Issue - meetings

[To receive an update on the assessment of going concern status.]

Alison Shannon, Chief Accountant, presented the Assessment of the Going Concern Status. The Committee were advised that the Council is required to compile its statement of accounts in accordance with the CIPFA Code of Practice on Local Authority Accounting.  In accordance with this code, the Council’s Statement of Accounts is prepared assuming it will continue to operate in the foreseeable future. 

The Committee were advised that the main factors identified within the assessment of going concern status consisted of;

Current financial position;

Projected financial position;

Governance arrangements;

Control environment in which the Council operates.

The Council’s Going Concern Assessment showed in Appendix 1 outlined the Council’s current financial position, which was a positive outturn position for 2020-2021 with a net contribution to the general fund of £651,000, as presented to Cabinet on 16 June 2021. The Committee were advised that the Council were able to set a balanced budget for 2021-2022 without the need to use general fund reserves but is faced with a projected budget deficit of £25.4 million from 2022-2023 rising to £29.5 million from 2023-2024. 

Claire Nye, the Director of Finance reported that for the period reported, the Council is confident that it remained a going concern but requires a longer- term funding strategy from Government in order to develop a longer-term sustainable plan.

The Chair commended the audit team on the positive work done during the pandemic to support the public and businesses.

It was agreed that Director of Finance, would provide Councillor Andrew McNeil with further details regarding the increase on the general fund and reserves.

Resolved:

1. That the Assessment of Going Concern Status be noted.

That it be agreed that Director of Finance, would provide Councillor Andrew McNeil with further details regarding the increase of the general funds and would provide more detail.