THE VALE OF GLAMORGAN
COUNCIL Agenda Item
CABINET MEETING: 20TH JUNE
2007
REPORT OF THE DIRECTOR OF FINANCE, I.C.T. AND
PROPERTY
CLOSURE OF ACCOUNTS
2006/07
Purpose of Report
1. The accounts are
complete and this report is to inform Cabinet of the
provisional financial position of the Council for the 2006/07
financial year. It also constitutes an account of the major
financial issues during 2006/07.
Background
2.
Following the end of the financial year, Cabinet are provided with
provisional outturn figures for the Council.
3.
A separate report will be taken to Scrutiny Committee (Corporate
Resources) on the 24th July 2007.
General Fund
4.
The Council on the 8th February 2006 (minute no.813)
agreed the Authority’s budget requirement for 2006/07. This
represented estimated net expenditure for the Authority of
£169,566,914. Total expenditure was to be financed by Revenue
Support Grant (£101,885,152), National Non-Domestic Rates
contribution (£26,755,342) and Council Taxpayers (£40,926,420). The
Standard Spending Assessment (SSA) for the year was
£171,073,714.
5.
The revised revenue estimates were considered and approved by
Council on the 14th February 2007 (minute no.824). The
revised estimate for 2006/07 was £171.816 million and the actual
expenditure against this for 2006/07 is £174.313 million, which is
£2.497 million above the revised estimate.
6.
Certain accounting adjustments have been made to service budgets in
respect of:
·
Government Grant Deferred – These amounts represent the release of
grant to revenue to set off the depreciation that is charged on the
assets.
·
Depreciation of Assets. This charge can vary for a year due to an
increase / decrease in the valuation of assets. These movements
need to be incorporated into the accounts.
·
Financial Reporting Standard 17 Retirement Benefits. The purpose of
this standard is to ensure that the operating costs of providing
retirement benefits to employees are recognised in the accounting
period in which they are earned by the employees. The results of an
actuarial valuation means that adjustments are required.
Appendix ‘1’ (PDF) amends the revised estimates to take
account of the above adjustments. There is no overall effect on the
Authority.
7. Set out below is
a table comparing the revised estimate and the actual expenditure
for the Authority
|
Net Transfer
to/(from) Reserve
|
Service
|
Amended Revised
Estimate
|
Total Provisional
Actual
|
Variance
+Favourable () Adverse
|
|
£’000
|
|
£’000
|
£’000
|
£’000
|
|
|
Directorate of Learning and
Development
|
|
|
|
|
653
|
Education and Schools
|
77,603
|
77,499
|
104
|
|
90
|
Libraries
|
2,483
|
2,483
|
0
|
|
|
Lifelong Learning
|
1,869
|
1,973
|
(104)
|
|
(17)
|
Human Resources
|
(4)
|
(4)
|
0
|
|
|
Social Services
|
|
|
|
|
|
Children’s Services
|
11,533
|
12,669
|
(1,136)
|
|
|
Community Care and Health
|
27,426
|
29,399
|
(1,973)
|
|
|
Youth Offending Team
|
774
|
747
|
27
|
|
|
Service Strategy
|
281
|
427
|
(146)
|
|
(403)
|
Met from Social Service Reserve
|
(1,000)
|
(403)
|
(597)
|
|
(403)
|
Total Social Services
|
39,014
|
42,839
|
(3,825)
|
|
|
Catering
|
1,031
|
1,146
|
(115)
|
|
155
|
Private Sector Housing / Community
Safety
|
3,159
|
2,306
|
853
|
|
|
Directorate of Environmental and
Economic Regeneration
|
|
|
|
|
56
|
Planning and Transportation
|
3,096
|
3,073
|
23
|
|
(215)
|
Economic Development and Leisure
|
5,802
|
5,860
|
(58)
|
|
(110)
|
Visible Services
|
18,639
|
18,612
|
27
|
|
200
|
Building Maintenance
|
23
|
14
|
9
|
|
|
Directorate of Legal and
Regulatory
|
|
|
|
|
100
|
Legal, Democratic and Registrars
|
317
|
306
|
11
|
|
42
|
Regulatory
|
2,258
|
2,257
|
1
|
|
|
Directorate of Finance, Information
Communications Technology (ICT) and Property
|
|
|
|
|
490
|
Finance, ICT and Property
|
(28)
|
(28)
|
0
|
|
4,106
|
General Policy (incl Council Tax Surplus)
|
16,554
|
16,023
|
531
|
|
30
|
Chief Executive
|
0
|
(46)
|
46
|
|
5,177
|
Grand Total
|
171,816
|
174,313
|
(2,497)
|
8. The first column
in the table shows the net amount of money transferred to reserves
less that transferred out. The figure is included in the Total
Provisional Actual expenditure.
