Archived decisions

Hampshire County Council

Recreation and Heritage Policy Review Committee Item 11

15 September 2005

Financial and Performance Monitoring 2005/06

Report of the Director of Recreation and Heritage and the County

Treasurer

Contact: Bevis Ingram (01962) 84 7508 [email protected]

Stuart Dorward (01962) 84 6110 [email protected]

1. Introduction

1.1 The purpose of this report is to provide an update on the Department's financial position for 2005/06. The previous report, in July 2005, outlined some of the key financial issues facing the Department in continuing to provide high quality services. In particular, it identified pressures in the Library and Information Service budget, including the resource implications of meeting key Public Library Service Standards.

1.2 This report is based on monitoring of activity to the end of July. This has identified that there are financial pressures - without remedial action - of some £330,000, or 1.1% of the Recreation and Heritage budget. However, it is envisaged that managerial action already identified could make savings of about £180,000, reducing the overspend to £150,000 and potentially lower than that figure. It is still early in the financial year and the current financial forecast could be subject to further changes through the year. The Recreation and Heritage Management Team will identify an action plan to deliver a balanced budget position at 31 March 2006.

1.3 Decisions on the Recreation and Heritage budget impact on the financial resources available to the service to contribute to the following corporate strategic aims :

i) maximising life opportunities

ii) stewardship of the environment

iii) achieving economic prosperity

iv) building strong and safe communities

v) improving services

vi) developing councillors and staff

2. Financial Position 2005/06

2.1 Appendix 1 shows the summarised position for the Recreation and Heritage services. The total cash limit shows the following changes from the initial budget for the year:

	£'000
Original approved budget	30,163
Transfer from capital programme to provide partial funding for IT post to support implementation of that programme	17
`Repayment' of capital deferred in 2004/05	(198)
	29,982

2.2 Appendix 2 shows the financial position for each service in more detail.

3. Library and Information Service

3.1 Income levels continue to be low compared to the budget (£220,000 below budget). The majority of this (some £180,000) arises on fines which could partially be due to the extension of the loan period on books from three to four weeks.

3.2 Based on current levels of activity, general running costs, such as printing, stationery, photocopying and transport , are running ahead of budget; managerial action is being taken to reduce expenditure on these to an absolute minimum. This is also the case with furniture and equipment, where it is possible to improve the financial position by deferring acquisitions.

3.3 These expenditure pressures on the service are partially offset by savings on staffing levels, continuing the vacancy management policy used in the last financial year. Currently a staffing underspend of £200,000 is predicted ; in 2004/05 the equivalent figure was £250,000.

3.4 As mentioned in the July report, further investment in IT equipment and workstations would be necessary to achieve the Public Library Service Standard on public access internet terminals. The options for achieving this are being evaluated and will be the subject of a future report to Policy Review Committee and the Executive Member. Any such investment would be likely to result in a call on the capital programme and additional running costs would add to the revenue pressures. The costs and benefits need to be evaluated carefully.

4. Other Services

4.1 The other services are projected to spend at, or very close to, budget. Areas

worthy of note are as follows :

4.2 Sport, Community and Outdoor Centres

o The project appraisal for Argoed Lwyd Mountain Centre, approved in March this year, indicated that £58,000 revenue funding would be required in 2005/06; this will be the first call on any under spending arising on the Sport and Community budget in the current financial year, subject to any further departmental or corporate requirements. At this stage a modest under spending is anticipated, which will be reviewed in the light of income levels throughout the year

o An item on the Executive Member's Decision Day agenda details access road improvements at Tile Barn Outdoor Centre and recommends that the cost of £88,000 be funded by a transfer from the revenue budget to the capital programme. If this recommendation is approved, the funding will be made available from the Outdoor Centres special needs budget which in total exceeds £100,000.

o Employees expenditure to date is low as a result of vacancies, many of which have now been filled, and seasonal factors with temporary staff being used to deliver courses

o As usual Calshot shows "negative" actual spending to date. This is because income for courses is received in advance.

4.3 Milestones Museum ; The financial position is constantly monitored in the

light of visitor numbers which are currently in line with budget. There is some

expenditure pressure arising from the use of agency and casual staff which

will also be monitored and managed.

4.4 Museums Main Service ; additional external income (from Gosport Borough

Council and the Renaissance programme) is being utilised to increase the amount of money allocated to community museums to meet local priorities such as improvements in display facilities. Actual net expenditure to date appears high, but this is because much of the income is received at the end of the financial year.

4.5 Countryside Service ; it is anticipated that expenditure will be in line with

cash limit. Extra spending on premises and supplies and services is funded by

grants and contributions

4.6 Arts Service ; a modest over commitment on the grants budget is being

covered by staffing savings, as previously agreed and reported. Again,

expenditure to date is high - this is due to the payment of grants early in the

year.

5. Performance Monitoring

5.1 The financial and performance monitoring report in July outlined the need, as part of the County Council's response to the Government's drive on efficiency in local government, to identify and monitor "quality cross check" performance indicators that would help to demonstrate that efficiency improvements are not being made at the expense of service quality. Seven possible indicators were suggested in the report. Since then further work has been carried out to develop a group of indicators that will broadly reflect the variety of the Recreation and Heritage services, levels of provision and activity. Further work is needed before a final set of recommendations can be made, but it is expected that the following could feature in the list:

6. Impact Assessment

6.1 In compiling this report, account has been taken of the requirements of the Corporate Equalities and Race Scheme.

7. Summary

7.1 The revenue budget for 2005/06 is showing pressures that would result in an

overspending in excess of £330,000 if no action were taken. Managerial

action is being taken which, based on current activity levels, is likely to reduce

this to a maximum of £150,000 and a programme of action will be identified

by Recreation and Heritage Management Team to achieve a balanced budget

position by 31 March 2006. This will be closely monitored and reports

brought to the Policy Review Committee and Executive Member through the

rest of the year.

Recommendations

That members support the following recommendations for the approval of the Executive Member :

1. the financial position be noted

2. the action being taken to address the pressures be endorsed

3. the R & H Management Team find savings to ensure that the potential

overspend is eliminated by the end of 2005/06.

Section 100D - 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:

1. Published works.

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