Local authority’s worth rises
Argyll and Bute Council was worth over £22 million more at the end of the financial year than it was 12 months previously, a report has revealed.
The local authority’s net worth is now £347.7m as of March 31 2021 compared with £325.4m on the same date 12 months earlier.
The increase is mainly attributed to more cash, and cash equivalents, through significant Covid funding awarded before the end of March 2020 for use over the next two years.
The information featured in a covering report for the council’s unaudited accounts, which went before all members at a virtual meeting on Thursday June 24.
Councillors were also asked to approve the cancellation of a rent deposit debt totalling nearly £123,000, as it was felt that this would have no impact on the council’s general fund.
Executive director Kirsty Flanagan said: ‘The unaudited annual accounts have been prepared in accordance with professional and statutory requirements.
‘The general fund balance has increased by £30.964m, after taking into consideration the movement during the year, the end-of-year outturn position and the new earmarkings.
‘The net worth per the balance sheet has increased by £22.288m to £347.759m. Overall the financial position of the council remains stable.’
On the proposal to cancel the debt, Ms Flanagan added that the council operated a rent deposit scheme as a measure to improve access to housing which ran from 2003/04 to 2009/10.
Remaining balances within this scheme number more than 400, with all individual balances being under £1,000. The newest loans date from 2009/10.
The last repayment transactions recorded in this scheme were in 2014/15 and the total balance of these outstanding debts is £122,844.
In recognition of the low probability of recovery of these debts a bad debt provision was created in 2012/13 covering the full amount of the outstanding debt.
It was recommended the council agreed to write off the outstanding rent deposit debt balances totalling £122,844.
‘These debts have already been provided by way of a bad debt provision and therefore there will be no impact on the council’s general fund,’ said Ms Flanagan.