9. The main reasons
for the variances are set out in the following paragraphs 10 to
32.
10. Education
and Schools – Net favourable variance of £104k on this service. The
variances result from a number of areas. School transport was
underspent by £199k. This was due to a major re-tender
exercise and rationalisation of routes. It is a one-off
saving due to pay and price increases in future years. There
was also a combined saving on the special needs budget of £239k due
mainly to additional extra-district income and a reduction in
placement costs. There was a net saving of £94k due to
factors such as staff vacancies, reduced pension costs and a
reduction in the required LEA contribution to Better Schools Fund.
After allowing for consultant fees there was also a net
underspend of £299k against the Capital Investment Strategy Budget.
Other minor variances totalled a further net saving of £17k. A
significant overspend of £91k was incurred on the Maternity Budget
and an additional transfer of £653k has been made to the School
Investment Strategy reserve.
11. Libraries –
Net nil variance. This is after an additional transfer to the
Library Fund reserve of £10k towards the cost of a mobile library
vehicle. Other variances were mainly attributable to savings on
premises (£30k) and increased income (£23k), being used to fund
additional expenditure of £43k on books, talking books, DVDs, on
line services, computer software, subscriptions and other materials
in the provision of the new library service within Barry Town
Hall.
12.
Lifelong Learning – Adverse variance £104k net. This was mainly due
to reduced income within the recently restructured Employment
Training Section (£121k), which was partly funded by savings and
increased income within the Community Enterprise Centre (£11k),
along with general savings within the remainder of Lifelong
Learning Services (£6k). The resulting overspend of £104k was
covered by the Education and Schools budget’s favourable
variance.
13. Human
Resources – Net nil
variance. A budgeted transfer from reserves (£52k) was
reduced to £17k mainly attributable to savings on running costs
(£33k) and increased income (£2k).
14. Children’s
Services – Adverse variance £1,136k. This was mainly due to the
cost of placements exceeding the original budget by £1,318k,
overspends on court expenses (£143k), children in need expenditure
(£69k), adoption allowances (£94k) and non-achievement of required
savings (£218k). These were offset by savings on salaries (£199k),
Fostering Costs (£333k) and additional reallocation of grant
funding (£174k). There is continuing pressure on the service and
the savings referred to are not anticipated to carry on into
2007/08.
15. Youth Offending
Team – Favourable Variance £27k. This favourable variance is due to
staff vacancies and savings on general expenses. It was used to
help offset the overall deficit on Social Services.
16. Community Care
and Health – Adverse variance £1,972k. The main reason for the
overspend was the costs of Community Care Packages and Supported
Housing exceeding the budget by £1,113k and £1,556k respectively
and additional costs incurred in running Council owned Residential
Homes (£267k). These were offset by salary savings (£184k)
and more efficient income generation both on Community Care
packages (£404k) and Council Homes (£376k). The adverse variance is
£586k less than was forecast when Revised Estimates were reported,
however as with Children’s Services the underlying expenditure
pressures will continue.
17.
Service Strategy –Adverse variance £146k. This was mainly
attributable to the costs of early retirement for senior members of
staff offset by an underspend on the staffing budget.
18.
Social Services Reserve – It was originally anticipated that there
would be a drawn down of £1,000k from the Fund to balance the
Social Services Budget. However after the drawdown for 2005/2006
and amalgamation of other Social Services Funds only £403k was
available for funding 2006/2007 expenditure.
19.
Catering – Adverse variance £115K. This comprised the
Catering Trading Unit deficit of £124k offset by a saving on
general client running costs of £9k.
