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ITEM EX5

EXECUTIVE – 30 APRIL 2002

BUDGET MONITORING

Report by Director for Business Support & County Treasurer

Introduction

  1. This report is principally concerned with the outturn position for 2001/02. It updates the Executive on the latest estimated balances on the Committee Carry Forward Reserve and County Fund Balance as at 31 March 2002, the Capital Programme and the Capital Reserve. It also takes an early look at 2002/03.

    2. Committee Carry Forward Reserve

  2. The table below sets out the latest estimated position on the Committee Carry Forward Reserve, together with the figures reported to the Executive on 19 March 2002.

    3. COMMITTEE CARRY FORWARD RESERVE

               

    Balance at

    1 April 01

    Estimate at 31 March 2002
           

    19 March 02

    30 April 02

    £’000

    		     

    £’000

    £’000

    -58

    		 

    *Education

    		 

    -345

    -345

    -288

    		 

    Social Services

    		 

    -5301

    -5856

    1,544

    		 

    Environmental

    		 

    1,087

    1087

    263

    		 

    Public Protection

    		 

    91

    51

    299

    		 

    Cultural Services

    		 

    162

    162

    1,453

    		 

    Operations

    		 

    123

    323

               
               

    3,213

    		 

    Total

    		 

    -4,183

    -4,578

               

    * Includes £1.7m planned overspend on City Schools Re-organisation.

    Movement Since March Report

  3. Overall, there is a worsening of £395,000 in the Committee Carry Forward Reserve. The major points to note are set out below:

    4. Social Services

  4. The anticipated year end position for Social Services is an overspend of £5.9m. This is a worsening of £0.555m since the report to the Executive on 19 March 2002.

  5. This worsening was forewarned in the Monitoring Report to the Executive on 19 March 2002, which indicated there were still areas of concern on the outturn. All of those concerns have materialised, together with some other variations which broadly cancel each other out. Children and Families has worsened by £0.360m, Learning Disabilities by £0.249m, Homes for Older people by £0.204m, and Residential and Nursing Care by £0.185m, offset by Home Support -£0.196m, Physical Disabilities -£0.205m and other minor savings-£0.42m.

    6. Community Safety (former Public Protection Committee)

  6. There is an anticipated overspending on the Registration Service of £40,000 arising from the one-off costs of the reorganisation during 2001/02. The overspend will be recovered in 2002/03 and there are likely to be further savings arising as a result of the reorganisation in the longer term.

    7. Corporate Governance (former Operations Sub-Committee)

  7. There has been an improvement of £200,000 since the March report as a result of a further reduction of the estimated overspending on repair and maintenance of buildings. The overspending is now anticipated to be £600,000 in 2001/02.

    8. County Fund Balance

  8. The current estimated balance on the County Fund as at 31 March 2002 is £3.048m which is unchanged since the Monitoring Report to the Executive on 19 March 2002.

    9. Consolidated Position

  9. The consolidated position on Balances and the Committee Carry Forward Reserve is shown below:

    10.   £000

    County Fund Balance

    		 3,048

    Less Committee Carry Forward Reserve

    		 -4,578
     

     

    -1,530

     

    Capital Programme

  10. The Capital Programme funding position was reviewed and reported to the Executive on 17 April 2002. There is an estimated balance on the capital reserve at 31 March 2002 of £3.1m. Funding for the City Schools Reorganisation remains tight and we continue to need to manage the cashflow carefully.

  11. The Broadband project has underspent in 2001/02 as compared to the Project Appraisal. As a result the £697,000 funding identified from the capital reserve and part of the capital receipt (£206,000) will be carried forward through the capital reserve to meet payments that have slipped from 2001/02 into 2002/03.

    12. Overall End of Year Position

  12. The balance on the Capital Reserve can cover the projected deficit on the County Fund Reserve. The precise accounting entries need to be agreed as part of the final accounts closedown for 2001/02. The provisional outturn will be reported to the Executive on June 25.

    13.   £,000

    Revenue Balances

    		 -1,530

    Capital Reserve

    		 3,072

    2002/03 Budget

  13. The first monitoring report on the 2002/03 budget will go to the 28 May Executive. The Executive will continue to receive monthly monitoring reports on an "exceptions" basis, and a full financial report each quarter. The first of these quarterly reports will go to the 25 June Executive. (There will also be monthly meetings of the Social Services Budget Working Group specifically to monitor the Social Services budget.)

  14. The new rules for virement and levels of delegated responsibility were agreed by the Executive on 19 March and Council on 2 April. It is anticipated that the budget monitoring reports will be the normal vehicle for proposing virements that require the approval of the Executive (where the amount involved is over £0.25m) or where the approval of Council is required (permanent virements which would significantly affect the current configuration of services or imply a commitment in future years beyond any agreed allocations.)

    15. Finance Seminars

  15. There will be a series of finance seminars throughout the year available to all members. Details are yet to be announced but are planned to include the new capital strategy, the MTFP and financial strategy, updates on the spending review and formula changes, and review of budget performance alongside key indicators BVPIs to date.

    16. RECOMMENDATION

  16. The Executive is RECOMMENDED to note the report.

CHRIS GRAY
Director of Business Support & County Treasurer

Background Papers Nil

Contact Officer Jenny Hydari Tel. (01865) 815401

April 2002

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