Agenda item

Joint Report of the Corporate Director of Regeneration and Economic Development and Corporate Director – Resources – Finance Manager, Resources.

The Chairman introduced the Finance Manager, Resources, Azhar Rafiq to speak to Members in relation to the Quarter 4 2014/15 and Quarter 1 2015/16 Revenue and Capital Outturn (for copy see file of minutes).

The Finance Manager noted for the Quarter 4 2014/15 Revenue and Capital Outturn the areas that were reported upon: the General Fund Revenue Account, the Housing Revenue Account (HRA) and the Capital Programme for the RED Service. 

Members noted the service was reporting a cash limit underspend of £1.395 million at Quarter 4 2014/15 against a revised annual General Fund Revenue Budget of £44.077 million.  Members noted the major variances fell within Planning and Assets, with the detailed explanations as set out within the report.  The Committee were informed that the service grouping had delivered against Medium Term Financial Plan (MTFP) savings.

The Committee noted that the HRA for 2014/15 represented the last year of the Council as landlord with the stock now having been transferred to the new County Durham Housing Group on 13 April 2015.  It was added that for 2014/15 there were no major issues and the variances within the HRA being set out within the report, noting a surplus of £17,879.

As regards the Capital Programme 2014/15, the Finance Manager explained that the actual spend was reported as £76.078 million split between the General Fund (£33.252 million) and HRA (£42.826 million).  Members noted a breakdown of the major capital projects and further details were given at Appendix 3 to the report.

The Chairman thanked the Finance Manager and asked Members for their questions on the Quarter 4 finance report.

Councillor M Davinson thanked the Officer for the details of the Capital Programme activities as set out at Appendix 3, noting the information was interesting and useful and added that similar detailed breakdowns would be useful at other Committees.

Councillor E Adam noted that the actual spend in relation to DurhamGate represented only 12% and asked for reasons for this.  The Finance Manager noted that he would have thought it was simply a profiling issue, with the balance being carried forward into the 2015/16 budget.

The Finance Manager noted for the Quarter 1 2015/16 Forecast of Revenue and Capital Outturn the areas that were reported upon were the General Fund Revenue Account and the Capital Programme for the RED Service. 

Members noted the service was reporting a cash limit underspend of £0.293 million at Quarter 1 2015/16 against a revised annual General Fund Revenue Budget of £24.959 million.  It was explained that a proportion of the budget in respect of Transport, an element that was received as grant, now fell under the responsibility of the NECA as Transport Authority, this accounting for the reduction in this budget.  Members noted the variances within the budget, with the detailed explanations as set out within the report.  The Committee were informed that the service grouping was on track to deliver against Medium Term Financial Plan (MTFP) savings for 2015/16 of £1.3 million.

The Committee were reminded that subsequent to the transfer of housing stock, a separate ring-fenced HRA was no longer required, although it was noted that there would be some residual transactions reflecting a short period of activity in 2015/16, and that some associated costs in terms of delivering stock transfer had been met from retained reserves.

As regards the Capital Programme 2015/16, the Finance Manager explained that the actual spend for the first 3 months was reported as £3.600 million with the revised budget being £40.612 million.  Members noted a breakdown of the major capital projects in terms of 2015/16 were given at Appendix 2 to the report.

The Chairman thanked the Finance Manager and asked Members for their questions on the Quarter 1 finance report.

Councillor H Nicholson asked what the line within the report under transport referred to, noting an underspend of £13,000 in relation to legal costs for Durham Tees Valley Airport. 

The Finance Manager noted that DCC was a shareholder, as were several other Local Authorities, and this represented where the responsibility lay as a shareholder, within the remit of the Head of Transport.

Resolved:   

That the reports be noted.