Agenda item

Members gave consideration to a report which presented the 2015/16 Statement of Accounts for scrutiny and adoption. 

The Section 151 Officer, first thanked the Financial Services Manager and her team, for the work they had undertaken in completing the Statement of Accounts, in accordance with the statutory requirements.  The overall financial position was summarised during which Members noted the following: -

·      the revenue out-turn reflected a gross surplus of £1.255m after deductions for approved carry forwards and unapplied grants an amount of £0.798m had been transferred to the General Fund Balance;

·       the Capital Investment totalled £0.965m;

·      In respect of Useable Reserves, the Authority remained in a healthy position with balances as follows: -

·         The General Fund working balance totalled £3.715m (£4.160m in        14/15)

·         The General Fund Earmarked reserves totalled £13.817m (£10,658m             in 2014/15)

·         Capital receipts totalled £2.984 (£2,407m in 2014/15)

·         Capital grants unapplied for totalled £0.476m (£4.486m in 2014/15)

The amendments to the Statement of Accounts which had been made and which were summarised at Section 2 of the report were highlighted to the Committee.

The contents of the explanatory foreward were summarised to Members.

Members asked a number of technical and pertinent questions particularly concerning the pension liability and sought further details and clarity as to whether this trend would continue.  Officers gave assurance that the figure referred to was not the amount the authority had to pay and this was an accounting presentation issue and used as a comparator.  Assurance was given that arrangements were in place to manage any deficit in the fund over the next 20 years.  It was stressed that the pension liability was developed on a national basis.  It had been agreed that the position would be reviewed every 3 years against a set of indicators, and level was set dependent on the outcome of this review.  It was stressed that West Lindsey District Council was broadly in the same position as other local authorities in respect of this matter.  However West Lindsey did make a lump sum contribution against its deficit, this had now become recommended practice for local authorities, and the treatment applied to the pensions deficit was the same across the country.

The Committee welcomed the inclusion of the Commercial Performance Section and commented that it could now be seen that a number of previously agreed projects were now coming to fruition.

Members asked a number of further technical and pertinent questions in respect of pending changes to NNDR retention, and the impact this could have. It was noted that a workshop was being held the following week, to which all Members had been invited, to inform them further of the impact.  A consultation response had been prepared by the Authority, and it was considered of vital importance that a re-evaluation be undertaken, if the North and Midlands were not to suffer in the future.

Referring to page 19, Members requested details of the number of fixed term contracts currently in existence across the Council.  The Director of Resources undertook to provide this figure outside of the meeting.

Officers undertook to check the absenteeism figure reported on page 10 of the report.  However Officers advised of the work being undertaken by the Joint Staff Consultative Committee. Absence levels were at the lowest level since data collection had commenced (2006) and this should be applauded.  Members questioned how the employee satisfaction figure had been obtained, and whilst surveys had been undertaken in previous years, there was currently a staff engagement group in operation, which aimed to address issues identified through the survey.

Members indicated that the Council Tax Collection rate should be applauded.

It was confirmed that the comparators on Page 75 of the report were not full years and the operational debtors increase on page 65, was simply a moment in time position and not cause for concern.

 On that basis it was : -

RESOLVED that:

(a)           having reviewed the Statement of Accounts, attached to report       GA.22 16/17 it be confirmed that there are no concerns arising         from the Financial Statements that need to be brought to the      attention of the Council;

(b)  the Statement of Accounts for 2015/16 be approved;

(c)  the Section 151 Officer and the Chair of the Governance and      Audit Committee be permitted to certify the letter of       representation to the Council’s Auditor, KPMG, for completion of           the audit.