Agenda item

Report of the Chief Executive (enclosed)

Members received a report of the Chief Executive giving them sight of the Statement of Accounts (SOA) for 2011/12 that would be signed and authorised for issue by the Chief Financial Officer at the end of June. The report also gave advice on the processes leading up to their formal submission for the approval of Members following completion of the external inspection by the Audit Commission in September 2012.

This Committee was not required to approve the SOA by 30 June before inspection of the external auditors, but would give them final approval prior to 30 September as they have done previously.

The Movement in Reserves Statement showed a surplus of £1.2m for the year compared to a breakeven position assumed in the original budget approved for 2011/12, reasons for the surplus were contained within the report.

The balance sheet and cash flow statements sowed the turnover of cash and final cash position as at 31 March 2012. The Councils Treasury Management Strategy was the key document for the effective day to day management of cash resources and set out policies for the investment of surplus cash.

During the year the external borrowings had reduced from £8.872 to £7.822m and no new borrowings were made. The Council’s general balance at year end was £2.264m which was in line with the Authority’s Medium Term Financial Strategy that specifies they should be no lower than £2.0m. The Chief Executive explained that this amount was a judgement based upon a set of assumptions and took into account the Council’s previous good reputation for making efficiencies and savings.

One of the areas of difference between accounting requirements and council tax regulations concerned pensions. The difference resulting from this was held in the Pensions Reserve. During 2011/12 this deficit on reserves had grown by £6.7m. The accumulated pension fund deficit now stood at £34.0m and Members were advised that the statutory position was that this deficit would be made good through future changes in contributions.

Following recent changes, the SOA now included heritage assets that were held primarily for their contribution to culture and knowledge. The authority had three assets that fitted into this classification, Astley Hall, the Council’s Civic Regalia, and the furniture and art contents of Astley Hall.

There had been a significant reduction in debtors form £6.5m to £4.0m and Members were provided with a detailed analysis. The Collection Fund also showed a healthy surplus that was consistent with estimates and had been allowed for in the fixing of the 2012/13 Council Tax.

Members asked if comparative information could be provided at future meetings so that they could measure the authorities performance and success against other district councils.

The Committee was informed that notice had been received from the external auditor that the 13 August 2012 had been appointed as the date on or after which local government electors may exercise their rights to question the auditor about the accounts. A period of inspection would run for 20 working days before that  date and the Council would give 14 days notice of the commencement of this period.

RESOLVED

1.    That the Report be noted.

2.      That in the future comparative information from other district councils be included within the report.