Agenda item

Joint Report of the Corporate Director of Regeneration and Local Services and the Corporate Director of Resources – Principal Accountant.

The Chairman introduced the Principal Accountant, Paul Raine to speak to Members in relation to the Quarter Two, 2019/20 Revenue and Capital Outturn (for copy see file of minutes).

The Principal Accountant reminded Members of the areas reported upon, the General Fund Revenue Account, and the Capital Programme for the Regeneration and Local Services Service. 

The Principal Accountant referred Members to the information relating to Quarter Three 2018/19 with the service reporting a forecast underspend of approximately £0.452 million, against a revised budget of £61.511 million.  Members noted the major variances were set out within the report and that the service grouping was on track to maintain spending within the cash limit and more details were contained within Appendix Two to the report.

As regards the Capital Programme, the Principal Accountant explained that the revised budget stood at £67.042 million, with a breakdown of the major capital projects given at Appendix Three to the report.  Members noted the spend to date of £12.372 million.

The Chairman thanked the Principal Accountant and asked Members for their comments and questions.

Councillor J Atkinson noted the pension deficit contribution of approximately £792,000 and asked for further details.  The Principal Accountant noted that the scheme was to cover all persons and that when contributions are made, they go directly to the pension fund.  He added as more people have left the Authority, for example early retirement or MTFP savings, there were less contributions to the scheme.

Councillor E Adam noted at page 72, Appendix Two of the report, there was reference to Economic Development and an overspend on employment and skills support.  He asked why the money had not been recovered.  The Principal Accountant noted that he would make enquires as regards this, though he believed it had been reported back to Committee.  Councillor E Adam could not recall it having been reported to Members at Committee.  The Principal Accountant noted that he believed the programme was outcome based, with funds contingent upon those outcomes.

Councillor J Atkinson noted a forecasted variance in the Business Durham budget and asked for more information.  The Principal Accountant noted that this was due to high occupancy and additional income, adding that the budget was prudent and based upon good pricing to ensure good levels of occupancy.

Councillor T Tucker noted the “unbudgeted temporary staff” set out within the Corporate Land and Property section and asked what this was for.  The Principal Accountant noted consultancy, temporary or agency would not be budgeted within staffing budgets and added he would look to find out more information.  Councillor T Tucker noted this would be helpful as there was a number of staff vacancies listed within the same paragraph as those unbudgeted staff and the consultancy spend.

Councillor J Atkinson asked in relation to the consultancy agency overspend cost of £210,000 as set out on page 74, for more detail to be provided, a breakdown of what makes up that cost/overspend.

Resolved:  

That the report be noted.