Public reports pack PDF 3 MB - Blaby District Council

when they are committed to, even though the actual “giving” may be several
years into the future. This ensures a better reflection of the economic reality
between the employer and the pension fund, showing any shortfalls or
surpluses in the net assets in the pension scheme.
Service costs will therefore reflect the ‘current service costs’ as assessed by
actuaries, with corresponding adjustments being made within the Income and
Expenditure Accounts to ensure that the Council Tax requirements reflect only
actual contributions.
The estimates contained within Appendix A do not include the impact of
IAS19.
6.2.3 Establishment Details
The estimated costs projected for 2013/14, as shown in Column D of the table
at Appendix A, are based on the forecast establishment as at 1 st April 2013.
They are inclusive of any scale point increments which are applicable to
employees with effect from 1 st April 2013 and the cost of employer pension
and national insurance contributions. The figures include a provision for a pay
award of 1% in line with the Council’s Medium Term Financial Strategy.
The analysis includes provisions for seasonal temporary assistance in respect
of the front-line workforce and overtime/market supplement budgets where
applicable.
The overall gross decrease from the original 2012/13 budget on a like for like
basis is calculated at £213,156 inclusive of increments. The net establishment
budget, in respect of the General Fund, after taking into account the
implications of external and internal funding is estimated at £8,004,533,
compared to the 2012/13 like for like figure of £8,217,689. This does not
include any provision for IAS19 which is an accounting entry that does not
affect the total budget requirement. This represents a 2.6% decrease against
the original net budget for the current year. If the pay award is not settled and
there is no increase in pay for 2013/14 there will be a saving of around
£78,500.
6.2.4 External Funding
Column C of the table at Appendix A and the table in paragraph 6.2.6
indicate those posts which have been and/or are planned to be funded
externally and/or from balances over the two years 2012/13 and 2013/14.
6.2.5 Summary
The overall proposed reduction in establishment costs for 2013/14 is 2.6%, at
a time when inflation is running at over 2%. 2013/14 will undoubtedly
represent a challenging year in terms of delivering a balanced budget and
these costs form an important element of the overall equation.
6.2.6 The table below shows the sources of the external funds receivable.
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