20. Private Housing
and Community Safety – Net favourable variance £853k. The
savings mainly arose from vacant posts (£269k),
Homelessness/Section 180 Funding costs (£43k), the Vale Assisted
Tenancy and Spend to Save Scheme (£26k) and Housing Benefit
payments being less than anticipated (£670k). These were offset by
an additional transfer to the General Fund Housing Reserve for
housing initiatives (£155k).
21.
Planning and Transportation – Net favourable variance £23k.
Savings arose from employees (186k), largely due to staff vacancies
and a delay in implementing the new structure in Development
Control; and transportation and other smaller variances (24k).
These savings were offset by an additional transfer to the Economic
Development and Leisure reserve (£100k), primarily to fund repairs
to Barry Leisure Centre pool, and reduced income from Building
Control Fees (35k) and Development Control Fees (£52k).
22.
Economic Development and Leisure – Net adverse variance £58k.
The net adverse variance includes a deficit (£46k) in respect of
Leisure Trading. Other contributing factors were overspending on
Premises (£92k) and other running costs (28k). These were offset by
a saving on employee costs (29k) and additional income of 79k
primarily from Dyffryn and Atlantic Trading Estate. The adverse
variance was funded from savings within the Environmental, Economic
and Regeneration Directorate.
23.
Visible Services – Net favourable variance of £27k. The following
results from the trading units are included – Highways (£22k
surplus), Cleansing (£60k surplus) and Parks (£11k surplus). Other
factors contributing to the favourable variance were savings on
Highways Client operational budgets (£23k); Refuse Disposal costs
being less than budget and income from Trade Waste being higher
than expected (£64k); and savings on Engineers agency staff and
Traffic schemes (£57k). These were offset by an overspending on
Grounds Maintenance (£18k) mainly due to vehicle / supplies and
services costs and an additional transfer to Visible Services
reserve (£192k).
24. Building
Maintenance – Net favourable variance of £9k. The Building Service
Trading Unit and Building Cleaning Security made surpluses of
(£47k) and (£86k) respectively and are included within the
favourable variance. Other contributing factors were savings on
staff costs (£27k) and supplies and services (£49k). These were
offset by additional transfers to the Visible Services reserve
(£160k) and Building Services IT reserve (£40k).
25. Legal &
Democratic Services – Net favourable variance £11k. The variance
was mainly attributable to staff vacancies (£161k) offset by
overspends on supplies and services (£50k) and an additional
transfer to the Legal reserve to cover extra-ordinary external
advice (£100k).
26.
Regulatory Services – Net favourable variance £1k. The
favourable variance was mainly attributable to additional income
under the Licensing Act (£60k) and staff related savings re
Pollution Control (£23k) offset by overspendings on running costs
(£40k) and an additional transfer to the Regulatory Services
reserve (£42k).
27.
Finance, ICT & Property – Net nil variance. The variance was
mainly attributable to savings on office accommodation costs,
particularly at the Town Hall and Provincial House (£36k), staff
related costs (£398k), additional income (£22k) and increased
recharges to capital (£119k). These were offset by an overspend on
running costs (£85k), additional transfers to the Finance and ICT
reserve to fund IT improvements (£225k), the Computer Fund reserve
(£85k) and the Council Building reserve (£180k).
28. General
Policy – Favourable variance £0.531 million. This favourable
variance includes a surplus from Council Tax of £803k. Other
main variances were savings from Corporate Policy Making (£147k),
Precepts (£127k), Corporate Governance (£236k), General Fund
Housing recharge (244k), Loan Charges / Interest (£1.442m), Income
(£48k), Other Supplies and Services (£184k). These were offset by a
transfer to the Visible Services reserve (£1m), Council Building
Fund reserve (£1.4m) and Events reserve (£300k).
29.
Cabinet on the 20th September 2006 approved that
£100,000 of any amount received for the Local Authority Business
Growth Incentive Grant (LABGI) be used to fund bio-diversity
schemes. During the year a sum of £368k was received for LABGI. Of
this sum, £23k was eventually utilised to fund the bio-diversity
schemes and the balance of £345k has been transferred to the
Visible Services Reserve.
