You are the team leader for a group of social workers who specialise in dealing with the needs of elderly persons in their homes. You have been told by your line manager that your team’s budgeted spending limit will be exceeded by the end of the year if you continue with the present level of activity. The major items of cost are: team members’ salaries, travel to clients’ homes for visits and a charge from the local authority for the provision of office facilities. Salaries have increased because of a national pay award not allowed for in the budget. Travel costs have increased over budget because of fuel price increases. The local authority has kept the charge for office facilities within the budget.

Your line manager has some discretion to make savings under one expense heading to match overspending under another. How will your team explain its performance in the end-of-year report?