1. business and industrial
2. company
3. annual report

Merton Council
Overview and Scrutiny
Commission
Date:
Time:
Venue:
Tuesday 11 October 2011
7.15 p.m.
Committee Rooms B and C,
Merton Civic Centre, London Road,
Morden SM4 5DX
SUPPLEMENTARY AGENDA
13
Business Plan Monitoring Report August 2011
3
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Committee: Overview and Scrutiny Commission
Date: 11 October 2011
Agenda item: 13
Wards: All
Subject: Business Plan Monitoring Report August
2011
Lead officer: Caroline Holland, Director of Corporate Services
Lead member: Mark Allison
Forward Plan reference number: 1061
Lead officer: Paul Dale, Assistant Director of Resources
Reason for Urgency
The chair has agreed to the submission of this item as a matter of urgency in
order that the commission may take a view on the content of the report and
may make recommendations to Cabinet as appropriate
Recommendations:
That the Overview and Scrutiny Commission is asked to consider the content
of the report and in particular the following recommendations to be considered
by Cabinet on 17 October 2011:
A. That Cabinet note the financial reporting data relating to revenue
budgetary control, showing a forecast underspend at year end of
almost £3.6m; capital reporting and an update on corporate items and
consider any relevant action that Cabinet wish to take in respect of
variations.
B. That Cabinet approve the transfer of £175,000 from the Outstanding
Council Programme Board Reserve to fund projects set out in
paragraph 3.1.A (Business Improvement)
C. To note the receipt of the capitalisation direction for redundancy
payments of £1.846 million of which currently £998,000 is capitalisable,
and recommends to Council the approval of the consequent increase in
the Redundancy Payments scheme of £1.414m as outlined in
Appendix 3a.
D. That Cabinet approve the increases in the Capital Programme below
£0.500m as outlined in Appendix 3a, the Capital Virements shown in
Appendix 3B and the proposed Reprofiling shown in Appendix 3C.
F. That Cabinet note the position in regard to the collection of
miscellaneous debt as at the end of August 2011.
3
BUSINESS PLAN MONITORING REPORT AUGUST 2011
1.
PURPOSE OF REPORT AND EXECUTIVE SUMMARY
1.1
This is the combined monthly financial and performance monitoring
report for 2011/12. It contains the key business metrics required by
senior management to manage the organisation. It is based on
expenditure, income and activity to 31st August 2011.
To aid understanding, key information will be provided in the report with
additional detail contained within appendices. The report will cover the
following areas:
Section 2 – Summarises the overall revenue position of the Authority
as at the end of August there is a forecast underspend at year end of
£3.6m (£2.9m forecast underspend reported last month);
Section 3 – provides detail of the revenue position for service
departments and corporate items
Section 4 – Provides information on capital reporting with requests to
approve changes and virements to the current programme
Section 5 provides information Merton’s Corporate Performance
Indicators
Section 6 provides information on Risk Management
Section 7 Updates Cabinet on the work programme of the Commercial
Services Team
Section 8 Provides monthly monitoring information on the achievement
of savings
Section 9 contains the bi-monthly report on miscellaneous debt.
The Resources Division would welcome comments and suggestions on
the presentation and information contained in the report.
2.
FORECAST REVENUE OUTTURN 2011/12 BASED UPON LATEST
AVAILABLE DATA
2.1
The revenue budgetary control information contained in the following
table summarises the corporate position, using the latest available
information as at 31August 2011.
2.2.1 Executive summary - As at August, the forecast is expected to be
almost a £3.6m underspend compared to the current budget.
The following table summarises the position and Section 3 provides
chief officer commentary on the pressures and variations.
4
Original
Budget
2011/12
£000s
Current
Budget
2011/12
£000s
Full Year
Forecast
(Aug)
£000s
Forecast
Variance
at year
end
(Aug)
£000s
Forecast
Variance
at year
end
(July)
£000s
12,927
12,123
2,252
3,250
Year to
Date
Budget
(Aug)
£000s
Year to
Date
Actual
(Aug)
£000s
11,196
Department
3A.Corporate Services
10,055
9,871
3B.Children, Schools and Families
Dedicated Schools Grant
Local Authority Funded Services
0
0
0
0
0
40,141
40,301
72,487
60,895
39,913
(388)
(388)
(462)
3C.Community and Housing
58,198
58,202
14,799
12,458
57,740
(462)
Libraries & Adult Education
Adult Social Care
3,009
3,009
1,911
1,854
3,009
(0)
0
Housing General Fund
1,715
1,715
855
275
1,618
(97)
(97)
3D.Environment & Regeneration
30,681
30,701
10,036
4,504
30,289
(412)
(713)
NET SERVICE EXPENDITURE
143,799
143,799
111,284
92,913
144,692
893
1,590
20,857
20,857
6,952
719
14,267
(6,590)
(6,643)
(250)
(250)
(83)
(280)
(550)
(300)
(249)
Capitalisation
(1,500)
(1,500)
0
0
0
1,500
1,500
Transfer to funding of 12/13
Impact of Capital on revenue budget
Pay and Price Inflation
0
19,107
0
19,107
0
6,869
0
439
5,390
19,107
5,390
0
5,392
0
Corporate Provision for Pay Award
428
428
0
0
0
(428)
(428)
Utilities Inflation Provision
841
841
0
0
341
(500)
(500)
1,825
1,795
0
0
5
(1,770)
(1,820)
3E.Corporate Items
Cost of Borrowing
Investment Inc.
Contingency
Civil Unrest
0
30
0
0
30
0
N/A
Additional Work Primary Expansion
0
20
0
0
20
0
0
Other Corporate Provisions
Government Grants
268
62
0
0
0
(62)
(62)
(10,265)
(10,265)
0
0
(10,265)
0
0
Single Status
539
539
0
0
539
0
0
VAT Savings
0
0
0
0
(800)
(800)
(800)
200
200
0
0
0
(200)
(200)
Depreciation and Impairment
Release of growth for loss of income
from P3/P4
Bad Debt Provision
Cost of DR Recovery
Levies
New Homes Bonus
London Pensions Fund – Prov for deficit
Pension Fund
500
500
0
0
500
0
0
0
0
70
70
0
0
70
0
0
888
888
374
374
888
0
0
0
0
0
(552)
(552)
(552)
(552)
132
132
0
0
0
(132)
(132)
4,737
4,737
2,461
2,461
4,737
0
0
PFI Grant
(4,797)
(4,797)
(1,199)
(1,199)
(4,797)
0
0
Council Tax Freeze Grant
(2,060)
(2,060)
(1,030)
(1,030)
(2,060)
0
0
Use of Reserves - VAT
(724)
(724)
0
0
(724)
0
0
Use of Reserves - Section 117
(100)
(100)
0
0
(100)
0
0
(4,282)
(4,282)
0
0
(4,282)
0
0
Corporate Savings-2010/11 under spend
Local Services Support Grant
0
0
0
(264)
0
0
0
7,307
7,101
7,475
229
2,657
(4,444)
(4,494)
151,106
150,900
118,759
93,142
147,329
(3,551)
(2,904)
- NNDR
(50,888)
(50,888)
- RSG
(15,729)
(15,729)
(2,065)
(1,859)
(82,157)
(82,157)
0
0
0
0
0
TOTAL CORPORATE PROVISIONS
TOTAL GENERAL FUND
Funding
Formula Grant:
Collection Fund
Council Tax
- General
- WPCC
FUNDING
(267)
(267)
(151,106)
(150,900)
5
The following table shows the summary position for August, in subjective
format.
Current
Budget
2011/12
Expenditure
Employees*
Premises Related Expenditure
Transport Related Expenditure
Supplies and Services
Third Party Payments
£000
Year to Date Year to Date
Budget (Aug) Actual (Aug)
£000
£000
Full Year
Forecast
(Aug)
Forecast
Variance at
year end
(Aug)
£000
£000
85,279
35,927
37,188
86,999
1,720
7,887
3,813
2,745
7,746
(141)
11,781
4,691
4,356
11,797
15
145,977
61,978
51,491
145,413
(564)
88,144
31,849
26,904
87,132
(1,012)
113,301
4,433
4,055
113,212
(89)
Support Services
34,756
1,495
686
34,756
(0)
Depreciation and Impairment Losses
10,266
488
0
10,264
(1)
7,101
7,475
229
2,607
(4,494)
504,491
152,148
127,653
499,925
(4,566)
Transfer Payments
Corporate Provisions
GROSS EXPENDITURE
Income
Government Grants
(250,751)
(8,232)
(8,042)
(250,756)
(5)
Other Grants, Reimbursements and Contribs
(15,973)
(4,820)
(6,034)
(15,503)
470
Customer and Client Receipts
(50,180)
(18,240)
(17,863)
(49,631)
549
Interest
Recharges
Balances
GROSS INCOME
NET EXPENDITURE
(44)
0
0
(44)
0
(34,808)
(449)
(677)
(34,807)
1
(1,833)
(1,650)
(1,895)
(1,833)
0
(353,591)
(33,390)
(34,511)
(352,575)
1,015
150,900
118,759
93,142
147,349
(3,551)
* The employees figure includes current redundancy payments/commitments to date
6
Chart 1 below shows the forecast year end variance for departmental
expenditure with a comparison against 2010/11.
Service Expenditure - Forecast Year End Variance
3,000
£'000
2,000
March
February
January
December
November
October
September
-1,000
August
Service Expenditure
10/11
July
0
June
Service Expenditure
11/12
May
1,000
-2,000
-3,000
Chart 2 shows the forecast year end variance for corporate provisions with a
comparison against 2010/11.
Corporate Provisions - Year End Forecast Variance
6,000
4,000
2,000
February
January
December
November
October
September
August
July
-2,000
June
May
£'000
0
11/12 FY Forecast
10/ 11 FY Forecast
-4,000
-6,000
-8,000
Charts showing the forecast year end variance for each department with a
comparison against 2010/11 are attached as Appendix 5.
7
3.
DEPARTMENTAL SUMMARY OF CURRENT POSITION
3.1
This section of the report provides a brief summary of each
department’s current budgetary control position.
(A)
Corporate Services department
The overall position at period 5 is a projected overspend of £2,252K at
year end.
The main reasons are the corporate redundancy cost of £2,580K and
the £420k cost of the late implementation of the support services
restructure. The Council has received approval to capitalise the
statutory element of the redundancy cost of £998k incurred to date
which is reflected in the forecast overspend.
The other £250k projected overspend is predominantly made up of
corporate communications underachievement of income £96k, low
demand for graphic design £90k, a reduced demand for printing work
£60k and legal S106 income shortfall £47k. This is partly offset by
underspends elsewhere.
Customer Services
The Corporate Communications income target relating to sponsorship,
advertising and filming is projected to be underachieved by £96k based
on current activities.
Demands for graphic design continues to be significantly lower than
last year and this trend is expected to continue resulting in a forecast
overspend of £90K.
Infrastructure and Transactions
The print room has experienced a fall in demand for both internal and
external printing work. This is expected to continue and the shortfall on
income is forecast to be £60k.
Corporate Governance
The shared legal service with Richmond became effective from 12th
September 2011. A transitional budget for the remainder of this
financial year has been agreed. A charging mechanism to apportion
the costs of the shared service reflecting usage by each Council will be
agreed and implemented from April 2012.
Management Action
Officers will closely monitor the financial position of the areas identified
above and will identify compensating savings where possible.
8
Business Improvement
Merton 2015 Board have considered two transformation projects and
are recommending their approval:
Customer Relationship Management – Waste Management,
Complaints and Members Enquires. A business case has been
submitted to the Merton 2015 Board and this scheme has been
approved. The total cost of the scheme is £190,000. Of this amount,
£160,000 is estimated to be expenditure of a capital nature and funds
for this are included in the Transformation capital budget. The residual
cost of £30,000 is expenditure of a revenue nature, which requires
funding from reserves.
GIS/LLPG £145,500 - a business case has been submitted to the
Merton 2015 Board and this scheme has been approved. This cost
requires funding from reserves.
It is recommended that funding is transferred from the Outstanding
Council Programme Board Reserve to fund these sums, there is
currently in excess of £4 million in this reserve.
