Archived decisions

Appendix

Colour

1

Revised budget 2006/07 - calculation of the cash limit

yellow

2

Revised budget 2006/07 - comparison with cash limit

yellow

3

Base budget 2007/08 - summary of cash limit

pink

3 - Annex 1

Base budget 2007/08 - definition of base budget

pink

3 - Annex 2

Base budget 2007/08 - significant costs of inflation

pink

3 - Annex 3

Base budget 2007/08 - significant variations from 2006/07 repriced budget

pink

4

Proposals for growth and redeployment 2007/08, 2008/09 and 2009/10

yellow

5

Efficiency statement

yellow

6

Review of income 2007/08

yellow

7

Business units - summarised trading accounts

White

8

Revenue budget 2007/08 - analysis of variations

Blue

9

Revenue Budget 2007/08 - budget book detail

Green

10

Workforce levels and costs 2006/07 - 2008/09

Blue

11

Provisional budget 2008/09 and 2009/10

Pink

£'000

£'000

Original budget 2006/07 at outturn prices

681,539

Transfers to/from other services and contingency allocations: - Eastleigh Family Nursery (from Social Care)

53

=

Adjusted original budget

681,592

Inflation

Provision added since the original budget

-

Other variations

- County Council contribution towards Standards Fund schemes brought forward

- teachers' sickness and maternity cover SLA - 2005/06 overspend brought forward

- transfers to/from LEA Budget

- variation in expenditure financed by government grants:

· Dedicated Schools Grant

· Teachers' Pay Reform Grant

· Standards Fund

· School Standards Grant

· General Sure Start Grant

· School Meals Grant

· School Milk Grant

-1,658

842

3,085

3,972

1,443

717

9

1,386

-267

-477

8,410

=

Cash limit for the revised budget 2006/07

690,644

£'000

£'000

Original budget 2006/07 at outturn prices

65,572

Transfers to/from other services and contingency allocations:

- educating Children Looked After

- Children's Social Care finance staff

- Children's Social Care Management and Support

- Hampshire Wardrobe

Procurement savings

332

535

403

-30

-9

=

Adjusted original budget

66,803

Inflation

Provision added since the original budget

-

Other variations

- County Council contribution towards standards fund schemes brought forward

- transfers to/from LEA Budget

- transfer re European Network for Social Inclusion

- transfer re Busy Bees voucher scheme

- increase for restructuring costs

- reinstatement of balance - staffing

- transfer from reserves re Hampshire Wardrobe

- Teachers' pay reform (transfer to Children's Social Care)

- One-off funding for Children's Services consultation

- variation in expenditure financed by government grants:

· Standards Fund

· Youth Opportunities Fund

· Local Public Service Agreement pump priming

· Information Sharing Index

1,786

379

100

163

-

477

-10

-2

119

-59

30

-10

21

2,428

=

Cash limit for the revised budget 2006/07

69,797

£'000

£'000

Original budget 2006/07 at outturn prices

68,469

Transfers to/from other services and contingency allocations:

- educating Children Looked After

- Social Care finance staff (LEA)

- Social Care finance staff (Adults Social Care)

- Social Care transfers to/from Adults (net)

- Children's Social Care Management and Support

- Eastleigh Family Nursery (Schools)

Young Offenders Teams - removal of grant

Procurement savings

-332

-535

126

-103

-403

-53

-1,580

-12

=

Adjusted original budget

65,577

Inflation

- business rates

-17

Provision added since the original budget

-

Other variations

- Children's Act implementation

- CAMHS

- transfer re Busy Bees voucher scheme

- reinstatement of balance - staffing

- Teachers' pay reform (transfer from LEA)

- variation in expenditure financed by government grants:

· Local Public Service Agreement pump priming

· Children's Fund

50

-65

148

365

-3

-61

10

-15

=

Cash limit for the revised budget 2006/07

66,004

Cash Limit

Revised Budget

Variation

Cash limited expenditure

£'000

£'000

£'000

%

Nursery Individual Schools Budget

Primary Individual Schools Budget

Secondary Individual Schools Budget

Special Individual Schools Budget

Insurance

Licences/subscriptions

School-specific contingencies

Supply cover (not sickness)

