Agenda item

The purpose of this report is for members to review and approve the final Statement of Accounts for 2018/19.

Members considered the Statement of Accounts 2018/19 report, presented by Neil Krajewski.

Neil Krajewski informed members that there may be some minor adjustments to the Statement of Accounts following the external auditors work however no substantial changes are expected.

Members asked questions, made comments and received responses as follows;

1.    Councillor Sutton asked that officers, in future, highlight any amendments via track changes or provide members with a narrative of these changes. Mark Saunders confirmed that the only amendments have been purely for presentational purposes and no figures in the primary statements have been amended.

2.    Peter Catchpole confirmed that significant changes will be reported to members. Councillor J Clark asked that these are highlighted to members in future. Mark Saunders agreed to do this.

3.    Councillor Wicks suggested that it would be helpful for members if the balance sheets included notes showing variances and the reasoning behind these. Mark Saunders agreed.

4.    Councillor J Clark highlighted that the Council have £1.66 million of savings to identify over the coming years. He asked for further information on the figures relating to the Ports and Markets. Mark Saunders highlighted that these figures are shown on page 133 of the agenda pack.

5.    Councillor J Clark asked for further information on the Council’s mini factories and estates. Mark Saunders explained that these were considered as part of the Overview and Scrutiny Panel’s Economic Development Review and agreed to circulate a breakdown of these figures to members.

6.    Councillor J Clark stated that both the Boathouse, Wisbech and South Fens, Chatteris were funded largely by European grants and yet these assets are operating at a loss. He asked how the Council can move forward commercially if these areas are currently underperforming financially. Mark Saunders clarified that only half of these premises were funded by grants and detailed breakdowns of these premises were considered as part of the Economic Development Review. He agreed to provide these figures to members.

7.    Councillor J Clark suggested that the Corporate Governance Committee refer this matter to Cabinet to consider.

8.    Councillor Sutton said he has raised this issue for many years but reminded members that the day-to-day running costs of these premises do show a profit however the overheads allocated then show them operating at a loss. He suggested that consideration be given to options to outsourcing the management of these premises to third party operators.

9.    Councillor J Clark agreed with this suggestion but reminded members that this recommendation is outside of the Corporate Governance Committee’s remit.

10.Peter Catchpole reminded members that under CIPFA guidelines, recharge figures must be included in the accounts which can cause presentational issues and distort the reality of these figures. He reiterated that detailed analysis of this had been undertaken as part of the Economic Development Review. He added that if these were private sector accounts, the overheads would not be included in the same way as required by a Local Authority. 

11.Councillor J Clark agreed and stated that the overheads and recharge figures need to be considered.

12.Councillor Wicks suggested that the viability could be assessed by analysing the return on the capital investment of these premises. Peter Catchpole confirmed that as part of the Commercial Investment Strategy (CIS) consideration will be given to the return and yield.

13.Councillor Mrs French proposed that this issue is referred to Cabinet for consideration.

The Corporate Governance Committee AGREED;

1.    To approve the Statement of Accounts and Annual Governance Statement for the financial year ended 31 march 2019.

2.    To delegate authority to the Corporate Director and Chief Finance Officer to agree any further amendments to the statement of accounts which may arise prior to the final ‘sign off’ by the external auditors, in consultation with the Chairman and the Vice-Chairman of the Corporate Governance Committee.

3.    To write a letter to the Leader and Cabinet in relation the trading accounts for the mini-factories, estates and office units.