Meeting documents

APPENDIX 2

Summary Portfolio Revenue Report

Financial Monitoring Statement: All Portfolios

REVENUE SPENDING

ACTUAL TO DATE

YEAR END FORECAST

All Portfolio's For period to

Actual Spend or (Income)

Budgeted Spend or (Income)

Over or (under) spend

Forecast Spend or (Income)

Budgeted Spend or (Income)

Forecast over or (under) spend

ADV/FAV

NOTE

A

B

C

D

E

F

Jun-06

£'000

£'000

£'000

£'000

£'000

£'000

Transport & Highways

524

351

173

4,536

4,199

338

ADV

1

Children's Services

(4,425)

(4,640)

215

18,066

17,330

736

ADV

2

Social Services

3,708

8,708

(5,000)

34,995

34,831

164

ADV

3

Economic Development

(495)

(398)

(97)

(2,398)

(2,280)

(118)

FAV

4

Sustainability & the Environment

2,949

2,884

65

13,304

13,305

()

FAV

5

Resources

4,260

4,922

(662)

19,660

19,517

143

ADV

6

Leader

730

857

(127)

3,085

3,175

(89)

FAV

7

Tourism, Leisure & Culture

422

558

(136)

3,345

3,377

(32)

FAV

8

Community Safety and Housing Services

1,230

1,420

(190)

5,521

5,642

(122)

FAV

9

TOTAL

8,902

14,662

(5,760)

100,114

99,095

1,019

ADV

Note: "ADV" indicates an adverse variance, "FAV" a favourable variance, and a "( )" in the over and under spend columns indicates an underspend or overachievement of income

Note 1:Highways & Transport Overheads £74,000 underspend: vacancy management achieved to date is £37,000. In this light of recruitment currently being undertaken, this can be expected to yield further savings over the summer only. Public Rights of Way £20,000 overspend: application for a Village Green near University has been received and a Legal Counsel is required to be engaged for a public enquiry. Street Lighting £57,000 overspend: Service plan assumed Electricity prices would return to RPI trend after large increases in 05/06. Continued volatility of utility markets make this assumption unlikely, and additional expenditure is forecast from re-tender exercise in September . Traffic & Safety £35,000 overspend: unbudgeted additional staff to operate CCTV for bus lane enforcement. Public Transport £304,000 overspend: Bristol CC provide data for bus passes - anecdotal evidence suggests approx extra £250K cost.

Note 1 cont'd: Shortfall in Off Street parking income of £100k plus £22k loss from Hilton Hotel parking rental due to change of legal status of the tenancy. This includes pay on foot deficits. On-street parking is also deficit of £40K. The interim Head of service has agreed to bring forward a paper of future Parking Strategy, including addressing income shortfall by possible price increasesPark & Ride £100,000 net income loss from delays to fare increases resulting from late delivery of new buses. Report to Exec Member will propose revision to fare increases to compensate for losses. £100,000 shortfall in PCN income due to less ticket issues made by Parking Officers.

Note 2: Education: Access is forecast to overspend due to Home to School Transport. Children's Services overspend is due to the increase in Independent Fostering Placements since the start of 2005/06. This overspend has reduced from the May forecast as some placements have ended. There is an increase in the number of new foster carers being registered which will lead to increased availability for in house placements and potentially reduce the number of independent fostering placements.

Note 3:The majority of management actions in place in 2005/06 are continuing. Panels for all placements are continuing to make an impact on the number of new placements and the cost of reviewed placements. Adult Services £376,000 Overspend in part due to new external contract for extra care housing which is currently under review and will terminate in Sept. as it is not delivering to target. This should reduce some of the forecast over spend. The forecast overspend is also due the Adult Mental Health purchasing budget offset by an underspend in the older peoples mental health purchasing budgets. Mitigation is estimated impact of transfer of placements to new extra care and ongoing reduction in residential and nursing care. This assumes that the Mental Health target savings of £355,000 included within the budget for the last two financial years are achieved. So far approximately £80,000 of this target has been met with firm plans for a further £380,000 and further proposals being finalised.

Note 3 cont'd: Learning Difficulties Pooled Budget: This is the Council's proportion (61%) of the pooled budget for Learning Difficulties which overall is forecast to overspend by £1,000,000. The overspend includes approximately £500,000 of potential placements anticipated but not yet made. The mitigation is anticipated deaths during the year and the re-commissioning of care for approximately 80 people. Approximately £68,000 savings have been achieved already through recommissioning.

Note 4: Administration £19,000 underspend from managed vacancy of Policy & Programme assistant post; this will be reviewed following the outcome of the Council restructuring. Employment Development Service £8,000 underspend as a current Co-ordinator vacancy is being held; this will be filled by transfer of staff from Linear Way, following the re-focus of the Council's Print service. The underspend is partially offset by increased IT recharges relating to small works & desktop / laptop SLA charges. Training Services £93,000 underspend includes the £56,000 carry forward from Aug 05 to Mar 06 reflecting the Service delivering annual contracts based on an academic year. Further savings have arisen on vacant posts (Programme manager, marketing & finance), an increase in additional Learn Direct income, and allowances & other payments.

Note 5: Planning Control (£20,000) underspend will arise from the management of vacant administration posts through the planned use of temporary posts. The transfer of responsibilities to Council Connect will be met through this. Planning Policy (£15,000) underspend ; there are two principal factors. A forecast underspend on Policy and Major developments (£36,000) will arise due to the management of a vacant Senior Planning officer post. This is partially offset by an overspend within Heritage and Environment as Contributions made to various external organisations, as a saving (£35,000) that was originally included within both the Service Plan and budget for this item, which cannot now be delivered. It will be possible to reduce this pressure through other smaller savings (£17,000).

