Archived decisions

Hampshire County Council

Executive Member - Recreation and Heritage Item 4

15 November 2007

Financial and Performance Monitoring 2007/08

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. Summary

1.1 This report sets out the results of the latest budget monitoring exercise, based on activity in the first half of the financial year. There remains a potential overspending of £215,000, and management action will continue to be taken to ensure that the budget is balanced at the end of the financial year.

1.2 The report also outlines two significant projects which will upgrade accommodation at Calshot Activities Centre and at Tile Barn.

1.3 Performance information continues to be presented alongside the financial position and shows a generally encouraging position.

2. Recommendations

2.1 It is requested that the Executive Member for Recreation and Heritage approve the following recommendations:

i) that the revenue budget position for 2007/08 be noted

ii) that the performance information for 2007/08 be noted

3. Revenue Budget 2007/08

3.1 The summary monitoring information in Appendix 1 shows that there is a potential overspending of £215,000, which is 0.7% of the budget. Management action is being taken to ensure that a balanced budget is delivered. In particular, vacancy management is being exercised, and only essential non-staffing expenditure is being incurred. Detailed service information is shown in Appendix 2.

3.2 The majority of the overspending arises in the Library and Information Service. At £175,000, this represents approximately 80% of the overspending. The principal reasons are as reported in September, with the key factor being the continuing decline in income. There has been a very modest improvement in the position, although this has occurred so recently that it is not possible to predict whether this is likely to become a trend. Income for the year is predicted as approximately £1.5 million whereas income peaked at almost £2 million four years ago.

3.3 At this stage the Countryside budget is shown as balanced. It is anticipated that it will be possible to achieve this, despite pressures of approximately £15,000 (mainly related to income) arising from the outbreak of foot and mouth disease.

3.4 There are two significant accommodation upgrade projects planned in the Outdoor Service. These would generally be funded by a transfer from the service's revenue budget to capital (which can be authorised by the Director of Recreation and Heritage). It is proposed not to make this transfer at this stage, and to consider the decision later in the financial year in the light of the overall budget position.

3.5 At Calshot Activities Centre it is proposed to upgrade the accommodation in Lawrence House by replacing the existing toilets and communal showers with 14 unisex private bathrooms similar to the very successful facilities in Mitchell House. These changes are a necessary response to customer feedback so that young people are able to access facilities in keeping with modern day standards and expectations. The cost of these works is estimated to be £180,000 including fees. Taking into account the timing of the works, it is proposed to meet £140,000 from this year's revenue budget for service developments, and £40,000 from the 2008/09 budget.

3.6 The other, larger, project is at Tile Barn in Brockenhurst, and involves the replacement of the outdated shower and toilet block. A scheme estimated at £345,000 would provide modern facilities for staff and young people, together with a classroom and activity space. In 2007/08, increased income and budget prioritisation have identified £94,000 as available to part-fund the project. The earliest start date for the project is Autumn 2009. By then, it is anticipated that most of the required funding will have been assembled. It is intended that any remaining gap should be bridged by a combination of external funding and prudential borrowing. This project will be the subject of a design report which will include the summarised business case.

4. Performance

4.1 Appendix 3 shows the half year performance information. This shows an encouraging position with performance either close to last year's position or indeed exceeding 2006/07 levels. The number of library visits per 1,000 population is currently some 5% below the 2006/07 position, but this may show some improvement in the second half year. The Recreation and Heritage element of the Performance Report to Cabinet also shows an encouraging improvement on other performance indicators, including a 69% increase in Museum outreach pupil contacts.

5. Impact Assessments

5.1 This report is in accordance with the budget strategy and the County Council's financial management policy. This policy applies equally to all services and ensures consistent financial management decisions across all services. The proposals outlined in this report are not considered discriminatory.

6. Conclusion

6.1 The pressures on the budget remain significant, mainly because of the levels of income in the Library Service. However, service managers are taking action to ensure a balanced budget is delivered. At the same time, performance levels remain encouraging.

Links to Corporate Strategy

Yes No

Hampshire safer and more secure for all _

Maximising well-being _

Enhancing our quality of place _


Section 100 D - Local Government Act 1972 - background documents

The following documents discuss 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.

None.

APPENDIX 1


RECREATION & HERITAGE

BUDGET MONITORING REPORT 2007/08

POSITION AT END September 2007



	2007/08	2007/08	2007/08	2007/08
	Budget	Actual to	Forecast	Forecast
Division of Service		end September	Outturn	Variance
	£' 000	£' 000	£' 000	£' 000

Archives	1,203	578	1,218	15
Libraries	17,395	9,311	17,570	175
Museums Main Service	2,282	-255	2,282	0
Milestones	287	151	287	0
Tourism Marketing and Design	570	214	570	0
Arts	2,211	942	2,211	0
Countryside	4,527	1,200	4,527	0
Sport, Community and Outdoor Services	2,034	418	2,034	0
Calshot	221	-560	221	0
Policy Development Initiatives	556	212	556	0
Director & Business Development	750	372	775	25


Total	32,036	12,583	32,251	215

APPENDIX 2


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	ARCHIVES	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

925	Employees	961	467	962	1
194	Premises	197	124	197	0
4	Transport	3	1	3	0
160	Supplies and services	115	46	115	0
16	Central support services	17	0	17	0
1,299		1,293	638	1,294	1
121	Less income(fees and charges)	90	60	76	14

1,178	Net Current Expenditure	1,203	578	1,218	15


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	LIBRARIES	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

