Agenda and minutes

No apologies for absence were received.

Members of the Committee are reminded of their responsibility to declare any personal interest in respect of matters contained in this agenda in accordance with the provisions of the Local Government Act 2000, the Council’s Constitution and the Members Code of Conduct.  If the personal interest is a prejudicial interest, then the individual Member should not participate in a discussion on the matter and must withdraw from the Council Chamber and not seek to influence a decision on the matter.

No declarations of interest were declared.

To confirm as a correct record the minutes of the meeting of the Accounts Committee held on 20 September 2005

RESOLVED – That the minutes of the meeting of the Accounts Committee held on 20 September 2005 be confirmed as a correct record and signed by the Chair.

Report of the Director of Finance (enclosed).

The Committee received the draft Annual Accounts for 2005/06, which had been prepared in accordance with the Code of Practice on Local Government Accounting to show the overall financial position of the Council.

The Accounts comprised:

Statement of Internal Control

This set out the financial control systems in place in the Authority, The Audit Committee approved the Statement of Internal Control and the Audit Commission representatives confirmed that they were satisfied with the robust procedures used to compile the statement.

The Director of Finance reported that the Council were in the process of mitigating identified issues to strengthen internal control.

Consolidated Revenue account

This brings together expenditure and income for all the Authority’s functions. Overall the Council managed to deliver the General Budget it had set itself at the beginning of the financial year. Initial forecasts of overspend were dealt with by the Council and as a result general working balances were anticipated and to be maintained within the range set in the Council’s Financial Strategy.

Clarification was sought from the Members as to the amount of money set aside for Job Evaluation. The Director of Finance confirmed that this amount was only intended for completion of the process and had not taken account of any subsequent financial implications of the results of the evaluation exercise.

Balance Sheet

This set out the Authority’s assets and liabilities at the end of the financial year. The Director of Finance drew Members attention to an increase in the value of the authority’s non-operational assets as a result of asset revaluations.

Liquidity Ratios

The report set out a current and quick ratio of working capital to demonstrate the organisations liquidity or access to cash.

Pension Liability

The Authority’s most significant long-term liability on the balance sheet is the liability related to the defined benefit pension scheme for officers and employees. While overall liability had reduced, mainly as a result of performance on the investment markets, there are plans to increase employer’s contributions to 15.8% over the next triennial period.

Members queried the current position of the Pension Fund as to whether the situation was better or worse than last year, this was answered within the content of the report and was expanded upon by the Director of Finance.

A question was raised to ascertain if the Lancashire Pension Fund were still investing on the Stock Exchange. The Director of Finance reported that they had made changes to adapt to the situation and had moved back to this type of investment, in recent times to take advantage of the increase in returns on equities.

Deferred Liabilities

These balances related to payments made to the Council by developers under Section 106 agreements for the authority to provide additional or improved services.

Housing Revenue Account

The Housing Revenue Account (HRA) showed the income and expenditure involved in the management and maintenance of the Authority’s housing stock.

The Director of Finance reported that the surplus of £150,000 achieved on the Account had been greater than anticipated. The report  ...  view the full minutes text for item 4.