Agenda item

Consider Report by Director Finance and Corporate Governance.  (Copy attached.)

1.1          Copies of the report by Director Finance and Corporate Governance had been circulated that detailed the income and expenditure for the Lauder Common Good Fund Sub-Committee for nine months to 31 December 2021 a full year projected out-turn for 2021-22, projected balance sheet values as at 31 March 2022 and proposed budget for 2022-23.  Appendix 1 of the report provided the projected income and expenditure position for 2021-22 which showed a projected deficit of £1,766 for the year, which was less than the surplus figure reported at the 14 December 2021 meeting, due to the increase to the Repairs and Maintenance budget.  Appendix 2 provided a projected balance sheet value as at 31 March 2022 which showed a projected decrease in reserves of £20,265.  Appendix 3a provided a breakdown of the property portfolio which showed a projected rental income and projected net return for 2021-22 and actual property income to 31 December 2021.  Appendix 3b provided a breakdown of the property portfolio which showed a projected property expenditure for 2021-22 and actual property expenditure to 31 December 2021.  Appendix 4 provided a breakdown of the property portfolio which showed a projected property valuations at 31 March 2022. Appendix 5 showed the value of the Aegon Asset Management Investment Fund to 31 December 2021.  The Pension and Investments Manager explained that unspent money would be carried forward into the next financial year.

1.2          The projected outturn position showed an amount of £200 relating to interest receivable on cash held by Scottish Borders Council.  Also included were dividends from the Common Good Funds investment in Aegon Asset Management which amounted to £10,350.  This was estimated at 4.5% return in the current year as a result of the market value having dropped due to the impact of the Covid-19 pandemic, with the proposed budget for 2022-23 having returned to the 5% target and the monthly distribution profile projections provided by Aegon.  The position was to be monitored closely with Aegon Asset Management.  Included within other income was a rebate from Aegon Asset Management of £125 which, along with the £63 received in March 2021, had been re-invested to purchase an additional 172 units.

1.3          The Pensions and Investment Manager advised that budgeting for the next year was difficult and to form a position, the average spend for the previous three years was used to determine the proposed budget for 2022-23.  The proposed budget for the Lauder Common Good Fund for 2022-23 was £10,500 which, depending on future grant applications, could be altered by the Sub-Committee.  Expenditure for the Woodland Grant was removed from the budget.  Aegon had advised that they were not aware of events in Ukraine affecting investments and that they would continue to monitor the situation.

DECISION

AGREED to:

(a)       the projected income and expenditure for 2021-22 as outlined in Appendix 1 of the report as the revised budget for 2021-22,

(b)       the proposed budget for 2022-23 as shown in Appendix 1 of the report,

(c)       Note the projected balance sheet value as at 31 March 2022 in Appendix 2 of the report

(d)       Note the summary of the property portfolio in Appendices 3 and 4; and,

(e)       Note the current position of the Aegon Asset Management Investment Fund in Appendix 5 of the report.