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RESOLVED:

1.    
Approved West Northamptonshire Council’s proportion of
the former County Council’s balance sheet (as set out in
Appendix A).

2.    
Delegated responsibility to the S.151 Officer to finalise and
complete a binding disaggregation agreement of Northamptonshire
County Council’s balance sheet between the councils to
reflect the agreed position. Including the ability to make
reasonable adjustments to the disaggregated balances, in agreement
with  North Northamptonshire Council, where
errors or omissions come to light that may need
correcting.
 
REASONS RESOLVED:
On 31st March 2021
Northamptonshire County Council (NCC) and the District and Borough
Councils in Northamptonshire ceased and were replaced on the
1st April 2021 with two new Unitary Councils West
Northamptonshire Council (WNC) and North Northamptonshire Council
(NNC).
 
Whilst the District &
Borough Councils’ balance sheets have been aggregated
Northamptonshire County Council’s balance sheet needed to be
split or disaggregated between WNC and NNC. The high-level
principles for splitting the balance sheet were agreed by both
shadow authorities prior to vesting day.
 
Whilst most balances on the
NCC balance sheet were able to be disaggregated based on the agreed
principles there were several balances which were technically more
difficult to allocate. These were largely related to entries around
accounting for assets, borrowing and the subsequent cash
split.
 
The split involved analysing
large volumes of data, covering several years, that in some
instances was incomplete and not easily identifiable to an asset.
The assets had already been split, based on geography. We have now
agreed how to allocate what previously was the unallocated balances
where incomplete information was available.
 
Work between the West and
North has now concluded, and the final balance sheet disaggregation
supports the following: -

·        
The final cash figure for the demised Northamptonshire County
Council being split broadly equally between the two
authorities.

·        
Application of the broad principles that were agreed prior to
vesting day

·        
A fair and reasonable split for both authorities

·        
An agreement that allows both authorities to begin finalising
their accounts.
 
ALTERNATIVE
OPTIONS:
It could be agreed not to
split the closing balances of Northamptonshire County Council. This
would:

·        
Prevent us from being able to prepare accounts for WNC and
NNC.

·        
Prevent us from being able to confirm reserves, balances and
other assets and liabilities of the two new authorities.

·        
Lead to formal arbitration which would be time consuming and
costly.
For these reasons this option
was rejected.