The Treasurer presented the Abstract of Accounts 2019/20, drawing Members attention to significant negotiations with idverde during the year relating to income and confirmation had been received that income would be received in accordance with the original agreement, therefore there had been a large adjustment for income due in 2018/19 and 2019/20.  In addition there were a number of projects due to be undertaken during the year, specifically around bearer beams and the safety of memorials.  There were delays to start the programme due to testing of memorials to be undertaken and an update was included in the Contractor report in the following item.  The programme of works was due to go ahead when the Pandemic hit and therefore the work due to be undertaken during March had to be delayed and this also resulted in a substantial underspend.

The Treasurer advised that a number of funds and balances had been cleared down and with the additional income, the common fund was just over £1m and therefore it was proposed that approximately £600k of that be invested to generate some more income for the Board going forward.  The pension fund was now in a positive position and there would be no secondary charge, so the revenue estimate had been adjusted accordingly.

The Accounts had already been signed off by the Council’s internal auditors and once approved would be sent to the external auditors for review and sign off.  The Treasurer drew Members attention to the impact of Covid-19 on the income levels and internment levels.

In response to Members’ questions, the Treasurer advised:

• Officers were monitoring the impact of reduced internments on income closely and these were detailed in the Contractor report at the following item.  Interments were significantly higher in April but had started to come down again in May and it was anticipated that these would be below normal levels for some time.  Financial information would be requested from idverde after the summer and analysis would be carried out to identify any trends and this information would be circulated to Members.
• Officers were not anticipating a big difference in internments over the course of the whole financial year and the risk register reflected that they would return to normal levels.  Officers had been very prudent in their forecasts, however there were healthy reserves to cushion fluctuations and the situation would be monitored closely.
• The recommendation could be amended to progress early repayment of the original loan to Merton and Sutton, rather than invest £600k.
• As bearer beams deteriorated with age, they were being replaced with better quality beams.
• The triannual actuarial evaluation of the pension fund confirmed a positive position for the fund requiring no secondary contribution.
• There was a specialist investment officer in the Council whose advice would be sought in the event that the Board was minded to approve in investment of funds.
• The next meeting was due to take place in February 2021, at which point officers would have a clearer view of the impact of the Pandemic on the finances.

The following question was asked, which would be forwarded to the Client Side Manager for a response:

• The budget had been increased to account for what was not spent last year on the replacement of the bearer beams.  Would this money replace all the bearer beams, or are there others left to replace in subsequent years?

Members asked if there was a way of expressing pandemic deaths in the risk register in a more sensitive way.  It was acknowledged that there was a need to assess and report risk in a factual way, some felt that it should also be mindful of the language used in a public document.  The Chair asked that the comments be reflected in the minutes as it was not possible to amend the wording of the risk register in a satisfactory way.

RESOLVED

1. To receive and approve the Draft Abstract of Accounts for 2019-20
2. To approve the Annual Audit Return for 2019-20 (Appendix E)
3. To approve the revised revenue estimates for 2020/21 in Appendix H
4. Review and Agree the Risk Register as at June 2020 in Appendix I
5. That officers progress the early loan repayment of up to £600k to Merton and Sutton Councils