Agenda item

Prior to the discussion on the report, the Chair and Members wished to express their thanks to all staff who had worked on the preparation of the draft accounts.

The Committee received a report, which presented the Council’s unaudited Statement of Accounts for the 2020/21 financial year. The report highlighted the overall financial position for the year and information on performance including improvements achieved in accuracy and quality. It was advised that the accounts had been published on the Council’s website and to date no enquires had been received. Officers stated that it was positive that the accounts had been completed at this early stage and reminded members that the Council completed the 2019/20 accounts by the deadline, unlike a number of other Councils. It was also noted that the Council had received an unqualified response from the Council’s external auditors Grant Thornton last year.

The Committee asked a number of questions as follows:-

The Chair asked in terms of Government Grants detailed within paragraph 23(d) of the report had any problems arisen through Internal Audit discussion. In response, it was reported that a lot of work had been done in the area, primarily in relation to business rates. As Committee were aware, the annual report presented a positive low incidence of fraud in January and since that, time there has been minimal problems identified. With regard to wider grants, it was advised that ongoing assessments were being undertaken in order to establish whether further detailed audit was required and no areas had been identified through this process at present.

Clarification was sought on the Councils position and whether it was clearer in terms of lost income, increased cost due to Covid and the position with regard to reimbursements from Central Government. In response, it was reported that, in terms of 2020/21, included in the accounts was all the Government money in terms of COVID, which details £166m additional grants from Government, included in that are grants and reliefs provided to businesses. It was also noted that the outturn position and lost income in the collection fund position were also included.

It was reported that moving forward into 2021/22, it was advised that officers were monitoring the position very closely. Business rates and Council Tax are monitored in terms of the impact on those on a monthly basis and this will be reported through the quarter one report.

With regard to other income, it was advised that the Council will receive reimbursements for sales, fees and charges losses due to COVID for the first quarter Officers will carry out a monitoring return and send to the MHCLG and the Council will receive reimbursement adjusted for 5% of the budget, the Council will receive 75% of the remaining loss. It was advised that officers were also closely monitoring other income streams such as car parking and income from the Herten Triangle and properties around the cinema, which will also be fed into the budget moving forward.

The Council also received for 2021/22 the fifth Tranche of the COVID emergency funding, equating to £9.8m of additional funding, which is also available to fund any further shortfalls in income. It was advised that there are a number of other grants and as the year progresses they continue to be extended such as the Local Support Grant and Infection, Prevention and Control, which have both been extended and officers are monitoring that closely as we proceed through the year.

Officers were asked if there were any instances where the Council had been expecting or promised funding from Government that were COVID related, that have not been received. In response, the Committee were assured that there were no instances of this.

In terms of the various grants received, it was asked whether there was any risk that it was likely to be any clawback for any reason. In response, it was reported that in terms of clawback, majority of the grants received do have requirements attached and the Council ensures that those requirements are met, reducing the risk of clawback or losing the grant funding.

Officers went on to state, that with regard to confidence about the application of previous monies the Council had received.  As part of the Annual Governance Statement received at the last meeting, the work undertaken by Internal Audit and, the assessment officers have undertaken as part of arriving at that statement.  Whilst there have been a lot of emergency decisions taken, reported also to Full Council, the speed at which the Council has had to respond, the Council has still maintained integrity of the governance arrangements and this was positively reported to Full Council.

The Committee were advised that going forward, its’ been illustrated the complexity of the range of funding available to the Council and to some extent this was continuing. Whilst some may think, the Pandemic is reaching an end, the Council are still receiving funding albeit in a more organised approach with early notification, which ensures that decisions are made through the normal governance process. However, it was noted that there were still a lot of decisions that required a rapid application and the resources need to be committed for the current financial year. These were decisions that have been processed through the Rule 16 Special Urgency Provisions, which have been taken and signed both, by Mayor Ros Jones and the Chair of Overview and Scrutiny Management Committee.

Further to this and the impact going forward in terms of 2021/22, it was reported, that based on last year, the organisation has been managed really well. As stated previously, the Council received £166m of additional funding, which equates to a third larger organisation. It was noted that those resources of funding spanned over 30 different types of service delivery. The Council structured an arrangement in order to utilise them and delivered them within a year. Committee were advised that looking back to the report, there had been a need for some of those resources to be carried forward, which provides an explanation for some of the assets that have increased. It was important to note that the Council will still have quite a volatile arrangement going into 2021/22, its’ still receiving resources, there was still a lot of work to be carried out in terms of responding to the response phase and recovery phase of COVID and there is still business as usual to be delivered. Members were advised that 2021/22 will, still be really challenging for the Council. However, reflecting back, officers felt that this was a good report in terms of the year the Council has had and how its’ been managed.

Further questions in relation to the report had been submitted in writing by Kathryn Smart, Co-opted Member on the Committee who unfortunately was unable to attend the meeting. It was agreed by the Chair and Members, that Kathryn receive a written response to her questions following the meeting.

            RESOLVED the 2020/21 Statement of Accounts be noted.