Issue - meetings

Committee considered a report in relation to an assessment of the Council as a going concern for the purposes of producing the Statement of Accounts for 2020/21.

Given the significant reduction in funding for local government in recent years and the potential threat this posed to the ongoing viability of councils as a consequence, external auditors continued to place a greater emphasis on local authorities undertaking an assessment of the going concern basis on which they prepared their financial statements.

The concept of a going concern assumed that an authority’s functions and services would continue in operational existence for the foreseeable future.  The provisions in the Chartered Institute of Public Finance and Accountancy (CIPFA) Code in respect of going concern reporting requirements reflected the economic and statutory environment in which local authorities operated.  These provisions confirmed that as authorities cannot be created or dissolved without statutory prescription, they must prepare their financial statements on a going concern basis of accounting.

The report set out the position for Bolsover District Council and provided justification for the 2020/21 financial statements being prepared on a going concern basis. 

Moved by Councillor Chris Kane and seconded by Councillor Graham Parkin

RESOLVED that the outcome of the assessment of the Council’s going concern status for the purposes of preparing the Statement of Accounts for 2020/21 be accepted.