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 3 31/10/08 CAIRNGORMS NATIONAL PARK AUTHORITY FINANCE COMMITTEE FOR INFORMATION Title: 2008/09 SECOND QUARTER REVIEW Prepared by: Alistair Highet, Finance Manager Purpose To present a summary review of income & expenditure for the 6 months to 30th September 2008 and a projection of the financial outcome for the year to 31st March 2009. In addition, to analyse Operational Plan net expenditure for the first 2 quarters of the year. Recommendations The Finance Committee is requested to: a) Note the results for the 6 month period to the end of September 2008 and the projected outcome for the 12 months to 31st March 2009. b) Note the further analysis of Operational Plan net expenditure by programme for the 6 months to 30th September 2008 and the projected outcome, by programme, for the year to 31st March 2009. Executive Summary a) Table 1 shows the financial results for the CNPA over the first 2 quarters of 2008/09. The 6 months to 30th September represent a surplus of £32k against a planned deficit of £56k (the £88k variance representing 4% of income). b) The £88k surplus is reflected in an underspend of Operational Plan expenditure. The Operational Plan expenditure of £577k is, however, £200k greater than the £377k spent over the same period last year (2007/08). c) The projected outcome for the year to 31st March 2009 is a small surplus of £10k. The £17k projected savings against target are reflected by core, mainly payroll, cost savings. d) Table 2 analyses the net expenditure of £549k on Operational Plan programmes over the 6 months to 30th September. Whilst underspent over this period, Operational Plan net expenditure for the full year is expected to in line with budget at £1,611k. e) The 6 month review of budget allocations is currently underway, with initial findings indicating that any additional resources required, such as for Land Management Support, can be found from some natural slippage in other programmes. 2008/09 SECOND QUARTER REVIEW – FOR INFORMATION Background Table 1. Results for the 6 months to 30th September 2008: CNPA 6 12 2008/09 SepSep- 08 Sep-08 Mar-09 Mar-09 Mar-09 08 Operating Cost Statement Actu Budget Varianc Projecte Budge Varian al e d t ce £000's Ytd Ytd Ytd Ytd Ytd Ytd Income Grant in Aid (GIA) from SG 2,063 2,079 -16 4,546 4,546 0 Planning & Other Income 1 0 1 55 55 0 Operational Plan Income 28 28 0 320 320 0 Total Income a) 2,091 2,107 -16 4,921 4,921 0 Expenditure Board members salary 100 102 2 202 204 2 costs Staff salary costs 1,040 1,054 14 2,093 2,107 14 Board and staff salary costs b) 1,140 1,156 16 2,295 2,311 16 Other Board and Staff 131 134 3 265 267 3 Costs Office running costs 106 110 4 216 220 4 IT and Professional Support 83 77 -6 160 154 -6 Other Operating Costs a) 319 321 1 640641 1 Operational Plan c) 577 665 89 1,931 1,931 0 Expenditure Depreciation a) 2828 0 5757 0 Total Expenditure 2,064 2,169 105 4,923 4,940 17 Net Operating Cost 28 -62 90 -2 -19 17 Bank Interest Received a) 5 6-1 12120 Net Income/ -Expenditure d) 32 -56 88 10 -7 17 Notes a) Income and sundry other costs are projected to be in line with Budget for the year. b) Payroll savings against budget at the end of September are expected to be maintained for the remainder of the year. c) Operational plan expenditure at the end of 6 months is £89k below Budget but all programmes are projecting a full spend by the year-end. d) If income and expenditure are as projected for the remaining 6 months to 31st March 2009, a small surplus of £10k will arise. Table 2. Net Operational Plan expenditure for the 6 months to 30th September 2008: CNPA Operational Plan 2008/09 6 12 Sep-Sep-08 Sep-08 Mar-09 Mar-Mar-09 08 09 Expenditure Summary Actu Budget Varian Projecte Budg Varian al ce detce £000's Ytd Ytd Ytd Ytd Ytd Ytd Operating Cost Statement Operational Plan Income 28 28 0 320320 0 Operational Plan 577 665 89 1,931 1,931 0 Expenditure -549 -637 88 -1,611 -1,611 0 Operational Plan Programmes 1. Biodiversity and Landscapes -59 -59 0 -148 -148 0 2. Land Management Support e) -79 -20 -58 -151 -98 -53 3. Sustainable Deer Management f) -3 -16 13 -26 -32 6 4. Outdoor Access f) -124 -135 11 -300 -306 6 5. Sustainable Tourism & Business -85 -53 -32 -182 -182 0 6. Affordable Sustainable Housing f) -22 -63 40 -156 -162 6 7. Awareness and Understanding g) -100 -180 79 -401 -436 35 8. Communications -62 -59 -3 -124 -124 0 9. Planning -3 -28 25 -64 -64 0 10. Corporate Services -11 -24 13 -60 -60 0 Net Operating Cost h) -549 -637 88 -1,611 -1,611 0 Notes e) An additional £53k of budget is expected to be required to cover the cost of the LBBT programme, 2 Land Management Support Officers and extra work on 'Green Farms and Land Management Sustainability'. f) Preliminary savings identified from the initial stages of the 6 month Budgetary review process. g) Budget savings identified on projects relating to Visitor, Entry Point and other new information services which are unlikely to commence in the current financial year. h) As noted previously, programmes are projected to fully spend the overall available budget by the end of the financial year. Alistair Highet 13 October 2008 alistairhighet@cairngorms.co.uk