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ITEM CG13

EXECUTIVE – 17 FEBRUARY 2004

FINANCIAL MONITORING

Report by Head of Finance

 

Introduction

  1. The report sets out the budget monitoring position to the end of December 2003. Individual reports from each of the service directorates are in the Members’ Resource Centre. The position for each Directorate is considered below:

    2. Learning & Culture

  2. The forecast outturn position for Learning & Culture shows a forecast deficit carry forward of £2.641m compared to £2.616m reported in December. There are no significant issues to report within the variations.

  3. The deficits on closed city schools has been revised downwards to £0.7m, from an original estimate of £1m. The change of £0.3m falls back to balances.

    4. Social & Health Care

  4. The forecast outturn position for Social & Health Care shows a forecast carry forward of £0.869m compared to £1.017m reported in December, a variation of £0.148m.

  5. The main variations are: firstly, an increase in carry forwards on Older People of £0.9m mainly in respect of £0.5m on delayed discharge funding and £0.3m on Care Manager’s purchasing budget now chargeable against grant; and secondly, under Across Client Groups the income received under Fairer Charging has been reassessed and is now forecast to reduce by £0.850m since the last report.

  6. The under spend on the Pooled Budget is now forecast as £0.361m compared to £0.712m reported in December. The variation reflects mainly on increase in placements.

  7. There is a further emerging situation relating to an ongoing review of the debtors/income in the Directorate. This may result in a reduction in forecast income. This will be reported to the Executive as soon as we have the information.

    8. Environment & Economy

  8. The forecast outturn position for Environment & Economy shows a forecast carryforward of £1.220m compared to £0.594m reported in January - a variation of £0.626m. The main changes are increased underspendings on Public Transport (£0.162m) and Waste Management (£0.600m) and reflect mostly variations in the timing of projects.

    9. Community Safety

  9. The forecast outturn position for Community Safety shows a forecast carryforward of £0.049m compared to £0.099m reported in January. This reflects a projected deficit of £0.050m on the Youth Offending Team Budget, which it is anticipated can be met from additional grant funding anticipated in 2005/06.

  10. There is a projected increase in the underspending of £0.050m on the Retained Fire-fighters budget and a reduced overspend of £0.100m on the Firefighters Pension budget. These sums will be returned to balances.

    11. Corporate Governance

  11. The forecast outturn position for Corporate Governance shows a forecast carryforward of £1.297m compared to £0.630m as reported in January a variation of £0.667m. The main change is an estimated carry forward of £0.650m on Implementing Electronic Government. This carry forward is committed to development of One- Stop Shops and Customer Relationship Management.

  12. The Magistrates Courts Service is now expected to overspend by £0.090m, an increase of £0.010m since the last report. This will be charged to balances.
  13. The external Audit fee is forecast to be £0.021m less than previously estimated and is added back to balances.

    14. Job Evaluation

  14. Learning & Culture have undertaken detailed work on the costs of Job Evaluation in the Directorate. Additional costs of £0.424m have been identified In excess of the budget provision. This cost will be a charge against balances. It is provided for in the proposed budget next year.

    15. Rates

  15. The Council has now received £0.212m in respect of rate refunds for earlier years, as a result of valuation appeals. This is added to balances.

    16. Balances

  16. The revised position for revenue balances is shown below:

    		17.

     

    £m

     

    County Fund Balance as estimated in January

    Adjustment on Retained Firefighters Budget

    Adjustment on Firefighters Pension Budget

    Additional Job Evaluation Costs – Learning & Culture

    Adjustment on External Audit fee

    Adjustment on closed City Schools

    Rate Refunds

    Adjustment on Magistrates Courts

     

    6.860

    0.050

    0.100

     

    -0.424

    0.021

    0.300

    0.212

    -0.010

     

    Revised Estimated County Fund Balance at 31 March 2004

     

     

    7.109

     

    Directorate Carry Forward Reserves

  17. The forecast outturn position for the Directorate CarryForward Reserves as set out in this report is summarised at Annex 1 (download as .rtf file).The latest forecast shows a carryforward of £0.794m compared to a deficit carry forward of £0.276m as reported in January.

    18. Consolidated Position

  18. The consolidated position on the Council’s key reserves is shown below:

    19.  

     

    £m

     

    Revenue Balances

    Add Directorate Carry Forward Reserves

    Less City Schools Planned Transitional Costs

    Total

     

    7.109

    0.794

    -4.125

    3.778

    Staffing

  19. A table showing the number of staff employed by the County Council in December is attached at Annex 2 (download as .rtf file).for information as compiled by the Head of County Personnel.

    20. Conclusion

  20. The report shows an improvement in the Council’s overall key reserves since the last report; mainly in the Directorate carry forward reserves. The balance on the carry forward reserves represents in part timing delays in delivering projects. Directorates are entitled to carry forward these balances to spend in the next financial year. As usual we will scrutinise closely the carry forward reserves as part of the closedown process.

    21. RECOMMENDATION

  21. The Executive is RECOMMENDED to note the report.

CHRIS GRAY
Head of Finance

Contact Officer: Mike Petty Tel (01865) 815622

Background Papers: Individual Programme Area Reports

February 2004

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