Pendle Borough
Council
FINANCIAL SERVICES
Financial
Monitoring
Statement
at 31st July 2008
General Fund Revenue Budget 2008/09
Financial Monitoring Statement as at 31st July 2008
1. The purpose of the this Financial Monitoring Statement is to provide
Management Team with a position statement on the Council’s General Fund
Revenue and Capital Budgets.
General Fund Revenue Budget
2. As at 31st July 2008, the forecast outturn position on the General Fund
Revenue Budget is an underspend of £356k. This comprises an underspend
on the Net Cost of Services of £185k and an underspend of £171k on
Corporate Income and Expenditure (primarily the Minimum Revenue
Provision (£115k) and additional investment income of £56k).
3.
Assuming this position is maintained until the year end, the amount required
from the Budget Strategy Reserve to balance the Council’s budget would be
£426k compared to the budgeted amount of £783k.
4.
Details of the forecast outturn position, in summary and by individual service
area, are contained on pages 3 to 29 in this Statement.
5. Key areas of financial risk that will need to be maintained under review
include:-
•
Concessionary Fares – although there are proposals for a pooling
arrangement with other Lancashire authorities, recent figures for the
Countywide Scheme suggest that there might be additional costs arising
from the new Concessionary Travel scheme introduced in 1st April 2008;
•
Income from Local Land Charges – compared to the profiled budget to
date, income is £33k less than expected;
•
Income from Markets – Despite reductions in the fees for markets, actual
income to date is £35k less than the profiled budget;
•
Housing Benefit Subsidy – this is expected to be less than budget by
c£150k due to an error in the classification of an organisation to which
housing benefit is paid. Work is underway to establish how to minimise
this additional cost.
General Fund Capital Programme
6.
The Capital Programme for 2008/09 is forecast to underspend by £1.078m.
Details of the main variances are provided on page 30.
2
7.
It is also forecast that the Council will receive £232k more capital receipts
than planned.
8.
Fundamentally, on the basis of the forecast outturn predicted above, it is
expected that rather than prudential borrowing of £7.2m, the Council would
have prudential borrowing of £5.9m, some £1.3m less than expected.
3
4
Directorate
Budget Monitoring Statement
5
Chief Executive’s Policy Unit
a) Budget Monitoring Statement
b) Projected Variance from Budget
6
c) Major Variations
Ref Cost Centre
Description
£
£
1. Contact Centre
Contribution
3,000
2. Service Area
Salaries -109,410
External Funding
83,670
Fees and Charges
4,180
--21,560
-18,560
Minor Variations
140
Total Variance (as above)
-18,420
NB Negative figures (-) are either reduced expenditure or increased income.
7
Financial Services
a) Budget Monitoring Statement
b) Projected Variance from Budget
8
c) Major Variations
Ref Cost Centre
Description
£
£
1. Financial Service Costs
External Audit Fee
-15,000
2. Subscriptions
LGA Subscription
-1,600
-16,600
Minor Variations
-220
Total Variance (as above)
-16,820
NB Negative figures (-) are either reduced expenditure or increased income.
9
Democratic and Legal Services
a) Budget Monitoring Statement
b) Projected Variance from Budget
10
c) Major Variations
Ref Cost Centre
Description
£
£
1. Council Elections
Hire of Transport
-3,610
2. Local Land Charges
Search Fees (LCC)
-3,680
Search Fees (Income)
35,000
31,320
3. Licensing
Licences (Income)
13,900
4. Service Area
Salaries -9,420
Printing and Stationery
32,850
24,930
66,540
Minor Variations
1,640
Total Variance (as above)
68,180
NB Negative figures (-) are either reduced expenditure or increased income.
11
Planning and Building Control
a) Budget Monitoring Statement
b) Projected Variance from Budget
12
c) Major Variations
Ref Cost Centre
Description
£
£
1. Devt Control & Enforcement
Consultancy -2,000
Appeals -18,000
Planning Applications
-45,000
-65,000
2. Planning Policy
Staff Training
-4,000
3. Service Area
Salaries -74,120
Services
14,000
-60,120
-129,120
Minor Variations
1,180
Total Variance (as above)
-127,940
NB Negative figures (-) are either reduced expenditure or increased income.
