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ITEM EX21A

EXECUTIVE – 11 DECEMBER 2001

FINANCIAL MONITORING UPDATE

Report by Director for Business Support & County Treasurer and
Director of Environmental Services

Background

1. This report is the second monitoring report to the Executive and brings together the latest known estimates of the Committee Carry Forward Reserves and the County Fund Balances at 31 March 2002.
2. The table below sets out the position of the Committee Carry forward Reserves as being reported to Scrutiny Committees, and the County Fund Balance.

	Committee Carry Forward Reserves				Estimate at 31March 2002
	Balance				Balance		Balance	Totals
	01-Apr-01				27-Nov-01		11-Dec-01
	£,000				£,000		£,000	£,000
	-58	**	Education *		-1,718		-1,531
	-288	**	Social Services		-3,315		-3,168
	1544		Environmental		833		833
	263		Public Protection		75		75
	299	**	Cultural Services		40		68
	1453	**	Operations		210		447
	3213				-3,875		-3,276
	3213		Balance on Reserves		-3,875			-3,276
			Other Issues
			Building Repairs & Maintenance				-1,000
			Broadband				-821
								-1,821
			Projected Deficit on Carry Forward Reserve					-5,097
			County Fund Balance					2,972
			Overall Deficit					-2,125
	Footnotes
		*	Includes City Schools
		**	Not yet finalised

 

 

3. The overall deficit above can be covered in the short term by the balance on the capital reserve as shown below:

£,000

Estimated Balance at 31 March 2002 (October Report) 5,904

Less Wallingford School Capital Contribution -3,000

Less Bayswater School Project Appraisal Impact -480

Eimated balance at 31 March 2002 2,424

4. There is sufficient flexibility between capital and revenue to switch resources on a temporary basis. This will require more detailed consideration when we compile the end of year accounts.

Movement since November Report

5. The position on some committees has improved since November as the financial monitoring reports for Scrutiny Committees have been prepared. It is anticipated that there will be further improvements in the end of year position on committee carry forward reserves.
6. However there are two further issues which need to be taken into account. The Council on 11 December is considering whether to approve the installation of a Broadband Network across the County. If this is approved there are likely to be costs of £0.821m this financial year. We hope to get some external contributions towards this (say £0.200m) but for prudence the higher figure is shown.
7. There is a possibility of charging part of the Broadband installation costs to the Capital Programme (£0.7m), which would help to safeguard balances. It is too early to assess whether these costs can be met from the Capital Programme and the Executive are recommended to make no decision on this until the Budget and Medium Term Financial Plan and Capital Programme reports are brought to them on 22 January, when a more detailed assessment of the Council’s financial position will be available.
8. The Director of Environmental Services is reporting a potential £1m overspend on building repair and maintenance urgent works. In previous years this has been absorbed by deferring planned repair and maintenance works. However, this year - as outlined to and with the tacit endorsement of Operations Sub-Committee on 22 March 2001 - WS Atkins have been instructed to complete all planned maintenance work.
9. Environmental Services are due to review the position on planned maintenance on Monday 10 December, and an oral update will be provided to the Executive.
10. The Director of Environmental Services indicated at the October Operations Sub-Committee his intention to bring forward proposals to Executive on how he could fund the potential overspend from within the total funding available to Environmental Services. The latest estimated carry forward reserves are £0.833m in Environmental and £0.110m on Property Services within the overall Operations figure which would almost cover the potential £1m overspend on repair and maintenance. The Executive are asked to recommend Council to approve a virement of up to £1m for urgent repair and maintenance works to be funded from budgets controlled by Environmental Services. This will not be repaid in 2002/03.

Impact on County Fund Balance

11. The District Auditor has been consulted about the estimated position on the Council’s reserves. His view is that the Social Services overspending in 2001/02 should be met from balances when drawing up the final accounts. The City Schools shortfall can be shown against the Committee Carry Forward Reserves as the shortfall is planned and the schedule for repayments has been identified. Overall, he is content with the proposed arrangements. However, as referred to already the detailed compilation of the year end accounts will need careful assessment.
12. In 2002/03 balances will be restored to £4.5m through a budget contribution of £1.5m and the Social Services Carry Forward Reserve coming back into balance and no longer being a draw down on balances. We will need to satisfy ourselves in drawing up the budget for next year that this will actually be achieved.

RECOMMENDATION

13. The Executive is RECOMMENDED to RECOMMEND Council to approve a virement of up to £1m for urgent building repair and maintenance works to be funded from other budgets controlled by Environmental Services.

CHRIS GRAY
Director for Business Support and County Treasurer

DAVID YOUNG
Director of Environmental Services

Background Papers: Nil

Contact Officer: Mike Petty, Tel Oxford 815622

7 December 2001

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