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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.


5
APPENDIX B.5
Waverley Borough Council

EXECUTIVE
10TH JANUARY 2006
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Title:
BUDGET MONITORING NOVEMBER 2005
[Wards Affected: All]
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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.
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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.

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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:-

ServiceAmount
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





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.

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Background Papers ( )

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

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CONTACT OFFICER:

Name: Mr B Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk



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