Dewi Morgan, Host Authority Statutory Finance Officer and Sian Pugh, Host Authority Group Accountant to provide the North Wales Economic Ambition Board (NWEAB) with details of the actual revenue expenditure and income for the third quarter of the 2021/22 financial year as well as projected full year out-turn against its annual budget.
To receive and note the NWEAB Joint-Committee’s Third Quarter Review for 2021/22.
To receive the Joint-Committee's approval to transfer any underspend in 2021/22 to the earmarked reserve that will be available for future years.
The report was submitted by Dewi Morgan (Statutory Finance Officer) and Sian Pugh (Group Accountant - Corporate and Projects).
To receive and note the NWEAB Joint-Committee’s third quarter revenue and capital review for 2021/22. To receive the Joint-Committee's approval to transfer any underspend in 2021/22 to the earmarked reserve that will be available for future years.
REASONS FOR THE DECISION
A forecast underspend of £297,140 against the revenue budget in 2021/22 was noted. It was noted that any underspend at the end of the financial year may be transferred to the earmarked reserve. It was noted that there was a further slight slippage on the capital programme as a result of a delay with the final business case on one of the projects
The report was submitted, and the Joint-Committee was thanked for their welcome to the new Head of Finance at Gwynedd Council. It was noted that the purpose of the report was to report on the budget for quarter 3 noting the actual expenditure against the budget.
It was noted that the Finance Department estimated an underspend of £197k on the Portfolio Management Office. It was noted that this had increased by £69k since the last quarter, mainly because the expenditure on the Employee Expenditure heading and the Transport Procurement and External Support heading was estimated to be lower. It was noted that an underspend of £18k remained under the Joint-Committee heading.
In terms of projects, it was noted that this expenditure must be considered in the context of the decarbonisation grant of £500k and the community renewal fund of £80k shown under the equivalent income budget and approved during the year. It was highlighted that the underspend on the business case development, external legal support and assurance headings was also increasing as a result of slippage on the capital programme. It was explained that the Finance Department was revisiting the borrowing costs calculated back in October 2020 and would report back on this at the next meeting.
It was explained that income sources for 2021/22 included partner contributions, ESF Grant, North Wales Growth Deal Grant, Decarbonisation Grant, Community Renewal Fund and the reserve fund. It was noted that the department estimated an underspend of £297k for 2021/22 and that there would be £620k in the reserve fund by the end of the financial year.
In terms of the capital review, it was noted that there had been two changes since the last review, namely minor amendments in the Digital Signal Processing Centre project to agree the Final Business Case approved in December as well as a slippage anticipated on the Morlais project. It was noted that there was a slippage of £16.81 million in 2021/22, £41.39 million in 2022/23 and £18.93 million in 2023/24. It was explained that the North Wales Growth Deal grant would be used to fund the Capital Programme for the first two years and that no external borrowing would be needed until 2023/24.
During the discussion, the following matters were raised:-
<![if !supportLists]>¾ <![endif]>In response to a question regarding project interest costs, it was noted that the Finance Department had prepared a forecast in 2020 for grant income and capital expenditure in order to identify the borrowing costs. By now, the situation had changed and the expenditure profile had been changed in addition to the capital income profile. It was noted that a further report would be presented in March.