Revenue Monitoring Report as at 14 September 2013, Period 6

Transcription

1 Agenda 4 Revenue Monitoring Report as at 14 September 2013, Period 6 Committee Strategy and Programmes Date of meeting 11 October 2013 Date of report 25 September 2013 Report by Assistant Chief Executive (Business Support) 1. Object of report To advise members of the committee of the revenue expenditure incurred as at the end of Period 6 (14 September 2013) and the projected outturn for the financial year. 2. Background The Partnership core revenue budget for 2013/14 was set at m. At Period 4, members were advised of a forecast positive variance of 325,000. The report highlighted employee cost savings as a result of the early redemption of historic CAY costs in 2012/13 and the utilisation of 1.5m of planned revenue savings to support the general capital programme. 3. Current position Since the last revenue report considered by committee, the savings programme continues to be driven through and strong cost and budgetary control exercised over all expenditure heads. The main variances are detailed in Appendix 1. There are no material changes to report at Period 6 with the forecast year end outturn being a positive variance of 350,000, reflecting the on-going savings programme and contribution to the capital programme previously approved by committee. See Appendix 2 for a detailed budgetary control report. 4. Conclusions Having taken account of all SPT service priorities across the revenue and capital programmes, a positive variance of 350,000 is forecast. All expenditure heads will continue to be managed closely to ensure this projected positive variance is achieved. 5. Committee action The committee is recommended to: Note the projected outturn position on the information available at the end of Period 6. agenda 4 Page 1 of 2

2 6. Consequences Policy consequences Legal consequences Financial consequences Personnel consequences Social inclusion consequences Risk consequences None None As outlined in the report None None None Name Valerie Davidson Name Gordon Maclennan Title Assistant Chief Executive (Business Support) Title Chief Executive For further information, please contact Neil Wylie, Director of Finance & HR, on agenda 4 Page 2 of 2

3 Appendix 1 Major forecast variances as at Period 6, 14 September 2013 Ref Subjective Heading Saving / (Overspend) Variance Description 1 Employee costs 1,225,000 The forecast decrease in employee cost reflects the forecast reduction in other employee costs as a result of the early redemption of historic Compensatory Added Years costs in 2012/13, vacancies in the establishment and a reduction in overtime costs as a result of revised shift and rota arrangements. 2 Interest received 250,000 The forecast increase in interest received reflects the continued focus on maximising returns on cash balances within the constraints of SPT s approved Treasury Strategy, with particular emphasis on security and liquidity of funds. Overall cash returns are now being squeezed as investment rates of return are reducing in response to the forecast of medium term base rate stability. 3 Supplies and services 150,000 The forecast decrease in supplies and services costs reflects the continued close management of variable costs and increased capital recoveries in respect of subway modernisation. 4 Electricity 150,000 The forecast decrease in electricity costs reflects the positive contract rates in place in 2013/14. 5 Property Insurance 75,000 The forecast decrease in property insurance costs reflects the positive contract costs obtained from the market in 2013/14. 6 Contribution to Capital Funded from Revenue ( 1,500,000) Utilisation of planned revenue savings to support the general capital programme and counter balance the significant reduction in general capital grant in 2013/14. Net forecast saving / (overspend) 350,000 agenda 4 appendix 1 26 September 2013