30. The
budgeted adjustment of £533k to the Minimum Revenue Provision for
repayment of debt and subsequent transfer of this sum to the
Project Fund has been made.
31. Chief
Executive – Net favourable variance £46k. The favourable variance
was mainly attributable to savings on staff related costs (£56k)
and general running costs (£20k). This is offset by an additional
transfer to reserves in respect of a public opinion survey
(£30k).
32. The net
final overspend of £2.497 million as shown in the table will
decrease the General Fund Reserve. In addition the budgeted
transfer of £2.250M will also be required, making the total amount
to be funded from the General Fund Reserve £4.747M for 2007/08. The
balance at 31 March 2007 is £5.279 million.
Housing Revenue Account
33. Details of
the Housing Revenue Account’s actual expenditure and income for the
financial year 2006/2007 compared to the revised estimate is
attached at
Appendix ‘2’ (PDF) to this report.
34. The Housing Revenue Account
for 2006/07 shows a surplus of £526k compared to the Revised
Estimated surplus of £7k. The working balance now stands at
£3,193k.
35. The main
reasons for the variances are as follows: -
·
Supervision & Management General - £56k - the favourable
variance is largely due to staff vacancies within the Housing
Department and an underspend on supplies and services.
·
Supervision & Management Special - £69k - the favourable
variance is largely due to staff vacancies at the Hostel and estate
staff (eg Cleaners and Wardens) within the Housing Department and a
reduction in the security cover provided at Penarth Heights.
· Bad
Debt Provision has reduced by £27k more than anticipated. This is
due to the continued success of the rent arrears policy.
·
Capital Financing charges were £246k less than originally
estimated. In the future the Capital Finance Charge estimate will
be based on Housing Business Plan calculations, which will be more
accurate.
· Rents
and charges collected - £91k – This favourable variance is due to a
decrease in the number of council houses sold through Right to
Buy.
·
Interest earned was around £30k more than anticipated due to an
increased Housing Revenue Account Reserve balance.
Insurance Fund
36. The total
Insurance Fund comprises of both a provision and reserve. It is
used to pay premiums to external insurance companies and the
settlement of claims. It receives sums charged to service revenue
accounts and income from insurance repayments from claims. Sets out
below are the gross movements on the fund for 2006/07:
£’000
Opening
Balance
3,874
Costs
(1,518)
Income
1,722
Closing
Balance
4,078
Of the closing balance £3,269k is held as a
provision, representing potential liabilities on known claims and
£809k as a reserve for claims not yet made.
Trading Organisations
37. The Trading
Organisations referred to in this section are made up of Visible
and Building Services (Cleansing, Grounds Maintenance, Highways
Maintenance, Building Maintenance, Vehicle Maintenance, Caretaking
& Security and Building Cleaning); Vale Leisure and Vale
Catering Services.
38. The provisional
figures for Visible and Building Services Trading shows an overall
gross surplus of £227k. The details are attached at
Appendix ‘3’ (PDF). A surplus of £60k was made on Cleansing,
and a surplus of £22k has been made on Highways Maintenance. The
surplus on Grounds Maintenance was £11k. The Building
Cleaning/Security Service made a combined surplus of £86k. The
Building Maintenance Trading Unit made a surplus of £47k.
39. As can be seen
all the Trading Units shown above achieved surpluses although under
financial pressures during the year.
40. Vale
Leisure returned a deficit
of £46k. This has been met by a
saving in the Environmental and Economic Regeneration client
budget.
41. Catering Trading
– Adverse variance £124K. The anticipated deficit of £130K as
previously reported was reduced to £124K. The deficit results from
meal numbers having not fully recovered following adverse publicity
in 2005/06, reducing school population and the increased cost of
providing meals in line with the Welsh Assembly Government
nutritional guidelines. This deficit has been transferred to
Catering Client account and offset by a favourable variance of £9K,
leaving a net £115K deficit.
Capital
42. The overall
position on the revised 2006/07 Capital Programme was a net
underspend of £7,842,000. Of this sum, £5,241,000 relates to
Penarth Headland Link. The statement at
Appendix ‘4’ (PDF) details the outturn by scheme.
