Agenda item

Consider report by Chief Financial Officer (Copy attached.)

(a)          There had been circulated copies of a report by the Chief Financial Officer providing the year end out-turn for the Selkirk Common Good Fund for the year 2014/15 including balance sheet values at 31 March 2015 and the proposed budget for 2015/16.  The Corporate Finance Manager, Lynn Mirley, highlighted the main points of the report and answered Members’ questions.  Appendix 1 to the report provided the actual income and expenditure for 2014/15.  This showed a surplus of £13,239 and projected deficit of £3,954 for 2015/16.  The final out-turn for the Central Support charge showed a reduction of £5,000 bringing this more into line with other Common Good Funds.  Appendix 2 provided the balance sheet value to 31 March 2015.  This showed an increase in the Reserves of £1,226,839 due to the revaluation of properties and the unrealised gain of the Newton Fund investment.  Appendix 3 to the report gave a breakdown of the property portfolio, showing actual income and expenditure and the effect of revaluation of the fixed assets, which was carried out on 1 April 2014 as part of the Council’s 5-year rolling programme.  This resulted in an increase in valuation of £1,285,223 in total.  The value of the Newton Fund to 31 March 2015 was shown in Appendix 4.  This indicated that the value of the investment had increased by £7,280 and dividends of £3,465 had been received during 2014/15. 

(b)          Members’ questions related mainly to the budget of £50,000 for expenditure on property in 2015/16.  Mrs Mirley clarified that approximately £25,000 of that budget was to facilitate quotes for work already approved leaving £25,000 for other work which may be proposed or for unscheduled maintenance costs.  It was agreed that a rolling prioritised programme of work required on property should be set up to facilitate future budgeting.  With regard to paragraph 4 of the minute of 2 December 2014, Members asked Mr Morison to discuss issues with the tenant of Linglie Farm before any exploratory work was initiated in respect of the refurbishment of the two cottages.  Mr Morison advised that the tenant who had the shooting on Linglie Farm last year did not wish to rent the shooting for the 2015/16 season, so this was currently available.

(c)          A table within the report detailed grants and donations distributed from Selkirk Common Good to March 2015.  This included two outstanding awards which were approved but not yet paid.  Members agreed to carry out further investigation into the situation regarding the Selkirk Christmas Illuminations Group, for which a grant of up to £1500 had been approved.  In respect of the approval in 2012 of a grant of £2,890 to Selkirk Chamber of Commerce for a project in 2013, subject to the submission of formal accounts, it was agreed that this should be removed from the list in the assumption that it was no longer required. With regard to the closing cash balance of £90,000 Members agreed to look more closely at the cash flow requirement with a view to transferring an additional amount into the Newton Fund.  Mrs Mirley advised that she would email Members with a transaction list for the period.

DECISION

(a)        NOTED:-

(i)            the actual  income and expenditure position for 2014/15 detailed in Appendix 1;

(ii)          the final balance sheet value to 31 March 2015 in Appendix 2;

(iii)         the summary of the property portfolio in Appendix 3;

(iv)         the current position of the investment in the Newton Fund in Appendix 4; and

(v)          that the Corporate Finance Manager would circulate a transaction list to Members by email.

AGREED:-

(i)            the proposed out-turn in Appendix 1 and the budget for 2015/16;

(ii)          to set up a rolling prioritised programme of work required on property to facilitate budgeting in future years;

(iii)         to remove from the 2015/16 budget the outstanding grant of £2,890 approved in principle in 2012 but not paid; and

(iv)         to monitor cash flow requirement more closely with a view to transferring an additional amount to the Newton Fund to gain a higher return.