BUDGET MONITORING NOVEMBER 2005 : Executive on 10/01/2006

Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 10/01/2006
BUDGET MONITORING NOVEMBER 2005

Summary & Purpose

This report provides details of the expenditure and income position to the end of November 2005 compared with budget for the General Fund and the Housing Revenue Account.

APPENDIX B.5

Waverley Borough Council

EXECUTIVE
10TH JANUARY 2006

_________________________________________________________________________
Title:

BUDGET MONITORING NOVEMBER 2005

[Wards Affected: All]

_________________________________________________________________________
Summary and purpose:

This report provides details of the expenditure and income position to the end of November 2005 compared with budget for the General Fund and the Housing Revenue Account.
_________________________________________________________________________
Environmental implications:

There are no direct environmental implications relating to this report.

Social / community implications:

There are no direct social/community implications relating to this report.

E-Government implications:

There are no direct E-Government implications relating to this report.

Resource and legal implications:

This report shows the budget monitoring position to the end of November 2005 for the General Fund and the Housing Revenue Account. It monitors the progress of revenue expenditure and income and projects the likely year-end position.

_________________________________________________________________________

General Fund

1. Budget Monitoring for the period 1st April 2005 to 30th November 2005 identifies an underspend of £62,430. This includes a saving of £125,000 arising from the new contracts commencing on 1st November 2005.

2. This underspend is in excess of the projected underspend identified from the outturn position for 2004-05, which indicated an underspend in the region of £100,000 for 2005-06 to be likely. However, there is still potential for a more substantial underspend to be achieved by the year-end. Waste recycling volumes are currently increasing and the Officer Manpower savings target could be exceeded by the year-end. Also significant prior-year adjustments could arise particularly in the area of Housing Benefits, which was subject to a major funding change in 2004-05, and is currently subject to external audit.

3. The main variations from Budget are shown below:-

Major variations to Budget

Service£Reason

Additional Expenditure

Democratic Representation6,800Printing Cttee reports/Night Porter/Review of CAB

Corporate Management10,000Additional Audit Fees - Best Value & Grant claims

Other GF Housing Services10,000Increased activity Printing, Consultancy

Community Care10,000Telemedicine Project 05/06 – no budget provision

Cost of Collection – Council Tax7,500Legal Fees and Printing

Development Control19,900Legal Fees – four further Inquiries/VAT OS fees

Inspection & Prev Measures13,000Air Quality Equipment, Technical Indices

Office Accommodation7,350Continued use of CAB until November 2005

Office Expenses8,500Books & Publications approx £4,000 Legal Library, Telephones £3,000 increased calls

Loss in income

Interest & Finance Expenses15,000Net loss from lower interest rates outweighing higher balances

Land Charges65,250Unlikely to reach budget income - lower numbers

Development Control120,000Unlikely to reach budget income - drop in applications

Animal Control13,000Unlikely to reach budget income - fewer Wasps

Farnham Sports Centre9,400Loss in income share based on current level

Overspends315,700

Savings

Waverley Training Services-9,060Net underspend

Community Care-7,750Exercise and Mobility saving from staffing budget

Environment Contract-125,000Contract savings

Additional Income

Licensing-120,000Additional income from 2003 Licensing Act

Benefits-42,270Additional Administration Grant and SAFE

Building Control-30,000Additional Fee income

Waste Recycling-50,000Increased Recycling Credit

The Edge Sports Centre-12,900UBR recovery from SCC less reduced income share

Underspends-396,980

Net Other Variations18,850

Anticipated Underspend-£62,430

Officer ManpowerThe current projection identifies savings of £293,410, it is likely that the target will be achieved by the year-end.

Supplementary Estimates

4. The approved Supplementary Estimates are shown below:-

Service	Amount

Waste Collection Service £170,000, to be offset by savings in the contract cost	£170,000	Executive 11th October 2005
District Councils’ Special Interest Group	£2,000	Executive 11th October 2005
Godalming Leisure Centre – revenue grant to JSJ Trust	£44,000	Executive 8th November 2005
Civil Contingencies Act 2004	£30,000	Executive 8th November 2005

Inflation Provision

5. The Budget includes an Inflation Provision of £500,000, of which some £296,000 has been allocated. This mainly covers the inflation on the Arkeco contract costs to the end of November 2005. The remainder of the Inflation Provision includes provision for the 2005/06 element of the pay award, leaving a potential unallocated balance of £100,000.

6. Underspend Target

At the Executive of the 8th November 2005 Members suggested the underspend target be increased to £125,000 to align with savings on the waste contract. It is extremely likely this will be exceeded by the year-end as indicated in paragraph 2.

Use of Balances

7. The Budget did not allow for a contribution from the General Fund working balance. The effect of the underspend identified to date, the Supplementary Estimates of £246,000 and the Revenue Carry Forward of £95,250, will be to reduce the working balance at the year-end by £278,820, as shown below.

Summary

Budget Monitoring to end of November (Underspend)-62,430

Supplementary Estimates246,000

Revenue Carry Forward95,250

Waverley Spending Requirement12,500,000

Forecast Outturn Position£12,778,820

Budgeted Use of Working Balance£0

Projected Use of Working Balance£278,820

The use of the Revenue Reserve Fund is budgeted at £320,000, with a further £330,000 by way of abatement of capital repayments made from the General Fund.

Housing Revenue Account

8. Budget Monitoring for the period 1st April 2005 to 30th November 2005 has identified a net underspend of £30,000.

This is from:

Major variations to Budget

Service£Reason

Additional Income

Interest on Balances-30,000Improved opening balance and cash-flow

Anticipated Underspend-£30,000

Inflation Provision

9. The budget includes an Inflation Provision of £40,260, of which £5,560 has been allocated.

Use of Balances

10. The use of balances is budgeted at £40,840 from the Housing Revenue Account Working Balances.

Conclusion

An overall underspend of £62,430 from the approved General Fund Budget has been identified, this includes £125,000 arising from the new contracts commencing on 1st November 2005. At the previous Executive Members suggested that an underspend target of £125,000 should be set.

There is good potential for the underspend to exceed the target of £125,000 as waste recycling volumes are currently increasing, some £100,000 of the inflation provision remains unallocated, final payments to Arkeco have yet to be resolved and the Officer Manpower savings target could be exceeded by the year-end. Also significant prior-year adjustments are likely to arise particularly in the area of Housing Benefits, which is currently subject to external audit. Subject to confirmation that the Accounts have been signed off, the prior-year adjustments will be in the region of £300,000.

The Chief Officer Group will continue to monitor the position closely and take action where appropriate to contain budgets.

Recommendation

It is recommended that the report be received being the financial position to the 30th November 2005.

________________________________________________________________________
Background Papers ( )

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

________________________________________________________________________

CONTACT OFFICER:

Name: Mr B Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk

comms/exec/05-06/243

46928