43. Directorate
of Learning and
Development
The overall outturn for the Directorate of Learning and Development
is an underspend of £314,000. The major variances are
outlined below.
Asset
Renewal
Underspend £69,000
The asset renewal budget for Schools has been used to fund 28
schemes in 2006/07. A large part of the underspend is
required to fund further Disability Discrimination access work and
security works at schools.
Big Lottery and Sports PE
Grant
Underspend £53,000
This grant has been awarded for upgrading
sports facilities within our schools and has been used on six
schemes dating back to 2003/04. The Big Lottery has agreed that any
underspend may be carried forward to continue the schemes in
2007/08.
44. Directorate
of Social Services
The overall outturn for the Directorate of Social Services is an
underspend of £203,000. The major variances are outlined below.
Asset Renewal 2006/07
Underspend £56,000
The asset renewal budget for Social
Services has been used to fund 9 schemes during 2006/07. The
underspend is required to fund retentions and the completion of
windows at Hen Goleg and Penarth Centre.
Flying Start Grant
Underspend £47,000
A late award of grant from the Welsh Assembly
Government meant that a full spend of this money for play equipment
was not possible given the time constraints.
45. Directorate
of Legal, Public Protection and Housing Services
The overall outturn for the Directorate of
Legal Services, Public Protection and Housing is an underspend of
£333,000. The major variance is outlined below.
Harbour View Lease
Repurchase
Underspend £276,000
No purchases have been possible during this
year and so it is requested that the budget be carried forward into
2007/08.
46. Directorate
of Environmental and Economic Regeneration
The overall outturn for the
Directorate of Environmental and Economic Regeneration is
£6,472,000 underspent. The major variances are outlined
below.
Penarth Headland
Link
Underspend
£5,241,0000
Cost increases with this scheme have meant
that on-going funding issues have delayed progress. WAG have frozen
any further funding, awaiting the outcome of the Council’s
investigation of funding options. Depending upon the decision made
regarding future progression of the scheme there is a possibility
that WAG may request a clawback of the grant funding, some
£2,500,000 the Council has received on the Penarth Headland Link
scheme. It is not intended to make a proposal to carry
forward the budget until the uncertainties are
resolved.
Vehicle
Renewal
Underspend £125,000
As previously reported to Cabinet, the Vehicle
Replacement Programme has underspent. This is because a
number of purchases were deferred into 2008/09 as the vehicles were
deemed to be fit for purpose for a further year and as such their
useful life was extended. These vehicles were to be financed
from the Vehicle Replacement Fund.
Active for Life Grant
Underspend
£116,000
This grant was awarded late in the financial
year. A condition of the grant allows that the grant be spent
by December 2007, hence it is requested that the balance be carried
forward into 2007/08.
Cricket Pavillion Parc Bryn Y
Don
Underspend £115,000
Delays due to the requirement of a Great
Crested Newt licence at Parc Bryn Y Don meant that the works
schedule was pushed back in order to avoid the newts breeding
season. As such, the underspend is required to be carried forward
into 2007/08 in order to complete the works programme.
Public Open Space,
Ystradowen
Underspend £109,000
Progression of this scheme was delayed due to
the requirement to obtain a Compulsory Purchase Order for land
acquisition at the site before any works could commence.
Therefore, the underspent budget will be required to progress the
scheme during
2007/08.
47. Policy
The overall outturn for Policy is an underspend of
£520,000. The major variances are outlined below.
Disabled Access Audit &
Improvement
Underspend
£162,000
A programme of access audits was carried out
on Council properties that are open to the public. A strategy
and a works programme for 2007/08 has now been established as
outlined to Cabinet on 23rd May 2007. In order to
carry out the volume of work that has been highlighted in these
access audits it is proposed that the underspend of £162,000 is
carried forward to increase the 2007/08 budget.
OneVale
Underspend £241,000
Works at Provincial House are now complete.
Planning permission is now being sought for siting the OneVale
contact centre at Barry Leisure Centre. The OneVale IT
budgets have underspent pending decisions on the final
specification of the scheme. It is therefore proposed that
the underspend is carried forward to allow any further building
works and the completion of IT equipment/systems purchase in
2007/08.