4 Committee Report by Division Travel Card Unit #NAME? #NAME? Actual Budget Variance Variance % Projected Outturn Variance Variance % Chief Executive Cabinet 265, ,385 12,120 4% 590, ,000 11,000 2% Total Chief Executive 265, ,385 12,120 4% 590, ,000 11,000 2% Operations Subway 438,785 1,222, ,677 64% 1,316,100 1,461, ,000 10% Bus Operations 7,267,409 7,732, ,345 6% 16,591,800 16,754, ,500 1% Projects 495, ,292 93,337 16% 1,195,800 1,276,800 81,000 6% Health and Safety 63,984 66,923 2,939 4% 145, ,000-0% Customer Standards 110, ,708 17,458 14% 268, ,700 8,000 3% Total Operations 8,376,384 9,739,139 1,362,755 14% 19,517,399 19,913, ,500 2% Business Support Property 49,249 78,415 29,167 37% 129, ,900 40,000 24% Finance & Human Resources 550, ,816 34,083 6% 1,202,100 1,267,100 65,000 5% Information Technology 305, ,292 40,806 12% 700, ,300 50,000 7% Communications 209, , ,899 37% 721, ,800 1,500 0% Legal Services 127, ,246 2,440 2% 282, ,200-0% Business Support 128, ,800 55,806 30% 345, ,400 55,000 14% Elected Members 22,016 37,662 15,646 42% 71,600 81,600 10,000 12% Corporate 369,558 1,574,216 1,204,658 77% 2,189,800 3,410,800 1,221,000 36% Total Business Support 1,763,543 3,270,047 1,506,504 46% 5,642,601 7,085,101 1,442,500 20% Bus Residual 76, , ,047 65% 476, ,800-0% Contribution to Subway Modernisation Fund 3,619,015 3,619,015-0% 7,841,200 7,841,200-0% Contribution to Capital Funded from Revenue 1,846,154 1,153,846 (692,308) (60%) 4,000,000 2,500,000 (1,500,000) (60%) Net Total 15,946,375 18,279,493 2,333,118 13% 38,068,000 38,418, ,000 1% Page 1

5 Revenue Monitoring Report Travel Card Unit #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 7,525,687 7,840, ,113 4% 16,588,400 16,988, ,000 2% 1 Overtime 291, , ,469 33% 772, , ,000 18% 2 Other 2,109,614 2,563, ,447 18% 4,903,300 5,553, ,000 12% 3 - Sub Total 9,926,956 10,840, ,029 8% 22,263,799 23,488,799 1,225,000 5% Property Costs Electricity 685, , ,480 15% 1,596,600 1,746, ,000 9% 4 Repairs and Maintenance 242, ,338 13,599 5% 555, ,400-0% Property Insurance 232, ,923 44,050 16% 525, ,000 75,000 12% 5 Other Property Costs 1,259,293 1,360, ,953 7% 2,947,200 2,947,200-0% 6 Sub Total Property Costs 2,420,548 2,699, ,083 10% 5,624,200 5,849, ,000 4% Supplies & Services 498, , ,171 36% 1,538,700 1,688, ,000 9% 7 Transport & Plant Costs 73,915 85,985 12,070 14% 186, ,300-0% Third Party Payments Bus Operator Payments 5,339,260 5,828, ,002 8% 12,627,900 12,627,900-0% 8 Communications 73, , ,454 66% 468, ,000-0% 6 Other Third Party Payments 1,632,338 1,820, ,524 10% 3,945,200 3,945,200-0% 6 Sub Total Third Party Payments 7,045,143 7,865, ,980 10% 17,041,100 17,041,100-0% Financing Costs Contribution to Subway Modernisation Fund 3,619,015 3,619,015-0% 7,841,200 7,841,200-0% Contribution to Capital Funded from Revenue 1,846,154 1,153,846 (692,308) (60%) 4,000,000 2,500,000 (1,500,000) (60%) Sub Total Financing Costs 5,465,169 4,772,862 (692,308) (15%) 11,841,200 10,341,200 (1,500,000) (15%) TOTAL 25,429,960 27,043,985 1,614,024 6% 58,495,300 58,595, ,000 0% INCOME Subway Income (7,002,361) (6,471,199) 531,162 (8%) (15,208,500) (15,208,500) - 0% 9 Bus Station Income (1,181,973) (1,199,862) (17,889) 1% (2,599,700) (2,599,700) - 0% Agency Income - Agency Fee (594,543) (608,585) (14,042) 2% (1,318,600) (1,318,600) - 0% Interest Received (353,531) (184,615) 168,916 (91%) (650,000) (400,000) 250,000 (63%) 10 Other Income (351,177) (300,231) 50,947 (17%) (650,500) (650,500) - 0% TOTAL INCOME (9,483,586) (8,764,492) 719,094 (8%) (20,427,300) (20,177,300) 250,000 (1%) Net Total 15,946,375 18,279,493 2,333,118 13% 38,068,000 38,418, ,000 1% 1. Reflects current pay offer of 1% subject to negotiation and also vacancies in the 2013/14 establishment. 2. Corporate allowance for overtime unlikely to be utilised. 3. This reflects the forecast revenue saving for 2013/14 as a result of the early redemption of historic Compensatory Added Years costs in 2012/ It is not anticipated that the full corporate allowance for electricity will be utilised based on confirmed contractual prices. 5. Based on confirmed annual costs for insurance. 6. Current underspend due to timing issues in respect of expenditure/budget phasing. 7. Due to close management of supplies and services budgets and capital recoveries from Subway Modernisation work. 8. Year to date position reflects projected underspend reported to the Operations Committee on the 4th October. Outturn remains unchanged due to risks associated with fluctuations in the bus market. 9. The projected outturn reflects potential temporary disruption during the implementation of the new ticketing system in 2013/14 and the current decline in patronage. 10. Due to close management of cash balances. Page 2

