Agenda item

            The Committee was advised that the Local Government (Accounts and Audit) Regulations (Northern Ireland) 2006 required the Council’s Statement of Accounts to be approved as soon as reasonably practical and in any event before 30th June immediately following the end of the financial year.

            The Director of Corporate Services submitted for the Committee’s consideration the Council’s Statement of Accounts and Financial Report for the year ended 31st March, 2008.  The report explained the Council’s finances during the previous financial year and its financial position at the end of that year.  The Director confirmed that the Statement of Accounts for the year ended 31st March, 2008 had been prepared in the form directed by the Department of the Environment and in his opinion presented fairly the income and expenditure and cash flows for the financial year and the financial position as at the end of the financial year.

            He explained that, during the year, the Council had reported a reduction on the District Fund Balance of £4,767,465.  This had reduced the credit balance on the District Fund Reserves to £10,367,397, which was approximately 6.8% of annual gross expenditure, or 8.9% of net operating expenditure. 

            The reduction had been made up as follows:

            The Council aimed currently to maintain the level of District Fund Reserves in the region of 5 to 10% of annual gross expenditure.  Currently the Chartered Institute of Public Finance and Accountants did not define a minimum or maximum level of reserves but rather felt it appropriate for Local Authorities, on the advice of their Finance Directors, to make their own judgement on such matters taking into account all the relevant local circumstances.

            The Director reported that the Council’s reserves were made up currently of the following:

            District Fund - £10,367,397

            The District Fund Reserves could be used to supplement income and any unexpected expenditure in future years.  £765,207 related to expenditure committed at the year-end.

            City Investment Fund - £2,075,000

            The City Investment Fund had been created to give a clear demonstration of the Council’s propensity to action and its wish to contribute to the vibrancy, prosperity, culture and attractiveness of the City.  The Strategic Policy and Resources Committee, at its meeting on 14th December, had agreed the cash flow requirements necessary to establish the fund and had indicated that in the 2007/08 financial year £1 million was to be allocated from reserves, with £1.075 million to come from rental income received following the result of a land tribunal case.

            Capital Receipts Reserve - £1,061,447

            These were capital receipts which had originated primarily from the sale of assets and which had not yet been used to finance capital expenditure.

            Repairs and Renewals Fund - £13,611,670

            This fund had been established under Section 56 of the Local Government Act (Northern Ireland) 1972 and had an approved limit of £22 million and was to fund the closure of the landfill site.

            Other Fund Balances and Reserves - £489,970

            This related to the Election Reserve which had been set up to smooth the cost of running Council elections.

            After discussion, it was

      Resolved – That the Committee approves the Council’s Financial Accounts and Report for the year ended 31st March, 2008.