Revenue and Capital Forecast Outturn Positions for the Financial ...

REVENUE BUDGET MONITORING REPORT: 2012/13 AGENDA NO: 5Cabinet Date 7 th January 2013Lead CabinetMemberKey DecisionOther DocumentsMain ConsulteesPlanned DatesDivisionalCouncillorOfficer(s)Raymond Theodoulou, Cabinet Member for Finance & ChangeYesMTFS to 22 nd February County CouncilCabinet Members, COMT and Budget Managers.Not ApplicableCounty WideJo Walker, Strategic Finance Director – (01452) 427492.joanna.walker@gloucestershire.gov.ukMark Spilsbury, Head of Finance, (01452) 426127mark.spilsbury@gloucestershire.gov.ukTo provide a year-end forecast for the 2012/13 County Council’s Revenueand Capital Budgets.RecommendationsThat the Cabinet:• Approves the utilisation of £1 million from the forecast under spend toaddress immediate priorities resulting from flood damage, £1 millionfor additional debt redemption, and the transfer of £0.13 millionadditional income to reserves.• Notes the resulting under spend of £2 million (around 0.5% of the netbudget).ResourceImplicationsThese are detailed within the report.

Section A : Revenue Outturn 2012/13 : Forecast Position1. The current year-end revenue position is a forecast under spend of £2 million,following utilisation of £2 million as set out in this report. Details of the forecastoutturn position, analysed by service area, is provided below.ForecastService Area 2012/13BudgetForecastOutturnForecastVarianceVariance%variancereported inNovemberChangeinvariance£000 £000 £000 % £000 £000Adults147,283 149,183 1,900 1.3% 2,100 -200Children & Families91,549 87,765 -3,784 -4.1% -2,350 -1,434Communities &Infrastructure95,696 96,674 978 1.0% 30 948Support Services,Strategy & Challenge22,328 21,768 -560 -2.5% -363 -197Economic Stimulus6,200 6,200 0 0% 0 0TOTAL FORSERVICES363,056 361,590 -1,466 -0.4% -583 -883Technical & CrossCutting30,516 29,950 -566 -1.9% -1,402 836TOTAL393,572 391,540 -2,032 -0.5% -1,985 -47Main reasons for the forecast revenue outturn positions are as follows:AdultsThe forecast outturn position for Adult Services is an over spend of £1.9million. The forecast is comprised of the following main areas of overspendtotalling £4.7 million;

• £1.6 million Learning Disabilities• £2.4million Physical Disabilities• £0.7 million Fairer charging income shortfallThis £4.7 million gross forecast over spend is then reduced to a net £1.9million following mitigating actions as outlined below;• Older People’s External Care under-spend of £0.1 million• Gloucestershire Industrial Services (GIS) £0.6 million• Care Services – Service Level Agreement £0.4 million• Adult Social Care Unallocated budgets £0.9 million• Customer Services under-spend of £0.3 million• Other under-spends across Adult Social Care £0.5 millionThis position continues to be after the full utilisation of the £5.004 millionwhich Cabinet approved in April 2012 should be transferred to reserves in2011/12 to be released and fully utilised in 2012/13, to address the significantrisks in Adult Social Care.It continues to be envisaged that this sum can be managed, but further work isrequired and ongoing, to evaluate the options and their potential effects onfuture years’ savings.The net £1.9 million forecast over spend is around £0.2 million lower thanreported to Cabinet in November 2012.The main movements in the budget position are as a result of the following:• The overall Older People and Physical Disabilities External Carebudget forecast over spend has increased by a net £1.3 million (£0.3million relating to clients with physical disabilities and £1.0 million toOlder People). This is primarily due to an increase in underlyingdemand within older people’s commitments.• The Learning Disabilities External Care budget over spend forecastshave reduced by a net £0.6 million (from £2.2 million to £1.6 million),which reflects a decrease in the provisions for ordinary residence andchildren’s transitions which are now lower than previously forecast.

Children & FamiliesThe current forecast of the year end revenue position for non-DSG fundedservices is an under-spend position of £3.8 million, equivalent to 4.1% of thebudget. DSG funded services are forecast to under-spend by £0.9 million.For non-DSG funded services this under-spend compares to the £2.4 millionreported in November. The major reason for the change is due to increasedunder-spends on home to school transport and external agency placements.The areas of under spend relating to Children and Families are:• Providing good quality school places: Home to school transport underspendof £1.7 million (11.8% of budget). The variance reflects last year’sunder-spend and following a review of routes from September there hasbeen a further reduction in pupil entitlements resulting in an increase in theunder- spend• Early Years: Commissioning of early years services under-spend of £0.32million (3.2% of budget). The variance is due to the tendering and set uptimescales for services which means that only six month’s spend will occurthis year.• Commissioning function: Contingencies held to offset the impact of futureAcademy adjustments totalling £0.24 million. Non-DSG budgets wereadjusted at the beginning of the year to reflect the receipt of buy-backincome and lower commitments against the deferred pension budget.• Looked After Children: the number of external agency residential andfoster care placements continues to be below budget resulting in an underspendof £0.5 million. This has been partly offset by the cost of allowancesdue to an increase in in-house foster care placements.• Young people’s support: an under-spend of £0.26 million includesadditional income, staff savings from unfilled posts as well as lower thananticipated expenditure against young people’s expenses.

• Improving outcomes in schools and academies – an under-spend of £0.16million is due to staff savings from a number of vacancies acrosseducation, performance and intervention.• Minor under spends in other budget areas totalling £0.6 million.Community and InfrastructureThe forecast outturn position for Community and Infrastructure is an overspend of £0.978 million, following additional expenditure on flood relatedworks as set out in this report . The main variations are:• The under delivery of the Libraries savings target of £0.4 million, aspreviously agreed by Cabinet.• An under spend on Waste Management of £0.35 million, primarily due tophased District service changes, meaning that the pump priming, projectand communications support will not be incurred in this financial year.• It is proposed that £1 million is invested into remedial work on the highwayfollowing a needs assessment of the damage to the network from floodingin December, which would be allocated to address immediate priorities.Strategy & Challenge, Support ServicesThe forecast position is a £0.56 million under-spend primarily due to the earlydelivery of Meeting the Challenge savings and vacancy management andfollows a £0.13 million transferred to reserves.Technical and Corporate budgetsThe Technical & Corporate year end forecast position is a net under-spend of£0.6 million. This under spend relates primarily to the interest credits budgetand general contingencies generating a £1.6 million under spend. It isproposed to use £1 million for additional debt redemption in line with thecouncil’s policy to reduce debt.