Managing Budgets

2 Revenue Budget Monitoring

2.1. Overview

Budget monitoring ensures that resources are used for their intended purposes and are properly accounted for.  Budgetary control allows the Authority to review and adjust its budget targets during the financial year.  It also provides the mechanism to call to account managers responsible for defined elements of the budget.  Identifying and explaining variances against targets can highlight changes in trends and resource requirements.  It is a means of identifying and managing possible over and underspends.

2.2 Responsibility/Accountability

2.2.1 Cabinet (click here for all responsibilities for the Cabinet)

Reviewing monthly monitoring reports and approving options for dealing with over and underspends, both actual and estimated.

2.2.2 Scrutiny & Review Panels (click here for all responsibilities for Scrutiny & Review panels)

Making any relevant comments to Cabinet in relation to quarterly monitoring reports.

2.2.3 Chief Executive (click here for all responsibilities for the Chief Executive)

Accountable to the Cabinet for ensuring the Council spends within budget.

In exceptional circumstances nominate a Director to intervene or take full management responsibility for a particular Business Unit or part of it.

2.2.4 Directors (click here for all responsibilities for Directors)

Directors’ Management Team will be responsible for evaluating monthly monitoring statements and challenging Business Unit Heads to account for the results.

Intervene or take full operational control of a Business Unit or part of it as instructed by the Chief Executive.

Where a Director has a statutory responsibility for the operation of a service budget they are accountable to the Chief Executive for spending within the budget and reporting any variations actual or estimated and the action proposed to correct any overspends.

Directors’ Management Team will determine the most appropriate use of any windfall gains as a result of underspends in order to best achieve corporate objectives, service improvement priorities and efficient use of resources.

2.2.5 Section 151 Officer (click here for all responsibilities for the Section 151 Officer)

Maintaining systems that will provide financial information to enable budgets to be monitored effectively. 

Producing monthly corporate monitoring information and related advice to Cabinet.

Advising Members and Directors of potential overspending where solutions are not being addressed.

Advising Members Chief Executive, Directors and Business Unit Heads of any other areas of Budget concern.

2.2.6 Business Unit Heads (click here for all responsibilities for Business Unit Heads)

Accountable to the relevant Cabinet Portfolio Member, Chief Executive and Directors’ Management Team for spending within budget and reporting any variations, actual or estimated and the action proposed to correct overspends.  Where a Business Unit Head is accountable for a service which comes within the remit of a Director required by statute to have operational responsibility for the budget, they are responsible to that Director, and not the Chief Executive.

Responsible for identifying high risk budgets and other areas for more detailed review.

Responsible for accepting the advice/recommendations/assistance of Directors appointed by the Chief Executive to intervene.

Manage the revenue resources within their Business Unit taking account of any tensions between service and corporate objectives

2.3 Policy (click here for the detailed procedures)

Budget Monitoring will be carried out and reported on a regular basis.   Overspending will be met from virement or as a first call on the following year’s budget.  Overspend may result in disciplinary procedures particularly where no action has been taken to resolve or deal with it.