HERTSMERE BOROUGH COUNCIL INFORMATION FOR OPERATIONS REVIEW COMMITTEE OPERATIONS REVIEW COMMITTEE FINANCIAL MONITORING UPDATE

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1 HERTSMERE BOROUGH COUNCIL INFORMATION FOR OPERATIONS REVIEW COMMITTEE Document Reference no: OR/16/28 Item no: 5 OPERATIONS REVIEW COMMITTEE Date of Meeting: Tuesday 20 September 2016 FINANCIAL MONITORING UPDATE 1 BACKGROUND 1.1 Pages 4 to 5 summarise the main points regarding the financial year 2016/17 Financial Monitoring Report as at 30 June The Finance Monitoring Panel met on 18 July to review these figures. 2 REVENUE 2.1 As at 30 June the year-end forecast for the Council s Revenue Budget 2016/17 shows a favourable variance of 86,140, page The variance to 30 June is 79,247 favourable, page A summary of the 2016/17 financial performance is set out in paragraphs 2.4 and 2.5. More details on the most significant variances are set out in paragraphs 2.6 to

2 2.4 BUDGET YEAR END FORECAST FORECAST Financial Monitoring Position Forecast to Year End FORECAST YEAR as at 30 JUNE 2016 GROSS INCOME NET GROSS FORECAST FORECAST END BUDGET BUDGET BUDGET EXPEND INCOME NET VARIANCE 2016/ / / /17 EXPEND FAV/(ADV) SUMMARY OF PERFORMANCE PLANNING & BUILDING CONTROL 2,068,170 (991,700) 1,076,470 2,105,170 (1,061,700) 1,043,470 33,000 HOUSING SERVICES 1,571,040 (860,000) 711,040 1,640,040 (910,000) 730,040 (19,000) ENVIRONMENTAL HEALTH 1,884,970 (854,100) 1,030,870 1,883,470 (857,600) 1,025,870 5,000 STREET SCENE SERVICES 7,641,370 (3,287,330) 4,354,040 7,633,870 (3,302,830) 4,331,040 23,000 ENGINEERING SERVICES 560,420 (518,880) 41, ,420 (518,880) 41,540 0 ASSET MANAGEMENT 2,127,960 (5,240,720) (3,112,760) 2,149,840 (5,276,430) (3,126,590) 13,830 PARTNERSHIP & COMMUNITY ENGAGEMENT 2,188,960 (5,810) 2,183,150 2,188,960 (5,810) 2,183,150 0 FINANCE & BUSINESS SERVICES 3,093,080 (894,070) 2,199,010 3,092,660 (896,170) 2,196,490 2,520 LEGAL & DEMOCRATIC SERVICES 1,537,150 (294,750) 1,242,400 1,544,850 (309,750) 1,235,100 7,300 HUMAN RESOURCES & CUSTOMER SERVICES 1,351,800 (242,500) 1,109,300 1,344,250 (254,340) 1,089,910 19,390 EXECUTIVE DIRECTORS 646, , , ,020 1,100 AUDIT & ASSURANCE 108, , , ,270 0 NET SERVICE EXPENDITURE 24,779,310 (13,189,860) 11,589,450 24,896,820 (13,393,510) 11,503,310 86,140 CORPORATE EXPENDITURE CENTRAL CONTINGENCY 300, , , ,000 0 GENERAL EXPENSES 131, , , ,850 0 AUDIT FEES, BANK CHARGES NOT RECHARGED 138, , , ,600 0 INVESTMENT INTEREST 0 (220,000) (220,000) 0 (220,000) (220,000) 0 TOTAL NET REQUIREMENT 25,349,760 (13,409,860) 11,939,900 25,467,270 (13,613,510) 11,853,760 86,140 2

