Agenda item

·       To consider and note the Revenue Income and Expenditure Account for 2024/25, which is an overspend of £523,065, to be financed by a contribution from the authorities.

·       To approve financial transfers of £221,310 from the underspend fund, and £312,547 from the Newly Qualified Teachers (NQT) fund to reduce GwE overspend in 2024/25.

·       To approve the final financial position for 2024/25, which is the basis of the GwE statutory financial statements for the year. They will be produced, certified and published by the host authority’s Finance Department within the statutory timeframe.

DECISION:

·        To note and accept GwE Joint Committee Revenue Income and Expenditure Account for 2024/25, an overspend of £523,065, to be funded via contributions from the authorities.

·        To approve financial transfers of £221,310 from the underspend fund, and £312,547 from the Newly Qualified Teachers (NQT) fund to reduce the GwE overspend in 2024/25.

·        To approve the final financial position for 2024/25, which will be the basis for GwE statutory financial statements for the year, to be produced, certified and published by the host authority's Finance Department within the statutory timescale.

A report by Cyngor Gwynedd Head of Finance was presented to update Joint Committee members on the latest financial review of GwE's budget for the 2024/25 financial year.

The Assistant Head of Finance - Accounting and Pensions (Cyngor Gwynedd) explained that the report elaborated on the end of year position 2024/25 for GwE. It was reported that the end of year position highlighted an overspend of £523K which was much lower than the anticipated overspend of £919K in the January review 2025.

Attention was drawn to the main issues:

Employees - following redundancy and pension cost considerations, the overspend was £962 thousand (January review figure had noted £1.1 million), however it was noted that the situation was still changing, and the figure was decreasing as posts were being offered to those staff outside of TUPE. It was reported that the Statement of Final Accounts would reflect the actual figure and consequently, additional contributions from the Councils.

Rent Costs and office termination costs - expenditure had risen to £121 thousand (£90 thousand in January) as a result of terminating office contracts; the costs of terminating the Bryn Eirias office contract were previously unknown. (Mold Office was another).

Transport - underspend of £19 thousand and as reported consistently with the previous trend, travelling expenses had increased since the last review.

Supplies and Services - overspend of £9 thousand. The usual contribution to the information technology upgrade fund had not been made therefore the overspend was less.

It was noted that the current financial situation took into consideration that an underspend fund of £221 thousand was being used in full to reduce the overspend. Attention was drawn to the Newly Qualified Teachers (NQT) fund which had accrued, noting that the fund would be emptied by using £143k thousand for newly qualified teachers, and the remaining £313 thousand used to reduce the overspend.

The end of year position would highlight a financial deficit of £523 thousand and although additional funding had not been expected for 2024/25, that the Finance Department following a request for additional funding for 2025/26, was awaiting formal confirmation from Welsh Government. It was added that, unless additional funding came from the Government, this would have to be funded by the individual Councils, which would be a maximum of £87 thousand per authority. (although redundancy costs were still decreasing, this contribution was likely to decrease with the picture becoming clearer by the end of May 2025).

The report was appreciated and staff were thanked for completing the work in a difficult period.

A motion to approve the report was seconded.

            RESOLVED:

·        To note and accept GwE Joint Committee's Revenue Income and Expenditure Account for 2024/25, with an overspend of £523,065, to be funded via contributions from the authorities.

·        To approve financial transfers of £221,310 from the underspend fund, and £312,547 from the Newly Qualified Teachers (NQT) fund to reduce GwE overspend in 2024/25.

·        To approve the final financial position for 2024/25, which will be the basis for GwE statutory financial statements for the year. To be produced, certified and published by the host authority's Finance Department within the statutory timescale.