Agenda item

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

The Joint Committee considered a report of the Corporate Director Neighbourhood Services and Corporate Director Resources: Treasurer to the Joint Committee which set out details of income and expenditure for the period 1 April 2012 to 31 December 2012, together with the forecast outturn position for 2012/13, highlighting areas of over / under spend against the revenue budgets at a service expenditure analysis level (for copy see file of minutes).

The report further set out details of the funds and reserves of the Joint Committee at 1 April 2012 and the projected position at 31 March 2013, taking into account the forecast financial outturn projection of income and expenditure this year.

The Head of Finance (Financial Services) advised that the projected outturn showed a surplus of £392,334 against a budgeted surplus of £313,250, £79,084 more than the budgeted position. Variances for any significant variances were detailed within the report.

Details were also provided regarding earmarked reserves and it was reported that contributions from the revenue surplus towards earmarked reserves were forecast as £79,084 additional to budget. Therefore the retained reserves of the CDCJC at 31 March were forecast to be £644,065 along with a General Reserve of £424,060, giving a forecast total reserves and balances position of £1,068,125 at the year end.

The Head of Finance (Financial Services) advised that the current level of reserves was held at between 30/40% however moving forward it may be prudent to reduce this to 20/30%. He explained that if the CDCJC agreed to certain works within the feasibility study in the future this may result in loss of business whilst works were carried out, therefore more prudent financial planning would be beneficial to cover for any loss of income during that time.

D Singleton, Accountant (Spennymoor Town Council) referred to the significant challenges which had been faced by STC during their budget setting process and asked that during the finer accounts process for 2013/14 that the CDCJC review the level of reserves held and justify why currently held at 30/40%. STC had commented that if the level of reserves held was reduced that consideration be given to redistributing this between the two authorities in line with the agreement.

In response the Head of Finance (Financial) Services advised that further details on the general reserves policy and explanations for its current level be brought to the next meeting of the Joint Committee in April 2013.

Resolved:

That the content of the report be noted.