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. 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 2 is a net departmental under-spend of £911k (1.5%). The forecast year end departmental position is an under-spend of £644k (0.5%) which is well within the acceptable variance limit of 3%. Members should note that the forecast includes cover for the committed funding of £250k for the NI Hospice.
2.2 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. A detailed half year capital programme report is included on the agenda.
2.3 Rate Income
The quarter 1 forecast by LPS was that BCC would have a favourable outturn of £1.m. The quarter 2 forecast was initially set at £900k favourable, but this has recently been adjusted to £395k favourable, following the settlement of a major rating appeal.
2.4 Reserves
The general reserves balance at the start of the financial year was £13.3m. Based on the forecast movements included in this report general reserves are expected to be just over £13m at the end of the financial year.
2.5 Investment Programme
Committed expenditure approved by the Strategic Policy and Resources Committee for the 3 year Capital Programme stands at £43.753m, leaving £31.247m of schemes within the 3 year programme at the uncommitted or emerging project stage. A half year investment programme update report is included on the agenda.
2.6 Committed expenditure on LIF projects currently stands at £5m. At the end of quarter 2, actual expenditure was £297k and 33 of the recommended projects, totalling £2.062m, have progressed through the due-diligence process.
2.7 The amount of levered external funding for the Investment Programme which has been agreed in principal is £69.905m, with £19.053m of these funds confirmed through letters of offer.
2.8 Actual capital expenditure for the period was £3.5m, while non-recurring expenditure was £0.4m.
2.9 Other Financial Indicators
The percentage of average for debt under 90 days old increased during the quarter to 57.3% which was below the target of 65%. However the overall debt reduced from £3.8m to £3.4m during the quarter.
2.10 The average number of creditors paid within 28 days for quarter 2 was 78.3%, compared to a target of 80%
3.0 Resource Implications
3.1 The forecast year end departmental position is an under-spend of £644k (0.5%). At a special meeting of the Strategic Policy and Resources Committee on the 15 November 2013 it was agreed that £275k of funding should be provided to support the ‘Christmas in Belfast Campaign’. If this decision is ratified by Council, the forecast year end under spend presented in this report will be reduced by a further £275k to £369k (0.28%).
3.2 It is recommended that no further reallocations of the forecast year end under spend are made given that both the Council’s budget and the rates position are close to break even.
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 contents of the quarter 2 financial report.
· Agree that no reallocations of the forecast under spend be made at this stage given the forecasts for both the Council’s budget and the rates position are close to break even.”
The Committee adopted the recommendations.