Supply cover - sickness and maternity

Schools - support services recharge

Education otherwise than at school

Provision for pupils with statements

Independent and voluntary special schools

Inter-authority recoupment

Behaviour support implementation

Special education - support services recharge

New early years places specific grants

Early Years and Childcare Unit

Assistance to voluntary and private providers

Early years - support services recharge

School catering

Standards Fund - devolved

Non-Standards Fund specific grants

Direct grants to schools

Transitional support grant

Teachers' pay reform

Schools Budget

1,190

278,953

263,069

26,274

36

290

3,349

769

-267

2,440

7,121

7,454

7,461

634

242

1,418

21,981

13,825

2,023

566

133

3,024

681

27,055

-

20,923

690,644

1,190

278,953

263,069

26,274

36

290

3,413

769

-267

2,440

7,246

7,054

7,941

859

242

1,418

21,981

13,665

2,023

566

127

3,024

681

27,055

-

20,923

690,972

-

-

-

-

-

-

+64

-

-

-

+125

-400

+480

+225

-

-

-

-160

-

-

-6

-

-

-

-

-

+328

-

-

-

-

-

-

+1.9

-

-

-

+1.8

-5.4

+6.4

+35.5

-

-

-

-1.2

-

-

-4.5

-

-

-

-

-

-

Cash Limit

Revised Budget

Variation

Cash limited expenditure

£'000

£'000

£'000

%

SEN audit and moderation

Premature retirement compensation

Insurance

LEA initiatives

Non-delegated schools - miscellaneous

Strategic management - support services recharge

Home to school transport

Pupil support

Field, outdoor centres, INTECH and grants

Other non-delegated school budget headings

Access - support services recharge

Special education

LEA initiatives (special)

School improvement - support services recharge

Standards Fund - non-devolved

Teachers' pay reform

Adult education

Community education

Continuing education - home to college transport

Continuing education - other

Youth Service

Departmental strategic & support services

Unallocated amendment

Use of General Sure Start Grant funding

Contribution from Business Unit reserves

LEA Budget

54

2,663

184

3,169

-671

6,657

20,608

400

292

213

4,905

5,801

11

4,488

7,204

413

387

2,213

832

561

6,605

2,692

116

-

-

69,797

30

2,663

184

3,144

-798

6,657

20,958

400

292

213

4,905

5,801

11

4,488

6,903

413

387

2,213

899

553

6,608

2,060

-

-500

-300

68,184

-24

-

-

-25

-127

-

+350

-

-

-

-

-

-

-

-301

-

-

-

+67

-8

+3

-632

-116

-500

-300

-1,613

-44.4

-

-

-0.8

-19.0

-

+1.7

-

-

-

-

-

-

-

-4.2

-

-

-

+8.1

-1.4

-

-

-

-

-

-2.3

Service Strategy and Regulation

Commissioning and Social Work

Children Looked After

Family Support Services

Youth Justice

Other Children and Families Services

Asylum Seekers

Children's Fund

Wessex Youth Offending Partnership

Recovery Plan

Children's Social Care

93

17,587

31,623

6,381

2,316

5,476

158

1,945

51

374

66,004

93

17,887

33,363

6,850

2,201

5,302

158

1,945

51

-

67,850

-

+300

+1,740

+469

-115

-174

-

-

-

-374

1,846

-

+1.7

+5.5

+7.3

-5.0

-3.2

-

-

-

-100.0

2.8

826,445

827,006

561

0.1

Cash Limit

Revised Budget

Variation

Cash limited expenditure

£'000

£'000

£'000

%

Management action to be taken to balance the budget

-

-561

-561

-

Total

826,445

826,445

-

-

Note: + denotes an overspend and - denotes an underspend

£'000

£'000

Original budget 2006/07 at outturn prices

681,539

Transfers to/from other services and contingency allocations

- Eastleigh Family Nursery (from Social Care)

53

=

Adjusted original budget

681,592

Increases for inflation to reflect November 2006 prices (see Annex 2)

