The report of the Deputy Chief Executive and City Treasurer is attached.

The Committee considered the report of the Deputy Chief Executive and City Treasurer that provided information on the process of approval for the annual accounts.

The report provided a narrative on the background to the annual accounts; the structure and presentation of the annual accounts; key issues and summary. The report further described the timeline for the completion and audit of the 2021/22 annual accounts.

The report was accompanied by a presentation that summarised the key elements of the Draft Statement of Accounts.

In response to a question from the Chair the Deputy City Treasurer stated that an overview of the Council’s budget was provided as part of all new Member’s induction. He further commented that in addition to this Members could contact him for any additional advice or information at any time.

Following the explanation provided regarding the rationale for the national reporting of a valuation of the highways infrastructure, Members noted that this was an intensive process and resulted in delays in the finalisation of the annual accounts. Members recommended that The Chartered Institute of Public Finance and Accountancy should make representation to the Government for a change to the legislation in relation to this requirement.  This recommendation was supported by the Executive Member for Finance and Resources.

In response to a question relating to the Housing Revenue Account and Private Finance Initiative (PFI) payments, the Deputy City Treasurer stated that this underspend was ringfenced and was primarily due to delays in the delivery of planned improvement works as a result of the pandemic. He stated that as Northwards Housing had been brought back in house a programme of repair works was being developed, with appropriate consideration being given to fire safety works, retrofitting and ensuring that homes were of a decent standard so as to contribute to the city’s carbon emissions reduction ambitions. He further commented that finance modelling was ongoing to understand and plan for budgetary pressures and changes as a result of inflationary pressures.

The Deputy City Treasurer responded to a question regarding income generation by advising that a review of this activity in relation to both car parking and markets was ongoing. He further commented that a number of car parks had been identified for economic redevelopment in the context of wider Council strategies such as active travel and clean air.

The Deputy Chief Executive and City Treasurer supported the assurance in relation to the approach and arrangements established to the short-term lending to other Local Authorities given by the Deputy City Treasurer, adding that this was a prudent approach that provided value for money.

The Deputy Chief Executive and City Treasurer responded to a question raised in relation to sickness levels. She advised that comparative data could be provided following the meeting, noting that during the pandemic it is understood that sickness levels were under reported and staff continued to work from home when ill. She advised that sickness levels continued to be monitored across all Directorates and there were robust attendance management arrangements established.

In response to a question regarding reserves, the Deputy Chief Executive and City Treasurer advised that reserves were cash backed and the balance could be used internally to avoid the need for borrowing, on the understanding that the reserves were to be repaid. She stated that the use of reserves was statutory governed. The Committee were further informed that the options proposed for the use of reserves would form part of the Council’s budget setting proposals that would be presented to Members for consideration.

Decision

The Committee note the unaudited 2021/22 Annual Accounts including the narrative report, signed by the Deputy Chief Executive and City Treasurer.

The Committee recommend that the Chartered Institute of Public Finance and Accountancy make representation to the Government for a change to the legislation in relation to the requirement to report the valuation of the highways infrastructure.