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Appendix 1

 

Third Quarter Budget Monitoring 2019/20
Economic Regeneration & Leisure Committee
28th January 2020
Lead Officer:  Mark Green
Report Authors: Chris Hartgrove/Paul Holland

 

 

Contents 

 

 


Executive Summary                                                                            Page         2

 

Part A: Third Quarter Revenue Budget 2019/20       

A1)    Revenue Budget: Council                                                        Page         4

A2)    Revenue Budget: Economic Regeneration & Leisure        Page     5

A3)    Revenue Budget: Significant Variances (>£30,000)         Page     6

 

Part B: Third Quarter Capital Budget 2019/20     

B1)    Capital Budget: Council                                                           Page         8

B2)    Capital Budget: Economic Regeneration & Leisure           Page     8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive SummaryThis report provides Members with an overview of progress against the 2019/20 revenue and capital budgets as at 31st December 2019 (i.e. the Quarter 3 cumulative position) for the services falling within the remit of the Economic Regeneration and Leisure Committee (ERL). The analysis also includes both revenue and capital year-end projections (to 31st March 2020) for ERL services, as well as some important context, with consideration given to the Council’s overall position. 

The headlines for Quarter 3 are as follows:

Part A:  Third Quarter Revenue Budget 2019/20

·         Overall net expenditure for the services reporting to ERL is £1.019 million, compared to the profiled budget of £1.094 million, representing an under spend of £75,000. ERL is also expected to remain within its overall net revenue expenditure budget for the year, recording a small under spend of £4,000 against its revised budget of £1.312 million.

 

·         Overall net expenditure for the Council is £12.10 million, compared to the profiled budget of £12.211 million, representing an under spend of £0.111 million. The Council is also expected to remain within its overall net revenue expenditure budget of £20.561 million for the year.

Part B:  Third Quarter Capital Budget 2019/20

·         Capital expenditure for the services reporting to ERL of £532,000 has been incurred against the revised annual budget of £460,000. At this stage, it is anticipated that there will be slippage of £2,000.

 

·         Capital expenditure for the Council overall of £28.754 million has been incurred against an annual revised budget of £42.647 million.

 


 

 

 

 

 

 

 

Part A
Third Quarter Revenue Budget 2019/20
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


A1)   Revenue Budget: Council

A1.1  At the Quarter 3 stage, overall net expenditure for the Council is £12.10 million, compared to a profiled budget of £12.211 million, representing an under spend of £0.111 million. Based on forward projections, the Council is expected to remain within its overall net revenue expenditure budget of £20.561 million for the year.

A1.2  The two charts below show the income and expenditure position for each service committee.

               Chart 1:    MBC Revenue Budget: INCOME BY SERVICE COMMITTEE

Chart 2:    MBC Revenue Budget: EXPENDITURE BY SERVICE COMMITTEE

 

 

A2)   Revenue Budget: Economic Regeneration & Leisure (ERL)

A2.1  Table 1 below provides a detailed summary on the net expenditure position against the revised budgets for ERL services at the end of Quarter 3. The financial figures are presented on an ‘accruals’ basis (e.g. expenditure for goods and services received, but not yet paid for, is included).

Table 1:     ERL Revenue Budget: NET EXPENDITURE

A2.2  The table shows that, at the Quarter 3 stage, overall net expenditure for the services reporting to ERL is £1.019 million, compared to the profiled budget of £1.094 million, representing an under spend of £75,000. Based on forward projections, ERL is expected to remain within its overall net revenue expenditure budget for the year, recording a small under spend of £4,000 against its revised budget of £1.312 million.

A3)   ERL Revenue Budget: Significant Variances (>£30,000)

A3.1  Within the headline figures, there are a number of both adverse and favourable net expenditure variances for individual cost centres. It is important that the implications of variances are considered at an early stage, so that contingency plans can be put in place and, if necessary, be used to inform future financial planning.

A3.2  Table 2 below highlights and provides further detail on the most significant variances i.e. those meeting or exceeding £30,000, either at the end of Quarter 3, or expected to do so by year-end.

Table 2:     ERL Variances >£30,000 (@ Quarter 3)

 

Positive Variance

Q3

Adverse

Variance

Q3

Year End Forecast Variance

Economic Regeneration & Leisure Committee

 

£000s

Community Halls – a range of small underspends have been recorded on controlled running costs, including utilities, and repairs and maintenance.

 

+25

 

+30

Mote Park Adventure Zone - the facility is now open. However, the contract awarded allows for an initial rent free period for the first three months and the final contract value was less than forecast.

 

 

-56

-53

 

Market - the variance represents the combined impact of the Tuesday and Saturday markets not achieving the income target  (£24K) and an overspend on refuse collection ( £14k)

 

 

-36

-43

Economic Development Section - the variance predominantly relates to salary savings due to two vacant posts.

 

+37

 

+34

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part B 

 

 

 

 

 

 

Third Quarter Capital Budget 2019/20 

 

 

 

 


 


B1)   Capital Budget: Council

B1.1  The overall five-year Capital Programme for 2019/20 to 2023/24 was approved by the Council on 27th February 2019. Some capital funding will now come from prudential borrowing as other sources of funding are not sufficient to cover the costs of the Programme, although funding does continue to be available from the New Homes Bonus (NHB). Total borrowing at the Quarter 3 stage is £7.0 million.

B1.2  The revised 2019/20 element of the Capital Programme has a total budget of £42.647 million. At the Quarter 3 stage, capital expenditure of £28.754 million has been incurred.

B2)   Capital Budget: Economic Regeneration & Leisure Committee (ERL)

B2.1  Progress towards the delivery of the 2019/20 ERL element of the Capital Programme at the Quarter 3 stage is presented in Table 3 below. The budget for 2019/20 includes resources brought forward from 2018/19.

B2.2  At the Quarter 3 stage, expenditure of £532,000 has been incurred against a revised budget of £460,000. At this stage, it is anticipated that there will be slippage of £2,000.

Table 3:     ERL Capital Programme 2019/20 (@ Quarter 3)

B2.3  As part of the established financial management process, the MBC Capital Programme is reviewed and re-profiled at the Quarter 3 stage, with some budgets transferred into the following financial year (2020/21 in this case), where capital expenditure is expected to be incurred later than originally forecast. It should be noted that the Committee will be asked to approve/note the carry forward of resources into the next financial year at year end.

B2.4  The most significant re-profiling adjustment to note is:

§  Mote Park & Estates Services Building – The budgets have now been combined as the construction of this facility will be let as a single contract. At this stage, the timing of the building works has not been determined; the forecast assumes they will not begin until April 2020. The combined budget for the overall scheme was originally £2.496 million; £2.340 million of this has been rolled forward into 2020/21.

B2.5  In addition, with regard to Mote Park Adventure Zone, as previously reported to ERL, there was an over spend relating to the additional costs incurred as a result of the sewage leak in the Park that significantly delayed project completion. At the time of reporting, the additional costs are still the subject of an ongoing legal claim, so the over spend continues to be temporarily funded until the outcome of the claim is known.