(B)
Children, Schools and Families
Overview
At the end of August the department is expecting an under spend of
£300,000 relating to Children Social Care and Youth Inclusion;
£88,000 relating to Education grants; and £200,000 relating to DSG
funded SEN placements in independent sector day schools.
A number of factors mean that forecasting is not currently as robust as
it needs to be. Some of these relate to process issues, e.g. delays in
forwarding invoices for processing. There are also a number of minor
issues need addressing on systems, e.g. registering contractual
commitments, furthermore the previous presentation of budget and
monitoring information did not match the departmental management
structure. It is essential that these issues are addressed so that
forecasting is improved, particularly in light of the volatile nature of
many CSF budgets and a programme of remedial work is underway to
this end. The financial processing issues are being addressed, and
budget reporting is being structured so that it is more transparent for
managers. This is being backed up by training for managers, and more
focussed attention to review of forecasts by senior management
working jointly with finance staff.
9
Dedicated Schools Grant pressures
As at the end of August the DSG funded Special Education Needs
(SEN) placements are under-spending by £200,000. This is due to
lower spending on the independent sector day schools. It is important
to note that more SEN placements are likely to be made from
September onwards, which would reduce this figure.
Local Authority funded services
The demographic pressures and volatile nature of the children social
care placement budgets mean that close monitoring and demand
management is required on an on-going basis. At the end of August, the
service anticipates under-spending to the value of £300,000 relating to
independent fostering; mother and baby assessments; and leaving care
placemats.
There will be a one off under-spend on Education grants of £88,000 as a
result of a prepayment of the first quarter monies in 2010/11.
It is expected that there will be a cost in relation to the cessation of the
Connexions six borough arrangements. Some budget has been put
aside to cover the cost but the actual amounts will not be known until
later in the year.
Management Action
CSF managers are working jointly with Corporate Services staff on
improving financial processing and budget management arrangements to
make forecasting more robust.
(C)
Community and Housing
The overall position at Period 5 is a projected under-spend of £559k, no
material change from last month
Ref.
Community and
Housing
2
3
4
5
Adult Social Care
Libraries and Heritage
Merton Adult Education
Housing General Fund
Total Community &
Housing
54,735
2,044
(55)
1,286
Forecast
Variance
at year
end (Aug)
£000
(462)
0
81
(97)
Management
Action
identified to
date
£000
0
0
81
0
Forecast
Variance
at year
end
£000
(462)
0
0
(97)
58,010
(478)
81
(559)
Current
Budget
2011/12
£000
10
Adult Social Care
Overview
The Social Care Management Team review the care package budgets
monthly and identifies management action as appropriate.
The table below identifies the movement in care package numbers:
Activity Data – Care
Package Numbers
Service Area
Mental Health
Physical and Sensory
Learning Disabilities
Older People
Substance Misuse
No recourse to public funds
Total
No of Care
No of Care
Packages as at Packages as at
Aug 2011
July 2011
187
181
290
287
342
349
1,703
1,724
3
7
21
25
2,546
2,573
Increase/
decrease
since Jul
(6)
(3)
7
21
4
4
27
Pressures
There is currently sufficient budget to cover current commitments. Due
to the number of factors influencing care packages, the budgets are
volatile and therefore at risk of significant fluctuations. This will continue
to be monitored and any changes will be reported.
Management Action to date
The review of client contributions income has commenced.
The NHS social care allocation return has been submitted to the PCT
for the £2.052m grant received. The return is to enable the Department
of Health to establish how the funding transferred by the NHS to local
authorities was allocated against Social Care activities.
Libraries and Heritage
Overview
As at end of August 2011, no overspend is anticipated and no budget
pressures to report.
11
Merton Adult Education
Overview
MAED is reporting £81k budget pressures as a result of Early years
curriculum assessment costs relating to previous year, unanticipated
building maintenance costs and other administrative expenses.
The Head of Service is reviewing all areas to ensure that the section
does not overspend its approved budget.
Pressures
The income budget in being monitored closely as there is a risk that
that MAED may under achieve its Income target.
Housing General Fund
Overview.
The increase of £97 k of the Preventing Homelessness grant received
has been declared as an under-spend.
The overall the position is difficult to predict so adjustments to the
forecast may occur across the financial year. No overspend is
anticipated.
(D)
Environment and Regeneration
The Department is currently forecasting an underspend of £412k at
year end. There are three main areas of variance – Parking Services
and Property Management are forecasting a significant overspend
whilst large savings against budget are expected within Waste
Services.
Areas of significance
Parking Services.
In recent years the greatest financial pressure on the Department has
been the inability to achieve income estimates within the Public
Protection & Development Division. This was recognised in the 201112 estimate process, when a growth item of £1.5m was agreed. £1.2m
of this was added to the Parking Income base budget.
However the net overspend for the Parking Service for 2010-11 was
£1.67m and a number of income budgets were increased by 2011-12
savings proposals. It is currently projected that there will be a net
Parking overspend of £220k for 2011-12.
12
Property Management
The Property Management section is currently forecasting a shortfall in
rental income of around £167k. This comprises £60k rental income for
Dorset Road, which is currently in the process of being sold, and £100k
rental income relating to an Invest to Save proposal which has
subsequently not gone ahead. The section is currently seeking to
mitigate this by completing three new leases at £68k per annum.
The section is also currently incurring security costs with regard to
safeguarding the property on Dorset Road prior to its sale, and are
currently forecasting that this will result in a revenue cost of around
£270k. The Property Management and Review Manager will be looking
to mitigate this by reducing security costs for Dorset Road once
marketing ends at the end of October.
Waste Services
Although there are areas of pressure within Waste Services, notably
shortfalls in Commercial income and possible increased Agency staff
costs due to new regulations, it is forecast that there will be a net
underspend of £1.080M across this area. This is mainly due to a
renegotiation of the indices-linked SWLP contract costs, and a
reduction in the levels of residual waste being taken to landfill.
Greenspaces
Negotiations are ongoing with members of the Greenspaces team and
the unions to resolve a dispute relating to the pay rates for overtime
preceding the adoption of single status. Provision is being sought for
monies to resolve this, and allow an offer to be made to the staff
concerned. It is not expected that this will impact on Departmental
revenue budgets.
Management Action
The Parking Service Review was one of the first to be completed and it
is hoped that the early introduction of some of the measures will enable
the projected shortfall for this area to be mitigated by the end of the
financial year.
Any other efficiency savings arising from Service reviews will be
introduced within 2011-12 if practical to do so.
All managers are aware of the need to contain expenditure and
maximise income wherever possible. Corporate guidance regarding the
filling of vacant posts will be strictly adhered to.
13
(E)
Corporate Items
These budgets cover a wide range of significant areas including
treasury management, contingency, contributions to past service
deficiency on the pensions fund and contributions from government
grants and use of reserves.
The assumptions underpinning budgets and projected outturn are
contained in Appendix 1 and 2. The main areas of variance as at 31st
August are:-
1.
Impact of Capital on Revenue Budget
As reported last month, there are three main areas of variance relating
to capital expenditure and financing which will lead to a net reduction in
borrowing and investment costs: capitalisation, debt redemption, and
cost of borrowing (net of investment income). The implications of not
being able to capitalise and of redeeming debt will not change in
2011/12 from the position previously reported, but the cost of borrowing
and level of investment income will vary, dependent on changes in
factors such as interest rates, cash flow and level of capital expenditure
which, based on previous experience, is subject to slippage.
Cost of Borrowing (net of investments): The budget managers’ forecast
year end variance in the 2011/12 capital programme is for an
underspend of £17.898m against budget based on August data. This
compares to an underspend of £17.372m reported to.Cabinet on 19th
September (based on July 2011). It is estimated that the impact of this
slippage, now estimated at 22.3%, coupled with anticipated levels of
capital expenditure, and reduced interest costs resulting from debt
redemption will result in a reduction in net borrowing and investment
costs of £6.9 million. Addressing the capitalisation budget, will leave
£5.4 million that can be utilised as part of future years capital financing
requirements or utilised for other purposes as determined.
A strategic review of the capital programme is currently underway as
part of the 2012/13 business planning process. The final accounts for
2010/11 include a revenue reserve for capital purposes of £4.275m as
at 31st March 2011. In producing the forecast outturn for 2011/12 it has
been assumed that this is reinvested in 2011/12 to fund capital
expenditure.
It will be necessary to set aside some of the anticipated 2011/12
underspend to fund expenditure which cannot be charged to capital as
it does not fulfil the definition of expenditure for capital purposes but will
still be required to be undertaken to ensure that essential work is
carried out. This is still being reviewed.
14
2.
3.
Pay and Price Inflation
The assumptions underpinning budgets and projected outturn are
contained in Appendix 1. As previously reported, based on projected
inflationary levels it is envisaged that £0.928 million will remain
unspent.
Civil Unrest
As previously reported, the Council is contributing £30k to a Charitable
Fund established to support small enterprises in recovering from the
disturbances caused by the civil unrest.
Financial help in the form of hardship relief by reducing business rates
will be offered to certain businesses whose trading has been
interrupted as a result of the riots.
The Fund will target grants on smaller businesses that have been
affected in various ways but who cannot access adequate support from
other sources e.g. premises not directly hit, but close to others that
were and in a way that will have a significant impact on trading
conditions in the short-term, and businesses which were under-insured.
A budget of £30k will be established by virement from the contingency
provision. And this is reflected in the Table in paragraph 2.2.1
4.
Contingency provision
The budget approved for 2011/12 included a contingency of £1.820m.
This has reduced to £1.790m as £30k has been vired to establish the
contribution to the Charitable Fund referred to in Section 3. In the
current economic climate and recession, this contingency will be
essential to provide a buffer against the potential risks of overspending
against the approved budget, particularly given the continuing high
level of inflation. This will enable any decision to undertake additional
expenditure to be based on a case by case basis and additional
resources released accordingly which is in line with the risk based
approach reported to Cabinet previously.
Considerable work needs to be undertaken in respect of the Primary
Schools Expansion Programme. To provide additional capacity within
the School Organisation Team for the consultations/statutory
processes that need to be undertaken it is recommended that £20,000
is transferred from this year’s contingency budget.
The use of contingency will be kept under review on a month by month
basis.
15
Other corporate provisions
There are budgets and/or actuals for Single Status (£0.5m), Government
Grants (£0.062m), VAT Savings (£0.8m), contingency for loss of income from
P3/P4 (£0.2m), unallocated New Homes Bonus funding, and contribution to
London Pension Funds deficit (£0.132m). It is probable that there will a net
under spend against the budget for these and work is continuing to confirm
this.
4.
CAPITAL
A.
Capital Programme 2011/12
Council on 2 March 2011 agreed the capital programme for 2011-15
and Cabinet on 18th July 2011 approved some revisions to reflect the
addition of new schemes funded by grants and contributions identified
for 2011/12, offset partly by the removal of schemes for capitalisation
(£1.5M) and Transportation Enhancements (£2.5m).
The final slippage, together with new schemes funded by grants and
contributions, and virements over £100,000 were agreed by Cabinet on
19th September 2011.
B.
Reprofiling 2011/12
In 2010/11 all departments completed a half-year review of their
programmes and reprofiled their capital budgets. This exercise has
been repeated a month earlier in 2011/12 and departments have
reduced significantly their proposed spending in the current financial
year, bringing their current year’s budget more in line with the
managers’ year-end forecasts. The departments’ reprofiling proposals
were agreed by the Capital Programme Board at its meeting on 20
September. As set out in Appendix 3c, this reprofiling has reduced the
current year’s programme by £21.324m. In Children, Schools and
Families there are also some reallocations between schemes resulting
in a positive rather than a negative profiling adjustment. These
reallocations are the result of the reprofiling review and have therefore
been shown in Appendix 3c rather than as virements in appendix 3b. In
the case of one scheme, a budget is being proposed where there is
currently no budget in 2011/12. This scheme is Bond PCP. This is a
2010/11 Capital Programme scheme funded through the Primary Care
Programme. It required some minor finishing works during this summer
costing £85k.
