Agenda item

            The Committee was advised that the Local Government (Accounts and Audit) Regulations (Northern Ireland) 2006 required the Council to approve by resolution the Statement of Accounts as soon as reasonably practicable 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, 2009.  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, 2009 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 £3,274,966.  This had reduced the credit balance on the District Fund reserves to £3,069,851, which was approximately 1.7% of annual gross expenditure, or 2.1% 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% of annual gross expenditure.  Currently, the Chartered Institute of Public Finance and Accountancy 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 - £3,069,851

These could be used to supplement income and unexpected expenditure in future years

City Investment Fund - £4,385,110

The City Investment Fund had been created to give a clear demonstration of the Council’s wish to contribute to the vibrancy, prosperity, culture and attractiveness of the City.  The Committee, at its meeting on 14th December, 2007, had agreed that the cash flow requirements necessary to establish the Fund and had indicated that in the 2008/09 financial year £1 million was to be allocated from reserves and income received from the sale of land to the Department for Regional Development in relation to the M1 upgrade, which amounted to £1,428,885.  In addition, £118,775 had been drawn down from the reserve during the year in relation to the Connswater Greenway and Titanic Project.

Capital Receipts Reserve - £860,000

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 - £14,617,208

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

Other Fund Balances and Reserves - £515,778

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

Rates Claw-Back Reserve - £(191,279)

This related to the Minister for Finance’s decision to allow Local Authorities to defer the impact of the revaluation of Ministry of Defence properties over a four-year period, thereby smoothing the impact on the District Fund Reserves.

            After discussion, it was

            Resolved – That the Committee approves the Council’s Financial Accounts and Report for the year ended 31st March, 2009.