Issue - meetings

Report of the Chamberlain.

Please note:  there are a number of lengthy and detailed appendices in respect of this report, which have been circulated in a supplementary pack.

Report of the Chamberlain.

Members received a report of the Chamberlain relative to the City’s Cash financial statements for 2021-22.

The Chamberlain introduced the report, and Members noted the following points:

·         There were no significant matters arising from the audit report.

·         There were some outstanding queries which the Chamberlain and Crowe were working on

·         The financial statements had been delivered one month late. A constructive meeting had been held with Crowe on how to resolve this issue going forward.

A Member said that the statements showed that the City Corporation ran a consistent operating deficit, with a reliance on increased value in capital to remain solvent. They asked if this was a sustainable way to run the organisation. The City Corporation had historically aimed for to break even in income and expenditure, but the significant amount of spend required for the Markets Co-Location Programme and the enabling works required as part of City Corporation’s  landlord responsibilities for the Museum of London project needed to be drawn down from the balance sheet. The Chamberlain considered this to be a reasonable action when viewed as a going concern. The Finance Committee had responsibility for this strategy, and considered it closely along with the Policy and Resources Committee. The Chamberlain undertook to circulate a paper to that had gone to Policy and Resources in October 2022 which provided an assessment of the affordability of major projects. The Chamberlain said that she felt the most prudent position had been taken.

A Member asked if the risks surrounding this approach were present on the risk register. A Member, also the Deputy Chairman of the Finance Committee, said that the risk was covered by CR35 City Cash. They felt that some reasonably prudent use of capital for expenditure was acceptable, but it was important to remember that there were limits