Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report


Decision Maker:			Executive Member for Culture, Communities and Recreation
Date of Decision:			10 September 2009
Decision Title:			Financial and Performance Monitoring 2009/10
Decision Reference:			892
Report From:			Director of Culture, Communities and Rural Affairs and the County Treasurer
Contact name:		Bevis Ingram Stuart Dorward
Tel:	01962 847508 01962 846110			Email:	[email protected] [email protected]

1. Executive Summary

1.1. The purpose of this paper is to present the first detailed financial monitoring information for the year 2009/10, along with key performance and workforce information for the first quarter of the year. The report also outlines a significant government grant (£5.9 million) for an Outdoor Centre in the north of the County.

1.2. The financial position is that, if no further managerial action were taken, there would be an overspending of £220,000 as shown in Appendix C. However, action will be taken to ensure that, as in previous years, a balanced budget position will be achieved. More detailed financial information for each service is shown in Appendix D. The Services' key performance indicators show generally good participation levels in CCRA services. Workforce indicators show a reduction in the levels of staff turnover, sickness levels, and the number of overtime hours worked.

2. Financial Position 2009/10

2.1. The revenue budget position, based on activity to the end of July, is attached. This shows that, in the absence of further managerial action, there would be an overspending of £220,000.

2.2. The main factors in this are:

· Library and Information Service: + £158,000

The Library Service continues to experience financial pressures as reported in recent years. These arise from a combination of factors including :

· a significant reduction in DVD and fine income in recent years (part of a national trend)

· the need to fund high priority developments, such as the cost of maintaining the public IT network in libraries (People's Network)

· the fact that efficiency and other savings are difficult to achieve by "housekeeping" measures when a major proportion of the budget is committed to maintaining a major network of libraries based in fixed property assets.

The largest budget in the Library Service is staffing and over a period of seven years regular attempts have been made to reduce the headcount, including restructuring exercises in 2003 and 2007. This process needs to continue to ensure that the service lives within its means, continues to modernise and to deal with any future constraints that will be placed on the County Council's budget.

The approach adopted to meeting these financial pressures includes making vacancy management savings as the opportunity arises, and holding back an element of the Materials Fund. In addition, £250,000 growth money was allocated in 2009/10 to complete the Library Service restructuring and modernisation with the intention of avoiding future calls on the Materials Fund. In the short term the majority of this money has been used to offset the financial pressures, pending a more radical review.

The Vision and Strategy for the Library Service that was approved in June 2009 outlined the future direction of the Service including the need to ensure future financial sustainability. A root and branch review is now being undertaken and has informed the Proposal for Improved Library Services in Hampshire presented to this Decision Day in agenda item 1.

· Milestones Museum: + £38,000

This projected overspending represents the worst case position and reflects the fact that visitor numbers in the early part of the year were below budgeted levels. Partly owing to the disappointing summer weather, there has been some improvement, although this has not been sufficient to compensate fully for the early year performance. There are, however, major events planned later in the financial year at Milestones, and these could well result in generating additional income. In September last year, a similar overspending was being forecast and the final outturn was £16,000 over budget.

2.3. Performance Indicators - shown in Appendix E - suggest that the majority of services will meet their targets for participation levels in 2009/10. As yet there is no specific indication that the economic recession has had an adverse impact on service usage. Nor is there any strong evidence that income levels have been hit by the economic situation.

2.4. For the first time, workforce information is included in Appendix F to this report. This shows that there has been a small increase in headcount over the last four quarters. One of the major factors in this has been the transfer to CCRA from Children's Services of Hampshire Learning. Other factors include an increase in fixed term appointments linked to external funding such as Renaissance in the Regions and Find Your Talent. At the end of the quarter, there were 1,024 full-time staff: the budget supports an average of 1,011 f.t.e. Seasonal factors mean that it is not unexpected that staffing numbers should be at a peak in early summer.

2.5. There has been a decrease in the number of overtime hours - whilst there was the seasonal increase in the first quarter in 2009/10, the actual level is the lowest in three years. There has also been a similar trend in staff turnover, and recruitment to vacant posts remains buoyant. Meanwhile sickness absence levels have remained reasonably consistent, with some reduction in the last two quarters.

3. Runways End Project

3.1. The County Council has been awarded almost £5.9 million (£5,896,500) of the Government's Co-location Fund in support of the development of the Runways End Youth Adventure Centre, in partnership with Rushmoor Borough Council and the Blackwater Valley Scout Association. The Centre will provide a wide range of outdoor adventure and sports facilities as well as team and personal development courses. The total capital cost is £6.1 million - the additional £200,000 will be directly incurred and funded by Rushmoor Borough Council. The inclusion of a scheme of this size in the Capital Programme needs the approval of Cabinet and this is reflected in the recommendation to this report.

