Meeting documents
Cabinet
Wednesday, 2nd March, 2005
Appendix 1
REVENUE BUDGET MONITORING APRIL TO DECEMBER 2004
1.1 Appendix 2 outlines the Council's current financial position for the 2004/05 financial year to the end of December 2004 by portfolio. The Appendix shows that there will be a projected year-end overspend of £173,000. This represents a significant improvement on the position reported in December (overspend of £867,000).
1.2 Significant areas of over and under spend (including changes from previous reports) are highlighted in this appendix, but further explanations of the reasons for over and under spends in the current year are provided within the notes to Appendix 2.
1.3 Social Services portfolio - forecast £1,535,000 over spend
Current estimates for budgets within the Social Services portfolio are that they will be overspent by £1,535,000 (4.1%). The last budget monitoring report to the Council Executive in December contained a paper detailing the issues and cost pressures affecting Social Services. The paper also detailed options under examination with a view to reducing the overspend in both the short and long term.
Since the last report further cost pressures have affected Elderly Persons Homes (EPH's) and Childrens Service budgets. An overspend of £210,000 is forecast for EPH's mainly due to the delay in closure of Woodside and Tyndale EPHs, but also partly due to additional staffing required to meet CSCI (Commission of Social Care Inspection) registration standards and the purchasing of replacement beds in the independent sector. Previous reports have shown the budget on target but noted that there was a virement to the purchasing budgets. This was reported to the Executive in December and is now actioned. The Children's Service is projecting an overspend of £70,000 due to costs of placement and leaving care, partly offset by salary savings.
The Revenue Budget for 2005/06 approved by Council on 22nd February has provided extra resources to bring the Social Services budget into balance.
1.4 Resources Portfolio - forecast £982,000 under spend
The favourable cash flow position the Council experienced in the first half of this financial year has continued in the second half. The lower than anticipated spend on capital schemes has delayed the need to enter into long term borrowing. In turn this has led to savings in both the loan charges and interest received budgets which are projected to be under spent by £1,278,000 at year end.
Following further investigation into Government subsidy reimbursements in respect of Housing Benefit payments, it is now forecast that around £350,000 benefit payments this year may not be recovered through the subsidy.
The provision for unfunded pensions is forecast to underspend by £50,000 as charges from other administering bodies in respect of pensioners of previous authorities are diminishing.
The balance of the Portfolio is made up from a number of over and under spends as detailed in the notes to Appendix 2.
1.5 Sustainability & The Environment Portfolio - forecast £102,000 under spend
Planning Services are projecting a year end under spend of £204,000. The main factors are lower than anticipated costs for the Local Plan this year (the adjustment of cost profile to next year has been taken account of in the Budget for 2005/06) and a significant increase in planning fee income, in part due to an increase in the volume of applications in advance of anticipated price increases from April 2005.
Cleansing forecast an overspend of £115,000. The delay in closure of public conveniences contributing £62,000 towards the overspend, and the refuse collection service is experiencing cost pressures of £25,000.
1.6 Economic Development Portfolio - forecast £319,000 under spend
This portfolio shows a significantly improved position with the Commercial Estate now forecasting a £400,000 underspend due to recent rent reviews being settled at higher than expected levels. A carry forward of £60,000 will be requested in respect of Land Registration costs. 2005/06 income targets have been adjusted to reflect this latest information. Corporate Estate budgets are projected to overspend by £100,000, a carry forward request will be made to recover this overspend against savings due from the vacation of Frome Road Centre and North Parade Buildings.
1.7 Directors Group are actively monitoring and managing the Council's financial position. Executive members will be regularly briefed on progress by Directors and given an update in monthly monitoring reports.