Gwent | Archive | 2003 | April | 4
From the South Wales Argus, first published Friday 4th Apr 2003.
AN OVERSPEND of almost £160,000 on work at Newport's Civic Centre "definitely will affect spending on future projects" according to the council's finance chief.
Head of finance Joyce Steven confirmed as much at a meeting of the Overview and Scrutiny Forum for Resources yesterday.
The council overspent on its £1million budget by £159,000 for refurbishment of the Civic Centre's west wing and reorganisation of its offices in the year 2001/02.
Almost half of the deficit, £77,000, was spent on the removal of asbestos discovered in the west wing of the building.
The reorganisation of office accommodation was necessary following a radical overhaul of the council departmental structure in 2001.
It is only now that all the final bills are in that the council finance department of the overspend.
Councillor Ron Morris, who sits on the forum, asked whether it would affect future spending, and where the extra cash came from.
In reply, Mrs Steven said: "The asbestos was a significant extra that we couldn't have known about but it did need addressing.
"I'm therefore satisfied that the overspend was necessary. "There definitely will be an effect on how much we spend on future projects which is why it is important that this overspend is properly examined by the council."
Mrs Steven added: "However, it is worth noting that in any given year there are pluses and minuses when it comes to spending."
The council report mentions that in 2001/2 there was an underspend of approximately £100,000 on the civic centre annual sum for capitalised maintenance which, although it has been returned for reallocation, could have provided a partial funding of this overspend.
Mrs Steven said: "We have a tolerance rule that allows us a certain amount of overspend and we would have been well within our quota if it were not for the asbestos."
© Newsquest Media Group 2008