To consider the report.

The Panel considered the  report that  presented the RBWM’s Statement of Accounts that had been audited by KPMG.  The report recommended that the Chair of the Audit and Performance Review Panel approved the accounts by signing them before the 30^th September 2016.

It was mentioned that page 9 of the agenda pack provided a summary of financial data and that it was interesting to note that Council Tax (Collection Fund) made up 26.7% of the authorities income and that Adult Social Care, Children’s / Education and Housing Services total 76% of the expenditure. 

Page 10 of the report provide an analysis of the Council Tax and the Chairman said this gave an interesting insight in our housing stoke as bands A to C only equated to under 1/5^th of stock whilst over 1/3^rd were in bands F,G and H.

Under Net Cost of Services the Chairman asked for clarification on Pay Reward as the original budget showed £605k yet the variance showed £112k.  The Panel were informed that the approved estimate was reduced in year to £500k and this was transferred to the services as part of the Pay Reward Scheme, this left the £112k as an underspend.  It was agreed that a note to this effect would be added to the accounts.

The Chairman also asked for clarification on usable and unusable reserves.  The Panel were informed that the useable funds went to the General Fund ad back out again whilst unusable funds were restricted to specific areas of spend.

The Chairman noted that the level of reserves were lower than previous years and questioned the tolerance levels in place; he mentioned that the administration may be willing to take greater risk on the level of reserves and that being spent via the development and general funds but it was the duty of this Panel to take a more prudent approach when questioning the accounts.

The Chairman asked for a note of caution be added to the minutes that the Development Fund should not be at a level that hinders our reserves ability to cover risks. 

Cllr Rankin mentioned that it was right to mention a note of caution but reassured that Cabinet did have a low risk view on the reserves.

Cllr Jones asked if redundancy payments were shown in directorate budget lines and was informed that they were and provision was made for future redundancy payments.

Cllr Smith recommended that the charts on pages 9 and 10 of the report would have benefited from five years of comparative data and recommended that this be added to future reports; the Panel approved this recommendation.

Cllr Smith felt that the note for special expenses on page 13 could be more user friendly and it was agreed that he would send alternative wording to the Chief Accountant.  Cllr Rankin mentioned that the pie chart on page 10 Sources of Capital Finance would also benefit from explanation notes being added.  The Chairman also recommended that the explanation for the Minimum Revenue Provision on the same page should also be put in plain English.

Resolved unanimously: that the Audit and Performance Review Panel approves the audited accounts, a copy of which is to be signed by the Chairman before the 30th September 2015.