Falklands : Standing Finance Committee Report for August 2006
Submitted by Falkland Islands News Network (Juanita Brock) 29.08.2006 (Article Archived on 12.09.2006)
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STANDING FINANCE COMMITTEE REPORT (25/08/06)
By J. Brock (FINN)
A meeting of Standing finance Committee took place at 0800hrs on Friday, 25 August 2006. Present were Cllrs Summers (Chair, Cockwell, Hansen, Robertson, Rendell, Clausen, and Stevens. Apologies came from Cllr Davis who is away and Derek Howatt. Cllr Clausen expressed an interest in the Stanley Kids Zone paper as she is a user of the service.
The minutes of the meeting held on 28 July 2006 were agreed. Matters arising brought a discussion about Additional depreciation and the desire to have depreciation figure listed 18 months in advance. It was seen to be difficult as there were things like computers that were difficult to derive a figure from. Ian Hansen mentioned medical services overseas taken from salaries. Keith Padgett said it would be difficult to calculate between the old and new financial years.
Cllr Clausen asked about rent rebates and Cllr Summers said it would cause concern especially when the rates for water and rubbish have gone up. Keith Padgett mentioned that there were more and Cllr Cockwell said that many applicants wanting rebates were on low income. Keith Padgett mentioned that welfare cases also figured into rent rebates. Cllr Summers said that people on low incomes applying for rebates should be means tested. There are a number of assistance schemes. There was a mentioned that some supernumerary expenditure had to be rectified from last year’s budget.
Discussion about the Papers:
The Review of Coastal Shipping Costs showed that from the 2003/2004 financial year to the 2005/2006 financial year the cost of the service was £2,342,586.00. It was originally envisaged that depreciation on the Tamar would be included in these figures. Seeing that the Tamar originally cost £1.5Million, depreciated over 10 years on a straight line basis, the vessel has a book value of nothing at the start of the current contract thus no depreciation was included in the accounts of FIDC. FIDC staff are now involved in management of the service at a cost as high as £50,000 that has not been extracted from FIDC accounts directly as a separate analysis has not been kept.
The Virement Report No 13 of 2005/06: Shortfalls and additional funding for Civil Aviation, FIGAS, Posts/Admin, Medical, Dental, the Swimming Pool, Community School, Customs, Fisheries, Scientific Budget PWD Design, PWD Quarry, PWD Plant and Vehicles, PWD Electricity, PWD Highways, Courts, FIDF, Police, Fire & Rescue, Treasury, Transfer Payments, Printing, Computers, and FIGO amounted to £327,033.00.
The Financial Management Report: Losses incurred by the Power and Electrical Department featured in this report. Keith Padgett noted peaks but no variance in Fisheries, FIGO and Education. The Education Department salaries were £134,000.00. Twelve teachers came to the end of their contracts and gratuities were paid. A quarterly report was asked for on the expenditure for the wind farm. Cllr Summers suggested that an updated budget position be produced each quarter. This could be done by the year end. Richard Cockwell asked if there would be one lump sum deposited for the wind farm and Chris Simpkins said he would be surprised if there was. Some would be put down up front with a lump sum at the end of the contract. The contract has been signed.
Investment Performance: Rising oil costs have been blamed for much of the increased expenditure. Both HSBC and Newtons had performed below the benchmark with HSBC, normally the best performer, being worse off than Newton’s. Cllr Summers mentioned that even in a falling market you should be able to make benchmark. An eye would be kept on the markets and the investment performance and values.
Budget Carryovers: Councillors discussed bringing forward funds for items that were not completed during the last financial year. There was custom testing for Autistic Students at the Education Department, and Computer Section upgrades. Also discussed was last financial year’s MPs Visit, two houses at MPA and the Historic Building Renewal Programme at £3,380.00. Other housing issues had not been paid but the invoices had not been received. Other items in the paper include Environmental Studies, Funding for the Computer Section and the wool freight subsidy.
Relevant EXCO Papers Made Public: The Following papers were made public – FIG Computer Network (228/06), Fishing Access Fees – 2007 (222/06), FIMCO 2006 Business Review (224/06), Review of the Dental Department (237/06) and the Falkland Islands Wool Review Strategic Plan.
Finally, notes from a joint meeting of Standing Finance Committee and the FIMCO Board were put in the public sector. It was decided to continue to support the Meat Company but to set financial targets for it so the deficit won’t be as bad this time next year. There was high praise for the Abattoir’s performance during the last season.
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