ITEM No
Budget & Audit Scrutiny Committee
Action Sheet – 9th February 2006
Councillor V. Burgoyne
Councillor J. Dawson
Councillor K. Garrido
Councillor D. Jolley (Chair)
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Councillor R. Jones
Councillor R Lightup
Councillor I. Macdonald
Councillor Morris
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A
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Councillor B. Pennington A
Councillor J. Pooley
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Councillor A. Smyth
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Councillor Kean
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PresentApologies received A
Invitees and Officers: Councillors Hinds and Devine, Russell Bernstein & Linda Sharples (Scrutiny Support), John Spink (Head of
Finance),
Item
Responsible
Member
Officer
Discussion
Action
Required
By
Timescale
John Spink
Regular
Item
Ann
Williams
April
2006
Reports of the Strategic Director of Customer and Support Services
Budget
Monitoring
Revenue
Budget 2005/06
Presented by
John Spink,
Head of Finance
The report was discussed by members highlighting the following issues
 There is a projected underspend this year. Variations were highlighted, in terms of the
original estimate for the 2005/2006 revenue budget, which have been discussed previously.
 Top slicing of the Chief Executives budget relates to corporate initiatives, which require a
transfer of budgets for e.g. Enterprise XP will require transfer of money.
 Community Health & Social Care – the current underspend on salaries was highlighted as a
concern, and reflects problems with recruitment of social workers. Other areas are under
severe budgetary pressure. It was suggested that members should receive a report in April
2006 to outline key issues and areas for the Directorate. Lead members and the Strategic
Director will be requested to attend.
 The forecast DSO’s Surplus can be retained to offset against individual budget spends.
 The 5 Prudential Indicators were highlighted and detailed and are well within sustainable
limits. In all cases the authority is complying within the specified headroom.
 Future Treasury Management performance reports will include detail of the relevant
indicators.
Budget & Audit Scrutiny Committee
Action Sheet – 9th February 2006
Capital Budget
2005/06
Presented by
John Spink,
Head of Finance
There is very little change from the previous report and the budget should broadly balance,
though areas of potential risk were highlighted and considered in detail.
It was suggested that Cabinet be asked to remind Directorates of the need to ensure allocations
are fully spent, as expenditure was below profile.
 Income from office moves –the relocations represent value for money and make more
efficient use of accommodation.
2006/07Revenue
Budget
Proposals
Presented by
John Spink,
Head of Finance
Members discussed the revenue budget proposals for the coming year in light of the resources
available from central government and the planned increase in Council Tax. The report
incorporated the Risk Assessment used to identify the required level of reserves and the
proposed efficiency savings from each Directorate.
 The inclusion of the outcome from the public consultation exercise was discussed, it was
suggested that, where this was highlighted, it should be done in terms of a broad
overview.
 Questions were asked about the receipts from council tax on new dwellings. This figure is
based on half a year’s income from recently built properties, based on 50% occupied.
Members asked if this should be included in the risk assessment, it was agreed that this
was not necessary. As estimates are very cautious and calculated on the minimum
receipts expected.
 Members asked if there was potential to reduce the allocation set aside to meet VER’s but
is was pointed out that fund is also available to meet any redundancies.
Efficiency Proposals
 Each directorate has submitted savings proposals though; further efficiencies are also
required across the board, for example through improved attendance management.
 The authority should be looking at aligning budgets closer to reflect identified priorities
rather than across the board savings as has been done this year. Members accepted due
to time constraints it was not possible this year but next year more time will be available
for planning.
 As the achievability of savings is critical. Members asked should a danger of nonachievement be included in the risk assessment. It was agreed this would be included in
the recommendations to Cabinet.
 Efficiency savings within procurement were discussed. It was agreed that Procurement will
be looked at throughout the year and this should be emphasised within the report for
Regular
Item
John Spink
Scrutiny
Support
done
Scrutiny
Support
May
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Budget & Audit Scrutiny Committee
Action Sheet – 9th February 2006
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cabinet
Members recommended that reference was made to the closeness to the minimum level
of reserves
The UDP inspector states that we have now reached the level of new dwellings. Has this
been taken into account when looking at new income? The additional income of £1 million
will not continue indefinitely but demolition of old buildings and build of new will help with
the tax base
A cautious 2006/2007 Budget estimate will hopefully provide a small surplus but the
projection for the financial year for 2007/08 predicts a quite difficult year, detailed planning
should begin as soon as possible.
Members discussed the summary of savings proposals in detail
 Community Safety – Managers are confident external funding can be achieved and the
restructure will not directly affect the service.
 Local Authority Business Growth Incentive (LABGI) - savings are being put forward but
the consequence is to reduce the international links.
 Marketing. It was to be highlighted in the report to cabinet that efficiency savings should
not be detrimental to the delivery marketing strategy nor affect services to the public; the
appropriate Scrutiny Committee should monitor this.
 Childrens’ Services - Services to schools there are potential problems if customers decide
not to buy services through SLA’s due to price increases. Also the proposed removal of
recurrent underspends from certain budgets in particular the Youth Offending Service may
impact on the spending plans or delivery of the services. - Members wanted more detail
on the underspend and the effect on the level of service. Concerns about this to be raised
in the report to cabinet.
 Broadwalk Training Centre – members expressed concern about the increase in charges,
assurance was given that this allows for customer resistance.
 Salford Consortium – An alternative course has been sourced and will be provided
elsewhere from September 2006.
 Salford Community Leisure – Members wanted re-assurance that the saving proposal
does not lead to reduced opening hours in recreation centres.
 Domiciliary care charges – The committee requested that this issue needs to be dealt with
Scrutiny
Support
done
Peter Kidd
February
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Budget & Audit Scrutiny Committee
Action Sheet – 9th February 2006
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sensitively and would emphasise this in the Cabinet report.
Training – This is still an issue for the authority and is on the work programme for this
Scrutiny Committee’s future consideration.
Casual vacancy rate – the impact to be raised with the Community Health and Social Care
Directorate in April.
Inflation increases to charges have not been automatically built into budgets, it is the
responsibility of individual directorates to consider if increases are necessary and if
services will remain competitive.
Customer and Support Services – It was agreed that not filling the vacant posts identified,
will not affect the service due to the use of better technology.
Environmental Services – Members queried the impact of new houses on services,
reassurance was given that the demands from additional houses can be absorbed by
achievable efficiencies.
Peter Kidd
Overall
 The savings proposals need close monitoring and regular feedback provided to the
Budget & Audit Scrutiny Committee.
 Potential overspends identified and reported with corrective action plans as soon as
possible to the Budget & Audit Scrutiny Committee.
 The use of reserves and the appropriate level of risks are regularly reviewed by this
committee.
 The budget for 2007/08 needs to be considered as soon as possible and any savings are
considered in line with the city council’s pledges and identified priorities and the Budget &
Audit Scrutiny Committee be involved.
Next meeting - March 1st 2006 - Committee Room at the Civic Centre, Swinton
Chairman
Assistant Director
Scrutiny Support Officer
Cllr. D. Jolley
Russell Bernstein
Peter Kidd
0161 787 7259
0161 793 3530
0161 793 3322
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