16
A significant amount of reprofiling relates to primary schools expansion.
The Children, Schools and Families department has requested that
significant finance is reprofiled to spend less in 2011/12, and more in
2012/13 and 2013/14. This is as a result of completing detailed
feasibility studies for all expanding primary school schemes over the
past 6 months, thus agreeing an appropriate phasing strategy to
provide classrooms when they are needed as schools gradually
expand from reception year up to year 6.
Since the major programme of expansion started in 2008, 18 schools
have been expanded on a permanent or temporary basis. For
September 2011 all schools received their additional classrooms as
planned for September 2011, including 10 schools that provided an
additional reception class for the first time.
B.
Monitoring
Capital expenditure is £15.663m at the end of August 2011. This
compares with a spend of £17.353m at the same point in 2010/11.
The budget shown in the table below includes the reprofiling discussed
above and other additional items requiring Cabinet approval as set out
in Appendix 3a. It is also set out on the basis of Council approving the
increase in Redundancy costs noted below. The additional items are:
• An increase in the Redundancy costs budget of £1.414m,
reflecting the Gate 2 approval, which the authority has received
from the Secretary of State for Communities and Local
Government. This increase requires Council approval. This
increase is noted as being funded by borrowing, but may be
funded by capital receipts as a result of the capital financing
review being undertaken by the Capital Programme Board.
Current commitments to date are £998,000
• The application of Section 106 monies to Haslemere Avenue
and various parks schemes.
As the budgets have all been reprofiled with effect from 1 September
2011, as at 31 August 2011 the budget to date is now the same as the
actual to date, and the Manager’s Forecast Spend at the Year End is
the same as the Revised Budget. The previously agreed budget is
shown for comparison. Based on the monitoring information at 31st
August 2011 the overall position is as follows:-
17
2011/12
Budget to
Date
31 Aug
2011
Actual to
Date
31 Aug
2011
Variance
to Date
31 Aug
2011
Manager’s
Forecast
Variance at
Year End
£m
£m
£m
£m
£m
£m
79.722
60.415
15.663
15.663
0
0
Budget
Cabinet
19 Sept
2011
Revised
Budget
The budget, MTFS and capital programme are being reviewed as part
of the budget and business planning process for 2012-2016, and
project managers are in the process of reviewing their programmes to
identify potential savings, leading to a reduction in the revenue costs of
providing capital investment. The Capital Programme Board is looking
particularly at the reprofiling from 2011/12, which it has agreed, to see
to what extent it is required in future years and what can be proposed
as savings. The aim is to produce a capital programme which is
affordable and sustainable over the medium to long term which is
aligned to the Council’s business plan objectives.
Appendix 3 provides further details on the capital programme
supplemented as follows:
Appendix 3a - Funding Summary – This shows the movements in the
programme since Cabinet on 19th September 2011
which require approval.
Appendix 3b - Virements – requiring approval. Virements over
£100,000 or between departments require approval by
cabinet.
Appendix 3c - Reprofiling– This sets out the reprofiling proposed for
each department
Appendix 3d - Summary for report– This sets out the total line for
each department
18
5.
PERFORMANCE MONITORING
A.
Corporate Performance Indicators
The August performance dashboard will available on the internet and
intranet from 28 September 2011. This information is located at
Y:\Policy, Partnerships and Performance\PIT\Dashboard\2011-2012
Web Dashboards
There are 21 corporate indicators in total, one is reported biennially,
two annually. Comments have been sought for those indicators which
are under performing (red and amber), or for those where data has not
been received (DNR). The table in Appendix 4 details the August
performance against July performance for the 18 corporate indicators
together with comments received.
Of the 18 reported, seven are red, one is amber, three green, four blue
and data was not received for three.
We are still awaiting the allocation of a responsible officer for CRP 08.
B.
Single data set
Contact details are being collated for the data listed on the single data
set so that the business planning team are able to act as a point of
contact for issues. Departments will then be approached to determine
the level of returns monitoring they require for example Children,
Schools and Families are happy to monitor their own returns, whilst the
Business Planning team will monitor the returns for Corporate Services.
6.
RISK MANAGEMENT
Over the coming month all Departmental Management Teams will be
reviewing their Departmental and Key Strategic Risks. These will be
reported separately next month.
7.
COMMERCIAL SERVICES
Currently the Corporate Procurement Team are undertaking the
following activity.
•
Continuing to support the retender of the Transport Services
contracts in E&R, valued at approximately £1m pa. The project is
currently at the tender evaluation stage. This tender is being
completed via the e-tendering system.
•
Continuing to support the retender of the Highways Maintenance
contracts in E&R, valued at approximately £8m pa. The short
listing stage will soon be completed and tenders will be issued in
October. This tender is also being completed via the e-tendering
system.
19
•
Continuing to support the retender of the Home Support Services
contracts in C&H, valued at approximately £6.5million pa. This
tender is being completed via the e-tendering system.
•
Supporting CS&F colleagues on the design and re-procurement of
the service at the Intergenerational Centre in Mitcham.
•
Improving the governance of procurement activity via a
strengthened Procurement Board, operational procurement
groups, improved Contract Register and an updated and improved
version of the Contract Standing Orders in time for April 2012.
Also, two new staff members will join the team in OctoberDecember to lead future procurement work.
•
Continuing to plan for the ‘Commercial Skills’ workshops that will
be delivered in October / November to 80+ staff across the
council, who undertake procurement and contract management as
part of their role.
8.
PROGRESS ON DELIVERY OF SAVINGS FOR 2011/12
8.1
The savings proposed for 2011/12 of £15.127m are shown below:
SAVINGS
2011/12
£000
Savings
achieved to date
(August) £000
Corporate Services & Chief Executive's
3,647
425
Children, Schools and Families
2,255
942
Environment and Regeneration
4,682
1,905
Community and Housing
4,543
2,109
15,127
5,381
TOTAL
A detailed summary of savings by department is attached as Appendix
6.
9.
DEBT COLLECTION AND MANAGEMENT
The bi-monthly debt report is included as Appendix 7, as indicated in
the June monitoring report additional analysis is included in respect of
parking debt. Two key indicators are part of the corporate performance
indicators reported at Appendix 4.
10.
CONSULTATION UNDERTAKEN OR PROPOSED
20
10.1
All relevant bodies have been consulted.
11.
TIMETABLE
11.1
In accordance with current financial reporting timetables.
12.
FINANCIAL, RESOURCE AND PROPERTY IMPLICATIONS
12.1
All relevant implications have been addressed in the report.
13.
LEGAL AND STATUTORY IMPLICATIONS
13.1
All relevant implications have been addressed in the report.
14.
HUMAN RIGHTS, EQUALITIES AND COMMUNITY COHESION
IMPLICATIONS
14.1
Not applicable
15.
CRIME AND DISORDER IMPLICATIONS
15.1
Not applicable
16.
RISK MANAGEMENT AND HEALTH AND SAFETY IMPLICATIONS
16.1
Not applicable
17.
APPENDICES – THE FOLLOWING DOCUMENTS ARE TO BE
PUBLISHED WITH THIS REPORT AND FORM PART OF THE
REPORT
Appendix 1 – Pay and Price Inflation as at July 2011
Appendix 2 – Treasury Management: Outlook during 2011/12
Appendix 3 – Capital Budget Monitoring as at 30 July 2011
Appendix 3a – Funding Summary
Appendix 3b – Capital Virements.
Appendix 3c – Reprofiling
Appendix 3d – Summary for report
Appendix 4 – Corporate Performance Indicators July 2011
Appendix 5 – Departmental forecast variance charts
Appendix 6 – Savings summary by department
Appendix 7 – Miscellaneous debt report
18.
BACKGROUND PAPERS
18.1
Budgetary Control files held in the Corporate Services department.
21
19.
REPORT AUTHOR
− Name: Paul Dale
− Tel: 020 8545 3458
− email: [email protected]
22
Pay and Price Inflation as at July 2011
Appendix 1
In 2011/12, the MTFS includes 0.5% for increases in pay and 2% for
increases in general prices, with additional amounts for extra inflation
provision for those areas of high inflation (e.g. transport, care homes).
Pay:
2011/12 – The MTFS approved by Council on the 2nd March 2011 includes
0.5% for increases in pay. This equates to £0.428m and is held as a
corporate provision.
Pay Claim 2011/12:
There have been no developments since last month.
Prices:
CPI annual inflation – the Government’s target measure – was 4.5 per cent in
August, up from 4.4 per cent in July.
The main upward pressures came from clothing, fuels and lubricants,
furniture and household goods and domestic heating. Downward pressure
came from transport services, particularly air, sea and rail passenger transport
services. Other downward pressure came from recreation and culture
services.
In the year to August, RPI annual inflation was 5.2 per cent, up from the July
figure of 5%. The main factors affecting the CPI also affected the RPI.
Outlook for inflation:
As previously reported, the Bank of England’s latest Inflation Report for
August 2011 indicates that CPI inflation remains well above the 2% target and
“is set to rise further in 2011, boosted by increases in utility prices. Inflation is
likely to fall back through 2012 and 2013 as the impact of the factors
temporarily raising inflation diminishes and downward pressure from slack in
the labour market persists.”
The latest inflation forecasts for the UK economy, based on a summary of
independent forecasts are set out in the table below:Source: HM Treasury - Forecasts for the UK Economy (August 2011)
2011 (Quarter 4)
CPI
RPI
2012 (Quarter 4)
CPI
RPI
Lowest
Estimate
%
3.4
4.0
Highest
Estimate
%
5.3
5.9
Average for
group
%
4.5
5.3
Lowest
Estimate
%
1.3
2.3
Highest
Estimate
%
3.5
5.3
Average for
group
%
2.2
3.3
23
Clearly where the level of inflation during the year exceeds the amount
provided for in the budget, this will put pressure on services to stay within
budget and will require effective monitoring and control.
24
Appendix 2
Treasury Management: Outlook during 2011/12
The scenario for 2011/12 so far has remained similar to that in 2010/11
and this is expected to continue for at least the next quarter. The
continuing high level of inflation is cause for concern. On 8th
September 2011 the Bank of England’s MPC voted to maintain the
Base Rate at 0.5%. The Committee also voted to maintain the level of
Quantitative Easing at £200 billion.
Forecasts for Bank Base Rates, based on August 2011 are
summarised in the following table:End End
Q.3
Q.4
2011 2011
0.5% 0.5%
0.5% 0.5%
End End
Q.1
Q.2
2012 2012
0.5% 0.5%
0.5% 0.5%
End
End End
End
Q.3
Q.4
Q.1
Q.2
2012
2012 2013
2013
0.5% 0.75% 1.0% 1.25%
0.5% 0.5% 0.5%
Sector
Capital
Economics
UBS
0.5% 0.5% 0.75% 1.0% 1.25%
1.5%
Markets remain concerned about the political and debt problems in
Europe and the USA and the potential impact of weakening economic
data fro the industrialised economies. These concerns are reflected by
the switch to safe haven investments such as gilts which have seen
yields decline.
Despite the weak economic data, prior to this month the MPC has
remained split with two votes for an increase in Bank Rate based upon
the high levels of inflation, but for August the vote for no change was
unanimous at 9-0.
The MPC also considered a further bout of quantitative easing and
admitted that more asset purchases might be warranted should
conditions deteriorate.
25
Appendix 3
1.
CAPITAL BUDGET MONITORING AS AT 31 AUGUST 2011
This section on capital expenditure looks at:
• Capital expenditure and budgets in 2011/12
• Critical Schemes in 2011/12
1.1
Capital expenditure in 2011/12.
1.1.1 Capital expenditure is £15.663m at the end of August 2011. This
compares with a spend of £17.353m at the same point in 2010/11.
1.1.2 Each department’s major items are described below:
1.1.2.1
Corporate Services – The major item of note in this department
continues to be the progress on the Merton 2015 Transformation
programme which is likely to be significantly underspent at yearend. This projected underspend is now reflected in the proposed
reprofiling of £2.8m from 2011/12 to future years.
1.1.2.2
Children, Schools and Families – The department has continued to
reprofile its budgets so that £5.4m is now programmed to be spent
in future years. Most of this relates to primary school expansions,
however, £1.3m relates to Garden School.