3 2.5 Financial Monitoring Position to YEAR END 30 JUNE 2016 PROJECTED BUDGET PROFILED ACTUAL SURPLUS/ SURPLUS 2016/17 BUDGET TO DATE (DEFICIT) /DEFICIT SUMMARY OF PERFORMANCE PLANNING & BUILDING CONTROL 1,076, , ,106 21,534 33,000 HOUSING SERVICES 711, , ,179 (18,641) (19,000) ENVIRONMENTAL HEALTH 1,030, , ,823 5,520 5,000 STREET SCENE SERVICES 4,354,040 1,202,571 1,182,116 20,455 23,000 ENGINEERING SERVICES 41,540 8,196 7, ASSET MANAGEMENT (3,112,760) (186,609) (213,557) 26,948 13,830 PARTNERSHIP & COMMUNITY ENGAGEMENT 2,183, , ,740 (97) 0 FINANCE & BUSINESS SERVICES 2,199, , ,448 1,263 2,520 LEGAL & DEMOCRATIC SERVICES 1,242, , ,521 2,829 7,300 HUMAN RESOURCES & CUSTOMER SERVICES 1,109, , ,122 18,298 19,390 EXECUTIVE DIRECTORS 646, , , ,100 AUDIT & ASSURANCE 108,270 27,068 27, NET SERVICE EXPENDITURE 11,589,450 3,860,568 3,781,372 79,195 86,140 CORPORATE EXPENDITURE CENTRAL CONTINGENCY 300, GENERAL EXPENSES 131,850 69,151 69, AUDIT FEES, BANK CHARGES NOT RECHARGED 138,600 35,510 35, INVESTMENT INTEREST (220,000) (55,000) (55,000) 0 0 TOTAL COSTS 11,939,900 3,910,228 3,830,981 79,247 86,140 3

4 ONLY THE MAJOR VARIANCES WITHIN EACH SERVICE ARE DESCRIBED BELOW AND AS SUCH THEY WILL NOT ADD TO THE TOTAL VARIANCE: 2.6 Planning & Building Control favourable year to date variance 21, , % Development Management has an unfavourable variance. Planning income is above budget 34K however this was offset by 15K overspent on employees expenses due to the employment of agency staff to deal with the higher, than expected, number of applications. 2.7 Housing Services unfavourable year to date variance (18,641). (18,641) (11.47%) Costs for temporary accommodation are currently showing a net over spend of 7K as a result of the continued high demand for this service. Employee expenses are over spent 13K due the termination costs relating to long term sickness in this department which is being covered by agency staff (report EX/16/30 refers). These costs are not expected to rise significantly as this matter has now been resolved. 2.8 Environmental Health favourable year to date variance 5,520. 4, % Miscellaneous Services is showing an overall favourable variance. Within this, vehicle licensing income is currently 3K above budget. However as this is a demand led service, with monthly fluctuations in income, it is too early to predict if this surplus will continue. 4

5 2.9 Street Scene Services favourable year to date variance 20, , % % Waste Services has a favourable variance. Recycling income is slightly down on budget 2K due to lower than anticipated tonnages; however this has been offset by increased income of 5K for bin sales for new developments. There are transport savings on fuel costs due to the price of diesel being lower than the budgeted litre (ex-vat). The average cost per litre is currently 90 pence but this may yet increase. Parking Services had a favourable variance. Income was 16K above budget and there were other small savings of 3K. As a result of the above, an additional 18K was set aside to fund the 5 year capital programme to resurface the Council s car parks Asset Management favourable year to date variance 26,948. 5, % 17, % 6, % Residual Properties have a favourable variance 6K. Net income is above budget as fewer properties, used for temporary accommodation, have been returned. Those that have did not require any major refurbishment resulting in fewer void weeks. Commercial properties have a favourable variance 18K. Income was above budget, by 20K, partially offset by unbudgeted National Non Domestic Rates (NNDR) 2K payable by the Council on vacant commercial properties owned by the Council. Leisure & Community Buildings have a favourable variance of 6K. As NNDR previously paid by the Council, on Bushey Community Centre, is now payable by Hertsmere Leisure Trust Human Resources & Customer Services favourable year to date variance 18,298. 7, % 10, % There was a net saving on Customer Services employees costs 7K due to a vacancy following an officer retiring and secondment of another to a Unit to cover a vacancy. Design & Print Services had additional income 10K from external customers. Contact Officer: Mike Hatton, Senior Business Accountant Ext