Agenda item

Joint Report of the Treasurer to the Joint Committee and Corporate Director: Resources / Corporate Director of Neighbourhood Services.

The Head of Finance - Financial Services referred Members to the report within the agenda papers setting out the Revenue Outturn, Small Bodies Return and Statement of Account for the Year ended 31 March 2013 (for copy see file of minutes).

The Joint Committee were asked to note that the Annual Return and Statement of Accounts had been prepared in accordance with CIPFA requirements and the Accounting Code of Practice.  Members learned that there had been a £5,813 improvement in the previous forecast net income for the year, in comparison to the provisional outturn, and the total net income was £458,469.  The Joint Committee were informed of the Reserves Policy that had been agreed at the last meeting in April that formalised arrangements whereby surplus income was transferred into the Major Capital Works Reserves.  The Joint Committee noted the variances as set out within the report and Members were asked to take comfort in the strong financial position for the future.

Councillor P Conway asked why the distribution of surplus to the two constituent Authorities was identical for 2011/12 and 2012/13 and whether it was a fixed amount based upon an 80:20 ratio, Durham County Council to Spennymoor Town Council.  The Head of Finance - Financial Services noted that both Durham County Council and Spennymoor Town Council had income from the Crematorium set out within their budgets and that the levels were that set pre-Local Government Reorganisation.  It was added that since that time, while fees had increased, additional generated income had been transferred to reserves, also noting the cremator replacement works that had been carried out.  The Head of Finance - Financial Services added that once the Reserves were built up sufficiently to provide for any future works, they would be an opportunity for the Joint Committee to look at increasing the distribution to the constituent Authorities.  Councillor P Conway asked whether the reserves would be drawn upon to ensure the distribution to the constituent Authorities would be maintained at those set levels should there be underperformance in relation to income. The Head of Finance - Financial Services noted that the traditional strong performance of the Crematorium and prudent budget setting process meant that was unlikely to occur, however, should it appear that income was underperforming, Officers would look to bring a report to the Joint Committee to its meeting in January, liaising with the constituent Authorities as appropriate.  

Resolved:

(i)         That the Members of the Joint Committee note the April 2012 to March 2013 Income and Expenditure within the Revenue Financial Monitoring Report and subsequent year balance of reserves.

(ii)        That the Members of the Joint Committee approve the Annual Return and Statement of Accounts for the year ended 31 March 2013.

(iii)       That the Chair and Treasurer sign the Annual Return and Statement of             Accounts.