·
To select appropriate items from the Cabinet agenda for pre-decision
scrutiny (cabinet reports enclosed for Scrutiny Members)
Decision:
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.
Minutes:
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 number of staff were available to
drive projects forward to reduce energy costs.
The Director of Environment and Regeneration confirmed that there
continues to be an insufficient number of staff in the team but a budget and
structure is in place to address this. Currently, there are two technical
experts and one administration officer in post who have responsibility for
building assets in addition to strategy objectives to reduce carbon footprint
and energy consumption. There has been a very poor level of interest to some of
the vacant posts but interviews are being held for the Manager post shortly. It
was noted that it is challenging to secure the appropriately skilled people to
deliver the councils objectives.
Members referred to page 26 of the report contained within the agenda
pack and expressed concern at the change in the reserve position of schools.
Members questioned whether any schools are not going to be in a deficit
situation or whether schools would be considering redundancies due to the
funding situation.
The Director of Education, Leisure and Lifelong Learning advised members
that there is an awareness of schools current financial situations and likely
positions going forward. Any schools that are currently in deficit have
recovery plans in place. It is likely that redundancies will take place in some
schools going forward due to the overspend position across the whole school
sector; schools may consider voluntary redundancies to avoid compulsory
redundancies.
Members asked if there was an average cost for any reviews undertaken by
the council.
The Chief Finance Officer confirmed that the cost of each review was
linked to the amount of work involved, and therefore there was no average cost.
It was noted that most reviews are signed off by Cabinet or Cabinet Boards so
members will be aware of costs involved.
Each review will have a business case stating the costs will be repaid
by savings delivered.
Following scrutiny, the recommendation was supported to Cabinet.
Capital Budget Monitoring - Quarter 3
Members requested an update of spend in relation
to the Pontardawe Arts Centre Cinema project.
The Chief Finance Officer confirmed the start
date for the Pontardawe Arts Centre Cinema project was delayed. Member approval was sought to continue with
the project, due to insufficient funding. The contractor is due to start on
site within the next three weeks which will result in more spend in terms of
design work and materials.
Members referred to page 47 of the report and
asked for further information in relation to £441k that is yet to be spent on
the Regeneration Harbourside Infrastructure.
The Chief Finance Officer confirmed more
narrative would be contained in future reports. In relation to the large
infrastructure project on the Harbourside, this was funded by European funding
which was match funded from council funding. The residual funds remaining will
be used to settle the final account, once this is agreed.
Members referred to page 54 of the agenda
report pack and questioned whether the £10k budget for the Neath Library
refurbishment, related to the old or new library. Members also requested
further information in relation to the £10k budget for the Byass works site.
The Chief Finance Officer confirmed the budget
for the Neath Library related to a feasibility study to explore the potential
refurbishment of the old Neath library. The Director
of Environment & Regeneration confirmed the budget for the Byass Works site
related to the development of a masterplan within the wider Harbourside area.
Due diligence and feasibility studies are being carried out in the area to
establish what can be delivered and whether aspirations are achievable.
Members referred to page 45 of the report and
raised concern that grants were not fully utilised in relation to the Capital
Maintenance for Schools.
The Chief Finance Officer confirmed that the
budget line shows a spend of 2.379m at the end of
December against a budget of 2.9m. There has been a delay in some expenditure
but it is expected that the budget will be fully utilised. The Director of
Education, Leisure and Lifelong Learning confirmed that with reference to the
Supporting Learners with Additional Learning Needs £60k spend against the 1.3m
budget, works are progressing on the provision at Blaenhonddan and Ysgol
Hendrefelin. There have been some delays between works being completed and
invoicing.
Following scrutiny, the recommendation was supported to Cabinet.