Issue - meetings

(Report of the Acting Director of Finance)  To set out the Council’s financial statements for approval.

We received the statement of accounts report for 2005/06, setting out the Council’s financial statements for approval.  We noted that the statements had been prepared with the aim of giving clear and concise information about the financial affairs of the Authority to Members of the Councils, the public and other stakeholders.

We received apologies from officers of the late nature of the submission of the revised report, but noted that the bringing forward of Audit Commission deadlines, together with a desire to improve the quality of working papers, created pressures of time which had not previously existed.  We noted that a more concise summary statement would be produced prior to the submission to the Audit Commission.

Members enquired about the £3.9million Schools overspend referred to on page 3, and the £2.6 million HRA deficit referred to on page 6, requesting information on the cause of these overspends, and what measures were in place to control spending in future years.  Officers responded that the School deficit were planned, and covered out of reserves, being intended to cover the phasing out of a temporary one-off grant without a resulting reduction in services.  In terms of the HRA deficit, we were informed that this expenditure was a planned use of reserves, with a £5million target level to be achieved over the next five years.   Members requested information as to why the value of the housing stock had dropped by £3 million.  Officers responded that the  Housing stock was valued at the current market rate and then had a Social housing % applied to the value to arrive at the final balance sheet valuation. We noted that the percentage was set by the ODPM and changde from 48% in 04/05 to 37% in 05/06, resulting in the decreased valuation of the assets.

Members also asked about figures relating to the Tech Refresh project, enquiring as to what measures were in place to implement the recommendations of the Audit Commission investigation into it, and to ensure that sound financial management of the project was then taking place.  Officers assured Members that the statement of internal control (p9-12 of the report) explained the control procedures in place, and that the action plan coming out of the Audit Commission report was currently being put into place.  We noted that this included a higher level of independence and a more detailed project framework.  We noted that the bringing back of the management of Council IT facilities in house was in itself a major project and was being overseen by a Stream Board chaired by the Head of Legal Services.

Members requested clarification of meaning of the line ‘contribution of housing capital receipts to government pool’ in the consolidated revenue account table of page 17.  Officers informed Members that 75% of Council House sales were set over to pay of debt and was paid over to the ODPM, when previously the Council had been allowed to retain this revenue.

Members requested Officers to set out the process that the  ...  view the full minutes text for item 7