Agenda item

The Committee received a report setting out the final position on the General Fund and the Collection Fund revenue accounts, for the 2017-18 financial year. 

The Committee was informed that the overall position on the General Fund had shown that net expenditure had been £1.14 million lower than originally budgeted, of which £0.2 million related to net expenditure on services (1.6% of net revenue expenditure), reflecting lower than anticipated expenditure totalling £0.9 million and £0.7 million of additional income.

Net income from interest receipts had been £796,000 more than estimated and the minimum revenue provision (MRP) for debt repayment was £400,000 lower than estimated.

In accordance with the authority delegated to the Chief Finance Officer, in consultation with the Leader of the Council and the Lead Councillor for Finance and Asset Management, the underspent balance had been used to make the following contributions to reserves:

                                                                                                          £

·        Transfer to the Capital Programme reserve                   1,122,000    

·        Contribution to the Mayor’s Distress Fund                          20,000

     1,142,000

Details of the closing balance on all the Council reserves (excluding the transfers referred to above) were set out in the report, together with the ongoing policy for each.

The Committee noted that 2017-18 had been the third year of the Business Rates Retention Scheme (BRRS) and it had continued to cause volatility in the Council’s accounts.  The Business Rates balance on the Collection Fund was particularly susceptible to movements in the number and value of appeals that businesses had made against their rateable values.  The Council had no control over these appeals, and had limited information from the Valuation Office to help assess the potential impact. 

The Committee was advised that there was an overall deficit on the Collection Fund of £12.8 million, principally because of the impact of business rate appeals, as detailed in the report.

The outturn position had been included in the Statement of Accounts signed by the Chief Finance Officer on 31 May 2018, which would be subsequently audited by the Council’s external auditor, Grant Thornton UK LLP.  The Committee noted the draft (unaudited) Statement of Accounts, which had been posted on the Council’s website, and that it would review the audited accounts at its next meeting on 26 July 2018.

Having noted that this matter would be considered by the Executive on 19 June 2018, the Committee

RESOLVED:

(1)   That the Draft Statement of Accounts for 2017-18, as set out on the Council’s website, be noted.

(2)   That the recommendation to note the Council’s final outturn position on the General Fund for 2017-18 to endorse the decisions, taken under delegated authority, which were:

(a)   to transfer £1,122,000 to the capital programme reserve, and

(b)   to contribute £20,000 to the Mayor’s Distress Fund.

be commended to the Executive.

Reasons:

·       To comply with The Accounts and Audit Regulations 2015, which require the approval of the statutory Statement of Accounts for 2017-18 by 31 July 2018.

·        To note the final outturn position and delegated decisions taken by the Chief Finance Officer, which have been, included within the statutory accounts the Chief Finance Officer signed at the end of May.

·        To facilitate the on-going financial management of the Council.