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ITEM CG11

EXECUTIVE – 29 APRIL 2003

MONTHLY MONITORING REPORT

Report by the Head of Finance

Introduction

  1. This report updates the budget monitoring position for 2002/03 to the end of February 2003. The major variations since the last report are set out with potential variations for the rest of the year. Annex 1 (download as xls. file), Annex 2 (download as doc. file)and Annex 3 (download as xls. file) to the report set out the overall position on the programme area carry forward reserves, the overall position on balances, and movement on reserves respectively.

  2. Members are reminded that an administrative holdback of £1.4m in total is subsumed within the figures reported. This contributes to the underspending in some areas – and is at the instigation of the Executive on advice I issued at the beginning of the year. More detailed reference is made in the body of the report.

  3. Individual reports from each of the Executive Programme Areas form the background documents to this report and are in the Members Resources Centre. The position for each of the programme areas is considered below:

    4. Learning & Culture

  4. The underspending for Learning & Culture has increased marginally by £0.081m overall since the last report. The forecast underspending on the Education element of Learning and Culture is now £0.625m and £0.596m for Culture. This gives a total underspending of £1.221m.

  5. The forecast overspending on City Schools re -organisation transitional costs has reduced by £0.189m to £3.276m as a result of slippage.

  6. Education are contributing £0.500m and Culture £0.050m to the administrative underspending instigated by the Executive earlier in the year. These amounts are contained within the total underpsending of £1.221m.

    7. Social & Health Care

  7. The latest position on Social Services is a forecast overspending of £2.700m which is very similar to that predicted in the last report. The Youth Offending Team forecast overspend at 31 March 2003 remains at £0.100m as previously reported.

  8. There is a forecast underspending on the Education part of Social & Health Care totalling £0.213m, including £0.111m on Early Years, £0.052m on Family Centres and £0.059m on Free Standing Nursery Schools. The overall position on Social & Health Care is an estimated overspend of £2.587m.

  9. Members need to remain alert around the position on Social Services, where a contingency of £0.900m and unallocated Preserved Rights Grant , assumed to be available (i.e. non returnable) of £1.005m are used to offset the projected overspend to arrive at the position set out above.

    10. Environment, Roads & Transport

  10. There is a forecast underspending of £1.434m on Environment, Roads & Transport, which is a small increase on the previous forecast of £1.414m. The main changes are a reduced underspend on highway management of £ 0.120m and an increased underspending of £0.100m on Waste Management.

  11. There is a small overspending on rates of £7,000 due to revaluations, which is a charge against balances.

    12. Community Safety

  12. There is a forecast overspending of £0.071m on Community Safety. This is made up mainly of a underspending of £0.050m on the Fire Service offset by overspending on Trading Standards of £0.25m and Registrars £0.102m. The main change since the last report is a reduced underspending of £0.020m on the Fire Service.

  13. There is now an anticipated underspending of £10,000 on the retained firefighters budget compared to an estimated overspending of £40,000 as reported in March. This £50,000 reduction will be restored to balances.

    14. Corporate Governance

  14. There is a forecast underspending of £1.108m on Corporate Governance. This is an increase of £0.319m since the last report. The main changes are a predicted underspend of £0.150m on Strategic Information and Communications, a reduced overspend of £0.090m on Repair and Maintenance of Buildings and an increased underspend of £0.050m on Property – Other Services.

  15. The balance of overspending on OCN/Broadband (£0.350m) as previously reported has been met from the New Technology Fund and was agreed on 24 March by the Leaders’ Group.

    16. Virements

  16. There are no new virements to report this month.

    17. Balances

  17. The impact of these changes on the estimated revenue balances at 31 March 2003 is shown below:

    18.  

     

    Estimated County Fund Balance at 31 March 2003 as reported to the Executive in February

    Retained Firefighters – Adjustment

    Increased Rates to be met from balances

    Revised Estimated County Fund Balances at 31 March 2003

    £m

     

    4.104

    -0.050

    -0.007

    4.047

    Programme Area Carry Forward Reserves

  18. The projected Programme Area Carry Forward Reserves at 31 March 2003 as outlined in the report are shown at Annex 1 (download as .xls file). The estimated position shows a potential deficit of £2.171m, which comprises a planned overspend on City Schools Reorganisation of £3.276m, and an overspending on Social & Health Care of £2.587m, offset by underspendings on other programme areas of £3.692m.

    19. Consolidated Position

  19. The overall position on balances based on the projections shown in this report shows an estimated £1.876m remains in reserves to meet all other potential and outstanding pressures arising in the year. This position is analysed in Annex 2 (download as .doc file) and summarised below:

    20.  

     

     

    Revenue Balances

    City Schools Overspend

    Projected Programme Area Carryforwards

    Potential Year End Position

    At 31.3.2003

    £m

    4.047

    -3.276

    1.105

    1.876

  20. This represents a movement of £0.744m since last month’s report which is summarised mainly as slippage on City Schools planned revenue overspend of £0.189m and increased underspending (mainly on Corporate Governance) of £0.365m, coupled with a forecast decrease in Social & Health Care of £0.247m.

  21. There will be another monthly monitoring report for 2002/03 to 27 May Executive, before the provisional outturn report to the meeting of 24 June. This will report the position for both revenue and capital. Work is still under way on updating the position on strategic measures (this relates to interest assumed on balances etc.) This work will be finalised for the June report.

    22. Looking Forward to 2003/04

    Public Service Agreement (PSA)

  22. We have received £1.382m of Pump Priming Grant (PPG). Another £0.050m is expected, but we will need to agree the cost effectiveness target with the Office of the Deputy Prime Minister (ODPM) first. We are awaiting final agreement on the indicators that we will use in our ‘Performance Index’ proposals made by the districts councils and ourselves about allowances for growth and function changes in the ‘Cost Index’. We are also expecting to be granted £1.065m of Unsupported Credit Approval – ODPM have not released this yet. Arrangements are being made to transfer the PPG to project managers. Each project has a named councillor to act as its ‘champion’. An ‘awayday’ for project managers, ‘champions’ and partner organisations is being organised during the Autumn. There will be quarterly reports on the progress of each target to the Executive.

    23. Conclusion

  23. The updated forecast for 2002/03 is set out above. The firefighters pay award is still to be resolved. This is still estimated to be around £0.124m this year. The projected overspending on Social Services within Social & Health Care appears to be fairly stable on the evidence of the last few months, and is well contained within other areas’ underspending. However, this includes the managed administrative holdback on Learning and Culture and Environment, Roads & Transport of £1.4m. There are still some caveats around the final year end position for Social and Health Care as outlined, and therefore my advice remains consistent with previous months.

    24. RECOMMENDATION

  24. The Executive is RECOMMENDED to receive the report and ask the Directors to continue to proceed cautiously given the potential variations to the year end position outlined in the report.

CHRIS GRAY
Head of Finance

Background Papers: Detailed Programme Area Reports

Contact Officer: Mike Petty Tel: (01865) 815622

April 2003

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