ENVIRONMENT AND TRANSPORT SELECT COMMITTEE- 22 APRIL 2003

BUDGET MONITORING REPORT AS AT END OF MARCH 2003

REPORT OF THE CHIEF FINANCIAL OFFICER

REASON FOR SELECT COMMITTEE CONSIDERATION

This report sets out the budget and spending position on both Revenue budgets and the Highways Capital Programme as at the end of March. Within the Comprehensive Performance Assessment framework, one of the key criteria is that financial reports relating to underlying financial records are prepared and reported to Members on a regular basis, in order that focus is maintained on the Council’s strategic priorities. On this occasion the monitoring report provides information on draft outturn figures for last financial year. However, it is acknowledged that there are a number of adjustments still to be made as part of the Council’s closedown process.

ACTION REQUIRED BY THE SELECT COMMITTEE

Members are invited to note the content of the report.

BACKGROUND

REVENUE EXPENDITURE

The report details gross expenditure, income and net expenditure to date against budget as shown at Appendix 1. There are still a considerable number of adjustments to be made for works done in February/March and for which payments are still outstanding. In particular, the various Waste Management budgets are some two payments in arrears.

A number of spending pressures have arisen during the course of last financial year, many of which were relatively minor and have been contained within the cash limit for the various services. More major variances have arisen in the Highway Maintenance Budget (predicted overspend £190,000), Highways Capital Design and supervision fees under-recovered (predicted under-recovery £200,000 due largely to the change in nature of the Capital Programme from design intensive schemes to strategic corridors which require less detailed design input) and the Landfill Tax budget (£93,000 increase). These variances will be offset by increased income generation, namely car parking (£300,000), fees from developers for highways advice linked to S106 agreements (£90,000), and a one-off cash grant for disposal of refrigerators (£92,000).

CAPITAL EXPENDITURE

Expenditure against each scheme is shown at Appendix 2.

The appendix shows a significant underspend compared with budget as at 31 March (£3,693,000 of which £1,036,000 is deemed to be committed). The figures in the appendix represent the first draft of the outturn for the year and are still subject to final adjustment. On this occasion it should be possible to avoid losing capital resources by managing the Council’s entire Capital Programme within total resources available, as a result of which any slippage will be accommodated within the programme for 2003-04. This might not be the case if such high levels of slippage persist in future years.

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

The services included within this report are linked to a number of the Council’s key strategic objectives, specifically improving health, housing and the quality of life for all; creating safe and crime-free communities; improving public transport and the highways infrastructure; and protecting the Island’s physical environment.

They are also linked to a number of the Council’s plans, in particular the Local Transport Plan.

There are no direct implications for Performance Indicators arising from the production of this report. However, clearly there will be implications for future performance measures and indicators arising from the information contained within the report, specifically any cost based indicators, but also the outcomes arising from the services and projects to which this report refers.

CONSULTATION PROCESS

No specific consultation has been undertaken in the production of this report. However, a number of the capital projects and services included within the report will have been the subject of consultation with a range of external agencies and members of the public.

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

Since this a budget monitoring report, there are a number of financial implications (both revenue and capital) for the Council as a whole, and for the services for which this Committee has responsibility.

There are no direct legal or crime and disorder issues arising from the production of this report.

APPENDICES ATTACHED

Appendix 1 Revenue Expenditure

Appendix 2 Capital Expenditure

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

None used in the preparation of this report.

Contact Point :Stuart.Fraser, Central Accountancy Services Manager F 823657, e-mail [email protected]@iow.gov.uk.

PAUL WILKINSON

Chief Financial Officer

APPENDIX 1

REVENUE EXPENDITURE SUMMARY as at end of March

Service	Expenditure		Income		Net
	Budget	To date	Budget	To date	Budget	To date	Comment
	£000	£000	£000	£000	£000	£000
Management and Supervision including Policy and Strategy	1,366.4	1,785.2	-168.4	-281.4	1,198.0	1,503.8	Expenditure budget is net of design and supervision fees to be recharged to capital projects, which are under-recovered. Partly offset by increased fees received from developers
Coast protection, harbours and seafronts	900.5	786.5	-235.9	-212.2	664.6	574.3	Budget linked to Environmental Initiatives, any surplus to be viewed in conjunction with that budget
Waste management and recycling	6,239.8	4,301.0	-99.1	-114.9	6,140.7	4,186.1	IWM contract invoices tend to be some weeks in arrears, hence the apparent budget surplus. Final adjustments still to be made
Public conveniences and first time sewerage	417.0	373.2	-1.8	-2.1	415.2	371.1	Final adjustments still to be made for payments to contractors
Building control	399.8	401.9	-396.8	-452.3	3.0	-50.4	Income presently ahead of target due in part to amounts received last year relating to works not yet started, hence to be accrued into the current year
Street and beach cleaning	1,329.6	1,118.8	-0.3	-2.4	1,329.3	1,116.4	As is the case for the waste management and recycling budgets, street cleansing invoices in particular tend to be some weeks in arrears, hence the apparent budget surplus. Final adjustments still to be made
Highway maintenance	1,830.0	1,895.3	-33.5	-67.6	1,796.5	1,827.7	Budget currently overspent by £30,000 – final adjustments still to be made for works carried out in February/March for which invoices have not yet been received – anticipated net overspend £190,000