Agenda item

5.1

The Head of Strategic Finance submitted a report communicating to Members any relevant matters arising from the external audit of the 2017/18 Statement of Accounts.

5.2

Ruth Matheson, Finance Manager, reported that the Council had met the statutory deadline for submitting its draft statement of accounts, which had been brought forward from last year. Training had been provided for Members in considering the Statement of Accounts. The accounts had been audited and minor presentational changes had been made as a result. She was therefore requesting that the Chair of the Committee and Eugene Walker (as the Section 151 Officer) sign off the accounts. If the accounts were signed off they would be published on the Council’s website by 31 July 2018.

5.3

Responding to a question from a Member as to what the Council was doing in respect of its loss making trading arms, Dave Phillips commented that there were two areas where the Council was making deficits, namely markets and transport. The Council was keen that the City had a thriving market. Although the footfall on The Moor Market had been initially disappointing, this was increasing and the aim was to get this in balance. Detailed questions on transport trading services were a matter on which service management would be better placed to respond.

5.4

In respect of a question from a Member regarding pooled budgets with the NHS, Eugene Walker stated that budgets were aligned where possible with the NHS. The only pooled budgets were in respect of Community Equipment and Mental Health and positive discussions had been held with the Health and Social Care Trust in respect of Mental Health. The issue with the health system in the City was that it was focussed on the Teaching Hospital’s Trust. Until a three-way risk share was achieved, the City Council would continue to be towards the bottom of the pile in respect of achieving savings.

5.5

Following a question from a Member, Dave Phillips reported that, although the Council had not done a recent analysis, previous research had shown that the Council was largely comparable with other authorities in respect of salaries of £50k or more. The Council had significantly reduced its Directors posts over the past 8 years and was not historically a high payer. However, an analysis could be undertaken to assess if this was still the case.

5.6

A Member of the Committee then asked if the Council was confident of returning to un-earmarked General Fund (GF) reserves that were 3% of the Council’s net revenue budget which was the assessed minimum requirement. Dave Phillips commented that there had been a £2m overspend in social care in 2017/18 and the Council had used the GF reserve to meet this overspend as it had done in 2016/17, when New Homes Bonus was used in 2016/17 to replenish the GF reserve. The Council was committed to replenishing its GF reserve to the level of 3% as required during 2018/19, and a review of the most suitable source of funds to do this will be undertaken.

5.7

Responding to a question from a Member, Eugene Walker commented that future funding from Government was a major uncertainty. However, the Council was confident that there would be a £15.5m reduction in Revenue Support Grant in 2018/19. More generally there would be a Fair Funding Review undertaken nationally in 2020 to look at the allocation process.

5.8

In terms of governance issues, by bringing IT controls in-house or commissioning them, it was hoped that they would be strengthened.  Issues relating to bank reconcilliation were caused by short-term resourcing pressures on implementing the new general ledger system, and were not longer-term governance issues, as reconciliations were now back up to date.

5.9

Responding to a question from a Member regarding commitments to external leases, Ruth Matheson reported that she would collate that information and circulate it to Members.

5.10

RESOLVED: That the Committee:-

(a)

accepts the report to those charged with Governance (ISA 260) 2017/18;

(b)

approves the Statement of Accounts for 2017/18 and authorises the Chair of the Audit and Standards Committee to conclude the audit by signing the Letter of Management Representations and the Statement of Accounts for 2017/18; and

(c)

thanks Officers for all their hard work for completing the Statement of Accounts and submitting the draft Statement of Accounts within the required timescale.