The Chief Accountant presented the draft un-audited Statement of Accounts which had been produced in accordance with the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2014/15 and which had been signed off by the Director of Regeneration and Communities as the Officer responsible prior to being submitted for external audit.

In response to questions by Members, the Officers explained that:

·  There had been an increase in the pensions liability following the annual assessment of the fund by actuaries acting on behalf of Kent County Council.  There was currently a £70m deficit in the scheme against a liability of £158m.  The liability was not immediate and the deficit was currently being addressed through increased contributions to the fund over the working life of employees, as assessed by the scheme actuary.  Whilst the situation had worsened due to the assumptions used by the actuary, it was anticipated that improvements in future would come from changes made by the Government to the Pension Regulations, the back funding contributions being made and an upturn in the market.

·  Major movements in certain parts of the Balance Sheet over the year (Cash and Cash Equivalents, Long Term Investments, Long Term Liabilities and Net Assets) reflected changes in the Treasury Management Strategy, the increase in the pensions liability and fluctuations in the value of car parks.

·  In 2014/15, the amounts reported for resource allocation decisions were analysed across the Cabinet Member portfolios.  In 2015/16, the note would reflect the change to the Committee system of governance.  The purpose of the note, which had to be included in the accounts, was to demonstrate the difference between the Comprehensive Income and Expenditure Statement which showed the analysis of income and expenditure by service and what was reported to Members throughout the year as part of quarterly budget monitoring.

RESOLVED:  That the draft unaudited Statement of Accounts for 2014/15, attached as an Appendix to the report of the Chief Accountant, be noted.