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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 30/09/2003
Budget Monitoring August 2003



Summary & Purpose
This report provides details of the expenditure and income position to the end of August 2003 compared to budget for the General Fund and the Housing Revenue Account.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
N/A
N/A
N/A
N/A
N/A
N/A
N/A



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E-Government implications:

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

Resource and legal implications:

This report shows the budget monitoring position to the end of August 2003 for the General Fund and the Housing Revenue Account. It monitors the progress of revenue expenditure and income, shows the latest position regarding the target reductions included within the Budget and projects the likely year-end position.
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General Fund

1. Budget Monitoring for the period 1st April 2003 to 31st August 2003 has highlighted a potential net overspend compared to budget of some 323,000. This is before taking into account the Managed Reductions Target of 120,000 built into the 2003/04 Budget. Therefore, the new target as at the end of August has risen to 443,000.

2. The main elements of this overspend can be attributed to:-
- Insurances 78,000 – increased premiums reflecting market conditions.
- Audit Commission Fees 60,000 – the Audit Commission have changed their policy for charging from charging in arrears to charging in the year under review, creating a one-off overspend in this year.
- Interest Rates – the overall forecast loss in income arising from a reduction in interest rates from 4% to 3.5% amounts to 90,000.
- Land Charges – a net loss of 55,000 is anticipated as a result of a reduction in the number of searches.
- Planning Fee income - a loss in income of 30,000 is reported as a result of a shortfall in income in the first two months of the year, subsequent months are on target.

3. Inflation Provision

4. Supplementary Estimates

The approved Supplementary Estimates are shown below:-
Partnership Funding Officer
36,000
Executive 10/12/02
Partnership Funding – Revenue Budget
2,500
Executive 10/12/02
Liquor Licensing Admin Support
12,000
Executive 23/06/03
Emergency Planning – rest centre training
5,000
Executive 01/04/03
Waste Recycling
20,000
Council 15/04/03
WRVS – Meals on Wheels
3,500
Executive 21/07/03
Total
79,000
5. Use of Balances

Housing Revenue Account

6. The Budget Monitoring process has not identified any significant variations to the budget, as at the end of August.

Conclusion

7. The projected overspend arises from factors largely outside of the Council’s control including lower interest rates, reduced income and unavoidable costs, as summarised in paragraph 2 above. It should be noted that experience has shown budget monitoring to project an overspend at the mid-year period, which subsequently tends to reduce and by the year-end an underspend usually occurs. However, this year the projected overspend is significantly higher than in previous years and at this stage it is possible that it will not be eliminated by the year-end. 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 31st August 2003.
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Background Papers (DoF)

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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