Agenda item

            (Ms. J. Wilson, Business Support Manager, attended in connection with this item).

            The Committee considered the undernoted report:   

1.      Key Issues

         The current performance in quarter two of the Parks and Leisure department shows a 1% variance against the year to date budget; i.e.; an over spend of £119k.  This overspend has reduced significantly from quarter one.There are a number of key reasons for the over spend within the department as follows:

         Direct Employee expenses are overspent by 1.6% which relate mainly to overtime and agency costs as reviews are implemented i.e. Zoo, ROSPA.  These continue to be monitored and hotspots challenged with managers. 

         Utility costs are currently on budget however there are ongoing issues with CHP within Leisure and the timeliness of charging.  The connection to the water mains in the Zoo cost £40k year to date which was not budgeted for however the borehole supply has now been restored, so this should not be a cost going forward.

         Vehicle costs within Parks and Cemeteries are overspent by £26k against budget in quarter two as fuel budgets remain under pressure due to increased costs

         Compensation claims are £96k over budget in Parks and Cemetery Services by the second quarter.  Again the timing of compensation claims is largely unpredictable but there is a high probability that this budget will be overspent by £90k by year end.  The department continues to work with Legal Services to improve the reporting of incidents and ensuring these are managed effectively.

         Income for the department overall is down 2% or £113k on budget.  Leisure Centres are 2% £36k down on budget due to losing £33k of income with the Avoniel pool closure. Promotional activities around summer campaigns have been running from April and the holiday schemes have all been well received.

         Income from fees and charges at the Zoo is down 10% or £113k against budget. This is largely due to the loss of income due to closures over Easter.  However the figures for May, June and July are up on the same time last year and the outdoor campaign ‘passport to the world’ was well received.  The good weather has helped increase visitor numbers however August and September were down on expected income and it is unlikely that performance will improve to meet budgeted income.  Income at the shop is also down £39k but a reduction on expenditure on supplies will continue to reduce this.  The shop will continue to be tightly managed and a trading account is in place for the shop and regular stock takes are in place.

         The new Franchise agreement at the Castle and Malone House in place from June will result in a reduced annual income. This currently sits at £58k below budget year to date.

         Income from Grants outstanding is £39k and officers are working with funding bodies to ensure all monies are claimed in a timely manner.  Income from fees and charges in Parks and Open Spaces is up by 10% or £136k which is mainly from the crematorium (£85k) and pitch hire. However these increases do not offset the underperformance of the Zoo and Estates unit.

         The department will continue to monitor the variance between actual and budgeted expenditure/income during quarter three of the year.

         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.

2.      Resource Implications

         There is a year to date overspend of £119k (1%) and a forecast over-spend of some £120k by year end due to issues set out above.

3.      Recommendations

         Members are recommended to note the contents of this report.”

            The Business Support Manager outlined the principal aspects of the report and drew Members’ attention to various aspects therein.  The Director informed the Committee that the year-end forecast for the Department was for a £120,000 overspend and explained that this had arisen due to pressure on income, which had been alluded to within the report, and as a consequence of unanticipated utility costs at the Belfast Zoo.  He assured the Members that, whilst the potential overspend could be attributed to uncontrollable costs, steps would be taken to reduce spending against other budget headings to endeavour to reduce the level of overspend being forecast. 

            The Committee noted the information which had been provided and agreed that a report be submitted to a future meeting which would provided an overview of the measures which were taken within the Department to monitor expenditure.