MEASURES are being taken to improve financial monitoring at Worcester City Council to avoid a repeat of the recent budget crisis.

In Septemberr, the council revealed that it would have to take urgent action to avoid a £400,000 overspend on this year's budget.

At the time, chief finance officer Grahame Lucas revealed that new budget monitoring arrangements had proved "difficult to implement" because the finance department already had too much work to do.

But now work has started to ensure that that process is put into action.

All the council's heads of service are to be given more training in budgetary control and financial administration.

At a meeting of the cabinet, Coun Francis Lankester (Con) said portfolio holders needed to have confidence in the monitoring system.

"Clearly, we as amateurs don't run the services that the officers run. We deliberately delegate powers to them to run them.

"But if we, as amateurs, are to be in overall charge and have overall responsibility, we have to rely on this monitoring process and we must be confident of that process," he said.

"For many, our confidence has taken a knock, but I am reasonably satisfied that the measures taken are plugging that gap," he added.

Council chief executive David Wareing said it was the responsibility of officers to keep members informed, but added that cabinet members should also take some responsibility.

"We recognise that you, as elected members, can only monitor based on the information we give you.

"That doesn't mean the council members shouldn't probe and take responsibility for their portfolio," he said.

Coun Adrian Gregson (Lab) suggested that the training for service heads should be extended to cabinet members as well.

"What is missing is a real study of the way in which the cabinet runs the council," he said.

"Councillor Lankester can talk about being amateurs all he likes but the fact is that cabinet members are paid a specific responsibility allowance to recognise the enhanced role the play in running the council.

"They should not be waiting for the service managers to come to them and they should have a full understanding of the way the budget works."

The council leader, Coun Stephen Inman (Con), agreed on training but added that the monitoring process was also the responsibility of the scrutiny committees.

But Coun Geoff Williams (Lab) pointed out the committees could only scrutinise what was put in front of them.

"We are not party to decisions you have made with officers in other forums. Scrutiny must play a part but to do so the committees are going to need more information and at an earlier time than has previously been the case.

Work starts now on budget for 2003

WORK is starting early on next year's budget in which Worcester City Council has to make cuts of more than £1m.

The first public discussion on the cabinet's proposed measures to address the potential £1.1m deficit will take place at its meeting in November.

Council leader Councillor Stephen Inman said it was vital to get started earlier than last year to allow full scrutiny of the budget.

"Last year, the policy and review committees didn't get enough time to discuss it," he said.

The council will find out in December how much it will get from the Government.

But there were concerns that a reduction on last year's sum could cause problems. Coun Francis Lankester agreed.

"Whatever we in the cabinet have been through with all this is all for nothing if we get another lousy settlement from the Government," he said.

"The Government expects councils to increase spending by 5-6 per cent. Yet it gives us much less than that."

But Coun Adrian Gregson said the council would simply have to deal with whatever grant it got.

"We need to recognise that if the grant is not as good as we would have hoped, then maybe we are going to have to make some hard decisions," he said.

Too much was spent on temps

HEADS of service at Worcester City Council have overspent on employee budgets after bringing in temporary staff to cope with the pressure of work.

They have also spent too much on overtime costs, according to an interim report on the issue.

The £336,000 overspend was one of the major problems that led to urgent measures being taken last month to avoid a £400,000 overspend on this year's budget.

An investigation was launched and, though it is not yet complete, an interim report has been put before the cabinet.

"It has not been possible to have a completed, in-depth analysis but some of the broad implications have been brought up in this interim report," said council leader Coun Stephen Inman.

In the past it was assumed that the turnover of council staff would inevitably result in an underspend on the employee budget of around 2.5 per cent, which was then ploughed back into providing services. However, this year the system broke down.

Coun Simon Geraghty (Con) recommended that employee budgets should be set with no expectation of a saving, and this should be phased in over three years.

"Due to budgets being restrained, we need to rethink our policy," he said.

But he added that this would mean finding around £300,000.

"That has to be done by reducing budgets or increasing income. This is one of those issues that would benefit from a review committee."

The cabinet said it was minded to change the system subject to all the details being reviewed by the policy and resources committee.