Issue - meetings

To consider the report of the Director responsible for Finance.

The Director responsible for Finance presented the report on Strata’s final accounts for 2017/18. The 2017/18 Business Plan had revised the savings profile set out in the original Business Case over the initial ten year period of the Company. Strata had delivered a revenue savings of £575,804 in 2017/18, with the key variation being the former comparing well against the original target of £252,836.

Strata Joint Scrutiny Committee considered the report at its meeting on 31 May 2018 and its comments were reported.

In response to a Members’ question, the Director responsible for Finance stated that improvements had been made to the process of identifying spending need and where there would be an under spend.

RESOLVED that the report be noted including the Pension Fund deficit.

To consider the report of the Director responsible for Finance.

The Strategic Lead Finance reported that Strata had been given a total of £6.277 million to run the IT Services in 2017/18 along with funding for various capital projects. The 2017/18 Business Plan had revised the savings profile set out in the original Business Case over the initial ten year period of the Company with savings split into cashable revenue savings and savings to the Councils from not having to implement specific capital projects individually.

Strata had delivered £575,804 of revenue savings in 2017/18 and had refunded £565,000, the key variation being the former comparing well against the original target of £252,836. The three authorities would be considering future policy in respect of potential savings levels with regard to risk, the transition agenda and future objectives of the authorities. 

The Councils had received capital funds to finance projects along with £150,000 a year towards improvements to the main network.  At the end of 2017/18 the only aspect of the original infrastructure project outstanding was the telecoms project and there was £99,000 remaining to fund the completion of this work. In addition, Strata had spent £360,000 enhancing the capacity and stability of the datacentre and added a new customer contact centre. This has been funded via the annual capital contributions.

The report set out the draft Statement of Accounts showing the true financial position of the Company. Members were advised that the pension fund deficit was backed by the three authorities through the local government pension scheme. However, the figure had resulted in a private company questioning the ability to enter into lease agreements with Strata. This issue was being examined by the Director responsible for Finance. 

Strata Joint Scrutiny Committee noted the report including the Pension Fund deficit.