1.1.2.3
Environment and Regeneration – This department is now reprofiling
£13.0m of the 2011/12 programme budget to be spent in future
years. The majority of this is across all E & R services. However,
specific schemes being reprofiled into 2012/13 are Town Centre
Improvements £0.7m and Transportation enhancements in
Wimbledon, Morden and Mitcham town centres £2.4m. Schemes
that have been reprofiled will be reviewed as part of the 2012-16
Capital Programme process.
1.1.2.4
Community and Housing – Nothing significant to note.
1.1.3 The tables at the end of this Appendix show:
Appendix 3a - Funding Summary – This shows the movements in the
programme requiring approval since the last Cabinet with reasons for
changes.
Appendix 3b - Virements – requiring approval. There are no
virements over £100,000 requiring approval of cabinet.
Appendix 3c – Reprofiling – This sets out the proposed reprofiling
from 2011/12 to future years for each department.
Appendix 3d - Summary for report– This sets out the total line for
each department.
26
1.2
Critical Schemes in 2011/12
1.2.1 At the March 2011 CMT meeting, it was decided to continue with
detailed reporting of the authority’s critical capital projects. The
schemes to be monitored were agreed as the same schemes
monitored in 2010/11 but with the addition of the IT schemes,
particularly Merton 2015 Transformation.
At the time of writing this report, the position is unchanged from the
August report. All such schemes are on track with the exception of
Merton 2015.
1.2.2 Merton 2015 - Business Improvements and I&T
In respect of the Business Improvement schemes, some are being
successfully implemented e.g. CRM, FMIS upgrade, e-payments,
EDRMS resilience and the Capital reporting project. However, a
substantial part of the budget has still not been allocated to individual
schemes. The process for this allocation will commence with a detailed
report to Merton 2015 officers setting out the results of a review by the
Business Improvement team into the authority’s business requirements
and concomitant system development needs. Thereafter the Business
Improvement schemes will be reconstructed with revised payment
profiling in 2011/12 and revised capital programme proposals feeding
into the 2012-2016 Capital Programme process.
In respect of IT schemes, the funding for “Development of shared
services through cloud computing”, budget £982k, is being reviewed in
the light of feedback and comments from the latest Capital Ambition
Board. The position of the board should be clearer in October.
1.2.3 Children, Schools and Families
The most significant capital investment area for the next three years
will continue to be the expansion of Merton’s primary schools. The CSF
capital programme is sufficiently funded to complete schemes currently
under construction and implement further major primary school
expansion projects. The 2011/12 programme for primary schools
expansion and other major projects is set out below:
27
CSF CAPITAL PROGRAMME - MAJOR PROJECTS
With regard to projects monitored in CMT reports in 2010/11 the
following is an update of schemes still under construction/recently
completed:
SEN Centre of Excellence:
Scheme is to provide a new secondary phase special school for St.
Ann's School for children with complex needs, with the current building
reverting to primary age only.
Progress Summary: Completed: The project has been successfully
completed and the building is now occupied, with a moving-in
ceremony undertaken in May. An official opening is planned for
October.
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
1,568
492
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
337
(155)
1,553
Wimbledon Chase Primary School
Expansion from 420 to 630 places
Progress Summary: The main works have been completed and the
building was occupied immediately after the May half term. Final works
were completed during the school summer holidays. Official opening is
21 September. The use of any savings on this scheme, after allowing
for retention monies carried forward to 2012/13, will be considered in
respect of the overall requirements of the Primary Expansion
Programme and the Capital Programme review for 2012-16.
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
1,315
913
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
1,088
175
1,303
Hollymount Primary School
Expansion from 210 to 420 places
Progress Summary: Project on Schedule for building to be occupied
in March 2012 and full completion in September 2012.
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
3,470
1,034
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
638
(396)
2,445
Joseph Hood Primary School
Expansion from 210 to 420 places
28
Progress Summary: Phase one completed to schedule for
September for additional pupils. Completion of phase 2 for September
2012.
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
4,150
1,282
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
1,006
(276)
4,000
Benedict Primary School
School suitable to return to accommodating 420 places
Progress Summary: Phase one completed to schedule for start of
term in September. Completion of phase 2 on schedule for March 2012
and phase 3 September 2012
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
1,835
715
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
658
(57)
1,736
Former Royal Sun Alliance Sport Ground
Provision of pavilion and bringing grounds back into use for Raynes
Park High School in exchange for Oberon
Progress Summary: Project just commenced on site for completion in
April 2012
Revised
2011/12
Budget
£000s
Budget to
Date
£000s
1,361
344
Actual to Date
£000s
Variance to
date
£000s
Managers
Year End
Forecast
£000s
159
( 185)
1,361
Further funded primary school expansion major projects are being
planned for 2011/12 and are being phased as appropriate to ensure
sufficient buildings are available for pupils in the expanding schools,
and subject to legal process on school expansion. The following is a
summary of all the schemes increasing by 1 form of entry (eventually
an additional 210 places per school each across all year groups):
(More financial detail will be provided on these schemes when the
detailed budgets are available.
All Saints CE Primary School /South Wimbledon Centre - Extra
class on All Saints site on schedule for completion for September 2011.
Design work and consultation for South Wimbledon Centre planned for
the October.
Aragon Primary School - Sufficient classrooms available through
adaptation for September 2011. In design phase for major scheme.
Cranmer Primary School - Sufficient classrooms available through
temporary provision from September 2010 to July 2013. In design
phase for major scheme; statutory consultation undertaken.
29
Dundonald Primary School - Extra class provided following additional
demand through existing accommodation for September 2011. Cabinet
agreed to progress the scheme on 19 September 2011,with a preplanning application consultation and an application to the Upper
Tribunal (Lands Chamber).
Gorringe Park Primary School - Sufficient classrooms available
through adaptation for September 2011. In design phase for major
scheme. Planning application and statutory consultation to be
undertaken in late September/early October.
Liberty Primary School - Sufficient classrooms available through
adaptation for September 2011. In design phase for major scheme.
Statutory consultation to be undertaken in in late September/early
October.
Singlegate Primary School - Sufficient classrooms available on a
temporary basis for September 2011. In design phase for major
scheme with first phase submitted for a planning application. Statutory
consultation to be undertaken in late September/early October.
St. Mary's Primary School - Sufficient classrooms for September
2011 completed through adaptation of former Community Services
building. In design phase for phase 1 of major scheme (modular
buildings through Office for Government Commerce framework) and
going to competition for design of main phase 2 works. Statutory
consultation undertaken.
William Morris Primary School - Sufficient classrooms available for
September 2011 with hall adaptations completed to schedule - a
phased adaptation scheme planned to allow the school to return to 420
capacity.
Wimbledon Park - Temporary classrooms completed for start of term
in September 2011. In design phase for major scheme. Statutory
consultation to be undertaken in October.
Hillcross - Extra class, following additional demand, provided through
adaptation for September 2011. Design work on feasibility of
permanent expansion to commence in October.
The Priory - Extra class, following additional demand, completed to
schedule through single temporary classroom for September 2011. No
plans for permanent expansion.
30
1.2.4
Transport for London, Highway Maintenance and Footway
Maintenance
HIGHWAYS MAINTENANCE – BOROUGH RDS
087P SS&W ML
Description of Project (S)
Revised
2011/12 Budget
£000s
Budget to Date
£000s
Actual to Date
£000s
Variance to
date
£000s
Managers Year
End Forecast
£000s
1,578
822
746
76
1,578
Maintenance (re-surfacing or reconstruction) of the Borough’s non principal
classified and unclassified roads (residential roads). The Carriageway Planned
Maintenance Programme contains 27 carriageway resurfacing schemes across
the borough. The list of schemes is available on Merton’s Website roadwork’s
page.
At 31 August 2011 the following roads have been progressed:
Abbey Road, Burlington road, Church road, Briston road, Cannon Hill lane,
Haydon Park Road, Dorien Road, Kingsmead Avenue, Malmesbury Road,
Merton road, Newhouse Walk, Palmerston Road, Russell Road, Sunnymead
Avenue, Tavistock Crescent, Tonstall Road, Waterfall Road, Whatley Avenue.
These roads should be completed or nearing completion.
FOOTWAY MAINTENANCE – BOROUGH RDS
Description of Project (S)
Revised
2011/12
Budget
£000s
Budget to Date
£000s
Actual to Date
£000s
Variance to
date
£000s
Managers Year
End Forecast
£000s
1,074
243
398
155
1,074
Planned footway maintenance on borough roads. The footway maintenance
programme is aimed at footway renewal following safety and condition
inspections. The programme identifies 13 roads across the borough requiring
footway renewal works.
At 31 August 2011 the following ways are either complete or in progress:
Abbey Road, Rosemead avenue, Sunny Mead avenue, Pentlands Close, The
Drive.
31
TRANSPORT FOR LONDON SCHEMES
Revised
2011/12 Budget
£000s
Budget to Date
£000s
Actual to Date
£000s
Variance to
date
£000s
Managers Year
End Forecast
£000s
4,972
1,175
1,699
524
3,596
The Transport for London allocation for 2011/12 is aimed at developing transport
improvement schemes under the heading of “Corridors” and “Neighbourhoods”,
providing ”Safer Routes to Schools”, reducing collisions, developing the “Cycle
Network”, improving road safety with “Smarter Travel”, provision for electric
vehicles infrastructure and contributing to “Borough” and “Partnership” schemes.
The “Major Schemes” programme (£330k) will contribute to deliver the
“Destination Wimbledon” Project, which is aimed at improving accessibility and
streetscape improvement in Wimbledon Town Centre. The “Principal Roads”
programme (£414k) is planned for Carshalton Road (Goat Rd to Crammer Rd),
Merton Road (Broadway to Merton High St), Morden Road (Ravensbury Grove to
Morden Gardens).
As at 31 August:
Destination Wimbledon update: Phase 3 of the scheme, relating to the introduction
of a new forecourt area outside of the station, is substantially complete. Cycle
parking facilities have been introduced in this area, and benches, planting,
lighting and a public art feature will be implemented in forthcoming months. In
addition, further complementary measures have taken place including a new
crossing facility adjacent to the forecourt, footway enhancements, perch
benches, cycle parking and raised entry treatments.
Phase 4 of the scheme, relating to improvement works at the Alexandra Road
junction, is substantially complete and the new signal arrangements began
operating on 9 September. The new diagonal crossing facility at the junction will
be introduced in forthcoming months.
Phase 5 (Hartfield Road junction/ Centre Court/Old Town Hall) to commence in
early autumn with scheme completion of Spring 2012.
Strategic Corridor Mitcham update: Traffic & Highways and Future Merton officers
are working collaboratively on developing a programme of public realm
improvements in Mitcham that will take into account the various funding streams
in the area, including the LIP money and Section 106 developer contributions.
The improvements will be designed to address specific issues associated with
the quality and function of the public realm, whilst complementing future
objectives associated with town centre regeneration and gyratory removal.
32
1.2.5 “Replacement of Fleet Vehicles” and “Replace Large Waste
Collection Vehicles”
Revised
2011/12 Budget
£000s
Budget to Date
£000s
Actual to Date
£000s
Variance to
date
£000s
Managers Year
End Forecast
£000s
4,177
2,012
1,560
(452)
3,308
Some savings have been made in the vehicles’ procurement.
Since the introduction of the authority’s policy of funding vehicle
purchases through prudential borrowing rather than leasing, these have
become major capital schemes in the programme. Both vehicle budgets
relate mainly to vehicles for Waste Services, either through the
requirements of the London Emission Zone or the authority’s waste
collection strategy.
As previously reported, the ordering of the Food Waste Collection
Vehicles (approximately £250K) is on hold pending a Cabinet decision.
Consideration is still pending.
All of the large Refuse Collection Vehicles have been delivered and are
operational.
