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MPC(22)66.04 Explanation of Variances

Agendas & PapersFull Council Uploaded on June 9, 2022

Explanation of Variances

Box 3 – Total Other Receipts

There was a reduction of £95,429 in 2021/22 compared to 2020/21, mainly due to receiving lower Community Infrastructure Levy (CIL) payments and grants in 2021/22.

CIL payments in 2021/22 totalled £106, 600 compared to £183,667 in 2020/21. This was a reduction of £77,067. This is due to fewer developments happening in Melton in this financial year.

Bank interest was £18 in 2021/22 compared to £37 in 2020/21. Building society interest was £253 in 2021/22 compared to £429 in 2020/21. This is due to a reduction in interest rates.

Rent from tenants was slightly higher in 2021/22 than 2020/21 – £17,004 versus £15,587. This is because there were no rent breaks in 2021/22 but there was in 2020/21 due to the Covid pandemic. Service recharges to tenants was lower in 2021/22 than 2020/21 (£1,566 versus £2,346) due to supplier changes resulting in cost savings and tenants using less electricity.

We received £11,736 in grants and other sundry income in 2021/22 compared to £21,117 in 2019/20 (for tennis court fencing replacement). We received £10,000 in Covid support grants in 2020/21 but only £729 in 2021/22.

Box 6 – All Other Payments

There was an increase in payments of £65,731 in 2021/22 compared to 2020/21. This is mainly due to CIL funded projects taking place in 2021/22 and taking on 21 parcels of land from the District Council which incurred new expenditure. Expenditure that was higher in 2021/22 than 2020/21:

Road Safety Improvements (£6,360 versus £42) – purchase of SID and part payment of costs of two road crossings – scheduled to be completed in July 2022)

Pavilion Project (£21,141 versus £1,883) – construction of a new Pavilion started in 2020/21.

Car Park Improvements (£46,424 versus £0) – car park at Recreation Ground was increased and resurfaced in 2021/22. No work was carried out in 2020/21.

Chair’s Allowance (£121 versus £65) – more events taking place post Covid.

Maintenance Officer equipment costs (£694 versus £412) – more equipment required to maintain land that was divested to the Parish Council in 2021/22.

Staff Salaries (£48,398 versus £47,267) due to NJC pay rises and pay increments. Pension contributions increased in 2021/22 (£5,650 versus £4,145) as a new member of staff joined in 2021/22 and was enrolled in the pension scheme.

Computer support and hardware (£1,146 versus £812) and computer hardware – due to new member of staff joining and requiring new equipment.

Recruitment costs (£399 versus £0) – due to advertising costs associated with clerk recruitment.

Staff expenses (£567 versus £275) – due to increased mileage for maintenance officer from taking on land from East Suffolk Council.

Insurance (£3,838 versus £3,215) – increased cost to cover the land and equipment divested to the Parish Council from the District Council.

Legal Costs (£6,080 versus £770) – these increased costs were due to the land transfer from the District Council and lease renewal with tenants.

General Maintenance (£841 versus £486) – increased costs resulting from taking on land from the District Council.

Hall Farm Road (£771 versus £0) – this is one of the parcels of land divested from the District Council in 2021/22. Payments were made for a bench and replacing fence panels. We did not own the land in 2020/21.

Events (£194 versus £0) – no events took place in 2020/21. This cost is for a public consultation at Hall Farm Road.

Signage (£7,293 versus £2,135) – purchased 2 noticeboards, new sign for Recreation Ground and new signage for newly acquired land from the District Council in 2021/22.

Circular Walks leaflet (£248 versus £0) – The Parish Council commissioned a walks leaflet in 2021/22.

Greenspace Management (£10,177 versus £4,799) – costs increased due to the acquisition and maintenance of land from the District Council.

Woodland (£7,460 versus £0) – work identified by the risk assessment carried out in 2020/21 was done in 2021/22. It was high because it covered the land divested from the District Council.

Outdoor Furniture (£2,836 versus £405) – the Council refurbished a bus shelter in 2021/22. They only purchased a bench in 2020/21.

Expenditure that was lower in 2021/22 than 2020/21:

Stationery, printing and postage (£628 versus £838) – due to reduction in printing and sending physical mail.

Telephone/broadband (£948 versus £1,169) – due to reduction in days the office is open, and number of phone calls made.

Office service/maintenance costs and Business Rates (£9,590 versus £15,76) – due to tenant now paying their own Business Rates (previously the Parish Council had to pay for the whole building) and sharing maintenance costs.

Office utility costs (£884 versus £1,315) – due to supplier changes and tenants/Parish Council using less electricity.

Audit (£920 versus £1,100) – lower cost of audit due to turnover reduction from previous year.

Staff training (£160 versus £625) – due to staff undertaking less training in 2021/22 after the Clerk undertaking CILCA training in 2020/21.

Grant Giving (£949 versus 1,059) – due to a reduction in grants awarded this year.

Neighbourhood Plan (£62 versus £437) – due to no work taking place on the Neighbourhood Plan this year. Cost is for the website hosting.

Security Infrastructure (£935 versus £3,890) – CCTV was installed in 2020/21 (3 cameras) and an extra camera was installed in 2021/22. The costs for 2021/22 include the annual maintenance and running costs.

Tree Risk Assessment (£0 versus £4,869) – no risk assessment took place in 2021/22 (they happen every 18 months). Cost was high in 2020/21 as it included the land that was being divested from the District Council.