Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Council’s performance against the Financial Management Code.

RESOLVED: That the Committee noted this report.

REASONS FOR DECISION:

(1)  To enable the Committee to assess how the Council is performing against the Financial Management Code, in line with the Terms of Reference;

(2)  To provide training to the Committee to help them understand the Council’s Balance Sheet (as part of the Statement of Accounts).

Audio Recording – 50 minutes 10 seconds

The Service Director – Resources shared the report entitled Financial Management Code and Balance Sheet Insight and advised:

·         The first part of the report was an assessment against the financial management code. New code which was launched by Chartered Institute for Public Finance Accountancy in 2019 to ensure all Council’s had good financial measures in place following high profile Council failures.

·         Mapped where NHDC is against the code and have checked this against the newly released Guidance Notes.

·         Appendix A showed the detail of the code, outlined each element and the displayed actions taken in relation to these.

·         Appendix B was an insight into the Council’s Balance Sheet.

·         Elements of the Balance Sheet are not relevant, they exist as accounting adjustments, for example property revaluations and pension future liabilities.

·         There was no guarantee of property sales given the current market.

·         There was still some outstanding borrowing owed from prior to 2003, but these were on relatively high interest rates, therefore paying off early was not worthwhile.

·         Businesses can appeal their Business Rates, however there was a large backlog of these and this can only be estimated.

·         There had been a historic underestimation of pensions, due to a combination of living longer and increase in cost of living, and this was paid off with a lump sum each year.

The following Members asked questions:

·         Councillor Terry Hone

In response to questions the Service Director – Resources advised:

·         It was hoped that by the next civic year there would be an independent Finance, Audit and Risk Committee member.

·         The funding provided to Stevenage Leisure Limited (SLL) on an open book basis during Covid-19 would go through as expenditure. This was not expected to be returned to the Council, so would not be a debtor. This money was provided to keep the operations of SLL functioning.

Following a vote, it was:

RESOLVED: That the Committee noted this report.

REASONS FOR DECISION:

(1)  To enable the Committee to assess how the Council is performing against the Financial Management Code, in line with the Terms of Reference;

(2)  To provide training to the Committee to help them understand the Council’s Balance Sheet (as part of the Statement of Accounts).