Agenda item

A report by the Strategic Finance Manager.

Prior to the report being tabled the Chairman welcome two new officers to the BTAC Committee. The new BTAC Finance Officer Jenny Mackin and the new Finance Officer Carl Holland.

The BTAC Finance Office presented the report and confirmed that appendix A outlined the details of the income and expenditure relating to BTAC for quarter 1 2024/25, along with any identified variances.

The forecast position was an overspend of £36,258 which had been offset by a contribution from reserves to ensure a breakeven position.  The overspend was made up of minor cost variances in business rates and electricity, along with a small amount additional income for Mayfair.  The overspend included the efficiency savings target of £36,455 which was yet to be identified.

The opening balance of the BTAC reserve on 1^st April 2024 was £207,611.  After considering the S151 Officer’s recommendation of a minimum reserve of £70,000, the available usable reserves were £137,611.  Details of the use of the reserves for 2024/25 were outlined in Appendix A.  The final forecast balance of reserves following the detailed spend outlined in Appendix A was £77,552. Further outlined in appendix A were the further details stating the basis of calculations for any recharge costs to BTAC, as requested by the committee at the previous meeting.  As an example, members were advised the recharge costs in relation to repairs and maintenance were budgeted based on historic costs, but the outturn was based on the actual costs for the year.  Recharge costs relating to finance support services were based on estimated percentages of staff time and any personnel support services costs were calculated based on FTE’s.

Members comments included the following:

On questioning who the responsible body was for agreeing any spending of the BTAC reserves, a member was advised it was the Section 151 Officer.  In response members questioned why such a decision was not made through the committee with a number of members along with the Chairman stating that they felt that any future decision in respect of spending of BTAC reserves, be tabled through the committee, for their input and decision making as the responsible body.

Concerns were tabled by Members regarding lack of justification on the figures and charts. The Chairman requested that the Finance Officers revise the figures and resubmit a more detailed report. BTAC Financial Officers noted Members requests and reassured them that Q2 reports and further reports moving forward would be tabled in a more transparent and meaningful manner.

At this point in the procedures, a Member tabled an additional recommendation to the report in that moving forward the Committee agree to delegate its authority to make urgent decisions, to the Chairman (and in their absence, the Vice Chairman) be consulted, in liaison with the Portfolio Holder for Finance and the Section 151 Officer, on any spend from the reserves.

Further comment questioned the change of amendments in respect of their position within the constitution with a suggestion that the constitution be reviewed. The Chairman noted the importance of fully understand the Committee’s role and authority.

A member moved an additional condition to that tabled within the report, in that the committee agree the delegation to the Chairman (and in their absence the Vice Chairman) be consulted, in liaison with the Portfolio Holder and Section 151 Officer on any spend taken from the reservices in an urgent manner.

Resolved:

1. That the Committee noted the financial position as at 30^th June 2024 and the reserve position as at 30^th June 2024.

2. That the Financial Team produce a more detailed budget by January 2025. 

3. That the Committee approved the additional recommendation, that the Chairman of the Committee, or in their absence the Vice Chairman of the committee, is notified when any deviation from the budget is taken in an urgent manner.