Agenda item

The Director of Finance submits a report to provide an opportunity for comment on the Council’s Draft Statement of Accounts 2017/18.

The committee are asked to consider the Draft Statement of Accounts 2017/18 and recommend any changes it sees fit.

The Director of Finance submitted a report of the Draft Statutory Statement of Accounts 2017/18 to enable the committee to comment and input to the final document that would be brought to July meeting for approval.

It was noted that the statutory deadline had been met with the draft statement of accounts published on 25 May 2018.

Members’ attention was drawn to the general fund balance noting the £15m, this was the same level detailed in budget reports. It was noted overall usable reserves had increased in year. The main reason for the increase was a result of HRA capital receipts received from HRA right to buy’s.  Earmarked Reserves relating to the General Fund had reduced in the year as forecast.

Members were advised of a minor error in the HRA figure with netted off income and full details of the changes would be brought to July committee.

Members asked if past issues regarding Related Party Transactions disclosure had been resolved. Officer’s explained that there continued to be an issue and non-completion was mentioned in the audit report as it was not good practice. A letter had been sent to a member that had persistently failed to comply and a response was awaited, although formal sanctions for failing to comply were very limited.

The Chair commented that it was important to show good governance and to follow procedures.

Members noted that the pension fund deficit had reduced by £21m and there were no significant concerns with the total deficit figure or the year on year change which was an actuarial figure taken at a point in time. The estimated deficit was taken into account in assessing future years’ contributions.

Members queried the ongoing budget pressures and were informed that a balanced budget had been set for 2018/19 with a relatively manageable shortfall forecast 2019/20 growing into 2020/21 and the higher than expected reserves at the end of 2017/18 had reduced the gap in 2019/20. The forecast for 2020/21 still showed a significant gap and there were uncertainties over local government funding in this year.

Members asked what steps were being taken to generate revenue for the council and the Director of Finance advised that a piece of work was being done to explore entrepreneurial councils as well as continuing to collect debt owed.

Members noted that in relation to debt recovery the write off amount equated to less than 1% of what the council had collected. The Council’s Constitution allowed the Director of Finance to write off up to £2k, amounts above that had to be discussed with the City Barrister who had authority to write off – sometimes it was uneconomical to pursue.

Members asked for details of the number of properties in the city where the full amount of council tax was paid compared to the number paying a nil/reduced amount and what that would equate to if all paid the full amount.

Members satisfied with the report set out and the Chair thanked officers for their work.

RESOLVED:

1.     That the contents of the Draft Statement of Account 2017/18 be noted,

2.     That details of the number of properties in the city paying full council tax and nil/reduced council tax be provided to Members of the committee.