Archived decisions

Hampshire County Council

Executive Member - Recreation and Heritage Item 5

11 March 2008

Financial and Performance Monitoring 2007/08

Report of the Director of Recreation and Heritage and the County Treasurer

Hampshire

Contact : Bevis Ingram (01962) 847 508 [email protected]

Stuart Dorward (01962) 846 110 [email protected]

1. Summary

1.1 This report provides an update on the financial position for 2007/08 . Based on activity to the end of January, there is a potential overspend of £44,000. This represents an improvement compared to the £215,000 reported in November. It is anticipated that the final accounts position will be at, or very close to, budget.

1.2 Performance information is presented as part of this report and shows a positive position. Indeed it was recently confirmed that the County Council has received the maximum four stars in the Comprehensive Performance Assessment of Cultural Services.

2. Recommendation

It is requested that the Executive Member of 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

iii) that up to £256,000 be transferred to capital for improvements at Calshot and Tile Barn

3. Revenue Budget 2007/08

3.1 Appendix 1 shows the summary position for Recreation and Heritage, with

only relatively minor variances from budget for individual services. The detailed position for each service is shown in Appendix 2. The appendices show that net pressures on the budget are currently £44,000. Previous reports in November and January showed a potential overspend of £215,000, which arose from a continued decline in Library income (mainly electronic media) and the one - off costs associated with the Library Service restructure.

3.2 The overall budget position has been reviewed and it is possible to be firmer on estimated figures at this stage of the year. A number of factors have combined, including the effects of the management action taken and more certainty over the costs and funding for pay and benefits, and this has enabled the reinstatement of some of the Materials Fund which was reduced at the revised budget stage.

3.3 With Managers continuing to exercise close financial management, it is anticipated that the final outturn position at 31^st March 2008 will be at or very close to balanced budget.

3.4 The forecast overspend of £30,000 on the Countryside Service relates to costs incurred in connection with remedial works following a breach at Basingstoke Canal. This can be funded from the £90,000 made available to Recreation and Heritage to compensate for the costs incurred.

3.5 As reported in November there are two accommodation projects planned in Outdoor Services. These are an upgrade to the accommodation in Lawrence House at Calshot at an estimated cost of £180,000 including fees and replacement of the shower and toilet block at Tile Barn at an estimated cost of £345,000. The Calshot project has commenced in the current year and the earliest start date for the Tile Barn is in 2009/10.

3.6 These projects would generally be funded by a transfer from the service's revenue budget to capital. The November budget monitoring report proposed considering the decision later in the financial year in the light of the overall budget position.

3.7 The financial proposals for the works are as follows. For Calshot it is now proposed to meet £162,000 from this year's revenue budget for service developments, and £18,000 from the 2008/09 budget. For Tile Barn, which will not start until 2009/10 at the earliest, budget prioritisation and additional income means £94,000 is available in the current year, specifically to fund the project. By the start date in 2009 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 which would be funded by a transfer from the service's revenue budget to capital.

3.8 It is therefore proposed to transfer up to £256,000 from the Outdoor Services revenue budget to capital for these projects.

4. Performance

4.1 Performance information is provided in Appendix 3. Whilst not all performance indicators show an improvement on the previous year, the position is none the less encouraging. The usage of the Archive service has been directly affected by the reduced service in operation whilst building works are undertaken to allow integration with local studies.

5. Impact Assessment

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.

6. Conclusion

6.1 As a consequence of close financial management and greater certainty about the impact of Pay and Benefits, the financial position is continuing to improve whilst performance levels are being generally maintained.

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.