Issue - meetings

Budget Virement Process

Meeting: 16/04/2015 - Corporate Resources Overview & Scrutiny Committee (Item 89)

89 Budget Virement Process pdf icon PDF 67 KB

Additional documents:

Decision:

            That the Committee are assured that there are adequate procedures in place governing the virement of budgets. 

 

Minutes:

The Corporate Finance Manager introduced a report to provide an overview of the rules and procedures in place governing the virement of budgets and the provide assurance that there are adequate budget management arrangements in place. 

 

                        He detailed the background to the report and highlighted the definition of virement as referred to in the report.  There were two main types of virements and these were detailed and examples of both were provided.  The vast majority of budget changes were in relation to accounting adjustments to deal with the effects of significant change.  The Corporate Finance Manager explained that one of the key principles underpinning the control of budget virements was that any virement in excess of £75,000 had to be submitted to Cabinet for approval.  The Internal Audit report on Financial Management and Budgetary Control in April 2014 gave substantial assurance that controls were in place but it was recommended that a documented process be put in place for undertaking virements.  Overall control of budget virements was undertaken within the Strategy, Accounting and Systems team which tracked the movements and ensured that any virements that changed the purpose of the funding were subject to the relevant approval.  As Section 151 Officer, he was satisfied that there were adequate arrangements in place.  Appendix 1 detailed all of the virements for 2014/15.

 

                        In highlighting the content of the appendix, Councillor Richard Jones queried what was listed.  In response, the Corporate Finance Manager responded that all accounting adjustments were detailed in appendix 1 and that there had not been any formal budget virements that changed the purpose in 2014/15. 

 

                        Councillor Tim Newhouse raised concern about actions over virements that had taken place in the past and sought assurance that it would not be repeated.  In response, the Internal Audit Manager stated that a review of virements had been undertaken and that account movements that were not formal virements had been identified but this was not an error.  He was satisfied with the overall control of virements.    

 

            RESOLVED:

 

            That the Committee are assured that there are adequate procedures in place governing the virement of budgets.