Agenda item

            The Director of Finance and Resources submitted for the Committee’s consideration 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 3 is a net departmental under-spend of £1.3m (1.5%). The forecast year end departmental position is an under-spend of £646k (0.5%) which after the reallocation of £275k to fund the ‘Christmas in Belfast Campaign’ agreed by the Committee on the 15 November 2013, provides a Committee level under spend of £371k (0.3%)

2.2    The main factors leading to the year-end under spend are the receipt of additional income in the Building Control Services arising from building notices, regularisation certificates, property certificates and LPS work together with in year employee cost savings arising from slippage in the recruitment for vacant posts.

2.3    Rate Income

         The Land and Property Service (LPS) are forecasting a positive settlement of £416k for the Council which compares to the Quarter 1 forecast of £900k and the Quarter 2 forecast of £395k. This would result in an overall revenue surplus for the Council of £787k at the year-end.

2.4    Reserves

         The general reserves balance at the start of the financial year was £13.3m. Based on the forecast movements, including the allocation of £1.15m to the Leisure Transformation Programme as agreed by Committee on the 23 August 2013, general reserves are expected to be £12.8m at the end of the financial year.

         Investment Programme

2.5    Committed expenditure approved by the Strategic Policy and Resources Committee for the 3 year Capital Programme stands at £39.4m, leaving £35.6m of schemes within the 3 year programme at the uncommitted or emerging project stage.  

2.6    Committed expenditure on LIF projects currently stands at £4.8m with actual expenditure of £571k incurred at the end of quarter 3.

2.7    The amount of levered external funding for the Investment Programme which has been agreed in principal is £69.9m, with £29.5m of these funds confirmed through letters of offer at the end of quarter 3. Members will be aware that the Council has recently received two further letters of offer relating to the Waterfront Hall Exhibition and Conference Centre and the Tropical Ravine which has increased the confirmed amount of levered external funding to £50.4m.

2.8    Actual capital expenditure for the period was £4.9m, while non-recurring expenditure was £669k.

         Other Financial Indicators

2.9    The percentage of average for debt under 90 days old increased during the quarter to 71.9% which was above the target 65%.

2.10  The average number of creditors paid within 28 days for the year to date was 78.0% compared to a target of 80%

3.0    Resource Implications

3.1    The forecast year end revenue position is a surplus of £787k, arising from a forecast departmental under spend position of £371k and a forecast positive LPS settlement of £416k.

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 consider setting aside an amount of £300k from the year end surplus to meet two specific areas of non recurring expenditure in 2014/15 as follows:-

·    £250k to fund the net expenditure of the Shadow Council during the period June 2014 to March 2015. A detailed budget for the Shadow Council will be presented to the Statutory Transition Committee in March 2014.

·    £50k contribution to the Election Fund maintained by the Council. The additional contribution will offset the increased election costs in 2014 arising from the boundary changes.

5.2    Agree that no further reallocations of the forecast under spend be made at this stage given that the remaining forecast surplus for both the Council’s budget and the rates position are close to break even.”

            The Committee adopted the recommendations.