AUDIT COMMITTEE
22 MARCH 2017
AGENDA ITEM 8
Subject:
REVENUE BUDGET MONITORING
Report by:
DIRECTOR OF FINANCIAL SERVICES
Enquiries contact:
Phil Reeves, Tel (01245) 606562, Fax (01245) 606476
Email [email protected]
Purpose
To compare the latest budget forecast by Directors as at February 2017 with the
Original budget for 2016/17.
Recommendation(s)
1.
It is recommended that the report be noted.
Corporate Implications
Legal:
Financial:
Personnel:
Risk Management:
Equalities and Diversity:
Health and Safety:
IT:
Other:
None
To be incorporated in the revised budgets
None
None
None
None
None
None
Consultees:
All directors and cost centre managers
1
Policies and Strategies
The report takes into account the following policies and strategies of the Council:
Revenue budget guidelines
Corporate Plan Priorities
The report relates to the following priorities in the Corporate Plan
Attracting investment and delivering
infrastructure
Facilitating suitable housing for local needs
Providing high quality public spaces
Promoting a more sustainable environment
Promoting healthier and more active lives
Enhancing participation in cultural activities
2
1.
Background
1.1
The Council has a long-established process of preparing formal monitoring reports
comparing its forecast expenditure and income with the approved estimate and
reporting these to Management Team on a regular basis. These reports are also
supplied to all Cabinet Members.
1.2
The reports produced have evolved over several years and are designed to aid
understanding and interpretation of the main financial information presented to the
Organisation. The reports enable each Cabinet Member to view their areas of
responsibility and to gain explanations of any variances from their Directors. The
information provided to Cabinet Members and Directors on Revenue Monitoring is
shown in summary form on the attached statements.
2.
Revenue Monitoring
2.1
The statement shows the Original budget as agreed by Council in February 2016
followed by the Original budget amended for approved variations. This is followed
by the current projection (as at February 2017). The final column shows the
variance between the Projection and the Original budget amended for approved
variations.
2.2
Each service line on the summary is supported by further analysis on the following
sheet.
3
2.3
The projections in the statement are as at February 2017, and show that there is
currently a total potential efficiency saving against the original budget, for 2016/17,
of £1,448,000 or 9.4% at the Net Expenditure level.
The major variations leading to the potential efficiency savings are within the
uncontrollable expenditure. The safety net payment within the Business Rate
Retention Scheme is not expected to be made resulting in a favourably variation of
£234,000. In addition to this, a £750,000 windfall is expected due to the reduction
in appeals following the revaluation for the 2017 list. However further movement is
anticipated by the end of the financial year.
Major Variations
£'000
Controllable Service Variations
Recycling agency staff spend higher due to long term
sickness
Vehicle maintenance costs mostly due to ageing fleet
Lower fuel usage than budgeted
Waterside Fees not expected to be paid this financial year
Favourable car parks incomes than budgeted
Favourable planning income than budgeted
Other
Uncontrollable Variations
Temporary accommodation subsidy loss
Higher cash balances resulting in favourable interest income
The safety net payment for Business Rate Retention Scheme
not expected to be made
Reduction in NDR appeals following the revaluation 2017 list
being issued and further movement is anticipated by the end
of the financial year
140
193
-96
-140
-120
-105
-134
-262
-150
-52
-234
-750
-1186
Total Variations from Net Expenditure
-1448
2.4
If subsequent monitoring information is available, the Director of Financial Services
will provide a verbal update at the meeting.
2.5
The reports have been amended in recent months and are intended to make
monitoring easier to follow, however, if additional information is required in the
future, Accountancy will see if this can be accommodated.
3.
Conclusion
3.1
The reports have been redesigned to show each service more clearly with the
results feeding into an overall summary and further adjustments will be made if
required.
List of Appendices
Nil.
Background Papers
Nil.
