Health and Environmental Committee

Quarterly Finance Report

Report Period: Quarter 2 2011/12 Dashboard: Quarter 2, 2011/12

Strategic Element: Financial Variance Indicator Variance Indicator Page Planning £,000 % £,000 % no (under)/ (under)/ Over Over Q1 Q1 Q2 Q2

Year to date variance 3

BCC (1,482) (4.9%) (2,060) (3.6%)

 Health & Environmental Committee (864) (8.0%) (1,095) (5.3%) o Environmental Health 13 0.7% 37 1.0% o Management (439) (8.5%) (687) (7.9%) o Building Control (238) (72.4%) (222) (35.9%) o Cleansing (183) (5.4%) (203) (2.7%)

o Health Directorate (17) (8.1%) (21) (5.2%) 4

Forecasted % variance BCC (210) (0.2%) (1,054) (0.9%) Health & Environmental Committee (732) (1.7%) (1,267) (2.9%) o Environmental Health (90) (1.2%) (25) (0.4%) o (565) (2.9%) (1,021) (5.3%) o Building Control (10) (0.8%) (10) (0.8%) o Cleansing (47) (0.3%) (191) (1.3%) o Health Directorate (20) (2.5%) (20) (2.5%)

Notes: 1 1. Negative variances represent an under spend 2. Movement on last quarter:

3. Tolerance R/A/G guide for % variances: Executive Summary

The quarter 2 position of the Health & Environmental Services Department is a 5.3% (£1,095,000) under spend. This represents an increased under spend of £231,000 on the quarter 1 position.

There are two main reasons for the increase in the under spend during the period. Firstly the waste management service continued to receive additional income from the materials recovery facility contracts with arc21 and the Council’s metal contracts, due to increase in the current market rate for recyclable materials. Secondly the downward trend in waste tonnages disposed of by , which was advised to the Committee in the quarter 1 report, have continued during quarter 2 which has generated additional savings in landfill disposal costs and landfill tax.

Members will recall that that the anticipated £575,000 of additional unplanned income associated with building control fees and income from the materials facility and scrap metal, which will be received over the course of the financial year, was assigned to a number of key projects in August 2011. At the end of quarter 2, £423,000 of this additional income has already been received and is included in the quarter 2 under spend position.

In addition the quarter 2 actual position includes savings of £216,000 from the reduction in tonnages disposed of by landfill and a further £125,000 of cleansing services employee costs arising from a nil pay rise and staff turnover. Delayed expenditure on community awareness and training in cleansing services and on supplies and services in waste management resulted in an under spend of £286,000 in these expenditure areas, however it is anticipated that this expenditure will incurred before the end of the financial year.

Taking all of the above matters into account and the fact that waste tonnages are continuing to fall and income from recyclables is rising and the anticipated savings in landfill gate fee costs of £467,000 from November 2011to March 2012, arising from the retender exercise by arc21 as advised to the Committee in September 2011, the year end forecast is estimated at £1,267,000 (2.9%) below the planned expenditure for the year.

The Strategic Policy and Resources will continue to consider the potential use of departmental under spends, taking into account the overall Council position and that the forecasts are estimates based on the quarter 1 and quarter 2 activity and assumptions relevant at this time.

2 Year to Date % variance

This indicator calculates the difference between the budgeted net expenditure and the actual net expenditure as a percentage. It is reported for the year to date.

Commentary and action required

Waste Management net expenditure at quarter 2 was £687,000 (7.9%) below budget, due to the receipt of £204,000 of additional income from the improved market rate for the sale of recyclable materials. Actual waste disposal costs were £216,000 below estimate due to a significant reduction in the tonnage of waste disposed of by landfill. The remaining waste management under spend was due to delayed expenditure in the procurement of caddies and liners for food waste recycling totalling £135,000 and delayed expenditure of £74,000 on supplies and services for the Household Recycling Centres and Civic Amenity Sites totalling. This expenditure will occur later in the financial year.

Building Control - The receipt of additional unplanned income from the NI Housing Executive for smoke detector installations as advised to Committee in August 2011, resulted in the service being £222,000 below the net expenditure budget.

The Cleansing Services net expenditure position of £203,000 below budget, due to £125,000 of savings in employee and agency costs with the remaining variance being mainly due to the delayed expenditure on community awareness and training activities which will be incurred the second half of the financial year.

3 Forecast % variance

This indicator calculates the difference between the planned net expenditure and the forecasted net expenditure as a percentage. It is reported as a forecast for the end of the financial year.

Commentary and action required The Waste Management forecast of £1,021,000 (5.3%) below budget, which is an increase of £456,000 from the position reported at quarter 1. These additional forecast savings are due to the anticipated reduction in landfill gate fee costs of £467,000 from November 2011to March 2012, arising from the retender exercise by arc21 which was reported to Committee in September 2011

Environmental Health is forecast to be £25,000 below budget, due to employee costs savings arising from staff turnover and vacancies and additional income.

Net expenditure for the Building Control Service is forecast to be £10,000 below budget, due the additional income arising from the cost recovery of Energy Performance Certificate activity.

Cleansing net expenditure is forecast to be £191,000 below budget, which is an increase of £147,000 from the quarter 1 forecast. This is due to additional employee cost savings of £67,000 and further savings of £80,000 due to the non requirement for direct haulage during the period of the waste transfer station temporary closure.

The departmental year end forecast is £1,267,000 (2.9%) below planned expenditure.

4 Health and Environmental Committee - Main Items of Expenditure

Forecast Plan Actual Variance Plan for Y/E at Forecast YTD YTD YTD % 11/12 P6 Variance % £'000 £'000 £'000 Variance £'000 £'000 £'000 Variance

Health and Environmental Committee 20,708 19,613 ( 1,095) (5.3%) 43,457 42,190 ( 1,267) (2.9%)

Environmental Health 3,529 3,566 37 1.0% 7,203 7,177 ( 25) (0.4%) Environmental Protection and Planning 510 636 126 24.8% Regulation of Commercial Sector 835 771 ( 64) (7.7%) Public Health and Housing 789 771 ( 18) (2.3%) Community Safety and DPP 553 583 30 5.5% Health Development and Advice Services 215 266 51 23.5% Support and Other Services 548 502 ( 47) (8.5%) Thematic Expenditure 80 38 ( 42) (52.0%)

Waste Management 8,694 8,007 ( 687) (7.9%) 19,233 18,213 ( 1,021) (5.3%) Waste Disposal 5,109 4,865 ( 244) (4.8%) Waste Control Monitor Enforcement 1,476 1,217 ( 260) (17.6%) Civic Amenity sites 1,106 944 ( 162) (14.7%) Public Conveniences 127 131 3 2.6% Waste Control Projects & Outreach 281 299 19 6.6% Waste Business Support 284 255 ( 29) (10.3%) Duncrue Complex 210 206 ( 4) (1.8%) Policy & Resources 99 90 ( 9) (9.5%)

Building Control 617 395 ( 222) (35.9%) 1,271 1,261 ( 10) (0.8%)

Cleansing 7,462 7,259 ( 203) (2.7%) 14,940 14,748 ( 191) (1.3%) Cleansing and Operations 6,874 6,691 ( 183) (2.7%) Quality Assessment and Business Support 588 568 ( 20) (3.4%)

Directorate Support 406 385 ( 21) (5.2%) 810 790 ( 20) (2.5%)