Cabinet Agenda Item 11 Date: 10 December 2012 - fp 1190

Transcription

Cabinet
Agenda Item 11
Date: 10 December 2012
Subject:
Financial Report 2012/13 – October 2012
- fp 1190
Lead officer: Paul Dale, Interim Assistant Director of Finance
Lead member: Mark Allison, Cabinet Member for Finance
Urgent report:
Reason for urgency: The chair has approved the submission of this report as a matter of urgency as
it provides the latest available information on the Financial Monitoring for October 2012 and requires
consideration of issues relating to the Budget management. It is important that this consideration is not
delayed.
Recommendations:
A. That Cabinet note the financial reporting data relating to revenue budgetary control, showing a
forecast underspend at year end of £5.101m after a transfer of £631,000 to the capital financing
reserve. (£5.196m underspend reported last month); capital reporting and an update on corporate
items and consider any relevant action that Cabinet wish to take in respect of variations.
B. That Cabinet approve the Virements and re-profiling contained in appendices 5a to c, totaling
£(985,160) in 2012/13 and £1,455,960 in 2013/14
C. That Cabinet approve the virement of £243,870 from the CSF centrally retained code to ART
residential placements in order to align the budgets to the actual expenditure.
D. That Cabinet note the proposals to review departmental risk registers
E. That Cabinet note the content of the Debt Management Report at Appendix 6
1.
PURPOSE OF REPORT AND EXECUTIVE SUMMARY
1.1
This is the regular financial monitoring report for 2012/13 presented to Cabinet in line with the
financial reporting timetable. It is the expenditure and income as at 31st October 2012.
This financial monitoring report provides:•
•
•
The latest budgetary control information on revenue expenditure and income, forecasting a year
end underspend of £5.101m (£5.196m underspend reported last month);
An update on the capital programme and detailed monitoring information;
An update on Corporate Items in the budget 2012/13;
2.
2012/13 FORECAST OUTTURN BASED UPON LATEST AVAILABLE DATA
2.1
Executive summary - As at October, the forecast is expected to be a net £5.101m underspend
compared to the current budget (£5.196m underspend reported last month).
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31
Summary Position as at 31st October
2012
Department
3A.Corporate Services
3B.Children, Schools and
Families
3C.Community and Housing
3D.Environment &
Regeneration
NET SERVICE EXPENDITURE
3E.Corporate Items
Impact of Capital on revenue
budget
Transfer to Capital financing
reserve
Transfer to Closing the Gap
Reserve
Other Central budgets
Levies
TOTAL CORPORATE
PROVISIONS
TOTAL GENERAL FUND
FUNDING
Grants
Council Tax and Collection
Fund
FUNDING
NET
Original
Budget
2012/13
£000s
Current
Budget
2012/13
£000s
Full Year
Forecast
(Oct.)
£000s
Forecast
Variance
at year
end
(Oct.)
£000s
Forecast
Variance
at year
end
(Sept.)
£000s
10,256
10,533
10,753
220
207
42,366
60,223
42,124
60,133
43,041
58,703
917
-1,430
655
-1,362
28,008
140,853
27,707
140,497
27,837
140,334
130
-163
238
-261
14,080
0
14,080
13,449
-631
-631
0
631
631
631
5,738
5,738
5,738
0
0
-5,983
-5,627
-10,565
-4,938
-4,935
880
14,715
880
15,071
880
10,133
0
-4,938
0
-4,935
155,568
155,568
150,467
-5,101
-5,196
-68,888
-68,888
-68,888
0
0
-86,680
155,568
-86,680
155,568
-86,680
0
0
-155,568
0
0
0
0
-5,101
-5,101
-5,196
The spending position is after transfers to and from reserves which are included above.
A detailed table is provided as Appendix 1.
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32
The following table shows the summary position for October, in subjective format.
Expenditure
Employees
Premises Related Expenditure
Transport Related Expenditure
Current
Budget
2012/13
Year to
Date
Budget
(Oct)
Year to
Date Actual
(Oct)
Full Year
Forecast
(Oct)
Forecast
Variance at
year end
(Oct)
£000
£000
£000
£000
£000
85,620
49,919
50,136
86,202
582
8,902
5,306
3,775
8,696
(206)
240
10,947
5,687
5,903
11,187
Supplies and Services
155,540
89,220
81,675
155,757
217
Third Party Payments
84,469
46,708
43,798
84,241
(228)
Transfer Payments
112,648
4,745
4,588
112,643
(5)
Support Services
33,743
405
596
33,743
0
Depreciation and Impairment Losses
13,920
20
0
13,920
0
Corporate Provisions
15,071
2,846
763
10,133
(4,938)
520,861
204,856
191,234
516,522
(4,338)
(258,370)
(8,233)
(8,367)
(258,489)
(119)
GROSS EXPENDITURE
Income
Government Grants
Other Grants, Reimbursements and
Contribs
Customer and Client Receipts
Interest
Recharges
Balances
GROSS INCOME
NET EXPENDITURE
(15,716)
(6,124)
(6,093)
(15,380)
336
(52,487)
(27,741)
(29,631)
(53,467)
(980)
(44)
0
0
(44)
0
(35,323)
(635)
(573)
(35,323)
0
(3,352)
(1,785)
(1,730)
(3,352)
0
(365,291)
(44,518)
(46,394)
(366,055)
(763)
155,570
160,338
144,840
150,467
(5,101)
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33
Chart 1 below shows the forecast year end variance for departmental expenditure with a comparison
against 2011/12.
Service Expenditure - Forecast Year End Variance
2,000
1,000
0
£'000
March
February
January
December
November
October
September
August
July
June
May
-1,000
Service Expenditure
12/13
Service Expenditure
11/12
-2,000
-3,000
-4,000
-5,000
-6,000
Chart 2 shows the forecast year end variance for corporate provisions with a comparison against
2011/12.
Corporate Provisions - Year End Forecast Variance
0
February
January
December
November
October
September
August
July
June
May
-1,000
£'000
-2,000
12/13 FY Forecast
-3,000
11/12 FY Forecast
-4,000
-5,000
-6,000
-4-
34
Charts showing the forecast year end variance for each department with a comparison against
2011/12 are attached as Appendix 8.
The table below shows the extent of the reduction in forecasts for each period to the 11/12 year end.
Service Departments need to ensure their current year projections are substantially more robust than
was the case in 2011/12.
Variance Reported in 2011/12
Waste
Operations
Waste
Services
Total Waste
Children’s
Social Care
Adult Social
Care
Total Big 3
Other
Services
Total
Budget
£'000
JUL
£'000
AUG
£'000
SEP
£'000
OCT
£'000
NOV
£'000
DEC
£'000
JAN
£'000
FEB
£'000
OUT- TURN
£'000
9,021
309
17
-583
-583
-625
-652
-739
-781
-975
9,173
18,194
-13
296
-1,097
-1,080
-1,126
-1,709
-1,126
-1,709
-1,012
-1,637
-1,030
-1,683
-1,093
-1,832
-1,088
-1,869
-1,646
-2,621
12,544
-300
-300
-400
-170
-309
-344
-747
-799
-1,129
54,733
-462
-462
-492
-1,683
-1,693
-2,254
-2,556
-2,726
-2,864
85,471
-466
-1,842
-2,601
-3,562
-3,639
-4,281
-5,135
-5,394
-6,614
58,537
-944
733
536
115
-186
-695
-1,264
-849
-542
144,008
-1,410
-1,109
-2,065
-3,447
-3,825
-4,976
-6,399
-6,243
-7,156
3,000
2,002
2,135
2,135
2,135
1,887
1,889
1,889
2,025
1,590
893
70
-1,312
-1,690
-3,089
-4,510
-4,354
-5,131
Redundancy
Total
144,008
The table below shows the forecast variation for the same services in the current year
Variation in forecast against budget
2012/13
£'000
-282
-54
-875
June
£'000
July
£'000
Aug
£'000
Sep
£'000
Oct
£'000
-860
-26
-1,344
-783
150
-1,028
-935
362
-1,206
-698
327
-1,153
-698
329
-1,185
-1,211
-2,230
-1,661
-1,779
-1,524
-1,554
May
Total Waste
Children’s Social care
Adult Social care
Variation on "Big 3"
Other departmental expenditure
Variation from budget
96
-440
325
460
1,263
1,391
-1,115
-2,670
-1,338
-1,319
-261
-163
If managers current projections are accepted, the pattern of under and overspending appears to be
changing in 2012/13,
The main 3 areas which have produced the large under spending in the past 2 years are currently
forecasting an under spend of £1.5m compared to a forecast of £3.5m at the same stage last year.
However, in 2011/12 the actual under spend was more than £3m greater than the October monitoring
suggested and so some caution needs to be exercised before accepting this..
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35
It should be noted that a significant overspending is now being forecast elsewhere in the budget that
essentially offsets the under spending that is suggested for the “big 3” services. The table below
highlights the major variances in the “other category”. There are clearly some significant variations here
that will need action taken to eliminate them in future years or re align budgets to fund them
Corporate Services income shortfalls
HR Recharges to school
Corporate Services Offsetting items
General Fund Education
Housing General Fund
Sustainable Communities
Highways etc
Other
£'000
437
156
(373)
620
(276)
339
334
154
Total
1391
3.
DEPARTMENTAL SUMMARY OF CURRENT POSITION
(A) Corporate Services Department
2012/13
Current
Budget
Full year
Forecast
October
Forecast
variance
at year
end (Oct)
Forecast
variance
at year
end (Sep)
2011/12
Variance
at year
end
£000
£000
£000
£000
£000
Business Improvement
Infrastructure &
Transactions
1,821
1,815
(5)
0
47
8,974
8,964
(10)
(38)
Resources
7,074
6,896
(178)
(30)
71
(122)
Human Resources
1,797
1,952
155
205
(51)
Corporate Governance
4,407
4,368
(39)
(42)
(140)
403
730
327
326
29
1,184
1,155
(29)
(215)
1,700
25,660
25,880
220
207
1,534
Customer Services
Corporate Items
including redundancy
costs
Total (controllable)
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36
Overview
At period 7 the Corporate Services department is forecasting an overspend of £220k.
The main variances are summarised in the table below.
Budget
£000
Oct
forecast
varianc
e
£000
Sept
forecast
variance
£000
Human Resources
School’s SLA
Agilisys contract costs
Other costs
(444)
349
1,892
156
91
(92)
Total Human Resources
1,797
155
Resources
Audit Fee
Other costs
416
6,658
(166)
(12)
(66)
36
7,074
(178)
(30)
(199)
1,030
(887)
100
100
237
112
100
237
459
(110)
(123)
403
327
326
Total Resources
Customer Services
Corporate Communications Income
Shortfall on recovery of court costs
Underachievement of bailiff’s
income
Other costs
Total Customer Services
12/13
Savings
£000
156
91 59 -saving
(42) on new
payroll
205 contract
not
achieved
Human Resources (HR) – forecast overspend £155k
As reported last month, the payroll service provided by Agilisys is forecasting an overspend of
£91k. This is due to 30% of the workforce requiring paper payslips which results in an additional
unbudgeted cost and the requirement of the business objects module of the iTrent system. There
is also a shortfall on the Schools SLA income of £156k due to a reduction in price and a change
in the basis of charging.
This overspend is partially offset by an underspend in Learning and Development training.
The HR managers are addressing the above overspend by holding vacancies where possible,
reviewing the structure of the Central Operation Team and reviewing the pricing of all Schools
SLA. A clear strategy for balancing these budgets for 2013/14 is needed.
Customer Services – forecast overspend £327k
The reasons for the overspend remain the same as previously reported:
Corporate Communications sponsorship, advertising and filming income is considered
unachievable and a shortfall of £100k is expected.
An underachievement of Bailiffs income of £237k is expected.
-7-
37
A £100k shortfall is projected on recovery of court costs. This is partly due to the reduction of
court dates since transferring from Wimbledon to Richmond Magistrates court. We have only
been given one hearing per month and at Wimbledon we could have two in the early part of the
year.
The above forecast overspends are partly offset by forecast overachievement of income in the
Registrars office (£46k) and an underspend on some vacant posts (£100k). A clear strategy for
balancing these budgets for 2013/14 is needed.
Resources – forecast underspend £178k
Following the appointment of Ernst & Young as the Council’s external auditors (to replace the
Audit Commission), there is a reduction in the audit fee and an underspend of circa £166k is
expected for 2012/13.
Corporate Items – forecast underspend £29k
The corporate items budget underspend has reduced from last month due to £75k of planned
activity on labeling and data security and some further redundancy costs.
Management Action
Budget managers are working closely with finance officers to reduce spend where possible to
address the above cost pressures.
(B)
Children, Schools and Families
Children, Schools and
Families
(Non-DSG)
2012/13
Current
Budget
£000
Commissioning, Strategy
and Performance
Education
Social Care and Youth
Inclusion
PFI
Redundancy costs
Total excluding
overheads
Full year
Forecast
Forecast
Forecast
Variance
Variance
(as at Oct) at yearend at yearend
(as at Oct) (as at Sep)
£000
£000
£000
2011/12
Variance
at year-end
£000
7,645
10,061
7,990
10,316
345
255
78
262
(135)
(11)
11,517
6,941
2,019
11,846
6,941
2,007
329
0
(12)
327
0
(12)
(1,115)
22
150
38,183
39,100
917
655
(1,089)
Overview
Detailed analysis of budgets as at the end of October 2012 by departmental budget managers show a
number of over and underspends that combine to forecast a net overspend of £917k on local authority
funded services for 2012/13. This includes £328k and £52k (£380k) of once off non-recurrent spend
detailed further below.
