Agenda item

The Committee considered a report of the Interim Corporate Director, Resources regarding whether the Council should be considered as a ‘going concern’ organisation and whether the Council’s Annual Accounts should be based on that basis (for copy see file of Minutes).

Councillor Robinson referred to Paragraph 10 of the report which showed the Net Assets of the Council had reduced from £1.2bn in 2009 to £466m in 2015 and asked whether this was as a result of austerity.  The Finance Manager, Revenue/Capital replied that up to the end of March 2016 Net Assets had increased to £568m.  The Transfer of Housing Stock and fluctuations in pension fund liability were significant transactions and were the reason for the reduction in Net Assets as shown.  Councillor Carr informed the Committee that the reassessment of the pension fund which was due this year could also have an impact.

Mr Beavis congratulated the Council on identifying savings from the outset, which had been achieved through efficiencies without impacting on frontline services.  He asked, however, whether the impact of further austerity had been identified.

Councillor Bell replied that this was an ongoing situation which was closely and regularly monitored within the organisation.

Mr Beavis asked what the impact of the recent EU Referendum result might be.  The Interim Corporate Director of Resources replied that he Council had a three year Medium Term Financial Plan which provided annual forecasts and was regularly monitored.  The Plan identified cost pressures and impacts of government funding reductions and had accurately forecasted grant reductions.  Detailed proposals for the forthcoming year were considered by Cabinet as well as indicative proposals for future years, and consultation on detailed proposals was carried out.  Work on proposals for 2017/18 was currently being undertaken, but when the MTFP was prepared in February the result of the Referendum was not anticipated.  More clarity around the impacts of the Referendum result should be known around September when a new government was in place, but it was forecast that the financial situation for local government would not improve with more austerity expected.

Resolved:

That the Council should be considered as a going concern and that the Statement of Accounts should be prepared on that basis.