To receive a presentation on the unaudited Statement of Accounts for 2017/18.

The Committee received a presentation on the unaudited Statement of Accounts for 2017/18.  The presentation, entitled ‘Unaudited Statement of Accounts 2017/18 – Presentation to Members 30/05/2018’ was introduced by the Director of Resources, the Head of Corporate Finance and the Financial Controller.

Paper copies of the presentation were made available at the meeting.  A copy of the presentation pack is attached at Appendix A to these minutes.

In addition to the above, paper copies of the document entitled ‘Extracts from Unaudited Statement of Accounts for the Year 2017/18 – Presentation to Members 30/05/2018 – Core Statements, EFA and Note 31’ were also circulated.  A copy of the document is attached at Appendix B to these minutes.

Points and comments included:

·         The Director of Resources reminded Members that 2018 was the first year in which the Council was required, as were other local authorities, to complete its draft Statement of Accounts by 31 May.  He explained that he would sign off the draft and it would be given to Ernst & Young LLP, the Council’s external auditors, for audit.  The fully audited Statement of Accounts would then be submitted to the Audit Committee at its meeting on 30 July 2018 for approval.  The Director added that a public inspection period would begin on 31 May 2018 and last for 30 days.

·         A Member queried the reference in Note 31 – Officers’ Remuneration to the apparent level of compensation paid to the former Director of Improvement and Corporate Services for her loss of office given her salary and the time she was employed by the Council.  In response the Director of Resources explained that the payment, which took place in 2016/17, was confidential so he had no details available.  However, he believed that it included a sum in lieu of notice and any actuarial strain, if there was any, and possibly accrued annual leave.  Further, it might not have been received by the former officer but, instead, represented a cost to the Council e.g. a payment to the Pension Fund.  The Member queried how he could access further information on this matter.  The Director responded that he was unable to provide additional information as the payments were personal and had taken place during the 2016/17 financial year.  Following comment by the Member, in which he indicated that his role as such on the Council justified access to the information he had requested, the Director offered no further opinion at that point.

·         The Vice-Chairman commented that when the capital programme slipped the inflation rate had to be greater than the interest rate.  The Director of Resources responded that the budget was not inflated and savings were sought to compensate.  He added that, overall, slippage evened out over time.  A Member commented that capital receipts were also delayed so more money was received due to the inflation rate increasing land values.  The Member then sought information on assets held by the Council for sale.  In reply the Director acknowledged that capital receipts had been inflated because of land values.  He was unable to provide individual figures.  With regard to assets held for sale the Financial Controller explained that these largely related to village farms and they had been revalued in 2018.

·         A Member referred to the Arlesey Cross development and the Council’s ownership of farm land.  The Director of Resources stated that the strategy of using farm land was due to be considered by the Corporate Resources Overview and Scrutiny Committee in the near future and so would be in the public domain.  The figure of £8m in the budget formed part of the capital slippage and would be used to replenish the Council’s assets.

·         The Chairman sought clarification on how assets held for sale were valued and whether a change in use would have an impact.  The Director of Resources explained that an up to date valuation of land would include an allowance for planning consent where this had been received.  Its current use was listed in the asset register then revalued if changes occurred.

In conclusion the Chairman thanked everyone for their efforts in preparing the unaudited Statement of Accounts.

NOTED

the presentation on Central Bedfordshire Council’s Unaudited Statement of Accounts for 2017/18.