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Issue - meetings
(Foreshore Trust) Financial Report
Meeting: 09/12/2019 - Charity Committee (Item 48)
48 (Foreshore Trust) Financial Report PDF 120 KB
Additional documents:
Minutes:
Simon Jones, Chief Accountant, presented a Finance Report to advise the Committee on the current year’s financial position.
The budget agreed in March 2019 identified budgeted income at £1,477,000 and expenditure at £1,296,000. The budgeted surplus for the year being £181,000 after direct governance costs, but before distribution of grants, capital charges and before use of Reserves. A deficit of £197,000 is budgeted for after these adjustments.
At this stage in the year a number of variances have been identified. The net effect leading to a (£35,000) reduction in the forecast deficit to £162,000.
The Chief Accountant highlighted two variances. Based on the experience from 2018/19 it is possible that the income budget for car parking may be overly ambitious by approximately £40,000. This year it is particularly hard to accurately forecast income as the Council has moved away from separate seasonal summer/winter charging to having a fixed charge all year round.
The forecast reduction in income from car parking is however fully offset by an expected increase in rental income, in particular from Victoria chalets and the White Rock beach huts.
Since publication of the report the £12,000 underspend for maintenance of the White Rock water play feature has now been earmarked for this financial year.
It was noted that a member of the Coastal Users Group had asked why the Foreshore Trust appears to be running its reserves down. The Chief Accountant said that this was in line with the reserves policy as previously agreed by the Committee.
The Committee thanked the Chief Accountant for his work and wished him well in his new job.
Councillor Batsford proposed approval of the recommendation, seconded by Councillor Forward.
RESOLVED (unanimously):
To agree the current financial position for 2019/20.
Reasons:
The Council has the responsibility for the proper management of the financial affairs of the Trust. In doing so it complies with Accounting Codes of Practice and the high standards required for the accounting of Public money.
At this stage in the year the budget is forecast to be underspent by (£35,000) at the year end. A surplus of £193,000 is anticipated for 2019/20 in respect of operating income and expenses. Once grant and project costs are taken into account a deficit of £162,000 is anticipated.
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