Agenda item

The Committee gave consideration to the report and appendices delivered by the Principal Accountant as set out in the report (at pages 63 – 72 but excluding page 68 having been included in error) which should to be read together with these minutes as a composite document.

He advised that an under-spend in the general fund was reported in Committee expenditure owing to accounting regulations in terms of how revenue grants appropriated to the reserves for service-specific purposes are to be publish in the final accounts so to provide a more comparative analysis. The grants were said to be appropriated as they were due to be spent next year.

A number of medium-sized under-spends across the budget were all identified (at page 66), most notably in:

(i)         Community Development due to salary compression and the movement of the senior systems budget to another area;

(ii)        Brooks Hill due to a significant increase in income of 27% since 2014/15 with parts of the expenditure transferred to the Capital Programme so to discharge some s. 106 monies;

(iii)       Day Centres due to the non-payment of a group’s management fee at Bassett Street;

(iv)       Transport of approximately £20,000 due to fewer vehicle repairs, re-shaping of purchases and lower fuel costs in the last 12 months; and

(v)        Refuse and Recycling.

A fall of approximately £100,000 in recycling dispoal income was reported as a result of adverse market forces and the economy. The take-up of green wheeled bins for garden waste has seen a reduction of £28,000 in spending on bags in addition to new income streams of £8,000 through the purchase of extra bins, with the savings materialising earlier than expected and/or budgeted for.

A Member enquired as what the variance of £7,000 under the Grand Union Canal Footbridge Scheme related to (at page 71) and sought assurances that the £48,000 under the same scheme (at page 74) still remained in the budget and was not subject to time-limits. The Principal Accountant advised that it was agreed at a meeting of the Policy, Finance and Development Committee in February 2015 that some of Capital Programme Budget was to be carried over into 2015/16, inclusive of the £48,000. The variance was a result of intended initial works on the scheme which did not take place and the £7,000 was to be carried forward into next year (subject to approval). The availability of s. 106 funds was said to be monitored to ensure they were spent in time.

A Member enquired as to whether the £67,000 apportioned to reserves would be returned. The Principal Accountant confirmed this would be the case, with some attributable to the under-spend on Sports Services Commissioning.

A Member enquired as to reduction in the fees of the bowling clubs. The Principal Accountant confirmed that the income budget had been reduced by approximately £1,000 so that teams were able to play without paying a fee. He stated that the variance was too insignificant for it to be featured in the report.

A Member enquired as to whether any of the allocated funds under the Play Area Refurbishment Scheme were to be invested in Ellis Park in Oadby. The Principal Accountant advised that definite answer would be sought from colleagues and the relayed to the Member in due course.

A Member stated that the effective under-spend of one million pounds on the Housing Revenue Account ought to be categorised as a capital, as opposed to a revenue, spend. The Principal Accountant advised that this was due to the rescheduling of capital works across the years which, since the introduction of the new finance regime for Housing, had allowed for a substantial revenue contribution to the Capital Programme to be budgeted. He noted that the contribution increased the general housing revenue account reserve, however it was intended that this would be spent at the appropriate time nonetheless.   

RESOLVED THAT: 

1.         The reported outturn be noted by Members.

2.         The requested revenue and capital carry forwards as set out in Appendix 5 be noted by Members.