Agenda item

to consider a report that presents a summary of net revenue and capital expenditure for consideration and provides an opportunity for Members to comment on the Draft Statement of Accounts for 2014/15

A.9/15            

The Committee was presented with a report that introduced the draft Statement of Accounts for 2014/15.  In summary, the report advised that a surplus of £34,000 had been generated in 2014/15, which had been transferred to the General Fund Balance (unearmarked revenue reserve).

In discussion, reference was made to:

(a)    the pension scheme assets and liabilities.  A briefing note was tabled to the meeting that provided more details regarding the pension scheme assets and liabilities.  A lengthy debate ensued during which Members raised a number of concerns at the pension liability increasing by 43% over the course of the year.  The S151 Officer took Members through the briefing note which explained that the increase in the liability was due to a change in the actuarial assumptions in 2014/15.  It was noted that the increased liability was mainly due to the fall in the discount rate assumption from 4.4% to 3.3%.  It was also stated that if the same valuation exercise had been repeated just two weeks later (when the discount rate had risen), the increase in liability would have been reduced considerably.

As a consequence of Member concerns, the Committee requested that a representative from Devon Pensions be invited to attend the next meeting on 24 September 2015 to provide a presentation and respond to Member questions.

The Committee also noted that the pension fund deficit (as reported in the accounts) did not represent an immediate call on the Authority’s reserves, but simply provided an accounting valuation snapshot (at 31 March 2015), with the value of assets and liabilities changing on a daily basis.  Assurances were also given that this did not affect the Council’s ‘bottom line’ and was reversed out of the revenue account;; 

(b)    the analysis of variations.  Members commented that the analysis was particularly useful and the additional income generated from planning applications and employment estates were particularly noteworthy.  In contrast, a Member felt that the reduction in income for the Lower Ferry, Car Parks and Trade Waste were causes for concern.  In acknowledging the point, the lead Executive Member for Support Services informed that the Executive was aware of these reductions and measures were being considered to reverse these trends;

(c)    the comprehensive income and expenditure statement.  The Chairman queried as to why there were large variations on the statement in relation to ‘central services to the public’, ‘cultural and related’ and ‘planning’.   In reply, the S151 Officer advised that the variations were largely as a consequence of:-

o    ‘central services to the public’ – there were two main reasons for this variation, namely the land charges settlement around personal search fees and the cost of the European elections;

o    ‘cultural and related’ – this variation was due to the revaluation of Ivybridge Leisure Centre; and

o    ‘planning’ – this variation was attributed to the £440,000 additional income generated by the service.

(d)    the Transformation Programme.  The Committee was assured that the Programme remained on track in respect of the anticipated projected savings.

           It was then:

     RESOLVED

1.       That the draft Statement of Accounts for the financial year 31 March 2015 be noted; and

2.       That a representative from Devon Pensions be invited to attend the next Committee meeting on 24 September 2015 to provide a presentation and respond to Member questions.