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38
DSG funded services are forecast to underspend by £1,688k but these budgets are not within the
council’s general fund and such underspends cannot be offset against overspends on local authority
funded budgets.
Local Authority Funded Services
The key variances are shown in the following table.
Budget October September
Description
£000
£000
£000
Independent fostering and residential placements (ART)
4,971
49
102
Re-classification of capital as revenue cost
50
365
37
Various other small over and underspends
2,624
(67)
(61)
Subtotal Commissioning, Strategy and Performance
7,645
345
78
Direct and Discretionary payments &S17
231
129
161
SEN and FE transport
2,917
57
61
6,817
69
40
Subtotal Education
9,965
255
262
Special guardianship orders
112
188
188
Section 17
36
61
112
Staffing
612
55
54
10,853
25
(27)
Subtotal Children’s Social Care and Youth Inclusion
11,613
329
327
Subtotal PFI
6,941
0
0
Subtotal Redundancy cost
2,019
(12)
(12)
Grand total Children, Schools and Families
38,183
917
655
Heads of service across all three divisions of CSF manage a number of volatile budgets, which require
continuous and careful demand management. Significant cost pressures and underspends identified to
date are detailed below:
Commissioning, Strategy and Performance Division
•
Pressure on fostering and residential placement costs continue as a result of the nature of cases.
The net position includes ongoing pressures in independent agency fostering and placements for
looked after children, offset by underspends on in-house fostering and mother and baby budgets,
the residual overspend amounting to some £49k.
•
In order to comply with the relevant accounting code of practice, the council identified £328k of
one-off capital expenditure for relocation of temporary classrooms that was reclassified as
revenue resulting in an overall overspend of £365k. There is an additional £124k of capital
expenditure items that is still under review which could further increase this estimate. CSF and
Corporate Finance officers are looking further at the implications of the reclassification for future
schemes.
•
There are various other small over and underspends predicted across the division totalling £67k
underspend. This, combine with the items described above, equals the reported divisional
overspend forecast of £345k.
-9-
39
Education Division
•
The SEN and Disability integrated service is forecasting overspends of £129k on their direct;
discretionary; and Section 17 payments, due to increased numbers of clients reflecting rising
numbers of children with complex needs being supported in this way. These payments, however
often prevent higher cost interventions being required.
•
SEN and FE transport cost are expected to overspend by £57k due to the increased number of
service users, although work continues to ensure the most cost effective routing for individual
young people and a revised policy is proposed for 2013.
•
overspend. This, combine with the items described above, equals the reported divisional
overspend forecast of 255k.
Children’s Social Care and Youth Inclusion
•
Regarding allowances including SGOs, this figure includes the sum of £117k relating to a court
required increase as a result of a judicial review, which was backdated to 6 August 2010,
therefore at this time we estimate £52k of this overspend will be one-off. Work continues to
undertake individual assessments to firm up the historic and recurrent figures
•
The Section 17 budgets are forecast to overspend by £61k for the current financial year. This is
due to increased demand in the Access and Assessment, Children in Need, and 16 Plus teams.
These costs include “no recourse to public funds” (NRTPF) cases, which are in part offset by
underspends resulting from provision for unaccompanied asylum seekers.
•
Various sections are expecting staffing pressures due to increased caseloads and agency staff
cover to maintain safe caseloads. The net estimated overspend is £55k.
•
Commissioning savings at Leyton Road are expected to result in an overall underspend for the
year of £60k.
•
Adoption allowance costs have increased to secure appropriate placements for young people with
complex needs, resulting in an expected overspend of £39k.
•
Cost pressures of £81k were identified during 2011/12 relating to maternity cover. Funding for this
one-off cost was budgeted for through reserves, but it is more appropriate for these costs to be
met from in-year resources if possible. The director of Corporate Services will review reserves at
year-end.
•
overspend. This, combined with the significant item described above, equals the reported
divisional overspend forecast of £329k.
- 10 -
40
•
Changes to the Legal Aid, Sentencing and Punishment of Offender (LASPO) Act 2012 coming
into force in December 2012 will introduce a new remand framework. Financial responsibility for
remands to youth detention accommodation will transfer from the Youth Justice Board (YJB) to
Local Authorities. The current funding transfer proposal from the YJB to the LA to fund this
transfer is not sufficient to cover the expected cost. This proposal is in its consultation stage but
the department is anticipating a cost pressure for part of this year which could lead to
overspending in the current year. It is not possible to estimate the in year or full-year effect of this
pressure for 2013/14 as it is dependant on the formula used for distributing national funding and
the then number of placements, neither which is known, offset by the funding transfer which is
still under consultation.
Dedicated Schools Grant
Based on current client costs, independent residential SEN placements are expected to underspend by
£646k. The current client costs do not build in contingencies for new assessments towards the end of
the financial year or the possibility of any tribunal cases.
Implementing the strategy to increase in-borough SEN provision is delivering reduced spend on out of
borough placements, and increased income from other boroughs, by charging for out of borough
children placed in Merton schools. The current forecasts indicate a net underspend on recoupment
activities of £1,042k. The Government is changing the SEN recoupment system from 13/14 and
introducing a new funding model for special schools.
Management Action
CSF DMT regularly review spend across the board and have deep dive reviews of volatile budgets such
as SEN Transport and C&YP placements budgets across education and social care. Our ART service is
working hard to negotiate down the costs of Individual placements and our work with our consortium
partners continues including piloting the care cost calculator.
We are targeting our work even more sharply to prevent high cost interventions where possible and are
reshaping our early intervention and prevention services to ensure maximum impact and best use of the
resources available.
CSF managers are working closely with finance staff to continue to make forecasting more robust, and
will continue to reduce spend where possible to address cost pressures that arise throughout the year.
Transfer of placement budgets
Due to the unpredictable nature of caseloads, it is not possible to identify which services will be required
in the beginning of a financial year. As part of 2012/13 budget setting, the department identified £243k of
funding to support the increased demand in Looked After Children services. This budget was kept
centrally until we were able to identify the service area where these costs would be incurred. Cabinet are
herby asked to approve the virement of £243,870 from the centrally retained code to ART residential
placements in order to align the budgets to the actual expenditure.
- 11 -
41
(C)
Community and Housing
As at end of October, C&H is forecast to under-spend by £1.430m.
Community and
Housing
Access and
Assessment
Commissioning
Direct Provision
Directorate
Adult Social Care
Libraries and Heritage
Merton Adult Education
Total (controllable)
2012/13
Current
Budget
Full Year
Forecast
(Oct)
Forecast
Variance
(Oct)
Forecast
Variance
(Sep)
2011/12
Variance
at year end
£000
40,806
£000
39,730
£000
(1,076)
£000
(1,066)
£000
(1,643)
5,239
4,832
847
51,724
2,471
(12)
1,263
55,446
5,044
4,915
850
50,539
2,502
(12)
987
54,016
(195)
83
3
(1,185)
31
0
(276)
(1,430)
(184)
97
0
(1,153)
22
0
(232)
(1,363)
(698)
(463)
(62)
(2,866)
8
107
(391)
(3,142)
The main variances to report are summarised below, the majority of the under-spend is income.
Placements budget is over-spending, but at this stage this is offset by other under-spends within A&A.
Forecast
Variance
(Oct)
Forecast
Variance
(Sep)
Access & Assessment
Client Contribution
PCT Contribution
Total over-achievement of Income
Miles Re-ablement Service
Other A&A Net under-spends
Gross Placements over-spend
Total A&A under-spend
Other C&H under-spend
£000
£000
(891)
(139)
(1,030)
(193)
(378)
525
(1076)
(354)
(893)
(139)
(1,032)
(202)
(365)
533
(1066)
(297)
TOTAL FORECAST UNDERSPEND C&H
(1,430)
(1,363)
Savings
not yet
achieved
£000
526
526
Commissioning
The projected under spend in Commissioning of £195k is due to under-spend of the supporting people
grant £91k, reduction in the contribution to Voluntary Organisation contracts and grants of £58k salaries
due to delay in recruitment £46k
Direct Provision is forecast to overspend by £83k.
Mainly due to additional staff required at Glebelands and new service at Haselmere Avenue.
There is also additional income from a full cost client
- 12 -
42
Housing - £276k
£189k -Preventing homelessness grant, however the proposed welfare reform changes may impact
upon the use of this fund and it remains difficult to accurately predict whether the welfare reform will see
an increased use of this grant.
£51k net additional housing benefit and client contribution to bed and breakfast accommodation
£41k forecast under-spend on repossession and eviction budget.
Libraries £31k forecast over-spend that will need action to contain within existing budgets.
Merton Adult Education (MAE) is forecast to breakeven, however given the need to implement a
package of savings and a track record of overspending in recent years this needs to be viewed with
some caution at this stage, unless firm management action is taken.
The budget for the new academic year is being re-profiled.
Overview
Placements
The total gross placement budget for 2012/13 is £38.465m; this includes £1m growth allocated in setting the
budget and savings of £3.5m.
The impact of the savings on the budget position for 2012/13 and future years is being monitored
closely.
The table below identifies the movement in care package numbers:
Activity Data – Care Package Numbers
Service Area
Mental Health
Physical and Sensory
Learning Disabilities
Older People
No of Care
Packages as
at
October
2012
175
(4)
£1,653
278
275
(3)
£3,673
357
374
17
£12,406
1,681
1634
(47)
£20,656
7
10
3
£211
22
21
(1)
£259
Substance Misuse
No recourse to public funds
Total Yearly
Commitment
@ Oct 12
£000
Increase/
decrease
since
Budget
Setting
No of Care
Packages
as at
October
2011
(budget
setting
£000
179
Other Placement Expenditure
TOTAL FORECAST UNDERSPEND A&A
£132
2,524
2,489
(35)
£38,990
Pressures
Based on current packages within care-first , gross placement expenditure budget is forecast to over-spend by
£525k at Period 7. Savings progress is being reviewed and an update will be provided next month. As at Period 6
, £526,00 that was proposed in this area for 2012/13 has not yet been achieved.
Trend analysis of placement expenditure over the last 5 financial years, indicates that placement
expenditure increases by an average of 1.62% between September and the end of the financial year.
It is estimated that spend on Adult Social care placements may increase by £630k, especially due to
winter pressures.
Discussions are being held with the PCT agree transfer of resources and to develop this year’s
framework .The S256 agreement is required from NHS London as part of the governance process. This
is particularly important with Winter pressures ahead of us and the need to reduce demand on Hospital
capacity and confirm funding available. The net impact of this needs to be modelled.
- 13 -
43
Management Action to date
Adult Social Care
Managers have been requested to review the placement expenditure data with a view to improving the
accuracy of the forecast.
The monitoring of income is a key budget area where enhancement of the monitoring is being
developed.
The Temporary Accommodation budget is being reviewed by the budget manager. The forecast for
temporary accommodation does not seem to be consistent with actual spend to date as all invoices have
not been accounted for.
At the same time last year the Adult Social Care budget was forecast to under-spend by £1.684m. The
actual under spent in 2011/12 was £2.9m. This broadly splits as £1.4m for additional income and £1.5m
for lower expenditure. Of the under-spend, £800,000 of unbudgeted income was taken towards
balancing the budget in 2012/13. The actual extent of continuing under spending is currently being
investigated by the Director. The current adult social care forecast under-spend of £1.446m includes an
estimated £0.891m overachievement of income. It is important that as one of the major contributors to
recent under spending that the extent of any structural budgetary overprovision is clarified and dealt with
through the future budget setting process.
- 14 -
44
(D)
Environment & Regeneration
Description
2012/13
Current
Budget
£000
Shortfall in Building & Development Control income
Parking Services
Other
Total for Public Protection & Development
Shortfall in Greenspaces income
Public Protection & Development
(PP&D)
Street Scene & Waste
Safer Merton
Total Excluding Overheads
Forecast
Variance at
year end
(Oct)
£000
435
(137)
(120)
178
127
Forecast
Variance at
year end
(Sept)
£000
2011/12
Variance
at year end
£000
Forecast
Variance at
year end
(Sept)
£000
395
(5)
(156)
234
174
2012/13
Current
Budget
£000
Full year
Forecast
(Oct)
£000
(1,972)
(11,024)
6,715
(6,281)
(1,661)
Forecast
Variance at
year end
(Oct)
£000
(6,281)
(6,103)
178
234
(95)
3,170
24,937
963
3,508
24,583
931
338
(354)
(32)
296
(260)
(32)
235
(2,533)
(45)
22,789
22,919
130
(511)
(2,438)
Employee overspend within Greenspaces
Shortfall in Property rental income
Premises related costs
Employee underspend within Senior Mgnt & Support
Other
Total for Sustainable Communities
Employee overspend within Waste Services
Reduced transport sla costs within Waste Services
Reduced SLWP related costs
General Supplies & Services underspend within Waste Services
2,083
(3,439)
267
872
5,048
3,170
7,170
2,433
8,708
79
145
91
(124)
21
339
254
(294)
(651)
52
192
77
(124)
(75)
296
298
(289)
(669)
772
(117)
(123)
Shortfall in Waste Services income – principally Commercial Waste
(2,359)
279
254
Reduction in ability to Capitalise expenditure
Shortfall in Traffic & Highways income
Transport Services
Other
Total for Street Scene & Waste
Employee related underspend
Shortfall in income
Other
Total for Safer Merton
(757)
(838)
(555)
10,363
24,937
1,058
(10)
(62)
963
352
91
(105)
(163)
(354)
(34)
(33)
35
(32)
252
114
57
(154)
(260)
(77)
44
1
(32)
Total Excluding Overheads
22,789
130
238
Overview
The Department is currently forecasting an overspend of £130k at year end. There are seven main
areas of variance –Traffic & Highways, Building & Development Control, Greenspaces, and Property
Management are forecasting overspends whilst Waste Services, Parking Services, and Senior
Management & Support are forecasting an underspend.
