Public reports pack PDF 3 MB - Blaby District Council

5. Key Decision
5.1 Yes
6. Matters for Consideration
6.1 Introduction
The Council’s arrangements for the sound stewardship of public funds
incorporate a requirement to carry out a formal review of its revenue
budgetary performance over the first six months of each financial year. This
exercise complements the regular monthly and quarterly portfolio budget
monitoring reports submitted to Cabinet Executive. Performance in respect of
capital expenditure and income is dealt with in a separate report.
In addition to providing an indication of the overall performance the review
aims specifically to identify any significant areas of concern relating to
expenditure or income including those which cannot reasonably be dealt with
either through:-
a) the established virement arrangements, or
b) off-set against identified underspends and/or income increases going
forward
This information is then also incorporated into the formal revised estimates for
the current financial year which will be presented to Cabinet Executive in
February 2013.
6.2 Establishment Costs
The overall establishment costs represent a key element of the Council’s total
budgetary requirements. As part of the arrangements for overseeing the
budget monitoring of these costs the Cabinet Executive receive a regular
report analysing performance against profiled budget.
The Council included provision for a pay award of 1% in the 2012/13 budget
proposal, albeit subsequently this award did not materialise. In addition there
were increases built in to reflect increments for those employees not yet at the
top of their pay scales. The original net revenue funded establishment budget
for 2012/13 therefore, excluding the pay award, but including those posts
whose costs are met through specific external funding, was £8,217,689.
At 30 th September 2012 net expenditure amounted to £4,383,956 against the
profiled budget of £4,212,373 net of planned efficiency savings of £40,000
over the first half year. This represents an overspend variance of £134,578 or
3.19%. This takes into account around £400,528 of agency and temporary
staff costs incurred in the first six months primarily within the planning,
benefits, refuse and recycling, cleansing, grounds maintenance and health
and leisure services. It is anticipated that, due to seasonal variations, and in
line with previous years, agency and temporary staffing costs will reduce
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