Issue - meetings

To update Joint Committee members on the latest financial review of GwE’s budget for the 2022/23 financial year.

To accept and approve the report on the GwE Budget 2022-23 - Quarter 2 Review

Submitted – the Quarterly Review which forecast an underspend by the end of 2022/23 as follows:

Employees – Quarter 2: underspend (£46,552) in relation to staffing costs compared with: underspend (£84,046) forecast at the end of Quarter 1

Building: Quarter 2: £25,367 overspend in relation to income shortage, but this income stream is expected to improve.  An overspend of £25,367 had been forecast at the end of Quarter 1

Transport: Quarter 2: underspend (£59,759), as a result of less travelling, and new ways of working.  At the end of the 1st Quarter an underspend of (£46,771) was forecast

It was noted that there was a net total underspend of £91,900.

The Managing Director of GwE reported that Quarter 2 was always difficult and that the main activities took place in Quarter 3 (September to December) where they would expect to see a change.

It was questioned, since reserves were not permitted, whether there was a minimum reserves threshold? It was confirmed that there was no restriction on how the underspend fund may be used, such as for transition or buying time.  Although there was no specific figure, at least £100,000 was assumed.

The Managing Director of GwE reminded those present that before lockdown, the reserve budget had been less than £200,000.  He noted that they must wait for the December Settlement and examine the implications going forward.

The Chair referred to issues with vacant posts and recruitment and enquired if there were challenges in terms of secondments, and confirmation was given that this had been a challenge in the secondary sector for some years, but it was now a cause for concern in the primary sector too.

RESOLVED

To accept and approve the report on the GwE Budget 2022-2023 – Quarter 2 Review