Budgeting

14 Revenue Budget Preparation

14.1 Overview

The budget is the financial expression of the Authority’s corporate objectives, service improvement priorities and Service Plans, and must be prepared in accordance with Financial Strategy.  Budgets are used to plan, authorise, monitor and control the way money is allocated and spent.  It is illegal for an authority to budget for a deficit.  There is an annual cycle for the production of the revenue budget.  There is an important link between the Revenue Budget preparation and the allocation of resources.  Schools will receive their resource allocation in line with the processes and policy below.  Once allocated Governing Bodies must apply the School’s Financial Regulations to produce a detailed revenue budget.

14.2 Responsibility/Accountability

14.2.1 Council (click here for all responsibilities for the Council)

Approving the Authority’s budget and Financial Strategy, but may amend either or ask the Cabinet to reconsider them before giving approval.

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

Recommend the Authority’s budget and Financial Strategy. 

Issuing guidance on the content of the budget having taken advice from the Section 151 Officer.

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

Accountable to the Cabinet for ensuring the budget is prepared in accordance with guidance and the Financial Strategy.

14.2.4 Directors (click here for all responsibilities for Directors)
Ensuring that the Financial Strategy is implemented by Business Unit Heads in the preparation of Revenue Budgets.

Calling to account any Business Unit Heads who prepares a revenue budget without incorporating the requirements of the Financial Strategy.

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

Ensuring that a 3-year revenue budget is prepared on an annual basis for consideration by the Cabinet, before submission to the Council. 

Produce a timetable for budget preparation that will match with resource allocation and Service Plan preparation.

Preparing detailed budget preparation guidance.

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

Accountable to the relevant Cabinet Portfolio Member and Chief Executive and Directors’ Management Team for ensuring that revenue budgets for their service areas comply with the Financial Strategy and guidance.

Ensuring that budget estimates are prepared in line with guidance and reflect agreed Service Plans as submitted to Cabinet.

14.3 Policy (click here for the detailed procedures)

A Revenue Budget and Council Tax will be set in accordance with relevant legislation.

It will be balanced, legal, take account of all known expenditure and realistic income forecasts.  The budget will be in the agreed format and produced in accordance with the timetable.