FIN(4)-03-12 Paper 2
Jocelyn Davies AM
Chair
Finance Committee
National Assembly for Wales
Cardiff Bay
CF99 1NA
8 February 2012
Dear Jocelyn
Supplementary Budget 2011-12
I am writing to advise the Committee that the Commission is submitting a supplementary budget as part of the Welsh Government’s submission in February 2012.
The change we are seeking is the return of the unused election budget. The 2011-12 Budget provided for separate funds to accommodate the one-off nature of election costs. The funds agreed were £3.460m for Assembly Members and £0.655m for Assembly Services. This budget was estimated on the basis of 30 Members not returning to the Assembly whereas the actual figure was 23 Members resulting in a lower call on resettlement grants, winding up allowances, redundancy payments as well as new Member start-up costs.
The Budget outlined that the Commission would seek to return any excess to the Welsh block through the supplementary budget route. Following Commissioners’ agreement, we are proposing to return £1.8m of the Assembly Members’ £3.460m election budget. The total cost claimed by Assembly Members has been in the order of £1.6m. In addition to there being fewer new Members than estimated, those Members who stood down or were not re-elected did not claim as many costs as budgeted.
This budget change effects Tables 1 and 4 as well as Appendix 1 and Annex C in the 2011-12 budget. I attach restated tables for your convenience. I confirm that no other changes are being made to the Commission’s budget.
If you would like to meet to discuss any aspect of this budget change, please let me know.
Yours sincerely
Claire Clancy
Prif Weithredwr a Chlerc/Chief Executive and Clerk
Cynulliad Cenedlaethol Cymru/National Assembly for Wales
cc Angela Burns AM, Assembly Commissioner
Table 1: The Assembly Commission 2011-12 Budget
|
|
£000 |
|
Resources other than accruing resources for use by the National Assembly for Wales Commission on revenue and capital costs associated with the administration and operation of Assembly services to support the National Assembly for Wales (“the Assembly”); promotion of the Assembly including payments to the Electoral Commission and others; payments in respect of the Commissioner for Standards and Remuneration Board; any other payments relating to functions of the Assembly or functions of the National Assembly for Wales Commission. |
32,328 |
|
Resources other than accruing resources for use by the National Assembly for Wales Commission in respect of decisions of the Remuneration Board. |
14,694 |
|
Annually Managed Expenditure for use by the National Assembly for Wales Commission in respect of Assembly Members’ Pension provision. |
500 |
|
Accruing resources for retention pursuant to section 120(2) of the Government of Wales Act 2006 and use by the National Assembly for Wales Commission: · from the disposal of fixed assets and other capital income for use on the purchase or acquisition of fixed assets; or · rental income; gifts; grant support; recharges and income from commercial sales and other services provided to the public or others for use on administrative costs of the Assembly. |
260 |
|
Amount to be issued from the Welsh Consolidated Fund to meet the anticipated amounts falling due for payment in the year in respect of the above services and purposes less expected retainable receipts and recoverable VAT. |
44,918 |
|
Table 4 - Indicative Budget |
£000 |
||||
|
|
2010-11 |
2011-12 |
2012-13 |
2013-14 |
2014-15 |
|
Assembly Members |
13,380 |
13,034* |
13,041 |
13,126 |
13,130 |
|
% cut to real term budget |
4.4% |
2.2% |
1.9% |
2.5% |
|
|
Equates to reduction |
600 |
293 |
254 |
337 |
|
|
One–off Election Costs |
1,660 |
- |
- |
- |
|
|
Total DEL Budget |
13,380 |
14,694 |
13,041 |
13,126 |
13,130 |
|
AME Budget |
500 |
500 |
500 |
500 |
500 |
|
* In comparison, the 2010-11 budget estimated £13.923m for 2011-12. |
|
||||
Appendix 1 - Assembly Members’ 2011-12 Budget
Budget analysed by type of expense and income
|
|
£000 |
£000 |
|
|
2011-12 |
2010-11 |
|
Revenue expenditure |
|
|
|
AM Salary Related Costs |
For Remuneration Board to confirm
|
5,406 |
|
AMSS Salary Related Costs |
6,222 |
|
|
AM Car Hire |
50 |
|
|
AM Own Car Mileage |
160 |
|
|
AM UK T&S
|
81 |
|
|
AM Overseas T&S |
61 |
|
|
AM Family Travel |
9 |
|
|
AMSS T&S |
24 |
|
|
AM Office Costs Allowance |
850 |
|
|
AM Additional Costs Allowance |
484 |
|
|
PO & DPO T&S |
6 |
|
|
Assembly Commissioners' expenses |
1 |
|
|
Commissioner for Standards (2010-11 budget only) |
- |
26 |
|
NET REVENUE EXPENDITURE |
13,034[1] |
13,380 |
|
Capital Expenditure |
- |
- |
|
NET CAPITAL EXPENDITURE |
- |
- |
|
Election costs
Election Costs
|
|
- - |
|
|
|
|
|
Total Resource requirement |
14,694 |
13,380 |
|
|
|
|
|
Annually Managed Expenditure (AME)
|
|
|
|
Assembly Members’ Pension provision |
500 |
500 |
Annex C - Reconciles the net resource requirement to the cash drawing requirement from the Welsh Consolidated Fund
|
|
|
|
£000 |
|
|
2011-12 |
2012-13 |
2013-14 |
|
Members Net Revenue Requirement |
|
13,041 |
13,126 |
|
Commission Net Revenue Requirement1 |
31,212 |
30,938 |
31,145 |
|
Net Capital Requirement |
1,116 |
750 |
750 |
|
Assembly Members’ Pension provision |
500 |
500 |
500 |
|
Adjustments: |
|
|
|
|
Depreciation |
(3,254) |
(3,300) |
(3,300) |
|
Impairments |
- |
- |
- |
|
Movements in provisions |
(500) |
(500) |
(500) |
|
Profit/loss on sale of assets |
- |
- |
- |
|
Movements in stocks |
- |
- |
- |
|
Movement in debtors and creditors |
1,150 |
- |
- |
|
Use of provisions |
- |
- |
- |
|
Other |
- |
- |
- |
|
|
|
|
|
|
Net cash requirement for issue from the Welsh Consolidated Fund |
|
41,429 |
41,721 |
1 Assumes Accruing Income of £0.260 million year on year