Agenda item

Colleen Warren, Financial Services Manager:

a.    presented the draft Statement of Accounts for the financial year which ended 31 March 2021, together with a short summary of the key issues reflected in the statutory financial statements for scrutiny

b.    highlighted the summary of key issues within the below areas in the Financial Statements:

·       The Comprehensive Income and Expenditure Statement

·       The Balance Sheet

·       Cross Cutting Key Issues

c.     recommended that Audit Committee scrutinise the draft Statement of Accounts

d.    invited members questions and comments.

Question: Referred to paragraph 4.1.2 of the report and asked for details regarding the underspend of £148.4k.

Response: There had been a lot of fluctuations due to the Covid-19 pandemic. The underspend was presented to Performance Scrutiny Committee and Executive and the details could be found in the reports for both of those meetings.

Question: Referred to the 2023/24 reductions detailed at page 62 of the Draft Statement of Accounts and asked how these savings would be made and if Officers were confident that the savings targets could be met.

Response: A number of reviews had already been to Executive and a range of business cases were currently being progressed. Officers were confident that the current year (21/22) savings target could be met and a programme was in place for the future years

Question: If there was a spike of covid-19 infections in the winter, could there potentially be a detrimental impact on the budgets?

Response: Potentially there could be an in-year impact, however, we could not be sure of the impact over the longer term.

Question: Asked if the current budget position was currently better or worse than predicted?

Response: The team were currently preparing the quarter 1 financial performance position. However, at this early stage, the indications were that there were a few key areas that off target.

Question: How much of the earmarked reserves would have to be used?

Response: The 2021/22 budget already assumed the use of some earmarked reserves in order to mitigate the impact of Covid-19.  Any further use of reserves in year would depend on the overall financial performance during the year.

Question: Had there been any income from the civic owned pieces?

Response: No, they were just for public display.

Question:  Referred to page 61 of the Draft Statement of Accounts in relation to the earmarked reserves for the mayoral car and asked for further details.

Response: The mayoral car had finished its lease, so it was currently under review.

Question: Referred to the shares in Dunham Bridge and asked if the Council could increase the fees?

Response: The Council owned some shares but had no voting powers or influence to increase the fees. The share brought in £26k of income per year.

Question: Referred to page 91 and 92 of the Draft Statement of Accounts and noted the increase in salaries for the Directors.

Response: This was due to a nationally agreed pay award of 2.75%.

Question:  Referred to page 8 of the Draft Statement of Accounts and commented that there was a mix of units that were being used.

Response: This would be updated.

Jane Nellist, the Independent Member commented that it was reassuring that the City of Lincoln Council had tight control of the finances compared to some other authorities.

RESOLVED that the draft Statement of Accounts be received and comments made by the Committee be noted.