Contact: Bevis Ingram, ext 7508

1. Summary

1.1 The attached paper outlines the latest position with monitoring the Recreation and Heritage budget for the year 2001/02, based on information available at the end of January 2002.

1.2 The paper draws attention to the results of the action taken by Recreation and Heritage departments to offset the overspending due to Foot and Mouth disease. The paper also draws attention to an overspending in the main Museum service and a major overspending for the first full financial year of operation at Milestones. The costs of the restructuring of the Recreation and Heritage department (previously reported) have been absorbed.

1.3 The following decisions are sought:

· That the attention of the Cabinet is drawn to the latest financial projection of Recreation and Heritage

· That it be a recommendation to the Cabinet that the overspending incurred at Milestones be carried forward when the accounts are closed to 2002/03 and recovered from future income generated by the museum

· That the Recreation and Heritage officers continue to identify opportunities for savings to contribute to reducing the rest of the overspend.

· That the report be referred to the Recreation and Heritage Policy Review Committee so that members can be aware of the action taken to overcome the financial problems caused by the Foot and Mouth outbreak.

2. Reason

2.1 To give evidence of regular monitoring of spending against budget.

3. Other options considered and rejected

3.1 Not applicable.

4. Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5. Dispensation granted by the Standards Committee

5.1 Not applicable.

6. Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: (signature) Date: (date of decision)

Councillor J Waddington

Contact: Bevis Ingram, ext 7508

1. Introduction

1.1 This report outlines the latest position with monitoring the Recreation and Heritage budget for the year 2001/02. Previous reports (particularly the monitoring report of 18 October 2001), reported a probable net overspend due to Foot and Mouth of £376,000 and an overspend due to the restructuring of Recreation and Heritage of £30,000.

2. Cash limit

2.1 The Recreation and Heritage revenue budget cash limit for 2001/02 is £24,613,000

3. 2001/02 Forecast Revenue budget outturn

3.1 The appendix to this report shows the detailed forecast outturn figures. The first page shows a summary followed by a page for each service showing a subjective breakdown of the budget, spending to date, and any significant financial issues identified.

3.2 Efforts have been made to make savings to offset these overspends. The costs of the restructuring have now been absorbed. Savings have been made in Arts, Countryside and Community, including generating additional income, totalling £105,000, to be offset against the Foot and Mouth costs. Against this, the Museums Service is now forecasting an overspend of £35,000, and Milestones is forecasting an overspend of £245,000.

4. Foot and Mouth disease

4.1 As previously reported, Foot and Mouth disease has had a big impact on the Countryside Service and on Outdoor Centres. The overspend previously reported as £376,000 was made up as follows:

	£
Lost income	216,900
Additional costs	228,300
Gross cost	445,200
Less savings identified October 2001	69,200
Net cost	376,000

4.2 Since October, further savings have been identified totalling £105,000 as follows:

		£	£
Countryside
	Supplies and Services	49,000
	Additional income	32,000
	Less additional staff costs of events generating additional income	(7,000)
			74,000
Sport and Community
	Reduction in net overspend		28,000
			102,000
Calshot			3,000
			105,000

The current position is therefore a projected overspend of £271,000.

5. Milestones

5.1 The JMC for Milestones have received regular monitoring reports through the year. The current forecast overspend is £245,000, is due to non achievement of revised income targets, on top of the agreed subsidy of £308,000.

6. Museums

6.1 Museums are forecasting a relatively small overspend of £35,000. Efforts will be made to pull this back by the year end.

6.2 A saving of £21,000 can be made if there is no further expenditure on Major Arts Acquisitions.

7. Recreation and Heritage restructuring

7.1 The additional costs of this in 2001/02 have been absorbed, principally by Archives and Libraries, but also partly by Arts, Countryside and Community.

Recommendation

That the attention of the Cabinet is drawn to the latest financial projection of Recreation and Heritage.

That it be a recommendation to the Cabinet that the overspending incurred at Milestones be carried forward when the accounts are closed to 2002/03 and recovered from future income generated by the museum.

That the Recreation and Heritage officers continue to identify opportunities for savings to contribute to reducing the rest of the overspend.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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