Issue - meetings

This report presents Grant Thornton’s 2021/22 Annual Report to members.

The report presented Grant Thornton’s 2021/22 Annual Report to members.

The following matters were considered:

a)            Interest Rates. A Member of the Committee asked for clarity on the borrowing position of the Council, with long-term borrowing of £64 million and interest of £1.6 million, how much has that been affected by the recent hike of interest rates and is that sustainable, bearing in mind high interest rates, or is that on a long-term fixed interest rate. The Head of Finance informed the Committee that the Council has £64 million long term borrowing, that was incurred to finance the acquisition of investment properties a number of years ago, so that borrowing is supported by equivalent assets. The Head of Finance noted at the time of undertaking the borrowing, interest rates were around historic lows, and the borrowing was fixed for the long-term, with one £5 million loan fixed for 10 years and the rest for 50 years, ending in the mid-2060s.  The Head of Finance informed Committee that the £5 million maturing in 2027 is not currently expected to need to be refinanced, as the Council sets aside a sum each year to repay loans when they fall due. The remaining £59 million is fixed at interest rates broadly around the 2.5% mark until the mid-2060s.

Following consideration, the Committee;

Resolved (5 for, 1 abstained, and the Chair not voting) to:

(1)      Receive the Auditor’s Annual Report;

(2)      Note the management responses to the auditor’s recommendations at Appendix 1.

(3)      Note the delay to the start of 2022/23’s external audit, as explained at Appendix 2.