Explanatory Memorandum to the Chair of the Finance Committee
Background
The Estimate for 2020/21 was scrutinised by the Finance Committee in October 2019 and included in the Annual Budget Motion in December 2019.
Included within the Estimate submission were references to the implementation of the new accounting standard, IFRS16, that has now been postponed for 12 months.
Appendix A of the original submission contained two budget proposals – including and excluding the effects of IFRS16. The budget including the impact of IFRS16 was approved. Since adoption has been delayed it is proposed to revert to a budget excluding IFRS16 - the changes overall are minor:
Resource -£16k
Cash No change
There are no other changes proposed in this Supplementary Budget as attached at Appendix A.
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Appendix A |
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2020-21 |
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2020-21 |
2020-21 |
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PSOW Expenditure |
Revised budget - proposed |
Previously approved budget |
Supplementary Budget changes – due to postponed implementation of IFRS16 |
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Staff salaries and related costs |
£3,889 |
£3,889 |
0 |
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Premises and facilities |
£425 |
£202 |
+223 |
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Professional fees |
£280 |
£280 |
0 |
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ITC costs |
£190 |
£190 |
0 |
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Office costs |
£118 |
£98 |
+20 |
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Travel, training and recruitment |
£90 |
£90 |
0 |
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Communications |
£50 |
£50 |
0 |
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One-off costs of new powers (revenue) |
£0 |
£0 |
0 |
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Total Revenue Expenditure |
£5,042 |
£4,799 |
+243 |
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Total Income |
-£17 |
-£17 |
0 |
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Net Revenue Expenditure |
£5,025 |
£4,782 |
+243 |
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Capital Expenditure |
£25 |
£25 |
0 |
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One-off costs on new powers (capital) |
£0 |
£0 |
0 |
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Total Operational Resource |
£5,050 |
£4,807 |
+243 |
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Non-Cash Movements |
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Depreciation |
£60 |
£60 |
0 |
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Depreciation – leased assets |
0 |
£249 |
-249 |
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Financing charge – IFRS 16 |
0 |
£10 |
-10 |
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Total Resource Expenditure |
£5,110 |
£5,126 |
-16 |
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Depreciation – total |
-£60 |
-£309 |
+249 |
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Financing charge – IFRS 16 |
0 |
-£10 |
+10 |
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Change in working capital – IFRS 16 |
0 |
£243 |
-243 |
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Other non-cash movements |
£20 |
£20 |
0 |
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Cash Requirement from WCF |
£5,070 |
£5,070 |
0 |
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