-

Inflation allocated during 2006/07 from the central inflation contingency

4,048

-

Reduced cost of inflation over the inflation allowance

-321

3,727

Original budget at November 2006 prices

685,319

Other variations (see Annex 3)

-

Increases to offset excess inflation

321

-

Exclusion of non-recurring 2006/07 expenditure

-

-

Transfers between revenue and capital

-

-

Allowable base budget growth

· variations in pupil numbers

· variation in the number of school days

· revenue effects of the capital programme

· transfers to/from other services

· transfers to/from LEA budget

· variations in expenditure met by Government grants

· passporting

-4,055

-1

-299

-

-

11,054

13,416

20,115

Allocation for future inflation

15,213

=

Base budget 2007/08 at outturn prices

720,968

£'000

£'000

Original budget 2006/07 at outturn prices

65,572

Transfers to/from other services and contingency allocations

- educating children looked after

- Social Care finance staff

- Children's Social Care Management and Support

Procurement savings

332

535

403

-9

=

Adjusted original budget

66,833

Increases for inflation to reflect November 2006 prices (see Annex 2)

-

Inflation allocated during 2006/07 from the central inflation contingency

214

-

Excess cost of inflation over the inflation allowance

613

827

Original budget at November 2006 prices

67,660

Other variations (see Annex 3)

-

Reductions to offset excess inflation

-613

-

Exclusion of non-recurring 2006/07 expenditure

-

-

Allowable base budget growth

· variation in the number of school days

· transfers to/from other services

· transfers to/from LEA budget

· variations in expenditure met by Government grants

· full year effect of 2006/07 growth proposals

· Educational psychologist training

-99

-17

-

1,697

38

45

1,664

Allocation for future inflation

1,481

=

Base budget 2007/08 at outturn prices

70,192

£'000

£'000

Original budget 2006/07 at outturn prices

68,469

Transfers to/from other services and contingency allocations

- educating Children Looked After

- Social Care finance staff

- Social Care finance staff (Adults Social Care)

- Social Care transfers to/from Adults (net)

- Children's Social Care Management and Support

- Eastleigh Family Nursery (Schools)

Young Offenders Teams - removal of grant

Procurement savings

-332

-535

126

-103

-403

-53

-1,580

-12

=

Adjusted original budget

65,577

Increases for inflation to reflect November 2006 prices (see Annex 2)

-

Inflation allocated during 2006/07 from the central inflation contingency

-20

-

Excess cost of inflation over the inflation allowance

65

45

Original budget at November 2006 prices

65,622

Other variations (see Annex 3)

-

Reductions to offset excess inflation

-65

-

Transfers between revenue and capital

-

-

Transfers to/from other services

· teachers pay reform - transfer from LEA budget

10

-

Allowable base budget growth

· Hants Direct operation

· variations in expenditure met by Government grants

-535

652

117

Allocation for future inflation

1,461

=

Base budget 2007/08 at outturn prices

67,145

1

Definitions

1.1

The first stage in the construction of the budget for 2007/08 is the preparation of a base budget. The rules used this year are similar to those applied in 2006/07, which are summarised below.

1.2

The 2007/08 base budget is defined as the current year's budget adjusted for:

· allocations made for inflation in 2006/07 including the full year effect of the provision made for outstanding pay awards from 2005/06

· exclusion of expenditure included in the 2006/07 budget which was financed by the carry forward of planned underspendings from 2005/06, the one-off use of reserves or balances, or which was approved on a non-recurring basis

· the revenue effect of past capital programmes, subject to its inclusion in the approved capital programme unless a specific Cabinet decision to the contrary

· the full year effect of council-approved policies included in the 2006/07 original budget, which have been introduced part-way through the year

· changes in income volumes which are not the result of policy decisions

· correction of arithmetical errors in the current year's budget

· The following specific items:

Children

Variations arising directly from changes in the number of pupils in schools, pupils eligible for free meals and numbers of days in the school year

Environment

Routine highway and street lighting maintenance arising from variations in road length

Variations in waste disposal volumes

Adults

Increased cost of joint finance schemes with health due to operation of the taper.

1.

