Agenda item

Report number HOF220 by the Head of Finance.                          (Enclosure)

Report number HOF220 by the Head of Finance summarised actual spend against the budget and the forecast outturn position as at 30 November 2012

An under spend of £330k was forecast against the general fund revenue account as at 30 November 2012 although the PDG were updated that the latest forecast variance showed a significantly reduced under spend. Key variances included the Olympic torch relay events, which were identified as part of the outturn and funded through the priority reserve.

There had been a reduction in income from markets, particularly Grantham. This was partially attributed to improvement works in Westgate during 2012/13. Members suggested offering stalls to charity and community groups free of charge so that they could advertise their work or raise money. This would fill empty pitches and help raise interest both in the organisation and the market area. Members noted that a review of markets was listed on their work programme for their meeting on 28 March 2013.

Audit fees had been reduced following the appointment of KPMG as the Council’s new external auditors. They would charge a scale fee based on an agreed level of activity, however if additional work was required beyond that agreed level, a day rate would be applied.

Fees for development control and land charge were higher than budgeted however figures for December showed income decreasing once more. Building control income was lower than forecast and was anticipated to remain so for the rest of the financial year.

Additional income had been achieved through charging for the collection of green waste. This had been used to enhance street cleansing, identified as a priority through the SIMALTO exercise the council had previously undertaken. The service also achieved increased income through improving recycling credit income and the extension of the Stamford Civics contract to the end of the financial year.

Environmental services had been scheduled to carry out a private stock survey; this was deferred until 2013/14 and funding from the budget would be set aside at the end of the current year.

A slight increase in income from car parks was reported; the impact of CPE was not yet clear. Councillors provided anecdotal evidence of improvements to parking in Stamford since its introduction. However, members did raise concerns about the number of taxis; particular reference was made to Stamford on Friday nights and suggested that periodic targeted enforcement could help reduce this.

The variance to the forecast position of the Housing Revenue Account was £140k. Key variances highlighted included a void rate of 1.3% compared to a budget of 1.5% which led to projected additional income of £62k. There was a forecast increase of £100k in respect of disabled adaptations due to four major referrals.

The variance of the HRA capital programme was forecast at £288k (6%) against an under spend of £2,046m (30%) at the same point in 2011/12. The general fund for the capital programme had a number of variances which were a result of the complexity of some of the schemes; funding for these projects (including the business innovation centre, station approach and the shop-front scheme) would move across to future years. Members were advised that the Bourne Community Access Point had almost been completed and would be running from March 2013.

The headcount showed a variance of 31.0 below the budgeted level of 626.1.