- 15 -
45
In order to comply with the relevant accounting code of practice, the Council has also identified £135k of
capital expenditure that has been reclassified as revenue, which is included within the above forecast.
There is an additional £236k of capital expenditure that is still under review, which could further increase
this estimate.
Building and Development Control
An overspend of £405k is currently being forecast, which is mainly due to the section being unable to
fully implement an agreed saving of £300k. The saving relates to a Government proposal which would
allow the Council to set its own fees (levels are currently prescribed) in order to recover the full cost of
delivering a number of services within the section. However, the Government has delayed this proposal
and no agreement has been made as to when it might be announced. The section has also recently
seen a fall in application fee income received.
However, this pressure is expected to be partially offset by the fact that the DCLG have recently
proposed a one-off adjustment to up-rate planning application fees in line with inflation amounting to
around 15%, as the Government, who set the fee, have not been increased it since 2008. It is
anticipated that this increase will take effect from late November, and could result in an additional £30k
of income during this financial year.
This forecast overspend is being partially mitigated by underspends elsewhere within the PP&D division,
especially within Parking Services where an under spend of £137k is expected.
Property Management
The Property Management section is currently forecasting a shortfall in rental income of around £145k,
as a result of several void properties during the year. Also, as a result of these void lets, the section is
also liable to pay the related NNDR, security and any repair costs required.
Mitigating action is being taken to address this pressure, for example, ensuring the vacant units are in a
good state of repair, resulting in six units being re-let since June and two units being under offer.
However, the section often needs to agree a rent free period of up to six months in order to secure the
lease agreements and, although the better presentation of the units is helping to reduce the length of the
rent free periods necessary, this will result in limited additional income this financial year.
Greenspaces
The section is currently forecasting a shortfall in income of around £127k, principally in interment fees
which is forecasting a £98k shortfall, mainly as a result of 2012/13 savings relating to additional income
not being achieved. Action is being proposed to address the overspend, including looking at costs and
how they can be contained, as well as ways to increase income. A clear plan needs to be produced to
demonstrate how much will be achieved in 2012/13 and how this will be achieved in full for 2013/14. An
overspend on employee related expenditure of £79k is also being forecast.
Therefore, in the short-term, this forecast overspend, coupled with the overspend forecast within
property Management, are being partially offset by underspends elsewhere within Sustainable
Communities, principally within the Senior Management and Support section.
- 16 -
46
Waste Services
The section is currently forecasting an overall underspend of £698k, which is mainly due to a reduction
in expected transport related costs, and a reduction in the levels of residual waste being taken to landfill.
This compares to an underspend of £2.6M in the previous financial year, but their respective budgets
have been reduced by around £1.2M for this financial year.
However, there is notable pressure relating to Commercial Waste, where an income shortfall of around
£282k is forecast based on current projections. This compares to a shortfall of £278k in 2011/12. A
review of the commercial waste business has been carried out and an action plan developed to address
issues around future growth of the business together with improved efficiencies and cost control.
In addition, Waste Operations are currently projecting an over spend over all salary budget lines of
£270k. This overspend mainly relates to agreed savings of £271k being removed from within the agency
staff budget lines. However, alternative savings in relation to vehicle costs have been indentified and this
saving will be partly reinstated to the respective budget lines. This will improve the situation to a more
favourable position of a projected overspend of £121k.
Traffic & Highways
The section is currently forecasting an overspend of £449k for two main reasons. Firstly, there will be a
delay in the introduction of the London Permit Scheme due to a delay in the approval from the
Department for Transport. At this stage, it is estimated that the delay will be approximately three months,
meaning that the section will only receive three months of related income rather than the expected six.
Secondly, due to a clearer understanding of actual patterns of expenditure the section is to charge a
lower level of highways maintenance spend than it anticipated to Capital.
Safer Merton
Issues have arisen in regards to existing CCTV contracts that may put additional pressures on the
budget, and are being worked through at present. However, this pressure is expected to be mitigated by
staffing underspends, mainly as a result of maternity leave, recent agreements to reduce hours and
difficulty in recruiting staff.
The drugs re-commissioning has been delayed however and will go out to tender in the next few weeks.
This has been covered by the contingency that we added into the process and therefore should be
complete and in place by 1st April 2013.
Management Action
Work is ongoing with regard to the 2011/12 outturn variances in order to ascertain the extent to which
they will continue into this financial year, and to mitigate the significant differences seen between
forecasts and outturn.
All managers are aware of the need to contain expenditure and maximise income wherever possible.
Corporate guidance regarding the filling of vacant posts will be strictly adhered to.
- 17 -
47
(E)
Corporate Items
These budgets cover a wide range of significant areas including treasury management,
contingency, contributions to past service deficiency on the pensions fund and contributions from
government grants and use of reserves.
The assumptions underpinning budgets and projected outturn are contained in Appendix 1 and 2.
The main areas of variance as at 31st October 2012 are:-
Council
2012/13
£000s
3E.Corporate Items
Cost of Borrowing
Investment Income
Impact of Capital on revenue budget
Pension Fund
Pay and Price Inflation
Contingencies and provisions
Depreciation and Impairment
Income Items
Central Items
Levies
Appropriation to Reserves
TOTAL CORPORATE PROVISIONS
Original
Budget
2012/13
£000s
14,481
-401
14,080
4,537
1,335
5,337
-14,816
-1,136
14,481
-401
14,080
4,537
1,334
4,095
-14,813
-1,136
9,337
881
5,738
15,956
8,097
880
5,738
14,715
Current
Budget
2012/13
£000s
Full
Year
Forecast
(Oct.)
£000s
Forecast
Variance
at year
end
(Oct.)
£000s
Forecast
Variance
at year
end
(Sept.)
£000s
14,481
-401
14,080
13,850
-401
13,449
-631
0
-631
-631
0
-631
4,537
1,334
3,871
-14,233
-1,136
8,453
880
5,738
15,071
4,537
426
908
-14,233
-2,203
2,884
880
6,369
10,133
0
-908
-2,963
0
-1,067
-5,569
0
631
-4,938
0
-908
-2,960
0
-1,067
-5,566
0
631
-4,935
Details of forecast variances have been provided in previous monitoring reports.
The only change since the last report are to the contingency budget relating to estimated costs of £60k
for the free parking over Christmas initiative.
Further details of corporate expenditure and income are provided in Appendices 1 and 2.
- 18 -
48
4.
CAPITAL PROGRAMME 2012-16
4.1
The table below summarises the position in respect of the Capital Programme as at October
2012:
Merton - October 2012 - Summary Departmental Capital Monitoring Information
Scheme Description
Total
Budget
1,875,890
364,598
547,686
(183,088)
1,134,155
(741,735)
Corporate Services
5,173,370
1,178,816
2,670,874
(1,492,060)
4,125,778
(1,047,592)
Children Schools and Families
30,490,120
18,751,517
14,998,675
3,752,842
30,500,936
10,816
Environment and Regeneration
14,329,970
4,847,438
6,968,607
(2,121,163)
13,992,720
(337,250)
Total Capital
51,869,350
25,142,369
25,185,842
(43,469)
49,753,589
(2,115,761)
i)
ii)
ii)
YTD
Actual
YTD
Budget
Variance
To Date
Forecast
For Year
Forecast
Variance
Community and Housing – Officers are currently projecting a very low spend by financial
year end on the Adult Social Care IT Schemes in 2012/13 and 8 Wilton Road
Corporate Services – The major cause of the projected under spend is the Acquisitions
Budget – this budget has just been created it will be used to purchase appropriate sites as
they are offered for sale.
Environment and Regeneration –.Projected under spend relates to two schemes MSJCB
Loan £188k and Transport for London.Schemes£192k.
4.2
Spend within Environment and Regeneration and Corporate Services appears low in comparison
with the total budget. Concern is exacerbated by the level of spend during in these two
departments during October 2012. The scheme level programme is attached as Appendix 5a.
4.3
There have been the following movements in budget since the report submitted last month:
September
Department
Monitoring
1,408,090
Corporate Services
iii)
ii)
iv)
v)
Increase/
(Decrease)
Total Budget
467,800
1,875,890
5,173,370
0
5,173,370
Environment and
Regeneration
31,230,730
(740,610)
30,490,120
15,042,320
(712,350)
14,329,970
Total Capital
52,854,510
(985,160)
51,869,350
Community and Housing – Two amendments to external funding – 5 Clifford Avenue
£34,500 and Birches Close £433,300
Corporate Services – No change to the overall level of the Programme but a small
virement of £13,000 to fund an Electronic Committee Decision Management System
Children, Schools and Families – The total reduction is made up of 13 items of re-profiling.
In addition there are two in year virements totalling £187,830.
Environment and Regeneration - undertaken on projections for TFL schemes. The majority
of the schemes are small amounts of S106 that require more work in this year, so delivery
is unlikely to happen until next financial year. The largest Merton capital scheme is the re- 19 -
49
profiling of South Park Gardens Pavilion, which has slowed up due to external funding and
slow resident participation.
All the items noted are detailed in Appendix 5b.
4.4
The Table below shows the movement in the corporate capital programme since it’s approval at
March 2012 Council:
Approved
Cabinet
March
2012
Department
Slippage
from
2011/12
ReProfiling
from
2012/13
Increase /
(Decrease
)
71
1,408
468
1,876
0
5,174
0
5,174
31,230
(741)
30,489
15,042
(712)
14,330
52,854
(985)
51,869
0
769
(971)
4,796
1,740
(1,362)
33,214
6,885
(14,505)
4,175
600
14,602
3,466
(4,188)
275
887
Total Capital
52,612
12,860
(21,026)
5989
1558
4.5
1,539
Schools
Contributions
Corporate Services
Children Schools and
Families
Environment and
Regeneration
Sept.
Monitoring
Report
August
Monitorin
g Report
New
Internally
Funded
Additional
External
Funding
861
861
The table below summarises the impact of the re-profiling and virements in 5.3 on the Capital
Programme 2012-16.
Impact of Re-Profiling and Virements on the Capital Programme 2012-16
Dept
Starting
Budget
2012/13
Changes
(1)
(2)
£000s
£000s
Revised
Budget
2012/13
Starting
Budget
2013/14
Changes
(3)
(4)
(5)
£000s
(1+2)=
Starting
Budget
2013/14
Original
Budget
2014/15
Changes
(6)
(7)
(8)
£000s
(4+5)=
Starting
Budget
2014/15
Original
Budget
2015/16
Changes
(9)
(10)
(11)
£000s
(7+8)=
Revised
Budget
2015/16
(10+11)=
(12)
£000s
£000s
£000s
£000s
£000s
£000s
E&R
1,408
5,174
31,230
15,043
468
0
(741)
(712)
1,876
5,174
30,489
14,331
971
7,574
25,051
18,263
0
0
741
715
971
7,574
25,792
18,978
0
2,926
13,090
10,086
0
0
0
0
0
2,926
13,090
10,086
0
2,457
4,165
15,946
0
0
0
0
0
2,457
4,165
15,946
Total
52,855
(985)
51,870
52,470
1,456
53,315
26,102
0
26,102
22,568
0
22,568
C&H
CS
CSF
£000s
4.6
From this information it is apparent that the 2013/14 Capital programme for Corporate Services
and Environment and Regeneration is above that that can be managed within current staffing
levels.
4.7
The Table below compares spend to October for the financial years 2011/12 to 2012/13, the final
column of the table also shows how much expenditure has increased since last month:
- 20 -
50
Comparison of Capital Spend October 2011 to October 2012
Spend to
October
2011
£000s
Spend to
October
2012
000s
Corporate Services
293
1,704
6,072
7,594
365
1,179
18,752
4,925
72
(525)
12,680
(2,669)
Increase
Since
Last
Month
000s
0
110
2,433
809
Total Capital Spend
15,663
25,221
9,558
3,352
Department
4.8
Variance
to Date
000s
Officers have been reviewing expenditure charged to the capital programme to the middle of
October 2012 to ensure that it is correctly charged to capital. The table below summarises the
results of this investigation
Department
Corporate Services
Total
*
YTD
Actual
Capital
Revenue
Spend
Additional
Information
Unsure
364,598
1,030,721
13,749,043
4,128,062
364,598
786,197
13,297,467
3,757,475
0
116,987
*328,065
134,987
0
128,138
123,511
235,600
0
245,124
451,576
370,587
19,272,424
18,205,737
580,038
487,249
1,067,287
Total
moving temporary classrooms is classified as revenue expenditure (appxroximately£230k)
4.9
Budget managers have been sent the detail of the items identified as revenue expenditure and
those for which additional information is required to determine if it may be charged to capital.
