Agenda item

To update Joint Committee members on the latest financial review of GwE’s budget for the 2024/25 financial year.

DECISION:

·       To accept and approve the report.

·       That a meeting be held between the members of the Joint Committee and the Transitional Board to share information and additional details e.g. staff costs, restructuring costs

The Assistant Head of Finance, Cyngor Gwynedd presented the report explaining that the report elaborates on the latest review of GwE's revenue budget for 2024/25, and the forecasts towards the end of the financial year. It was explained that this review was conducted based on information up to the end of August 2024 and therefore reflects the latest position and that the picture will become clearer as the months progress.

Reference was made to a summary of the closing position noting that the forecasts suggest that the position will more or less be balanced, with forecasts of underspend at approximately (£5 thousand) by the end of the financial year.      

Attention was drawn to the main issues:

Employees - overspend of £46 thousand. GwE's budget for the current year was set based on the number of staff back in February 2024. It was explained that a saving has been made with some members of GwE staff leaving their posts, with most of these departures happening during the academic year. The figures have also incorporated the decision of the Joint Committee on the 1st of August to restructure the Senior Management Team.

Rent - overspend of £10 thousand, which is in line with the historical trend. It is foreseen that GwE will overspend again this year as a result of having to rent a bigger space at the Caernarfon office.

Travel - - the picture is still consistent with previous reviews, with an underspend of £41 thousand in this heading, as travel costs have reduced as a result of new ways of virtual working that have developed since Covid.

Supplies and Services - an underspend of almost £20 thousand is foreseen on this heading.

It was highlighted that the opening fund stood at £221 thousand, which will grow to £226 thousand after adding the underspend. The end of Autumn review will be presented at the Committee's meeting in November.

The recommendation was for the Joint Committee to accept the end of August review 2024 report on the Revenue Budget.

         In response to a question as to why an overspend is foreseen against the 'Employees' heading, given that 17 members of staff have already left, it was noted once again that the picture would become clearer over the next few months with the budget likely to lead to a small underspend. In response to another question as to whether the total included the cost of restructuring and provision, it was noted that this had already been taken into consideration.

Following the subsequent discussion, Members noted the following comments:

·        Whilst accepting that the budget is more or less on target, that a better understanding is needed of employees’ costs, restructuring costs, leave entitlement and financial implications

·        That an additional report is needed with more information to understand the picture in full

·        This is only a snapshot - it will change with restructuring arrangements

IT WAS DECIDED:

·        To accept and approve the report.

·        That a meeting be held between the members of the Joint Committee and the Transitional Board to share information and additional details e.g. staff costs, restructuring costs