Welsh Council Owed £640,000 by Trust Managing Leisure Services
A trust that was previously in charge of overseeing leisure and cultural services in Merthyr Tydfil now owes the council a staggering £640,000. The Merthyr Tydfil Leisure Trust, also known as Wellbeing Merthyr, had its service contract terminated earlier in April, prompting the council to bring the services back under its control.
During a recent council meeting, it was disclosed by Councillor Anna Williams-Price, Labour, the council’s cabinet member for governance and resources, that the trust had declared itself in liquidation, leaving a debt of £641,000 to the council. The council has adequately provisioned for this debt, but there remains a concern that additional debts may transfer to the council if the trust’s remaining funds fall short.
On a more optimistic note, Merthyr Tydfil Council is reporting a budget surplus exceeding £3 million for the last financial year, 2023/2024. The council’s budget monitoring report presented to the cabinet revealed a provisional net revenue budget surplus of £3.092 million for the financial year. It is recommended that this surplus be transferred to the budget reserve.
As of March 31, 2024, the council’s general reserves totalled £5.723 million, equivalent to 3.75% of the council’s budgeted net revenue spending for that fiscal year. Additionally, the report highlighted that budget savings from corporate vacancies surpassed the projected £1.7 million by an additional £145,000.
Furthermore, the council utilised a £5.5 million contribution from the budget reserve in alignment with the approved budget strategy. The final audited revenue outcome will be disclosed to the council following an external audit conducted by Audit Wales.
Looking ahead to the current financial year, a net revenue budget deficit of £647,000 is predicted for the second quarter spanning April 1 to September 30. Notable deficits are anticipated in education, economy and public protection, as well as neighbourhood services and governance and resources. However, social services and corporate sectors are forecasted to generate budget surpluses, alongside an expected surplus in the council tax collection fund amounting to £465,000.
With the council projecting budget deficits, it is imperative for managers to promptly address these shortfalls, identifying and implementing measures to mitigate their impact.
This financial revelation comes amidst other news stories from Merthyr Tydfil and highlights the financial intricacies faced by local authorities in managing public funds effectively. It serves as a reminder of the importance of prudent financial management practices to ensure the sustainability and delivery of essential services to the community.
As the council navigates these financial challenges, ongoing transparency and accountability in financial matters will be crucial for maintaining public trust and confidence in the council’s stewardship of public resources.