Agenda item

The Committee considered a report from the Corporate Director of 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).

Mr C Robinson referred to the technical change in relation to the decrease in the estimated future pension liability and asked if there was less liability for future claims. The Corporate Director of Resources advised that liabilities had reduced slightly due to the reduction in average life expectancy and that there had been a significant increase in the overall value of assets, however the value fluctuates and suggested that the net assets, with and without the pension fund figures, be shown separately in future. It was noted that the Council’s funding requirement would be less because the value of assets had increased – largely on the back of the revised investment strategy agreed by the Pensions Committee.

Resolved:

(i)     That the Council should be considered as a going concern;

(ii)  That the Statement of Accounts be prepared on that basis.