Report No. 127/2018 was received from the Director for Resources.  The purpose of the report was to present the statutory Statement of Accounts (SoA) 2017/18 (Appendix A of Report No. 127/2018) in the form prescribed by regulations to meet the statutory requirement for the Council to approve and publish its annual statement of accounts by 30 July 2018.

Mr Della Rocca provided a brief introduction acknowledging the work that had gone in to adhering to the shorter timescales in producing the SoA this year following changes to the statutory deadlines.  The RCC SoA was not overly complex and the main areas highlighted were the pension fund deficit which was subject to fluctuations as detailed in the cover report.  The RCC pension liability was consistent with that of other Local Authorities.  The other issue highlighted was the provision for liability created by business rates appeals.  The SoA included the Annual Governance Statement which demonstrates the Council’s compliance with the governance framework and Appendix B provided further clarification of the key statements.

During discussion the following points were noted:

1. Mr Conde requested information on whether it was possible to impose on Parish Councils a more consistent approach to setting precepts.  Mr Della Rocca confirmed that the Council was not able to impose such conditions on Parishes and that Parishes were free to set their own budgets and manage their financial affairs as they see fit;
2. Adult Social Care debt represented one of our key debtor streams.This debt accrued against a legal charge on property so would eventually be repaid;
3. The external auditors would highlight if there was a material concern regarding the level of debt and provide advice on ways in which the risk may be mitigated.  No such concerns had been highlighted;
4. Officers confirmed that there had been no requests from members of the public to view or comment on the accounts; and
5. Mr Lammie highlighted the growing financial gap referenced in Section 3 of the SoA and the necessity to rely on reserves asking whether this could ultimately lead to a similar situation as faced by Northamptonshire.  Mr Della Rocca confirmed that all Local Authorities were facing the same challenges and must address the issue of depleting reserves.  The Council acknowledged this challenge and was looking to address the situation.  Mr Conde asked whether the Council was reliant on commercial income as others are.  Mr Della Rocca indicated this was not the case and the Council’s commercial approach was proportionate and limited.  The Growth, Infrastructure and Resources Scrutiny Panel meeting in September would focus on the financial position of the Council.  It was important to learn from other authorities to see what had worked and what had not, but also to recognise that each authority would have its own unique characteristics and challenges.

RESOLVED

To APPROVE the Statement of Accounts for 2017/18 at Appendix A of Report No. 127/2018 including the Annual Governance Statement.