Meeting: NuLeAF Annual General Meeting, 15 October, 2015
Agenda Item:7
Subject: Finances,Funding and Staffing
Author:Catherine Draper
Purpose: To provide a financial statement for 2014-15, and report on the prospects for future funding
Introduction
This report provides an audited financial statement for 2014-15, the budget for 2015-16 and draft budget for 2016-17. It also prospects for future funding.
Recommendations
It is recommended that the AGM agree:
1)the out-turn statement for 2014-15;
2)to hold the level of requested payments from contributing authorities in 2016-17 to the current rates;
3)that the Steering Group keeps efforts to secure income under review at its meetings throughout 2016-17;
4)in principle that it wishes to continue to secure the services of an Executive Director and aDirector’s Assistant on further two year contracts from May 2016 and April 2016 respectively;
5)to ask the ‘employing authority’ (Suffolk County Council) to offer a contract extension to Philip Matthews; and
6)to ask the ‘employing authority’ (Suffolk County Council) to offer a contract extension to Catherine Draper.
7)that the accounts are audited on a biennial basis from here onwards, the next audit being under taken on the FY2016-17 accounts.
1. Out-turn for Financial Year 2014-15
The out-turn statement for FY 2014-15 is shown in the attached table. This shows an expenditure of £109,376.72and income of £97,255.00. This represents an increase in expenditure of1.9% as a result of the 1% pay increase awarded by Suffolk County Council and increased travel costs. Income has increased by 0.76%, arising from seminar income (no seminar was held 2013-14). The deficit of £12,121.72 was met from reserves, leaving a carry forward figure of 75,425.64.
It was agreed at the AGM in October 2007 that NuLeAF’s accounts be audited by Suffolk County Council on an annual basis. This year’s annual audit confirms the outturn for 2014-15 and comments that the management of NuLeAF finances is of the highest standard.
2. Estimates for FY 2015-16
The attached table also shows the estimated expenditure and income for FY 2015-16. The estimated expenditure for FY 2015-16is£109,562.73 which is £186.01 morethan in FY 2014-15.
The estimated income is £101,605.00 including:
- A contribution of £37,500 each from the NDA and RWM.
- An income of £21,355from member authorities.
- An income of £250 from the NuLeAF seminar on 30 September 2015
- An anticipated income of £5,000 for ‘commissioned work’.
The anticipated shortfall of£7,957.73can be met from reserves. This leaves reserves of £67,467.91 from which redundancy payments of £12,000.00 could be met should the need arise.
3. Payments from Contributing Authorities in 2016-17
In view of the current financial climate it is proposed to hold the level of requested payments from contributing authorities in 2016-17to the current rates. This means that the levels would be:
Population / Annual Contribution 2016-17Up to 100k / £665
100k-200k / £995
200k-500k / £1330
500k-1m / £2035
Above 1m / £2660
4. Estimates for FY 2016-17
The table at Annex A shows estimates for FY 2016-17.
The anticipated expenditure is £111,541.00. This assumes no significant increase in staff costs as Suffolk County Council has indicated that it unlikely to award incremental payments until 2018. A recommendation is included in this report that NuLeAF moves to biennial audit of the accounts. Adoption of this recommendation would reduce expenditure to £110,891.00.
The anticipated income is £101,700.00. This assumes support from NDA, RWM and local authorities remains static,
The table shows an anticipated shortfall of £9,841.00, which could be met from reserves.
5. Future funding
To date discussions with RWM and NDA regarding increased funding to cover the shortfall have not proved fruitful. Approaches will also be made to a range of other organisations as detailed in Item 6.
NuLeAF has consistently demonstrated the value to NDA and RWM of a properly supported local government network with which the industry and Government can engage. It is hoped that as the Geological Disposal Facility siting process develops new opportunities for commissioned work will arise, and that Government and the industry will continue to recognise the importance of facilitating local government engagement in the process through a central body.