33
34
35
21,366
-19,948
39,822
Reprofiling –see Appendix 3c
Capital Programme 2011/12 (REVISED)
20,593
-1,376
60,415
-21,324
178
178
S106 - Various Leisure schemes
REPROFILING
425
1,414
79,722
Total
425
NEW FUNDING UNDER £500,000
1,414
NEW FUNDING OVER £500,000
58,356
Funded by Grant
S106 - Affordable Housing (Haslemere Avenue)
Redundancy Payments
Capital Programme 2011/12 (as at 19/09/2011)
Funded by
Borrowing
CAPITAL PROGRAMME 2011/12:
CHANGES SINCE CABINET 19/09/2011
Affordable housing funding
Various new S106 bids approved (Leisure
Services & Parks)
Comment
APPENDIX 3a
36
APPENDIX 3b
CAPITAL VIREMENTS
2011/12
Budget
before
Reprofiling
£000s
Virements
£000s
Revised
2011/12
Budget
£000s
Business Improvement
Transformation (IT) - Unallocated
PCIDSS
Replacement parking system
Improve PROACTIS
MIS Reporting
2,289
0
0
0
0
-237
60
62
70
45
2,052
60
62
70
45
TOTAL
2,289
0
2,289
2011/12
Budget
before
Reprofiling
£000s
Virements
£000s
Revised
2011/12
Budget
£000s
Schools Modernisation & Access Initiative
Stanford roofing & tarmac
Modernisation
St Thomas of Canterbury expansion
800
18
87
13
18
-18
-10
10
818
0
77
23
TOTAL
918
0
918
2011/12
Budget
before
Reprofiling
£000s
Virements
£000s
Revised
2011/12
Budget
£000s
Leisure Services Condition of Parks,
Open Spaces & Buildings
Haydons Road
817
5
-12
12
805
17
TOTAL
822
0
822
Corporate Services
Children Schools and Families
Environment and Regeneration
37
APPENDIX 3c
PROPOSED REPROFILING 2011/12
All Departments
Corporate Services
Children, Schools and Families
Environment and Regeneration
Community and Housing
TOTAL
Corporate Services
Current 2011/12
Budget
(Assuming
Revised 2011/12
virements Reprofiling Budget (after
reprofiling
agreed) changes
£000s
£000s
£000s
11,999
-2,785
9,214
31,365
-5,403
25,962
35,385
-13,023
22,362
2,990
-113
2,877
81,739
-21,324
60,415
Current 2011/12
Budget
(Assuming
Revised 2011/12
virements Reprofiling Budget (after
reprofiling
agreed) changes
£000s
£000s
£000s
Scheme Description
Infrastructure&Transactions
IT Equipment
IT Strategy - I&T
Transformation (IT) - I&T
Transformation (IT) - close
IT Strategy - close
Replace Providerlink / Homecare
Rostering / Scheduling
988
330
650
2
31
-280
-49
-130
-2
-4
708
281
520
0
27
139
-139
0
Business Improvement
CRM / Self Service
Document Management - Contractual
e-procurement
IT Strategy - BI
Transformation (IT) - Unallocated
190
210
165
126
2,052
-30
-140
-154
-94
-1,542
160
70
12
31
510
FM Capital Works
Civic Centre refurbishment
FM Capital Works - Facilities
866
1,182
-49
-172
816
1,010
Reprofiled Schemes
6,930
-2,785
4,145
Other Schemes
5,069
0
5,069
Revised Budget
11,999
-2,785
9,214
38
Children, Schools and Families
Current
2011/12
Budget
(Assuming
virements
agreed)
Reprofiling Revised 2011/12
changes
Budget
£000s
£000s
£000s
102
1,835
144
3,470
4,150
13
198
-99
-44
-1,025
-150
10
300
1,736
100
2,445
4,000
23
6,510
1,040
452
2,064
77
24
999
150
59
31
11
6
37
6
38
5
0
81
39
6
2
5
3
87
-1,170
-1,040
-11
-1,264
-20
10
10
536
-59
-14
-10
-6
-26
-4
-36
-5
2
-79
-38
-6
-2
-5
-3
-77
5,340
0
442
800
57
34
1,009
686
0
17
1
1
10
2
2
0
2
2
2
0
0
0
0
10
1,116
1,315
34
0
63
222
40
255
-5
-12
50
85
-22
-122
-20
-149
1,111
1,303
84
85
41
100
20
106
Scheme Description
Aragon Expansion
Benedict Expansion
Cranmer Expansion
Hollymount Permanent expansion
Joseph Hood Permanent expansion
St Thomas of Canterbury expansion
Pupil Growth - Additional Expansion
(Unallocated)
Temp classroom for 5 schools
St Ann's Primary Phase
Garden PCP
Links PCP
St Mark's Primary PCP
SS Peter & Paul PCP
William Morris PCP
West Wimbledon SEN project p2
Bond electrc wrk/asbstos rmovl
Gorringe Park repointing
Hatfeild playground works
Hillcross boiler renewal
Lonesome heating & playground
Merton Abbey rewiring
Pelham rewiring
West Wimbledon repointing
Cricket Green fascia board
Melrose pitched roof renewal
Condition surveys
Benedict
Haslemere
Melrose
Modernisation
St Ann's new build (plus new targeted
capital)
Wimbledon Chase Expansion
Holy Trinity Expansion
Bond PCP
Poplar PCP
New Pupil Places - Garfield
Extended schools
Intergenerational Centre
39
Children, Schools and Families
CONTINUED
Current
2011/12
Budget
(Assuming
virements
agreed)
Reprofiling Revised 2011/12
changes
Budget
£000s
£000s
£000s
Adventure Playground
31
-13
18
OLM Additional Software Licences
60
-60
0
S106 Aragon School gates
1
-1
0
St John Fisher Governor's 10%
1
-1
0
School Meals Kitchens
311
-8
303
SEN - Melrose
Childrens Centres
Primary school autism unit
Youth & Community centres reprovision
Modernisation - Other
Primary Capital Programme
23
188
470
110
42
130
-23
-171
-380
-30
-42
-50
0
17
90
80
0
80
25,858
-5,403
20,455
Other Schemes
5,507
0
5,507
Revised Budget
31,365
-5,403
25,962
Scheme Description
Reprofiled Schemes
40
Current 2011/12
Budget (Assuming
virements agreed)
£000s
Environment and Regeneration
Reprofiling
Revised
changes 2011/12 Budget
£000s
£000s
Scheme Description
Earmarked Schemes - Transport for London
Leisure Services Condition of Parks, Open
Spaces & Buildings
4,972
-1,376
3,596
805
-93
712
298
-53
245
60
-60
0
1,218
1,501
-400
-283
818
1,218
400
301
300
60
-400
-46
-100
-40
0
255
200
20
1,000
-1,000
Leisure Facilities and Support Services
Heritage/Culture
300
-300
0
0
0
0
On and Off Street Parking
Improved parking for shop parades (dropped
kerbs, machines, etc)
Parking
200
257
-200
-15
0
242
5
-5
0
323
-200
123
500
1,377
-500
-1,133
0
244
CCTV and Anti-Social Behaviour (ASB)
CCTV
Mobile speed cameras
Environmental Health
Disabled Facilities Grant
Private Sector Housing Programme
Greenspaces
Bank reinstatement at Havelock Allotments
New pavilion at Abbey Recreation Ground
Parks Investment
Wimbledon Park drainage improvements
Leisure Centres
Morden Pool Park and Leisure Centre
Investment
Property Management and Review
Minor Land Purchases (Rookwood Avenue)
Regeneration Partnerships
Investment In Deprived Areas - East Merton.
Investment in industrial estates to create hightech industrial park for key sectors
Town Centre Improvements
41
Current 2011/12
Budget (Assuming
virements agreed)
£000s
Environment and Regeneration
CONTINUED
Reprofiling
Revised
changes 2011/12 Budget
£000s
£000s
Scheme Description
Street Scene
Street Scene Improvement Programme
Street tree programme (25 year programme)
3,237
256
-2,294
-50
943
206
273
412
-273
-227
0
185
1,200
16
-435
-16
765
0
2,500
-2,500
0
500
-500
0
2,977
40
-434
-15
2,543
25
50
-25
25
110
-50
60
25,449
-13,023
12,426
Other Schemes
9,936
0
9,936
Revised Budget
35,385
-13,023
22,362
Traffic and Parking Management
Traffic Lights
Wimbledon Area Traffic Study
Transport and Plant
Replacement of Fleet Vehicles
Portacabin Accomm Garth Road
Transportation enhancements in Wimbledon,
Morden and Mitcham town centres
Waste Operations
Extension of kitchen waste collection to entire
borough
Waste Phase B requirements - Replace Large
Waste Collection Vehicles and Purchases
Waste Services
Other
Completion of the mobile working initiative
Demolition and rebuild of changing rooms at
Morden Park
Reprofiled Schemes
42
Community and Housing
Current 2011/12
Revised
Budget
(Assuming
2011/12
virements Reprofiling Budget (after
reprofiling
agreed) changes
£000s
£000s
£000s
Scheme Description
Day Centre Kitchen/ Toilet/ IT Upgrades
Regeneration
110
3
-110
-3
0
0
Reprofiled Schemes
113
-113
0
Other Schemes
2,877
0
2,877
Revised Budget
2,990
-113
2,877
43
APPENDIX 3d
CAPITAL EXPENDITURE 2011/12
SUMMARY OF OVERALL POSITION AS AT REPORTING PERIOD 5
CS
CSF
E&R
C&H
Revised
2011/12 Budget
£000s
9,214
25,962
22,362
2,877
Budget to
Date
£000s
1,704
6,072
7,594
293
Total
60,415
15,663
Actual to Variance to Dept's Year
Date
date End Forecast
£000s
£000s
£000s
1,704
0
9,214
6,072
0
25,962
7,594
0
22,362
293
0
2,877
15,663
44
0
60,415
Actual Spend
to date as a Forecast
% of Budget year end
to date
variance
£000s
100%
0
100%
0
100%
0
100%
0
100%
0
PI Code & Description
CRP 19 - % of outstanding
sundry debt (excluding HB,
local taxation and parking)
over 39 days old.
Dept
CS
CRP 07/LCS 21 - Length of
service of agency staff- % of
all agency staff with service
over 12 months
CRP 08 - Number of invoices
below £100 as a % of the
total number of invoices
CS
CS
45
26.17
30.81
1.08
July YTD
26.68
34.77
0.96
August
YTD
15
20
0.9
August
Target
15
20
0.9
Annual
Target
Low
Low
Low
Polarity
Progress
Corporate Indicators - August 2011 performance
Responsible officer for this indicator still needs to be
determined in order to drive this issue within the
organisation
As a part of the new controls being introduced to
address the Agency Workers Directive an analysis
is being undertaken of how many agency workers
are filling permanent vacancies, with a view to
converting agency staff to permanent staff. This
process will reduce the number of Agency Workers
with service over 12 months
This is a new indicator and there has been no
previous trend to help set the current target which
may prove to be unrealistic. We will continue to
monitor and apply the following actions to achieve
the target. Actions 1. Target largest debts without
any recovery action. 2. Ensuring debts are
progressed through the process in a timely manner.
3. Monitoring performance of external debt
collection agencies. 4. Progressing uncollectable
debt through for write off. 5. Targeting debts over
£50,000 before they become 39 days old
Management Action
Appendix 4
30.66
8.38
75
CRP 09 - % of invoices
requiring avoidable trouble
shooting
CRP 10 - % Staff leaving the
authority with less than 2
years service
CRP 14 - % of ombudsman
complaints answered in 28
days
CS
CS
83.33
10.16
31.88
100
4.19
25
100
10
25
High
Low
Low
Corporate Indicators - August 2011 performance
CS
46
The complaints process is being reviewed to ensure
that information required to answer LGO enquiries is
held by the complaints team as a result of the
Stage 2 investigation.
HR will explore ways of retaining talent in the
organisation through the introduction of Bringing on
Talent, Mentoring and the Merton Deal.
Increase is mainly due to over 280 invoices that 1
supplier had sent in that related back as far as 2008
which all where processed as troubleshooting. A
Proactis global email also to be sent and Business
Partners will remind DMTs of the importance of
following agreed procedures.
