To receive a report from the Director of Finance, Assets and Resources presenting the draft annual report and accounts for 2017/18 to Members.
The Committee had before it a report * from the Director of Finance, Assets and Resources presenting the draft annual report and accounts.
The following was highlighted within the report:
· The external auditors had commenced their audit on the accounts today.
· The draft accounts needed to be signed by the Section 151 officer and could then be available for inspection by the public as from 31st May 2018.
· Financial Services were confident that they could meet the deadline of 31st July for signing off and finalising the accounts, in fact a special meeting for 16th July to do this had been arranged.
· The Group Manager for Financial Services took the Committee through each of the Primary Statements which included:
o Movement in Reserves Statements – the total of the Council’s useable reserves had increased as well as Earmarked Reserves and Capital Receipts.
o Comprehensive Income and Expenditure Statement – HRA net expenditure had reduced. The Pension Fund assumptions had reduced by £21m but this had not had a significant effect on the deficit.
o The Balance Sheet – long term borrowing had reduced and there were reduced pension fund liabilities.
o Cash Flow Statement – cash and cash equivalents at the end of the financial were showing as having increased.
· During the compilation of the 2017/18 Statement of Account, the Council discovered that the advice previously received from External Auditors in relation to the classification of the CCLA Fund investment as ‘Cash and Cash Equivalents’ was not consistent with the treatment by other authorities and was contrary to the Council’s own accounting policies. Following discussions with the External Auditors it was felt that the correct classification for the CCLA Fund was as a long term investment rather than ‘Cash and Cash Equivalents’ as previously reported.
· The HRA continued to perform well. This had been due in part to the significant upward valuation of properties in the previous financial year.
· Council Tax was in line with last year’s position.
· Collection of Business rates was going well and the Council would be a pilot for the 100% retention of these in the current year.
· The Committee were taken through the Group Accounts for the 3 Rivers Development Ltd which was a wholly owned subsidiary of the Council.
The Committee thanked the Group Manager for Financial Services for her thorough and understandable explanation of the accounts.
RESOLVED that the draft annual report and accounts be approved.
(Proposed by the Chairman)
Note: * Report previously circulated; copy attached to the signed minutes.