Agenda item

Consideration was given to the draft Statement of Accounts for 2018/19. 

The report highlighted the following:

·         The overall revenue outturn position for 2018/19 was as surplus of £0.849m.  This was an increase on the favourable variance of £0.255m projected at month 9 that was reported to Cabinet on 25 March 2019.

·         The year-end variances that were attributable to each Portfolio.

·         Schools balances at 31 March 2019 were £6.925m but were offset by the deficit on the Dedicated Schools Grant (DSG) of £2.723m leaving a net balance of £4.202m held within other earmarked reserves.

·         The final Housing Revenue Account (HRA) balance was £21.305m.

·         The balance on the Collection Fund was a surplus of £4.147m.

·         The small reduction in revenue account earmarked reserves of £2.108m to a level of £80.623m, an increase in other earmarked reserves to a level of £12.935m and an increase in balances to £14.840m reflective of the revenue outturn position.

·         Expenditure on the Council’s Capital Programme for 2018/19 was £48.564m which is a small increase on the month 9 forecast expenditure of £48.267m.  The increase in expenditure required funding allocated to future years to be re-profiled to fully finance the Capital Programme in 2018/19.

·         Capital Receipts in year totalled £6.180m, which when taken with the brought forward balance, gives a total of £14.927m, which was used to finance the Capital Programme in year.

·         The significant items in each of the primary financial statements.

·         The performance of the Finance Team in closing the accounts.

Members were informed that in accordance with good practice, Committee Members had been sent the draft accounts prior to the issue of the agenda to allow a greater opportunity to ask questions or queries related to the statements.  The accounts had been handed to the External Auditors on 2 May, the 30-day public inspection period began on 10 May and would finish on 21 June.  The final accounts would be presented to the Audit Committee for approval on 25 June.  Due to new CIPFA guidance and requirements the length of the accounts had increased. 

The External Auditor informed members that the audit was in progress and hoped to be finished soon.  The support from Finance staff had been good and team members had been helpful.  The auditor’s report would be brought to the next meeting subject to any objections being received.  There was nothing of major concern at this time. 

The summary of accounts, the budget for the current year and the challenges faced were outlined.  There were 38 detailed notes to the accounts and, in addition to the Core Statements, included Supplementary Statements related to the Housing Revenue Account (HRA) and Collection Fund.  The Group Accounts for the first time incorporated Unity Partnership.

The following was highlighted:

·         Pressures linked to Children’s Social Care, Catering and Cleaning and Home to School Transport – these pressures have been considered within the 2019/20 budget process;

·         In year underspending occurred linked to capital financing and also the control of recruitment and general spending;

·         Schools balances had increased but there remained a deficit on the Dedicated Schools Grant with demands on high needs which were in excess of funding available.  A recovery plan was to be sent to the Department for Education by 30 June;

·         Healthy positions were noted for the HRA and collection fund;

·         Reserves and balances were key areas of focus when considering the financial health of the Council;

·         General reserves had a slight reduction but a strong overall position had been maintained.

·         The capital outturn was in line with that projected at Month 9; and

·         Long-term and short-term investment levels were considered to be adequate.

Members noted the hard work of the Finance Team with the changes which had taken place and the new requirements in the preparation of the Final Accounts.

Members sought and received clarification on the pensions and the Council element of the Greater Manchester Pension Fund.  Members were informed that an elected member from Oldham sat on the Greater Manchester Pension Fund Management/Advisory Panel and the ethical approach to investments.

Members sought and received clarification on the Parish Precept payments with regards to council tax and a grant.    The grant payable to Parish Councils had for several years been passported in line with funding received from central government and had then been reduced in proportion to the reduction of the overall grant received by the Council.

Members commented on the complexity of the accounts and how it would be difficult for a member of the public to understand the accounts.  There were also comments that the spend on consultants, agency and sickness was not specifically highlighted.  It was clarified that these were part of the revenue outturn but that there was no actual requirement to include that information in the accounts.

Members sought clarification as to why some officers names were provided on the Officers’ Remuneration section and some were not and it was explained that only those earning over a certain amount had to be named.

Members sought and received clarification on the increased resources allocated to Children’s Services which was intended to address the overspend in 2018/19 via a restructuring plan.

RESOLVED that the draft Statement of Accounts for 2018/19 be noted.