6. Staffing
The contract for the current Executive Director comes to an end in May 2016 and that for the Director’s Assistant in April 2016. Philip Matthews and Catherine Draper have indicated that they would wish to continue in post, if a contract extension was to be offered. It is recommended that the AGM agrees in principle that it wishes to continue to secure the services of the Executive Co-Directors and Business Support Coordinator on further two year contracts from May 2016 and April 2016respectively, subject to availability of sufficient funding. It is further recommended that the AGM agrees:
a)that in principle it wishes to continue to secure the services of an Executive Director and a Director’s Assistant on further two year contracts from May 2016 and April 2016 respectively;
b)to ask the ‘employing authority’ (Suffolk County Council) to offer a contract extension to Philip Matthews; and
c)to ask the ‘employing authority’ (Suffolk County Council) to offer a contract extension to Catherine Draper.
7. Audit
At the AGM in October 2007 the decision was taken to submit NuLeAF’s annual accounts for audit by Suffolk County Council internal auditors. Reports have been of a consistently high standard. Whilst SCC auditors have done their best to keep the fees at a reasonable rate, they were significantly higher for the FY2014-15 accounts than in previous years because of errors in the Suffolk County Council expenses software which raised a number of queries. Although the Director’s Assistant queried why NuLeAF was charged for errors which it did not create, the fee was held. The Chair who is Finance Portfolio holder at Suffolk County Council has also addressed this issue with the auditors and will report back to the meeting.
Advice from Suffolk CC auditors indicates that it is not a legal requirement for NuLeAF to have its annual accounts audited, and therefore, as a cost cutting measure, and in light of the consistently high standard of record keeping, it is proposed that the accounts are audited on a biennial basis from now onwards. This means the next audit will be of the FY2016-17 accounts. This will result in an annual saving of approximately £300.
Annex A
NuLeAF out-turn for FY 2014-15 and projections for 2015-16 and 2016-17
2014-15 Actual / 2015-16 Estimate / 2016-17 EstimateEXPENDITURE
Salaries and wages1 / £98,531.55 / £98,347.00 / £99,751.00Travel, accommodation and subsistence2 / £4,998.75 / £5,680.00 / £6,040.00
Room hire and catering3 / £3,121.52 / £3,100.00 / £3,200.00
Printing, postage, stationery & IT consumables / £350.79 / £210.00 / £250.00
Staff office costs and expenses4 / £1,842.43 / £1,600.00 / £1,650.00
Audit costs5 / £531.68 / £625.73 / £650.00
Total / £109,376.72 / £109,562.73 / £111,541.00
INCOME
NDA6 / £37,500.00 / £37,500.00 / £37,500.00RWM6 / £37,500.00 / £37,500.00 / £37,500.00
Local authorities7 / £21,355.00 / £21,355.00 / £20,700.00
NuLeAF seminars8 / £900.00 / £250.00 / £1,000.00
‘Commissioned’ work / - / £5,000.00 / £5,000.00
Total / £97,255.00 / £101,605.00 / £101,700.00
Balance b/fwd / £87,547.36 / £75,425.64 / £67,467.91
+/(-): Surplus/(loss) for financial year / -£12,121.72 / -£7,957.73 / -£9,841.00
Reserve c/fwd / £75,425.64 / £67,467.91 / £57,626.91
Redundancy reserve contingency 9 / £12,000.00 / £15,000.00
Available reserve / £55,467.91 / £42,626.91
1.Includes all ‘on-costs’, i.e. National Insurance and pension contributions.
2.Travel, accommodation and subsistence costs are for NuLeAF staff.
3.Includes expenditure for: Steering Group, Radioactive Waste Planning Group and Seminar.
4.Included in office costs are telephone charges, mobile calls, website costs and sundry expenses. An allowance of £120 has been made to cover the costs of purchasing a new printer for the Director’s Assistant.
5. 2015-16 Audit costs are higher than previous years due to errors in the Suffolk County Council expenses system which caused additional work for the auditors. A figure of £650 has been included in the 2016-17 estimates, however a recommendation is included in this report that NuLeAF moves to biennial auditing of the accounts.
6.NDA/RWM income for FY 2015-16 has been received.
7.Hartlepool has indicated that it will no longer be able to continue as a contributing member in 2016-17.
8. A drop in the number of industry/regulatory attendees in 2015 resulted in reduced income.
9.Redundancy is payable after 2 years’ service with Suffolk County Council.
AGM, Item 7, Finances and Funding, 15 October2015, p1