This report asks the Committee, in its capacity as sole member for Brighter Futures for Children Limited, to note the Company’s retrospective finances and performance – FY 2018/19 report.

The Director of Resources submitted a report asking the Committee, in its capacity as sole member for Brighter Futures for Children Limited (BFfC), to note BFfC’s retrospective finance and performance as set out in the company’s annual report for 2018/19.  The following documents were attached to the report:

·         Appendix 1 – BFfC Annual Report 2018-2019

·         Appendix 2 – Report to the Audit and Risk Committee, Period ended 31 March 2019

The report noted that delivery of the Council's Children's Services, including Education and Early Help, had been transferred to Brighter Futures for Children Limited, a newly-established, wholly-owned subsidiary company of the Council.  BFfC was run by a senior management team reporting to the Company board of directors, which in turn reported to the Council (Policy Committee) as its sole member/owner.

Under the agreed governance arrangements for BFfC, Policy Committee would receive an annual report from BFfC on performance and an annual report on the Company’s business plan.  Children’s Services (excluding Fostering) had been delivered by the Company from 1 December 2018, and the delivery of Fostering had commenced on 1March 2019.  The annual report submitted for review therefore covered only part of the 2018/19 financial year.  Policy Committee had approved the BFfC Business Plan for 2019-21 at its meeting on 8 April 2019 (Minute 89 refers), and BFfC were currently drafting their Business Plan for 2020/21 for submission to a future meeting.

The BFfC Annual Report 2018-2019, attached to the report at Appendix 1, showed that the Company’s position at the end of 2018/19 was a £167k deficit. The deficit was made up of provision for annual leave carryover of £104k, redundancy costs of £47k and loan interest payment of £16k.  The Company also noted in the report that, after making appropriate enquiries, the Board of Directors had a reasonable expectation that the Company had adequate resources to continue to deliver services for the foreseeable future, and therefore continued to adopt the going concern basis in preparing the financial statements.  Independent Auditor UHY had signed off the accounts and submitted their report to the Company’s Audit and Risk Committee, as attached at Appendix 2 to the report.

Resolved –

          That the BFfC retrospective finance and performance report for 2018/19 be noted.