Agenda item

Report by the Director of Finance, Performance and Procurement.

The Committee is asked to approve the Statement of Accounts for 2017/18 for West Sussex County Council and the West Sussex Pension Fund, for signing by the Chairman of the Committee.

5.1     The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

5.2     Mrs Chuter (Financial Reporting Manager) introduced the report and explained that the same process had been used for the West Sussex County Council statements and the West Sussex Pension Fund statements.  Officers had adopted a staggered approach, with 2013/14 being the baseline when the accounts were signed on 30 June, in order to meet the new deadline for audit.  EY had been on site for 5 weeks performing their audit.

5.3     The Committee made comments including those that follow.

·         Queried the level of reserves and if these should be utilised to assist with meeting the budget demands.  – Ms Eberhart explained that the policy when setting the budget was to not rely on reserves for budget pressures.  There were planned uses for the reserves.  An aspirational aim is to increase reserves where possible.

·         Requested clarity on the work of PwC for the Transformation Programme.  – Ms Eberhart explained that PwC were supporting in two main areas.  They had assisted EY with the look at commissioning services for adults and children.  PwC had helped improve controls in this area and with the procurement and contract management redesign.  Secondly, PwC were helping with organisational design and making better use of technology.

·         Questioned the reduction in net cash over two years and if this was an issue.  – Mr Mathers explained that this was not a deliberate strategy and that the figure referred to particularly liquid cash.  Mrs Chuter added that this was not a particular issue and that it was better for the council to consider longer term investments where cash flow allowed.

·         Queried the lack of financial resilience listed as a key strategic risk.  – Ms Eberhart confirmed that this was a key risk for consideration.

·         Questioned the increase in Capital Programme financing from £1m in 2018/19 to £81m in 2022/23 and the importance of realising receipts; and asked if sensitivity analysis were considered.  – Ms Eberhart explained that the figures included assumptions on capital receipts for property schemes.  Sensitivity analysis was used to monitor risk.  PFSC has picked up this issue when looking at specific projects.  Mr Hunt noted the concerns and proposed additional dialogue could be included within the Capital Programme.

·         Questioned what would happen if receipt assumptions were not realised within the capital programme.  – Mr Hunt reported that this would be discussed if it occurred.

5.4     Mrs Chuter highlighted that within the Pension Fund statements the Partners Group actual valuation was £2.2m higher than the statement estimate. 

5.5     The Committee asked if the risk schedule for the Pension Fund included consideration for the change in policy for the investment strategy.  – Ms Eberhart explained that this would be included in next year’s report as the policy was not implemented yet.

5.6     Resolved – That the Committee approve the Statement of Accounts for 2017/18 for West Sussex County Council and the West Sussex Pension Fund for signing by the Chairman of the Committee.