Agenda item

Finance Update July 2021

Minutes:

Members received a report which provided an update on financial and corporate matters.

 

Maria Grindley, Associate Partner, and Larisa Midoni, of Ernst & Young LLP, introduced the Authority’s Draft Audit results report, set out the context for meeting the new deadline for the publication of the final audited accounts of 30 September 2021 and acknowledged the considerable work involved in the preparation of the accounts and report. She drew Members’ attention to the Executive Summary, highlighted that the Pension Fund liability was an outstanding issue and outlined areas of audit focus.  

 

In response to a Member’s question as to how food waste expenditure had been adjusted in the accounts, Jay Patel, Finance Director explained that this was a presentational issue and that the bottom line was not affected. He went on to outline the remainder of the report, advising that there had been a reduction in waste flows, a large underspend on both waste transport and disposal costs and that all key performance indicators were on target (green). In terms of Treasury Management, the Finance Director reported a correction in that £68,000 investment income was returned. He also highlighted the Authority’s low risk approach to treasury management.

 

The Finance Director reported that the recruitment exercise for an Independent Member of the Audit Committee had been successful with a strong field of applicants. Following interviews by the Chair of the Audit Committee and Treasurer, it was recommended that Robin Pritchard be appointed to this role. In response to a Member’s question, the Finance Director indicated that the offer of remuneration for this role had elicited a greater number of applications.

 

A Member raised queries in relation to the key performance indicators (KPI) and questioned whether they were stretch targets and whether benchmarking with other similar organisations was undertaken. The Finance Director advised that, in terms of KPI 4, population growth was lower than growth in cost which had resulted in the indicator moving in the opposite direction.  In response to a question on the People Development KPI, this was part year and the Authority had invested time and resources into the staff team and had changed the metrics. The management team were of the view that staff were progressing well. He confirmed that benchmarking exercises were carried out, particularly in terms of financial accounts figures, but that the West London Treasurers were keen for there to be more detailed reporting.

 

In response to a question on reserves, the Finance Director explained that in terms of high-level budget setting, these were set at the start of the year to enable the Authority to manage risk. This year, due to the level of activity, a buffer had been built up as a result of underspend which would enable the Authority to deal with issues of growth. There would be a slightly lower Pay As You Throw (PAYT) levy for the constituent authorities.

 

RESOLVED: That (1) the current financial position and forecast for 2021/22 be noted;

(2) the 2021/22 Key Performance Indicator performance be noted;

(3) the financial decisions taken under the Scheme of Delegation be noted;

(4) Robin Pritchard be appointed as the new Independent Member of the Audit Committee;

(5) the Treasury Management Outturn for 2020/21 and update for 2021/22 be noted;

(6) the 2021/22 Statement of Accounts be approved.

 

 

 

 

 

 

Supporting documents: