Agenda item

Consider report by Chief Financial Officer (copy attached).

There had been circulated copies of a report by the Chief Financial Officer providing the details of income and expenditure for the Selkirk Common Good Fund for the three months to 30 June 2018, a full year projected out-turn for 2018/19 and projected balance sheet values as at 31 March 2019. Pensions and Investment Manager, Kirsty Robb, highlighted the main points of the report and appendices.  Appendix I to the report provided the projected income and expenditure position, which showed a projected surplus of £34,333 for the year. The projected outturn position showed an amount of £133 relating to interest receivable on cash held by SBC.  Also included were dividends from the Common Good Funds investment in Kames Capital amounting to £11,568.  This dividend projection was significantly more than previous dividends earned by Newton.  Dividends earned to date amounted to £3,421 which was in line with the overall 5% target and the monthly distribution profile projections provided by Kames. Appendix 2 provided a projected Balance Sheet value as at 31 March 2019.  It showed a projected decrease in reserves of £33,625.  A breakdown of the property portfolio and details of the projected annual rental income by individual property and actual property expenditure to 30 June 2018 was show in Appendix 3 to the report.  Mrs Robb explained that, during the budget setting process for 2018/19, an element for Smedheugh rental of £5,200 had been missed.  This had now been included in the projections. The current position of the Kames Capital Investment Fund was shown in Appendix 4 to the report.  30 June 2018 represented the end of the first full quarter that Common Good and Trust funds had held investments with the fund.  Dividend receipts amounted to £3,421 for the quarter.  This was in excess of the 5% target. Although dividends were profiled to reduce slightly over the coming months, they were still projected to meet the projected total of £11,568 for the year. The fund had a 0.59% unrealised loss in market value for the quarter, largely due to continued volatility in equity markets.  Overall, however taking account of the income received the fund had achieved a return of 0.9% to date.    Members discussed the report and received answers to their questions from Mrs Robb.  The Chairman also gave Dr Neil the opportunity to ask questions about the accounts.   Members referred to the recent Trustees Seminar at which Kames Capital plc provided information to Members of Common Good Committees and Community Council representatives. Noting the amount of cash Selkirk Common Good Fund had deposited with Scottish Borders Council Members agreed to transfer a further £75,000 to the Kames Capital Investment Fund.

DECISION

(a)          AGREED the projected income and expenditure for 2018/19 as shown in Appendix 1 to the report as the revised budget for 2018/19.

(b)          NOTED within the appendices to the report:-

(i)            the projected balance sheet value as at 31 March 2019 in Appendix 2;

(ii)          the summary of the property portfolio in Appendix 3; and

(iii)         the current position of the Kames Capital investment Fund in Appendix 4.

(c)          AGREED to request that the Chief Financial Officer transfer a further £75,000 from the cash deposited with Scottish Borders Council to the Kames Capital plc investment fund.