Agenda Item No 9
Resources Board
23 May 2005
Report of the
Assistant Director (Leisure & Facilities)
Atherstone Pool
Revenue Budget 2003/2004 –
Internal Overview & Scrutiny Board
1
Summary
1.1
Members will be asked to consider the revised recommendations for future projects
made by the Internal Overview & Scrutiny Board.
2
Recommendation to the Board
That the recommendations of the Internal Overview & Scrutiny
Board, in respect of major projects, be adopted.
3
Introduction
3.1
The Internal Overview & Scrutiny Board was requested to review the changes to the
2003/2004 Atherstone Pool revenue budget that led to a supplementary estimate of
£98,170 being approved. Members will recall a report to the March meeting of this
Board, which gave that Board’s recommendations arising from its examination of the
situation. A copy of that report is attached as Appendix A although the extensive
appendices have been omitted for convenience.
3.2
The Resources Board considered the recommendations and decided to ask the
Internal Overview & Scrutiny Board to re-consider three specific points. A copy of
the report to the April meeting of the latter Board is attached at Appendix B and once
again, the extensive appendices have been omitted. The three points in question
are set out in that report.
4
Response
4.1
The Internal Overview & Scrutiny Board considered the Resources Board’s request
and concluded the following:
...
...
Bullet point 3 – the Board’s view was that the word “extensive” was still appropriate.
The majority of work is carried out on computers and the production and retention of
records and the ability to search them is so much easier than paper based systems.
Bullet point 5 – after due consideration, the Board now recommends a period of
three months.
Bullet point 9 - the Board accepted the proposal to establish a Member steering
group for all schemes in excess of £1 million.
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4.2
The acceptance of the revised three-month time limit in bullet point five creates a
small conflict with the time period stated in bullet point one, i.e. six months. Both
bullet points address the review of income projections. It is proposed that if the
Internal Overview and Scrutiny Board’s recommendation of three months for bullet
point five is accepted, the time limit in bullet point one is also amended to three
months.
5
Revised Recommendations
5.1
As a result of the further consideration given by the Internal Overview & Scrutiny
Board, the amended list of recommendations now reads as follows, the recent
amendments being underlined:

That for any significant capital project, a review of the cost estimates and any
income projections be made at six monthly intervals.

That estimates include allowances for any additional charges arising from
changes of legislation (e.g. Climate Change Levy) or other known sources as
soon as the need is recognised.

That extensive records be kept of the build-up of estimates including changes
as the scheme progresses.

That the issue of consultant’s estimates for utility costs made at the time of bid
preparation be referred to the Director of Housing and Environmental Services
for review after completion of the contract final account.

That for any large capital project income projections should be re-visited every
three months to take account of any outside influences that may affect income;

That extensive records be kept of the build up of income estimates;

That periodic checks be made to ensure that income is coded against the
correct budget heading;

That for new facilities such as the Crèche other operators are approached to
determine likely levels of usage and potential income; and,