3.2. Detailed work is still being undertaken on identifying the additional revenue cost of running Runways End, which is scheduled to open in September 2011. Based on experience of the County Council's other outdoor centres, it is estimated that the running costs of Runways End will be in the region of £220,000 p.a. (although this figure does not include a sum to refresh equipment thus not only guaranteeing safety but also encouraging repeat use of the facilities). Income estimates are currently in the region of £175,000. It is more difficult to predict income with confidence than it is expenditure. It should also be noted that included in the income estimate is approximately £50,000 of usage by schools. It is likely that some of this income would otherwise have been spent at existing outdoor centres and this would have an impact on the service's overall net budget.

3.3. It is conceivable, therefore, that the additional net revenue costs to the service will be in the range £50,000 to £100,000. Of this, £30,000 has already been identified through a decision taken in November 2007 to reduce funding support to Southampton and Portsmouth Outdoor Activity Centres. Work is continuing to refine the assessment of additional cost, and this will form part of the project appraisal.

4. Recommendations

4.1. That the financial, performance and workforce monitoring information be noted.

4.2. That it be a recommendation to Cabinet that £5,897,000 be added to the Culture, Communities and Rural Affairs Capital Programme for 2009/10 for the Runways End Project - which is funded by Central Government - subject to project appraisal before the scheme is implemented.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy


Hampshire safer and more secure for all:	yes
Corporate Business plan link number (if appropriate):
Maximising well-being:	yes
Corporate Business plan link number (if appropriate):
Enhancing our quality of place:	yes
Corporate Business plan link number (if appropriate):


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 have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

Document	Location
None

Appendix B

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. The proposals in this report are 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, and the proposals in this report are not considered discriminating.


CULTURE, COMMUNITIES AND RURAL AFFAIRS					APPENDIX C

BUDGET MONITORING REPORT 2009/10

POSITION AT END July 2009


2008/09		2009/10	2009/10	2009/10	2009/10
			Actual to	Forecast	Current Forecast
Actual	Division of Service	Budget	end July	Outturn	Variance
£' 000		£' 000	£' 000	£' 000	£' 000

1,295	Archives	1,319	387	1,305	-14
19,221	Libraries	19,262	4,499	19,421	159
195	Hampshire Learning	251	-1,761	251	0
2,465	Museums Main Service	2,448	1,013	2,441	-7
330	Milestones	336	147	373	38
580	Tourism Marketing and Design	587	146	587	0
2,115	Arts	2,250	830	2,250	0
5,043	Countryside	4,970	606	4,995	26
1,890	Sport, Community and Outdoor Services	2,077	-621	2,077	0
164	Calshot	284	-711	284	0
498	Policy Development Initiatives	597	11	616	19
902	Director & Business Development	1,029	318	1,028	-1


34,698	Total	35,409	4,865	35,629	220


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	ARCHIVES		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


1,017	Employees	1,035	356	1,017	-18
223	Premises	248	68	248	0
4	Transport	3	1	3	0
129	Supplies and services	119	14	123	4
17	Central support services	17	0	17	0
1,390		1,422	439	1,408	-14
95	Less income(fees and charges)	103	52	103	0

1,295	Net Current Expenditure	1,319	387	1,305	-14


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	LIBRARIES		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000
£' 000

13,195	Employees	12,957	4,372	13,016	59
2,210	Premises	2,475	675	2,390	-85
580	Transport	606	159	594	-12
3,235	Supplies and services	2,975	286	3,022	47
2,449	Materials	2,606	656	2,606	0
175	Central support services	215	-6	215	0
21,844		21,834	6,141	21,843	9
1,085	Less recharges to Schools for service level agreements	1,088	1,115	1,088	0
20,759		20,746	5,026	20,755	9
1,537	Less income (fines,fees etc)	1,484	527	1,334	150

19,222	Net Current Expenditure	19,262	4,499	19,421	159


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/9		2009/10	2009/10	2009/10	2009/10
Actual	HAMPSHIRE LEARNING		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


823	Employees	513	318	513	0
5	Premises	0	3	0	0
26	Transport	17	43	17	0
210	Supplies and services	1,984	94	1,984	0
1,279	Support Services	0	74	0	0
2,343		2,514	531	2,514	0
2,148	Less income(fees and charges)	2,263	2,292	2,263	0

195	Net Current Expenditure	251	-1,761	251	0


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	MUSEUMS MAIN SERVICE		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000

£' 000

3,255	Employees	3,189	872	3,176	-13
351	Premises	503	140	509	6
202	Transport	119	26	119	0
836	Supplies and services	987	97	987	0
87	Central support services	87	0	87	0
4,731		4,885	1,135	4,878	-7
94	Add recharges	91	0	91	0
4,637		4,794	1,135	4,787	-7
2,171	Less income (JMC contributions etc)	2,346	122	2,346	0

