Agenda item

The Committee first heard Supplementary Questions from Alderman Price in relation to his Public Forum submission, the responses to which are set out below each question.

1. Assurance was sought that the new Education Management system would have the ability to track the performance of children in care.

Response: The Education Management system sits on the same shared database as social care and early help, so there is a single record for a young person which contains data we, as an LA, store on them including care status, end of key stage results, as well as a wealth of other information where services work with a child / young person.  On that basis we are able to track the performance of all children and subsets of children including those in care.

2. In relation to the pupil premium assurances that a separately identifiable cost centre was available and utilised for accounting and reporting on the grant funding associated to LAC pupil premium.

Response:  The LA can confirm that a separately identifiable cost centre is available and utilised for accounting and reporting on the grant funding associated with LAC Pupil Premium.

The Interim Head of Corporate Finance summarised the report highlighting a number of changes made since the Statement was considered in May as follows:

Ø  An in depth review by the Council’s insurance provider identified an under value of heritage assets by £98m which was incorporated in the draft statement. As this related to assets held by the Council prior to 1 April 2016 there were restatements of the balance sheet as at 31 March 2016 and 31 March 2017 requested, with the balance sheet for 31 March 2018 reflecting a £2m increase in revaluations in 2017/18;

Ø  Six months of the remuneration from salary of the ex-Chief Executive had been reclassified as compensation for loss of office. BDO reported that it was inappropriate to conclude that the final payment was contractual. This did not change the actual accounts and was no additional cost to the Council;

Ø   A detailed note setting out the position relating to Bristol Arena following Cabinet decision on 4 September 2018. This did not change the numbers in the accounts.

The Committee were asked to approve the Statement of Accounts for 2017/18, the signing off of the accounts being delegated to the Chair of Audit Committee.

The following points arose from debate:-

1. Councillor Negus wanted assurance that there were processes in place so that heritage assets were accurately valued so that such a situation did not reoccur and was assured that there was a process to revalue annually. The cost of the insurance was reflected in the valuation of assets;

2. It was confirmed that although the Cabinet decision on the Arena came after the end of this year’s accounts it was accounting and financial reporting practice to report such matters as a “post balance sheet event”. Temple Island was classified as assets under construction and an element of the expenditure had been capitalised in prior years and 2017/18. A note recognised that the decision could change the value of assets as shown in the 17/18 accounts but the potential impact would be adjusted in the 18/19 accounts. It was noted that additional revenue sources had been identified so that there would be no impact on front line services;

3. Attention was drawn to Page 114 – Officers Remuneration and Exit Packages – and it was noted that Notes 10, 11 and 12 were missing from the Table; 

4. Clarity was sought regarding the Table on Page 184 headed Group Movement in Reserves Statement. It was confirmed that this included useable and unusable reserves. Councillor Radford felt that this was unclear to the public and in fact it appeared that useable reserves had increased by £58m whilst the Council was at the same time cutting services;

5. The Service Director – Finance replied that these were not unallocated reserves but were specific reserves available for use by the Council as designated.  It was technical accounting practice to display in this format.  The Movement in Reserves Statement is a primary accounting statement.  Its format is prescribed by the CIFPA Accounting Code and cannot be altered.  The Statement sets out movements between usable and unusable reserves. The movement in useable reserves was set out in full in the 17/18 outturn report presented to Cabinet in June;

 6 In summary £10.7m were planned increases from MRP savings and Collection Fund surpluses, £3.5m from additional S31 grant and £6.6m from Government grants with conditions carried forward to be spent in 18/19.  Capital receipts increased by £18m.  These were not required in 17/18 but will be needed over the life of the MTFP to fund transformational projects and short life assets.   There was a further transfer of £17m from the HRA, mainly resulting from slippage in the capital programme.

7. Councillor Stevens referred to BDO’s finding of a £12.9m impairment variance in Bristol Energy, clarity was provided on where this was reported in the Accounts  and was also informed that this was set out in the draft BDO ISA 260 report;

8. The Committee was reminded of the Recommendation and it was:-

Resolved (Unanimously) – That the Statement of Accounts for the year ended 31 March 2018 be approved for sign-off by the Chair subject to the additional information omitted being included in the final Statement.