That a Member steering group be established for all schemes in excess of £1
million.
5.2
Members are invited to consider the revisions and decide whether to reject, amend
or accept any of them.
6
Report Implications
6.1
Financial Implications
6.1.1
There will be no cost to the Council in implementing the recommendations from the
Internal Overview & Scrutiny Board.
6.2
Crime and Disorder Implications
6.2.1
None
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6.3
Legal and Human Rights Implications
6.3.1
None
6.4
Sustainability Implications
6.4.1
None
6.5
Personnel Implications
6.5.1
None
6.6
Portfolio Holder, Shadow Portfolio Holder and Ward Members Consultation
6.6.1
The Portfolio Holder and Shadow Portfolio Holder for Service Delivery and CPA,
Councillors Swann and Moore, respectively, have been consulted and their
comments are as follows:
Cllr Swann “As a member of the Internal Overview and Scrutiny Board and also the
Task and Finish Group that investigated these matters, I believe that the
recommendation contained in this report should be endorsed be the Resources
Board.”
7
Risk Management Implications
7.1
Failure to implement the recommendations could lead to similar problems on large
projects in the future.
The Contact Officer for this report is Ian Sarson (719293).
Background Papers
Local Government Act 1972 Section 100D, as substituted by the Local Government Act, 2000 Section 97
Background Paper No
Author
Nature of Background Paper
Date
1
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Resources Board Report
2 Dec
2003
10 Feb
2004
5 April
2004
7 March
2005
5 April
2005
2
3
4
5
Internal Overview & Scrutiny
Board Report
Internal Overview & Scrutiny
Board Report
Resources Board Report
Internal Overview & Scrutiny
Board Report
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Appendix A
Agenda Item No
Resources Board
7 March 2005
Report of the
Assistant Director (Leisure & Facilities)
Atherstone Pool
Revenue Budget 2003/2004
Report from Internal Overview and
Scrutiny Board
1
Summary
1.1
Members will be asked to adopt the recommendations of the Internal Overview and
Scrutiny Board for future major projects.
2
Recommendation to the Board
That the recommendations of the Internal Overview and Scrutiny
Board in respect of major projects be adopted.
3
Introduction
3.1
In December 2003 the Board received a report on changes to the Atherstone Pool
Revenue Budget in the financial year 2003/2004 that led to the approval of a
supplementary estimate of £98,170. The report gave details of the changes that
gave rise to the need for the supplementary estimate and the Board resolved to ask
the Internal Overview and Scrutiny Board to look at the issues in detail and report
back.
3.2
At its meeting in February 2004 the Internal Overview and Scrutiny Board resolved to
establish a Task & Finish Group comprising Councillors Edgington, Meredith, Swann,
Sweet and chaired by Councillor Mrs. Lea. The Task & Finish Group has met on
four occasions and has reviewed the income and expenditure elements of the
revenue budget and the process of compiling the estimate for the Lottery Bid
submission.
3.3
The Task & Finish Group produced a series of recommendations about the revenue
implications of large capital schemes and these were considered by the Internal
Overview and Scrutiny Board at its meeting on 11 January 2005. The Board
accepted the recommendations and resolved to request that the Resources Board
give due consideration to the recommendations.
4
2003/2004 Financial Out Turn
4.1
During the summer of 2003 the projected out-turn of the Pool revenue budget was
re-calculated and it was determined that a supplementary estimate of £98,170 was
needed to cover the increased cost of operating the facility. The supplementary
estimate was approved in December 2003. The table set out overleaf shows the
headline movement in the costs of the revenue budget.
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Full Year Budget
Full Year Budget
Original
2003/2004
Revised
2003/2004
(1)
(2)
CODE
DESCRIPTION
Actual
2003/2004
Original
2004/2005
(3)
(4)
Percentage
Increase
(2) to (4)
EXPENDITURE
268,240
128,340
57,500
1,290
295,090
163,110
59,730
840
EMPLOYEE EXPENSES
PREMISE RELATED EXP.
SUPPLIES & SERVICES
TRANSPORT
296,444
154,204
51,980
653
308,400
167,850
60,700
850
4.01%
2.91%
1.62%
1.19%
455,370
520,180
GROSS EXPENDITURE
503,281
537,800
3.39%
INCOME
400,240
370,000
GROSS INCOME
378,978
385,000
4.05%
55,130
148,770
NET CONTROLLABLE EXPENDITURE
124,303
152,800
1.74%
60,800
57,250
57,230
75,410
34.83%
213,340
225,890
CAPITAL
224,789
221,491
-1.95%
329,270
431,910
NET EXPENDITURE
406,323
449,701
4.10%
98,170
427,440
CENTRAL SUPPORT
Bid for extra resources
4.2
The table shows in column (1) the original budget for 2003/2004, which was based
on the bid submission. The net expenditure for operating the Pool was estimated to
be £329,270. The revised cost and income estimates led to a supplementary
estimate of £98,170 which, when added to the original cost amounted to £427,440 to
operate the Pool.
4.3
Column (2) shows the revised estimate for 2003/2004, which took into account the
increased costs and reduction in income that led to the supplementary estimate.
The overall total was £431,910 including some salary costs that were properly reallocated to the Pool from the other leisure centres.
4.4
Column (3) sets out the actual cost of operating the Pool in 2003/2004. Members
will note that the out-turn figure of £406,323 is £25,587 less that the revised figure of
£431,910 in column (2). The actual cost of operating the Pool in 2003/2004 was
£72,583 higher than the original budget.
4.5
The out-turn figure of £406,323 can be adjusted to remove the effects of Single
Status pay awards and movement in Central Support and Capital Charges (none of
which were included in the £98,170 supplementary estimate). If those effects are
removed, approximately £47,000 of the approved supplementary estimate of
£98,170 was required.
4.5
For Members’ information the original budget for the current financial year 2004/2005
is set out in Column (4) as a comparison. The net expenditure for that year is
projected to be £449,701, which is some £17,791 or 4.1% more than the revised
estimate for 2003/2004 (column 2). By controlling costs as in 2003/2004, it is likely
that the net expenditure will be reduced (see column (3)) above.
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5
The Recommendations of the Internal Overview and Scrutiny Board
5.1
Attached to this report, as Appendix A, is the report to Internal Overview and Scrutiny
Board on 11 January 2005 and the minutes of the Task & Finish Group.
5.2
The recommendations are as follows:

That for any significant capital project, a review of the cost estimates and any
income projections be made at six monthly intervals.

That estimates include allowances for any additional charges arising from
changes of legislation (e.g. Climate Change Levy) or other known sources as
soon as the need is recognised.

That extensive records be kept of the build-up of estimates including changes as
the scheme progresses.

That the issue of consultant’s estimates for utility costs made at the time of bid
preparation be referred to the Director of Housing and Environmental Services
for review after completion of the contract final account.

