Agenda item

To consider KPMG’s Governance Report and the audited Statement of Accounts for 2015-2016.

The Committee considered KPMG’s Governance Report and the audited Statement of Accounts for 2015-2016.

Mr Thompson, Director of Resources, summarised the key aspects of the Statement of Accounts and advised that there had been approximately a £500,000 overspend, but that figure should be considered alongside an overall budget of £128,687,000.

Upon questioning from Members, Mr Thompson explained that the main reason for the net service overspend was the overspend in Children’s Services, as a result of the high cost of Looked After Children due to both increased numbers and placement mix.

Mr Thompson provided the Committee with an overview of the statement of accounts and responded to Members’ questions, advising that the removal of concessionary fares for customers outside of Blackpool had saved a significant amount and that increased patronage should be considered a success. Responding to a question relating to the Local Authority Mortgage Scheme, Mr Thompson advised that nobody had defaulted on their loan.

Members questioned what the impact upon the accounts was in relation to priority one recommendations that had been made by internal audit, with particular reference to the Lightpool project. Mr Thompson advised that the initial risks around Lightpool had related to governance, but that reserves were continuously reviewed in light of audit reviews on projects since the findings could impact on funding.

The Committee noted the potential concerns regarding the financial implications relating to the Highfield Humanities College PFI scheme that had been made by Members when considering the 2014-2015 Statement of Accounts and queried the current position. Mr Thompson advised that the responsibility would go to the academy, but it had still needed to be accounted for in the 2015-2016 Statement of Accounts. Mrs Curtis explained that as the Academy was no longer a Local Education Authority school, there would be no contribution in next year’s accounts.

The Committee discussed the risk to the Pension fund in light of the current economic climate. Mr Thompson explained that whilst there was a risk, it was not a risk that would be attributable to the Council’s risk register.

Mr Rees, Partner, KPMG, presented the External Auditor’s Report to those Charged with Governance and commented that the financial reports had been of a high quality and thanked Council officers for their help and co-operation throughout the audit process.

Mr Leviston explained that the External Auditor’s report had summarised the key findings from two areas, namely the audit work in relation to the Council’s financial statements for 2015-2016 and its arrangements to secure economy, efficiency and effectiveness in its use of resources (Value for Money).

The Committee was advised that KPMG had issued an unqualified audit opinion on the Authority’s financial statements and that the Value for Money conclusion would be issued by 30 September 2016.

The Committee discussed value for money with regards to the costs of Children’s Services. Mr Rees considered that Children’s Services appeared to secure cost-efficient placements on a case by case basis when compared to other local authorities, the issue that faced the authority was the exceptionally high number of Looked After Children.  The Committee discussed the cost of placements for complex cases and it was considered that the high costs reflected the current market rates.

The Committee agreed to approve the audited Statement of Accounts for 2015-2016.

Background papers: None.