Agenda item

(Mrs. J. Wilson, Business Support Manager, attended in connection with this 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 2011/2012

      The current performance in quarter one of the Parks and Leisure department shows a - 3.6% variance against the year to date budget; i.e.; an under spend of £191k.

         There are a number of key reasons for the under spend within the department as follows: The direct employee budget is showing a 5% overspend at quarter one.  Committee will be aware of the ongoing service reviews within the Department and recommendations will be provided to committee over the next number of months to finalise the structures.  An action plan to address issues regarding overtime and agency usage is currently being implemented.

      Playground refurbishment is £147k under spent against budget at quarter one however the implementation plan for the refurbishment has been updated to have the majority of this expenditure in the final two quarters of the year.

      The borehole at the Zoo has finally been re-connected which means that the water supply at the zoo can be fully provided for without a requirement to connect to the mains supply. However £38k of expenditure over budget has already be spent in this area.

      £42k of grant income from the Public Health Authority which was not budgeted for has also been received in this quarter for the community gardens and allotments project.

      Income from fees and charges at Malone house is down £21k against budget and Belfast Castle £57K. Both sites are currently working on promotional campaigns, aimed at addressing this.

      Shop sales are up £35k in the first quarter due to a busy Easter at the Zoo.  The budgeted income and expenditure was adjusted to reflect more realistic trading figures in comparison to last year.  Zoo income is also up £158k against the expected income year to date due to increased visitor numbers.

      Income from Fees &Charges for Parks and Open Spaces is up by 15% or £75k due to price increases not reflected in budgets and increased usage.  Income from Belfast in Bloom has been received this quarter which relates to both quarter one and two.

      The department will continue to monitor the variance between actual and budgeted expenditure/income during quarter 2

      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 £0.19m and a forecast over-spend of some £0.2m or 0.8% 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.