The Central Durham Crematorium Joint Committee met to discuss financial monitoring, performance, and future budget strategies for the crematorium. A key topic was the proposed increase in cremation fees and how this would impact the budget and services offered. The committee also considered updates to the risk register and internal audit processes.

Budget Strategy

The Central Durham Crematorium Joint Committee was scheduled to discuss the budget strategy for the crematorium, including potential fee increases and the distribution of surplus funds to Durham County Council and Spennymoor Town Council.

A report on the budget strategy noted that there had been significant capital investment of over £4.7 million at Central Durham Crematorium since 2009, with further investments of over £4 million planned.

It was noted that the next cremator replacement works are not scheduled until 2032 and would cost in the region of £2.4 million.

The report stated that fees and charges, which are harmonised with Mountsett Crematorium, are currently £975 and a proposed increase of £50 in 2026/27 to £1,025 would mean that they still remain below the current regional average of £1,066 for neighbouring facilities.

The report stated that from 2026/27 onwards it is proposed that the surplus distribution will be increased to £1,041,250 per year (£833,000 to Durham County Council and £208,250 to Spennymoor Town Council).

The report recommended that the Joint Committee:

i. note and consider the contents of the report;

ii. approve the proposed increase in the fees and charges, as identified in the report;

iii. approve the proposed increase in the surplus redistribution to Durham County Council and Spennymoor Town Council; and

iv. agree to review the budget strategy in September 2026 in preparation for the 2027/28 budget setting year.

Financial Monitoring Report

The Central Durham Crematorium Joint Committee was scheduled to discuss the financial monitoring report, which provided details of the provisional outturn position for 2025/26 and the projected level of reserves and balances at 31 March 2026.

The report stated that the projected revenue outturn is a surplus (before transfers to reserves and distribution of surpluses to the partner authorities) of £1,226,291 against a budgeted surplus of £1,244,054, which is £17,763 less than the budgeted position.

The report also stated that contributions to earmarked reserves are forecast as £17,763 less than originally budgeted.

Performance and Operational Report

The Central Durham Crematorium Joint Committee was scheduled to receive an update on the performance and operational matters at the crematorium.

The report included details of the number of cremations for the period 1 June 2025 to 31 August 2025, with comparative data from the same period last year. There were 548 cremations undertaken in the period, compared to 539 in the same period last year.

The report also included details of the number and value of memorials sold in the period June to August 2025, compared to the same period the previous year. The number and value of memorials sold was 64 / £19,428, compared to 70 / £16,338 in the same period last year.

The report noted that Durham Crematorium was successful in obtaining a Green Flag Award for the fourteenth year running. The Green Flag Award recognises good quality parks and green spaces¹.

The report also included an updated Service Asset Management Plan (SAMP), which will be factored into budget planning in 2026/27 and beyond. The SAMP is split into four priorities of maintenance need and includes all the completed and planned crematorium improvement works.

Provision of Internal Audit, Risk Management, Corporate Fraud and Insurance Services

The Central Durham Crematorium Joint Committee was scheduled to discuss proposals for the continued delivery of Internal Audit, Risk Management, Corporate Fraud and Insurance Services by Durham County Council to cover the period April 2026 to March 2029.

It was proposed that a three-year service level agreement (SLA) is agreed covering the period 2026/27 to 2028/29. The proposed SLA, covering Internal Audit, Risk Management, Corporate Fraud and Insurance services, was included in the report pack.

The proposed annual plan of work to be carried out under this agreement, reflecting the same level of service as currently supplied, is set out in Schedule B of the SLA. The annual fee for each of the three years is also shown in Schedule B.

The report recommended that the Joint Committee approve the proposed Internal Audit, Risk Management, Corporate Fraud and Insurance Services SLA with Durham County Council covering the next 3 financial years, and the proposed annual audit plan and fee as set out in Schedule B of the SLA.

Risk Register Update

The Central Durham Crematorium Joint Committee was scheduled to be informed of the outcome of the half-yearly risk review in September 2025.

The report stated that a service risk register and a health and safety risk register are maintained in accordance with Durham County Council's methodology and approach to risk management.

The report noted that since the previous review, there were no significant changes to report, but that the number of Relief Cremation Attendants / Standby Cremator Operators has been reduced from 4 to 3.

Internal Audit Charter

The Central Durham Crematorium Joint Committee was scheduled to agree on the Internal Audit Charter to be applied to reviews undertaken as part of the Internal Audit plan for 2025/26.

The Internal Audit Charter defines the Internal Audit Service's purpose, authority and responsibility. It establishes Internal Audit's position within the organisation, including the nature of the Chief Internal Auditor and Corporate Fraud Manager's functional reporting relationship with the Joint Committee; authorises access to records, personnel and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities.

The report noted that as a result of the introduction of the Global Internal Audit Standards (GIAS) in the UK Public Sector² and CIPFA's new Code of Practice for the Governance of Internal Audit in UK local Government³, which came into force in April 2025 and replaced the PSIAS⁴, a new Internal Audit Charter has been written.

Annual Review of the System of Internal Audit

The Central Durham Crematorium Joint Committee was scheduled to be advised of a review of the effectiveness of the Durham County Council Internal Audit Service, which was carried out by the County Council's Audit Committee in June 2025.

The report noted that in April 2013, the Public Sector Internal Audit Standards (PSIAS) became effective. The standards apply to Internal Audit in all parts of the public sector in the UK and are mandatory. The standards are intended to reflect that a professional, independent and objective internal audit service is one of the key elements of good governance . The standards were revised from 01 April 2017 and it is these standards that Internal Audit works to.