Note 5 cont'd: Management and Administration (£119,000) overspend due to the current non achievement of an agreed savings target, which has been increased to £79,000 to reflect the non achievement of sustainability grant income, is the main factor. There are also the following commitments which have arisen; advertising (£20,000), IT small works (£10,000), and managed print service (£10,000). Other commitments have also been met by Planning Services in the current year which may affect the ability to achieve the savings target; firstly, a consultant has been specifically engaged to analyse tariffs required for S106 agreements related to Bath Western Riverside; this work will be ongoing. Secondly, significant amounts of legal and consultants fees have been incurred dealing with the Charmy Down encampment; again this is ongoing.

Note 5 cont'd: Olympics Host Support, commitment given to regional project to promote use of local facilities. This was not included in service plans and alternative funding will be identified. The new parks port-a-cabin offices have replaced the former outdated ones. The business case for these assumed all costs were to be recovered through leasing. However, £25,000 of grounds works are outside this mechanism and will be funded by central efficiencies by the service. Additional commitment to Night Cleansing made to City Centre Management Group. Savings not yet identified, but are being sought.

Note 5 cont'd: The service strategy to increase recycling and reduce landfill continues to exceed budget expectations. Whilst some disposal gate fee savings are balanced by increased recycling costs, net savings result from landfill tax savings and Landfill Allowance Trading permit surpluses. The savings also offset the incorrect funding assumption for government grant for WEEE directive (£38,000 shortfall). West of England Waste project is examining the issue of regional facilities for disposal of residual waste post 2012, necessary to for the council to achieve is LATS obligations. A project plan is being drawn up, but is likely to exceed the sum earmarked in the Service Plan of £73,000. Additional running costs of transfer stations reflect requirements of extra security costs and vehicle costs. Short term lettings of Pixash Lane are now not expected.

Note 6: Chief Executive: the underspend is forecast on the Special Investigations budget held by the Chief Executive, and on a number of smaller budgets controlled by Chairs Office. Registrars Service income is currently being reviewed, specifically with regard to increased opportunities that were identified in the Business Plan produced in Summer 2005. It is very likely that additional income will be generated to offset any service pressures identified.

Note 6 cont'd: Human Resources Non Business Unit; the principal factor is the non recovery of the £143,000 savings target. The Head of Service is currently preparing a Directors Group report outlining the options available to achieve this; it will probably require an increased charge to other Services to recover this amount. An overspend of £20,500 is also forecast on Criminal Records Bureau, based on significant overspend in 2005-06. The issue has been raised with Human Resources with request to review internal processes, so that costs are charged to Services on a timely basis. The position is partially offset by a £30,000 underspend in the Health & Safety team due to the current holding of a vacant post. The Corporate training budget is yet to be allocated amongst services ; the achievement of the £22,000 efficiency saving has yet to be identified.

Note 6 cont'd: The Human Resources Business Unit £61,000 underspend is due primarily to vacant posts currently being held by the various HR teams. A £1,000 underspend on training course support costs is forecast at this stage, based on the planned programme of events. There are a number of service variances identified, primarily in current vacancies being held. These variances will all be reflected within the quarterly charges levied by Legal Services, which will be based on actual activities undertaken. This process will recover all costs incurred by the Service, and thus will balance to zero.

Note 6 cont'd: Additional commitment to Bath dial-a-ride made to Integrated Transport Board. No funding identified but are being sought. In the light of the 2005/06 performance the Building Engineering Services budget target remains overstated. £100,000 variations represents an early assessment of potential performance, in line with overhead allocation requirements. Closer working with Property Services will yield efficiencies elsewhere which remain to be quantified. Director, HR, Finance Overheads £160,000 overspend; the funding model for the implementation of Council restructuring assumed introduction of second tier management by 1st April. The reality of recruitment has meant additional recruitment costs (national advertising) as well as necessary interim management arrangements to ensure service continuity. A programme of savings to recover the bottom line position will be prepared by the Management Team in the next month.

Note 7: The Communications & Marketing £18,000 underspend is due to management of 2 currently vacant posts. The CRM Implementation & Running Costs £38,000 underspend is due to the non commitment of SAP technical support post. The majority of this funding has been vired to provide additional funding of Transition costs.

Note 8: Local Libraries overspends: current forecast under-recovery of service income is being evaluated; to identify factors affecting level & pattern of recovery. Lower hire levels has led to reduction in stock hire costs to support customer demand. Overspends on premises costs in branches, specifically contract cleaning, and forecast salary overspends in the Service, are both being currently evaluated. Year to date £175,000 underspend, due to non raising of payment to Tourism Company; these payments are raised in arrears & have been posted in July.

Note 8 cont'd: Parks & Open Spaces £98,000 overspend: Directors savings target of £75,000 to achieve income from sponsorship will not be achievable in 2006/07, which was additional to the service plan target of £23,000. The service has assess efficiency savings, such as vacancies, to balance the service plan target only. Alternative savings are being sought, but as yet are not forthcoming. Sport and Active Leisure overspends will be recovered

Note 9: Coroners: Bristol City Council is continuing negotiations over a phased implementation of increases to hospital charges proposed by the PCT. £95,000 was earmarked in reserves for additional Coroners costs as part of the 2005/06 outturn report. The provision will be drawn down to cover any overspend once the position on the hospital charges is agreed.

Budget Reconciliation

The overall monitoring position for these services is

Budget per last report

96,859

that they are currently

£5,760,000

Underspent

Virements

2,046

and, with management actions, by the end of this financial year

Current budget

99,095

they are forecast to be

£1,019,000

Overspent