Reserves
48.
Attached at
Appendix ‘5’ (PDF) are the Authority’s reserves as at
31st March 2007.
49. A reserve is
an appropriation from a revenue account and is not included as part
of the costs of the service until expenditure is eventually
incurred. A reserve does not cover a present obligation or
liability and is a voluntary means of setting aside monies for
future requirements either capital or revenue.
50. A provision
is a charge to revenue and is included as part of the cost of the
relevant service at the point the provision is created. A provision
covers a present obligation or liability that has occurred to a
past event and is compulsory under accounting regulations.
51.
Funds no longer required as reserves may be transferred to the
General Fund to be used for other purposes. In accordance with the
Final Proposals for the Revenue Budget 2007/08 approved by Council
on the on the 14th February 2007, £1.4 m from the
Capital Fund and £2.2m from the project Fund has been transferred
to General Fund Reserve.
52.
The 2007/08 budget also approved that the Director of Finance, ICT
and Property consider the details of the Specific Reserves to be
repaid into the General Reserve and increasing the Early Retirement
Reserve, when preparing Final Accounts for 2006/07 and report to
Cabinet at that time.
53.
It is recommended that the balance of £450,000 on the Licensing
reserve, which is no longer required for the original purposes for
which it was set aside, be transferred into the Early Retirement
Fund.
54.
The balance on the General Fund Reserve at 31st March
2007 is £903k more than anticipated when the budget for 2007/08 was
prepared. Consequently, the amount of money from Specific Reserves
that now needs to be “unearmarked” and repaid into theGeneral
Reserve in order to fund the 2007/08 budget has reduced to £1.8M.
It is still anticipated that a sum of at least £2M will also need
to be repaid into the General Fund Reserve from Specific Reserves
to fund the 2008/09 budget. The following Specific Reserves have
been identified that could be repaid:
|
|
Potential
|
|
|
Transfer
|
|
|
£’000
|
|
Various Service Reserves
|
500
|
|
Waste Management Reserve
|
1,500
|
|
Corporate Reserves
|
300
|
|
Job Evaluation
|
1,000
|
|
Capital Reserves
|
500
|
|
Total
|
3,800
|
55.
It is recommended, however that no transfer is made in 2006/07 from
the funds identified in the above paragraph and that the position
be reconsidered when the 2008/09 budget is prepared,
Financial Implications
56. The General
Fund Balance as at the 31st March 2007 stood at £5.279
million.
57. The
underspend on the revised capital programme in 2006/07 is
£7,842,000. However, £5,241,000 of this underspend relates to the
frozen Penarth Headland Link scheme.
58. The table
below shows how the capital programme has been financed in
2006/07.
|
Source of Funding
|
Projected
Outturn (£000)
|
|
General Capital Funding
|
7,877
|
|
Capital Receipts
|
1,661
|
|
WAG/Lottery/WDA/ ERDF Grants
|
13,365
|
|
Revenue/Reserves
|
5,352
|
|
Other
|
320
|
|
|
|
|
TOTAL
|
28,575
|
59. General Capital Funding - Capital expenditure in the year
was sufficient to cover the General Capital Funding provided by the
Welsh Assembly Government. Where schemes originally planned to be
financed from General Capital Funding have underspent other
schemes, planned to be funded from capital receipts or reserves,
have been substituted in their place.
