Agenda item

The Executive Member for Finance submitted a report setting out the Council’s draft statement of accounts for 2012/13.  The Head of Finance and Performance explained that presenting the accounts at this stage provided Members and the public with an early opportunity of viewing and questioning the accounts.  It was noted that the accounts would be submitted to Audit Committee at its meeting on 18 September 2013 for approval. 

The Head of Finance and Performance explained that the accounts were prescriptive in style and content, but that there was an opportunity to give context to them within the explanatory forward and headline information.  

The Head of Finance and Performance provided Members with an overview of the main sections of the Council’s accounts and summarised where main changes had occurred on the balance sheet. 

In response to a query from Councillor M Pope regarding the Council’s pension liability and volatility issues, the Chairman provided a summary of how the pension calculations were applied to the Council’s accounts.

The Chairman referred to two long term loans which had been taken out many years ago at rates of interest around 8%, adding that to repay them early, the Council would have to pay a prohibitive premium.

The Chairman referred to the earlier debate regarding making the accounts as user friendly as possible and suggested that the Statement of Accounts include an introductory paragraph summarising the Council’s financial situation over the last two or three years.  He added that it might be helpful if the pie chart setting out Government Grants of £49.4Million was broken down to differentiate between housing related grants and other grants.  This was supported.

In response to a query from Councillor J Wyllie regarding bank statements being provided to the Portfolio Holder for Finance, the Head of Finance and Performance explained that this would not normally be the case.  He explained that the “cash and cash equivalents” in the balance sheet, included short term investments that met this definition of cash.  The Chairman added that he was a Member of the Investment Panel which met regularly to be updated on the Council’s investments.

In response to a query from Councillor M Pope, the Head of Finance and Performance agreed to review narrative denoting an item as a (surplus)/  deficit when a single figure was shown. 

The Committee received the report and agreed that in an effort to make the Statement of Accounts more user friendly, they should include an introductory paragraph summarising the Council’s financial situation over the last 2 or three years and that the pie chart setting out Government Grants of £49.4Million should be broken down to differentiate between Housing related and other grants.

RESOLVED – that (A) the completion and authorisation for issue, of the Council’s 2012/13 accounts, in line with statutory processes, be noted; and

(B)   the Statement of Accounts include an introductory paragraph summarising the Council’s financial situation over the last two or three years and that the pie chart setting out Government Grants of £49.4Million be broken down to differentiate between housing related and other grants.