Scottish Borders Council

Agenda item

Scottish Borders Council Draft Reports and Accounts 2017/18

Presentation showing key highlights and various draft annual reports and accounts by Chief Financial Officer for consideration prior to their submission to the External Auditors:

 

Minutes:

With reference to paragraph 6 of the Minute of 28 June 2017, there had been circulated copies of a report and associated papers by the Chief Financial Officer on the draft Annual Report and Accounts for Scottish Borders Council, Scottish Borders Council Pension Fund, Common Good Funds, Charitable Trusts, Bridge Homes LLP, SB Supports LLP and SB Cares LLP.  The report provided the Audit and Scrutiny Committee with an opportunity to scrutinise the draft Annual Reports and Accounts for the year ended 31 March 2018 for Scottish Borders Council and associated Group Accounts prior to submission for External Audit Inspection by the statutory deadline of 30 June 2018.  The report summarised the financial transactions for 2017/18 and the balance sheet positions as at 31 March 2018 as set out in the Local Authority Accounts (Scotland) Regulations 2014.  In addition, Section 12 of the Local Government in Scotland Act 2003 required annual accounts to be prepared in accordance with proper accounting practice, primarily comprising the Code of Practice on Local Authority Accounting in the United Kingdom 2017/18 and the Service Reporting Code of Practice 2017/18 supported by International Financial Reporting Standards (IFRS).  The Pension Fund Accounts were required to adhere to the Local Government Pension Scheme Amendment (Scotland) Regulations which specified what must be contained in the Annual Report and Accounts.  The Common Good and Trust Reports adhered to the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard for Smaller Entities (FRSSE), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).  Following audit and a public inspection period the finalised Audit report and Audited Accounts would be submitted to Council in September 2018.

 

5.2       The Chief Financial Officer then summarised Scottish Borders Council draft reports and accounts by means of a presentation.  He detailed the 2017/18 highlights which included – a Revenue out-turn of £1.029m underspend; and £12.286m of Financial Plan savings delivered, of which 64% was recurring.  Net Assets (excluding Pension Fund liabilities) had increased by £38.6m net on the Balance Sheet.  The Balance Sheet demonstrated a significant improvement, materially affected by Actuarial Gains on the Pension Fund Net Assets/Liabilities (£70.5m) and an overall surplus on the revaluation of Property, Plant and Equipment (£53.6m).  Capital Expenditure was £36m with Fixed Asset NVB of £536.5m.  The presentation included the requirements under the Local Authority Accounts (Scotland) Regulations 2014 and the Council’s own Accounts timetable.  The Chief Financial Officer advised that the Council’s Audited Accounts were required to be published on its website no later than 31 October 2018.  The presentation included an analysis of Revenue Expenditure by department and a breakdown of how efficiency savings had been achieved.  A reduction in turnover was reported in respect of external trading by SB Contracts and Members noted that this was as a direct result of a continuing challenging external market.  Mr Robertson went on to explain the - Statutory Accounting Adjustments; General Fund Balances; Balance Sheet overview; and Capital Out-turn for 2017/18.  Group Accounts were consolidated as detailed in the full report for Scottish Borders Council.

 

5.3       With reference to the Pension Fund, Mr Robertson confirmed that Scottish Borders Council was one of the best funded LGPS nationally.  In response to a question relating to Common Good Funds, Mr Robertson advised that an Annual Seminar was scheduled to take place on 28 August 2018 and it was agreed that the Statement of Common Good Trustees’ responsibilities would be circulated to all Members separately.

 

DECISION

 

(a)        NOTED the Draft Annual Report and Accounts 2017/18 for Scottish Borders Council and associated Group Accounts; and

 

(b)       AGREED to:-

 

            (i)         support their submission for review by the External Auditors, Audit Scotland  for Scottish Borders Council, Scottish Borders Council Pension Fund, Common Good and Trust Funds Accounts; and

 

            (ii)        support submission for review by KPMG who continued to provide the external audit of the Council subsidiaries SB Cares, SB Supports and Bridge Homes which were not Registered Charities.

 

 

Supporting documents:

 

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