6 Committee Report by Directorate - Cabinet Executive Support #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 200, ,692 7,465 4% 440, ,000 10,000 2% Other 61,508 62, % 134, ,000 1,000 1% Sub Total 261, ,000 8,264 3% 574, ,000 11,000 2% Supplies & Services 1,921 2, % 5,000 5,000-0% Transport & Plant Costs 1,608 5,077 3,468 68% 11,000 11,000-0% TOTAL 265, ,385 12,120 4% 590, ,000 11,000 2% Net Total 265, ,385 12,120 4% 590, ,000 11,000 2% Page 3

7 Committee Report by Directorate - Subway Support #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 3,425,647 3,387,092 (38,555) (1%) 7,388,700 7,338,700 (50,000) (1%) 1 Overtime 210, ,354 34,678 14% 531, ,600-0% Other 886, ,431 80,698 8% 1,976,100 2,096, ,000 6% 2 Sub Total 4,523,056 4,599,877 76,820 2% 9,896,399 9,966,399 70,000 1% Property Costs Electricity Repairs and Maintenance 581, ,154-4,539-1% 1,270,000-1,270, % Property Insurance 232, ,923 44,050 16% 525, ,000 75,000 12% 3 Other Property Costs 634, ,462 62,065 9% 1,509,000 1,509,000-0% Sub Total Property Costs 1,448,885 1,559, ,654 7% 3,304,000 3,379,000 75,000 2% Supplies & Services 680, ,231 (67,775) (11%) 1,326,500 1,326,500-0% 1 Transport & Plant Costs 623 2,308 1,685 73% 5,000 5,000-0% Third Party Payments Bus Operator Payments 23,940 18,462 (5,478) (30%) 40,000 40,000-0% Other Third Party Payments 764, , ,609 15% 1,952,700 1,952,700-0% 4 Sub Total Third Party Payments 788, , ,130 14% 1,992,700 1,992,700-0% TOTAL 7,441,147 7,693, ,515 3% 16,524,600 16,669, ,000 1% INCOME Subway Income (7,002,361) (6,471,199) 531,162 (8%) (15,208,500) (15,208,500) - 0% 5 TOTAL INCOME (7,002,361) (6,471,199) 531,162 (8%) (15,208,500) (15,208,500) - 0% Net Total 438,785 1,222, ,677 64% 1,316,100 1,461, ,000 10% 1. Overspend in employee costs and compensating over recovery on capitalised recoveries due to use of casual staff during ticketing system implementation. 2. Due to number of employees currently in the pension scheme being less than budgeted. 3. Based on confirmed annual costs for insurance. 4. Current underspend due to timing issues in respect of expenditure/budget phasing. 5. The projected outturn reflects potential temporary disruption during the implementation of the new ticketing system in 2013/14 and current decline in patronage. Page 4

