Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
The virement of £0.5m from the 2019/20 and 2020/21 Place Capital programme to support work on the Council’s new build housing proposals.
The Reasons are:
Capital resource of £0.5 m has been identified from within the current and 20/21 property repairs and maintenance allocations. As a result, approval is sought to vire this value of capital resource to Housing. The vired resource will allow the business case work for the new housing proposals to be concluded and allow the City Mayor to make a decision whether to proceed with the delivery of the new units.
The virement of the monies will assist in the early delivery of the proposed units – subject to the approval of the business case.
Assessment of Risk:
Low: Any delay in agreeing the virement will reduce the development of the Council new build Housing business case.
Low: If the virement is not agreed, an alternative source of funding will be required if the required works are to proceed.
2019/20 and 2020/21 Place capital programme (Repairs and Maintenance)
As set out in the Council’s Constitution, each directorate is allocated a budget amount as their share of the annual revenue budget approved by Council, and capital virements (movement of budgets between approved capital schemes) are permitted subject to the approvals being made by authorised persons as set out in section 7.4 of the Budget and Policy Framework Procedure Rules.
For a virement of the amount requested, it would appear that section 7.4 (g) applies and the approval of lead member for financial and support services in consultation with the section 151 officer is required. Section 7.4 reads as follows:
“7.4 The person set out below shall be entitled to vire across budget heads or budget amounts as follows:
a) a Chief Officer may vire between budget heads under their control and within their directorates £150,000 in any financial year.
b) the Member(s) of the Cabinet for a relevant service area(s) may, with the approval of the relevant Lead Member, vire between budget heads within their control sums of £150,000 and over, up to £350,000 in any financial year.
c) the elected City Mayor may vire sums up to £100,000,000 between the budget amounts of different directorates in any financial year.
d) the Assistant Director Finance shall be responsible for authorising all virements from the central inflation and contingency provision to other service budgets.
e) any such virement must be notified to the Assistant Director Finance and virements of above £150,000 must be reported for information to the next meeting of the Overview and Scrutiny Board.
f) any virement above £ 100,000,000 will require the approval of full Council.
g) Virements within the capital programme of up to £2,000,000 are subject to the approval of the lead member for financial and support services in consultation with the S151 Officer.
The £0.5m identified in this report is part of the 2019/20 capital programme as approved in February 2019. There are no financial implications relating to the virement within the Place directorate.
If the budget is not vired from Property, additional borrowing would be required in order to finance the business case for the new housing proposals.
Procurement Implications: Submitted by Deborah Derbyshire x 6244
Procurement have been working with Housing, Property and Legal staff to ensure that the correct procurement process is undertaken ensuring compliance with contractual standing orders in relation to how the £0.5m will be spent.
The following documents have been used to assist the decision process:
This decision is not subject to consideration by another Lead Member.
This decision was published on 19 March 2020.
This decision will come into force at 4.00pm on 26 March 2020 unless it is called-in in accordance with the decision-making process rules.
Publication date: 19/03/2020
Date of decision: 19/03/2020
Decided at meeting: 19/03/2020 - Lead Member for Finance and Support Services Briefing
Effective from: 20/03/2020