13
Operational Services
a) Budget Monitoring Statement
b) Projected Variance from Budget
14
c) Major Variations
Ref Cost Centre
Description
£
£
1. Street Cleansing
Employees 3,840
Equipment 22,810
Sub Contractors
-10,000
Cost of St Cleansing
-33,820
LCC (Income)
29,800
Recharges
-26,870
-14,240
2. Domestic Waste Collection
Employees 74,910
Materials -12,820
Misc Expenses
21,170
Charges for Services
-6,670
Recharges
-14,130
62,460
3. Trade Waste
Employees -50,100
Equipment
8,100
-42,000
4. Recycling
Operational Wages
-73,040
Operational Buildings
-3,000
Materials -17,000
Cost Sharing - Sales
-43,740
Recharges
-15,000
-151,780
5. Dog Wardens
Vets Fees
5,400
6. Luncheon Clubs
Sales
4,850
7. Social & Community Centres
Rents
30,000
8. Emergency Planning
Emergency Planning
-9,000
9. Service Area
Salaries
-79,890
-194,200
Minor Variations
-3,810
Total Variance (as above)
-198,010
NB Negative figures (-) are either reduced expenditure or increased income.
15
Environmental Health Service
a) Budget Monitoring Statement
b) Projected Variance from Budget
16
c) Major Variations
Ref Cost Centre
Description
£
£
1. Pest Control
Charges for Services
2,000
2. Service Area
Salaries
-34,890
-32,890
Minor Variations
310
Total Variance (as above)
-32,580
NB Negative figures (-) are either reduced expenditure or increased income.
17
Parks and Recreation Services
a) Budget Monitoring Statement
b) Projected Variance from Budget
18
c) Major Variations
Ref Cost Centre
Description
£
£
1. Playing Fields
Buildings R&M
-2,600
Energy 6,610
Capital Charges
-2,580
Charges 3,700
5,130
2. Parks
Buildings R & M
11,070
Water 1,500
Grounds DSO Charges
-35,000
Grounds DSO Deficit
34,000
Sales 3,200
Rents (Income)
2,320
17,090
3. Open Spaces
Equipment -2,100
Amenity Seating
-1,500
-3,600
4. Cemeteries
Fees & Charges
-7,500
5. Service Area
Salaries -9,360
Rents (Expenditure)
2,830
-6,530
4,590
Minor Variations
2,490
Total Variance (as above)
7,080
NB Negative figures (-) are either reduced expenditure or increased income.
19
Housing Regeneration Services
a) Budget Monitoring Statement
b) Projected Variance from Budget
20
c) Major Variations
Ref Cost Centre
Description
£
£
1. Homelessness
Energy -,1240
New Initiatives
10,000
Supporting People Grant
-10,000
-1,240
2. Pendles Womens Refuge
Grounds R&M
3,600
3. Service Area
Salaries -36,990
External Funding
-19,040
-56,030
-53,670
Minor Variations
1,680
Total Variance (as above)
-51,990
NB Negative figures (-) are either reduced expenditure or increased income.
21
Economic Development and Tourism
a) Budget Monitoring Statement
b) Projected Variance from Budget
22
c) Major Variations
Ref Cost Centre
Description
£
£
1. Information & Visitor Centre
Materials 5,100
Sales -5,100
0
2. Service Area
Salaries -24,590
Postages 1,720
Telephones 1,420
External Funding
23,970
2,160
2,160
Minor Variations
-10
Total Variance (as above)
2,150
NB Negative figures (-) are either reduced expenditure or increased income.
23
Engineering and Special Projects
a) Budget Monitoring Statement
b) Projected Variance from Budget
24
c) Major Variations
Ref Cost Centre
Description
£
£
1. District Highways
Grounds R&M
-5,940
2. Residual Highways
Grounds Mtce DSO
17,960
LHP Management Fee
-3,970
Sponsorship 2,000
15,990
3. Countryside Access
Footpaths 4,620
Transport 6,530
LCC Contribution
-2,290
Sales (Tourism Packs)
-16,000
-7,140
4. Car Parks
Buildings R & M
-6,110
Rates -4,670
Water Services
1,830
Operational Buildings
-2,500
Levy (Parkwise)
-2,500
Attendants -1,260
Parkwise Receipts
55,680
Rents -3,050
37,420
5. Bus Station
Fees & Charges
900
Rents -4,630
-3,730
6. Land Drainage
Repairs & Maintenance
3,200
Envrnmntl Agency Fee
-16200
-13,000
7. Taxi Licensing
Licence Refunds/CRB
8,980
CRB Checks
-9,130
-150
8. Service Area
Salaries -3,100
Postages 1,650
Telephones 4,820
3,370
26,820
Minor Variations
570
Total Variance (as above)
27,390
NB Negative figures (-) are either reduced expenditure or increased income.