Budget managers have been given until the end of November to provide additional information, all
expenditure which cannot justify being charged to capital will be transferred to revenue.
6.
RISK MANAGEMENT
6.1
Two sessions of training are scheduled for the Corporate Risk Management Group. The first
session took place on 14 November 2012 and covered the principles of risk management drawing
on the procedures established in Merton. The second session is scheduled for 5 December 2012,
this training will cover the compilation of risk registers.
6.2
As part of the risk management package for Zurich all departmental risk registers will be
reviewed. This review will be piloted by Corporate Services and will involve a one hour interview
with the Director and assistant directors. As part of a risk management workshop officers will
identify missing risks and priorities the register. The revised risk register will then be presented to
the DMT for review.
- 21 -
51
7.
MISCELLANEOUS DEBT REPORT
7.1
Attached as Appendix 6 is the miscellaneous debt report for October 2012
8.
DELIVERY OF SAVINGS FOR 2012/13
8.1
The savings proposed for 2012/13 of £11.229m are shown below:
SAVINGS
2012/13
£000
Corporate Services
2,414
1,003
3,562
4,250
TOTAL
11,229
The savings expected to year end are reported in Appendix 7.
9.
CONSULTATION UNDERTAKEN OR PROPOSED
9.1
All relevant bodies have been consulted.
10.
TIMETABLE
10.1
In accordance with current financial reporting timetables.
11.
FINANCIAL, RESOURCE AND PROPERTY IMPLICATIONS
11.1
All relevant implications have been addressed in the report.
12.
LEGAL AND STATUTORY IMPLICATIONS
12.1
All relevant implications have been addressed in the report.
13.
HUMAN RIGHTS, EQUALITIES AND COMMUNITY COHESION IMPLICATIONS
13.1
Not applicable
14.
CRIME AND DISORDER IMPLICATIONS
14.1
Not applicable
15.
RISK MANAGEMENT AND HEALTH AND SAFETY IMPLICATIONS
15.1
The content of this report is linked to two Key Strategic Risks Developing Corporate Business
Plan and Setting a Balanced Budget for 2013/17 and Beyond (KSR49) and Delivery of Savings
Programme 2012/15
- 22 -
52
16.
APPENDICES – THE FOLLOWING DOCUMENTS ARE TO BE PUBLISHED WITH THIS
REPORT AND FORM PART OF THE REPORT
Appendix 1 – Detailed monthly position table
Appendix 2 – Detailed Corporate Items table
Appendix 3 – Pay and Price Inflation as at June 2012
Appendix 4 – Treasury Management: Outlook
Appendix 5a – Current Capital Programme 2012/13
Appendix 5b – Capital Programme Virements September 2012 Monitoring
Appendix 5c – Capital Programme 2012/13 Funding Statement
Appendix 6 – Miscellaneous Debt Report
Appendix 7 - Savings expected in 12/13
Appendix 8 – Forecast year end variance by department
Appendix 9 – Client receipts analysis
17.
BACKGROUND PAPERS
16.1
Budgetary Control files held in the Corporate Services department.
18.
REPORT AUTHOR
− Name: Paul Dale
− Tel: 020 8545 3458
− email: [email protected]
- 23 -
53
APPENDIX 1
Summary Position as at 31st October 2012
Budget
as per
March
Council
2012/13
Original
Budget
2012/13
Current
Budget
2012/13
Year to
Date
Budget
(Oct.)
Year to
Date
Actual
(Oct.)
Full Year
Forecast
(Oct.)
Forecast
Variance
at year
end (Oct.)
Forecast
Variance
at year
end (Sept.)
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Department
3A.Corporate Services
3B.Children, Schools and Families
8,329
10,256
10,533
14,308
12,862
10,753
220
207
42,296
42,366
42,124
105,027
97,255
43,041
917
655.08
3C.Community and Housing
60,107
60,223
60,133
31,161
27,259
58,703
-1,430
-1,362
3D.Environment & Regeneration
28,889
28,008
27,707
6,996
6,701
27,837
130
238.09
NET SERVICE EXPENDITURE
139,621
140,853
140,497
157,492
144,077
140,334
-163
-261
14,080
14,080
14,080
3,037
2,407
13,449
-631
-631
0
0
0
0
0
631
631
631
5,738
5,738
5,738
0
0
5,738
0
0
-4,743
-5,983
-5,627
-701
-2,154
-10,565
-4938
-4,935
881
15,956
880
14,715
880
15,071
510
2,846
510
763
880
10,133
0
-4,938
0
-4,935
155,577
155,568
155,568
160,338
144,840
150,467
-5,101
-5,196
3E.Corporate Items
Impact of Capital on revenue budget
Transfer to Capital financing reserve
Transfer to Closing the Gap Reserve
Other Central items
Levies
TOTAL GENERAL FUND
Funding
Formula Grant:
- NNDR
-58782
-58782
-58782
-34290
-34290
-58782
0
0
- RSG
-1179
-1179
-1179
-688
-688
-1179
0
0
- Council Tax Freeze Grant 2011/12
-2060
-2060
-2060
-1201
-1201
-2060
0
0
- Council Tax Freeze Grant 2012/13
PFI Grant
-2078
-2070
-2070
-2070
-2070
-2070
0
0
-4797
-4797
-4797
-2398
-2398
-4797
0
0
-68,896
-68,888
-68,888
-40,647
-40,647
-68,888
0
0
-3891
-3891
-3891
0
0
-3891
0
0
-82522
-82522
-82522
0
0
-82522
0
0
0
0
0
-5101
0
-5,196
Grants
Collection Fund
Council Tax
- General
- WPCC
Council Tax and Collection Fund
FUNDING
NET
-267
-267
-267
0
0
-267
-86680
-86680
-86680
0
0
-86680
-155,576
1
-155,568
0
-155,568
0
-40,647
-40,647
-155,568
- 24 -
54
APPENDIX 2
Current
Budget
2012/13
£000s
Year to
Date
Budget
(Oct.)
£000s
Year to
Date
Actual
(Oct.)
£000s
Full
Year
Forecast
(Oct.)
£000s
Forecast
Variance
at year
end
(Oct.)
£000s
Forecast
Variance
at year
end
(Sept.)
£000s
14,481
-401
14,080
14,481
-401
14,080
3,243
-206
3,037
2,641
-234
2,407
13,850
-401
13,449
-631
0
-631
-631
0
-631
4,537
4,537
4,537
0
0
4,537
0
0
Corporate Provision for Pay Award
Utilities Inflation Provision
Pay and Price Inflation
408
927
1,335
408
926
1,334
408
926
1,334
0
0
0
0
1
1
0
426
426
-408
-500
-908
-408
-500
-908
Contingency
Single Status
Bad Debt Provision
Cost of DR Recovery
Agency workers
Cost of disposals - 4%
Revenuisation and miscellaneous
Contingencies and provisions
2,000
515
500
70
500
0
1,752
5,337
2,000
515
500
70
500
0
510
4,095
1,938
515
500
70
500
-162
510
3,871
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
0
500
70
0
-162
0
908
-1,438
-515
0
0
-500
0
-510
-2,963
-1,435
-515
0
0
-500
0
-510
-2,960
-1,136
0
0
0
-1,136
-1,136
0
0
0
-1,136
-1,136
0
0
0
-1,136
-701
0
0
0
-701
-701
-405
-471
-578
-2,155
-1,136
0
-471
-596
-2,203
0
0
-471
-596
-1,067
0
0
-471
-596
-1,067
-14,816
-14,813
-14,233
0
0
-14,233
0
0
9,337
8,097
8,453
2,336
253
2,884
-5,569
-5,566
881
880
880
510
510
880
0
0
0
0
0
0
0
631
631
631
Budget
as per
Council
2012/13
£000s
Original
Budget
2012/13
£000s
14,481
-401
14,080
Pension Fund
3E.Corporate Items
Cost of Borrowing
Investment Inc.
Impact of Capital on revenue
budget
New Homes Bonus
Local Services Support Grant
LACSEG refund
VAT Savings
Income Items
Depreciation and Impairment
Central Items
Levies
- Financing costs: saving transferred
to reserves
- Use of Reserves - re 20 minutes
free parking
- Transfer to Closing the Gap
Reserve
Appropriation to/from(-) Reserves
-30
-30
-30
0
0
-30
0
0
5,768
5,738
5,768
5,738
5,768
5,738
0
0
0
0
5,768
6,369
0
631
0
631
15,956
14,715
15,071
2,846
763
10,133
-4,938
-4,935
- 25 -
55
Appendix 3
Pay and Price Inflation as at October 2012
In 2012/13, the MTFS includes 0.5% for increases in pay and 1.5% for increases in general prices, with
an additional amount of £0.332m for extra inflation provision in Community and Housing for those areas
of high inflation.
Pay:
2012/13 – The MTFS approved by Council on the 7th March 2012 includes 0.5% for increases in pay.
This equates to £0.408m and is held as a corporate provision. It is not expected that this will be required.
Prices:
CPI annual inflation stands at 2.7 per cent in October 2012, up from 2.2 per cent in September. The
main upward pressure came from the education sector (university tuition fees), with food and nonalcoholic beverages and transport also increasing. The largest downward pressures came from the
housing and household services, and miscellaneous goods and services sectors which offset the
increase to an extent.
RPI annual inflation stands at 3.2 per cent in October 2012, up from 2.6 per cent in September. There
were similar reasons for the increases as for CPI with the largest downward pressure coming from fuel
and light costs.
Outlook for inflation:
On 8 November, the Bank of England’s Monetary Policy Committee voted to maintain the Bank Base
Rate at 0.5%. The Committee also voted to continue with its programme of asset purchases totalling
£375 billion, financed by the issuance of central bank reserves.
•
The latest inflation forecasts for the UK economy, based on a summary of independent forecasts
are set out in the table below:Source: HM Treasury - Forecasts for the UK Economy (October 2012)
2012 (Quarter 4)
CPI
RPI
Lowest %
1.5
1.8
Highest %
2.7
3.1
Average %
2.3
2.7
2013 (Quarter 4)
CPI
RPI
Lowest %
1.5
1.2
Highest %
3.3
3.6
Average %
2.1
2.5
The Bank of England published the latest Inflation Report on 14 November 2012. The MPC view is that
“the near-term outlook is higher than in August,
reflecting higher-than-expected outturns for inflation together with unexpectedly large increases in
household energy prices announced for the next few months. Inflation is likely to fall back in the second
half of next year, as the impact of external price pressures ease and a partial recovery in productivity
growth dampens domestic cost growth.”
However, even though the MPC anticipate inflation falling to around the 2% target around the second
half of 2013 they have concerns that this may take longer. In the Inflation Report it states that “…
considerable uncertainty surrounds the inflation outlook. Inflation can be buffeted by movements in
- 26 -
56
commodity prices, which can be highly volatile. Domestically, the juxtaposition of strong employment
and weak productivity is unlikely to continue indefinitely. The way in which this is resolved, and how
companies adjust their costs and prices as a result, may well have an important bearing on the path of
inflation over the next few years. There is also uncertainty about the extent to which idiosyncratic
influences, such as tuition fees and domestic energy bills, will continue to impart upward pressure.”
The outlook for GDP growth is for a sustained, but slow, recovery. However, the global economic
outlook, particularly within the euro area, is a key source of risk.
Clearly where the level of inflation during the year exceeds the amount provided for in the budget, this
will put pressure on services to stay within budget and will require effective monitoring and control.
The Autumn Statement 2012 will be made by the Chancellor of the Exchequer on 5 December 2012.
The Statement will provide an update on the Government’s plans for the economy based on the latest
forecasts from the Office for Budget Responsibility. These forecasts are published alongside the Autumn
Statement on 5 December 2012.
- 27 -
57
Appendix 4
Treasury Management: Outlook
The Bank Base Rate has been kept at its low of 0.5% since March 2009. Forecasts for interest
rates are that they will remain low for some time, until at least mid/late 2013. The Bank of
England’s Monetary Policy Committee on 8 November 2012 voted to maintain the official Bank
Base Rate at 0.5%. The MPC also voted to maintain the level of Quantitative Easing (QE) at
£375billion financed by the issuance of central bank reserves.
Forecasts for Bank Base Rates, based on October 2012 are summarised in the following table:End
End
End
End
End
End
End
End
Q.4
Q.1
Q.2
Q.3
Q.4
Q.1
Q.2
Q.3
2012
2013
2013
2013
2013
2014
2014
2014
0.5%
0.5%
0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Sector
Capital
Economics
UBS
0.25% 0.25% 0.25% 0.25% 0.25%
The sharp rise in inflation has not significantly altered the money market’s predictions for the UK
bank base rate. Some observers continue to suggest that the base rate will not increase until
2017, with a reduction to 0.25% in the first quarter of 2013 which will remain until 2015.
However, following the quarterly inflation report for November 2012, the Bank of England
appeared to rule out an early cut, despite recognising that growth in this year is likely to be zero.
