Agenda item

To consider the Spalding Special Expenses Quarter 3 forecast outturn report for 2024-25,(report of the Chief Executive (Acting S151) to follow)

The Chairman introduced the Head of Finance to present the Spalding Special Expenses and Quarter 3 Forecast 2024-25 report.

The Head of Finance provided a summary of the Spalding Special Expenses and Quarter 3 Forecast 2024/25 report.

Succeeding the Quarter 2 Forecast which had predicted an overall underspend of £38,000, Quarter 3 Forecast prediction had decreased to an underspend of £21,500.

• The movements of the variation of those underspends were set out in the report, based on actual spend and actual income. These figures would be extrapolated into the forecast for the full year.
• The key movements since the Quarter 2 Forecast, included Ayscoughfee Leisure, which, due to criminal damage, showed a capital spend entry of £23.000 for replacement, maintenance and repair works to the soft play area within Ayscoughfee grounds. Owing to the nature of the surface of the soft play area, this was not covered by insurance, hence South Holland District Council bore the cost of any repairs.
• The Cemetery prognostic had shown an uplift of £15,000 since the Quarter 2 Forecast, which had been positively received.
• Halley Stewart had provided a significant saving, as previously communicated.
• Monkshouse Lane incurred an unexpected spend exceeding £9000. This was for an external contract, for tree maintenance costs, part of this expenditure had been offset by an underspend on utilities.
• The bottom line of the overall underspend was £21.588, once approved by cabinet, the funds would be transferred to the Spalding Special Expense Reserves.

The Head of Finance explained that notwithstanding the unexpected costs, the Spalding Special Expenses were still in a positive position. Included within the report was a table which set out the Spalding Special Expenses Reserves position.

• The Spalding Special Reserves position as of 20 April 2024 was £138,000.
• Funds derived from the Lawn Tennis Association had been transferred into the reserves and had been subsequently utilised during the financial year.
• The predicted forecast of £21.588 would be transposed to the Spalding Special Expense Reserves to accumulate an estimated balance at financial year end of £158,965.
• The Section 151 Officer recommended the balance of the reserves would to be set at £75,000, it was understood that the Spalding Special Expense Reserves were in excess of the recommended amount, showing the reserves to be in an excellent financial position.

The Head of Finance enquired if the members had any questions.

• As the Section 151 Officer had delegated authority to approve the draw down of the Spalding Special Expense Reserves, would the Spalding Town Forum be advised before any expenditure was made?
  • The Head of Finance conveyed that the Spalding Town Forum could make recommendations on how the funds could be utilised working alongside officers, however, ultimately any decision would be directed though the Portfolio Holder and Cabinet.
  • The Head of Finance confirmed that following officer recommendations, a minimum of £75,000 would be maintained in the Spalding Special Expense Reserves as a contingency.
• Could the Section 151 Officer spend the £75,000 Spalding Special Reserves contingency.
  • The Head of Finance verified that under the discretion of the Section 151 Officer, Portfolio Holder and Cabinet, funds could be utilised to cover unexpected spends up to a discretionary amount. The Section 151 Officer could approve expenditure of up to £75,000, to exceed this amount would require approval from Cabinet.

• It was noted that if a Spalding Town Council was formed, Spalding Special Reserves would not automatically be transferred over to the Spalding Town Council, as this would be an entirely new entity. The legality of creating a Town Council was beyond the remit of the Portfolio Holder – Strategic Planning and Assets.

Agreed

That the report be noted.

The Chairman thanked the Head of Finance for presenting the Spalding Special Expenses and Quarter 3 Forecast 2024/25 report.