Agenda item

The Annual Statement of Accounts showed the financial position of the Crematorium Joint Committee as at 31 March 2018 and the revenue and capital activity during the financial year.

It was reported that Assurance Lincolnshire had reviewed the accounts and had issued a Certificate which stated that the Statement of Accounts presented fairly the Crematorium’s Comprehensive Income and Expenditure Account and Balance Sheet and that the Statements were fully supported with the underlying financial records. 

Also included in the report to Members was the Annual Governance Statement which included the future actions required on internal control issues.  . 

With regard to the Accounts these included an explanation of the Financial Statements; the Annual Report and a summary of the financial performance; the Accounting Policies which had been applied in preparing the accounts; the Core Financial Statements; and Supplementary Financial Statements and notes to support the Accounts. 

The Treasurer advised that the Accounts were becoming increasingly complicated and that additional more detailed checks would be required.  He added that discussions were to be held between the constituent authorities in this regard.

The Treasurer stated that the general financial position of the Crematorium was sound at present, however, there were two factors that Members needed to be mindful of:

1.       Competition from other facilities outside of the area and the potential effect this could have on income; and

2.       The need to invest in the cremators to ensure they were kept in a good condition and were sustainable for the future.

Table 1 provided details of the financial performance for 2017/2018 with subsequent paragraphs providing the narrative for the figures shown.  Table 3 showed the surplus distribution to each of the partner authorities. 

It was noted that the general reserves were in a good position. 

A Member expressed his concern about the number of entries in the accounts that had been over-budgeted and queried whether the reserves needed to be maintained at such a high level.  He also queried how long the equipment would last from when it was purchased.  In response, the Treasurer advised that a quarterly  report was produced and this enabled Members to satisfy themselves that the financial management of the Committee was subject to appropriate checks and balances.  He added that the planned works programme would list future commitments and therefore potentially allow the release of some of the reserves. 

In relation to the purchase of abatement equipment it was noted that this would be in the region of £750,000.  A Member noted that a great deal of work had been undertaken in choosing the previous equipment but that it had lasted only for a period of 8 years.  The Director and Registrar stated that the average life expectancy of new equipment was approximately 20 years.  However, if the equipment was properly maintained and repaired as required then it could potentially last for much longer.

AGREED      (unanimously) that:

(i)      the Statement of Accounts as presented in Appendix A for the financial year 2017/2018 be approved;

(ii)     approval be given to the 2017/2018 budgeted surplus distribution as detailed in Appendix A, page 9, 3.6;

(iii)    revenue budgets for equipment acquisitions £22,000 and books/publications £6,000 to be carried forward into 2018/2019 be approved;

(iv)    the financial information provided in Appendix D and usage information provided in Appendix E, be noted;

(v)     the savings and refunds for National Domestic Rates totalling £126,189 transferred to the Capital Fund, as approved at the JCC meeting held on 15 December 2017, be noted;

(vi)    capital retention costs of £5,135 relating to the car park infrastructure works which are due for payment during 2018/2019, be noted;

(vii)   the surplus in excess of the budgeted surplus for 2017/2018 totalling £122,471 transferred to the General Reserve as approved at the JCC meeting held on 15 December 2017, be noted; and

(viii)  the revenue expenditure for the increased pension budget, catafalque works and external painting totalling £38,070 previously approved to be financed from general reserves, be noted.