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ITEM EX5

EXECUTIVE – 27 MAY 2003

MONTHLY MONITORING REPORT

Report by Head of Finance

 

Introduction

     

  1. This report is the penultimate in the year for 2002/03 and updates the position to the end of March 2003. The major variations since the last report are set out. Annex 1 (download as .xls file) and Annex 2 to the report set out the overall position on the programme area carry-forward reserves and the overall position on balances respectively.

  2. Members are reminded that the provisional outturn report which allows for all end of year adjustments will go to Executive on 24 June. It is not expected that there will be material differences between the position reported here and provisional outturn. The outturn includes the operation of an administrative holdback, which was originally £1.4m. Not all directorates have been able to maintain this until year-end. The main component remaining relates to Environment, Roads and Economy £0.850m, which is subsumed within the figures reported.

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

    4. Learning & Culture

  4. The underspending for Learning & Culture has reduced by £0.317m since the last report to £0.904m. The forecast underspending on the Education element of Learning & Culture has reduced from £0.625m to £0.244m. The underspending on Culture has increased from £0.596m to £0.660m.

  5. The main changes for Education are in relation to overspending on Statementing (£0.335m), Transport (£0.127m) and Schools Contingency (£0.135m) offset mostly by Pupil Referral Unit Integration Service (-£0.161m) and increased underspending on Out of County placements -(£0.106m).

    6. Social & Health Care

  6. The overall position on Social & Health Care is a forecast overspend of £2.306m, an improvement of £0.281m since the last report.

    7. Environment, Roads & Transport

  7. The latest position for Environment, Roads & Transport shows a forecast underspending of £1.492m. The is an increase of £0.058m since the previous forecast.

  8. The underspend includes an administrative holdback figure of £0.850m agreed by the Executive early in the financial year.

    9. Community Safety

  9. The latest position for Community Safety shows a forecast overspend of £0.109m compared to £0.071m in the last report. This comprises mainly of a predicted underspend of £0.050m on the Fire Service and an overspend of £0.158m on the Registration Service. A series of measures to both reduce costs and generate new income for the Registration Service have been identified and will be put in place in 2003/04.

  10. There are changes to the estimated final costs of both the Fire Service Pension Scheme (+£0.032m) and the Retained Firefighters budget, (-£0.040m) both of which impact on balances.

  11. The Fire Service Pay Award for November 2003 is still to be agreed; the estimated cost falling in 2002/03 is £0.124m.

    12. Corporate Governance

  12. The latest forecast underspending for Corporate Governance is £1.101m compared to £1.108m in the last report.

    13. Virements

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

    14. Balances

  14. The effect of the changes on the estimated revenue balances at 31 March 2003 is shown below:

    15.  

     

    Estimated County Fund Balance at 31 March 2003 as reported

    to the Executive in April

    Retained Firefighters – Adjustment

    Fire Service Pension Scheme

    £m

     

    4.047

    -0.040

    0.032

    Revised Estimated County Fund Balances at 31 March 2003

    4.039


    Programme Area Carry Forward Resources

  15. The projected Programme Area Carry Forward Reserves at 31 March 2003 as outlined in the report are shown at Annex 1. The estimated position shows a potential deficit of £2.194m which comprises a planned overspend of £3.276m on City Schools Reorganisation, an overspending of £2.306m on Social & Health Care offset by net underspending on other programme areas of £3.388m.

    16. Consolidated Position

  16. The overall position on balances based on the projections shown in this report shows an estimated £1.845m remains in reserves to meet all other potential and outstanding pressures arising in the year. The position is analysed in Annex 2 and summarised below:

    17.  

     

    Revenue Balances

    City Schools Overpsend

    Projected Programme Areas Carryforward

    £m

    4.039

    -3.276

    1.082

    Total

    1.845

  17. This represents a slight downturn of £0.031m since the last report.

    18. Looking forward to 2003/04

  18. The Council has just agreed the Job Evaluation implementation arrangements. The costs in 2003/04 are some £0.110m higher than budgeted and this cost will be a call on balances.

  19. The Council has provided a temporary mortuary at Brize Norton during the recent conflict in Iraq. The estimated costs are £0.500m in 2003/04, which it is expected will be fully reimbursed by the Government.

  20. The budget agreed for Social & Health Care for 2003/04 assumed an overspend to be carried forward from 2002/03 of £3m. Currently the forecast overspend is £2.416m, which if this position is maintained in the final outturn for 2002/03 would leave a surplus of £0.584m which should be returned to balances.

    21. Conclusion

  21. The updated forecast for 2002/03 is set out above. The firefighters pay award is still to be resolved, and is estimated to cost £0.124m this year. The projected overspending on Social Services within Social & Health Care has shown a steady overall decline in recent months, and appears to have stabilised. The final position will be reported in the provisional outturn report next month.

  22. The overall position for the Council shows some £1.845m of consolidated reserves at 31 March 2003 including at least £0.900m (of which £0.850m relates to Environment, Roads & Transport) arising from the administrative holdback implemented during the year.

  23. It is now felt appropriate to release the holdback for the services to spend in 2003/04.

    24. RECOMMENDATION

  24. The Executive is RECOMMENDED to receive the report and agree to the release of the administrative holdback implemented during 2002/03 for spending by the relevant services in 2003/04.

CHRIS GRAY
Head of Finance

Background Papers: Individual programme areas reports

Contact Officer: Mike Petty Tel: 01865 815622

May 2003

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