To report to the Committee on the 2008/09 Statement of Accounts.

The Acting Head of Financial Services presented a report on the 2008/09 Statement of Accounts which, in accordance with the Accounts and Audit regulations 2003, had to be approved by 30 June 2009. She emphasised the core statements in paragraph 7 of the report and that there were no significant changes from the previous year except some technical issues. Although the income and expenditure account was in deficit as detailed in paragraph 13, there was a net underspend of £249,000 in 2008/09 on revenue spend. She further emphasised that the balance sheet long term assets had increased by £24.811m to £403.576m during the year.

Circulated at the meeting was a replacement page 24 of the Statement of Accounts, a copy of which is attached to the Minutes.

With regard to a Member’s question that paragraph 2.2.5 b of the report did not show the Youth Service annual spend, the Acting Head of Financial Services informed the Committee that it had not been reported as there had not been a significant variance.

With regard to the Local Government Pension Scheme which is administered by Worcester County Council, the Chairman suggested that this Council should have a representative on the County Council Panel dealing with the issue. The Director of Resources advised that although this Council was a significant contributor, the County Council has stated that they have not admitted this Council because this would mean they would have to admit other contributors.

The Acting Head of Financial Services referred to the surplus monies in relation to the collection fund, paragraph 28 of the report refers, and informed Members that this was as a consequence of the number of assumptions which had been made around the Council tax base when setting Council tax. A Member asked if there were collection indicators. The Director of Resources advised that the Council did have collection indicators for the collection of rates. He informed Members that approximately 99 per cent of the Council tax was collected.

The Vice-Chairman took the view that Section 75 of the Health Act 2006 Partnership Schemes, paragraph 10.8 in the Statement of Accounts, were still unclear and questioned the apparent adverse trends in creditors and debtors, page 62 refers, and the net worth to the Council if these trends were  reversed. The Acting Head of Financial Services advised that long term debtors were increasing due to a build up of Private Finance Initiative assets and a change of accounting arrangements in Adult Services. There was however no real increase in long term debt as such. In debtors, the main increases were around contributions towards capital schemes (including Department of Children Schools and Families (DCSF) grants) and the Primary Care Trust. With regard to creditors, the figures included receipts in advance. Government grants were being received in advance which were being held before being spent. The cut off date for grants being spent was 31 March and any of those grants which were not spent before that date would be returned to the DCSF.

In answer to a Member’s question, the Acting Head of Financial Services advised that the overspend on ICT projects as referred to in paragraph 2.2.5 c, was a result of making amendments to the Thorn Centre instead of providing a new centre. With regard to the overspend in Member’s Services on additional staff costs, referred to in the same paragraph, the Director of Resources stated that this was due to an underlying issue of the base budget in Member’s Services not being correct for a number of years which was now being rectified.

A Member asked the Committee to note the slippage on the Herefordshire Connects programme which had resulted in less reserves being drawn on in 2008/09, paragraph 2.2.5 c page 41 of the report refers.

The Chairman expressed thanks to the Acting Head of Financial Services and her team for the work in producing the Statement of Accounts.

RESOLVED:   That the 2008/09 Statement of Accounts be approved.