Appendix 4
CS
CS
CS
CS
47
CRP 13 - % of Positive and
Neutral Coverage Tone
CRP 01 - % of black and
ethnic minority employees
CRP 05 - % of agency staff
as a proportion of the
workforce
CRP 16 - The level of CO2
emissions from the council's
main operational buildings
(tonnes)
90.06
6.35
18.71
494.2
89.61
5.94
18.91
614.59
85
6
19.34
559
85
6
22
1500
High
Low
High
Low
Corporate Indicators - August 2011 performance
Positive/neutral coverage reduced by 1%. At
89.61% this is still above target.
HR will continue to monitor EIAs to ensure
workforce is representative.
The target for the reduction of CO2 emissions from
the Council’s main operational buildings for
2011/2012 was set on the basis of the savings that
would be achieved through the operation of the new
combined heat and power unit (CHP) that was being
installed at the Civic Centre.
The project was scheduled for completion at the end
of June 2011 but unfortunately some technical
issues and problems with the delivery of some
specialist equipment that forms a vital part of the
overall installation has meant that the completion of
the project has been delayed, which has had a
knock on affect of on our ability to meet our CO2
reduction target.
The contractor is working hard to complete the
project and commission the system, and it is
anticipated that it should be fully operational by the
end of October at which point the current increase in
the gap between the CO2 reduction target and the
actual CO2 output will begin to reduce.
The delay in the completion of the project has
resulted in a breach of contract and damages of
approximately £1000 per week are being deducted
from the contractors account, this is a significant
inducement for them to complete the project as
quickly as possible.
Appendix 4
3.75
33.93
3274
CRP 02 - % of disabled
employees
CRP 06 - % of vacant posts
being covered by agency staff
(reported monthly in arrears)
CRP 15 - Reduce the number
of cheques issued
CS
CS
CS
2.49
DNR
Quarterly
CRP 04 - Average number of
working days lost to sickness
CRP 11 - Amount of
budgeted efficiency savings
achieved
CRP 12 - Amount of savings
(cashable and non
cashable)delivered from Lean
Projects.
CS
CS
CS
0
CRP 17 - Total capital
receipts received by the
council
CS
39.33
CRP 18/LCS 29 - % of
Council Tax collected
DNR
DNR
DNR
3843
30.43
3.8
140000
48.1
42500
(Q1)
2455000
3.35
5770
50
2.5
125000
48
170000
589200
0
8
13856
50
6
100000
0
96.5
High
High
Low
Low
Low
High
High
High
DNR
DNR
DNR
Corporate Indicators - August 2011 performance
CS
48
Figures are currently being collated and will be
reported at the end of Q2
This is monitored as a separate section in the joint
report to Cabinet
The deadline for this indicator was missed but the
outturn for August which has since been reported is
3.2 which means progress is Green
Introduce reasonable adjustment guidelines in
October to ensure checks and adjusts are in place.
Appendix 4
- Signifies that data was not received by deadline
- Signifies not measured this period
DNR
NMTP
- Current YTD performance constant compared with last months YTD performance
- Current YTD performance declined compared with last months YTD performance
- Current YTD performance improved compared with last months YTD performance
Progress: Progress arrows have been generated by comparing last months YTD performance against target with this monthsYTD performance against target
KEY:
49
Appendix 5
The following charts show the forecast year end variance by department with
a comparison for 2010/11:
Corporate Services
3,500
3,000
2,500
£'000
2,000
10/11 Variance
1,500
11/12 Variance
1,000
500
0
(500)
(1,000)
(1,500)
March
February
January
December
November
October
September
August
July
June
May
Children, Schools and Families
2,000
1,500
£'000
1,000
10/11 Variance
11/12 Variance
500
0
March
February
January
December
50
November
October
September
August
July
June
May
(500)
Appendix 5
Adult Social Care
0
(500)
£'000
(1,000)
10/11 Variance
(1,500)
11/12 Variance
(2,000)
(2,500)
(3,000)
March
February
January
December
November
October
September
August
July
June
May
Libraries & Adult Education
120
100
£'000
80
10/11 Variance
11/12 Variance
60
40
20
0
March
February
January
December
November
October
September
August
July
June
May
51
Housing General Fund
0
(50)
£'000
(100)
10/11 Variance
11/12 Variance
(150)
(200)
(250)
(300)
March
February
January
December
November
October
September
August
July
June
May
Environment and Regeneration
2,000
1,500
10/11 Variance
1,000
£'000
11/12 Variance
500
0
March
February
January
52
December
(1,000)
November
October
September
August
July
June
May
(500)
CORPORATE SERVICES DEPARTMENT SAVINGS
Ref
Description of Saving
CS1
ABG Reduction
Reduction in Preventing Violent Extremism (PVE) budgets
CS2
Corporate Services & Chief Executives Staffing
Restructure of Support Services
CS3
Corporate Services & Chief Executives Staffing
Customer Services Restructure
CS4
CHAS Contractors Health and Safety service.
CHAS is a national service operated by Merton to provide
Health and Safety expertise to a wide range of customers.
Anticipated additional income based on current level of
demand for the service, which is anticipated ton continue in
2011/12.
Review of HR business partners function shared with
Sutton - Merton contribution to be £50K through reduced
staffing
Reduction in Business Partner staffing - exact post/s yet to
be identified and subject to consultation
Review of procurement of occupational and employee
assistance contracts to achieve improved value through
retendering
Retender occupational health and employees assistance
contracts
Review of learning development and diversity function
APPENDIX 6
2011/12
2011/12
Savings
Type of
Savings
Achieved
Saving Requirement to Date
(see key)
£000
£000
RAG
SNS2
CS5
CS6
CS7
CS8
Aim to co-locate the team and reduce staffing level
Corporate
Reduced Agency margins following renegotiation of Merton's
contract with Hays
66
28
G
Comments
Saving has been incorporated in base budget
which is currently not expected to overspend,
therefore a pro rata saving for the 1st Qtr is
considered achieved
SS2
2166
0
R
SS2
463
0
R
Due to the late implementation of the
restructure there will be a delay in achieving
a full year's savings
Due to the late implementation of the
restructure there will be a delay in achieving
a full year's savings
G
Demand was below expected levels for the
first few periods of the financial year.
However demand has increased in the past
two periods and this saving is currently
expected to be achieved.
SI2
SS2
SP1
SS1
700
50
30
20
292
G
This saving has been met from the retender
of the occupational health and employee
assistance contract (CS6 below).
G
This is being overachieved and used for CS5
above
G
Saving has been incorporated in base budget
which is currently not expected to overspend,
therefore a pro rata saving for the 1st Qtr is
considered achieved
21
13
8
G
SP1
Total Corporate Services & Chief Executive's
Savings 2011-2012
53
152
63
3,647
425
The agency contract with Manpower
commenced in December 2010. This saving
will be monitored and the impact of the
agency worker directive (effective from
1/10/2011) will need to be reflected.
CHILDREN, SCHOOLS AND FAMILIES DEPARTMENT
2011/12
Savings
2011/12
Achieved
Type of
Savings
to Date
Saving Requirement
(Aug)
(see key)
£000
£000
Ref
Description of Saving
CSF1 Area Based Grant
Education Health Partnerships
SS2
43
18
G
CSF2 Area Based Grant
Extended Schools Start Up
SS2
50
21
G
SS2
50
21
G
SS2
29
12
G
200
83
G
CSF3 Area Based Grant
Secondary Behaviour and Attendance - Central Coordination
CSF4 Area Based Grant
School Travel Advisors and Sustainable Travel
CSF5 Area Based Grant
Carers Grant/Childrens Fund (Early Intervention and
Prevention Commissioning)
SNS2
RAG
CSF6 Area Based Grant
Child & Adolescent Mental Health Services
SS2
40
17
G
CSF7 Area Based Grant
Child Death Reviews
SNS2
10
4
A
SNS2
200
83
R
CSF8 Area Based Grant
Connexions
CSF9 Area Based Grant
Positive Activities for Young People
SS2/ SNS2
20
8
G
CSF10 Area Based Grant
Young Peoples Substance Misuse
SNS2
20
8
G
CSF11 Area Based Grant
Teenage Pregnancy
SNS2
27
11
G
CSF12 Area Based Grant
Transfer of Learning and Skills Council Functions
SNS1
100
42
G
SS1
54
23
G
CSF14 Commissioning, Strategy and Performance
Remove One Admissions Post
SS1
38
16
G
CSF15 School Standards and Quality
Cease Match Funding for Playing for Success Initiative
SNS2
35
15
A
CSF16 Community Support and Social Care
Delete 2fte Family Support Co-ordinators
SS1
70
29
G
CSF17 Youth and Inclusion
Educational Welfare Team
SS2
30
13
G
CSF18 Youth and Inclusion
Restructure Youth Provision
SNS2
110
46
G
CSF19 Early Years
Reduction of training budget
SNS2
50
21
G
CSF20 Cross Cutting
Reduce Young People's Participation Budget
SS2
40
17
A
CSF13 Commissioning, Strategy and Performance
Restructure the Research and Information Service and
reduce by 1 post
CSF21 Community Support and Social Care
54
CHILDREN, SCHOOLS AND FAMILIES DEPARTMENT
Ref
Description of Saving
Delete one admin post.
2011/12
Savings
2011/12
Achieved
Type of
Savings
to Date
Saving Requirement
(Aug)
(see key)
£000
£000
SS1
8
20
RAG
G
CSF22 Community Support and Social Care
Reduction in daycare budget.
SNS2
30
13
G
CSF23 Community Support and Social Care
Reduce Section 17 budgets across social care teams.
SNS2
15
6
G
CSF24 Area Based Grant Savings
Primary/Secondary Strategy - Central Co-ordination
SS2
120
50
G
SNS1
50
21
A
SNS1/
SNS2
100
42
G
SS2
40
17
G
SS1/ SNS1
70
29
A
SS2
70
29
A
CSF30 Community Support and Social Care
Delete 1 Assistant Team Manager post in the Fostering
Team
SS2
50
21
G
CSF31 Community Support and Social Care
Delete 0.5 wte Assistant Team Manager post in Family
Support Team.
SS2
22
9
G
SS2
25
10
G
CSF33 Youth and Inclusion
Reduce Case Manager/ISSP Commissioning Arrangements SS2
in Youth Opportunities Team (YOT)
30
13
G
CSF25 Special Educational Needs
Service efficiencies and rationalisation of budgets
CSF26 Special Educational Needs
Reduce Budget for SEN Transport
CSF27 Schools Standards and Quality
Merton's LgFL Annual Revenue Contribution
CSF28 Integrated Services
Integrated Services Efficiencies
CSF29 Strategy and Development
Restructure
CSF32 Community Support and Social Care
Delete one Contact Supervisor post.
CSF34 Cross Cutting
Access to Resources (ART) Savings in Placement Costs
SP1
200
83
G
CSF35 Cross Cutting
Reviewing of Training and Supplies Budgets
SS2
30
13
G
CSF36 Education
Merton's LgFL Annual Revenue Contribution
SS2
57
24
G
CSF37 Cross Cutting
To be Identified after Grant Fall out Position Established
SNS1
84
35
G
CSF38 School Standards and Quality
Reducing of financial support to Merton Music Foundation
SNS2
26
11
G
2,255
942
Total Children, Schools & Families Savings 2010-2011
55
ENVIRONMENT & REGENERATION SAVINGS
Ref
ER01
2011/12
2011/12 Savings
Type of Savings Achieved
Saving Requirem to Date
£000
(see key) ent £000
Description of Saving
SI2 & SS1
ER02
120
50
G
164
68
G
320
133
A
27
11
G
SP1
160
67
G
SNS2
15
6
G
SI1
70
29
G
SI1
35
15
G
Environmental Health, Trading Standards and
Licensing
i)Dispense with budget and allocated for "bought in
inspections"- £25k ii) Surrender unused financial
allocations-£33k iii) Capitalisation of salary
expenditure on Disabled Facility Grant and Empty
Property Grant provision-£58k iv) Reconfiguration
of structures within Licensing and Env.Health
Housing £48k.