Governor Sir Mervyn King warned that a cut could be “more counterproductive than beneficial”.
The Eurozone crisis is blamed as the main cause of the slowdown.
The Governor also said the Government’s tough austerity measures had been a drag on growth
and that the extra bank holiday in June for the Diamond Jubilee celebrations had reduced output
by around 0.5 per cent.
The overall outlook for growth is weaker than in May reflecting weakness in output and
productivity growth Early indications on the £80 billion “funding for lending” scheme to unclog the
flow of credit have been positive, with some banks cutting their loan rates However, fiscal
consolidation and tight credit conditions in the UK, as well as continuing difficulties in the euro
area and a broader slowing in the world economy will provide resistance.
Some analysts had been expecting an early cut in interest rates to boost the economy and are
concerned that even zero growth forecasts are optimistic.
- 28 -
58
Appendix 5a
Community and Housing Capital Monitoring - October 2012
Scheme Description
Total Budget
Adult Social Care
Libraries Total
Adult Education and Community
YTD Actual
YTD Budget
Variance
To Date
Forecast
For Year
Forecast
Variance
368,000
0
61,331
(61,331)
10,200
(357,800)
33,940
0
19,803
(19,803)
26,610
(7,330)
145,340
111,647
83,256
28,391
145,340
0
Housing
1,328,610
252,951
383,296
(130,345)
952,005
(376,605)
Community and Housing Total
1,875,890
364,598
547,686
(183,088)
1,134,155
(741,735)
Corporate Services Capital Monitoring - October 2012
Scheme Description
Resources
Total Budget
190,700
YTD Actual
35,685
YTD Budget
90,528
Variance
To Date
(54,844)
Forecast
For Year
179,460
Forecast
Variance
(11,240)
13,000
0
0
0
13,000
0
85,530
16,722
46,557
(29,836)
85,530
0
297,780
31,825
173,911
(142,086)
240,780
(57,000)
Corporate Items - Acquisitions
1,000,000
0
499,999
(499,999)
0
(1,000,000)
Facilities Management
1,012,570
375,616
525,162
(149,546)
1,032,571
20,001
IT Total
2,573,790
719,568
1,334,717
(615,149)
2,574,437
647
0
(600)
0
(600)
0
0
5,173,370
1,178,816
2,670,874
(1,492,060)
4,125,778
(1,047,592)
Cloud Computing
IT Transformation Unallocated
Corporate Services Total
- 29 -
59
Appendix 5a
Children, Schools & Families Capital Monitoring - September 2012
Scheme Description
Total Budget
YTD
Actual
YTD Budget
Variance
Forecast
Forecast
To Date
For Year
Variance
Aragon Expansion
994,460
865,938
565,103
300,835
979,619
(14,841)
BENEDICT PRIMARY SCHOOL EXP
800,000
756,130
424,457
331,673
800,000
0
Cranmer Expansion
611,400
63,736
350,700
(286,964)
150,000
(461,400)
School expansion 19FE to 25FE
290,000
266,117
145,003
121,114
290,926
926
Hollymount Primary School Exp
625,920
381,785
300,049
81,736
625,920
0
2,707,450
1,789,302
1,512,687
276,615
2,701,081
(6,369)
William Morris PCP
434,390
392,959
223,192
169,767
434,390
0
Holy Trinity Expansion
100,000
13,480
133,385
(119,905)
100,000
0
St Mary's expansion
830,000
545,258
682,697
(137,439)
830,000
0
Joseph Hood Primary School Exp
Pupil Growth - Unallocated
280,850
218,461
158,077
60,384
280,850
0
All Saints/ South Wim YCC exp
1,567,670
1,009,967
825,609
184,358
1,567,000
(670)
Gorringe Park expansion
3,120,850
1,780,180
1,081,334
698,846
3,092,837
(28,013)
Hillcross School Expansion
470,000
123,511
218,154
(94,643)
470,000
0
Merton Abbey Temp Accomodation
250,010
11,178
159,998
(148,820)
250,000
(10)
Pelham School Expansion
420,010
179,645
121,986
57,659
520,000
99,990
Cricket Grn Exp-Chapel Orchard
200,000
8,879
100,003
(91,124)
200,270
270
Dundonald expansion
120,000
69,709
26,133
43,576
120,000
0
Poplar Permanent Expansion
371,130
265,939
169,919
96,020
600,137
229,007
Liberty expansion
2,188,560
1,662,408
1,179,994
482,414
2,188,560
0
Singlegate expansion
4,504,990
3,505,150
1,555,886
1,949,264
5,000,000
495,010
Wimbledon Park expansion
2,040,510
824,156
1,040,300
(216,144)
2,040,510
0
Beecholme Expansion
350,000
0
85,714
(85,714)
180,000
(170,000)
St Ann's Primary Phase
467,230
220,671
112,284
108,387
467,233
3
Wimbledon Chase Expansion
185,390
27,368
124,897
(97,529)
185,368
(22)
23,930,820
14,981,927
11,297,561
3,684,366
24,074,701
143,881
- 30 -
60
Appendix 5a
Children, Schools & Families Capital Monitoring - September 2012
Scheme Description
Total Budget
YTD Actual
YTD Budget
Variance
To Date
Forecast
For Year
Forecast
Variance
Devolved Formula Capital
519,810
264,806
272,560
(7,754)
519,810
0
SEN Centre of Excellence
468,530
332,372
380,656
(48,284)
468,527
(3)
SEN Capital improvements
10,610
8,477
6,201
2,276
10,610
0
Early Years
Garden PCP
Schools Access Initiative Inc
Bishop Gilpin New Classroom
76,960
7,846
43,838
(35,992)
59,500
(17,460)
1,711,770
1,289,012
939,174
349,838
1,711,774
4
51,530
7,371
28,560
(21,189)
51,530
0
250,000
216,863
125,000
91,863
250,000
0
St Thomas of Canterbury Expnsn
3,680
7,830
2,809
5,021
3,680
0
Abbotsbury-playgrnd Improvemts
30,000
29,247
15,003
14,244
30,000
0
Links PCP
13,820
13,821
4,954
8,867
13,821
1
St Mark's Primary PCP
1,320
0
770
(770)
1,320
0
142,290
134,378
83,006
51,372
142,290
0
Abbotsbury
0
0
21
(21)
0
0
Poplar PCP
0
0
1,211
(1,211)
0
0
SS Peter & Paul PCP
New Pupil Places - Garfield
Rutlish
0
1,254
81
1,173
0
0
20,390
20,390
11,893
8,497
20,390
0
0
0
363
(363)
0
0
Bond School
Primary Capital Programme
7,530
0
4,102
(4,102)
7,530
0
School kitchens/dining areas
43,620
41,017
25,445
15,572
43,620
0
58,740
58,740
58,740
0
58,740
0
Cricket Green Site
24,420
23,028
12,959
10,069
24,420
0
Behaviour Unit
57,000
57,001
31,113
25,888
57,001
1
1,700
0
891
(891)
1,700
0
0
Hillcross Unit
Primary school autism unit
30,000
0
289,623
(289,623)
30,000
Brightwell
299,960
265,716
162,855
102,861
299,960
0
Short Breaks Disabled Children
106,900
105,386
62,508
42,878
105,089
(1,811)
Primary Capital Improvements
583,390
284,061
311,580
(27,519)
525,422
(57,968)
10,420
7,076
6,076
1,000
7,200
(3,220)
500,680
361,365
292,064
69,301
500,680
0
50,000
0
25,003
(25,003)
0
(50,000)
(2,609)
Play Spaces
Former Royal Sun Alliance SG
Secondary Expansion
Secondary Improvements
134,750
132,141
78,603
53,538
132,141
Schools Loans
1,100,000
0
291,669
(291,669)
1,100,000
0
Youth Centres
249,480
100,392
131,783
(31,391)
249,480
0
6,559,300
3,769,590
3,701,114
68,476
6,426,235
(133,065)
30,490,120
18,751,517
14,998,675
3,752,842
30,500,936
10,816
Total Other
Total Children, Schools and Families
- 31 -
61
Appendix 5a
Environment and Regeneration Capital Monitoring - October 2012
Scheme Description
Total Budget
YTD
Actual
YTD
Budget
Variance To
Date
Forecast
For Year
Forecast
Variance
Footways Planned Works
1,000,000
508,825
583,333
(74,508)
1,000,000
0
Greenspaces
1,777,730
553,895
959,276
(405,381)
1,587,650
(190,080)
Highways General Planned Works
Highways Planned Road Works
Leisure Centres
Other E&R
On and Off Street Parking
957,830
367,734
541,362
(173,628)
907,740
(50,090)
1,600,000
606,125
933,335
(327,210)
1,600,000
0
506,260
101,497
347,754
(246,257)
506,260
0
1,473,660
88,164
731,259
(643,095)
1,473,660
0
61,460
0
33,246
(33,246)
2,290
(59,170)
147,580
109,147
28,851
80,296
147,580
0
Regeneration Partnerships
187,200
9,990
75,450
(65,460)
187,200
0
Street Lighting
640,000
2
259,666
(259,664)
640,000
0
Street Scene
617,390
155,655
443,350
(287,695)
617,180
(210)
Plans and Projects
Transport for London
2,309,560
396,025
572,597
(176,572)
2,117,270
(192,290)
Traffic and Parking Management
219,100
65,726
126,976
(61,250)
219,100
0
Transport and Plant
674,000
552,811
257,962
294,855
674,000
0
79,280
27,308
48,116
(20,808)
79,280
0
Safer Merton - CCTV & ASB
Environmental Health
1,000,970
649,855
665,512
(15,657)
1,000,970
0
Waste Operations
1,077,950
654,679
360,562
294,117
1,232,540
154,590
14,329,970
4,847,438
6,968,607
(2,121,163)
13,992,720
(337,250)
- 32 -
62
Appendix 5b
CAPITAL VIREMENTS AND REPROFILING OCTOBER 2012 MONITITORING
2012/13
Budget
Virements
Revised
2012/13
Budget
2012/13
Budget
Virements
Revised
2012/13
Budget
£
£
£
£
£
£
Narrative
Housing
5 Clifford Ave-Suttn&Mertn PCT
Birches Close
TOTAL
0
34,500
34,500
0
0
0
518,700
433,300
952,000
0
0
0
518,700
467,800
986,500
0
0
0
Final clarification of funding
due from PCT
Final clarification of funding
due from PCT
Corporate Services
Improve Proactis
Document Managemnt-Contractual
Total Corporate Services
2012/13
Budget
Virements
Revised
2012/13
Budget
2013/14
Budget
£
£
£
£
119,050
(13,000)
106,050
0
13,000
13,000
119,050
0
119,050
- 33 -
Virements
Revised
2013/14
Budget
£
£
0
0
0
0
Narrative
0
0
0
0
Replacement of internally
developed system no longer fit
for purpose
0
63
Appendix 5b
2012/13
Budget
Virements
Revised
2012/13
Budget
2013/14
Budget
Revised
2013/14
Budget
Virements
Narrative
Benedict expansion
820,780
(20,780)
800,000
0
20,780
20,780
Hollymount Permanent
Expansion
647,820
(21,900)
625,920
25,000
21,900
46,900
St Mary's expansion
1,209,770
(379,770)
830,000
1,882,000
379,770
2,261,770
Gorringe Park expansion
2,120,850
1,000,000
3,120,850
1,611,000
(1,000,000)
611,000
Hillcross School Expansion
530,780
(60,780)
470,000
2,499,910
60,780
2,560,690
Merton Abbey Temp
Accomodation
354,360
(104,350)
250,010
1,950,000
104,350
2,054,350
Holy Trinity Expansion
264,370
(164,370)
100,000
0
164,370
164,370
Dundonald expansion
331,940
(211,940)
120,000
4,550,000
211,940
4,761,940
342,050
183,920
525,970
0
0
0
Pupil Growth - Unallocated
305,850
(25,000)
280,850
0
25,000
25,000
Liberty expansion
2,308,560
(120,000)
2,188,560
0
120,000
120,000
Total Primary School
Expansion
9,237,130
75,030
9,312,160
12,517,910
108,890
12,626,800
- 34 -
Project retentions due in
2013/14
2013/14
Reprofiling to reflect
latest forecast and new
tendering requirement
Reprofiling due to the
revised programme of
works resulting in phases
being completed earlier
than planned
Reprofiling to reflect latest
forecast and new
Reprofiling to reflect latest
forecast and new
(note this is a permanent
scheme following cabinet
agreement in July 2012)
delayed start of the final
phase of works as final
classroom not required
until summer 2014
delayed start of the
scheme as a result of
delays to the planning
process
Additional finance from
upper school underspend
to allow lower school to
provide additional places
This is the scheme to
provide temporary
classrooms at Garfield
PS. The £25k is for
retentions due in 2013/14.