60. Capital Receipts - As a result of the underspending in
2006/07 an allocation of £2,249,000 is requested as slippage into
2007/08 to fund the completion of schemes as shown in
Appendix ‘6’ (PDF)Of this figure £1,215,000 will be provided
from external sources while the remaining £1,234,000 will be funded
from the capital receipts not utilised in 2006/07. The capital
receipts balance as at 31st March 2007 was £11.28M for the General
Fund. Council on 12th October 2005 has agreed to ring fence £1.4M
of this sum for the Schools Investment Strategy. In addition to
these commitments, totalling £2.634M, there is a current
requirement of £6.34M to fund approved General Fund schemes
included in the 2007/08 Capital Programme. The capital receipts
balance as at 31st March 2007 for Housing Revenue Account (HRA) was
£8.30M and this sum has been taken into consideration in the
strategy for the Council to achieve the Welsh Housing Quality
Standard. £4.31M was received from the sales of assets and mortgage
repayments during 2006/07 as follows:
Sale of Council Houses 1,632
Sale of Land and Buildings 2,440
Mortgage repayments on council house sales 187
Mortgage repayments on private homes 46
61. Major Repairs Allowance - The Major Repairs Allowance (MRA)
is a grant given to the Authority by the Welsh Assembly Government
and can be used for capital expenditure on Housing Revenue Account
(HRA) assets. The Authority’s MRA for 2006/07 was £2,700,000 and
was fully spent during the year. As previously reported to Cabinet
on 21st December 2006 a further £2,700,000 has been allocated for
2007/08 and approval was given that the unspent grant of £2,832,000
from 2005/06 could be brought forward for use in future years.
62. During the year slippage has occurred on schemes. In order
to reduce this, during the 2007/08 budget setting round, managers
of successful capital bids were asked to revisit expenditure
profiles. During 2006/07, non-financial monitoring was provided to
Cabinet on a monthly basis to highlight where there may be
potential delays in schemes. If schemes are likely to slip, the
2007/08 capital programme will be reviewed in order to ascertain
whether schemes can be carried forward into 2008/09. If a scheme,
funded from the Council’s own resources, is not contractually
committed within 18 months of being included in the capital
programme, Cabinet have the authority to withdraw the budget. Once
withdrawn, a new bid will have to be made as part of the budget
setting process for the coming year if the scheme is to be
reintroduced i.e. if a scheme was included in the 2006/07 capital
programme and is not contractually committed by September 2007,
Cabinet could withdraw the budget. This review was part of the
2007/08 budget setting process which commenced in October 2006.
Legal Implications (to include Human Rights Implications)
63. The provisional outturn figures for the Council will be used
in the preparation of the Statement of Accounts, which under the
Accounts and Audit Regulations, must be approved by the 30th June,
2007.
Crime and Disorder Implications
64. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language
issues)
65. There are no equal opportunity implications.
Corporate Service Objectives (to include stakeholder
consultation and voluntary sector implication)
66. To provide sound financial and reliable advice in relation
to all issues affecting the Council including the production of the
statutory accounts.
Policy Framework and Budget
67. Where relevant, recommendations in this report will be
forwarded to Council for approval.
Consultation (including Ward Member Consultation)
68. The appropriate Chief Officers have been consulted on this
report. This report does not require Ward Member consultation.
Relevant Scrutiny Committee
69. Corporate Resources
RECOMMENDATIONS
(1) That the following budgets are amended in 2007/08 to reflect
slippage and are referred to Council for approval.
|
Schemes
|
Current
Budget
2007/08
£000
|
