EXECUTIVE BOARD

23RD JANUARY 2017

 

Council’s Revenue Budget Monitoring Report

Recommendations / key decisions required:

That the Board receives the Budget Monitoring report and considers the budgetary position.

 

That Chief Officers and Heads of Service critically review their budgetary positions and implement appropriate actions to deliver their services within their allocated budgets.

 

Reasons:

To provide the Executive Board with an update on the latest budgetary position as at 31st October 2016, in respect of 2016/2017.

 

Relevant scrutiny committee to be consulted: NA

Exec Board Decision Required                    YES

Council Decision Required                           NO

 

EXECUTIVE BOARD MEMBER PORTFOLIO HOLDER:-  Cllr. David Jenkins

Directorate: Corporate Services

 

Name of Head of Service:

Owen Bowen

 

Report Author:

Owen Bowen

Designations:

 

 

Head of Financial Services

 

 

 

Tel No. 01267 224886

 

E Mail Addresses:

OBowen@carmarthenshire.

gov.uk

 

 


 

EXECUTIVE SUMMARY

EXECUTIVE BOARD

23RD JANUARY 2017

 

 

Council’s Revenue Budget Monitoring Report

 

The revenue budget monitoring reports for the period to 31st October 2016 are attached and indicate that:

 

 

COUNCIL FUND REVENUE ACCOUNT( Appendix A)

Overall, the monitoring report forecasts an end of year overspend of £1,357k on the Authority’s net revenue budget with an overspend at departmental level of £2,833k.

 

 

Chief Executive’s Department

The Chief Executive Department is anticipating an overspend at year end of £348k. In relation to the application of Standby, part year savings have already been identified and work is ongoing with the TIC teams in relation to delivering the full efficiencies identified.

The Regeneration, Policy and Property Division is anticipating an underspend of £31k at year end. There is an anticipated overspend on coroners of £49k and a £41k cost associated with implementing individual electoral registration. There are also  overspends of £24k within the Regeneration Business Unit due to a prior efficiency associated with selling the premises at Nant Y Ci not taking place and Un Sir Gar of £54k due to a shortfall in income. The Policy division is expecting to overspend by £103k due to an unfunded post and an unachievable income target. There is also an unachieved efficiency within marketing and media whilst an ongoing service realignment is reviewed of £33k. These overspends are offset by £327k of staff vacancies in the division and a net underspend of £23k in the Property division due to increased rental income from commercial properties and industrial premises.

The Admin & Law division is expecting a £68k underspend despite a Local Duplicating Centre overspend of £31k due to the decrease in printing across the authority and the corresponding income generation potential being lost. This is largely offset by staff vacancies of £98k.

The People Management & Performance Division is underspent by £96k. This is due to £77k of vacant posts in year along with a saving on Business Support Supplies & Services costs of £31k.

 

Department for Education and Children

The Department for Education and Children is projecting a net overspend of £1,780k at year end.

 

The main adverse budget variations relate to: new school based EVR and redundancy costs £968k; increasing age profile (15-25 year olds) of LAC requiring more costly support for longer £257k; increase in Special Guardianship Orders to keep children with their families £166k, rurality impact on Fostering staff & client travel £91k; School Modernisation pressures relating to short term transport for pupils from closed schools £70k, property decommissioning and cost of sales £152k (which includes £135k NNDR); Respite Units not achieving contribution from LHB £139k; increase in legal fees relating to care proceedings £120k; increased Out of County residential care placements £103k and increased referrals during out of hours £50k.

 

These are partially offset by under-spends across the department in: staff vacancies, secondments and maximising use of grant funding -£201k and the reduction of an Out of County educational placement -£135k.

 

Corporate Services

The Corporate Services Department is anticipating an underspend at year end of £328k.

Both the Financial Services and the Audit, Risk and Procurement Divisions are anticipating  underspends due largely to vacant posts of £230k and £54k respectively .

ICT is anticipating an overspend of £70k due to long term sickness cover.

There is also an anticipated underspend of £47k on audit fees due to a reduction in the number of grants being audited, along with a £34k underspend on subscriptions, £22k on Rent Allowances and  £11k  on our bank charges.

 

Department for Communities

The Department for Communities is forecasting an overspend of £493k for the year.

The Older People / Physical Disabilities division is forecasting an overspend of £321k. Whilst spend has reduced it is not currently meeting targets set last year for efficiency savings for Residential Care and Day Services which are projecting overspends of £718k and £169k respectively. The overspend is offset by staff vacancies of £566k. It is early in the financial year to be clear about the year - end position and the financial impact of demand, reviews of packages of care and income levels.

