Agenda item

The Committee considered the Authority's Statement of Accounts for 2017/18, produced in accordance with the Accounts and Audit (Wales) Regulations 2014 which brought together all the financial transactions of the Authority for the year and also detailed the Authority's assets and liabilities as at 31^st March, 2018.

It was reported that the Authority had maintained the overall Council Fund net expenditure within budget during 2017/18 and the following results were reported  within the Movement in Reserves Statement:-

-   Council Fund (generally available for new expenditure) – transfer to balance      £480k;

-   Balances held by schools under local management schemes – transfer  

    from balances £195k;

-   Housing Revenue Account – increase in balance £6,103m including £3.8m to support the Authority’s Affordable Homes Strategy

It was noted that whilst a number of service areas across the Authority had experienced demand led pressures during the year, those had been offset by under-spends in other service areas, specifically on capital financing costs and a higher than anticipated collection level on Council Tax.

The resultant outturn meant the Authority had transferred £480k to its general reserves, against a budgeted transfer of £200k from the reserves.

The Committee's attention and retrospective approval was sought in relation to the following movements to and from earmarked reserves:-

The Corporate Retirement Fund – £750k to support the Authority’s redundancy and early retirement policy enabling it to provide for the actuarial strain on the Pension Fund arising from any early retirement or redundancy;

The Major Development Fund – Transfer of £2.041m to support major developments in the future;

MEP Capital Funding - £3.533m set aside in the 2017-2018 budget to meet the cost of prudential borrowing to finance the Modernising Education Provision programme - to be utilised in 2018-2019;

The City Deal Reserve – Transfer of £2m to meet potential future expenditure in respect of City Deal Projects.

Reference was made to the establishment by the Council of arms-length companies relating to the provision of housing and Llesiant Wellbeing together with the change in status of CWM Environmental from an arms-length to a TEKKEL company. Clarification was sought on how those companies would be reflected within future Statements of Accounts. The Director of Corporate Services confirmed the arms-length companies would be reflected within the notes attached to the statement of Accounts and would include details of any loans provided. With regard to CWM, a formal Statement of Accounts would need to be produced for submission to its Shareholders Board

It was noted that the Committee had attended a briefing session on the Statement of Accounts during the week which had provided them with the opportunity of seeking clarification etc. on all aspects of the Statement of Accounts.

UNANIMOUSLY RESOLVED