4
Original Budget
Original Budget incl. Approved
Variations
Revenue Monitoring (February 2017)
£'000
Chief Executive
Corporate Management & DRM
Corporate Services
£'000
Projection
Variation to
Original Budget
incl. approved
variations
£'000
£'000
218
219
219
0
-400
-575
-575
0
5,545
6,245
6,186
-59
-870
-607
-880
-273
492
508
639
131
1,371
1,464
1,352
-112
Financial Services
Housing Benefits, Revenues and Financial Support Services
Strategic Housing
Planning & Building Control Services
Public Places
Parks & Green Spaces
2,658
2,808
2,867
59
Recycling & Waste Services
4,473
4,458
4,756
298
-22
Public Health & Protection Services
Cemetery & Crematorium
1,635
1,587
1,565
-1,235
-1,256
-1,251
5
1,771
1,804
1,742
-62
-4,658
-4,469
-4,635
-166
1,042
555
494
-61
12,042
12,741
12,479
-262
Building Services
Community Services
Support, Parking & Building Services
Leisure & Cultural Services
Controllable Service Expenditure
Other General Fund Items
-Temporary Accommodation Subsidy Loss
1,242
850
700
-150
-580
-638
-690
-52
8
69
69
0
-2,345
-2,345
-2,345
0
0
- Interest Income
- Other budgets, recharges & capital charges
- Other Grants (including New Homes Bonus & CT Freeze Grant)
- Debt Repayment Costs (incl Finance Leases)
238
238
238
- Use of Carry Forward Reserves
-98
-299
-299
0
4,542
3,881
2,897
-984
15,049
14,497
13,049
-1,448
392
944
2,392
1,448
15,441
15,441
15,441
0
15,441
15,441
15,441
0
- Contributions to / (use) of Earmarked reserves
Net Expenditure
Contribution to / (from) Balances
Budget Requirement
…..
5
…..
…..
…..
<-Financial Services->
Variation statement - Projection Vs Live Budget
Chief
Executive
CM &
DRM
Corporate
Services
£'000
£'000
£'000
HB,
Revenues &
Financial
Support
Services
£'000
<--------------------------Public Places-------------------------->
Strategic
Housing
Planning
& Building
Control
Services
Parks &
Green
Spaces
£'000
£'000
£'000
Recycling & Public Health
Waste
& Protection
Services
Services
£'000
£'000
<-Community Services->
Cemetery &
Crematorium
Building
Services
Support,
Parking &
Building
Services
Leisure &
Cultural
Services
Other General
Fund Items
TOTAL
£'000
£'000
£'000
£'000
£'000
£'000
Related
Variances
Employee Variations
Staffing - vacancies, casuals, agency etc
Other
Total Employees Variation
0
0
-17
18
-52
-5
5
3
-17
227
-1
-79
4
-18
8
1
14
6
1
-57
5
3
-17
226
-79
4
-18
9
20
57
34
37
13
-6
-42
0
78
19
0
97
Other Expenditure Variations
13
Council wide maintenance costs
Grounds maintenance contractors
Park & Ride - work done on behalf of ECC
Utility costs less than expected
Benefit Cap changes impacting slower than expected
Consultancy costs and fees
Software costs funded by DWP grants
PSL expenditure
Business rates
Fuel- Recycling and Waste
Community Safety expenditure partially offset by income
Higher level of vehicle repairs than budgeted
Bed & Breakfast expenditure
Other
Other Total Controllable Expenditure Variance
72
34
9
-43
-50
-57
18
30
-79
-96
53
116
422
73
9
-22
-50
-97
18
-21
40
30
-7
-46
-26
-96
53
0
0
15
101
-37
10
422
-22
-60
24
43
56
14
11
11
23
-37
-113
430
-20
84
85
109
27
-17
-22
-24
0
(1)
(2)
(3)
(4)
502
Income Variations
-105
Planning Applications/PPA & Preliminary Enquiry Income
PSL income
Park & Ride - Income from ECC for work done on their behalf
Car parks fine income
Car parks income
DWP grant funding software updates
Sports centre fee income
Hylands income (Weddings, Corp Hire, Private Hire)
Community Safety income partially offsetting expenditure
Cemetery & Crematorium income
Bed & Breakfast income
Recycling sales & credits
Meeting room income
-105
108
-9
-14
-120
-18
-29
-32
-56
-26
-422
22
-20
108
-9
-14
-120
-18
-29
-32
-56
-26
-422
22
-20
Property Services recoverable fees and charges
Other
-23
-73
-12
10
10
-8
-35
4
-7
-10
4
-73
-67
Income Variation Total
0
0
-23
-103
-304
-95
-8
-13
-52
-26
-27
-153
-57
0
-861
Total Controllable Expenditure Variance
0
0
-59
-273
131
-112
59
298
-22
5
-62
-166
-61
0
-262
-150
-150
-234
-234
-750
-52
-750
-52
Other Variations
Temporary accommodation subsidy loss
Safety net payment for Business Rate Retention Scheme not expected to be
made
Reduction in NDR appeals following the revaluation 2017 list being issued and
further movement is anticipated by the end of the financial year
Better than projected interest due to higher cash flow than expected
Other Variations
0
0
0
0
0
0
0
0
0
0
0
0
0
-1,186
-1,186
Net Variations
0
0
-59
-273
131
-112
59
298
-22
5
-62
-166
-61
-1,186
-1,448
Partial Contra
Full Contra
* Related Contra's are listed in the related variances column
6
(1)
(2)
(3)
(4)