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Agenda item

Proposed Revenue Budget 2018-19

Minutes:

The Accountant presented a report on the projected financial performance for the Crematorium for 2017-18 and sought approval from the Joint Committee for the proposed budget and fees and charges for 2018-19.

 

The Accountant stated that the anticipated budget deficit would be £35,000; however actual projected outturn as at the end of January is a surplus of £44,000 which would require a transfer to earmarked reserves.  She presented an explanation of the main variances between the Budget and Projected Outturn, which showed an underspend of £21,000 on employees; attributable to two vacancies for part of the year, which meant that additional Security Services had to be employed to cover these hours.  An overspend of £8,000 on Premises was attributable to an overspend on Business Rates of £18,000, offset by underspends on Day to Day Maintenance of £5,000 and Gas of £5,000.  A further overspend of £2,000 on Supplies, Services and transport was identified, which was made up of an overspend on Security Services of £20,000, offset by savings on Equipment Repairs of £10,000, Protective Clothing of £2,500, Purchase of Equipment £2,500 and Audit Fees of £2,100.  The underspend in Administration was due to lower costs in Facilities Management compared to the previous year. 

 

The Accountant informed the Joint Committee that included in the Capital Financing Costs is the Planned Maintenance budget of £350,000, where an underspend of £30,000 had been identified due to a delay in carrying out organ repairs of £20,000 and also attributable to an underspend on Infrastructure works of £10,000.  The organ repairs were scheduled to take place in 2018-19 and the sum of £5,000 would need to be provided in 2018-19 for the retention payment due on the Infrastructure works.  The Bereavement Services Manager outlined the repairs required to the organ which had been commissioned by a distinguished company NP Mander, in 1970.  She stated that the repairs which are essential had been postponed from 2017/18 in order to fully assess the repair strategy and procurement methodology, as the organ manufacturer may need to be involved in the procurement process. 

 

The Bereavement Services Manager clarified the position in relation to the standard cremation fee, which is not applied to under 18 year olds.

 

The Accountant informed the Joint Committee of a breakdown of the planned maintenance budget for 2017-18 of £350,000.  She stated that income is higher than budgeted by £32,000 as a result of increased cremation fees of £25,000 and income in relation to the sale of items of £7,000. 

 

The Accountant reported on the proposed revenue budget for 2018-19 where a net surplus of £373,000 was proposed.  All non-employee budgets had been reviewed and any necessary adjustments made to meet expected expenditure for 2018-19.  Employee budgets had been adjusted to reflect salary increments and to include a 2% uplift for the 2018-19 pay award.  She stated that the Business Plan for 2018-19 indicated a budget requirement of £75,000 to meet expenditure, which would be met from the Capital Financing Costs budget.  Income budgets had been prepared assuming a general increase in fees of 4%, based on the current levels of activity of 1589 cremations. 

 

The Accountant reported on the effect of the accumulated balance of the proposed budget for 2018-19, wherein an accumulated balance of £1,499,000 was projected as 31 March 2019.  This was considered to be sufficient in order to maintain the service in light of unknown demands or emergencies. 

 

The Accountant reported that capital expenditure would not require any loan or contribution from constituent authorities and items of a capital expenditure in 2018-19 would be directly funded from revenue contributions and the accumulated surplus from previous years.                  

 

RESOLVED           1) That the Joint Committee confirmed and approved the revenue budget and capital expenditure to be adopted for 2018-2019

                                2) That the Joint Committee approved the increase in fees and charges with effect from 1 April 2018 outlined in Appendix 1 of the report.

Supporting documents:

 

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