Agenda item

Report of the BHE & Charities Finance Director (representing the Chamberlain)

The Committee considered a report of the BHE & Charities Funding Director (representing the Chamberlain) providing a financial update on BHE Funding activities to 31 January 2023 and an updated forecast for the financial year ending 31 March 2023.

In response to a question from a Member regarding the underspend against the current year’s budget, the Managing Director of BHE advised that an anticipated spend for the current year had been agreed during the Covid-19 pandemic, adding that whilst trends in respect of forecasting were improving, there was further work to do. The BHE & Charities Finance Director added that figures relating to the Propel programme had been added to the figures since the previous meeting. The Member responded that whilst they understood the reasons, there was a degree of disappointment, noting that overhead costs were also proportionate to the total amount granted and were therefore more cost-effective as funding increased.

The Managing Director of BHE further confirmed that the charity had access to the City Corporation’s Internal Audit function, and advised that the underspend partly related to the timing of uplift funds, with most main grant funding work delivered to target. The Member commented that it was worth considering whether underspending on the charity’s grants budget should be considered as a formal risk, as it may encourage a higher level of scrutiny. The Managing Director of BHE advised that this would be taken away for consideration by officers.

The Chair commented that it was also key to distribute funding as efficiently as possible, noting the increasing long-term nature of grants awarded, and the likely impact of the Propel programme. With regards to operational costs, another Member encouraged officers to consider the relational impact surrounding the use of consultants, as this risked a more distant relationship between funder and grantee.

The Managing Director of BHE noted Members’ comments and reiterated officers’ commitment to meeting the ongoing challenge, also advising that there had been positive work on the BHE budget for next year, which had been approved by the BHE Board at its February meeting and would be submitted to the 9 March Court of Common Council meeting. In response to a question from a Member, the Managing Director of BHE confirmed that the charity had access to the City Corporation’s internal audit function and that grants expenditure was picked up as part of risk management.

The Chair thanked Members for their comments, which would be taken into account and Members’ concerns noted.

RESOLVED - That the Grants Committee of the Bridge House Estates Board, in the discharge of functions for the City Corporation as Trustee of Bridge House Estates and solely in the charity’s best interests, note the contents of the report.