Issue - meetings

Commercial and Regulatory Services – (C-061-2020-21) – this Qualis report covers the 4th Quarter up until the 31 October 2020.

The Cabinet discussed and noted the report.

The Commercial and Regulatory Services Portfolio Holder, Councillor A Patel introduced the Quarter 4 outturn for Qualis.

The management report presented by Qualis covered the 4th Quarter up until the 31 October 2020, and so is effectively the year end.   This 4th Quarter took longer to produce as it needed to align to the Final Accounts and Audit process.  This was completed on the 21 January 2021 and so the reconciled management information has now been provided to the Council. 

The first year’s trading for Qualis was almost entirely taken up with set-up, governance and the appointment of a permanent staffing structures. The Coronavirus pandemic had a significant impact in terms of delaying this whilst the Council focused on the immediate response effort.    As a result, very little income was received during the first year, whilst costs were still incurred in the form of professional fees, equipment, salaries and recharges to the Council.  Consequentially, the combined loss across the Qualis Group totalled £1.49 million and this would be added to the Qualis Balance Sheet, carried forward and set against future expected profits.

Despite making a loss as a Group taxation was still payable on elements of Qualis activities and this Tax has been paid been paid at the appropriate levels.  

Given the points above and noting the impact of Covid19 on all Council activities, Qualis had performed in line with expectations across its first year up until 31 October 2020.

Councillor Heap asked about what exactly had been bought in Leatherhead. He was told that it was the lease of a building. They had bought the freehold of an office building and would have ownership of the management company.

Councillor Murray thought the recent presentation very useful. He then asked if Qualis had recognised the Trade Union side. He was told that they had.

Councillor Wixley asked at what point would Qualis start repaying their loans to the District Council. He was told it would be when they started to generate income from their ventures, in their second year of trading.

Decision:

The Cabinet discussed and noted the report.

Reasons for Proposed Decision:

The Governance framework for Qualis, as agreed by Cabinet in February 2020, set the requirement that Qualis should report to Epping Forest District Council on its performance Quarterly.

 Other Options for Action:

None, as this was a report on the previous quarter.