Managing Budgets
105.1 Basis
- Profiling of expenditure for each scheme should be undertaken by the relevant Project Officer in order that actual spend can be monitored.
- Capital Monitoring Reporting will be on an exception basis and only where the variation is likely to reflect a significant delay in the scheme or result in a difference in the final cost of over 10% of the original approved budget.
105.2 Reporting
- Business Unit Heads may choose the format in which they report variations to Cabinet and Scrutiny and Review Panels, but must include a projected outturn cost for the scheme and profiled expenditure analysis.
- Only variations approved by the Cabinet will be included in the Capital Programme.
- As part of the annual closure of accounts the Section 151 Officer will report on the out-turn for each scheme in the Capital Programme for that year. This report will also include the method of funding for each scheme.
- Business Unit Heads will need to provide explanations to the Section 151 Officer for any variations identified in the annual report.
- Where necessary the Chief Executive will nominate a Director to intervene in the running of a capital scheme.
105.3 Contract Monitoring
- Particulars of each contract entered into by the Council, with a copy of the specification, quantities and schedule of prices (if any), shall be available to the Head of Resources as soon as possible after the sealing of the contract.
- Where contracts provide for payment to be made by installments, Head of Resources shall arrange for the keeping of a contract register or registers to show the state of account on each contract together with any other payment and related professional fees.
- Payments to contractors on account of contracts shall be made only on a certificate issued by the Business Unit Head concerned, and as full particulars as possible shall be attached to this certificate.
- Subject to the provisions of the contract, any extra or variation work shall be authorized in writing by the Business Unit Head concerned. Any extra, or variation work, the aggregate estimated additional cost of which exceeds £10,000 in the case of contracts with a value of less than £100,000 (or £20,000 in the case of contracts with a value of £100,000 or over), shall be approved by Cabinet in advance. This is unless urgent action is required, in which case it shall be reported to the next appropriate Cabinet.
- Claims from contractors in respect of matters not clearly within the terms of any existing contract shall be referred to the Head of Resources for consideration of legal liability and, where necessary for financial assessment prior to any settlement.
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