BCN CONSULTANCY (BUILDING CONTROL) UPDATE ON BUDGET AND BUSINESS PLAN

Transcription

1 AGENDA ITEM BCN CONSULTANCY (BUILDING CONTROL) UPDATE ON BUDGET AND BUSINESS PLAN MEETING: JOINT BOARD (Leaders of Bolsover District Council, Chesterfield Borough Council and North East Derbyshire District Council or their Deputies) DATE: 29 TH JULY 2008 REPORT BY: Mike Hayden (Head of Planning Services, Chesterfield Borough Council); David Eccles (Head of Regeneration, Bolsover District Council); Adrian Kirkham (Planning Services Manager (NEDDC). FOR PUBLICATION 1.0 PURPOSE OF REPORT 1.1 To update Joint Board on the financial position of BCN Consultancy (Building Control) and progress on the implementation of the Business Plan. 2.0 BACKGROUND 2.1 During its first year of operation, 2007/8, BCN recorded a budget deficit of 141,000 due to a significant reduction in income. At the Special meeting of Joint Board on 23 rd January 2008, approval was given to a budget for the consortium for 2008/9 and 2009/10, which included income targets to enable the deficit to be recovered over the next 2 financial years, to achieve a 3 year break even financial position. 2.2 A Business Plan was also agreed for BCN at the Joint Board meeting on 2 nd April 2008, incorporating measures for business development and income generation. It was agreed that the Client Officers Group monitor income against targets and progress on the implementation of the Business Plan and report back to the Joint Board. 1

2 3.0 SUMMARY Budget Position at end of 1 st quarter of 2008/9 3.1 A budget monitoring report for the first quarter of 2008/9 is attached at Appendix A. This shows two important trends: 1. Expenditure is roughly on target, with 222,954 spent against a profiled spend of 251,735 for the first 3 months. 2. Income remains approximately 23% below target with 125,006 received from deposits and inspection fees over the first 3 months, against a target of 162, Although the income remains below target, the cumulative position shown in the graph at Appendix B, shows that overall, income is growing month on month, such that the gap between the target to breakeven and the actual is narrowing month by month. The consortium has been able to secure new partners, including taking on the whole of the DCC Partnership work, such that partnership income is expected to be well above the target set. 3.3 However, it is recommended that Client Officers should continue to monitor the budget position monthly and report again to Joint Board during the autumn budget review process. Progress on implementation of Business Plan 3.4 The Business Plan set 3 main aims for the consortium: 1. To secure an increase in income in order to achieve a break even budget over the 3 year period 2007/8 to 2009/10; 2. To reduce the non-charge earning activity costs; 3. To expand the customer/client base of BCN. 3.5 Good progress has been made in implementing key actions in the Business Plan. Particular achievements are: 1. Securing the DCC Partnership work for the whole of the county. 2. Increasing the number of private sector partners to Undertaking commercial awareness training with all of the staff of the consortium to improve customer skills and develop a business culture. 4. Discussions are underway with IDOX/CAPS to create a single building control ICT system to store data and files across the 3 areas. A report on the feasibility and cost of the system will be brought back to Joint Board once investigations are complete. 2

3 3.6 Further work is being done on a costing system to better manage and charge time to jobs. The new web site is due to be launched during the summer and a formal launch event for potential partners and customers is being planned for September There is an ongoing need for corporate awareness amongst the three authorities to ensure that BCN is promoted to prospective developers and contractors with which the authorities are in contact. 4.0 FINANCIAL IMPLICATIONS 4.1 In summary, expenditure to date is on target and although income is some 23% below target overall the Client Officer Group is optimistic that the breakeven target for 2008/9 will be achieved. The Client Officer group will continue to monitor the financial position of BCN and report any issues back to Joint Board. 5.0 RECOMMENDATIONS 5.1 That Joint Board note the progress to date on the Business Plan and income targets for BCN and agree a further update report in 3 months time. 6.0 REASON FOR RECOMMENDATION 6.1 To enable the effective delivery of a joint building control service across Bolsover, Chesterfield and North East Derbyshire. Joint Board Decision Officer recommendations/supported/not supported/modified as below Leader (or Reserve) Bolsover DC Leader (or Reserve) Chesterfield BC Leader (or Reserve) North East Derbyshire DC 3

4 Appendix A - BCN Consultancy (Building Control) Budget Monitoring Summary Latest Budget Profiled Budget Actual B.C.N Variance 2008/09 Pd 1-3 Pd /09 Income Non Core Income 26,000 6,500 2,886 (3,614) Regularisation Fee 10,000 2, (2,032) Fees - Deposit 324,230 81,058 59,095 (21,963) Fees - Inspections 324,240 81,060 65,911 (15,149) Sub-total: Fee Income 684, , ,360 (42,758) Non Fee Earning charges:- Bolsover GF Recharges 102,620 25,655 0 (25,655) Chesterfield GF Recharges 137,820 34,455 0 (34,455) NEDDC GF Recharges 134,070 33,518 0 (33,518) Other Income: Internal Recharges 17,460 4,365 0 (4,365) Miscellaneous Income (10) Total Income 1,076, , ,475 (140,760) Expenditure Employee Expenses 697, , ,864 16,411 Premises Related 52,770 13,193 31,120 (17,928) Transport 35,000 8,750 9,630 (880) Supplies and Services 109,630 27,408 23,192 4,216 Agency/Contracted Services 4,600 1,150 1,148 2 Departmental Support 93,630 23, ,408 Capital Charges 14,210 3, ,553 Total Expenditure 1,006, , ,954 28,781 Surplus/(Deficit) 70,000 17,500 (94,479) (111,979) Contribution to Deficit % Bolsover 27.4% (19,180) (4,795) 0 (4,795) Chesterfield 36.8% (25,760) (6,440) 0 (6,440) NEDDC 35.8% (25,060) (6,265) 0 (6,265) (70,000) (17,500) 0 (17,500) 4

5 APPENDIX B BCN INCOME 2008/9 - CUMULATIVE Graph to be circulated in hard copy 5