25
LIberata
a) Budget Monitoring Statement
b) Projected Variance from Budget
-
Property Services
26
- Revenue
Services
c) Major Variations
Ref Cost Centre
Description
£
£
1. Markets
Rents
37,950
2. Rent allowances
HB Admin Subsidy
150,000
3. Service Area
Recovery Costs
18,600
206,550
Minor Variations
-4,960
Total Variance (as above)
201,590
NB Negative figures (-) are either reduced expenditure or increased income.
27
Salaries Budgets 2008/09
The table below provides a summary of the Council’s salaries budgets as at the end of July 2008
and the forecast outturn position for the year. Also provided is the budgeted number of Full Time
Equivalent (FTEs) staff, with an analysis of those posts that are vacant.
28
Major Income Streams
For the period up to 31st July 2008, the table below shows the level of income received by the
Council for those fees and charges budgets which exceed £10,000 for the year.
29
Summary Capital Programme 2008/09
The table below provides a summary of the current and forecast position on the Council’s Capital
Programme for 2008/09.
Major variances:-
• £662k underspend on social housing schemes to be undertaken with Housing Pendle. In
the absence of plans to spend this funding at this, it is assumed that it could be underspent
at the year end;
• £100k underspend in relation to the estimated costs of the Whitefield CPO. In view of the
uncertainty over the R-Gen project, it is not expected that this budget will be used in
2008/09;
• an underspend of £362k being the Contingency for Asset Renewal. It should be noted,
however, that as the year progresses, there may well be projects that come forward that
use some or all of this budget;
• Anticipated additional capital receipts of £232k.
Fundamentally, on the basis of the forecast outturn predicted above, it is expected that rather
than prudential borrowing of £7.2m, the Council would have prudential borrowing of £5.8m, some
1.4m less th
£
an expected.
30
Cash Flow Management
Good cash flow management optimises the Council’s interest an
m
d invest ent receipts which, in
turn, contribute to the Council’s General Fund Revenue Budget position.
The collection of Council Tax and Business is monitored closely by the Libe
artn
rata P
ership
S e
te ring Group. Below is info
her mai
rmation about the Council’s ot
n cashflow matters.
a) Analysis of
ding
Sundry Debtors Outstan
he obje
T
ctive with Sundry Debtors to
b) Analysis of Sundry Debtors April 2007 to July 2008
)
c Daily Cleared Bank Balance
31
To ensure that the Council optimises the amount of surplus cash under investment, a target
has been established which endeavours to ensure that the daily cleared bank balance does
d +/
not excee
- £50k. As the graph below indicates this has, largely, been achieved in the year
to date.
The average cumulative cash balance at end of each month is shown in the table below
April
May
June July
Aug
Sept
Oct
N
ov
Dec
Jan
Feb
Mar
+19k
+27k
+27k
+24k
- - - - - - - -
d) Investments
In setting the budget for 2008/09, it was assumed that the Council would have an average
balance of investments of c£8m
c
(re ognising that the balance fluctuates on a daily basis) that
would generate a return of c5.8%.
Given the Council’s underspend in 2007/08, on both the General Fund Revenue Budget and
the Capital Programme, combined with additional borrowing in 2007/08 in advance of future
capital spend and a more pro-active (but inherently prudent) investment strategy, the balance
of investments has consistently been above the average (£8m) expected.
Therefore, despite the reduction in interest rates – interest rates for the investments utilised
by the Council are generally linked to the Bank Base Rates – the amount of surplus cash
under investment means that the forecast investment return for the year is expected to
exceed the budget by c£56k
The graph below shows the amount un
st
der inve ment on a daily basis (compared to both the
average expected and the position in 2008/09.
32
33