That for any large capital project income projections should be re-visited every
six months to take account of any outside influences that may affect income;

That extensive records be kept of the build up of income estimates;

That periodic checks be made to ensure that income is coded against the correct
budget heading;

That for new facilities such as the Crèche other operators are approached to
determine likely levels of usage and potential income; and,

That for all future major projects regular progress reports should be submitted to
the Internal Overview and Scrutiny Board.
5.3
The Board is asked to adopt the recommendations after due consideration of each
point.
6
Report Implications
6.1
Financial Implications
6.1.1
There will be no cost in implementing the recommendations from the Internal
Overview and Scrutiny Board.
6.2
Crime and Disorder Implications
6.2.1
None
6.3
Legal and Human Rights Implications
6.3.1
None
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6.4
Sustainability Implications
6.4.1
None
6.5
Personnel Implications
6.5.1
None
6.6
Portfolio Holder, Shadow Portfolio Holder and Ward Members Consultation
6.6.1
The Portfolio Holder and Shadow Portfolio Holder for Service Delivery and CPA,
Councillors Swann and Moore, respectively, have been consulted and their
comments are as follows:
Cllr Swann - “As a member of both the Internal Overview and Scrutiny Board and the
Atherstone Pool Budget Task & Finish Group, I would suggest that, following due
consideration by the Resources Board, the recommendations presented in respect of
any future major projects undertaken by the Authority be adopted”.
6.7
Risk Management Implications
6.7.1
Failure to implement the recommendations could lead to similar problems on large
projects in the future.
The Contact Officer for this report is Ian Sarson (719293).
Background Papers
Local Government Act 1972 Section 100D, as substituted by the Local Government Act, 2000 Section 97
Background Paper No
Author
Nature of Background Paper
Date
1
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Assistant Director
(Leisure & Facilities)
Resources Board Report
2 Dec
2003
10 Feb
2004
5 April
2004
2
3
Internal Overview and
Scrutiny Board Report
Internal Overview and
Scrutiny Board Report
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Appendix B
Agenda Item No 7
Internal Overview & Scrutiny
Board
5 April 2005
Report of the
Assistant Director (Leisure & Facilities)
Atherstone Pool
Revenue Budget 2003/2004
Report To Resources Board
1
Summary
1.1
Members will be asked to consider changes to the recommendations of the Task &
Finish Group proposed by the Resources Board.
2
Recommendation to the Board
That Members determine whether the changes proposed by the
Resources Board should be accepted, modified or rejected.
3
Introduction
3.4
The Board will recall the work done by the Atherstone Pool Revenue Budget Task &
Finish Group. Recommendations to improve procedures were made arising from an
investigation into the changes in that budget following the submission of the Lottery
Bid. This Board accepted the Task & Finish Group’s recommendations and resolved
that the recommendations should be forwarded to the Resources Board for adoption.
3.5
Attached, as an appendix, is the subsequent report to Resources Board on 7 March
2005. Following due consideration of the report, the Board resolved:
That the Internal Overview and Scrutiny Board be invited to
consider the following amendments to the recommendations set
out in paragraph 5.2 of the report of the Assistant Director
(Leisure and Facilities):Bullet point 3 - that the word "extensive" be replaced with
"adequate";
Bullet point 5 - that the Board be asked to consider a period of
less than six months; and
That bullet point 9 be replaced with - That a Member Steering
Group be established for all schemes in excess of £1 million.
3.6
Members are requested therefore, to consider the proposed amendments of the
Resources Board.
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4
Proposed Amendments
4.1
In bullet point 3 it is proposed that the word “extensive” be replaced with “adequate”.
Resources Board was keen to ensure that none of the recommendations would
create an additional workload that may be considered unproductive or unnecessary.
The Board, therefore, considered that it would be appropriate to keep records that
were adequate rather than too detailed.
4.2
For bullet point 5, the Board was concerned that six months was too long a period
between re-visits to income projections in respect external influences. This Board is
asked to re-consider the period.
4.3
For future major projects costing over £1m, the Resources Board considered that it
was important that a Member steering group was established to oversee the project.
It was suggested that bullet point 9 be replaced by this requirement. This Board is
invited to consider the suggestion.
4.4
In considering the proposals, Members may wish to endorse the original
recommendation, accept the proposed changes or substitute further
recommendations.
5
Report Implications
5.1
Financial Implications
5.1.1
There will be no costs arising from the proposed changes.
5.2
Crime and Disorder Implications
5.2.1
None
5.3
Legal and Human Rights Implications
5.3.1
None
5.4
Sustainability Implications
5.4.1
None
5.5
Personnel Implications
5.5.1
None
5.6
Portfolio Holder, Shadow Portfolio Holder and Ward Members Consultation
5.6.1
None
5.7
Risk Management Implications
5.7.1
Failure to implement the recommendations could lead to similar problems on large
projects in the future.
The Contact Officer for this report is Ian Sarson (719293).
Background Papers
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Local Government Act 1972 Section 100D, as substituted by the Local Government Act, 2000 Section 97
Background Paper No
Author
Nature of Background Paper
Date
1
Assistant Director
(Leisure & Facilities)
Resources Board Report
7/3/05
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