The chief finance officer presented the reported and noted that the committee’s function was to comment on the assurance provided in connection with the loan agreement.   The operation of the waste contract would be considered that other parts of the council. 

The council had lent money to the enterprise and the report outlines the detail of the loan.      The current status of the loan was satisfactory and this was a good outcome.    If there were any issues with the loan, it would be reported to the committee as quickly as possible. 

The loan arrangement ended in 2023 and there would options available to the council for any future arrangements which included a third party buys out the loan, an extension with the current provider or brought in house.  

It was noted that appendix 3 (ratio calculation) did not provide an indication of that it meant.   It was requested that an explanation be built into next year’s report or that it is removed.

With regard to the Fitchner report (appendix 4) it was noted that there were defects had not been resolved and the chief finance officer stated that it would be looked into and an update would be circulated to committee members.

It was noted that in the accounts it had been indicated that there was interest from the loan of £600k which had not been accrued.   It was confirmed that payments had been received in line with the loan agreement but had not been accounted for in the accounts. 

It was noted that the risks A and F were the same risks as the previous year and the chief finance officer confirmed that he would check the risks between A and F and update the committee.   It was further confirmed that the risk register was jointly produced and monitored with Worcestershire County Council.  

It was noted that when any financing arrangement came back to committee, they would require professional advice.    The chief finance officer confirmed that professional advisers would be engaged to advise the council and the committee. 

RESOLVED

That the report be noted.