Audit Committee

1st July 2019

 

Statement of Accounts 2018-2019

Recommendations / key decisions required:

1) To receive the Carmarthenshire County Council Statement of Accounts 2018/19

(2) To retrospectively approve the movements to and from the Earmarked Reserves.

In particular the transfers to :
The Corporate Retirement Fund

MEP Capital Funding

           The City Deal Reserve

           The Brexit Reserve

           The Tour of Britain Reserve

 

(3) To retrospectively approve the creation of the Brexit and Tour of Britain Reserves.

Reasons:

To comply with the Accounts and Audit (Wales) Regulations 2014.

 

Relevant scrutiny committee to be consulted: NA

Exec Board Decision Required                    NO

Council Decision Required                           NO

 

EXECUTIVE BOARD MEMBER PORTFOLIO HOLDER:-  Cllr. David Jenkins

Directorate: Corporate Services

 

Head of Service:

Randal Hemingway

 

Report Author:

Randal Hemingway

Designations:

 

 

Head of Financial Services

 

 

 

Tel No. 01267 224886

 

E Mail Addresses:

RHemingway@

carmarthenshire.gov.uk

 

 


EXECUTIVE SUMMARY

Audit Committee

1st July 2019

 

 

Statement of Account 2018-2019

 

 

The Statement of Accounts for 2018/19 brings together all the financial transactions of the Authority for the year, and also details the Authority's assets and liabilities as at the 31st March 2019.

The Authority has maintained the overall Council Fund net expenditure within budget during 2018/19, and you will note the following results are reported in the Movement in Reserves Statement:

Council Fund (Generally available for new expenditure). Transfer to balances £593k
Balances held by schools under local management schemes. Transfer from balances £1.908m.
Housing Revenue Account. Decrease in balance £5.800m.

Whilst a number of service areas across the authority experienced demand led pressures during the year, these have been offset by under-spends in other service areas; specifically on capital financing costs and a higher than estimated collection level on Council Tax.

The resultant outturn has meant that the Authority transferred £593k to its general reserves.

In the preparation of these accounts there have been movements to and from earmarked reserves. In particular transfers to:

The Corporate Retirement Fund:  £743k to support the Authority’s redundancy and early retirement policy, enabling the Authority to provide for the actuarial strain on the pension Fund which arises from any early retirement or redundancy.

 

MEP Capital Funding: £2.900m set aside in the 2018-2019 budget to meet the cost of prudential borrowing to finance the Modernising Education Provision programme. This will now be utilised in 2019-2020.

 

The City Deal Reserve: Transfer £2m to meet potential future expenditure/liabilities in respect of the development of Carmarthenshire County Council City deal projects.

 Brexit Reserve: £200k to deal with any potential costs associated with Brexit

Tour of Britain Reserve: £525k to support the costs of hosting the Men’s and Women’s Tour of Britain over the 3 coming years (as agreed by Executive Board).

Members are therefore asked to retrospectively approve these movements and approve the creation of the Brexit and Tour of Britain Reserves.

DETAILED REPORT ATTACHED ?

YES

 

IMPLICATIONS

 

 

I confirm that other than those implications which have been agreed with the appropriate Directors / Heads of Service and are referred to in detail below, there are no other implications associated with this report :

 

Signed:      Randal Hemingway                                                             Head of Financial Services                          

 

Policy, Crime & Disorder and Equalities

 

Legal

Finance

ICT

Risk Management Issues

Staffing Implications

Physical Assets 

NONE

YES

YES

NONE

NONE

NONE

NONE

1. Legal 

Compliance with the Accounts and Audit Regulations 2014

 

2. Finance: 

 

Overall the Authority’s Council Fund net expenditure for the year was below the original budget, resulting in a transfer of £593k to balances on the Council Fund and a transfer of £5.800m from the Housing Revenue Account balance.

 

At the balance sheet date the Council Fund General Balances stood at £10.376m, the Housing Revenue Account £14.314m and the balances held by schools under LMS -£393k.

The reserves created and included within the Statement of Accounts have been set up to meet future liabilities.


 

CONSULTATIONS

 

I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below

 

Signed:      Randal Hemingway                                                            Interim Head of Financial Services                                               

 

1.Scrutiny Committee – Not applicable

 

2.Local Member(s)  – Not applicable

 

3.Community / Town Council – Not applicable

 

4.Relevant Partners – Not applicable

 

5.Staff Side Representatives and other Organisations – Not applicable

 

 

Section 100D Local Government Act, 1972 – Access to Information

List of Background Papers used in the preparation of this report:

THESE ARE DETAILED BELOW    

Title of Document

File Ref No.

Locations that the papers are available for public inspection

Accounts and Audit (Wales) Regulations 2014

 

Corporate Services Department, County Hall, Carmarthen

Code of Practice on Local Authority Accounting  2018

 

Corporate Services Department, County Hall, Carmarthen