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APPENDIX 1 – THIRD QUARTER BUDGET MONITORING
 

 

 


Contents

 

Part A: Third Quarter Revenue Budget 2023/24

    

A1)    Revenue Budget   

A2)    Significant Variances                                           

                                                                 

Part B: Third Quarter Capital Budget 2023/24    

B1)    Capital Budget  

B2)    Significant Variances                                                          

 

 

 

 

 

                                                  

Part A - Third Quarter Revenue Budget 2023/24A1)  Revenue Budget: Communities, Leisure & Arts (CLA) PAC

A2.1  The table below provides a detailed summary of the budgeted net expenditure position for the services reporting directly into CLA PAC at the end of Quarter 3. The financial figures are presented on an accruals basis (i.e. expenditure for goods and services received, but not yet paid for, is included). The budgets used are the revised estimates for 2023/24.

A2.2  This table now shows the variance split between expenditure and income to give more of an insight into the nature of the variance.

 

 

CLA Revenue Budget: NET EXPENDITURE (@ 3rd Quarter 2023/24)

These budget areas are all covered by the Cabinet Member for Communities, Leisure & Arts.

 

A2)  CLA Revenue Budget: Significant Variances

A2.1  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.  Variances will be reported to each of the Policy Advisory Committees on a quarterly basis throughout 2023/24.

A2.2  The table below highlights and provides further detail on the most significant variances at the end of Quarter 3.

CLA PAC Variances (@ 3rd Quarter 2023/24)

 

Positive Variance

Q3

Adverse

Variance

Q3

Year End Forecast Variance

 

Communities, Leisure & Arts

£000

Leisure Centre - Under the terms of the current contract with the operator the Council is responsible for excess utility costs, and with utility prices continuing to be at a high level this is reflected in this overspend.

 

-54

-80

Lockmeadow Complex - A number of units at the complex have fallen vacant during the period, leading to a shortfall against budget.  However, progress has been made in identifying new tenants.  A tenant offering virtual reality experiences has moved one of the vacant units.  The former David Lloyd unit now operates as the Lockmeadow Health Club, under the same management as the council’s leisure centre.  The Club has built up membership numbers quickly although running costs are proving higher than expected.  Head of Terms have been agreed with a prospective tenant at the former Frankie & Benny’s and although there has been delays in finalising the lease it is expected that the unit will be occupied shortly.  Work is under way to clear the former Feathers unit to make it more marketable.  Note that the business case for the Lockmeadow acquisition anticipated that at the end of existing leases there would be a period during which these units would be non-income producing, so the adverse variance does not alter the overall financial basis of the acquisition.

 

-551

-480

 

 

 

 

 

 

 

 

 

 

Part B - Third Quarter Capital Budget 2023/24B1)  Capital Budget 2023/24 (@ 3rd Quarter 2023/24)

 

B2)  Capital Budget Variances (@ 3rd Quarter 2023/24)

 

Communities, Leisure & Arts

Museum Development Plan – Further works are planned for the new Archaeology Gallery in the final quarter, which will take the cost of the project over the approved budget for the year in the capital programme. However, this was anticipated as external funding had been secured to cover these costs.

Leisure Provision – The extension to the contract for the management of the centre has now been agreed, and subject to signing it is anticipated that capital works can proceed as soon as possible, so there could be spend in the final quarter of the year, although this could slip into 2024/25.

Riverside Walk Works – This project has now been subsumed into plans for Town Centre improvement works, including upgrades to lighting in the Town Centre.  The budget will therefore be carried forward to 2024/25.