Agenda item

Pooled budget and trading account as at 30 June 2020

Report by North Devon Council Accountancy Services Manager (attached).


The Joint Committee received an update from the Accountancy Services Manager (NDC), in relation to the Pooled Budget and Trading account as at 30th June 2020 report, (circulated previously).


The Accountancy Services Manager (NDC), highlighted the following:


·         Column one of table one for 2019/20 showed the budgets for both Councils with a deficit of £124,539 across the Partnership

·         Column two of table one for 2019/20 showed the actual spend for both Councils with a £30,141 total deficit across the Partnership

·         Column three of table one for 2019/20 showed the percentage split of the actual spend across the Partnership, 60% North Devon Council and 40% Mid Devon District Council

·         Columns four and five of table one for 2019/20 showed the chargeable/non-chargeable split for each authority with the percentage split remaining at 75% and 25% for North Devon Council and Mid Devon District Council respectively

·         Overall the Partnership was better off last financial year

·         As discussed at a previous committee 50% of any surplus was to be put into reserve.  North Devon Council had a surplus of £59,606 of which £18,000 was put into reserve.  This was just over 30% of the surplus, the amount put into reserves reflected what North Devon could afford

·         Mid Devon District Council put their 50% into reserves this was £17,000

·         Table two shows the Quarter one position for the financial year 20/21 for the Partnership

·         The quarterly movement between the two authorities had not been included in the figures in column one

·         When the reported figures were adjusted to allow for this movement the budgeted figure for North Devon was £18,615 and for Mid Devon £9,748

·         Column two of table two for 2020/21 showed the actual income and expenditure across the Partnership

·         The overall joint deficit of £24,452 was very near to the budgeted figure this was achieved due to receiving furloughed monies

·         Table three was new for this year and projected an out turn based on a 15% estimated reduction in income for the year 2021

·         The projected figures showed a potential budget deficit of £40,000 for North Devon and £36,000 for Mid Devon

·         As furlough had stopped in August the next quarter would likely not be on budget


The Head of Building Control added that over the last four months commencements had started to increase along with applications.  In July 2020 there had been two more applications received than last year.  This increase was due to a surge of smaller scale applications, but income was still down as the bigger projects were not yet commencing.


In response to a question about the 15% projected drop in fee income and if Mid Devon District Council had allowed for this in their budgeting.  The Accountant replied that they were aware of the drop in income and the reported figures were actually very similar.


In response to a question on whether other Local Authorities were assuming a 15% drop off in income.  The Building Control Manager replied that it was not the same across Devon, and that there was quite a difference of opinion on how recovery was going to take place.


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