SS1 &
SNS1
ER03
Parking Services
Increase in various parking charges:
i) Removal of 20 minute free parking £60,000 (5 min
= 15k, 10 min = 30k, 15 min = 45k)
ii) Mobile CCTV £87,000
iii) Trade Permit £30,000
iv) New Person set up charge £65,000
v) Business Permits £108,000
ER04
Business Performance
Replacement of one full time with a part-time post
for - Principal Development Officer (current working
as a part-time post) / charging for naming and
numbering of new developments
SI1 & SS2
Leisure Centres
Reduction in payment to contractor new contract
sets a reduced annual leisure management contract
sum
SI1
ER05
RAG
Development Control
i) Expansion of existing pre-application charging
system to include charge for advice given to
household development - e.g. extensions, dormer
roofs etc-£10K ii) Merging of Building Control and
Development Control Teams involving deletion of 1
Section manager, one deputy team leader and one
surveyor post-£110k
ER06
Greenspaces
A phased reduction in the grant to Deen City Farm of
fifteen thousand per year for the next three years.
ER08
Greenspaces
Increase in cemeteries burial fees of 20% that is
linked to the fees charged by the Merton and Sutton
Joint Cemetery Board
ER09
Greenspaces
Increased fees & charges of 5% for pitch hire,
services etc.
56
ENVIRONMENT & REGENERATION SAVINGS
Ref
ER10
2011/12
2011/12 Savings
Type of Savings Achieved
Saving Requirem to Date
£000
(see key) ent £000
Description of Saving
RAG
Property Management and Review
Invest to Save. Regearing leases within non
operational estate.
ER11
Transport Planning
Three savings are presented from the Transport
Planning function - 1. Reduction in Consultancy
Budget 2. Deletion of four school crossing patrol
posts and 3. Saving from Safety Education Team
salaries budget through the use of external funds
ER12
Spatial Planning
Replacing a vacant planning policy officer post with
a short-term contract, reducing the length of the post
by one quarter overall.
ER13
Physical Regeneration
Utilising external funding (from the remaining
planning delivery grant) from a unfilled Urban Design
Post to fund existing team members.
ER14
Economic Development
Substitution of LABGI and/or S106 funding for
existing Principal Economic Development Officer
post
ER15
Vestry Hall: Additional Income
SI2
100
0
R
SS1 &
SS2
47
15
G
SS2
10
4
G
SG1
22
9
G
SG1
40
17
G
SI2
20
8
G
SNS2
157
65
G
SNS2
113
47
G
Vestry Hall was granted the necessary planning
consents in 2009/10 for additional uses that have
increased income generation opportunities.
ER16
Traffic and Highways - Carriageway Patching
Reduction in available revenue budget to undertake
carriageway patching.
ER17
Traffic and Highways - Footway Maintenance
Reduction in overall revenue budget available for
footway maintenance.
ER18
Traffic and Highways
57
ENVIRONMENT & REGENERATION SAVINGS
Ref
2011/12
2011/12 Savings
Type of Savings Achieved
Saving Requirem to Date
£000
(see key) ent £000
Description of Saving
RAG
Review of the Traffic and Highway Structure with the
deletion of one Highway Safety Inspector and two
technical support officers (Admin)
ER19
SS1
75
31
G
SNS2
40
17
G
SNS2
51
21
G
SI1
80
33
G
SS1
285
119
G
SS1 SNS1
96
40
G
SS2
227
95
G
SS2
47
20
G
SS2
36
15
G
SP1
175
73
G
SS2
105
44
G
Traffic and Highways - Walk Sheets
Restrict Highway Safety Inspections response to
2hrs and 20 days only. Non replacement of
posts/bollards
ER20
Traffic and Highways
Removal of Anti-Skid budget and a reduction in
budget available for maintenance of carriageway
markings (white and yellow lines) across the
Borough (13K). Removal of Hanging Baskets budget
(13k). Reduction in overall Street Lighting Contract
budget (8K). Removal of outstanding Traffic signal
Budget (6K). Reduction in equipment purchase
budget (6K). Reduction in Misc Hired Services
Budget (5k)
ER21
Refuse/Recycling Collection - Commercial
Increase charges
ER22
ER23
Street Cleansing
Service Efficiencies and Reductions
Waste Transfer Station, Amenity Way
Service efficiency
ER24
Garden Waste Collection
Service reduction
ER25
Community Waste Partnerships
ER26
ER27
Service reduction
Enforcement & Inspection
Service reduction
Household Reuse & Recycling Centres
Close 36 Weir Road HRRC (currently operates FriMon inclusive at present)
ER28
Safer Merton
Deletion of three posts in Safer Merton
ER29
Parking Services
58
ENVIRONMENT & REGENERATION SAVINGS
Ref
2011/12
2011/12 Savings
Type of Savings Achieved
Saving Requirem to Date
£000
(see key) ent £000
Description of Saving
Increase in various parking charges and changes to
enforcement policy and practice in respect of
observation times. i) reduction of existing 5 minute
observation to 2 mins £19k. ii) WTC £60k iii)
Increase on street pay and display tariffs by 10%
£193k iv) review of existing tariff charging structures
£138k.
ER30
Building Control
Commercialise Building Control by offering service
to other Councils/Stakeholders
ER31
Greenspaces
RAG
SI1
410
171
A
SI2
80
33
G
SS2
350
146
G
SS1
80
33
G
SS1
150
63
G
SNS1
250
104
G
110
46
G
SS2
100
42
G
SS1
100
42
G
SNS1
100
42
G
SI2
130
54
A
Parks grounds service operational restructure
including a reduction in staffing establishment,
realignment of duties and reduction in the use of
agency staff and overtime. Recovery of all costs on
lettings.
ER32
Greenspaces
Cemeteries service restructure
ER33
Spatial Planning, Transport Planning and
Physical Regeneration
From transformation of three teams into 1
ER34
Waste Disposal
Savings in Landfill Costs
ER35
Commercial Waste
Increase in volume from marketing of service.
ER36
Traffic and Highways Services
ER33a
Staffing Reductions
Spatial Planning, Transport Planning and
Physical Regeneration
SI2
From transformation of three teams into One (Note:
Additional saving to £150k already agreed ER33)
ER34a
Waste Disposal
Savings in Landfill Costs (Note: Additional saving
to £250k already agreed - ER34)
ER37
Parking Services
Additional enforcement in Bus Lanes - various
ER38
Physical Regeneration
59
ENVIRONMENT & REGENERATION SAVINGS
Ref
2011/12
2011/12 Savings
Type of Savings Achieved
Saving Requirem to Date
£000
(see key) ent £000
Description of Saving
RAG
Reduction in supplies and services budgets (funded
through ABG in 2010-11).
ER39
Parking Services
Review of existing charges for all Council managed
car parks
ER07a
Greenspaces
The deletion of the post of Design and Delivery
manager.
SNS2
22
9
G
SI1
120
50
A
43
4,682
18
1,905
G
SS1
Total Environment and Regeneration Savings 2011-201
60
COMMUNITY AND HOUSING DEPARTMENT
Ref
Description of Saving
CC01 ABG Reduction
Reduction in Supporting People supplies and services
budgets.
CC02 Access & Assessments and Commissioning
Propose an inflation increase of 0% on all providers.
2011/12
Savings
2011/12
Savings
Type of
Achieved to
Saving Requirement Date (Aug)
£000
(see key)
£000
SP1
RAG
10
3
G
638
266
G
SP1
387
161
G
SP1
150
63
G
SP1
100
42
G
SP1
100
42
G
SP1
80
33
G
SP1
20
8
G
SP1
30
13
G
SI1
25
10
G
SNS1
240
100
G
SS1
126
53
G
SI1
27
11
G
SI1
58
24
G
SP1
16
7
G
SP1
3
3
G
SP1
12
5
G
SP1
48
20
G
SP1
22
9
G
SP1
5
2
G
SNS1
25
10
G
SNS2
18
8
G
SNS2
380
380
G
SP1
96
40
G
SP1
CC03 Access & Assessments and Commissioning
Negotiate a single hourly rate for homecare
CC04 Access & Assessments and Commissioning
Use Care Funding Calculator to reduce placement costs.
CC05 Access & Assessments and Commissioning
Employ Older People broker to reduce spot placement cost.
CC06 Access & Assessments and Commissioning
Reduction in Older People block contracts
CC07 Access & Assessments and Commissioning
Moving equipment provision to the Transforming
Community Equipment Service model.
CC08 Access & Assessments and Commissioning
Non-contractual Day Care provision
CC09 Access & Assessments and Commissioning
Meals on Wheels contract reduction.
CC10 Direct Provision
MASCOT charges
CC11 Direct Provision
Reduction in transport cost
CC12 Direct Provision
Staff savings
CC13 All sections
Disability Related Expenditure- changes to Fairer Charging
Policy introducing a standard disregard of £10 and setting a
maximum attendance allowance of £47.80.
CC14 All sections
Changing the maximum homecare charge from £395.30
per week to having no maximum limit.
CC15 Access & Assessments and Commissioning
Re-negotiate the hourly rate as allowed for under the
Crossroads contract.
CC16 Access & Assessments and Commissioning
Contract for LD Advocacy Service (including: DOLS &
IMCA)
CC17 Access & Assessments and Commissioning
Provision of care at Autumn Close for LD clients (deregistering to a Supported Living Scheme)
CC18 Access & Assessments and Commissioning
Contract for the provision of BME & Adult Mental Health
Day Services
CC19 Access & Assessments and Commissioning
Extra Care Housing Supported Housing Scheme
CC20 Access & Assessments and Commissioning
Respite Provision at Trellis House
CC21 Direct Provision
Goods and services
CC22 Direct Provision
Closure of Taylor Road building
CC23
Give up growth agreed in previous year
CC24 ABG Reduction
Reduction in Supporting People contracts to account for
reduction in grant.
61
COMMUNITY AND HOUSING DEPARTMENT
Ref
Description of Saving
CC25 Access & Assessments and Commissioning
Further reduction in Supporting People contracts.
2011/12
Savings
2011/12
Savings
Type of
Achieved to
Saving Requirement Date (Aug)
£000
(see key)
£000
RAG
SP1
100
42
G
SP1
390
163
G
SI1
12
5
G
SP1
20
8
G
SS1
200
83
G
SI1
100
42
G
SS1
150
63
G
PI1
100
42
G
SNS2
50
21
G
SP1
38
16
G
SI1
204
85
G
SI1
41
17
G
SI1
100
42
G
SP1
100
42
G
SI2
60
25
G
SS1
102
43
G
SS2
81
34
G
SS1
41
17
G
SG2
3
3
G
SG1
35
4,543
3
2,109
G
CC26 Access & Assessments and Commissioning
Reduction in grant to voluntary organisations.
CC27 Direct Provision
MASCOT charges
CC28 Access & Assessments and Commissioning
Review of No Recourse to Public Fund cases.
CC29 Access & Assessments
Reablement staffing restructure
CC30 Access & Assessments and Commissioning
Secure funding from the NHS to procure reablement
services.
CC31 Direct Provision
Staff restructure
CC32 Access & Assessments and Commissioning
All new placements for adults of working age (excluding
YPD & LD) to be placed through Brokerage team.
CC33 All
Reduction in training opportunities
CC34 Access & Assessments and Commissioning
Discontinue the advocacy service contract.
CC36 All sections
Increase fees to clients by 2%
CC37 All sections
Charging for both carers where two carers are required to
support a client at the same time.
CC38 All sections
Increase fees to clients
CC39 Access & Assessments and Commissioning
Propose an inflation increase of 0% on all providers.
CC40 Access & Assessments
Use of Telecare
LI01
Libraries & Heritage
Revised Library opening hours
LI03
Libraries & Heritage
Libraries management reduction
HO01 Housing
Reduction of staff
HO02 Housing
Deletion of voluntary grant to South London Somali
community organisation
HO03 Housing
Efficiency savings from homelessness grant 2011/12(
assumption is made here that existing grant levels will be
maintained
Total Community and Housing Savings 2011-2012
62
Appendix 7
Miscellaneous Debt Update August 2011
1.
PURPOSE OF REPORT AND EXECUTIVE SUMMARY
This report updates Cabinet on the latest position with regard to the
collection of miscellaneous debt; focusing on debt that is over one year
old and the action being taken (or required) to reduce the outstanding
arrears.