8 Committee Report by Directorate - Bus Operations Travel Card Unit #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 1,888,186 1,837,662 (50,524) (3%) 4,056,600 3,981,600 (75,000) (2%) 1 Overtime 70,960 93,923 22,963 24% 196, ,500 7,500 4% Other 426, ,354 52,742 11% 948,600 1,038,600 90,000 9% 2 Sub Total 2,385,758 2,410,938 25,180 1% 5,201,200 5,223,700 22,500 0% Property Costs Electricity 68,894 78,092 9,198 12% 169, ,200-0% Repairs and Maintenance 162, ,308 (10,564) (7%) 330, ,000-0% Other Property Costs 484, ,092 25,411 5% 1,105,200 1,105,200-0% Sub Total Property Costs 716, ,492 24,046 3% 1,604,400 1,604,400-0% Supplies & Services 70, , ,408 62% 257, , ,000 35% 3 Transport & Plant Costs 58,551 62,862 4,311 7% 136, ,200-0% Third Party Payments Bus Operator Payments 5,305,387 5,579, ,644 5% 12,087,900 12,087,900-0% 4 Communications 1,775 20,769 18,994 91% 45,000 45,000-0% Other Third Party Payments 13,456 37,615 24,159 64% 81,500 81,500-0% Sub Total Third Party Payments 5,320,618 5,637, ,797 6% 12,214,400 12,214,400-0% TOTAL 8,551,382 9,035, ,741 5% 19,413,600 19,576, ,500 1% INCOME Bus Station Income (1,095,734) (1,089,277) 6,457 (1%) (2,360,100) (2,360,100) - 0% Agency Income - Agency Fee (188,239) (213,092) (24,853) 12% (461,700) (461,700) - 0% TOTAL INCOME (1,283,973) (1,302,369) (18,396) 1% (2,821,800) (2,821,800) - 0% Net Total 7,267,409 7,732, ,345 6% 16,591,800 16,754, ,500 1% 1. Overspend in employee costs due to revised management team structure and increased use of casual employees to cover bus station activities at Hamilton Bus Station. 2. Due to number of employees currently in the pension scheme. 3. As a result of close management of supplies and services budgets 4. Year to date position reflects projected underspend reported to the Operations Committee on the 4th October. Outturn remains unchanged due to risks associated with fluctuations in the bus market. Page 5

9 Committee Report by Directorate - Projects Projects #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 688, ,554 59,028 8% 1,559,700 1,619,700 60,000 4% 1 Overtime 6,663 - (6,663) 7,000 - (7,000) Other 191, ,354 23,695 11% 436, ,600 30,000 6% 1 Sub Total 886, ,908 76,061 8% 2,003,300 2,086,300 83,000 4% Supplies & Services (394,837) (386,308) 8,530 (2%) (837,000) (837,000) - 0% Transport & Plant Costs 1,206 3,462 2,255 65% 7,500 7,500-0% Third Party Payments Communications 740 9,231 8,491 92% 20,000 20,000-0% Other Third Party Payments 2,000 - (2,000) 2,000 - (2,000) Sub Total Third Party Payments 2,740 9,231 6,491 70% 22,000 20,000 (2,000) (10%) TOTAL 495, ,292 93,337 16% 1,195,800 1,276,800 81,000 6% Net Total 495, ,292 93,337 16% 1,195,800 1,276,800 81,000 6% 1. Due to vacancies in the 2013/14 establishment. Page 6

10 Committee Report by Directorate - Health and Safety Security & Safety #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 50,021 51,738 1,718 3% 112, ,100-0% Other 13,697 14,815 1,119 8% 32,100 32,100-0% Sub Total 63,717 66,554 2,837 4% 144, ,200-0% Supplies & Services % % Transport & Plant Costs % % TOTAL 63,984 66,923 2,939 4% 145, ,000-0% Net Total 63,984 66,923 2,939 4% 145, ,000-0% Page 7

