Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
I, Councillor David Lancaster, Lead Member for Environment and Community Safety, in exercise of the powers contained within the Council Constitution, do hereby approve the virement of £0.300m within the 2020/21 Place capital programme to finance additional costs for the replacement of waste and recycling containers.
The Reasons are – capital resource of £0.3m was assigned against Environment (Buile Hill Mansion) that will not be spent by March 2021. As a result, available capital is to be used to finance additional costs for the replacement of waste and recycling containers up to March 2021. (The capital provision for Buille Hill will be addressed in the 2021/22 Capital Budget)
Options considered and rejected were –
No replacement waste containers provided- Failure to be able to provide waste containers would mean inability to offer suitable waste and recycling services to residents and businesses within the city.
Low: If the virement is not agreed, and on the basis replacement containers are provided, there will be an overspend on the budget.
High: If the virement is not agreed, and on the basis replacement containers are not provided, there will be an inability to offer suitable waste and recycling services to residents and businesses which will result in a reduction in recycling rates and an increase in disposal costs.
Legal Advice obtained Submitted by: Tony Hatton, Principal Solicitor, tel. 219 6323
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 (b) applies and the approval of lead member for financial and support services in consultation with the Chief Finance Officer is required. Section 7.4 reads as follows:
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 City Mayor may vire sums up to £1,000,000 between the budget
amounts of different directorates in any financial year.
d) the Chief Finance officer shall be responsible for authorising all
virements from the central inflation and contingency provision to other service budgets.
e) any virement must be notified to the Chief Finance Officer and virements
of above £150,000 must be reported for information to the next meeting of the Overview and Scrutiny Board.
f) any revenue virement above £ 1,000,000 will require the approval
of full Council.
g) Virements within the capital programme of above £350,000 up to
£2,000,000 are subject to the approval of the lead member for
financial and support services in consultation with the Chief
Financial Advice obtained (Alison Woods)
The 2020/21 Capital Programme review identified an unsupported borrowing allocation of £0.300m, as being unspent and unrequired to the 31st March 2021, for the original bid purpose (Buile Hill Mansion scheme match funding). Further to consideration of the current position of the 2020/21 Place capital programme, Place DMT have endorsed the proposed virement of £0.300m, in order to resource the additional ‘in year’ costs identified for the replacement waste containers.
Procurement Advice obtained – (Deborah Derbyshire)
Procurement will assist in any purchase activity ensuring the bins are procured through a compliant framework which complies with the Procurement Contract Regulations and the Councils Contractual Standing Orders.
The following documents have been used to assist the decision process:
Report to Environment and Community Safety Lead Member Briefing on 26 October 2020.
Damian Thornton Tel No: 0161 925 1011
This decision is not subject to consideration by another Lead Member
This decision will come in force at 4.00 p.m. on Monday 2 November 2020
Publication date: 26/10/2020
Date of decision: 26/10/2020
Decided at meeting: 26/10/2020 - Lead Member for Environment and Community Safety Briefing
Effective from: 03/11/2020