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ITEM EX5 - ANNEX F

EXECUTIVE – 19 MARCH 2002

QUARTERLY FINANCIAL REPORT

FORMER OPERATIONS SUB-COMMITTEE

Report by Director for Business Support & County Treasurer, Chief Executive, Director for Strategy, Director of Environmental Services and Assistant Chief Executive

Introduction

  1. This report shows the 2001/02 budget for the former Operations Sub-Committee together with the projected year end variation based on the latest information available (Annex 1). (Download as .rtf file)

  2. The balance brought forward from 2000/01 (column 10) is provisional until the accounts have been formally signed by the District Auditor.

    3. Virements and Supplementary Estimates (Annex 1, Column 5 and Annex 2)

    Annex 2     . (Download as .rtf file)

  3. There are no new virements or supplementary estimates to report.

    4. Projected Outturn (Annex 1, Column 11)

  4. Using information currently available, there is a projected underspend this year of £123,000. This includes a planned overspend of £1,260,000 which is funded by £1,453,000 brought forward from 2000/2001. The forecast is analysed in more detail in the following paragraphs.

    5. OPS1 Chief Executive’s Office - £254,000

  5. As previously reported, it is planned to use the underspend forecast for the Purchasing Unit (£143,000) to contribute towards the funding of the e-procurement module of the MIS Project. The Strategy Directorate is forecasting an underspend of £82,000 which is earmarked to fund a review of corporate personnel and other budget pressures arising from the implementation of Raising our Performance and the new political management arrangements. The remaining underspends in this division of service will be used to fund other budget pressures next year including the initial costs of appointing an Equalities Officer.

    OPS2 Chief Executive’s Office - Other - £173,000

  6. As a result of the continuing temporary re-deployment of staff resources from the democracy and citizenship programme to the implementation of political modernization, the Communities in Partnership budget is now forecast to underspend by £70,000. It is anticipated that the delayed projects will be implemented during 2002/03. The programme will also be re-assessed following the outcome of the reviews of members’ support and local area structures.

  7. The Innovation Fund balance will be £31,000 at year end.

  8. The Community Leadership budget will underspend by £30,000 this year but next year there will be increased activity in relation to area based consultative machinery and community strategy which will add to expenditure pressures.

  9. Catering facilities at County Hall are now forecast to break-even this year and the one off budget of £20,000 set up in anticipation of a deficit will not be required. It is proposed that this underspend is used next year to contribute towards the cost of improving catering service at County Hall.

  10. Other underspends are as reported in December.

    11. OPS3 County Treasurer’s Department - £141,000

  11. The underspend of £141,000 includes £26,000 earmarked for investigating PFI projects. The remaining planned underspend will be used to contribute towards the funding of the MIS project.

    12. OPS4 Corporate and Democratic Core - £155,000

  12. The total budget for members’ facilities is expected to underspend by £111,000. This includes budgets set up for training and IT as part of the programme for implementing political modernization. These budgets will be used in full next year to finance the ongoing training programme for members and to give all members networked computer facilities. The balance of the underspend will be used to pilot political management changes such as local area structures.

  13. The supplementary estimate of £40,000 for Scrutiny Committees has not yet been spent and will be carried forward to fund future scrutiny reviews.

  14. The Chair’s Allowance is expected to underspend by £4,000.

    15. OPS5 Repair and Maintenance of Buildings + £800,000

  15. The Executive has previously been informed of a potential overspend in the region of £1m on urgent works which had the tacit endorsement of the former Operations Sub-Committee. This is a consequence of the inadequate budget level for repairs and maintenance. In previous years money allocated to high priority planned maintenance work was used to fund urgent works in order to keep expenditure within the overall budget provision. This is unsustainable and will lead to a spiral of deterioration in the Council’s property. On 5th February the Council approved a virement of up to £1m from elsewhere within the budgets controlled by Environmental Services to fund this overspend.

  16. At the end of January 2002 the urgent works budget was over committed by £724,00. A further £300,000 is likely to be spend by the end of the financial year, bringing the year-end position on urgent works close to the £1m overspend previously predicted.

  17. Because of the Council’s overall financial position this year a freeze on planned maintenance was imposed in December 2001 to minimise the total overspend. This should result in an underspend of some £200,000 on that part of the budget but will again mean that essential high priority planned maintenance will not be done resulting in further worsening in the condition of the Council’s buildings and ultimately higher costs.

  18. The projected overspend on the overall Repair and Maintenance of Buildings budget is therefore in the region of £800,000. Action has been taken within Environmental Services to fund this overspend from within the overall budget provision for the department. The Director of Environmental Services will report to the Executive with specific proposals at the end of the financial year when the exact figure is known.

    19. OPS6 Property – Other Services - £200,000

  19. Part of the accumulated savings of £70,000 on Smallholdings will be carried forward to meet potential future costs on the estate and part may be used to contribute to the Repair and Maintenance overspend. £30,000 will be carried forward to fund the costs of a temporary post in the Property Client Section. There is a predicted underspend of £100,000 on Asset Management Plans which will be carried forward to fund the work already committed in 2002/03 for floor space surveys of the Council’s buildings.

  20. Savings on Office Accommodation and any surplus income from the Oxford Castle site will be used for costs in connection with the review of central offices and to help fund the cost of any building related works required in connection with the introduction of a corporate facilities management service for the central buildings.

    21. Government Grant Funding (Annex 3) (Download as .rtf file)

  21. Details of specific grants received are included in Annex 3.

    22. Financial, Staff and Environmental Implications and Implications for People Living in Poverty

  22. This report is solely concerned with finance. There are no environmental or staff implications or implications for people living in poverty arising directly from the report.

    23. RECOMMENDATIONS

  23. The Executive is RECOMMENDED to receive the report.

CHRIS GRAY
Director for Business Support & County Treasurer


RICHARD SHAW
Chief Executive

DAVID YOUNG
Director of Environmental Services


STEPHEN CAPALDI
Director for Strategy

C J IMPEY
Assistant Chief Executive

Background papers: None

Contact Officers: Maureen Elliott Tel: (01865) 815868

Tim Paul Tel: (01865) 815423

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