11 Committee Report by Directorate - Customer Standards Chief Executive Unit #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 82,213 90,277 8,064 9% 185, ,600 10,000 5% Overtime 3,267 4,615 1,348 29% 10,000 10,000-0% Other 22,527 24,969 2,442 10% 51,100 54,100 3,000 6% Sub Total 108, ,862 11,854 10% 246, ,700 13,000 5% Property Costs Repairs and Maintenance 3,345 - (3,345) 4,000 - (4,000) Other Property Costs (555) 1,000 - (1,000) Sub Total Property Costs 3,900 - (3,900) 5,000 - (5,000) Supplies & Services (1,679) 6,923 8, % 15,000 15,000-0% Transport & Plant Costs % 2,000 2,000-0% TOTAL 110, ,708 17,458 14% 268, ,700 8,000 3% Net Total 110, ,708 17,458 14% 268, ,700 8,000 3% Page 8

12 Committee Report by Directorate - Property Property & Asset Man #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 38,413 60,462 22,048 36% 101, ,000 30,000 23% 1 Other 10,346 17,400 7,054 41% 27,700 37,700 10,000 27% 1 Sub Total 48,760 77,862 29,102 37% 128, ,700 40,000 24% Supplies & Services (27) (6%) 1,000 1,000-0% Transport & Plant Costs % % TOTAL 49,249 78,415 29,167 37% 129, ,900 40,000 24% Net Total 49,249 78,415 29,167 37% 129, ,900 40,000 24% 1. Due to a vacant post in the 2013/14 establishment. Page 9

13 Committee Report by Directorate - Finance & Human Resources Procurement #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 464, ,831 28,100 6% 1,032,800 1,067,800 35,000 3% 1 Other 119, ,923 22,248 16% 277, ,500 30,000 10% 1 Sub Total 584, ,754 50,348 8% 1,310,300 1,375,300 65,000 5% Supplies & Services (33,747) (50,492) (16,745) 33% (109,400) (109,400) - 0% Transport & Plant Costs % 1,200 1,200-0% TOTAL 550, ,816 34,083 6% 1,202,100 1,267,100 65,000 5% Net Total 550, ,816 34,083 6% 1,202,100 1,267,100 65,000 5% 1. Due to vacancies in the 2013/14 establishment. Page 10

14 Committee Report by Directorate - Information Technology Service Support #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 240, ,046 26,517 10% 543, ,600 35,000 6% 1 Overtime % 2,000 2,000-0% Other 63,041 76,938 13,897 18% 151, ,700 15,000 9% 1 Sub Total 303, ,908 41,338 12% 697, ,300 50,000 7% Supplies & Services % 2,000 2,000-0% Transport & Plant Costs 1, (913) (198%) 1,000 1,000-0% TOTAL 305, ,292 40,806 12% 700, ,300 50,000 7% Net Total 305, ,292 40,806 12% 700, ,300 50,000 7% 1. Due to vacancies in the 2013/14 establishment. Page 11

15 Committee Report by Directorate - Communications Media #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 110, , % 241, ,300-0% Overtime 88 - (88) (500) Other 24,648 32,077 7,429 23% 64,500 69,500 5,000 7% Sub Total 135, ,446 7,986 6% 306, ,800 4,500 1% Supplies & Services 132 2,308 2,176 94% 5,000 5,000-0% Transport & Plant Costs 238 1,846 1,608 87% 4,000 4,000-0% Third Party Payments Communications 71, , ,969 62% 403, ,000-0% 1 Other Third Party Payments 2,840 - (2,840) 3,000 - (3,000) Sub Total Third Party Payments 73, , ,129 60% 406, ,000 (3,000) (1%) TOTAL 209, , ,899 37% 721, ,800 1,500 0% Net Total 209, , ,899 37% 721, ,800 1,500 0% 1. Current underspend due to timing issues in respect of expenditure/budget phasing. Page 12

16 Committee Report by Directorate - Legal Services Legal Services #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 100, , % 217, ,800-0% Other 27,260 28,800 1,540 5% 62,400 62,400-0% Sub Total 127, ,323 1,832 1% 280, ,200-0% Supplies & Services % 1,500 1,500-0% Transport & Plant Costs % % TOTAL 127, ,246 2,440 2% 282, ,200-0% Net Total 127, ,246 2,440 2% 282, ,200-0% Page 13

