Issue - meetings

Q3 Financial Monitoring 2024/25

Meeting: 18/03/2025 - Swansea Bay City Region Joint Scrutiny Committee (Item 3)

3 Q3 Financial Monitoring 2024/25 pdf icon 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.