{meta} Agenda for Lead Member for Finance and Support Services Briefing on Thursday, 27 August 2020, 10.15 am

Agenda and decisions

Contact: Claire Edwards 

Items
No. Item

1.

Apologies for absence.

2.

Declarations of interest.

3.

Items for Decision (Part 1 - Open to the Public):

3a

Fleet Replacement: Capital Programme Virement. pdf icon PDF 74 KB

Decision:

Salford City Council - Record of Decision

 

I, Councillor Hinds, Lead Member for Finance & Support Services, in exercise of the powers contained within the Council Constitution, do hereby:

 

Approve the virement of £1.1m within the 2020/21 Place directorate capital programme to accelerate the Council’s fleet replacement programme.

 

The Reasons are capital resource of £1.1m was previously assigned against Environment and Regulatory services that will not be spent by March 2021. As a result, capital is to be re-prioritised to accelerate and increase the Council’s fleet replacement programme that sits under Environment in 2020/21. 

 

Options considered and rejected were resource is sought from Council’s 21/22 capital programme.

 

Assessment of risk

Low:  Any delay in agreeing the virement reduces the opportunity to purchase additional vehicles at an already agreed price with the supplier held until the 31st August 2020 as an extension of the existing agreed contract.

 

Low: If the virement is not agreed, there will be an ask to the Council from the capital budget for 2021/22.  Will also result in the Council having to continue to finance maintenance and repair costs of the existing refuse vehicles at circa £350k per year.

 

The source of funding is 2020/21 Place capital programme.

 

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 (g) 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  ...  view the full decision text for item 3a

4.

Exclusion of the Public.

5.

Items for Decision (Part 2 - Closed to the Public): No items.