3 Q3 Financial Monitoring 2024/25 PDF 1021 KB
Decision:
Following
Scrutiny the report was noted.
Minutes:
Stephen
Aldred Jones gave members an overview of the report as published in the agenda
pack.
Members
were concerned about the significant difference between the allocated funds
(£69,000,738) and the actual spend (£601,000) from the total capital of £242
million. They felt that the discrepancy suggests that a large portion of the
allocated funds has not been utilised yet and they were concerned about the
efficiency and progress of the projects and investments planned.
Officers
explained that the actual money spent to date is £71.5 million and there are
additional committed expenses that haven't been invoiced yet. There are
forecasts for future spending.
Officers
explained that the commitments column in the report represents expenses that
have been incurred but not yet invoiced. This means that these are amounts that
will be paid once the invoices are received.
Members
were advised that timing of when these invoices are received can vary, which is
why the actual spend might appear lower until those invoices are processed.
This can create a lag between when the expense is committed and when it is
officially recorded as spent.
Officers
stated that they will check the wording in the report to see if they can
provide better clarity in future reports on this.
Members
asked if the grant money being drawn down from the Welsh or UK Government will
be at the project's start or at specific waypoints, or on a set date?
Officers
explained that the UK Government provides funding over 10 years, while the
Welsh Government does it over 15 years up to 2033. The UK Government
front-loaded its funding, so it is received quicker. For Swansea Arena, the
eligible spend is spread over 8 years, with annual drawdowns based on progress.
There are waypoints set by the governments, and once those are met funds are
released.
Officers
explained that they provide an annual portfolio business case update, scheduled
for the next quarter, and are subject to scrutiny by a joint implementation
board. Officers will present the progress update to release the next tranche of
funding.
Following Scrutiny the report was noted.