2,466	Net Current Expenditure	2,448	1,013	2,441	-7


	CULTURE, COMMUNITIES AND RURAL AFFAIRS				APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	MILESTONES		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


360	Employees	412	157	402	-10
332	Premises	379	189	413	34
4	Transport	5	2	5	0
397	Supplies and services	363	13	386	23
1,093		1,159	360	1,207	48
184	Less Basingstoke contribution	185	47	185	0
909		974	314	1,021	48
579	Less income	638	167	648	-10

330	Net Current Expenditure	336	147	373	38


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	TOURISM MARKETING AND DESIGN		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


433	Employees	488	138	487.6	-0
0	Premises	0	0	0	0
8	Transport	10	4	10.2	0
299	Supplies and services	257	128	257	-0
	Central support services	0	0	0	0
740		755	270	754	-1
160	Less income	168	124	167.6	0

580	Net Current Expenditure	587	146	587	-0


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009



2008/09		2009/10	2009/10	2009/10	2009/10
Actual	ARTS		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


940	Employees	1,233	389	1,234	0
76	Premises	82	29	82	-0
20	Transport	21	11	21	-1
2,068	Supplies and services	2,327	1,165	2,327	0
56	Central support services	55	0	55	-0
3,160		3,718	1,594	3,718	-0
1,044	Less income (fees and charges)	1,468	764	1,468	1

2,116	Net Current Expenditure	2,250	830	2,250	0


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009



2008/09		2009/10	2009/10	2009/10	2009/10
Actual	COUNTRYSIDE		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000
£' 000

3,571	Employees	4,040	1,231	3,860	-180
437	Premises	356	119	451	95
325	Transport	316	84	334	18
2,107	Supplies and services	1,331	-35	1,597	266
107	Central support services	110	0	109	0
6,546		6,152	1,399	6,350	199
1,503	Less income(fees and charges)	1,182	793	1,355	-173

5,043	Net Current Expenditure	4,970	606	4,995	26


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009



2008/09	SPORT, COMMUNITY &	2009/10	2009/10	2009/10	2009/10
Actual	OUTDOOR SERVICES		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


1,599	Employees	1,671	530	1,672	0
94	Premises	67	32	67	-0
97	Transport	97	27	97	-0
2,051	Supplies and services	2,118	687	2,119	1
62	Central support services	66	0	65	-0
3,903		4,019	1,277	4,019	1
2,013	Less income(fees and charges)	1,942	1,898	1,942	-0

1,890	Net Current Expenditure	2,077	-621	2,077	0


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	CALSHOT		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


1,597	Employees	1,711	532	1,711	0
404	Premises	477	144	477	0
49	Transport	59	13	59	0
576	Supplies and services	683	158	683	0
4	Central support services	4	5	4	0
2,630		2,934	851	2,934	0
2,466	Less income	2,650	1,563	2,650	0

164	Net Current Expenditure	284	-711	284	0


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009



2008/09		2009/10	2009/10	2009/10	2009/10
Actual	POLICY DEVELOPMENT		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000




498	)Expanding the user base	597	94	616	19
	)Innovation & service quality
	)Market Development
498	)Staff Development	597	94	616	19
	Less income (fees and charges)	0	83	0	0

498	Net Current Expenditure	597	11	616	19


	CULTURE, COMMUNITIES AND RURAL AFFAIRS			APPENDIX D

	BUDGET MONITORING REPORT 2009/10

	POSITION AT END July 2009





2008/09		2009/10	2009/10	2009/10	2009/10
Actual	DIRECTOR AND BUSINESS DEVELOPMENT		Actual to	Forecast	Current Forecast
		Budget	end July	Outturn	Variance
		£' 000	£' 000	£' 000	£' 000


855	Employees	878	272	858	-20
3	Premises	0	0	0	0
23	Transport	25	3	25	0
51	Supplies and services	126	44	146	20
0	Central support services	0	0	0	0
932		1,029	319	1,029	0
30	Less income (fees and charges)	0	1	1	-1

902	Net Current Expenditure	1,029	318	1,028	-1

Appendix E


Participation and Satisfaction					Projected year end
			Q1	Target	Projected year end
Libraries		2008/9	2009/10	2009/10	2009/10
	Visits per 1,000 population	5,410	5,129	5650	5,129
Museums
	Visits per 1,000 population (in person)	326	79	333	305
	Number of pupils visiting in organised groups	37,897	9,547	35,000
Outdoor Centres
	Number of users (Bednights)	51,400	16,250	52,000	49,719
Countryside
	Number of visits to principal sites	1.52m	468,000	1.55m	1.55m
Arts Centres
	Number of box office bookings	75,200	19,000	76,000	79,155

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