Decision:
*RESOLVED –
1. That the Building Cleaning D.S.O. Business Plan forecast for 2021/22 be approved.
2. That the proposal to move to new accounting arrangements from 2022/23 be noted.
REASON FOR DECISIONS
To update the Council’s Medium-Term Financial Plan.
Minutes:
The Interim Service Director - Finance presented a report asking members to approve the Business Plan 2021/22 for the Building Cleaning Direct Services Organisation (DSO).
The DSO recharged the Council’s General Fund Revenue Budget, Housing Revenue Account, and various external customers for the provision of building cleaning services. During the pandemic, the DSO had played a key role in keeping the Council’s buildings safe for members of the public to visit and council staff to carry out their roles.
The original forecast for 2020/21 and the current estimated outturn at year-end were detailed in Appendix A of the officer’s report.
Under the current arrangements the costs of providing building cleaning services were accounted for separately as a trading account and charges made to customers in receipt of those services. These arrangements would continue in 2021/22.
From 2022/23, however, it was proposed that the costs for service delivery be directly charged to portfolios, which would negate the requirement to keep a separate trading account and eliminate the need for the current accounting arrangements. This change to the accounting arrangements would not impact on the overall financial position of the General Fund.
*RESOLVED –
1. That the Building Cleaning D.S.O. Business Plan forecast for 2021/22 be approved.
2. That the proposal to move to new accounting arrangements from 2022/23 be noted.
REASON FOR DECISIONS
To update the Council’s Medium-Term Financial Plan.