Agenda item

The Chairman has agreed to the admission of an item of urgent Business in respect of the City Fund and Pension Funds Financial Statements – 2015/16

Report of the Chamberlain

 1. City Fund and Pension Funds Financial Statements 2015/16 – report of the Chamberlain

The Committee considered a report of the Chamberlain in respect of the City Fund and Pension Funds Financial Statements for 2015/16, together with updated audit findings from BDO.  Following completion of the review of the financial statements by BDO, changes to the 31 March 2016 City Fund Balance Sheet between July and September 2016 were set out.

Members noted that the overall change was a net reduction of £0.5m, in relation to total net assets of nearly £1.6 billion and that a number of the adjustments related to leases.  The Chamberlain reminded Members that the officers have to prepare hundreds of complex lease entries, many of which had not been reviewed in time for the last meeting on 18^th July 2016.  The External Auditor confirmed that the financial statements were being updated for the adjustments and that he would be providing an unqualified opinion, with the financial statements being signed off next week.  In light of the adjustments, as set out in the report, the Chamberlain offered to provide an action plan to the next meeting of the Audit and Risk Management Committee, in order to reduce the need for such changes in future years.

In respect of the disclosure notes in the accounts, a post balance sheet event note on Brexit would not be included, given that it was still too early to assess any medium/long term impact, which is the basis on which the City’s asset allocation and wider investment strategy decisions were made.  Also, asset and liability values changed from day to day, due to any number of factors of which Brexit is only one.  Therefore, officers considered that the disclosure would require significant amounts of work for little value. 

Members noted that, as the changes to the financial statements were relatively immaterial, the report would not be presented to the Finance Committee and the financial statements would be signed by the Chairman and Deputy Chairman of that Committee, using the previously approved delegated authority.

In concluding, the Chairman and Members congratulated the Chamberlain and his Team for their work on a complex set of accounts and the External Auditors for their thorough scrutiny.   Finally, Members noted that this would be the last meeting attended by Steve Telling, the Deputy Financial Services Director, who would be retiring at the end of the month.  The Committee thanked Mr Telling for his sterling work over many years and wished him well for the future. 

RESOLVED, That – having reviewed the contents of BDO’s latest reports on the City Fund and Pension Funds Financial Statements 2015/16, they be recommended to the Finance Committee for approval. 

 2  Expiration of Term of an External Member (March 2017)

The Chairman was heard in respect of the expiration of the term of one of Committee’s External Members, Mr Kenneth Ludlam.  Mr Ludlam decided to leave the room during the discussion.  Members noted that Mr Ludlam’s second term would expire in 2017 and Members were reminded that, in 2014 and 2015, they had agreed to extend the Membership of all three External Members to another term, so that their term expired in 2017, 18 and 19.  Subsequently, the Town Clerk had reported this recommendation to the Court of Common Council, with an expectation that the norm be for a period of 2 terms.        

Members noted that it was not unusual for External Members to serve 3 terms in other local authorities but generally no more than this.  Members agreed that Mr Ludlam made a valuable contribution to both the Audit and Risk Management and Police Performance and Resources Sub Committee and noted his willingness to serve for a further term.

RESOLVED, that –

1.       Mr Ludlam be invited to submit a CV, to be appended to a report of the Town Clerk, to the next meeting of the Audit and Risk Management Committee on 8^th November 2016, to enable Members to consider a possible extension of the external membership of Mr Kenneth Ludlam to a third term

2.       If Members are minded to extend Mr Ludlam’s membership to a third term, it be recommended  for a final decision at the Court of Common Council in December 2016.