The Learning Disability / Mental Health Division and Support Services has a projected overspend of £71k. This is due to increased Direct Payments packages of £120k, a reduction in grant receivable for Workchoice £140k,  and the non-achievement of efficiency savings re Grants to Voluntary organisations £90k offset by the impact of the Accommodation and Efficiency strategy in reducing the costs of individual placements and staff vacancies £279k.               

The Housing Services and Public Protection Division is forecasting coming in on budget.

The Leisure Services Division is forecasting an overspend of £100k mainly due to underachievement of income £52k and delay in implementing mobile library services £48k.

 

 

Environment

The department is anticipating an overspend of £540k at year end which will be met from its departmental reserves.

 

The Highways and Transport division is anticipating an £80k overspend for the year overall. Within the division there is a variance of £48k relating to a managed pool car efficiency exercise not being fully achieved. There is also a £44k overspend on Nant y Ci park and ride facility following a decision to withdraw funding. School Transport is expecting to be £51k overspent based on an assessment of demand. Streetworks is expecting to overspend by £20k due to a currently undelivered efficiency. This is offset by an underspend of £42k in Parking Services where income figures are currently predicted to exceed budgeted figures and £46k of vacant posts.

 

The Property Division is anticipating an overall overspend of £162k. An on-going review of Building Maintenance expenditure and income will hopefully reduce the forecasted overspend by the year-end.

The Waste and Environmental division is anticipating an overspend of £124k at year end. This is due to an £81k overspend on cleansing where a proposed efficiency has not been met due to sustained demand on the service. There is also a £70k overspend on green waste due to purchase of wheelie bins prior to start of the service in 2017.This is offset by a £27k underspend on ground maintenance as a result of ongoing efficiency drives in the section.

 

The Business Support & Performance division is overspent by £128k mainly due to the admin review not being implemented to date so the proposed efficiencies have yet to be realised along with temporary additional pay costs to support implementation of the business support review.

 

The Planning Division expects to be overspent by £46k. This relates to £210k variance on Development Management due to a drop in planning fee income.This is offset by £117k of vacant posts and also two posts being charged out to projects as a direct cost resulting in a £48k underspend.

 

Capital Charges

Reduced borrowing/interest savings, offset by Direct Revenue Financing provision.

 

HOUSING REVENUE ACCOUNT ( Appendix B)

 

The HRA is forecasting an underspend of £129k.

 

Supervision and Management costs are forecasted to be underspent by -£23k primarily due to lower staffing costs -£73k through vacancies ,premises costs -£26k and staff travelling -£11k  offset by increased spend on supplies and services £44k and reduction in rechargeable salaries £44k.

 

There is a forecasted underspend on Capital Financing costs -£214k due to a reduction in the MRP payment and interest payments.

 

Reduction in the provision required for debt write-offs , based on arrears levels and forecast movement in arrears to year end -£354k

 

Additional income from forecast HRA balances and other income -£27k

 

Rental income is forecasted to be -£207k higher due to lower level of Void loss. It is anticipated that there will also be an increase in Service charge income of -£80k.

 

Based on current activity data repairs and maintenance is predicted to be £275k over budget primarily on voids to ensure properties are available to rent as quickly as possible.

There has also been an additional direct revenue contribution of £500k to fund the capital programme for major void works .

 

Lists of the main variances are attached to this report.

 

DETAILED REPORT ATTACHED?

 

YES

 

IMPLICATIONS

 

 

I confirm that other than those implications which have been agreed with the appropriate Directors / Heads of Service and are referred to in detail below, there are no other implications associated with this report :

 

Signed:       Owen Bowen                                                           Head of Financial Services                          

 

Policy, Crime & Disorder and Equalities

 

Legal

Finance

ICT

Risk Management Issues

Staffing Implications

Physical Assets 

NONE

NONE

YES

NONE

NONE

NONE

NONE

1. Finance

Council Fund

Overall, the Authority is forecasting an overspend of £1,357k.

 

HRA

The HRA is forecasting that it will be £129k under its approved budget.

 

 

CONSULTATIONS

 

I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below

 

Signed:      Owen Bowen                                                           Head of Financial Services                                               

 

1. Scrutiny Committee – Not applicable

 

2.Local Member(s)  – Not applicable

 

3.Community / Town Council – Not applicable

 

4.Relevant Partners – Not applicable

 

5.Staff Side Representatives and other Organisations – Not applicable

 

 

Section 100D Local Government Act, 1972 – Access to Information

List of Background Papers used in the preparation of this report:

THESE ARE DETAILED BELOW    

Title of Document

File Ref No.

Locations that the papers are available for public inspection

2016/17 Budget

 

Corporate Services Department, County Hall, Carmarthen