Agenda item

(Report of the Head of Finance & Procurement – Anthony Thomas)

Members considered the Statement of Accounts 2017/18 and Mr Thomas delivered a Presentation to explain the report in more detail.  Mr Thomas explained that The Accounts and Audit (England) Regulations now require a Local Authority to certify its set of Accounts by 31 May and publish an Audited set by 31 July each year and the Council’s Constitution assigns responsibility for considering and approving the Statement of Accounts to the Audit & Member Standards Committee to enable the Chairman to sign them off.  Mr Thomas explained that part of the findings were in Agenda item no. 6 – External Auditors Audit Findings Report but Mr Thomas said there were no significant issues of concern for the Committee to consider. 

Mr Thomas summarised the main reasons why the general fund deficit (expenditure greater than income) of £450,000 becomes greater deficit on provision of services in the comprehensive income and expenditure statement (CIES) of £3,181,000. He explained that the Council prepared its Money Matters Reports during the year on a Statutory Funding Basis (excluding items such as depreciation and the full cost of pensions) and the CIES was prepared using accounting standards as if the Council was a Company.  The movement in reserves statement showed how usable unusable (accounting reserves such as the pensions reserve) reserves has changed during the financial year.  The balance sheet for 2017/18 was explained as being a snapshot of the Council’s assets, liabilities, cash balances and reserves at the year-end date.  The major changes in the balance sheet during the financial year were explained and the cashflow statement shows why the level of cash and cash equivalents had increased by £864,000 during the financial year. 

Members asked questions on the Annual Governance Statement including the statement “we ensure that communication methods are effective and that members and officers are clear about their roles with regards to community engagement” – this was challenged as a member said they had never been asked within their role to take place in any community engagement.  It was agreed that this was interpretation - it related to the training members were offered which enabled them to engage within their constituents in their wards – the statement was more aspirational than mechanical.

Comments were made that the budget consultation was far too short;

The triangulation meetings with Cabinet members was queried as some members were not aware of these and had not been invited to any.  Councillor Spruce said he was aware of 3 members of Cabinet who did have triangulation meetings and it was felt this needed to be more visible to Chairmen and Vice-Chairmen.  Ms Bal Nahal explained to the committee that if triangulation meetings are required by an Overview & Scrutiny Chairman then it is an option and these meetings had taken place in the past but Chairmen did not always feel them necessary.

Members queried why the Council had spent £103,000 more on additional bin purchases in the joint waste service.  Mr Thomas explained that this was due to the joint waste service arrangements with Tamworth Borough Council – he explained that it was not unbudgeted – it was included in the revenue budget.  However, from an accounting perspective these were related to the purchase of assets and needed to be shown on the Council’s balance sheet and therefore the cost and funding had been transferred to the Capital Programme.

Members congratulated Mr Thomas and his team for the well presented Statement of Accounts 2017/18 and report and his clear explanation.

            RESOLVED: The Committee:

(1)  Noted the External Auditor’s Audit Findings Report at Agenda item no 6;

(2)  Approved the Letter of Representation at Appendix A; and

(3)  Approved the Council’s Statement of Accounts for 2017/18 at Appendix B.