Issue - meetings

·        To select appropriate items from the Cabinet agenda for pre-decision scrutiny (cabinet reports enclosed for Scrutiny Members)

Revenue Budget Monitoring - Quarter 3

Following scrutiny, the recommendation was supported to Cabinet.

Capital Budget Monitoring - Quarter 3

Following scrutiny, the recommendation was supported to Cabinet.

Revenue Budget Monitoring - Quarter 3

Members thanked officers for providing clarity outside of the meeting, in relation to £3.87m mentioned on page 24 of the report, which has been moved back into specific reserves due to uncompleted works. Members questioned whether a sufficient number of officers were in place to complete necessary works during the revenue year.

The Chief Finance Officer confirmed that two items made up the majority of the £3.87m moving back into reserves; £2.379m relates to a delay in purchasing large recycling vehicles, which has been postponed whilst a fleet review is undertaken. An amount of £700k was budgeted for remodelling the Crumlin Burrows Transfer Station, this work has been delayed until 2025. There are 12 other entries going back to reserves; challenges in staff recruitment has been a contributory factor particularly in the Environment Directorate.

The Director for Environment and Regeneration confirmed the circumstances that have been outlined and advised members that market supplements had been used with some success in certain services to address staff recruitment issues. There is outstanding budget to tackle the capacity issues that have been discussed with members previously. 

Members referred to page 30 of the report contained within the agenda report pack and the projected energy, efficiency, transition and contingency £600k underspend. Members enquired whether the £700k that is stated as being transferred into the accommodation reserve to fund energy efficiency lighting schemes during 2024/25 will be transferred as a capital or revenue project.

The Chief Finance Officer confirmed that the funding will be transferred into the accommodation reserve which is a revenue reserve. The projects will be delivered as capital projects but will be funded from a revenue reserve.  It was noted that capital expenditure can be funded from revenue reserves but not vice versa. Two large scale led lighting refurbishment projects have been identified in the Quays and Neath Civic Centre but were undeliverable by the end of this financial year, funding has been transferred into reserves for use next year when the projects will be built into the capital programme.

Members questioned why the projects were not identified as capital projects from the outset and why there was such an underspend.

The Director of Environment and Regeneration advised members that efforts were being made to establish a team of officers concentrating on areas such as energy efficiency, net zero carbon, climate change and ecology. There has been difficulties in growing the team to the required capacity. A number of staff are tasked to decrease the energy costs of the authority, ensuring assets are operating as efficiently as possible. Regular building studies are undertaken, and business cases are in place to demonstrate where there is a return on investment should capital schemes be progressed. Much of the work of the team is business as usual activity, therefore there is no specific budget code for the work and it is carried out within salary costs, which are consumed by the Environment Directorate.

Members asked whether a sufficient  ...  view the full minutes text for item 4