Item 12 Dumbarton Common Good Budget Update 2025/26
West Dunbartonshire Council · 26 March 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council: 26 March 2025 ___________________________________________________________________ Subject: Dumbarton Common Good Budget Update 2025/26 1. Purpose 1.1 The purpose of this report is to advise Council of the forecast position of the Dumbarton Common Good Fund as at 31 March 2025 and seek approval for a revised 2025/26 Dumbarton Common Good budget. 2. Recommendations 2.1 Members are asked to: i) Note a projected 2024/25 Dumbarton Common Good deficit of £157,805. ii) Approve the revised 2025/26 Dumbarton Common Good budget of £468,224 expenditure against projected income of £376,000 representing a budgeted deficit of £92,224 as set out in Appendix 1. 3. Background 3.1 On 6 March 2024 Council approved the 2024/25 budget for the Dumbarton Common Good and noted indicative budgets for the period to 2026/27. The 2024/25 budget, as shown on Appendix 1, has since been updated to reflect the actual figures carried forward from 2023/24, as opposed to the estimated figures which were included in the original 2024/25 budget. 3.2 On 6 March 2024 Council was also advised that a comprehensive review of the recurring annual grant awards would be carried out during 2024/25 to ensure the sustainability of the fund in the longer term. The conclusions of this review were reported to the Corporate Services Committee on 5 February 2025 and are summarised in paragraphs 4.2 – 4.3 of this report 3.3 The Prudential Reserve of the Dumbarton Common Good remains at £25,000. 4. Main Issues 4.1 Appendix 1 details the Dumbarton Common Good 2024/25 financial performance. It highlights an anticipated deficit of £157,805 as anticipated expenditure (£500,138) will exceed anticipated income (£342,333). This means £157,805 will be deducted from the brought forward reserves of £561,314, resulting in £403,509 being carried forward into 2025/26. 4.2 Based on projections into the future showing a declining fund balance, a review was carried out which focused on: ITEM 12
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Estimated income, expenditure and fund balances Assessment Process / Criteria for Awards Current award levels and benefiting organisations/groups Award review periods 4.3 The outcome of the review was reported to the Corporate Services Committee on 5 February 2025 which approved: the creation of a new two stage assessment process the creation of a new application form and supporting guidance the creation of a £10,000 per annum maintenance budget to ensure Dumbarton Common Good sites remain fit for purpose 2025/26 awards made on a single year basis as detailed in appendix 1 all beneficiaries to be contacted to advise them of 2025/26 awards and advise they will be required to reapply for 2026/27 funding with those applications assessed against the revised assessment process. that, from 2026/27 onwards, the Dumbarton Common Good will operate on a three-year cycle of funding. 4.4 In terms of the adequacy of reserves, the prudential level of reserves is considered to be adequate to deal with any unforeseen financial pressures on the fund, based on previous experience and future expectations, specifically in relation to income streams. The current level of reserves remains significantly above the prudential level and are therefore judged as being adequate. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 Other than the financial position noted above, there are no financial or procurement implications. 8. Risk Analysis 8.1 The Council must consider financial and reputational risks when considering funding to external organisations. The financial risk is that the Dumbarton Common Good remains within budget, however with a robust budget being agreed and ongoing monitoring and review will ensure that this is protected. There is a risk that the voluntary organisations awarded grants do not remain financially sustainable and that grant payments made are not used for the purposes intended. Organisations funded by the Dumbarton Common Good must comply with conditions of grant which ensures that the intended spend meets the funding criteria. The application process includes providing
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financial accounts which allows officers to assess the financial sustainability of the organisations. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 Legal and Financial Officers have been consulted in preparing this report. 12. Strategic Assessment 12.1 Good financial governance is essential to the delivery of each of the Council’s Strategic Priorities. __________________ Laurence Slavin Chief Officer – Resources Date: 28 February 2025 __________________________________________________________________ Person to Contact: Janine Corr, Finance Business Partner Council Offices, Church Street, Dumbarton E-mail: janine.corr@west-dunbarton.gov.uk Appendices: Appendix 1 – 2024/25 Probably Outturn and Approved 2025/26 Budget Background Papers: Report to Corporate Service Committee – 5 February 2025 – Review of the Dumbarton Good Fund Wards Affected 2 and 3.