Variation between the actual cost of inflation in 2006/07 (as at November 2006) and the provision for inflation included in the 2006/07 budget

£'000

£'000

Additional cost of inflation

4,763

Less:

-

full year effect of pay awards during 2006/07

4,426

-

Allocation from contingency for business rates

-20

4,406

=

Shortfall in the provision

357

2.

Significant costs of inflation between budgeted 2006/07 outturn prices and November 2006 prices

2.1

Pay awards

Provision was originally made in 2006/07 for pay awards of 2.95% for teachers and other employee groups.

17,358

No additional cost in 2007/08 of the pay awards agreed in 2006/07 is anticipated.

-

The pay awards agreed were:

Negotiating body: Effective date:

%

Local Government Services Staff

Hampshire Management Grades

Teachers

Soulbury

Youth Workers

1 April 2006

1 April 2006

1 Sept 2006

1 Sept 2006

1 Sept 2006

2.95

2.95

2.50

2.95

2.95

2.2

Non pay inflation

Provision was originally made in 2006/07 for a net amount of

5,715

This was for general price increases of 2.5% (£7.279 million) offset by increased income to match inflation in gross expenditure

Additional cost of price increases other than pay and net of income

357

The most significant variations within this additional cost are as follows:

Repair and maintenance of buildings

Electricity

Fuel oil

Water and sewerage

Home to school transport

Non County Placements (CWD)

Catering contract payments

Outturn 2006/07 to November 2006

%

-3.2

-12.9

-4.6

3.4

3.8

0.9

2.1

Cost in 2007/08

£

-319

-213

-58

88

670

40

105

3.

Allocation for future inflation

£'000

Provision for all pay awards of 2.25% in 2007/08

10,434

Increase in local government employers' pension contributions (from 275% to 295% of employee contributions)

1,075

Provision for non-pay inflation at 2.5%

7,200

Reduction for increased income

-554

Total allocation for future inflation

18,155

Variations against the repriced 2006/07 budget

£'000

%

Schools Budget

Reduction in pupil numbers

Increase in government grants

Headroom and earmarks

-4,055

11,054

12,608

-0.6

1.6

1.8

LEA Budget

Variation in the number of school days

Increase in government grants

-99

1,697

-0.1

2.1

Children's Social Care Budget

Increase in government grants

Passporting

652

1,257

1.0

1.9

Staffing (FTEs)

2007/08

2008/09

2009/10

2007/08

2008/09

2009/10

£'000

£'000

£'000

Growth proposals:

Out-County Special Schools

Inter LA Recoupment

Overspend from 2006/07

Savings to match growth items above

Reinstate overspend from 2006/07

480

70

-328

-550

328

Total growth proposals

-328

328

0

0

0

0

Redeployment proposals:

-

-

-

Total redeployment proposals

-

-

-

Net growth and redeployment proposals

-328

328

0

0

0

0

Staffing (FTEs)

2007/08

2008/09

2009/10

2007/08

2008/09

2009/10

£'000

£'000

£'000

Allowable Base Budget growth:

Variation in Government grants

387

-

-

Hants Direct

-

-27

-

Total available to offset growth and redeployment

387

-27

-

Growth proposals:

SIPS

-

640

-

Impact of one off budget strategy

-

413

-

Home to School Transport

354

-

-

Information sharing index

387

-

-

Total growth proposals

741

1,053

-

Redeployment proposals:

Youth support services

-100

-

-

-5

-

-

Duke of Edinburgh Awards

-60

-

-

Trailblazer

-17

-

-

Family Group Conferences

-30

-

-

Core funding - study centres

-95

-145

-

Core funding - HIAS

-225

-

-

Grants to Youth Organisations

-20

-

-

Denominational Transport

-25

-25

-25

Interest on Schools' Balances

-100

-

-

Community Education

-300

-

-

LPSA 1 - one-off funding

-188

-

-

Total redeployment proposals

-1160

-170

-25

-5

-

-

Net growth and redeployment proposals

-419

883

-25

-5

-

-

Net growth and redeployment proposals after allowable base budget growth

-806

910

-25

-5

-

-

Budget Strategy:

Pay & Benefits realisation

-100

-

-

Redistribution of guidelines

-260

-268

-273

Total budget strategy

(reduction in budget)

-360

-268

-273

Net additional pressure/savings

-446

1,178

-248

-5

-

-

Staffing (FTEs)

2007/08

2008/09

2009/10

2007/08

2008/09

2009/10

£'000

£'000

£'000

Allowable base budget growth:

Variation in Government grants

652

-50

-

Hants direct

-535

-750

-

Total available to offset growth and redeployment

117

-800

-

Growth proposals:

Non-County placements and Independent Fostering agency placements

1,500

-

-

Commissioning Social Workers

370

-

-

In-house fostering provision

500

-

-

Direct Payments

180

-

-

Home Care

280

-

-

Legal

65

-

-

Residential staff allowances

150

-

-

Fostering allowances increase

72

-

-

Impact of one off budget strategy

-

592

-

Total growth proposals

3,117

592

-

Redeployment proposals:

Training

-120

-

-

Hants Direct

-535

-750

-

-14

-20

-

Market Supplements - North/South Equalisation

-180

-

-

Teenage Pregnancy

-125

-

-

Contract Support

-50

-

-

Discontinuation of 24hr Legal cover

-24

-

-

Pay & Benefits restructuring

-320

-

-

-5

-

-

LPSA1 - Fostering Service

-300

-

-

Regional Fostering Contract

-100

-

-

Family Group Conferences

-70

-

-

-2

-

-

Children's Social Care Grants

-20

-

-

Re-direction of LPSA1 monies

-20

-

-

Earmarked grants savings

-39

-

-

Total redeployment proposals

-1,903

-750

-

-21

-20

-

Net growth & redeployment proposals

1,214

-158

-

-21

-20

-

Net growth & redeployment proposals after allowable base budget growth

1,097

-642

-

-21

-20

-

Budget strategy:

Passporting

1,257

1,200

1,200

Pay & Benefits realisation

-380

-

-

Redistribution of guidelines

-245

-251

-262

Total budget strategy funding available

632

949

938

Net additional pressure/savings

465

-307

-938

-21

-20

-

2006/07

2007/08

2008/09

2009/10

Cashable efficiency improvements:

£'000

£'000

£'000

£'000

A

AES eligible and budget saving

Youth Service related: lease costs (£17k) (+£85k - 2006/07); deletion of various posts (manager post (£53k), admin post (£34k), Drug Development worker (£35k - 2004/05))

85

0

0

0

Early years - absorption of inflation by providers

194

194

194

194

Stonham contract

100

0

0

0

Family Group Conferences

25

100

0

0

Management structure review (planned in order to deliver Pay and Benefits realisation targets)

0

320

480

0

IFA Regional contract - more effective contract negotiations. (New contract to be in place from April 2007)

0

100

0

0

Market Supplement changes - The equalisation of the market supplements paid to social workers in the north and south of the County, in line with changing market conditions has enabled the department to maintain the same level of staffing with reduced costs

45

135

0

0

Fostering service investment - A one-off investment of £500,000 in fostering services in 2007/08 is expected to realise £300,000 savings in 2007/08 through reductions in the level of external placements made and on-going savings of £100,000 (net of sustainability costs)

300

0

0

NCP / IFA temporary one year posts - Funded from one-off LPSA1 reward grant, these two posts are expected to reduce the NCP / IFA budget pressures and mechanisms for monitoring achievement of this will be established once post holders are in place so the success can be evaluated and quantified.

Not yet known

Not yet known

Not yet known

Integrated Youth project - Work to specify the tender documentation for the future of youth work as an integrated service with Connexions is underway. That contract will be effective from April 2008. The department will be seeking major efficiencies in service delivery as a result of this contract. Also, during 2007/08 the Youth Service will work with Connexions to deliver the Youth Green Paper with no additional funding

0

0

Not yet known

Not yet known

B

AES eligible but no budget saving

Early Years - place creation excess (£223k in 2004/05); training (£19k in 2004/05); supporting extra 3 year olds (£17k in 2005/06)