2013/14
64
Appendix 5b
St Ann's - Targeted Capital
2012/13
Budget
Virements
Revised
2012/13
Budget
2013/14
Budget
Revised
2013/14
Budget
Virements
Narrative
652,450
(183,920)
468,530
0
0
0
1,789,580
(77,810)
1,711,770
0
77,810
77,810
Liberty Primary School
60,910
(3,910)
57,000
0
3,910
3,910
Links PCP
10,910
2,910
13,820
0
0
0
Dundonald EDF works
2,670
(840)
1,830
0
0
0
Poplar
2,070
(2,070)
0
0
0
0
580,000
(550,000)
30,000
30,000
550,000
580,000
3,098,590
(815,640)
2,282,950
30,000
631,720
661,720
12,335,720
(740,610)
11,595,110
12,547,910
740,610
13,288,520
Garden PCP
Primary school autism unit
Total Other
Total Children, Schools and
Families
- 35 -
Upper school scheme
underspend and
transferred to lower school
scheme
Project completion now in
June 2013. School
contributing additional
funding not indicated here
2013/14
Minor overspend due to
H&S items not included in
the original tendered
contract, funded from
other school scheme
underspends below.
Extent of scheme less
than expected therefore
underspend used to part
cover overspend at Links
Primary school PCP
scheme
Poplar PCP scheme
underspend to be used to
cover overspend at Links
Primary School
Scheme has been
delayed while option
appraisal undertaken to
establish whether scheme
can be developed within
budget
65
Appendix 5b
2012/13
Budget
Revised
2012/13
Budget
Virements
2013/14
Budget
Virements
Revised
2013/14
Budget
Narrative
Footways Planned Works
B517 Enhancement to Footway
2,500
(2,500)
0
0
2,500
2,500
B499ab Imprve Holborn Way link
9,930
(9,930)
0
0
9,930
9,930
B500 7-13 Church Rd footway
10,740
(10,740)
0
0
10,740
10,740
B619 Ravensbury Park entrance
5,000
(5,000)
0
0
5,000
5,000
B486 Lndscp Ctnhm Pk Hlnd Gdns
2,430
(2,430)
0
0
2,430
2,430
Repairs to Water Wheel (B531)
2,490
(2,490)
0
0
2,490
2,490
B627a&b Cottnhm Prk-play area
2,960
(2,960)
0
0
2,960
2,960
B521 - Morden Park
29,780
(29,780)
0
0
29,780
29,780
B651 South Park Gardens Pavil
17,000
(17,000)
0
0
17,000
17,000
B340MOSS rpt (land Rutlish Rd)
4,450
(4,450)
0
0
4,450
4,450
B638d/e Sustainable Transport
5,500
(5,500)
0
0
5,500
5,500
B646a Lombard Industrial Estat
23,970
(23,970)
0
0
23,970
23,970
B646b 7 Abbey Road
4,500
(4,500)
0
0
4,500
4,500
B639a Fair Green
42,600
(42,600)
0
0
42,600
42,600
Big Lottery Play Areas
27,160
(27,160)
0
0
27,160
27,160
B551 B553 Mitcham schemes
3,510
(3,510)
0
0
3,510
3,510
Projects to be progressed
in 2013/14
in 2013/14
in 2013/14
Greenspaces
Ravensbury work will
carry on into spring next
year
No work required at
Cottenham Park
Currently, money will be
used in 13/14
in 2013/14
No work required at
Cottenham Park
Currently, money will be
used in 13/14
Resurfacing ball court,
awaiting quotes, Project to
be progressed in 2013/14
Project being worked up
with resident group,
however not advanced
enough to deliver this
financial year
Highways General Planned
Works
S106 confirmation
required
in 2013/14
in 2013/14
in 2013/14
in 2013/14
Other E&R
- 36 -
Funding needs to be
checked to see if this is
still available
in 2013/14
66
Appendix 5b
2012/13
Budget
Revised
2012/13
Budget
Virements
2013/14
Budget
Revised
2013/14
Budget
Virements
Narrative
On and Off Street Parking
in 2013/14
in 2013/14
in 2013/14
in 2013/14
Ryns Pk & Wim ftpath/cyclepath
15,000
(15,000)
0
0
15,000
15,000
B548 Obstructive Pkg Grove Rd
1,000
(1,000)
0
0
1,000
1,000
B578 Marton Park CPZ (MP1)
13,920
(13,920)
0
0
13,920
13,920
B579 Upper GreeN West
3,000
(3,000)
0
0
3,000
3,000
Improved parking- shop parades
100,000
(100,000)
0
0
100,000
100,000
Schemes being worked on
this financial year 13/14
delivery
Regeneration Partnerships
Project being worked up
with resident group,
however not advanced
enough to deliver this
financial year
S106 officer and COM
checking this money is still
avaiable
Projects will start in 13/14
now EDS has been
refreshed
in 2013/14
in 2013/14
Restoration of South Park Gdns
130,540
(130,540)
0
131,000
130,540
261,540
Sect106 Bottleneck Skills Grnt
14,070
(14,070)
0
0
14,070
14,070
B585 Economic Developmnt Strat
25,000
(25,000)
0
0
25,000
25,000
S106 Wim broadwy CA
6,480
(6,480)
0
0
6,480
6,480
S106 Queensmere Road B429
4,500
(4,500)
0
0
4,500
4,500
389,370
(89,370)
300,000
0
89,370
89,370
scheme being compiled
some money will need to
be spent next year
0
3,000
3,000
0
0
in 2013/14
Street Scene
Improve markings & road signs
Transport for London
Schools Programme for Cycling
Transport and Plant
B494 BSA Imp 12261/12263
4,510
(4,510)
0
0
4,510
4,510
Shared Space
20,000
(20,000)
0
0
20,000
20,000
B573 Business Area Imprvt Prog
23,970
(23,970)
0
0
23,970
23,970
B603 Improvements Coome Lane
37,150
(37,150)
0
0
37,150
37,150
B609 Wim Town Centre trans imp
B612 Safety & transport imprv
5,000
2,500
(5,000)
(2,500)
0
0
0
0
5,000
2,500
5,000
2,500
Safer Merton
B495a/b/c CCTV Upgrade
Works for Merton Priory Homes
15,810
9,010
(15,810)
(9,010)
- 37 -
0
0
0
0
15,810
9,010
15,810
9,010
now EDS has been
refreshed
now EDS has been
refreshed
scheme needs to be
compiled
in 2013/14
in 2013/14
in 2013/14
SLA agreement to fix
cameras for MPH, need
to monitor and agree
whether this budget is still
required.
67
now EDS has been
refreshed
TOTAL
1,015,350
(712,350)
- 38 -
303,000
131,000
715,350
846,350
68
Appendix 5c
CAPITAL PROGRAMME FUNDING SUMMARY 2012/13
Funded
from
Funde
Merton’s
d by
Resource Grant
s
£000s
£000s
Current Capital Programme 2012/13 28,265 24,590
November 2012 Cabinet
Community & Housing
Housing Schemes
Re-Profiling
Re-Profiling & TFL Scheme
Current Capital Programme 2012/13 December 2012 Cabinet
- 39 -
Total
£000s
52,855
0
468
468
(741)
0
(741)
(224)
(488)
(712)
27,300 24,570
51,870
69
Appendix 6
Miscellaneous Debt Update October 2012
1.
PURPOSE OF REPORT AND EXECUTIVE SUMMARY
This report updates Cabinet on the latest position with regard to the collection of miscellaneous
debt; focusing on debt that is over one year old and the action being taken (or required) to reduce
the outstanding arrears.
2.
LATEST ARREARS POSITION – MERTON’S AGED DEBTORS REPORT
2.1
A breakdown of departmental net miscellaneous debt arrears, as at
31st October 2012, is shown in column F of Table 1 below.
Table 1 – Debtors aged balance – October 2012 – not including debt that is less than 39 days old
Department 39 days to 6 6 months
a
months b to 1 year c
£
Env &
Regeneration
Corporate
Services
Housing
Benefits
Children,
Schools &
Families
Community &
Housing
Chief
Executive’s
Total
October
2011
Variance Oct
11 to Oct 12
£
1 to 2
years
d
Over 2 years
e
£
£
October
2012
arrears
f
£
August
2012
arrears
Direction of
travel
£
364,194
102,749
112,865
47,873
627,681
658,100
↓
197,532
143,565
35,867
54,638
431,602
453,249
↓
486,898
509,617
907,264
1,075,024
2,978,803
3,056,433
↓
509,421
25,612
-1,784
40,425
573,674
448,148
1,235,884
975,275
633,030
803,880
3,648,069
3,207,450
↑
0
0
0
0
0
180
↓
2,793,929
1,756,818
1,687,242
2,021,840
8,259,829
7,823,560
↑
2,390,143
1,302,913
1,305,012
1,430,616
6,428,684
403,786
453,905
382,230
591,224
1,831,145
↑
↑
2.2
Since the position was last reported in August 2012, the net current level of arrears, i.e. invoices
over 39 days old, has increased by £436,269. This is almost entirely due to community and
housing debt. The cause of this increase is currently being investigated.
2.3
Table 2 below shows the total net level of arrears for the last five years – not including debt that is
less than 39 days old.
- 40 -
70
Table 2 – net miscellaneous debt October 2008 to October 2012 – not including
debt that is less than 39 days old
Department
Env &
Regeneration
Corporate
Services
Housing
Benefits
Children,
Schools &
Families
Community &
Housing
Chief
Executive’s
Total
Oct 2008
£
Oct 2009
£
Oct 2010
£
Oct 2011
£
Oct 2012
£
740,004
491,275
254,545
377,096
627,680
142,384
145,170
146,581
231,184
431,604
1,755,980
1,869,388
1,927,818
2,726,275
2,978,803
69,272
197,221
209,241
131,488
573,675
2,357,424
2,154,800
2,672,100
2,960,359
3,648,070
-245
9,613
250
2,280
0
5,064,819
4,867,467
5,210,535
6,428,682
8,259,832
2.5 The figures in table 2 (above) shows that there are two major area of increase in debt over the five
year period:
i)
The first is housing benefit overpayments. Housing benefit overpayments have increased
by £1.2 million over the 5 year period. It should be noted that the amount of housing
benefit paid out has also increased over this period. In 2007/08 £55.1 million was paid out
and in 2011/12 £84 million paid out.
ii)
The second is community and housing debt, which has increased considerably when
compared to the same time last year. The cause of this increase is currently being
investigated.
2.6
3
3.1
The action being taken to recover the largest debts is outlined below.
THE PROCESS FOR COLLECTION OF MISCELLANEOUS DEBT
In considering the current levels of debt, it is important to outline the general process Merton
currently has in place to collect its arrears. In general terms the process has 5 stages, as detailed
below, although processes employed vary by debt type. It is important to note that most debtors
can not pay their outstanding liabilities other than by payment arrangements. Once a payment
arrangement has been made it can not be changed without the debtors consent.
- 41 -
71
Table 3 – the process for collecting debt
Stage 1
Invoice
issued to
debtor with
30 days
allowed for
payment.
Stage 2
After 30
days and
following two
requests for
payment, a
final warning
notice is
issued and
the case
passed to
the Debt
Recovery
team.
Stage 3
The debt and debtor is
evaluated to ensure the
most effective recovery
action is taken to
attempt recovery.
This will include
contacting debtors’
direct and collecting
payment or agreeing
repayment plans and
passing the debt to
collection agents to
collect on our behalf,
bankruptcy
proceedings,
attachment to benefit
etc.
Stage 4
If the debt remains
unpaid then County
Court action is taken
by the Debt Recovery
team’s solicitor who
administers this
process.
Stage 5
The final
stage is
consideration
of the debt
for write-off if
all other
attempts to
collect the
debt have
failed.
4
DEBT OVER ONE YEAR OLD
4.1
Debt over 1 year old has increased by £128,758 since the end of April 2012.
Table 4 – Debt over 1 year old compared to April 2012
Department
Env & Regeneration
Corporate Services Note 1
Housing Benefits
Childrens, Schools & Families
Community & Housing
Chief Executives
Total
April 2012
65,104
45,461
1,695,646
54,992
1,421,831
0
3,283,034
Oct 2012
160,738
90,505
1,982,287
38,641
1,436,911
0
3,709,082
Variance
-95,634
-45,044
-286,641
16,351
-15,080
0
426,048
% Variance
59.50
49.77
14.46
-42.32
1.05
0.00
11.49
4.2
The majority of debt over 1 year old is for Community and Housing debts and Housing Benefit
overpayments.
4.3
The debt for Community and Housing over a year old has increased by £15,080 since April 2012.
4.4
Housing benefit overpayment debt over a year old has increased by £286,641 since April 2012.
The total amount of housing benefit overpayments outstanding has reduced from £5.3 million
when last reported at the end of August down to £5.18 million. Of this £1.9 million is being
recovered from ongoing benefit through current housing benefit payments, this equates to
approximately £110,000 per month being reduced from payments to off-set these overpayments.
Over £3.5 million is on a payment arrangement or recovery from ongoing benefit.
4.5
It should be noted that the level and number of housing benefit overpayments continues to
increase due to the continued drive to identify fraud and failure to declare change in claimant
- 42 -
72
circumstances. In the second quarter of 2012/13 over £890,000 of overpayments were identified
and over £420,000 either recovered or off set against housing benefit.
4.6
The graph below shows breakdown of all housing benefit overpayments by recovery action.
Graph 1 – Total Housing Benefit Debt by recovery action from April 2012
4.7
Of the total debt outstanding shown in the graph 20% requires further recovery action. This figure
has increased slightly from 19% when last reported in August 2012. This is the debt where
effective recovery action can be taken.