17 Committee Report by Directorate - Business Support Business Support #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 101, ,400 38,554 27% 264, ,200 40,000 13% 1 Other 26,081 40,477 14,395 36% 72,700 87,700 15,000 17% 1 Sub Total 127, ,877 52,949 29% 336, ,900 55,000 14% Supplies & Services 951 3,692 2,742 74% 8,000 8,000-0% Transport & Plant Costs % % TOTAL 128, ,800 55,806 30% 345, ,400 55,000 14% Net Total 128, ,800 55,806 30% 345, ,400 55,000 14% 1. Due to vacancies in the 2013/14 establishment. Page 14

18 Committee Report by Directorate - Elected Members Members #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Supplies & Services 21,069 28,892 7,823 27% 52,600 62,600 10,000 16% Transport & Plant Costs 947 3,231 2,284 71% 7,000 7,000-0% Third Party Payments Other Third Party Payments - 5,538 5, % 12,000 12,000-0% Sub Total Third Party Payments - 5,538 5, % 12,000 12,000-0% TOTAL 22,016 37,662 15,646 42% 71,600 81,600 10,000 12% Net Total 22,016 37,662 15,646 42% 71,600 81,600 10,000 12% Page 15

19 Committee Report by Directorate - Corporate Corporate #NAME? # Actual Budget Variance Variance % Projected Outturn Variance Variance % Salaries 134, , ,761 61% 445, , ,000 41% 1 Overtime - 92,308 92, % 25, , ,000 88% 2 Other 235, , ,388 49% 668, , ,000 33% 3 Sub Total 370, , ,457 59% 1,138,300 1,949, ,000 42% Property Costs Electricity 35, , ,743 75% 157, , ,000 49% 4 Repairs and Maintenance 76, ,031 27,508 26% 221, ,400 4,000 2% Other Property Costs 139, ,692 14,032 9% 332, ,000 1,000 0% Sub Total Property Costs 251, , ,283 37% 710, , ,000 18% Supplies & Services 152, , ,244 59% 810, ,500-0% 5 Transport & Plant Costs 9,116 4,615 (4,501) (98%) 10,000 10,000-0% Third Party Payments Bus Operator Payments 9, , ,836 96% 500, ,000-0% 6 Other Third Party Payments 849, ,462 27,058 3% 1,894,000 1,899,000 5,000 0% Sub Total Third Party Payments 859,337 1,107, ,894 22% 2,394,000 2,399,000 5,000 0% Financing Costs Contribution to Subway Modernisation Fund 3,619,015 3,619,015-0% 7,841,200 7,841,200-0% Contribution to Capital Funded from Revenue 1,846,154 1,153,846 (692,308) (60%) 4,000,000 2,500,000 (1,500,000) (60%) Sub Total Financing Costs 5,465,169 4,772,862 (692,308) (15%) 11,841,200 10,341,200 (1,500,000) (15%) TOTAL 7,107,993 7,558, ,069 6% 16,904,800 16,375,800 (529,000) (3%) INCOME Agency Income - Agency Fee (492,543) (506,077) (13,534) 3% (1,096,500) (1,096,500) - 0% Interest Received (353,531) (184,615) 168,916 (91%) (650,000) (400,000) 250,000 (63%) 7 Other Income (351,177) (300,231) 50,947 (17%) (650,500) (650,500) - 0% TOTAL INCOME (1,197,251) (990,923) 206,328 (21%) (2,397,000) (2,147,000) 250,000 (12%) Net Total 5,910,741 6,567, ,397 10% 14,507,800 14,228,800 (279,000) (2%) 1. Reflects current pay offer of 1% subject to negotiation. 2. Corporate allowance for overtime unlikely to be utilised. 3. This reflects the forecast revenue saving for 2013/14 as a result of the early redemption of historic Compensatory Added Years costs in 2012/ It is not anticipated that the full corporate allowance for electricity will be utilised based on confirmed contractual prices. 5. Current underspend due to timing issues in respect of expenditure/budget phasing. 6. Year to date position reflects projected underspend reported to the Operations Committee on the 4th October. Outturn remains unchanged due to risks associated with fluctuations in the bus market. 7. Due to close management of cash balances. Page 16