Agenda item

Report of Chief Finance Officer (enclosed)

Members received a report of the Chief Finance Officer giving them sight of the Statement of Accounts (SOA) for 2012/13 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 the completion of the external inspection.

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 £1.277m for the year. Reserves earmarked for specific purposes totalled £4.300m at year end and usable capital reserves had slightly increased to £3.004m. In total, Usable Reserves, available for capital and revenue purposes, totalled £9.400m.

The balance sheet and cash flow statements showed the turnover of cash and final cash position as at 31 March 2013. 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. The Council had managed, in a very difficult environment, to maintain a healthy financial position. The Medium Term Financial Strategy envisaged no relaxation of the pressures, and forecasted budget shortfalls over the next three years.

The pension fund deficit had increased to £41.0m. This figure was however an estimate being the actuary’s assessment of the present value of the liabilities to be met by the fund over a long period less its current assets and anticipated future receipts.

The Council’s general balance at year end was £2.060m which was in line with the Authority’s Medium Term Financial Strategy that specifies they should be no lower than £2.0m.

Capital expenditure over the next three years was constrained by the resources available. Planned spend would be £7.750m. In addition the Council was working with the Health Authorities to fund the building of a health centre, by additional prudential borrowing, at an estimated cost of £6.650m, to be recovered from the Health authorities.

Creditors had been reduced by £2.600m which consisted of a reduction in the amount to the DCLG in respect of business rates (£1.300m) and council tax benefit (£0.400m) plus general creditors. The Collection Fund showed a modest surplus that was consistent with estimates and had been allowed for in the fixing of the 2013/14 Council Tax.

The Chief Executive thanked the Shared Financial Accountancy team for all their hard work in preparing the 2012/13 accounts.

The Chief Executive also advised the Committee that Gordon Whitehead (Principal Financial Accountant) was retiring and was attending his last Committee meeting.

The Chief Executive thanked Mr Whitehead for all his efforts over a number of years, adding that he had a specific skill in relation to the technical aspects of accountancy work and was a great person to work with.

The Chair and the Committee also thanked Mr Whitehead for his contribution and support to the Committee and extended best wishes for the future.

RESOLVED - That the Report be noted.