Agenda item

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

The Finance Manager for Resources and Transformation and Partnerships explained that the current position showed healthy balance sheets and reserves.  He added that future plans were included in the medium term financial plan.

Mr Robinson referred to the use of reserves and as £1bn had been used in the last 8 years he asked how sustainable this was looking forward.  He was concerned at the narrative around this issue.  The Finance Manager explained that the balance sheet showed the bottom line position.  Last year the housing stock write off was a big change and the pension fund liability was a negative reserve.  He confirmed that the net position going forward should not change much.  He added that the technical accounting reserves reflected bigger movements in the accounts.  Mr Robinson said that he did not get that information from the narrative.  The Corporate Director of Resources said that capital savings through the MTFP do have a balanced account going forward and that it was contained in the narrative more widely.

Mr Robinson further commented that the strong position going forward was summarised in the table and showed a reduction in the net value, which was not pure spend but accounting valuation.  The Corporate Director of Resources said that this would be picked up in the statements going forward.

Councillor Carr was concerned that the risk of schools budgets was not referred to and he was informed that this would be included in a separate report to Cabinet as part of a wider schools review.

Resolved:

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