Agenda item

Jane Fineman, the Head of Finance and Governance, presented the unaudited draft Annual Financial Report for 2015/16. She asked Committee members to comment on the draft and invited suggestions for any improvements on the narrative and presentation, ahead of the submission of the audited version to the meeting on 26 July.

Mrs Fineman summarised the key elements of the formal accounting statements. She also explained how the Government would be requiring local authorities from the 2017/18 accounts onwards to complete the auditing process by the end of July each year. Mrs Fineman said that Tunbridge Wells Borough Council had decided to follow this shorter timetable two years in advance, adding that this had been achieved with the assistance of the authority’s external auditors Grant Thornton.

The Chairman, Councillor Horwood, said that the draft Annual Financial Report for 2015/16, circulated with the agenda, “made very good reading”. He asked whether members of the Committee had a further period in which to raise questions. Mrs Fineman confirmed that the public inspection period existed up until 14 July, during which time Committee members were still able to ask questions on the draft.

Councillor Moore referred to section 12 of the ‘narrative report’, which was headed ‘material events after reporting date’ and section 13 – impact of current economic climate – specifically the reference to the national economy. She asked whether the result of the EU Referendum would require a change in the authority’s forecasting.

Mrs Fineman said that it was still too early to say if there would be such a change. She added that the authority’s financial advisors were encouraging a ‘business as usual’ approach at this stage, which accorded with the views of the Local Government Association. Lee Colyer, the Director of Finance and Corporate Services, added that the Financial Report for 2015/16 was very much a document that focused on the financial year that had ended; he added that any impact of the EU Referendum result would be addressed in the budgetary reports for the current year, starting with the first such report to the Cabinet in August.

Mr Quigley voiced his concern about the change in policy which had resulted in local authorities now being responsible for the financial consequences of business rate appeals, based upon levels first set by the Valuation Officer. He asked if the Borough Council could take any sanctions against the Valuation Officer. Mrs Fineman advised that, while there were no such powers available, the Borough Council did meet regularly with Valuation Office staff, adding that there was increased transparency in place as to how valuations had been calculated.

Mr Quigley also referred to page 27 of the agenda, where the authority’s performance in respect of determining planning applications was set out. He felt that the narrative did not match the performance data set out. Mr Colyer advised that the performance of the Planning Service had improved during 2015/16, although not in the category of ‘major’ applications. He added that he would ask that this section be looked at again, to ensure that the narrative reflected the performance data.

Councillor Moore drew attention to page 75 of the agenda, where reference was made to the authority’s ‘defined pension liability’. She asked whether there was an element of under-funding suggested by the figures set out. Mrs Fineman said that any additional requirements would appear in the revenue accounts as a result of the outcome of the tri-ennial review, due this year.

RESOLVED – That the unaudited, draft Annual Financial Report, containing the unaudited, draft Statement of Accounts, be noted.