Agenda item

Charter Trustees considered a report of the Treasurer that provided information onthe 2018/19 final revenue outturn (for copy see file of minutes).

The Treasurer reported that the actual net revenue expenditure for 2018/19 was £62,184, an underspend of £5,231 against a budget of £67,415. He confirmed that£6,855 would be a transfer from reserves, reducing the reserve balance to £63,417 as of 31 March 2019.

The Treasurer highlighted that Charter Trustees were now attracting bank charges due to Durham County Council changing bank accounts and were no longer the overarching authority for Charter Trustees. He added that the Finance Team were in discussions with the bank regarding the charges and suggested that Charter Trustees may be required to change bank accounts. The Treasurer would provide an update on the outcome at the next meeting.

Councillor Wilkes questioned why Charter Trustees had not been made aware of the additional bank charges sooner and given time to consider changing banks as the extra £2,000 was not in the original budget. The Treasurer explained that there had been an oversight when Durham County Council changed banks resulting in Charter Trustees being charged for the account as the County Council were no longer the overarching authority.

Councillor Hopgood felt that is was unreasonable to incur charges when the Charter Trustee account was permanently in credit. She added that the account was not a business account, therefore should not incur any costs at all.

Referring to the oversight, Councillor Hopgood highlighted that Charter Trustees are charged for administration and support services which covers back office costs and felt it was unacceptable to have an additional £2,000 added for bank charges. The Treasurer advised that the Finance Team were currently in discussions with the bank to seek reimbursement. He assured that if the Finance Team were unsuccessful with the bank, then Charter Trustees would be reimbursed by the County Council and alternative banking arrangements would be sought.

Councillor Hovvels noted that banks often waive charges for charitable organisations and agreed with the course of action to ask to waive charges on this occasion.

The Treasurer confirmed that a proposal for alternative bank arrangements would be reported at the next meeting.

Resolved:-

i)             That the final outturn position for the financial year ended

31 March 2019 be noted;

ii)            That an update on bank charges and proposal for alternative bank arrangements be reported at the next meeting.