Agenda item

Joint Report of the Chamberlain and the Commissioner.

The Committee received a joint report of the Chamberlain and the Commissioner that provided Members with an overview of CoLP’s financial outturn for 2017/18.

The Commissioner noted that the underspend of £3.5m referenced within the report was attributable to the costs yet to be paid out to Action and Know Fraud service provider.  He explained that the forecast made in November 2017 was accurate, however, the nature of this programme changed over time.  The Chamberlain confirmed this, noting that the £3.5m would not go into the reserves as first thought.

A Member illustrated that this required further explanation to the Finance Committee who may perceive this as mis-forecasting and asked if there was a way to inform them.  The Commissioner explained that this would be reported to the Finance Committee.  A Member also suggested that the accompanying infographic summarising the breakdown of CoLP’s budgets be reported to the Finance Committee. (2)

A Member noted that the Committee was promised accounting would take place on an accruals basis and, as CoLP was legally committed to the Action and Know Fraud contract, this should have been accounted for.  The Chamberlain explained that as there was still an active dispute over the payments, it was not accounted for on this basis.  The Chairman noted that if a payment was an obligation then it should be considered as an accrual.  The Chamberlain explained that the sum was being treated as a contingent liability and confirmed that the auditors were satisfied that this was the case.

A Member noted the use of the term “achieve” in reference to the underspend sum and suggested this was inappropriate.

RESOLVED – That the report be received.