£' 000		£' 000	£' 000	£' 000	£' 000

12,691	Employees	12,474	6,530	12,519	45
1,938	Premises	1,928	995	1,918	-10
601	Transport	589	251	589	0
2,469	Supplies and services	2,477	738	2,430	-47
2,174	Books	2,475	971	2,475	0
211	Central support services	216	1,620	216	0
20,084		20,159	11,105	20,147	-12
1,042	Less recharges to Schools for service level agreements	1,078	1,082	1,078	0
19,042		19,081	10,023	19,069	-12
1,620	Less income (fines,fees etc)	1,686	712	1,499	187

17,422	Net Current Expenditure	17,395	9,311	17,570	175


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	MUSEUMS MAIN SERVICE
		Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

£' 000		£' 000	£' 000	£' 000	£' 000

2,714	Employees	3,049	1,502	3,067	18
219	Premises	230	137	246	16
90	Transport	113	55	125	12
2,147	Supplies and services	4,209	1,137	4,189	-20
92	Central support services	87	0	87	0
5,262		7,688	2,831	7,714	26
	Add recharges	0	0	0	0
5,262		7,688	2,831	7,714	26
3,011	Less income (JMC contributions etc)	5,406	3,086	5,432	26

2,251	Net Current Expenditure	2,282	-255	2,282	0







	COMMENTS

	The Main Museums Service figures now include budgeted hub expenditure and income

	Not all budgeted staffing savings have materialised, in addition there are pressures on both in Development Fund expenditure and additional income


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	MILESTONES	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

386	Employees	386	193	391	5
202	Premises	301	203	316	15
2	Transport	5	2	5	0
325	Supplies and services	324	105	313	-11
		1,016	503	1,025	9
178	Less Basingstoke contribution	180	0	180	0
737		836	503	845	9
524	Less income	549	352	558	9

213	Net Current Expenditure	287	151	287	0


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	TOURISM MARKETING AND DESIGN	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

408	Employees	396	179	402	6
0	Premises	0	0	0	0
10	Transport	9	4	9	0
222	Supplies and services	212	75	201	-11
0	Central support services	0	0	0	0
640		617	258	612	-5
76	Less income	47	44	42	5

564	Net Current Expenditure	570	214	570	0


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007



2006/07		2007/08	2007/08	2007/08	2007/08
Actual	ARTS	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

953	Employees	1,039	507	1,024	-15
83	Premises	80	42	80	0
14	Transport	18	8	16	-2
1,801	Supplies and services	1,740	1,003	1,742	2
51	Central support services	54	2	54	0
2,902		2,931	1,562	2,916	-15
874	Less income(fees and charges)	720	620	705	15

2,028	Net Current Expenditure	2,211	942	2,211	0


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007



2006/07		2007/08	2007/08	2007/08	2007/08
Actual	COUNTRYSIDE	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

£' 000		£' 000	£' 000	£' 000	£' 000

3,262	Employees	3,626	1,629	3,611	-15
506	Premises	268	91	313	45
343	Transport	341	117	341	0
1,641	Supplies and services	1,216	119	1,255	39
103	Central support services	110	0	110	0
5,855		5,561	1,956	5,630	69
1,320	Less income	1,034	756	1,103	-69

4,535	Net Current Expenditure	4,527	1,200	4,527	0


	COMMENTS

	Employees
	Staff vacancies

	Premises, Supplies and Services
	Additional expenditure funded by income and staff vacancy savings


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007



2006/07	SPORT, COMMUNITY &	2007/08	2007/08	2007/08	2007/08
Actual	OUTDOOR SERVICES	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

1,443	Employees	1,133	688	1,133	0
123	Premises	46	50	50	4
103	Transport	68	37	68	0
2,055	Supplies and services	1,077	638	1,716	639
64	Central support services	65	3	65	0
3,788		2,389	1,416	3,032	643
1,825	Less income(fees and charges)	355	998	998	643

1,963	Net Current Expenditure	2,034	418	2,034	0


	COMMENT

	Variances arise as Active Sports included in actuals and forecast outturn
	but not in budget figure. Overall impact neutral


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	CALSHOT	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

1,488	Employees	1,565	766	1,556	-9
343	Premises	396	174	370	-26
53	Transport	61	19	57	-4
584	Supplies and services	504	226	604	100
0	Central support services	4	0	4	0
2,468		2,530	1,185	2,591	61
2,265	Less income	2,309	1,745	2,370	-61

203	Net Current Expenditure	221	-560	221	0


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007



2006/07		2007/08	2007/08	2007/08	2007/08
Actual	POLICY DEVELOPMENT	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

695	)Expanding the user base	556	232	556	0
	)Innovation & service quality
	)Market Development
	)Staff Development

		556	232	556	0
103	Less income (fees and charges)	0	20	0	0

592	Net Current Expenditure	556	212	556	0


	RECREATION AND HERITAGE

	BUDGET MONITORING REPORT 2007/08

	POSITION AT END September 2007





2006/07		2007/08	2007/08	2007/08	2007/08
Actual	DIRECTOR AND BUSINESS DEVELOPMENT	Budget	Actual to	Forecast	Forecast
			end September	Outturn	Variance

		£' 000	£' 000	£' 000	£' 000

600	Employees	684	330	670	-14
0	Premises	0	0	0	0
17	Transport	16	8	19	3
120	Supplies and services	50	36	92	42
0	Central support services	0	0	0	0
737		750	374	781	31
2	Less income (fees and charges)	0	2	6	-6

735	Net Current Expenditure	750	372	775	25

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