17

17

17

17

Youth Service admin review

50

0

0

0

Increments and re-gradings

293

310

327

344

Teenage pregnancy partnership

0

25

0

0

Support service review

0

100

0

0

C

Budget saving but AES ineligible

Home to School Transport - investment of £30,000 in taxi procurement pilot expected to deliver efficiencies in 2007/08 and 2008/09 onwards

0

Not yet known

Not yet known

Not yet known

Special Education Needs - Collaboration between Applemore and Oak Lodge schools will provide services for children with SEN who would otherwise have moved to more expensive Non County Placement provision

Not yet known

Not yet known

Not yet known

Legal 24 hour standby arrangements - Cessation of this 24 hour standby cover is a cashable saving since the level of service provision will not be reduced

0

25

0

0

D Non-cashable efficiency improvements

Increments and re-gradings (absorbed in schools activities - a further £320k each year)

320

320

320

320

Total AES eligible (a+b+c)

809

1,626

1,018

555

Total Budget Saving (a+d)

769

1,469

990

514

Total of all efficiency improvements (a+b+c+d)

1,129

1,946

1,338

875

Current charge

Total income

Date of last review

Planned date for next review

Proposed increase (if proposed now)

Is charge set to recover full cost

Yes/No

Is charge determined locally?

Yes/No

£

£

£

1

Mandatory/National charges

Inter authority recoupment

Based on cost of placement

2,167,000

April 2006

April 2007

Yes

Annually calculated to national guidelines

Penalty notices for parents of truants

Up to £100

2,000

February 2004

Not known

Charges are set nationally

2

Discretionary charges

Sale of milk to infants

11p

53,000

April 2006

April 2007

No

Calculated annually to reflect cost pressures

Rents

124,000

September 2006

September 2007

Annual rent review by PBRS

Current charge

Total income

Date of last review

Planned date for next review

Proposed increase (if proposed now)

Is charge set to recover full cost

Yes/No

Charge determined locally?

Yes/No

£

£

£

EOTAS charge to schools for unwell and emotionally vulnerable pupils

Based on LMS funding for the age of pupils concerned

220,000

April 2006

April 2007

No

Charges reviewed in April based on school funding rates

Education Psychology Service

56,000

April 2006

April 2007

Yes

External income, contracts reviewed annually

Specialist Teacher Advisory Service

6,000

April 2006

April 2007

Yes

Charges to Post 16 sector, reviewed annually

Outdoor Education (Recharges to OLAs)

54,000

April 2006

April 2007

Yes (SLA)

Contribution towards cost of service

Privileged Transport (School pupils)

241,000

September 2006

September 2007

Yes - extra cost is covered

Contribution towards cost

Current charge

Total income

Date of last review

Planned date for next review

Proposed increase (if proposed now)

Is charge set to recover full cost

Yes/No

Charge determined locally?

Yes/No

£

£

£

Privileged Transport (Continuing Education)

74,000

September 2006

September 2007

Yes - extra cost is covered

Contribution towards cost

Contribution from OLAs/Health Authorities - Youth Service

175,000

September 2006

September 2007

Yes

Projects or partnerships jointly funded, reviewed at revised estimate stage

Residential Accommodation for Children (Weekly):

Community Homes

1,988

0

April 2006

April 2007

2,048

Yes

No

Secure Unit (Swanwick Lodge)

3,850

2,560,000

April 2006

April 2007

4,200

Yes

No

Homes for Children with Disabilities

2,388

162,000

April 2006

April 2007

2,408

Yes

No

Current charge

Total income

Date of last review

Planned date for next review

Proposed increase (if proposed now)

Is charge set to recover full cost

Yes/No

Charge determined locally?

Yes/No

£

£

£

Other Charges:

Parental Contribution (Weekly)

37

18,000

April 2006

April 2007

38

No

Yes

Hire of rooms (per hour)

24

0

April 2006

April 2007

25

Yes

No

Hampshire Foster Care Placement Management Charge (per week)

231

0

April 2006

April 2007

238

Yes

No

Foster Care Assessments

2,082

0

April 2006

April 2007

2,144

Yes

No

3

Services provided free where charges could be made

Nil

Total

5,912,000