Agenda item

This report presents the 2009/10 statement of

accounts. It is a requirement of the Account and

Audit Regulations 2003 that the accounts are

approved by a committee of the Council, prior to

audit.

Jim Mearns, Deputy Director of Finance, introduced the report, which set out the draft 2009/10 accounts for the London Borough of Hammersmith and Fulham, including the Pension Fund accounts. He said that, following the training session held with the Committee, a breakdown of Housing Revenue Account (HRA) debt had been prepared; it also showed the percentage of that debt that was owed to the Decent Homes programme.

Eugenie White asked what the implication for the treatment of debt of the sale of assets. Jim Mearns said that the Council waited for receipt of cash before showing this on the accounts.

Councillor Murphy drew attention to the explanation of the underspend in Community Services and the overspend Housing and Regeneration. Noting that these were attributed to underspent client budgets and staff vacancies, and to redundancies and dilapidations, respectively, he asked for a breakdown between the two elements.

The Chairman noted the management fee payable by the Council to H & F Homes, and, given its size, asked for a further breakdown of the fee payable.

Councillor Iggulden asked why the interest payable by the Council was increasing. Officers explained that this was a consequence of the Decent Homes debt as shown in the HRA. He asked that the debt figures be further broken down to show the debt payable directly by the Council on its non-HRA borrowings.

Councillor Iggulden asked how the figures on valuation of assets were arrived at. Jim Mearns said that a valuation was made on the 1^st April of each financial year, with the valuer updating these figures at year end; he said that the fluctuation of asset values between years accounted for the losses and gains shown. With regard to the interest cost shown on page 17, Jill Lecznar, Corporate Accountancy Manager, said that this reflected the cost of the expected increase in the present value of liabilities. Councillor Iggulden also requested an update on the status of the Council’s PFI projects, clarifying which were in use.

Councillor Murphy asked what the figures under Other Operating Income- Asset Disposal Receipts related to. Jill Lecznar said that these related to the sale of assets which were not on the Council’s register of assets. Councillor Murphy asked for a breakdown of the Sale of fixed assets as shown on page 34 of the accounts.

Councillor Murphy asked about the bonuses awarded to the Council’s senior officers as set out on page 55 of the accounts; he asked who set the bonuses and on what scale were they based. Jane West clarified that they were divided between a percentage allocated to each target set, and a discretionary element. The bonuses were moderated through the Financial Strategy Group and agreed by the Chief Executive and Leader as appropriate. With regard to the Assistant Director of Legal and Democratic Services, it was clarified that his salary had increased as a result of gaining responsibility for legal services at Kensington and Chelsea. Having noted that the Head Teacher of Phoenix High School now appeared as a Senior employee, the Committee requested that the information on page 57 be broken down to show non-teaching staff by department.

With regard to the sum set aside for improvements to Bishops Park on page 68, it was clarified that this included Heritage Lottery Fund funding, with some of the Council’s match funding coming in services in king.  With regard to the sum repuable form the sale od Discounted Market Units at Imperial Wharf, it was confirmed that the Council could refuse to sell its share in properties, but that it was unlikely to be asked, and unlikely to do so.

With regard to the earmarked reserve for single status claims, Jane West said that the Council had believed it had resolved that it had resolved all claims, only to receive a further 39 9 months ago. She believed that issues and claims would continue to arise, even as historical issues were settled.

Councillor Murphy asked about the elements of the Annual Governance Statement (AGS) relating to yearly appraisal by the Leader of senior officers and Cabinet Members, and how the process was evidenced. Councillor Botterill and Jane West confirmed that meetings took place, and that the Leader would document their outcomes. Councillor Iggulden noted that the Leader was a signatory to the statement, meaning that assurance had been given. Councillor Murphy expressed concern about the audit trail, given that this appeared in the Council’s AGS, the Chairman suggested that the issue should be checked with the Leader.

RESOLVED THAT

(i) The report be noted, and;

(ii) The Statement Of Accounts for 2009/10 be approved.