Agenda item

Consider report by Chief Financial Officer.  (Copy attached.)

1.         There had been circulated copies of a report by the Chief Financial Officer which detailed transactions on the Jedburgh Common Good Fund for the 9 months to 31 December 2014 and projected full year revenue income and expenditure for 2014/15 and balance sheet values at 31 March 2015.  Appendix I provided detail on income and expenditure for the 2014/15 financial year, the net position for the year was a deficit of £5,081 which would be funded from the Revenue Reserves.  The report explained that the projected out-turn included an estimate for the interest receivable on cash deposited with the Council.  However, this would not be shown as an actual income until the end of the financial year as the amount was dependent on interest rates and the average cash revenue balance invested with the Council’s Loans Fund over the full financial year.  The report detailed the Grants and other Donations distributed to 31 December 2014, which left an unallocated budget of £1,300.  Appendix 2 provided the balance sheet position at 31 March 2014, the projected movement in year and a projected final balance sheet position for 31 March 2015.  All fixed assets of the Common Good Fund were revalued every 5 years as part of the Council’s rolling program and the fixed assets shown on the Balance Sheet were due for revaluation from 1 April 2014.  The Council’s Estates Section were finalising these and the final year end balance sheet would be adjusted to reflect these revaluations.  The usable cash held by the fund as part of its Revenue Reserve was projected to be £78,521 an in year projected movement of £16,371 and the projected annual movement was summarised in the report.  In response to Members questions it was reported that the Newton Fund was receiving 4% which was favourable compared to other funds.  The format of the report had been reviewed in order to make it more understandable and would be brought to the Sub-Committee on a quarterly basis.  It was further explained that the cash reserve could be reduced and more dividends purchased from the Newton Fund at any time and funds realised quickly too.  The Sub-Committee commended the Capital and Investment Manager on the new format of the report, which was now readable and understandable.      

5.      The Sub-Committee questioned whether the Provosts Room being part of 3 Exchange Street, Jedburgh which was currently being marketed for sale was owned by the Common Good.  Mr Nelson agreed to confirm the position with regard to ownership of the Provosts Room and report back to the next meeting.  There was further discussion with regard to other land owned by the Common Good.   Mr Wight agreed to provide an old map that he possessed of Common Good Land to the Capital Investment Manager for investigation. 

         DECISION

(a)          AGREED:-

(i)           the projected out-turn in Appendix 1 as the revised budget for              2014/15;

(ii)          to  transfer £50,000 from the usable cash balance within the revenue reserve to the capital reserve invested in the Newton Fund;

(iii)         that Mr Nelson confirm the position in terms of the ownership of the Provosts Room,3 Exchange Street, Jedburgh.

(iv)         that Mr Wight provide a Map showing Common Good Land to the Capital Investment Manager for investigation.

(b)          NOTED:-

(i)            the projected Balance Sheet as detailed in Appendix 2.

(ii)          the current position of the investment in the Newton Fund as detailed in Appendix 3.