Agenda item

Joint Report of the Interim Corporate Director of Neighbourhood Services and the Interim Corporate Director: Resources / Treasurer to the Joint Committee.

The Principal Accountant referred Members to Financial Monitoring Report, as set out in the usual format, for the period to 31 August 2016 and with projected outturn to 31 March 2017 (for copy see file of minutes).

The Joint Committee noted that there was a projected revenue outturn surplus of £171,805 more than the budgeted position, with the reasons for the major variances set out in detail within the report.  It was added that one of the main reasons was a saving as a result of the successful appeal against the rateable value of the Crematorium, which had been brought to Members attention at the last meeting.  The Principal Accountant added that the other reason, and which accounted for the majority of the projected surplus was an increased income due to a projected increase in the number of cremations.  It was added that upon looking at the Authority’s other facility at Mountsett and speaking to other Local Authorities as regards their experiences, the increase in cremations was in line with other facilities across our region.

Members noted the position in terms of the Capital Programme with the remaining           Phase 3 and 4 Redevelopment Works, and the projection for this to be as budgeted           at £566,040.

Members noted a projected total reserve of approximately £1.34 Million at the year-end, giving a strong financial position.  The Principal Accountant noted that once the improvement works had been completed, then reserves would build up steadily, ready for further cremator replacement at the end of the life-cycle of the current equipment.  It was added that given the strong financial position, and the relatively low financial impact of the Service Asset Management Plan, Members may wish to look at options in terms of the distribution of surplus to Durham County Council and Spennymoor Town Council.  The Principal Accountant suggested that as the figures were projections at this point, Members may wish to wait until the year end before looking at such options as regards distribution of surplus.

Resolved:

That the April to August 2016 Financial Monitoring Report and associated provision revenue and capital outturn positions at 31 March 2017, including the projected year end position with regards to the reserves and balances of the Joint Committee, be noted.