WARNING - By their nature, text files cannot include scanned images and tables. The process of converting documents to text only, can cause formatting changes and misinterpretation of the contents can sometimes result. Wherever possible you should refer to the pdf version of this document. CAIRNGORMS NATIONAL PARK AUTHORITY Finance Committee Paper 2 30/10/09 CAIRNGORMS NATIONAL PARK AUTHORITY FINANCE COMMITTEE FOR INFORMATION Title: 2009/10 SECOND QUARTER REVIEW Prepared by: Alistair Highet, Finance Manager Purpose The purpose of this paper is to present a summary review of income & expenditure for the 6 months to 30th September 2009 and a projection of the financial outcome for the year to 31st March 2010. The paper also reviews net Operational Plan expenditure over the same period. Recommendations The Finance Committee is requested to: a) Note the results for the 6 months to the end of September 2009 and the projected outcome for the 12 months to 31st March 2010. b) Note the further analysis of net Operational Plan expenditure by programme for the 6 months to 30th September 2009 and the projected outcome, by programme, for the year to 31st March 2010. Executive Summary a) Table 1 shows the financial results for the CNPA over the first two quarters of 2009/10. The 6 months to 30th September 2009 resulted in a gain of £29k against a planned gain of £1k (the £28k variance representing 1% of income). b) The £28k surplus is reflected mainly in savings of £36k on core operating costs. c) The projected outcome for the year to 31st March 2010 is a loss of £46k, which represents a variance of £17k against the original budget for the year. d) The variance of £17k represents the outcome of the Park Authority’s mid-term budget review. This has managed the £361k (or 20%) original over programming reported at the end of quarter one down to current projected levels. e) £50k of additional core cost savings, above required efficiency levels, has been targeted for the year and this has allowed Operational Plan budgets to remain £67k above original budget. f) Final budget levels have been left at £17k higher than originally budgeted as, historically, some expenditure slippage can occur towards the end of the year. It is therefore probable that the final outcome for the year will be closer to break even. PAGE 2 2009/10 SECOND QUARTER REVIEW – FOR INFORMATION Table 1. Results for the 6 months to 30th September 2009: CNPA 6 12 2009/10 Sept-09 Sept-09 Sept-09 Mar-10 Mar-10 Mar-10 Operating Cost Statement Actual Budget Variance Projected Budget Variance £000's Ytd Ytd Ytd 12 mths 12 mths 12 mths Income Grant in Aid and other income 2,140 2,143 -3 4,862 4,862 0 Operational Plan income 275 290 -15 689 689 0 Total Income a) 2,415 2,433 -18 5,551 5,551 0 Expenditure Board and Staff salary costs 1,156 1,181 25 2,413 2,438 25 Other Board and Staff Costs 104 127 23 230 253 23 Office running costs 114 105 -9 207 209 2 IT and Professional Support 68 65 -3 131 131 0 Core Operating Costs b) 1,442 1,478 36 2,981 3,031 50 Operational Plan Expenditure c) 915 926 11 2,559 2,492 -67 Depreciation 29 28 -1 57 57 0 Total Expenditure 2,386 2,432 46 5,597 5,580 -17 Recognised Gain/-Loss d) 29 1 28 -46 -29 -17 Notes a) Income for the year is projected to be in line with budget. b) Significant savings in board/ staff salary and other costs have been made over the first 2 quarters of 2009/10. These include £13k in overall salary costs, £10k in pension costs and £13k in training costs. A saving of £50k on core operating costs has now been targeted for the year to enable increased spending on the Operational Plan. This saving is on top of the required 2% recurring efficiency savings incorporated in budget targets. c) Operational plan expenditure for the year is projected to be £2,559k, or £67k above original budget. This represents the outcome of the mid-term budget review to manage down the original £361k (20%) of over programming on which Programme Managers based their initial planning. d) The combined effects of targeted cost savings and final Operational Plan expenditure budgets is a projected loss of £46k for the year, £17k higher than originally budgeted. This outcome will move closer to break even if there is any further reduction in planned expenditure. PAGE 3 Table 2. Net Operational Plan expenditure for the 6 months to 30th September 2009: CNPA Operational Plan 6 12 2009/10 Sept-09 Sept-09 Sept-09 Mar-10 Mar-10 Mar-10 Expenditure Summary Actual Budget Variance Projected Budget Variance £000's Ytd Ytd Ytd 12 mths 12 mths 12 mths Operating Cost Statement Operational Plan Income 275 290 -15 689 689 0 Operational Plan Expenditure e) 915 926 11 2,559 2,492 -67 e) 640 636 -4 1,870 1,803 -67 Operational Plan Programmes 1. Biodiversity and Landscapes 40 53 12 170 143 -27 2. Land Management Support 76 73 -3 190 203 13 3. Sustainable Deer Management 1 10 8 12 27 15 4. Outdoor Access 64 55 -9 285 289 4 5. Sustainable Tourism & Business h) 106 139 34 362 361 -1 6. Affordable Sustainable Housing g) 171 104 -67 214 111 -103 7. Awareness and Understanding h) 102 133 31 448 474 26 8. Communications 49 48 -2 113 111 -2 9. Planning 30 21 -9 41 30 -11 10. Corporate Services 0 0 0 35 54 19 Net Operating Cost e), f) 640 636 -4 1,870 1,803 -67 Notes e) Budgeted net Operational Plan expenditure is now £67k higher than original target levels. This is the result of the midterm budget review for 2009/10, which managed the original £361k of over programming in Programme Managers budgets down to current projected levels. f) Net expenditure of £640k for the first 6 months of 2009/10 compares with net expenditure of £549k for the 6 months to the end of September 2008. Current year total expenditure is broadly in line with overall target at the end of the second quarter. g) Programme 6 reflects the costs of the Local Plan Inquiry and the requirement to allocate additional budget for the year to this activity. h) Variances in these programmes at the end of the second quarter of 2009/10 relate to non-critical timing differences. Alistair Highet 16 October 2009 alistairhighet@cairngorms.co.uk