The Mountsett Crematorium Joint Committee met to discuss performance, finances, risk management and audit reports. The meeting included a review of the crematorium's performance and operations, a financial monitoring report, an update on the risk register, and the annual internal audit report. Councillors also considered the minutes from the previous meeting.

Annual Internal Audit Report

The committee was scheduled to review the annual internal audit report for 2024/25. The report was expected to provide an opinion on the adequacy and effectiveness of the committee's framework of governance, risk management, and control. According to the report, internal audit work was carried out in accordance with the Public Sector Internal Audit Standards (PSIAS).

The report was expected to provide a Substantial overall assurance opinion on the governance, risk management, and internal control arrangements. The report stated that:

This Substantial opinion identifies that there is a sound system of control. Any weaknesses identified expose some of the system objectives to minor risk.

The report was expected to summarise work carried out by Durham County Council Internal Audit and Risk Service during 2024/25, as part of the three-year Service Level Agreement. The key areas of assurance of the control environment were financial management, risk management and corporate governance. The annual review of processes and procedures in place at the crematorium evaluated the management of risks including:

• Income is not accounted for/misappropriated.
• Significant risks are not being managed and the objectives are not being achieved.
• Ineffective budget monitoring processes are in place.
• Unauthorised payments are made.
• Employees are incorrectly paid.
• Equipment failure.
• Non-compliance with the Cremation Regulations 2008 and with the Federation of British Cremation Authorities Code of Cremation Practice.
• Lack of experienced staff.
• Insufficient capacity to meet demand in the event of an epidemic, pandemic or major disaster.
• Stock / Assets are not accounted for / misappropriated.
• Damage / theft of equipment.
• Ashes are disposed of incorrectly.

Financial Monitoring Report

The committee was scheduled to discuss the financial monitoring report for the period of April 2024 to March 2025. The report included the projected level of reserves and balances as of 31 March 2025.

The projected revenue outturn was a surplus of £370,589 against a budgeted surplus of £388,983, which is £18,394 less than the budgeted position. The report noted that contributions to the earmarked reserves are forecast as £18,394 less than originally budgeted.

The report stated that in line with the MCJC Reserve Policy to maintain a General Reserve of 30% of the income budget, a transfer to the General Reserve of £53,204 is required. This is partly offset by a contribution from the revenue surplus of (£20,589) and, combined with a transfer of £15,000 to the Repairs Reserve, this results in a net transfer from the Cremator Replacement Reserve of £47,615.

The retained reserves of the MCJC at 31 March 2025 are forecast to be £463,251 along with a General Reserve of £389,084, giving total reserves and balances position of £852,335 at the year end.

The report also provided explanations for significant variances between the original budget and the forecast outturn, including:

• Employee costs being £2,176 lower than projected due to lower overtime.
• Premises costs being £5,012 lower than projected due to delayed SAMP works[^1] for carpet replacement. [^1]: SAMP refers to 'Structural Asset Management Plan' works.
• Transport costs being £288 more than projected due to mileage expenses.
• Supplies and Service costs being £2,762 less than projected, mainly due to lower actuals for software (Plotbox).
• Income being £8,647 lower than projected mainly due to an overestimation in crematorium fees income.

Performance and Operational Report

The committee was scheduled to receive a quarterly update on the performance and operational matters at Mountsett Crematorium. The report included data on the number of cremations performed between 1 January 2025 and 31 March 2025, with comparative data from the previous year.

In total, there were 404 cremations undertaken during the period 1 January 2025 to 31 March 2025, compared to 347 in the same period last year, an increase of 57. The report also included a breakdown of where the deceased's families came from:

• Gateshead: 116
• Durham: 199
• Outside Area: 89
• Total: 404

The total number of cremations in 2024/25 was 1,345 compared with 1,370 in 2023/24, a decrease of 25. The report noted that the 2024/25 budget was set at a prudent assumption of 1,350 cremations during the year, and the actual number was therefore 5 less than the budgeted position. This resulted in an under achievement of cremation fee income of £38,540.

The report also provided details of the number of direct cremations:

The report also outlined the number and value of memorials sold in the period January to March 2025 compared to the same period the previous year.

In overall terms the number and value of memorials sold of 31 / £5,570 compares to 23 / £5,704 in the same period last year, a decrease of 8 memorials and a small increase in income of £134.00.

The report also mentioned that the Joint Conference of the Federation of Burial & Cremation Authorities and the Cremation Society of Great Britain is to be held at the Hilton, Utilita Bowl, Southampton from Monday 23rd to Wednesday 25th June 2025 and that arrangements would be made for representation at the conference by the Bereavement Services Manager & Registrar.

Finally, the report noted that Willowburn Hospice and Northeast Air Ambulance had been nominated to receive funds from the Recycling of Metals Scheme.

Risk Register Update

The committee was scheduled to receive an update on the risk register for 2024/25. According to the report, both a service risk register and a health and safety risk register are maintained.

The report stated that there were no significant changes to report since the previous review, but a couple of minor updates were included:

• The number of Relief Cremation Attendants / Standby Cremator Operators has been reduced from 4 to 3.
• Mountsett Crematorium previously had one temporary cremator installed whilst the 2 ATI Cremators were being replaced, but this has now been replaced with two permanent IFZW units.

The report concluded that the net evaluation of every risk is within the risk appetite.