- 43 -
73
6.
PROVISION FOR BAD AND DOUBTFUL DEBTS
6.1 A provision has been made available for writing off bad and doubtful debts. Clearly, every attempt
is made to collect debts before write-off is considered. The current level of provision is highlighted
below.
6.2 The Council adheres to the requirements of the SORP when calculating its provisions. Merton’s
methodology is to provide for on the basis of the collection rates for individual departmental debt,
and the age of the debt. A further review is undertaken to factor in any general economic
conditions.
6.3 Merton’s provision fully complies with CIPFA guidance and is considered prudent.
Provision for Bad and Doubtful Debts as at 31 March 2012
Department
Env & Regeneration
Corporate Services
Housing Benefits
Children, Schools & Families
Community & Housing
Chief Executive’s
Total
7.
7.1
Less than 1
year
£
87,557
47,870
54,387
423,324
0
928
614,066
Over 1 year
£
172,271
72,754
60,022
1,021,830
228,102
30,955
1,585,934
Total
provision
£
259,828
120,624
114,409
1,445,154
228,102
31,883
2,200,000
EXECUTIVE SUMMARY / CONCLUSION
Merton’s total level of miscellaneous debt arrears i.e. invoices over 39 days old, at 31st October
2012 is £8,259,829. The net level of arrears, when the matter was last reported in October 2012
was £7,823,560.
.
- 44 -
74
8.
TOTAL DEBT DUE TO MERTON
The total amount due to Merton as at 31st October 2012 is detailed in table 6 below.
Table 6 – Total debt outstanding as at 31st October 2012 and compared with
previous periods over the past 12 months
Miscellanous
sundry debt
Note 1
HB debt in
Benefit
system Note
2
Housing Rent
Note 3
Parking
Services
Council Tax
Note 4
Business
Rates Note 5
Total
Oct-11
£
8,579,404
Dec-11
Apr-12
£
£
9,691,404 10,486,996
Jun-12
£
10,794,471
Aug-12
£
10,465,794
Oct-12
£
11,531,061
2,165,057
2,268,775
2,245,086
2,281,419
2,368,287
2,451,628
274,230
274,200
231,481
231,364
231,364
231,236
1,220,451
1,441,224
1,537,996
1,674,128
1,797,029
1,913,322
4,566,202
4,312,829
6,109,112
5,263,539
4,816,141
4,166,454
2,071,050
2,055,074
2,966,899
2,311,224
1,760,715
1,656,657
23,577,570
22,556,145
21,439,330
21,950,358
18,876,394
20,043,506
Note 1 This figure differs from the amount shown in Table 1 as it shows all debt, including that which is less than 39 days old.
Note 2 This is the housing benefit debt within the benefits system
Note 3 This is former tenants rent arrears – leaseholder debts are included in miscellaneous sundry debt
Note 4 Council tax debt does not include the current year council tax collection.
Note 5 Business rates debt does not include the current year business rates collection
- 45 -
75
8.1
Detailed breakdowns of the Council Car Parking figures are shown below:
Table 7a - Parking Aged Debtors
Report
Period Outstanding
0 - 3 Months
3 - 6 Months
6 - 9 Months
9 - 12 Months
12 - 15 Months
Over 15 Months
Balance
Outstanding
07/09/12
Number of
Cases
Outstanding
642,505
407,145
318,127
196,459
134,261
214,828
7,515
2,646
1,905
1,194
848
1,450
Total
1,913,325
15,558
Total End August 2012
1,797,033
14,789
116,292
769
Increase
REPORT AUTHOR
− Name: David Keppler
− Tel: 020 8545 3727
− email: [email protected]
- 46 -
76
CORPORATE SERVICES DEPARTMENT SAVINGS
Ref
Description of Saving
Customer Services - Revenues and Benenfits
APPENDIX 7
2012/13
Type of
Savings
Saving Requirement
(see key)
£000
2012/13
Savings
Expected
to yearend
£000
RAG
CS1
Reduction in postage budget
CS2
SNS1
30
30
G
Reduction in building work budget
SNS1
10
10
G
Reduction in recruitment budget
Reduction in agency staff and translation budgets
Customer Services - Business Rates
Reduction of Valuation Assistant post
SS1
SNS1
7
5
7
5
G
G
SS1
19
5
R
SS2
45
45
G
SS1
70
70
G
SS1
SS2
31
40
31
40
G
G
SS2
20
20
G
SS1
SS1
SNS2
28
21
10
28
21
10
G
G
G
SI2
32
32
G
CS3
CS4
CS5
CS6
CS8
CS10
CS11
CS14
CS15
CS16
CS17
CS18
CS19
CS20
CS21
CS23
CS24
CS25
CS26
CS27
Customer Services - Benefits
Reduce benefits officer posts by 1.5 FTE
Customer Services - Bailiff
Reduction of 1 FTE bailiff post and 0.4 FTE Admin Officer
Customer Services - Council Tax Collection
Reduce Revenue Officers by 1FTE.
Delete one Manager post.
Customer Services - Support Team
Reduce system support officers by 0.5FTE
Customer Service - Merton Link
Reduction of 1 FTE arising from CRM
Reduction of 1 FTE arising from introduction of menu option on switchboard
Reduction in level of cleaning in public areas
Customer Service - Registrars
Net impact of increased demand for weddings
Customer Service - Translation Service
Increase in income
Infrastructure & Transactions - IT Service Delivery
Deletion/reduction of various budgets
Deletion of training budget for specialised IT
Reduction/deletion of various budgets
Reduction/deletion of various budgets
Reduction arising from consolidation of budgets
Reduction in budgets
Reduction in budget due to cancellation/ consolidation of support and maintenance contracts
Reduction due to consolidation of maintenance contracts
CS28
CS29 Reduction in leasing costs for the Corporate Printing Strategy
CS30
CS31
CS32
CS33
CS34
CS35
CS36
CS37
CS38
CS39
CS40
CS41
Infrastructure & Transactions - Facilities Management
Reduction of 2 FTE's (Facilities Technical Manager + Technical Administration Officers post).
Change Energy Administration officer post to be self financing made self financing
Reduce 1 FTE Postal & Scanning Assistant
Restructure of Building Services & Security Team (delete Shift Team Leaders Posts)
Reduction of number of vans
Close Civic Centre on Saturdays (Contractual Overtime-Security) E02221-AA03
Councillor Courier Run - reduce to 1 visit per week from 2
Introduce a charge for the Archive Service Facility
Savings on Print Room copy equipment
Close Worsfold House and relocate service to Civic Centre
Close the YOT Office in Athena House and relocate the service to Civic Centre
Infrastructure & Transactions Transactional Services
Delete 1 vacant Assistant Vendor Maintenance Officer post (part)
CS42 Delete 1 Transactional Officer Post (compulsory redundancy)
CS43 Recovery of overpayments and other VAT recovery
Human Resources - Transactions
CS45
Reorganise payroll team, link to i-Trent implementation
S11
10
10
G
SNS1
SNS2
SNS1
SP1
SP1
8
21
2
9
30
8
21
2
9
30
G
G
G
G
G
SP1
SNS2
6
72
6
72
G
G
SNS2
SS2
30
60
30
60
G
G
SS1
SS2
SS2
SNS1
SS2
SS2
SI2
SNS1
SPROP
SPROP
63
37
23
10
5
63
5
15
50
12
51
63
37
23
10
5
34
5
15
50
12
51
G
G
G
G
G
A
G
G
G
G
G
SS2
SS2
SP1
10
28
50
10
28
50
G
G
G
59
0
R
R
SS2
SS2
Human Resources - Business Partners
CS48 Review of function with integration with Sutton Teams
SS2
40
0
CS50
SS2
40
40
G
SS2
SNS1
SS2
24
6
24
6
G
G
4
20
2
20
A
G
CS53
CS55
Human Resources - Employee Relations
Reduce Senior Management
Corporate Governance - Democracy Services
Stop overtime payments to Democratic Services Officers
Reduce scrutiny support fund
Reduction in overtime payments to staff in Mayor's Office
CS56
CS57 Reduction in supplies & services inflation
Corporate Governance - Information Team
49
49
G
CS62 Restructure of Legal Services following merger with LB Richmond
127
127
G
CS63
300
300
G
24
24
G
280
300
280
300
G
G
CS61 Fund direct LLC Staff costs from LLC Income
Corporate Governance - Legal Services
CS64
CS65
CS67
CS69
CS70
CS71
Resources
Review of Insurance Arrangements
Resources
Reduce the Council's contribution to the Local Strategic Partnership.
Resources
Utilise London Councils Grants Scheme repatriated funding to avoid cut to Strategic Voluntary
Sector Funding
Energy Procurement
Delete Director of Transformation's post
Communications, Graphic Design Team
Delete the in-house Graphics team
Communications Team
Delete vacant Communications Assistant post.
Total Corporate Services 2011-2012
Base budgets were reduced. Monitored as part of monthly budgetary control.
SI2
105
105
G
SS2
(28)
(28)
G
SS2
26
26
G
2,414
2,270
Comments
The post has been deleted but due to a fall in business rate
collection there is an overtime cost on improving collections
and reviewing processes.
The full saving is unachievable due to late implementation
The saving is not achievable in the current year due to a
shortfall in Schools SLA income and higher costs due to
paper payslips required
A restructure of the HR Business Partner function is being
reviewed and the saving unachievable in the current year
In-house service ceased
77
CHILDREN, SCHOOLS AND FAMILIES DEPARTMENT SAVINGS
APPENDIX 7
2012/13
Ref
CSF01 CSF Early Years and Children’s Centres
2012/13
Savings
Savings
Expected to
Requirement
year-end
£000
£000
RAG
Comments
Reduction in commissioning budget and bringing in
house of a service
25
25
G
Base budgets were reduced. Monitored as
part of monthly budgetary control.
Reduction
in
provision
of
CPD (Professional
Development/training) and establishing some charges for
CPD/services
48
48
G
6
6
G
128
128
G
100
100
G
30
30
G
Reduce level of expenses available to Fostering and
Adoption Panel members – may seek as a combination
of shared panels cross borough or reduced numbers of
panels alongside reduced levels of payment to panel
members.
CSF10 CSF Children’s Social Care
20
20
G
Reduce the available daycare budget for children
currently used to fund childminding places, after school
and breakfast clubs etc.
Team Manager post in the Court Assessment Team.
20
20
G
47
47
G
30
30
G
t f
thl b d t
t l
10
10
G
50
42
A
Delay in redundancy caused an
underachievemnt of saving for 2012/13 only.
The overspend resulting from this is included
in monthly budget monitoring
50
50
G
70
70
G
30
30
G
14
14
G
Increase fees at Lavender CC
Back office and service efficiencies.
Restructuring of internal teams to reduce posts and
streamline management.
CSF07 Area Based Grant
Reduce management layer in the business support team.
Reduce the budget available for commissioning expert
Reduce the travel budget available for parents whose
children are in care.
CSF17 CSF School Standards and Quality
Deletion of post in SSQ.
CSF18 CSF School Standards and Quality
Increase in income generation from CPD (Professional
development/training for teachers/school staff) and ICT
buy back
CSF20 CSF SEND Integrated Service
Deletion of management post from SEND integrated
service
CSF22 CSF Contracts, Procurement and School
Additional capitalisation of capital project management
staffing
CSF26 CSF Youth Inclusion
Reduce Youth Service Training budget used to provide
training to youth workers in Merton and some supplies
and services.
78
CHILDREN, SCHOOLS AND FAMILIES DEPARTMENT SAVINGS
APPENDIX 7
2012/13
Ref
Use the Hospital tuition budget (DSG) currently used to
fund education provision for children and young people
who are in hospital to continue funding the budget
reduction in the Education Welfare Team.
The Youth Service Manager post is proposed to
becomes half time from December 2012. This would
involve a redundancy.
CSF34 CSF Commissioning Function and Commissioning
Reduce ex LSC commissioning capacity for post 16
education and training
CSF36 CSF Commissioning Function and Commissioning
Reduce expenditure on LAC and SEN placements
through implementation of Access to Resources model.
CSF39 CSF SEN Transport
Implement new transport policy from April 2012
Total Children, Schools & Families Savings 2010
2012/13
Savings
Savings
Expected to
Requirement
year-end
£000
£000
60
60
RAG
G
Comments
15
15
G
100
70
A
Delay in redundancy caused an
underachievemnt of saving for 2012/13 only.
The overspend resulting from this is included
in monthly budget monitoring
100
100
G
50
50
G
1,003
965
79
ENVIRONMENT & REGENERATION SAVINGS
Ref
Service
ER01
Parks,
Greenspaces &
Cemeteries
Description of saving
1)
2)
3)
4)
5)
6)
ER04
Leisure & Culture 1)
2)
3)
4)
5)
6)
ER05
Leisure & Culture 1)
2)
3)
4)
ER07
ER13
Development & 1)
Building Control
ER17
ER18
ER20
ER22
ER24
459
330
R
Base budgets were reduced, but income related
savings not expected to be fully achieved
35
35
G
Base budgets were reduced. Monitored as part of
monthly budgetary control.
