GLASGOW City councils Aleos will provide more than £10m for the council budget this year a new report estimates.
Three of the Arm’s Length External Organisations make a payment to the council to contribute to services.
Cordia, City Building and City Property will each provide cash to the council for services including education, roads and social work.
Yesterday the Evening Times reported how City Building provided more than £5m last year.
The organisation which employs 20000 workers is projected to provide even more with £7.2m projected in the next year, 2016/17.
Cordia is due to contribute £3.2m and City Property £2m.
However the overall eight Aleos will almost £2m short of budget this year according to the new report.
The overall figure is due to Cordia whose budget contribution is in doubt because it is predicted to run a surplus, but £2m short of the £3.2m accounted for.
It will still leave an Aleo contribution to the budget of £10m.
The report by Lynn Brown, the council’s Executive Director of Financial Services states: “Cordia are due to return a discount of £3.026m to the council in 2016/17. There is a considerable degree of uncertainty about the level of surplus that will be returned to GCC as it is subject to both current year trading performance and the ability to deliver transformation savings.”
Cordia which employs more than 4000 staff is predicted to fall short of its target by £1.9m
The council said Cordia was still performing strongly despite difficult conditions.
A spokesman for Glasgow City Council said: “Cordia is on track to deliver an overall budget surplus in a very difficult environment.
“These forecasts are monitored closely by both Cordia and the council and the latest figures show a number of parts of the business, including catering, performing strongly.
“Cordia is currently implementing substantial transformation projects that will achieve efficiency savings and address ongoing budget pressures within its Care services.”
The other council Aleos are projected to either be in surplus, deficit or break even.
City Parking is forecast for a surplus of £96,000, Glasgow Life a surplus of £2.4m, Community Safety Glasgow £780,000, access is predicted to break even.
Clyde Gateway has a budgeted for £9m deficit this year and Jobs and Business Glasgow a deficit of £2.8m both funded from accumulated reserves.
The SNP have concerns about the Aleos and their purpose and the level of scrutiny applied.
Group leader, Susan Aitken, said: “Scrutiny tends to be a couple of times a year. There is a bit of a gap between the democratic oversight of the ALEOs and the ideal situation.
“We want to look in more depth to go back to the basics of why has this function been removed from direct council control and direct scrutiny. Democratic oversight is lacking.”
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