Minutes:
The Committee considered the undernoted report:
“1.0 Relevant Background Information
1.1 The Strategic Policy and Resources Committee agreed on 18 June 2010 that:
· The Council would produce financial reporting packs for the Strategic Policy and Resources Committee and each Standing Committee on a quarterly basis
· The Budget and Transformation Panel would also receive monthly financial updates if there were any significant issues to report.
1.2 The reporting pack contains a summary dashboard of the financial indicators and an executive summary explaining the financial performance, a copy of which has been circulated. It also provides a more detailed explanation of each of the relevant indicators covering outturn for the quarter, payment of creditors, recovery of debt and procurement compliance.
2.0 Key Issues
2.1 Current and Forecast financial Position 2013/14
The financial position for Quarter 1 is a net departmental under-spend of £364k (1.2%). The forecast year end departmental position is an under-spend of £471k (0.4%).
2.2 The financial reporting pack contains more detail on the quarter 1 and forecast positions. It should be emphasised that it is very early in the financial year and therefore it is difficult to make an accurate forecast of the year end financial position. It should also be noted that the forecast position of an under spend of £471k, represents only 0.4% of the Council’s annual budget. For this reason and that the Council has already committed in year allocation amounts of £250k for the NI Hospice and £120k for the Royal Scottish Pipe Band Championships, it is recommended at this stage no further in year reallocations are made.
2.3 Capital Financing
The capital financing budget is £10.14m. This budget is forecast to break even and will be used to finance the capital programme and feasibility work to support the Investment Programme.
2.4 Rate Income
The initial forecast by LPS is that BCC would have a favourable outturn of £1.m. BCC officers will be working closely with LPS to ensure that the in year forecast takes account of issues such as outstanding appeals, vacancy inspections and the impact on businesses going into administration. Given that this is a quarter 1 forecast by LPS and that this validation work will have to be undertaken by the Council, it is recommended that no decision regarding the allocation of the resources arising from the forecast positive settlement by LPS be taken at this stage. A detailed report on rating issues will be brought to the Committee in September.
2.5 Investment Programme
Committed expenditure approved by the Strategic Policy and Resources Committee for the 3 year Capital Programme stands at £35.590m, leaving £39.410m of schemes within the 3 year programme at the uncommitted or emerging project stage.
2.6 Committed expenditure on LIF projects currently stands at £4.6m, leaving a balance of £400k in the local investment fund.
2.7 The amount of levered external funding for the Investment Programme which has been agreed in principal is £65.073m, with £19.053m of these funds confirmed through letters of offer.
2.8 Actual capital expenditure for the period was £2.057m, while non-recurring expenditure was £0.52m.
2.9 Other Financial Indicators
The Quarter 1 average for debt under 90 days old is 50.4% which is below the target of 60% however the overall debt reduced from £4.2m to £3.7m during the quarter.
2.10 The average number of creditors paid within 28 days for quarter 1 was 80.0%, which exceeded the target of 75%
3.0 Resource Implications
3.1 The financial position for Quarter 1 is a net departmental under-spend of £364k (1.2%). The forecast year end departmental position is an under-spend of £471k (0.4%).
4.0 Equality and Good Relations Implications
There are no equality and good relations implications associated with the report.
5.0 Recommendations
Members are asked to:-
· Note the quarter 1 financial report.
· Agree that no reallocations are considered for quarter 1.
7.0 Key to Abbreviations
LPS: Land and Property Service”
The Committee adopted the recommendations.