed to determine if overspends are likely to occur.
6.
RECOMMENDATION
6.1 Members are asked to note the contents of the report.
Alan Westwood
Director of Corporate Services ckbudmonjuly02 4