10
10
G
Increase income through installation of multi use games area to
rear of Canons Leisure Centre to provide additional provision for
The Government are proposing changes to the current charging
model for DC. This would mean that the council will be able to
set its own fees (levels are currently prescribed) in order to
recover the full cost of delivering a number of services in this
area, although it will not be able to make a profit.
Increase in income for Hartfield Road Bus Lane arising from
enforcement of anti-congestion measures to improve traffic flow.
Reduce lost cases at PATAS.
Eliminate part payments of PCN's.
Reduce PCN cancellations.
Improve management of CEO performance to generate
efficiencies.
Reduce CEO absenteeism.
CPZ expansion based upon the current demand for zones that
will go live in 2012.
New Expenditure initiatives organisational restructure remaining
full year effect.
Enforcement of moving traffic offences.
Parking Services 1)
Street Cleansing 2)
Waste
Management
Waste
Management
Graffiti Removal – This is a very small service:143k in total. The
workload is somewhat seasonal and it is proposed to change
working practices in this area to focus when need is greatest.
This will result in approx 50% saving
3)
Restructure and reduction of staffing in the enforcement team
1)
Reductions in landfill tonnage and anticipated Slwp contract cost
2)
3)
4)
Ceasing compensation payments to Sutton agreed as in the
overall Slwp financial interest
Net of £691,000 Landfil Tax etc.
Reduction in Slwp contract dry recycling handling rate per tonne
5)
6)
Contract renegotiations for Slwp HRRCs
Contract management of Garth Road Waste Transfer Station
7) Staff saving
12) Introduction of Customer Relationship Management (CRM)
system leading to reduction in staffing
1) Introduction of 6 day working week for refuse, recycling and
food collection from Oct 2012
Traffic & Highways 1)
Introduce Streetworks Permitting Scheme – Organisations
undertaking works on the highways will be charged a fee.This
saving recognises that some existing costs can be absorbed
within the fee charging arrangements
2)
Income from fixed penalty notices (FPN’s) in relation to skips,
hoardings and scaffolding and through access bar markings
3)
Savings on energy (£50k) and service changes associated with
the existing Street Lighting Contract (£22k)
4)
Potential Savings against final year of existing Highway
Maintenance & Improvement contract
Potential 10% saving in Revenue budget from re-procurement o
Highway Works and Services Contract – Potential savings will
only be known following Financial Evaluation of potential service
providers- To be confirmed in February 2012 (10% of the
remaining Revenue works budget associated with this contract£1m)
15% reduction in staffing
Reduction in Footway Maintenance budget (Revenue)
Reduction in Street Furniture Budget
Reduction in ‘Ditching/Watercourses’ budget
Reduction in Street Lighting budget (Revenue)
Reduction in ‘Walksheet’ budget – Highway Safety Inspection
Works
A further 15% reduction in staffing
5)
ER21
RAG
2)
3)
4)
5)
8)
ER15
2012/13
Savings
Expected to
year-end
£000
Parking Services 1)
6)
7)
ER14
Staffing reductions, including a cemetery supervisor (which
would leave 1 supervisor covering both LBM and Merton &
Sutton cemetery teams) and the Wimbledon Park Development
Manager which is a fixed term contract that will not be renewed
Increases in fees and charges will be in the form of a 5%
increase in sport booking fees and an 20% increase in cemeter
Reducing supplies, services and utilities costs and procuring
more effectively.
Increased tenancy income will be made by letting 5 parks
properties on the open market.
By encouraging self management of some allotment sites or
increasing charges by 80%, there will be a saving of 17.5k and
.A reduction in grant to Mitcham Common Conservators of 10k
pa [out of £60k] is included.
Reductions in supplies & services budgets.
Reduction in 0.2 fte of staff.
Increased income at Morden Assembly Hall and the
Watersports Centre.
Service reduction of approx 15% less grant per annum in each
of the next three years to Polka and Attic Theatres.
Removal of small Olympics budget after 2012 games.
Transfer of Merton Hall to South Wimbledon Community
Association linked to schools expansion programme and
transfer of a 0.5 fte officer to support the Allotment Service to
Greenspaces to be self-financing.
Delete 3 fte Leisure & Arts Development Officers leaving one
Development Officer only to do commercial work self-funding
the post. Use £100k to commission some reduced arts and
leisure development function.
Identify alternative funding for or do not take part in London
Youth Games.
Delete post of Leisure & Business Projects Officer (0.7 fte).
APPENDIX 7
2012/13
Savings
Requireme
nt £000
2)
3)
4)
5)
6)
Transport
1)
Make changes to staffing structure to merge and change some
work responsibilities, involving the deletion of one post plus
ceasing the payment of contractual overtime.
Total E&R Department Savings for 2012-2015
Comments
300
0
R
The Government has delayed this proposal and no
agreement has been made as to when it might be
announced. Underspends elsewhere within the
department are offsetting this saving in the shortterm, whilst other savings proposals are currently
being identified in case this saving is not
implemented.
720
720
G
400
400
G
120
120
G
219
219
G
271
0
R
The Head of Street Scene and Waste is currently
drawing up alternative proposals to meet this
saving.
185
145
A
There will be a delay in the introduction of the
London Permit Scheme due to a delay in the
approval from the Department for Transport. At
this stage, it is estimated that the delay will be
approximately three months, meaning that the
section will only receive three months of related
income rather than the expected six. Monitored as
467
467
G
246
246
G
129
41
R
The removal of the contractual overtime element o
this saving was not implemented. Explanations are
being sought as the reasons for this.
3,561
2,733
80
COMMUNITY AND HOUSING DEPARTMENT
Ref
APPENDIX 7
No.
ASC
4
TCES Retail Model (simple equipment)
ASC
5
OT catalogue
ASC
ASC
12
6
CADL's (complex equipment)
Transport
2012/13
2012/13
Savings
Savings
Expected
Requirement to year-end
£000
£000
32
32
RAG
G
186
0
R
ASC
7
0% inflation uplift
650
650
ASC
8
Optimise block and spot contracts
300
200
G
R
ASC
10
Optimise telecare usage
300
9
R
ASC
13
Care Funding Calculator + plus high cost Res
200
19
Monitoring high value (1-to-1) and high cost placements
50
50
ASC
14
De-registration of residential care (Based on 40 not 50)
400
400
17
Optimise use of Shared Lives
350
18
Restructuring Supporting People
50
Hsg
20
21
22
23
1
1
50
50
1
Remodelling Dom Care
Staff Savings Reablement
Disabled Facilities Grant for adaptations.
Staff Savings Direct Provision
Increase income from commercial courses and cafe
Completion of changes to opening hours, rationalisation of a
number of small contracts and increase in income. Includes
some elements of capital rationalisation on Media Fund.
1,250
100
30
201
30
84
Deletion of funding to Age Concern for community gardening
service.
37
37
4,250
3,323
Total Community and Housing Savings 2012-2013
1,250
100
30
201
30
84
As a result of re-negotiation of block and spot rates with CCHT and Lifestyle, indicative savings for the
second half of the current financial year are circa £200k. This figure will be confirmed over the coming
month. The Award report for the new Care Home Framework (which will deliver the move from block
contracts) will go to Cabinet in December 2012. The Tender process will commence mid September.
There is a high risk this project will not achieve the targeted level of savings for 2012-13, as any
savings related to the introduction of the framework will only be yielded over the last quarter in the
current financial year.
The savings achieved to date remains at £9.4k, as the savings of circa £35k for the introduction of
assisted technologies reported in June has already been recorded as part of the proposals received
from Choice Support as part of the contract re-negotiation process for the 'De-registration' project
(ASC14) below. The Consultants report has been received. SW has proposed that the division works
together in taking this project forward. This project will not achieve the targeted level of savings for
2012-13.
Customer reviews continue to generate savings. This project is likely to over-achieve its savings target.
G
ASC
ASC
ASC
ASC
MAED
LIB
We are still on track to achieve the target for 2012-13.
G
R
ASC
There continues to be a challenge around taxi expenditure, as the re-tendered routes are not yielding
savings as required. A0-S indicates this element will continue to be monitored, and a review will be
conducted once all taxi routes are re-tendered. A timeframe needs to be confirmed. Consultation
around proposed route changes for day service and self drive services continues. Work has
commenced on revising the Transport policy and will continue through to September.
Timeframes for protocol familiarisation training will be revised once the go live date for the Brokerage
function in Commissioning has been established. In the meantime ten reviews have taken place,
additional savings of circa £44.8k have been confirmed through the CFC process. The outcome of
further CFC negotiations awaited.
G
ASC
CADLS: The savings target for 2012-13 of £32k has been achieved. There are still a number of issues
that need to be resolved with LB Croydon IPH, and these are being progressed through the ICES
Board. This project is likely to over-achieve .
A
150
ASC
Comments
G
G
G
G
G
The savings of circa £372k to date are due to contract re-negotiation with the Providers. Included in the
savings figure is £35k associated with the introduction of assisted technologies resulting from three of
the reviewed customers. An amount of circa £56k p.a that LBM will incur from importing a LB
Wandsworth customer under OR has been deducted from the savings figure.
The registration with CQC has been completed. An additional carer has been selected at panel on 17
July. The background processes including the development of a service specification, are being
progressed ahead of the pilot. There is a risk however, that if there are compatability issues between
customers and carers, this will impact on the number of customers available for the pilot.
A meeting between Commissioning and MH is scheduled to look specifically at the review of Supporting
People contracts. Once this meeting has taken place the project plan will be revised. It is envisaged
that this project will achieve at least an additional £16k savings in 2012-13, surpassing the original
target by at least £20k.
Need to monitor spend on homecare to ensure savings achieved.
Taken from budgets already
G
G
Savings proposals relating to reviews of Ordinary Residence of cleints scheduled for 2013-14, but the process has been bought forward to 2012-13. It is estimated that £470k savings will be achieved
Page 5 of 5
81
APPENDIX 8
The following charts show the forecast year end variance by department with a
comparison for 2011/12:
Corporate Services
3,500
3,000
£'000
2,500
11/12 Variance
2,000
12/13 Variance
1,500
1,000
500
0
March
February
January
December
November
October
September
August
July
June
May
1,500
1,000
£'000
500
0
11/12 Variance
12/13 Variance
(500)
(1,000)
(1,500)
82
Adult Social Care
0
(500)
£'000
(1,000)
11/12 Variance
(1,500)
12/13 Variance
(2,000)
(2,500)
(3,000)
(3,500)
Libraries & Adult Education
140
120
11/12 Variance
£'000
100
12/13 Variance
80
60
40
20
0
March
February
January
December
November
October
September
August
July
June
May
83
0
(50)
£'000
(100)
(150)
11/12 Variance
(200)
12/13 Variance
(250)
(300)
March
February
January
December
November
October
September
August
July
June
May
(350)
(400)
(450)
500
0
£'000
March
February
January
December
November
October
September
August
July
(1,000)
June
May
(500)
11/12 Variance
12/13 Variance
(1,500)
(2,000)
(2,500)
(3,000)
84
85
Corporate
Services
Grand Total
Adult Social Care - Client Contribution &
Other Cont
Community &
MAE & Libraries
Housing
Housing
C&H Total
-4,862
-561
-48
-5,471
-29,631
-52,487
-5,739
-7,458
-4,216
-27
-17,440
-2,684
-376
-168
-904
-362
-4
-4,499
-27,741
-2,557
-603
-17
-3,177
-5,531
-7,696
-4,258
0
-17,485
-3,012
-118
-240
-1,222
-268
0
-4,861
-1,893
-2,305
42
-31
-2,294
-208
238
42
-27
45
328
-257
72
317
-94
-4
362
Year to Date
Year to Date Year to Date
Over (under)
Actual (P7) Budget (P7)
Spend
-1,250
-1,376
126
-113
-127
14
-563
-661
98
-296
-52
-244
-2,222
-2,216
-6
-8,966
-923
-30
-9,919
-9,671
-13,321
-5,876
-10
-28,878
-5,876
-203
-602
-2,099
-819
0
-9,599
Customer Services
Human Resources
Infrastructure & Transactions
Resources
CS Total
Environment &
Regeneration
Safer Merton
E&R Total
-2,653
-247
-1,082
-111
-4,093
Total Budget
Schools Buy Back
PDC
Early Years & Childrens Centres
Other
CSF Total
Division/Service
Childrens
Schools &
Families
Department
2012/13 Customer & Client Receipts - £000's
-53,467
-9,794
-881
-77
-10,752
-10,027
-13,057
-5,880
-33
-28,997
-5,629
-203
-423
-2,159
-819
0
-9,233
-2,800
-245
-1,082
-360
-4,487
Latest
Forecast
-980
-828
42
-47
-833
-356
264
-4
-23
-119
247
0
179
-60
0
0
366
-9,081
-30
-20
0
-50
-6,171
-81
-554
0
-6,806
-130
0
-49
-1,970
0
0
-2,149
-44,386
-9,764
-861
-77
-10,702
-3,856
-12,976
-5,326
-33
-22,191
-5,499
-203
-374
-189
-819
0
-7,084
Internal External
Forecast
Receipts Receipts
Variance
Forecast Forecast
-147
-2,800
2
-76
-169
0
-1,082
-249
-360
-394
-76
-4,411
Appendix 9
This page is intentionally blank
86

Cabinet Agenda Item 11 Date: 10 December 2012 - fp 1190

Transcription

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