Issue - meetings

Report of the Strategic Director of Finance

Statement of Accounts 2015/16

Sue Risdall, Finance Team Leader Technical Accounting, Tom Straw, Senior Accountant Capital Programmes, and Theresa Channell,Head of Corporate Finance and Deputy Section 151 Officer, presented the Statement of Accounts and highlighted the following points:

(a)  there have been no major changes in the Statement of Accounts other than the report format which now provides a narrative following a change in the Code of Practice on Local Authority Accounting;

(b)  the Committee is asked to review and scrutinise the Statement to ensure it provides a fair and complete view of the Accounts;

(c)  the key issues identified this year include:

(i)  The impact of reduced Government funding;

(ii)  The short-term Treasury Management Strategy  in light of the EU referendum result;

(iii)  Pension Deficit  of £623m at 31 March 2016 (this is reviewed every 3 years to set contributions to ensure that the deficit can be cleared in 18 years’ time;

(d)  points highlighted within the Treasury management strategy included:

(i)  attitude to risk;

(ii)  reduction in long-term investment with more focus on short-term investment of a maximum of three months;

(iii)  significant increase in short-term investments to cushion the effects of the EU referendum.

Councillor’s questions were responded to as follows;

(e)  with the growing trend for some small businesses to attempt to avoid business rates or appeal them, consideration is given to local intelligence and monitoring of premises, including cafes which extend seating to use outdoor space. Monitoring can be difficult but popular software packages which identify business sites on roadmaps have proved invaluable to the Counter Fraud Team. The City Council cannot charge business rates on listed buildings. It is the responsibility of owners to inform the City Council of any changes such as when larger premises are been divided into smaller units.  However, changes in legislation and regulation will require a new approach;

(f)  Council Tax appeals are very different as appeals are usually lodged due to a change in circumstances. A specific team within Finance, liaise with the Counter Fraud Team and work to ensure the information provided in appeal is correct;

(g)  with regard to the level of general reserves set (£11 million), all reserves are set following comprehensive risk assessments and a range of consideration given to the level of cuts and savings required, medium-term financial plan, reductions central government grants, departmental issues. Currently set at 2-4% of the net budget received, this will be reduced on a sliding scale. The robustness of the budget and assessment of resources, signed off by the Strategic Director of Finance, is examined and the level of resources required considered, including watching the levels set by other local authorities. Is not advisable to use reserves for ongoing revenue expenditure. Finance team currently plan three or four years ahead on the Medium Term Financial Plan. The City Council needs to ensure that resources are available to enable transformation, sometimes by supporting short term funding gaps as grants are reduced/withdrawn, to enable changes to services to  ...  view the full minutes text for item 31