Agenda item

Report of the Head of Finance (Section 151 officer).

The Head of Finance (Section 151 Officer) submitted a report on the Statement of Accounts following the completion of the audit and the final capital and revenue position for the financial year 2017/18.

The Head of Finance introduced the report and explained the format of the Statement of Accounts. She referred, in particular, to the introductory, contextual and background information in the narrative report and to the various detailed financial statements set out in Appendices 1 to 4b. She reminded Members that they had received training on the format and content of these documents when the unaudited accounts had been submitted to the Audit Committee on 19 June.

As in previous years, in order to assist with the interpretation of the report and to demonstrate robust Member scrutiny prior to approval, the Head of Finance submitted a set of Questions and Answers (attached as an annex to these minutes), which highlighted a number of issues arising from the accounts. The Head of Finance and the Deputy Head of Finance drew attention in particular to the following questions and answers:

-       Q1(non-financial information

-       Q2 (revenue variances)

-       Q3 (housing benefit variances)

-       Q5 (subsidy position at Marine hall and Thornton Little Theatre)

-       Q9 (Hillhouse Enterprise Zone)

-       Q10 (Audit, Risk and Insurance activity)

-       Q11 (council tax summons fee income)

-       Q15 (employee costs)

-       Q21 (additional interest received)

-       Q22 (revenue slippage)

-       Q23 (three highest areas of revenue slippage)

-       Q26 (main items of capital expenditure)

-       Q27 (spending on cultural and leisure facilities)

-       Q31 (comprehensive income and expenditure statement)

-       Q32 (surplus on the provision of services)

-       Q33 (property, plant and equipment)

-       Q36 (earmarked reserves – vehicle replacement and street cleansing maintenance)

-       Q38 (rental income from investment properties)

-       Q39 (trading operations)

-       Q42 (collection fund)

-       Q43 (heritage assets)

-       Q44 (recommendation from previous audit)

Members of the Committee raised questions and made comments, as the Statement of Accounts was considered, supported by the questions and answers document, including references to:

-       the level of subsidy for the Marine Hall;

-       housing benefit overpayments;

-       the viability of the Spa on the Breck facility at the Poulton Leisure Centre;

-       options to be submitted by the YMCA for the ongoing provision of services under the leisure management contract with the aim of driving down the subsidy;

-       income from investment properties;

-       the effectiveness of advertising and marketing of the council’s trading operations;

-       measurement of the financial “performance” of the council’s cemetery services, including the possible need for a clearer breakdown in future years of both direct fixed costs and variable costs dependent on the number of burials and levels of other activities.

The Head of Finance thanked the Financial Services Team and officers across the council for their enthusiasm, hard work and commitment which had enabled a set of full, accurate and fair accounts to be produced within the new tighter statutory deadlines.

Agreed:

1.    That the Accounting Policies selected and applied by the Council (as required by International Accounting Standard No. 8: Accounting Policies, Changing in accounting Estimates and Errors), set out in Note 2 of the Statement of Accounts, be approved.

2.    That the Council’s Audited Statement of Accounts 2017/18 be approved.

3.    That the major variations in expenditure and income, the proposed slippage and the resulting impact on the level of the Council’s reserves and balances at 31 March 20128 be noted.