2.
LATEST ARREARS POSITION – MERTON’S AGED DEBTORS
REPORT
2.1
A breakdown of departmental net miscellaneous debt arrears, as at
31st August 2011, is shown in column F of Table 1 below.
Table 1 – Debtors aged balance – August 2011 – not including debt that
is less than 39 days old
Department a 39 days to 6 6 months
months b to 1 year c
£
Env &
Regeneration
Corporate
Services
Housing
Benefits
Children,
Schools &
Families
Community &
Housing
Chief
Executive’s
Total
£
1 to 2
years
d
£
Over 2 years
e
£
August
June 2011 Direction of
2011
arrears
travel
arrears f
£
£
266,797
98,118
41,987
13,989
420,891
416,903
↑
163,658
521
7,799
71,828
243,806
268,063
↓
738,030
431,943
466,449
852,590
2,489,012
2,312,385
↑
142,165
16,278
15,832
14,895
189,170
180,184
1,300,961
636,943
435,077
440,087
2,813,068
3,178,216
↓
0
3,900
↓
6,359,651
↓
2,611,611
1,183,803
967,144
1,393,389
6,155,947
Aug-10
4,391,540
834,083
782,719
1,332,022
7,340,364
Variance
August 10 to
August 11
-1,779,929
349,720
184,425
61,367
-1,184,417
2.2
↑
↓
Since the position was last reported in June 2011, the net current level
of arrears, i.e. invoices over 39 days old, has decreased by £203,704.
63
2.3
Table 2 below shows the total net level of arrears for the last five years
– not including debt that is less than 39 days old.
Table 2 – net miscellaneous debt July 2007 to August 2011 –
not including debt that is less than 39 days old
Department
August
2007
£
August
2008
£
August
2009
£
August
2010
£
August
2011
£
Env &
851,767 892,106 563,223 412,371 420,891
Regeneration
Corporate
87,375 157,587 154,682 175,504 243,806
Services
Housing
1,144,158 1,777,843 1,882,194 1,937,927 2,489,012
Benefits
Children,
286,166 152,011 156,559 347,863 189,170
Schools &
Families
Community & 2,874,961 3,050,863 2,530,602 4,448,916 2,813,068
Housing
Chief
1,154
28,946
10,503
17,781
0
Executive’s
Total
5,245,581 6,059,356 5,297,763 7,340,362 6,155,947
2.4 The figures in table 2 (above) show an increase in outstanding debt
since July 2010. The major areas of increase in debt is housing benefit
overpayments and Community and Housing. Housing benefit
overpayments have increased by £1.3 million over the 5 year period. It
should be noted that the amount of housing benefit paid out has also
increased over this period. In 2007/08 £55.1 million was paid out and in
2010/11 £77.4 million paid out. It is estimated that for 2011/12 this figure
will increase to in excess of £90 million.
2.5
3
3.1
The action being taken to recover these debts is outlined below.
THE PROCESS FOR COLLECTION OF MISCELLANEOUS DEBT
In considering the current levels of debt, it is important to outline the
general process Merton currently has in place to collect its arrears. In
general terms the process has 5 stages, as detailed below, although
processes employed vary by debt type. It is important to note that most
debtors can not pay their outstanding liabilities other than by payment
arrangements. Once a payment arrangement has been made it can not
be changed without the debtors consent.
64
Table 3 – the process for collecting debt
Stage 1
Invoice
issued to
debtor with
30 days
allowed for
payment.
Stage 2
After 30
days and
following two
requests for
payment, a
final warning
notice is
issued and
the case
passed to
the Debt
Recovery
team.
Stage 3
The debt and debtor is
evaluated to ensure the
most effective recovery
action is taken to
attempt recovery.
This will include
contacting debtors’
direct and collecting
payment or agreeing
repayment plans and
passing the debt to
collection agents to
collect on our behalf,
bankruptcy
proceedings,
attachment to benefit
etc.
Stage 4
If the debt remains
unpaid then County
Court action is taken
by the Debt Recovery
team’s solicitor who
administers this
process.
Stage 5
The final
stage is
consideration
of the debt
for write-off if
all other
attempts to
collect the
debt have
failed.
4
DEBT OVER ONE YEAR OLD
4.1
Debt over 1 year old has decreased by £83,963 since last reported at
the end of June 2011.
Table 4 – Debt over 1 year old compared to June 2011
Department
Env & Regeneration
Corporate Services Note 1
Housing Benefits
Childrens, Schools & Families
Community & Housing
Chief Executives
Total
June 2011
August 2011
74,860
90,798
1,280,404
31,701
966,733
0
2,444,496
55,976
79,627
1,319,039
30,727
875,164
0
2,360,533
Variance
-18,884
-11,171
38,635
-974
-91,569
0
-83,963
% Variance
-33.74
-14.03
2.93
-3.17
-10.46
0.00
-3.56
4.2
The majority of debt over 1 year old is for Community and Housing
debts and Housing Benefit overpayments.
4.3
There has been a reduction of £91,569 in the Community and Housing
debt. Of this debt over £350,000 have charges on the property
securing the debt or have had legal proceeding issued. Recovery
action has been taken on all the debt and monthly monitoring is in
place to measure progress.
65
4.4
Housing benefit overpayment debt continues to increase. The overall
debt position has increased by £298,042 since last reported in June.
The total outstanding housing benefit overpayments is £4,755,280, of
this £1,750,405 is being recovered from ongoing benefit through
current housing benefit payments. Almost £3.4 million is on a payment
arrangement or recovery from ongoing benefit.
4.5
It should be noted that the level of housing benefit overpayments
continues to increase due to an ongoing drive to identify fraud and
failure to declare change in claimant circumstances. In the five months
of the year there has been a 44% increase in the number of change in
circumstances processed compared to last year including over 2,000
targeted reviews of claims
4.6
The graph below shows breakdown of all housing benefit
overpayments by recovery action.
Graph 1 – Total Housing Benefit Debt by recovery action from March
2011
Housing Benefit Total Debt 2011/2012
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
£
2,500,000
2,000,000
1,500,000
1,000,000
25%
20%
500,000
0
17%
20%
22%
18%
1
2
3
4
5
6
Total
4,028,484
4,087,799
4,245,368
4,475,439
4,613,005
4,755,280
Debt in ASH + With Arrangement
2,739,901
2,844,782
3,047,255 3,084,169.66 3,201,668.34 3,386,515.81
Without Arrangement Invoices and Reminders
292,915
431984.89
482080.54 486,366.84 395,540.30 302,869.86
Without Arrangement Final and Enquiries
995,668
811,032
716033
7
904,902.00 1,015,796.00 845,893.90
220,000.00
On Hold Pending Appeals/Investigations
Months of the Year 2011/2012
66
8
9
10
11
12
4.7
Of the total debt outstanding shown in the graph 18% requires further
recovery action. This is the debt where effective recovery action can be
taken.
5.
COLLECTION RATES
5.1
Monthly monitoring of collection rates is undertaken and collection
performance based on period of debt is shown below.
Table 5 - Collection rates by period of debt as at 31 August
2011
Period of debt
Under 1 year
1 - 2 years
Over 2 years
Debt Raised
£ million
% Collected
%
40
48
242
89.4
98.9
99.6
5.2 Table 5 shows that the Council successfully collects the vast majority of
sundry debt raised, with relatively small percentage still not collected
after 2 years.
6.
PROVISION FOR BAD AND DOUBTFUL DEBTS
6.1 A provision has been made available for writing off bad and doubtful
debts. Clearly, every attempt is made to collect debts before write-off is
considered. The current level of provision is highlighted below.
6.2 The Council adheres to the requirements of the SORP when calculating
its provisions. Merton’s methodology is to provide for on the basis of the
collection rates for individual departmental debt, and the age of the debt.
A further review is undertaken to factor in any general economic
conditions.
6.3 Merton’s provision fully complies with CIPFA guidance and is considered
prudent. As at 31st March 2011 Merton’s Miscellaneous Debt Provision
was £2.164 million.
67
Provision for Bad and Doubtful Debts
Department
Env & Regeneration
Corporate Services
Children, Schools & Families
Community & Housing
Chief Executive’s
Total
6.4
7.
7.1
8.
Less than 1
year
£
103,273
32,158
29,496
501,400
19,746
686,073
Over 1 year
£
455,786
44,458
1,300
976,383
0
1,313,927
Total
provision
£
559,059
76,616
30,796
1,477,783
19,746
2,164,000
During the financial year 2010/11 the Authority wrote off £579,000 of bad debt
for items billed via the ASH Debtors System.
EXECUTIVE SUMMARY / CONCLUSION
Merton’s total level of miscellaneous debt arrears i.e. invoices over 39
days old, at 31st August 2011 is £6,155,947. The net level of arrears,
when the matter was last reported in June 2011 was £6,359,651.
TOTAL DEBT DUE TO MERTON
The total amount due to Merton as at 31st August 2011 is detailed in
table 6 below.
Table 6 – Total debt outstanding as at 31st August 2011
and compared with previous periods over the 18 months
Miscellanous
sundry debt
May-10
£
9,176,653
Sep-10
£
8,335,504
Jan-11
£
8,846,319
Jun-11
£
8,739,319
Aug-11
£
7,089,067
Note 1
HB debt in
Benefit system
1,444,674
1,604,037
1,635,802
1,939,891
2,191,970
343,000
342,000
296,000
276,735
274,759
1,048,533
1,015,423
986,060
1,111,416
1,135,542
5,849,739
4,793,390
4,116,420
5,230,560
4,825,425
3,095,164
2,720,825
2,221,937
2,599,591
2,841,460
20,957,763
18,811,179
19,897,512
18,358,223
Note 2
Housing Rent
Note 3
Parking
Services
Council Tax
Note 4
Business
Rates Note 5
Total
18,102,538
Note 1 This figure differs from the amount shown in Table 1 as it shows all debt,
including that which is less than 39 days old.
Note 2 This is the housing benefit debt within the benefits system
Note 3 This is former tenants rent arrears – leaseholder debts are included in
miscellaneous sundry debt
68
Note 4 Council tax debt does not include the current year council tax collection.
Note 5 Business rates debt does not include the current year business rates
collection
8.1
Detailed breakdowns of the Council Car Parking figures are shown in
Table 7 below.
Table 7 - Parking Aged Debtors Report
Balance Outstanding
09/09/11
Period Outstanding
Number of Cases
Outstanding
£
0 - 3 Months
356,847
4,357
3 - 6 Months
222,691
1,540
6 - 9 Months
134,580
934
9 - 12 Months
115,263
819
12 - 15 Months
126,746
859
Over 15 Months
179,415
1,246
1,135,543
9,755
Total
8.2
The outstanding parking debt will fluctuate on a month by month basis
depending on the volume of PCN’s issued and the success rate of
collection.
8.3
Generally the recovery strategy is to progress each case as quickly as
possible through the prescribed legal process. The sooner an unpaid
PCN is passed to the in-house bailiff team to collect the better the
prospect of collection. However, the time it can take to progress an
unpaid PCN through to Warrant stage can greatly vary depending on
the legal challenges a customer may make. These delays are caused
by external agencies and the Council cannot influence the timescales.
8.4
Once an unpaid PCN has been through the complete recovery process
and the in-house bailiff team have been unsuccessful the debt is
archived and is not included in the figures quoted in appendix A. This
does not mean that the debt is written off, the debt can be re-instated
and linked to other PCN’s for the same debtor at a later date. The
debts that are archived are those that are over 15 months old.
8.5
It should be noted that in approximately 30-40% of warrants passed to
the in-house bailiff team the registered owner of the vehicle is outside
of Merton and surrounding boroughs. There are a large number of
warrants where the registered addresses are across the country in
places such as Birmingham, Manchester etc. These debts are very
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hard to collect and the success rate on these cases is considerably
lower than for Warrants where the registered owner lives more locally.
8.6
The Parking Services Manager monitors performance on collection on
a monthly basis.
REPORT AUTHOR
− Name: David Keppler
− Tel: 020 8545 3727
− email: [email protected]
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