Agenda item

            The Committee considered the undernoted report:

“1.         Relevant background information

            The Strategic Policy and Resources Committee agreed on 18th June 2010 that:

·         the council would produce financial reporting packs for the Strategic Policy and Resources Committee and each Standing Committee on a quarterly basis

·         the Budget and Transformation Panel would also receive monthly financial updates if there were any significant issues to report.

            The reporting pack contains a summary dashboard of the financial indicators and an executive summary explaining the financial performance of Parks and Leisure Committee in the context of the financial performance of the overall council.  It also provides a more detailed explanation of each of the relevant indicators covering the year to date and the year end forecast position.

            The style and layout reflect much of the discussion and feedback arising from the members’ financial training at the end of September 2010.  As we previously advised the committee, we will continue to develop the style and contents of the reports in liaison with members.

            Central finance and our departmental management team have worked together to develop the information within this financial reporting pack.

2.         Key issues

            Current and forecast financial position 2010/11

            The current year to date financial position as at quarter 3 for Parks and Leisure Committee is an under-spend of some £0.15m, or 0.9% of budget (quarter 2: over-spend of £0.2m), with a forecast end of year over-spend of some £0.1m, or 0.4% of budget (quarter 2: £0.2m). 

            The reasons for this forecast over-spend continue from quarter 2 as follows:

·         An overall employee budget over-spend (3% at quarter 3) which is expected to continue; as reported last quarter, operational reviews are underway within the department and recommendations will be presented to committee over the next number of months to finalise structures and methods of working to help reduce the need for agency and overtime.

·         Utility costs in relation to water charges for both Parks and Leisure are over budget, Parks by £203k and Leisure by £103k; as reported previously we have disputed bills with Northern Ireland Water, and they have now confirmed that we will receive a refund of £74k, which we have reflected in the year end forecast.

·         Although income from events, outdoor leisure and cemeteries and crematorium is up on budget, nevertheless income from services within the department is generally under pressure, with income down in leisure centres, the Zoo, Belfast Castle and Malone House; managers are reviewing the uptake of their services and generating options to retain customers and promote their services to new customers to improve this situation.

            The department will continue to monitor the variance between actual and budgeted expenditure during quarter 4.

            The financial reporting pack contains more detail on both the overall council position and the financial performance in each of the Services within the Department.

3.         Resource Implications

            There is a year to date under-spend of £0.15m and a forecast over-spend of some £0.1m or 0.4% by year end.

4.         Equality and Good Relations Implications

            None.

5.         Recommendations

            Members are recommended to note the above report and associated financial reporting pack.”

            After discussion, the Committee noted the information which had been provided.