Change to
Budget
£000
|
Revised
Budget
2007/08
£000
|
|
Llanfair School Hall
|
0
|
5
|
5
|
|
Llancarfan School Extension
|
5
|
15
|
20
|
|
Ysgol Bro Morgannwg
|
0
|
24
|
24
|
|
Rhoose Primary Development
|
1153
|
2
|
1155
|
|
Integrated Childrens Centre
|
0
|
20
|
20
|
|
Asset Renewal Schools
|
800
|
70
|
870
|
|
Big Lottery Sports Grant
|
40
|
53
|
93
|
|
School Building Improvement Grt
|
1,574
|
29
|
1,603
|
|
Early Years Grant
|
0
|
7
|
7
|
|
Demountable Library Sully
|
0
|
13
|
13
|
|
Harbour View Lease Repurchases
|
0
|
275
|
275
|
|
Town Centre CCTV Study
|
0
|
17
|
17
|
|
Neighbourhood Renewal Area Assessment
|
0
|
10
|
10
|
|
Barry YMCA Hub
|
0
|
20
|
20
|
|
Supporting older people in own homes
|
232
|
28
|
260
|
|
Refurbishment of Barry Hostel
|
645
|
28
|
673
|
|
31 Rhoose Road Refurbishment
|
4
|
13
|
17
|
|
Social Services Asset Renewal
|
150
|
41
|
191
|
|
Residential respite care for children
|
0
|
2
|
2
|
|
Ystradowen public open space
|
0
|
109
|
109
|
|
Parc Bryn Y Don cricket pavilion
|
355
|
115
|
470
|
|
Bridge Refurbishment
|
1367
|
26
|
1393
|
|
Waste Resource Park Phase 1
|
863
|
47
|
910
|
|
Relocation of Dunraven Beach Rd
|
255
|
33
|
288
|
|
Multi Use Games Area Cadoxton
|
0
|
13
|
13
|
|
Cesspits, Macross
|
0
|
15
|
15
|
|
Non-domestic properties asbestos surveys
|
0
|
68
|
68
|
|
Docks Office Windows Refurb
|
0
|
2
|
2
|
|
Asset Renewal Visible
|
800
|
142
|
942
|
|
Jenner Park perimeter fence
|
0
|
2
|
2
|
|
Dyffryn House feasibility
|
0
|
40
|
40
|
|
Dyffryn Gardens Phase
1
|
510
|
26
|
536
|
|
Dyffryn Gardens Phase 2
|
275
|
83
|
358
|
|
Barry Regeneration Partnership
|
275
|
93
|
368
|
|
Replacement footbridge Barry Island
|
380
|
18
|
398
|
|
Entrepreneurship Centre
|
41
|
59
|
100
|
|
Dyffryn House restoration
|
0
|
7
|
7
|
|
Holton Road/Thompson St Realm
|
940
|
(19)
|
921
|
|
Coastwatch Project/Demolition of Holiday Camp,
Barry Island
|
17
|
130
|
147
|
|
Rhws Community Centre
|
0
|
3
|
3
|
|
Penarth Heights
|
15
|
14
|
29
|
|
Barry Marina Development
|
0
|
9
|
9
|
|
Transport Grant
|
1,373
|
48
|
1,421
|
|
Atlantic Trading Estate signage
|
0
|
10
|
10
|
|
CASH Grants
|
70
|
45
|
115
|
|
Active for Life
|
0
|
117
|
117
|
|
Leisure Asset Renewal
|
150
|
56
|
206
|
|
Disabled Access Audit and Improvement
|
256
|
162
|
418
|
|
Barry Town Hall
|
180
|
(100)
|
80
|
|
Civic Offices IT facility
|
0
|
37
|
37
|
|
Dock View Road compensation
|
0
|
45
|
45
|
|
One Vale
|
1,912
|
241
|
2,153
|
|
Penarth Boiler renewal
|
0
|
2
|
2
|
|
Barry Leisure Centre storage
|
0
|
12
|
12
|
|
Penarth Pier Pavilion
|
0
|
1
|
1
|
|
Network cabling Dock Office
|
0
|
12
|
12
|
|
IT Equipment 2006/07
|
0
|
54
|
54
|
|
TOTAL
|
14,632
|
2,449
|
17,081
|
(2) That
the balance of £450,000 on the Licensing reserve be transferred
into the Early Retirement Fund.
(3)
That the Director of Finance, ICT and Property consider the details
of the Specific Reserves to be repaid into the General Reserve when
preparing the budget for 2008/09 and report to Cabinet at that
time.
(4) That
the remainder of the report and the financial measures taken and
proposed be approved.
(5) That
the Director of Finance, ICT and Property be authorised to make any
adjustments that may be required from further detailed examination,
both prior to and arising from audit.
Reasons for Recommendations
(1) To approve
and refer to Full Council amendments to the 2007/08 & 2008/09
capital programme due to slippage.
(2)
To set aside a prudent amount for the initial costs of early
retirement and redundancy
(3)
To increase the level of General Reserve to enable the funding of
the revenue budget
(4)
To approve the remainder of the report and the financial
measures taken and proposed.
(5) To allow
adjustments by the Director of Finance, ICT and Property prior to
and arising from audit
Background
Papers:
None
Contact
Officer:
Sian Davies
Director of Finance ICT and Property
(01446) 709202
All appropriate Chief Officers have
been consulted on the contents of this report.